Kunal Dhamesha: Sure. And but any capacity that you want to put out, some of the other global players have put out that they can manufacture their 32,000 liter capacity, to manufacture GLP-1.
Erez Israeli: I’ll say, that we invested a lot, capacity, both in the API as well as in the finished product. I will not return out the numbers of the process.
Kunal Dhamesha: Sure. Thank you and all the best.
Operator: Thank you. The next follow-up question is from the line of Neha Manpuria from Bank of America. Please go ahead.
Neha Manpuria: Yes, thanks again for taking my question. Just to confirm out of the 26 products that you mentioned in the US pipeline, which are meaningful, none of these would be from Bachupally. Would that be a fair assumption?
Erez Israeli: None of these, sorry?
Neha Manpuria: Are from Bachupally, FTO 3?
Erez Israeli: In FTO 3, I think we do have two products that are part of that. And so in the case that we will have an issue, we will have to move it to another site if it will come into that situation.
Neha Manpuria: Okay. From a pipeline dependence, upcoming launches, how important would FTO 3 be? Or do you just want to understand the risk in case of an adverse outcome?
Erez Israeli: No significance. Most of the products are all sold with most of them commercial. So, no significance. Obviously, we don’t want it. It’s not nice to reputation, etcetra. But it’s not significant. Most of the growth we have to buy, but not so much.
Neha Manpuria: Got it. And Parag, on the moderation in the, growth margins that we have seen in the generics business. How much of that would be, I mean, the quarter-on-quarter moderation, would all of that be because of pricing pressure? Or is there any other big factor there? I think FX would be the other one, I’m assuming.
Parag Agarwal: More of a mixed issue, Neha. I mean, pricing is obviously there, but it’s very stable. So, pricing doesn’t stand out. But it’s just that, the offset from new product launches, from the product mix has been a bit lower. That’s all. So, it’s not that the price erosion is higher. Price erosion still remains at the same level. If the upside from the other things that we see in terms of productivity, in terms of product mix, there is some timing issue, I would say there, so, overall, well within the normal range.
Neha Manpuria: So, I shouldn’t assume that the incremental business that we’ve seen in the US, et cetera., is a lower margin business and hence that’s reflective in my gross margin?
Parag Agarwal: No, that’s not right. Yes, you should not assume that.
Neha Manpuria: Okay, thank you so much. Thank you.
Operator: Thank you Ladies and gentlemen, that was our last question for today. As there are no further questions, I would now like to hand the conference over to Mr. Richa Periwal for closing comments.
Richa Periwal: Thank you all for joining us for today’s evening call. In case of any further query, please get in touch with the investor relations team. Thank you once again on behalf of Dr Reddy’s Laboratories Ltd. That concludes this conference. You may now disconnect your lines. Thank you.
