Q1 2027 Marico Ltd Earnings Call

Speaker #1: Ladies and gentlemen, you are connected for the Marico Limited Conference Call. Please stay connected. The conference will begin in another two minutes. Participants, you are connected for the Marico Limited Conference Call.

Speaker #1: Please stay connected. The conference will begin in another two minutes. Thank you. Ladies and gentlemen, good day and welcome to the Marico Limited's Q1, FY27 earnings conference call.

Speaker #1: We have with us the senior management of Marico, represented by Mr. Saugata Gupta MD and CEO, and Mr. Pavan Agarwal, Group CFO and CEO, International Business.

Speaker #1: As a reminder, all participant clients will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes.

Speaker #1: Should you need assistance during the conference call, please signal an operator by pressing star, then zero, on your touch-tone phone. Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts.

Operator 3: Should you need assistance during the conference call, please signal an operator by pressing star and then zero on your touch-tone phone. Before we get started, I would like to remind you that the Q&A session is only for institutional investors and analysts, and therefore, if there is anybody else who is not an institutional investor or analyst but would like to ask questions, please directly reach out to Marico's investor relations team. I now hand the conference over to Mr. Saugata Gupta. Thank you, and over to you.

Speaker #1: And therefore, if there is anybody else who is not an institutional investor or analyst, but would like to ask questions, please directly reach out to Marico's Investor Relations team.

Speaker #1: I now have the conference over to Mr. Saugata Gupta. Thank you, and over to you.

Speaker #2: Yeah, hi, good evening, everyone, and thanks for joining the call. I'll start with a perspective on the operating environment during the Q1. After which, I'll cover our performance, strategic priorities, and our outlook going forward.

Saugata Gupta: Hi, good evening, everyone, and thanks for joining the call. I'll start with a perspective on the operating environment during the quarter gone by, after which I'll cover our performance, strategic priorities, and our outlook going forward. During the quarter, macro environment globally remained volatile with supply chain disruptions and increasing energy costs impacting economic activity. Despite these global headwinds, India continued to demonstrate resilience backed by strong underlying fundamentals. Domestic demand remained healthy and economic activity continued to expand. While there was a rise in consumer inflation led by food and a marginal fuel price hike, it remained within RBI's threshold. On the other hand, some of the international economies where we are operating have experienced some transient headwinds due to ongoing geopolitical development in the form of inflation and other costs. Moving on to our performance.

Speaker #2: During the Q1, macro environment globally remained volatile with supply chain disruptions and increasing energy costs, impacting economic activity, despite these global headwinds. India continued to demonstrate resilience backed by strong underlying fundamentals.

Speaker #2: Domestic demand remained healthy and economic activity continued to expand, while there was a rise in consumer inflation led by food and a marginal 12 price hike.

Speaker #2: It remained within RBI's threshold. On the other hand, some of the international economies where we are operating have experienced some transient headwinds due to ongoing geopolitical developments in the form of inflation, and other costs.

Speaker #2: Moving on to our performance, we have started the year on a very strong note with a consolidated revenue growth at 23%, an EBITDA and PAC growth of 25%, making our highest profit growth in the last 28 quarters.

Saugata Gupta: We have started the year on a very strong note with a consolidated revenue growth at 23% and EBITDA and PAT growth of 25%, making our highest profit growth in the last 28 quarters. The India business delivered one of the strongest quarters in recent years with 11% volume growth, a revenue growth of 21% led by robust momentum in core business and continued scale-up of new growth engines. Over 96% of the business continued to gain or sustain market share, and over 99% of the business continued to gain or sustain value creation on a MAT basis. The strong brand performance was well complemented by sharp execution across channels. Both general trade and modern trade recorded double-digit growth. The success of Project Setu continued to strengthen our general trade execution, driving wider reach, superior assortment quality, improved service levels, and therefore improved ROI for our distribution partners.

Speaker #2: The India business delivered one of the strongest quarters in recent years with 11% volume growth and revenue growth of 21%, led by robust momentum in core business and continued scale-up of new growth engines.

Speaker #2: Over 96% of the business continued to gain or sustain market share. And over 99% of the business continued to gain or sustain registration on a MAD basis.

Speaker #2: The strong brand performance was well complemented by sharp execution across channels. Both general trade and modern trade recorded double-digit growth. The success of Project Setu continued to strengthen our general trade execution, driving wider reach, superior assortment quality, improved service levels, and, therefore, improved ROI for our distribution partners.

Speaker #2: Quick commerce continued its accelerated scale-up, reporting more than 50% growth for our core business. It now contributes to around 5% of India business revenues, excluding digital brands, and all digital channels put together account to over 20% of India business revenues.

Saugata Gupta: Quick commerce continued its accelerated scale-up, reporting more than 50% growth for our core business. It now contributes to around 5% of India business revenues, excluding digital brands, and all digital channels put together account to over 20% of India business revenues. International business reported 15% constant currency growth, led by outperformance in Vietnam and MENA. Talking about the bottom line performance, gross margin expanded 30 basis points year on year, led by softer copra prices, a favorable channel and portfolio mix coming from our strong growth in premium portfolio, GT growth, and profitable scale-up of our foods and digital-first portfolio. Advertising and sales promotion expenses grew substantially at 25% as we continued to invest significantly via brands to strengthen our long-term equity, support innovation, some of the big innovations we have launched this quarter, and drive consumer salience. EBITDA margin improved 40 basis points year to 20.7%.

Speaker #2: International business reported 15% constant currency growth, led by outperformance in Vietnam and China. Talking about the bottom line performance, gross margin expanded 30 basis points year-on-year, led by softer copra prices, a favorable channel and portfolio mix coming from our strong growth in the premium portfolio, GT growth, and profitable scale-up of our Foods and Digital-First portfolio.

Speaker #2: AN advertising and sales promotion expenses grew substantially at 25% as we continued to invest significantly beyond brands to strengthen our long-term equity support, innovation, some of the big innovations we have launched this quarter, and drive consumer salience.

Speaker #2: EBITDA margin improved 40 basis points year to 20.7. Overall, this is a very strong quarter for us, meant even noteworthy as it builds on a high base from the corresponding period last year.

Saugata Gupta: Overall, this was a very strong quarter for us, made even noteworthy as it builds on a high base from the corresponding period last year. On a 2-year basis, volume revenue and profit after tax have compounded at 10%, 23%, and 17% respectively, reflecting our strength of our portfolio of brands and execution prowess and our resilience. Let us now touch upon the key trends across our domestic business. Parachute Rigids delivered 10% volume growth, its strongest performance in the last 20 quarters, and gained over 400 basis points in volume share, marking a new high. Revenue grew 23%, reflecting the anniversarization of prior year price increases and pricing actions done during the quarter as we proactively passed on value to the consumers in one price point large packs amid softening in copra prices.

Speaker #2: On a two-year basis, volume revenue and profit after tax have compounded at 10, 23, and 17% respectively, reflecting our strength of our portfolio brands and execution prowess and our resilience.

Speaker #2: Let us now touch upon the key trends across our domestic business, parachute widgets delivered 10% volume growth with strongest performance in the last 20 quarters, and gained over 400 basis points in volume share, marking a new high.

Speaker #2: Revenue grew 23%, reflecting the anniversarization of prior year price increases, and pricing actions down during the quarter as we proactively passed on value to the consumers in non-price point large packs amidst softening in corpora prices.

Speaker #2: Beyond the strong quarterly outcome, the performance underscores enduring strength of the franchise and the competitive advantage we have built in supply chain compared to smaller players over decades.

Saugata Gupta: Beyond the strong quarterly outcome, the performance underscores the enduring strength of the franchise and the competitive advantage we have built in supply chain compared to smaller players over decades. Our expertise in managing commodity cycles combined with a differentiated supply chain and sharp execution, enables us to respond faster to market changes based on a lot of learnings over the past few cycles where we have taken price drops. Value-added Hair Oils continue its strong momentum, delivering 22% volume growth led by mid and premium segment. Premium and mid-end premium hair oils portfolio contributed close to high teens volume growth, this is the profitable part of the mix. We continue to gain market share handsomely. We are seeing encouraging progress in our almond oil franchise, and our aim is to build it to INR 100 crore plus ARR franchise by FY28.

Speaker #2: Our expertise in managing commodity cycles, combined with the differentiated supply chain and sharp execution, enables us to respond faster to market changes based on a lot of learnings over the past few cycles where we have taken price drops.

Speaker #2: Value-added hair oils continued with strong momentum, delivering 22% value growth led by the mid and premium segments. The premium and mid-premium hair oils portfolio contributed close to high-teens volume growth, which is the profitable part of the mix.

Speaker #2: We continue to gain market share handsomely, further we are seeing encouraging progress in our almond oil franchise and our aim is to build it to 100 crore plus ERR franchise by FY28.

Speaker #2: Our performance in VAHO reflects the growing strength of our premium portfolio, supported by sustained inventions and innovation, premiumization, and distribution expansion, and VAHO has benefited immensely by project Setu.

Saugata Gupta: Our performance in VAHO reflects the growing strength of our premium portfolio, supported by sustained innovation, premiumization, and distribution expansion. VAHO has benefited immensely by Project Setu. Saffola edible oil delivered 7% revenue growth during the quarter as we implemented calibrated pricing action in response to further increase in input costs. The business reported a high single-digit volume decline as we rationalize supply of select variants in certain channels to maintain sustainable profitability in the trade-off with volume growth. Our diversification agenda continues to gather momentum. The combined foods and premium personal care portfolio, including digital-first brands, has achieved significant scale and is increasingly becoming an important contributor to our growth. More importantly, these businesses are not only growing ahead of the core portfolio, but are also improving quality with stronger profitability, deeper consumer relevance, and expanding addressable markets we have besides our own internal capability.

Speaker #2: Saffola edible oil delivered 7% revenue growth during the quarter as we implemented calibrated pricing action in response to further increases in input costs. The business reported a high single-digit volume decline, as we rationalized supply of select variants in certain channels to maintain sustainable profitability in the trade-off with volume growth.

Speaker #2: Our diversification agenda continues to gather momentum. The combined foods and premium personal care portfolio including digital first brand as a significant scale and is increasingly becoming an important contributor to our growth.

Speaker #2: More importantly, this business has not only going ahead of the core portfolio, but it also improving quality with stronger profitability deeper consumer relevance and expanding addressable markets besides our own internal capability.

Speaker #2: Foods continue with strong growth trajectory reporting a 43% growth and crossing annualized revenue run rate of 1,300 crores, the addition of 4,700 BCN Cosmix expands our addressable market into attractive demand spaces while the core Safola foods franchise continues to deliver strong double-digit growth and strengthen its market position.

Saugata Gupta: Foods continue its strong growth trajectory, reporting a 43% growth and crossing annualized revenue run rate of INR 1,300 crore. The addition of 4700BC and Cosmix expands our addressable market into attractive demand spaces, while the core Saffola Foods franchise continues to deliver strong double-digit growth and strengthen its market position. Premium personal care continued to scale well, reaching an annualized revenue run rate of around INR 450 crore. We are witnessing encouraging traction in shampoos category and aspire to achieve about INR 100 crore of revenue this year. The launch of Parachute Advansed Protein Hair Conditioner further expands our addressable market and complements our broader premiumization agenda. Our digital-first portfolio, led by Beardo and Plix, continued to deliver strong growth alongside structural improvement in profitability.

Speaker #2: Premium personal care continues to scale well, reaching an annualized revenue run rate of around ₹450 crore. We are witnessing encouraging traction in the shampoos category and aspire to achieve nearly ₹100 crore of revenue this year.

Speaker #2: The launch of parachute advanced protein hair conditioner further expands our addressable market and complements our broader premiumization agenda. Our digital first portfolio led by Biodo and Plix continue to deliver strong growth alongside structural improvement in profitability.

Speaker #2: With an ARR of over 1,100 crores, the business has scaled up profitably exemplifying our digital playbook of combining entrepreneurial brand building with disciplined capital allocation and operating leverage.

Saugata Gupta: With an ARR of over INR 1,100 crore, the business has scaled up profitably, exemplifying our digital playbook of combining entrepreneurial brand building with disciplined capital allocation and operating leverage. Our priority is to drive profitable growth in this portfolio. Taken together, these new variant premium businesses are steadily strengthening Marico's growth architecture. As we expand into attractive demand spaces and scale new growth engines with discipline, we are not only diversifying the portfolio, but also enhancing the quality and sustainability of future growth. Moving on to international business, we delivered 15% constant currency growth during the quarter. Bangladesh reported a 4% constant currency growth as the business experienced a transient moderation in growth due to pricing anniversarization and demand softness due to persistent high inflation in the economy. This got further accentuated with a sharp rise in fuel and other energy prices.

Speaker #2: Our priority is to drive profitable growth in this portfolio. Taken together, these new variant premium businesses are steadily strengthening Marico's growth architecture. As we expand into attractive demand spaces and scale new growth engines with discipline, we are not only diversifying the portfolio, but also enhancing the quality and sustainability of future growth.

Speaker #2: Moving on to international business, we delivered 15% constant currency growth during the quarter, Bangladesh reported a 4% constant currency growth as a business experience of transient moderation in growth due to pricing anniversarization and demand softness due to persistent high inflation in the economy.

Speaker #2: This got further accentuated with a sharp rise in fuel and other energy prices. Through our focused category initiatives, we continue to strengthen our position and sustain market share gains.

Saugata Gupta: Through our focused category initiatives, we continue to strengthen our position and sustain market share gains. Vietnam continued its growth trajectory, delivering 27% constant currency growth during the quarter, driven by strong performance across the male and female personal care categories. We have structurally transformed the business through investments in innovation, distribution, and digital commerce capabilities. Particularly, the progress of our go-to-market transformation on the likes of Setu in India has enhanced execution quality, strengthened market competitiveness, and created a stronger platform for sustainable long-term growth. MENA grew 24% with both Gulf and Egypt performing well. Despite the inflationary pressures and operating challenges in the Gulf region, the business delivered resilient performance driven by strong execution, focused innovation, and continued market share gain in key categories. South Africa posted 8% growth led by hair care with our key brands Black Chic, Just for Kids, and Isoplus performing well.

Speaker #2: Vietnam continued with growth trajectory delivering 27% constant currency growth during the quarter driven by strong performance across the male and female personal care categories.

Speaker #2: With structurally transformed the business, the investments in innovation, distribution, and digital commerce capability particularly the progress of our go-to-market transformation on the likes of Setu in India has enhanced execution quality, strengthened market competitiveness, and created a stronger platform for sustainable long-term growth.

Speaker #2: Mina grew 24% with both Gulf and Egypt performing well, despite the inflationary pressures and operating challenges in the Gulf region, the business delivered resilient performance driven by strong execution, focused innovation, and continued market share gain in key categories.

Speaker #2: South Africa posted 8% growth led by hair care with a key brand Black Check just for kids and ISO plus performing well, new country development and export business grew 16%.

Saugata Gupta: New country development and export business grew 16%. Summing up, we have delivered a strong all-around performance this quarter, setting a solid foundation for the year ahead. To draw a cricketing parallel in a match where weather interruptions are a possibility, the best teams aim to get off to a strong start, especially in the power play overs, and stay ahead of the Duckworth-Lewis curve. In much the same, we are looking to build momentum early in the year, positioning ourselves stronger to navigate any volatilities that may rise later and deliver our fuller aspirations with greater confidence. Looking ahead, while global economic challenges persist, we remain optimistic about the consumption trends in India and believe that the strong fundamentals will continue to support economic activity in the country.

Speaker #2: Summing up, we have delivered a strong all-round performance this quarter setting a solid foundation for the year ahead. To draw a cricketing parallel in a match where weather interruptions are a possibility, the best teams aim to get off to a strong start especially in the super the power playovers and stay ahead of the Duckworth-Lewis curve.

Speaker #2: In much the same, we are looking to build momentum early in the year positioning ourselves stronger to navigate any volatility that may rise later and deliver our full-on aspirations with greater confidence.

Speaker #2: Looking ahead, while global economic challenges persist, we remain optimistic about the consumption trends in India and believe that the strong fundamentals will continue to support economic activity in the country.

Speaker #2: We will continue to monitor the evolving inflationary conditions and progress of the monsoon, but so far the government has done a fantastic job insulating consumers from any significant inflation.

Saugata Gupta: We will continue to monitor the evolving inflationary conditions and progress of the monsoon, but so far the government has done a fantastic job insulating consumers from any significant inflation. Some of the international geographies, however, could experience macro headwinds due to the inflationary pressures. However, we are confident in our ability to navigate well through these short-term phases. Despite the global supply chain disruptions, we have maintained strong supply chain assurance through strategic positioning of raw materials, packaging materials, and finished goods because of our extreme agility. In the near term, we remain focused on driving top quartile outcomes. The strong start to this year has set us well to achieve our full-year aspirations of delivering double-digit revenue growth to cross INR 15,000 crore easily. We are confident of achieving high teens EBITDA growth and aspire to touch 20% EBITDA growth during this year.

Speaker #2: Some of the international geographies, however, could experience macro headwinds due to inflationary pressures. However, we are confident in our ability to navigate well through these short-term phases.

Speaker #2: Despite this global supply chain disruptions, we have maintained strong supply chain assurance with strategic positioning of raw materials, packaging materials, and finished goods because of our extreme agility.

Speaker #2: In the near term, we remain focused on driving top quartile outcomes with strong start to this year as set us well to achieve our full-year aspirations of delivering double-digit revenue growth to cross 15,000 crores easily.

Speaker #2: We are confident of achieving high teen revenue growth and aspire to touch 20% EBITDA growth during this year. We expect India to deliver high single-digit volume growth, and international business to deliver mid-teen constant currency growth.

Saugata Gupta: We expect India to deliver high single-digit volume growth and international business to deliver mid-teens constant currency growth. We will certainly try and hit another double-digit quarter in India growth sometime in the next two quarters. On the cost front, we are witnessing divergent trends. Copra prices have corrected meaningfully. While it has seen some upward bias recently, we expect prices to be range-bound at around 35% lower, 35% lower than the last year's peak levels. On the other side, crude and vegetable oils continue to exhibit an upward bias, and consequently, we expect input costs to be relatively higher in Q2.

Speaker #2: We will certainly try and hit another double-digit quarter in India growth sometime in the next three quarters. On the cost front, we are witnessing divergent trends, copra prices have corrected meaningfully, while it has seen some upward bias recently.

Speaker #2: We expect prices to be range-bound at around 25, 35% lower, sorry, 35% lower than the last year's peak levels. On the other side, crude and vegetable oils continue to exhibit an upward bias and consequently we expect input cost to be relatively higher in Q2.

Speaker #2: As we advance towards our Vision 2030 to achieve ₹20,000 crore in revenues with mid-teens EBITDA CAGR, our focus remains clear: strengthen our core franchises, expand into adjacencies where we have a right to win, scale up our digital businesses profitably, and further diversify our international growth engine.

Saugata Gupta: As we advance towards the vision 2030 to achieve INR 20,000 crore in revenues with mid-teen EBITDA CAGR, our focus remains clear: strengthen our core franchises, expand into adjacencies where we have a right to win, scale up our digital businesses profitably, and further diversify our international growth engine. To anchor the next phase of our growth journey, our EDGE framework, expanding total addressable market and portfolio, enhancing distribution and digitization, growing profitably, and creating an empowered organization will serve as a backbone for translating our strategic priorities into measurable outcomes. We are building larger growth engines by strengthening core categories through sustained investments and wider portfolio participation across consumer cohorts, formats, and channels. Simultaneously, we are driving a structural shift in our portfolio towards the premium and more profitable categories by taking bigger, bolder bets.

Speaker #2: To anchor the next phase of our growth, journey, our edge framework portfolio enhancing distribution and digitization, growing profitably, and creating an empowered organization while will serve as a backbone for translating our strategic priorities into measurable outcomes.

Speaker #2: We are building larger growth engines by strengthening core categories to sustain investments and wider portfolio participation across consumer cohorts, formats, and channels. Simultaneously, we are driving a structural shift in our portfolio towards the premium and more profitable categories by taking bigger, bolder bets.

Speaker #2: We already reaping the benefits of GTM transformation led by our project Setu in India and now Vietnam. The next leg of our journey will focus on sharpening execution through use of smart analytics AI and integrated digital ecosystems.

Saugata Gupta: We are already reaping the benefits of DTM transformation led by our Project Setu in India and now Vietnam. The next leg of our journey will focus on sharpening execution through the use of smart analytics, AI, and integrated digital ecosystems. Profitable growth is pivotal to our strategy. We are releasing the share of commodity-linked businesses and progressively shifting our portfolio towards categories that are more profitable. As a result, our portfolio is being designed to compound more profitably with stronger unit economics, lower cyclicity, and better operating leverage over time. Long-term profitable growth or scaling intrinsically linked to the depth of organization quality and capability. We have always focused on building a strong future-ready backbone anchored in high-quality talent with founders' mentality and owners' mindset, and a value-driven frugal culture.

Speaker #2: Profitable growth is pivotal to our strategy. We're reining in the share of commodity-linked businesses and progressively shifting our portfolio towards categories that are more profitable.

Speaker #2: As a result, our portfolio is being designed to compound more profitably with stronger unit economics, lower cyclicity, and better operating leverage over time. Long-term profitable growth of scale is incidentally linked to the depth of organization quality and capability.

Speaker #2: We have always focused on building a strong future-ready backbone anchored in high-quality talent with founders' mentality and owners' mindset and a value-driven frugal culture.

Speaker #2: As people and technology are increasingly becoming interdependent, we are leveraging AI, analytics, and automation to improve visibility, speed, and decision support, while empowering teams to drive accountability, collaboration, execution excellence, and discipline.

Saugata Gupta: As people and technology are increasingly becoming interdependent, we are leveraging AI, analytics, and automation to improve visibility, speed, and decision support while empowering teams to drive accountability, collaboration, and execution excellence, and discipline. With this, I close my remarks, and we can take some questions.

Speaker #2: With this, I close my remarks, and we can take some questions.

Speaker #1: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question, may press star and then one on their touchdown phone.

Operator 3: Thank you very much. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy with Nomura. Please go ahead.

Speaker #1: If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking your question.

Speaker #1: Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Avnish Roy with Noama.

Speaker #1: Please go ahead.

Speaker #3: Yeah, thanks and congrats. My first question is on plant protein collagen and ACVs. So we have seen a lot of competition coming here as well as Oziva saw a weak quarter in terms of slower growth in Q1 and they called out that this is normal routine business things which keep happening.

Abneesh Roy: Yeah, thanks, and congrats. My first question is on plant protein, collagen, and ACV. We have seen a lot of competition coming here. HUL's Oziva saw a weak quarter in terms of slower growth in Q1, and they called out that this is normal routine business things which keep happening. If I see in your case also, Plix did see a reset in terms of slightly lower growth and more focus on margins from Q3. When we see competition and pricing, there is a lot of overall pricing war currently. Every startup company and a lot of the Tata, 1mg kind of players have also entered. I wanted to understand in this kind of a very high-growth segment, how is the pricing power and who will essentially win?

Speaker #3: But if I see in your case also Plix did see a reset in terms of slightly lower growth and more focus on margins from Q3.

Speaker #3: And then when we see competition and pricing, there is a lot of overall pricing war currently. Every startup company and a lot of the Tata 1MD kind of players have also entered.

Speaker #3: So I wanted to understand in this kind of a very high growth segment, how is the pricing power and who will essentially win? Because here brands are new and definitely a lot of the e-commerce company and a lot of the medicine online companies are also present there through their own private labels also.

Abneesh Roy: Because here brands are new and definitely a lot of the e-commerce company and a lot of the medicine online companies are also present there through their own private labels also.

Speaker #2: Yeah, I think let me address this in two ways. I think firstly, I think if you look at our brands, we focus a lot on D2C because D2C ensures that we own the consumer partner, him or her in their journey towards wellness.

Saugata Gupta: See, let me address this in two ways. I think firstly, if you look at our brands, we focus a lot on D2C because D2C ensures that we own the consumer, partner him or her in their journey towards wellness. We look at LTV by CAC, return, repeat rates, and we believe that they are healthy. Obviously, you can do performance marketing-led spends in a particular channel and grow, but that is not sustainable. In that context, I think both Plix and Cosmix have significantly loyal consumers with good repeat rate, good loyalty, and good equity. We also are using other channels to grow. Yes, there is competition, but sometimes what happens in categories like protein or ACV, it is good to have two, three players who are developing the category.

Speaker #2: We look at LTV by CAC, return, repeat rates, and we believe that they are healthy. Obviously, you can do performance marketing-led spends in a particular channel and grow, but that is not sustainable.

Speaker #2: In that context, I think both Plix and Cosmix has significantly loyal consumers with good repeat rate, good loyalty, and good equity. We also are using other channels to grow.

Speaker #2: Yes, there is competition sometimes, but you know, sometimes what happens in categories like protein or ACV, it is good to have two, three players who are developing the category because otherwise the category—it's important to have category investment to convert a fad into a habit.

Saugata Gupta: It's important to have category investment to convert a fad into a habit, and we believe in both the categories we participate, it's a habit. Having said that, as you know, Plix has also pivoted successfully towards premium personal care, which is plant-based hair and skin food. There's a journey to be had for Cosmix in the VMS space, and therefore we'll not restrict ourselves to only plant protein and ACV for both these brands. We are extremely confident of these brands giving sustainably profitable growth. As you know, Cosmix already, when we acquired the brand, had mid to high teens profitable growth.

Speaker #2: And we believe in both the category participate it's a habit. Having said that, as you know, Plix has also pivoted successfully towards premium personal care which is plant-based hair and skin food.

Speaker #2: There's a journey to be had for Cosmix in the VMS space. And therefore we'll not restrict ourselves to only plant protein and ACV for both these brands.

Speaker #2: And we are extremely confident of these brands giving sustainable, profitable growth. And as you know, Cosmix, already when we acquired the brand, had a, you know, mid to high teens profitable growth.

Speaker #3: Sure. My second question is on the almond hair oil 100 core brand by FY28. That's a very aggressive number. In the past other hair oil companies have also tried this without much success.

Abneesh Roy: Sure. My second question is on the Almond hair oil INR 100 crore brand by FY28. That's a very aggressive number. In the past, other hair oil companies have also tried this without much success. If you could tell us, apart from, say, aggressive pricing, what else is needed here? The number one player in this segment also seems to be doing quite well. Another follow-up will be essentially on what is the status on the 4700BC and Cosmix on those new business. Versus initial benchmark, where are we?

Speaker #3: So if you could tell us apart from say aggressive pricing what else is needed here because the number one player in this segment also seems to be doing quite well.

Speaker #3: So and another follow-up will be essentially on what is the status on the 4700 and Cosmix on those new business versus initial benchmark where are we?

Speaker #2: Okay. First, let me finish the 4700BC and Cosmix. They are doing well. They are tracking very well in terms of integration I think right now Marico offers two digital unique digital platforms one on foods, one on premium personal care and therefore they are I mean we are you know in terms of providing synergies expertise and sharing of best practices amongst all the brands.

Saugata Gupta: Okay. First, let me finish the 4700BC and Cosmix. They are doing well. They are tracking very well in terms of integration. I think right now, Marico offers two unique digital platforms, one on foods, one on premium personal care, in terms of providing synergies, expertise, and sharing of best practices amongst all the brands. It's tracking very well. Both the brands are very strong equity, and I believe they will end the year ahead of what our initial assumption was. The fact that we are also mindful of the profitability. Now, coming to the almond category. See, in any category, when a market leader makes super normal profit without significant innovation, this makes a case for disruption. We have proven that with Amla when we started the journey.

Speaker #2: So it's tracking very well. Both the brands are very strong equity and I believe they will end the year ahead of what our initial assumption is.

Speaker #2: And of course and also the fact that we are also mindful of the profitability. Now coming to the almond category. See, in any category when a market leader makes super normal profit without significant innovation, this makes a case for disruption.

Speaker #2: And we have proven that with Amla. When we started the journey, I think once upon a time we were at 9%, the leader was at 78%, and then we achieved market leadership.

Saugata Gupta: I think once upon a time, we were 9%, the leader was 78%, we achieved market leadership. I believe that there is a case for disruption in this category. I think the last one or two years, our resource allocation matrix, where we focus on fewer, bigger, better, bolder in terms of F2, which has given us access to distribution, has given a case for that we can take a critical market share in this category. Our ability to execute has, I think, we reasonably. Today, it's a machine which is executing this. Therefore, I believe given that the size of the category, INR 100 crore is a fair ambition.

Speaker #2: I believe that there is a case for disruption in this category. We have our I think the last one or two years our resource allocation matrix where we focus on fewer bigger better bolder in terms of C2 which has given us access to distribution.

Speaker #2: As given a case for that we can take a critical market share in this category. Our ability to execute has I think we reasonably today it's a machine which is executing this and therefore I believe given that the size of the category 100 core is a fair ambition.

Speaker #3: So, thanks. That's all from me. Thank you.

Abneesh Roy: Sure. Thanks. That's all from my side. Thank you.

Speaker #1: Thank you. The next question comes from the line of Mahir Shah with Nomura. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Mihir Shah with Nomura. Please go ahead.

Speaker #2: Yeah.

Saugata Gupta: Yeah.

Speaker #1: Mahir Shah from Nomura. Please proceed with your question.

Operator 3: Mihir Shah from Nomura, please proceed with your question.

Speaker #3: Hello sir. So sorry for that. Apologies and congrats on a great set of numbers and thank you for taking my question. Firstly on Parachute, you know COPRA has again started to go up again.

Mihir Shah: Hello, am I audible now?

Saugata Gupta: Yeah.

Saugata Gupta: Yes, you are audible now, sir.

Saugata Gupta: Hi.

Saugata Gupta: Sorry for that. Apologies, congrats on a great set of numbers, and thank you for taking my question. Firstly, on Parachute, copra has again started to go up again. Do you foresee any intervention required in the near or medium term? Given the large price hike that we had taken in Q2 of last year, can you help us understand what level of price decline can be expected in the near term over the next few quarters on Parachute? That's question number 1.

Speaker #3: Do you foresee any intervention required and you know in the near or medium term? And given the large price hike that we had taken in Tokyo of last year, can you help us understand what level of price decline can be expected in the near term over the next few quarters on Parachute?

Speaker #3: So that's question number one.

Speaker #2: So, just when you measure price decline as—okay, so I think one of the things is, two things happened last year. First, I think we had a 100% increase in input cost prices.

Saugata Gupta: Sir, just when you measure price decline as in MRP pricing? Okay. I think 2 things have happened last year. First, I think we had 100% increase in input cost prices. We took a 60% hike, therefore, we didn't pass on the entire cost push to the consumer. I think it was unprecedented kind of input cost, but Parachute showed significant resilience. I think it was a very bold move. Nowhere in the world you take a 60% price increase and ensure that you get a slightly positive growth in terms of number of transactions. I think it's unprecedented. I have not seen it happening anywhere. Okay. Now, coming to this year, we were careful about 2 things. One, I think in the past, we hadn't executed some of the price drops well.

Speaker #2: We took a 60% hike. So therefore we didn't pass on the entire cost push to the consumer. And I think it was unprecedented kind of input cost.

Speaker #2: But Parachute showed you know significant resilience. I think it was a very bold move. Nowhere in the world you take a 60% price increase and ensure that you get a slightly positive you know growth in terms of number of transactions.

Speaker #2: I think it's unprecedented. I have not seen it happening anywhere. Okay. Now coming to this year we were careful about two things. One, I think in the past we hadn't executed some of the price drops well.

Speaker #2: So we waited and watched and therefore we have taken only some price drops in the you know what I call the loyalty packs. As you know unlike other categories here the usage of coconut oil in terms of the lower LSM is high and therefore some of the loyalty packs were slightly stressed by the inflation.

Saugata Gupta: We waited and watched, and therefore, we have taken only some price drops in the, what I call the loyalty packs. As you know, unlike other categories, here, the usage of coconut oil in terms of the lower LSM is high, and therefore, some of the loyalty packs were slightly stressed by that inflation. We have taken the pricing drops on the loyalty packs, and we haven't taken in the small packs and the price point packs. Okay. I think the total hike drop was around 10%, right?

Speaker #2: So we have taken we taken the pricing drops you know on the loyalty packs and we hadn't taken in the small and the small And I think the price the total hike drop was around 10%.

Speaker #3: On the normal price point.

Pawan Agrawal: Around 10%.

Speaker #2: Around 10%. Okay. Now we were clear that we will take only one hike. The other thing which we have done very well I think this time is because of significant investment in AI-led led demand sensing and forecasting and the entire supply chain our you know the overall pipeline is very thin.

Pawan Agrawal: Around 10%. Okay. We were clear that we will take only one hike. The other thing which we have done very well I think this time is because of significant investment in AI-led demand sensing and forecasting and the entire supply chain, our overall pipeline is very thin. I believe, in the entire FMCG category, our distributor stock is one of the lowest. Therefore, in the past, any price drop used to take, what I call 8 weeks or 10 weeks to get effected in the market. This has happened much faster. Secondly, I think what has also changed is that, by taking only one price hike and the fact that the other thing which we did last year is smoothening of all trade spends, no month-end spends. Therefore, the pipeline is extremely clear. There are no blockages in the pipeline.

Speaker #2: I I believe in the entire FMCG category our distributor stock is really one of the lowest. So therefore in the past you know any price drop used to take you know what I call eight weeks or 10 weeks to get affected in the market.

Speaker #2: This has happened much faster. Secondly, I think what has also changed is that, you know, by taking only one price hike and, in fact, the other thing which we did last year is the smoothening of all trade spends—no month-end spends.

Speaker #2: So therefore the pipeline is extremely clear. You know there are no blockages in the prices. So I think that has resulted in significant kind of a impact in terms of growth coming back in the larger packs.

Saugata Gupta: I think that has resulted in significant kind of impact in terms of growth coming back in the larger packs. Coming to the copra thing, we believe that it will stay range bound with maybe a slight upward bias at this 30%-35% kind of a level below the peak. I think we are okay with the kind of pricing interventions we have taken. Obviously, the 10% growth in Parachute was also led by some supply chain advantages which we had compared to the small players. The other thing which we are witnessing, which is also good for us, is that some of the larger players in this space are exhibiting more rationality in terms of pricing. I think with all this, I think you will get a decent good volume growth, decent volume growth in Parachute even in the next subsequent 1 or 2 quarters.

Speaker #2: Now, coming to the copra thing, we believe that it will stay rangebound, with maybe a slight upward bias at this 30–35% kind of a level below the peak.

Speaker #2: And we are I think we are okay with the kind of pricing interventions we have taken. Obviously the 10% growth in Parachute was also led also by some supply chain advantages which we had compared to the small thing small players.

Speaker #2: The other thing which we are witnessing, which is also good for us, is that some of the larger players in this space are exhibiting more rationality in terms of pricing.

Speaker #2: So I think with all this I think you will get a decent you know good volume growth decent volume growth in Parachute even in the next subsequent one or two quarters.

Speaker #3: So just to clarify Mahir what Saugata meant was one price drop. You don't want to take multiple price drops. And given the fact that we now be moving into off season in the next couple of months we don't see any pricing corrections to happen on the cost side.

Pawan Agrawal: Just to clarify, Mihir, what Shovita meant was one price drop. We don't want to take multiple price drops. Given the fact that we now will be moving into off-season in the next couple of months, we don't see any pricing corrections to happen on the cost side. Therefore, we do not expect any further pricing action from our end.

Speaker #3: And therefore we do not expect any further pricing action from our end.

Speaker #1: Understood. I'll take it offline with you later if that is okay.

Mihir Shah: Understood. I'll take it offline with you later, if that is okay.

Pawan Agrawal: Absolutely.

Speaker #3: Absolutely.

Speaker #1: Secondly secondly I wanted to check on gross margin on a concern level. Do you see any headwind in gross margins over the next coming quarters?

Mihir Shah: I wanted to check on gross margin on a concern level. Do you see any headwind in gross margins over the next coming quarters? I am unable to triangulate your EBITDA guidance of high teens, given that you still will continue to get benefits on copra. If you hold on to these margins also, there is a material expansion that can happen on the EBITDA growth front, at least. If you can just help me to triangulate your gross margin and EBITDA growth guidance.

Speaker #1: Because I'm unable to triangulate your EBITDA guidance of high teens given that you still will continue to get benefits on COPRA. And if you hold on to these margins also there is a material expansion that can happen on the EBITDA growth front at least.

Speaker #1: So, so, so if you can just help me to triangulate your gross margin and EBITDA growth guidance.

Speaker #3: If you look at the gross margin in this quarter, we have expanded by approximately 30 basis points. These are for Q1, FY26. Now, while there are benefits with respect to consumption on the copra side, at the same time, you also have to be mindful that with respect to crude-led derivatives on LP and polymers, there is a significant cost push.

Pawan Agrawal: The gross margin, in this quarter, we have expanded by approximately 30 basis points vis-à-vis Q1 FY2026. While there are benefits with respect to consumption on the copra side, at the same time, you also have to be mindful that with respect to crude-led derivatives on LDPE and polymers, there is a significant cost. For example, on both these items, the cost increase has been anywhere in the range of 60% to 70%. It will be a mix of both the gains coming in from the consumption of lower copra prices that we witnessed in Q1. At the same time, higher impact on account of LDPE polymers as well as edible oil prices. We have not really passed on the entire hit to the consumers.

Speaker #3: For example on both these items the cost increase has been anywhere in the range of 60 to 70%. So it'll be a mix of both a gains coming in from the consumption of lower COPRA prices that we witnessed in quarter one.

Speaker #3: But at the same time higher impact on account of LP polymers as well as edible oil prices. And we have not really passed on the entire hit to the consumers.

Speaker #3: So just on the guidance side, it's very difficult to give on gross margin because we believe it will be a little bit of a mix of both.

Pawan Agrawal: Just on the guidance side, very difficult to give on gross margin because we believe it will be a little bit of mix of both. We would try and hold the gross margin percentage as compared to last year. On EBITDA margins, again, giving quarter-wide guidance could be difficult. On a full year basis, you heard Shovita mention that high teens is something which is the base case, and we would try for 20% growth for the full year. If you do the reverse math, and if you see that INR 15,000 crores is something that we should definitely deliver, then the reverse math would suggest that EBITDA margin could expand in the range of about 140 to 150 basis points as compared to last year. I hope this answers your question.

Speaker #3: But we would try and hold the gross margin percentage as compared to last year. However, on EBITDA margins, again, giving quarter-wise guidance where there could be a difference could be difficult.

Speaker #3: But on a full year basis you heard Saugata mentioned that high teens is something which is the base case and we would try for 20% growth for the full year.

Speaker #3: And if you do the reverse math, and if you see that ₹15,000 crore is something that we should definitely deliver, then the reverse math would suggest that EBITDA margin could expand in the range of about 140 to 150 basis points as compared to last year.

Speaker #3: I I hope this answers your question.

Speaker #1: Understood. Got it. No that's what I was highlighting. Even after a strong beat on 1Q you have kept a very conservative guidance on EBITDA growth.

Mihir Shah: Understood. Got it. That is what I was highlighting. Even after a strong beat on Q1, you have kept a very conservative guidance on EBITDA growth. I was just thinking on those lines. Anyway, I will come back in the queue. Thank you for taking my question. Wishing you all the best.

Speaker #1: So I was just thinking on those lines. Anyway I'll come back in the Q. Thank you for taking my question. Wishing you all the best.

Speaker #3: Only thing which I just want to mention is 20% plus growth is definitely not conservative by any standards. But yeah that's something which we'll definitely aspire to deliver.

Pawan Agrawal: The only thing which I just want to mention is 20% growth is definitely not conservative by any standard. That's something which we'll definitely aspire to deliver.

Speaker #1: Absolutely.

Mihir Shah: Absolutely.

Speaker #4: Thank you. The next question comes from Harith Kapoor with Investech. Please go ahead.

Operator 3: Thank you. The next question comes from Harit Kapoor with Investec. Please go ahead.

Speaker #2: Yeah hi good evening. So the first question was on on Parachute again. You did mention some supply chain benefits. This if you could kind of deconstruct this 10% volume growth into how much of it would have been led by maybe you know a mix of say you know grammage you know cut increases also that you might have done.

Harit Kapoor: Hi, good evening. The first question was on Parachute again. You did mention some supply chain benefits. If you could kind of deconstruct this 10% volume growth into how much of it would have been led by maybe a mix of, say, grammage increases also that you might have done, how much of it in your view is just competitive advantage because of supply chain? Because we haven't seen these kind of double-digit volume growth in Parachute for a very long time. Just wanted to get some more color on this 10% number. That would be very helpful. That's my first question.

Speaker #2: How much of it in your view is just competitive advantage because of supply chain and because you know we haven't seen these you know kind of double digit volume growth in in Parachute for for for a very very long time.

Speaker #2: So just wanted to get some more color on this 10% number. That would be very helpful. That's my first question.

Speaker #5: I think it's very difficult to allocate a number to each one of them but I don't think there has been any grammage changes as such.

Saugata Gupta: I think it's very difficult to allocate a number to each one of them. I don't think there has been any grammage changes as such. I think two things would have happened. One, as I said, that we selectively took deep price cuts or relatively deeper price cuts in the loyalty packs, which are a higher MRP. As you know, whenever there's a significant price increase, there is titration in use or downgradation. That took care of the downgradation. The second thing is, whenever there are supply chain challenges, which is with respect to whatever packaging material, which could respect to fuel or anything, obviously smaller players, they are impacted more compared to us, and therefore, we ensure there are no supply chain challenges.

Speaker #5: But I think two things would have happened. One as I said that we selectively took deep price cuts or relatively deeper price cuts in the loyalty packs which are higher MRP which resulted in some of the you know as you know whenever there's a significant price increase there is titration in use or downgradation.

Speaker #5: That took care of the downgradation you know. The second thing is whenever there are supply chain challenges which is respect to whatever packaging material which could respect to fuel or anything obviously smaller players you know they are impacted more compared to us and therefore we ensured there are no supply chain challenges.

Speaker #5: And thirdly I think we have executed the price drop phenomenally well compared to in the past. Whether it's respect to pipeline management whether it's respect to scheme management waiting and watching and taking one price drop.

Saugata Gupta: Thirdly, I think we have executed the price drop phenomenally well compared to in the past, whether it is with respect to pipeline management, whether it is with respect to scheme management, waiting and watching and taking one price drop. Lastly, as I said, the fourth factor could be that maybe compared to the past, some of the organized competition is a little more rational and focused on not selling below at negative gross margins.

Speaker #5: And lastly, as I said, the fourth factor could be that, maybe compared to the past, some of the organized competition is a little more rational and focused on not selling below, at negative gross margin.

Speaker #3: And just to clarify one thing Harith if you if you're referring about the MLH cuts that we had taken in the price point packs last year which is if you can at least 20.

Pawan Agrawal: Just to clarify one thing, Harit, if you are referring about the ml cuts that we had taken in the price point pack last year.

Harit Kapoor: Yeah

Pawan Agrawal: LUP 20. Now, as the copra prices have deflated, I want to clarify that we have not increased the mls. This 10% volume growth is the organic volume growth. Having said that, yes, 10% is elaboration. We do not really expect ourselves to keep delivering high single digit or 10% volume growth for the year. We would want to maintain the guidance of mid-single digit for the Parachute. Just to clarify, yes, we have not upped the grammage in the price point pack that we had cut down last year.

Speaker #3: Now, as the copra prices have deflated, I want to clarify that we have not increased the MLHs. So, this 10% volume growth is the organic volume growth.

Speaker #3: Having said that yes 10% is an aberration. We don't really expect ourselves to keep delivering you know high single digit or 10% volume growth for the year.

Speaker #3: We would want to maintain the guidance of mid single digit for the Parachute. But just to clarify yes we have not upped the grammage in in the price point pack that we had cut down last year.

Speaker #2: Got it. Thank you. The second part was you know how do I look at the 11% volume growth for the quarter. Is is that like a like to like number?

Harit Kapoor: Got it. Very clear. The second part is, how do I look at the 11% volume growth for the quarter? Is that like a like-to-like number? How do you calculate that number? Because you have had additions in the portfolio over the last three, four months in terms of new acquisitions.

Speaker #2: How do you calculate that number? Because you have had additions in the portfolio over the last three four months. In terms of new acquisitions.

Speaker #2: So when I when I look at the 11%.

Speaker #3: Yeah. So this is the organic growth. We haven't included the 4700 or cosmic into the volume growth calculation. Till the time it comes into the list it's not present.

Pawan Agrawal: Yeah. This is the organic number.

Saugata Gupta: Organic number.

Pawan Agrawal: We haven't included 4700 or Cosmix into the volume growth calculation.

Harit Kapoor: Got it.

Pawan Agrawal: Till the time it comes into the base, it's not complete.

Harit Kapoor: The third one was on A&P. Last two quarters, the A&P growths have been fairly modest. This quarter also, I think 9% growth at a consolidated level. I was just trying to understand, with these new acquisitions also coming in, assuming more money is going in, how are we able to kind of maintain level of investment as well as growth? Just some color on that would be helpful.

Speaker #2: Just the third one was on on on AMC. You know last two quarters you know the AMC growths have been you know fairly you know you know modest to this quarter also I think 9% growth out of it solidated level.

Speaker #2: I was just trying to understand you know with these new acquisitions also coming in assuming more more money is going in. You know you know how are we able to kind of you know maintain you know level of investment as well as growth.

Speaker #2: There's some color on that, which would be helpful.

Speaker #3: I mean said that we have bought our capital outly. Of course that does not impact our ability to invest behind the AMC line item.

Pawan Agrawal: I mean, aside that we have bought our capital outlay, of course, that does not impact our ability to invest behind the A&P line item. As far as if you look at the overall A&P, of course, we have grown by 25% in this quarter, which is a pretty healthy growth because as I said, of course, we had significant advantage in terms of our cost line items, and we found it appropriate to sort of invest behind both the core and mini products. In India, for example, we launched shampoo. Of course, we invested significantly behind shampoos. I think, yes, we had resources, and we thought it's the right thing to do to invest behind both, all the business for that matter, whether it is India and classical or digital, and that's why you see about 25% growth in the A&P line item.

Speaker #3: As far as if you look at the overall AMC of course we have grown by 25% in this quarter which is a pretty healthy growth because as I said of course we had significantly advantage in terms of our cost line items and we found it appropriate to sort of invest behind both the core and mini products in India.

Speaker #3: For example, we launched shampoo. Of course, we invested significantly behind shampoos. So, I think yes, we had resources, and we thought it's the right thing to do to invest behind all the businesses for that matter, whether it is India, international, or digital.

Speaker #3: And that's why you see about 25% growth in the AMC line item.

Harit Kapoor: Got it. Last quick one. Tax rate a little bit lower this quarter. Any change in guidance for the full year at a consolidated level?

Speaker #2: Last quick one would be tax rate—a little bit lower this quarter. Any change in guidance for the full year at a consolidated level?

Speaker #3: Yeah. So this year tax. This quarter it was about 17.5%. I think from a folio perspective you can take the guidance about 18% for FY27.

Pawan Agrawal: Yeah. This year tax quarter, it was about 17.5%. I think, from a full year perspective, you can take a guidance of about 18% for FY27 and maybe about 19% or 20% for FY28.

Speaker #3: And maybe about 19 or 20% for FY28.

Speaker #2: Thank you. We should have that. Thank you very much.

Harit Kapoor: Thank you. Wish you all the best. Thank you very much.

Speaker #3: Thank you.

Pawan Agrawal: Thank you.

Speaker #4: Thank you. Your next question comes from Nihal Mahesh Jam with HSBC. Please go ahead.

Operator 3: Thank you. The next question comes from Nihal Mahesh Jain with HSBC. Please go ahead.

Speaker #2: Yes. Good evening, team. Am I audible?

Nihal Mahesh Jain: Yes. Good evening, team. Am I audible?

Speaker #3: Hi. Yeah. Yeah. Yes.

Pawan Agrawal: Yeah.

Saugata Gupta: Yes, you are.

Speaker #5: Yes. You're audible.

Speaker #2: Sure. Three questions. The first one was on clicks actually. You know if you look at the growth specifically for the BPC segment it has been quite spectacular for FY26.

Nihal Mahesh Jain: Sure. Three questions. The first one was on Plix actually. If you look at the growth specifically for the BPC segment, it has been quite spectacular for FY26. Just wanted more understanding that, what would be the hero SKUs in this segment for Plix, and also how to get comfort in the fact that, Saugata, you've seen a lot of brands maybe leaving apart one to two D2C brands who sort of saturated close to this INR 500 to 700 kind of range. What sort of can give us the confidence to believe that Plix will not see that kind of a limitation? You mentioned that to look at it more as a D2C brand. That was my first question.

Speaker #2: So just wanted more understanding that you know what would be the hero SKUs in this segment for clicks. And also how to get comfort in the fact that Saugata you've seen a lot of brands maybe leaving about one to one to two D2C brands who sort of you know saturated close to this 5 to 700 kind of range.

Speaker #2: So what sort of can give us the confidence to believe that clicks will not see that kind of a limitation. And you mentioned that to look at it more as a D2C brand.

Speaker #2: So that was my first question.

Speaker #5: Yeah. I don't want to get into I think clicks has pivoted a lot to hair and skin food and obviously there are some hero SKUs where two three capabilities are basically ability to spot a trend and you know ride a trend.

Saugata Gupta: Yeah, I don't want to get into I think Plix has pivoted a lot to hair and skin food, and obviously, there are some hero SKUs where two, three capabilities are basically ability to spot a trend and ride a trend. Therefore, there's a very good innovation engine. They have a very good digital marketing engine, especially in both the influencer and content, which is a source of competitive advantage. Having a strong AOG and a D2C business, and the fact that the D2C part of the component being strong and profitable gives the edge. You are right that obviously Plix at INR 800 crore will not going to grow 30% to 40%. Also, we are not just chasing growth, we are also ensuring that this brand also is profitable.

Speaker #5: So therefore there's a very good innovation engine. They have a very good digital marketing engine especially in you know both the influencer and content which is a source of competitive advantage.

Speaker #5: And having a strong, you know, AOV and a D2C business, and the fact that the D2C part of the component being strong and profitable gives the edge.

Speaker #5: Now coming to the kind of you are you are right that obviously clicks are the 800 crore will not going to grow 30 40%.

Speaker #5: And also we are not just changing growth we are also ensuring that this brand also is profitable. Having said that at this level I'm sure there is an opportunity for the brand to get into a little bit into modern trade.

Harit Kapoor: Having said that, at this level, I am sure there is an opportunity for the brand to get a little bit into Modern Trade, get into beauty outlets. Of course, given the wide spectrum, it is not a single category brand. There are legs to grow.

Speaker #5: It get into beauty outlets and of course given the wide spectrum it's not a single category brand. There are legs to grow.

Speaker #2: Understood. That's very clear. Two click clarifications on Parachute. We had mentioned about you know taking a 10% price cut in Q4 in the non-MLH packs.

Nihal Mahesh Jain: Understood. That is very clear. Two quick clarifications on Parachute. We had mentioned about taking a 10% price cut in Q4 in the non-ml packs. That has been the only price that we have taken for Parachute. Is that understanding right?

Speaker #2: So that has been the only price cut we've taken for Parachute. Is that understanding right?

Speaker #5: Exactly. Exactly.

Saugata Gupta: Exactly.

Speaker #2: And just one last thing. Foods is obviously grown 43% but this includes obviously cosmix and 4700 also coming in. So X of that what would be the growth in the foods portfolio?

Nihal Mahesh Jain: Just one last thing. Foods has obviously grown 43%, but this includes obviously Cosmix and 4700BC also coming in. Ex of that, what will be the growth in the foods portfolio?

Saugata Gupta: Organic growth of this one is double digits.

Speaker #5: Organic growth for this one is in double digits.

Speaker #2: Double digit. Sure. That was it from my side. Thank you so much team.

Nihal Mahesh Jain: Double digits. Sure. That was it from my side. Thank you so much, team.

Speaker #4: Thank you. Your next question comes from the line of Arnab Mitra with Goldman Sachs. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Arnab Mitra with Goldman Sachs. Please go ahead.

Speaker #3: Yeah. Hi. Team congratulations on a very strong quarter. My first question was on Sakola oil edible oil. Is there any impact from this very fast growth we are seeing in cold pressed oils on the Sakora cold cold consumer in your understanding?

Arnab Mitra: Yeah. Hi, team. Congratulations on a very strong quarter. My first question was on Saffola oil, edible oil. Is there any impact from this very fast growth we are seeing in cold-pressed oils on the Saffola Gold core consumer in your understanding? Your own foray into cold-pressed oils, how is it progressing, and how do you think about that segment as a new segment to operate in?

Speaker #3: And your own foray into cold pressed oils how is it progressing and how do you think about that segment as a new segment to operate in?

Speaker #5: I think I believe that it's a a very good growth engine. And in fact one of the things we are looking at in Sakola is concerned is ensuring that we maintain a threshold level of profitability.

Harit Kapoor: I think, I believe that it's a very good growth engine, and in fact, one of the things we are looking at in Saffola is concerned is ensuring that we maintain a threshold level of profitability. We are not seeing any impact on a Saffola Gold or a total user. They are very loyal, responsive users. The entry point Saffola is a little more commoditized, and this is the one which we are selectively reducing their, in terms of both the terms of share of contribution of the packs and ensuring I don't want consumers at below a threshold level of profitability. I think cold-pressed is a category of the future, and therefore, we are investing in cold-pressed oil. I believe by the next year it will be a sizable portion of the Saffola business.

Speaker #5: So we are not seeing any impact on a Sakola gold or a total user. They are very loyal this one user. The entry point Sakola is a little more commoditized and this is the one which we are selectively reducing their you know in terms of both the you know the terms of share of contribution of the packs and ensuring a I don't want consumers at below a threshold level of profitability.

Speaker #5: I think cold press is a category of the future, and therefore we are investing in cold press oil. I believe that by next year, it will be a sizable portion of the Saffola business.

Speaker #5: It also makes sense if multiple large players invest behind the category and grow the category. And it's a category of the future and that is what we are pivoting to and we are selectively making this choice that we don't want a certain part of the Sakola business in some channels below a threshold level of profitability.

Saugata Gupta: It also makes sense if multiple large players invest behind the category and grow the category. It's a category of the future, that is what we are pivoting to, and we are selectively making this choice that we don't want a certain part of the Saffola business in some channels below a threshold level of profitability.

Speaker #3: I've got it.

Arnab Mitra: I've got it.

Saugata Gupta: To answer your question, Saffola Gold has not got impacted because of cold press.

Speaker #5: So just to answer your question Sakola gold has not got impacted because of cold press.

Speaker #3: Got it. And as you look at your own cold press business does it have a margin structure which is attractive enough for you to invest in that business?

Arnab Mitra: Got it. As you look at your own cold press business, does it have a margin structure which is attractive enough for you to invest in that business? Because you are advertising.

Speaker #3: Because you are advertising that you want to understand it.

Saugata Gupta: Yeah

Arnab Mitra: I just want to understand.

Speaker #5: It is far superior to the core Sakola edible oil gross margin.

Saugata Gupta: It is far superior to the core Saffola edible oil rough margin.

Speaker #3: Got it. Got it. My second question was on your premium personal care. There there you've done a 450 crore plus ARR. There seems to have been some improve significant improvement there sequentially and also YOY.

Arnab Mitra: Got it. My second question was on your premium personal care, where you've done a 450 crore plus ARR. There seems to have been some significant improvement there sequentially and also YOY. Is this to do with the launch of shampoo and, generally, the strategy? Do you want to play it as a mainstream shampoo player, or what is the thought process behind this entering into shampoo?

Speaker #3: So is this to do with the launch of shampoo and generally the strategy I mean do you want to play it as a mainstream shampoo player or how do you what is the thought process behind this entry into shampoo?

Speaker #5: I think we want to obviously play as a mainstream shampoo player. I think if you look at it I think we now have learnings.

Saugata Gupta: I think we want to obviously play as a mainstream shampoo player. I think if you look at it, I think we now have learnings. We have a shampoo portfolio in almost all the big international markets. We have done relatively well. I wish I had launched this 10 years ago, but it's maybe 10 years late, but better late than never. I believe that with a strong equity, people want naturals as a space for Parachute Advansed. I think the mix looks good, just like we have done fairly well in Bangladesh or Middle East with Parachute, we are extremely confident that we'll get a critical mass, therefore our first step is to get 100 crores in the first year.

Speaker #5: We have a shampoo portfolio in almost all the big international markets. We have done relatively well. I wish I had launched this ten years ago, but maybe it's ten years late—but better late than never.

Speaker #5: And I believe that with a strong equity people want naturals as a space for Parachute advance. I think the mix looks like we have done fairly well in Bangladesh or Middle East with I mean in Parachute we are extremely confident that we will be get a critical mass and therefore our first step is to get 100 crores in the first year.

Speaker #5: So far the I think it's very encouraging and what has also helped is because of K2 we now have very good quality direct market execution and we don't want this product to just go through wholesale but great market execution.

Saugata Gupta: Far, I think it's very encouraging, what has also helped is because of Setu, we now have very good quality direct market execution, we don't want this product to just go through wholesale, but great market execution. Therefore, the results are encouraging, I believe over the next three, four years, this will be one more big pivot of growth and then our premiumization of the core along with Amla.

Speaker #5: The and therefore the results are encouraging and I believe over the next three four years this will be one more big pivot of growth and you know premiumization of the core along with Amant.

Speaker #3: Got it, got it. Very helpful, Shagat. Thanks. That's it from my side. All the best.

Arnab Mitra: Got it. Very helpful, Saugata. Thanks. That's it from my side. All the best.

Speaker #4: Thank you. Your next question comes from the line of Ajay Thakur with Anand Rati Securities. Please go ahead.

Operator 3: Thank you. The next question comes from the line of Ajay Thakur with Anand Rathi Securities. Please go ahead.

Speaker #2: Hello sir. Thanks for taking my question. So wanted to understand a bit more on the Wahoo growth. If you can just throw some light in terms of you know the breakup between the value and the volume growth in the segment for Wahoo.

Ajay Thakur: Hello, sir. Thanks for taking my question. Wanted to understand a bit more on the VAHO growth. If you can just throw some light in terms of the breakup between the value and the volume growth in this segment for VAHO. Given the fact that the base might be catching up with VAHO maybe in a quarter or two post GHC rate cut. Can we expect this momentum to be maintained going forward, like a mid-teen kind of a growth?

Speaker #2: And given the fact that you know the base might be catching up with Wahoo maybe in a quarter or two you know post GST rate cut.

Speaker #2: So can we expect this momentum to be maintained going forward like a meeting kind of a growth?

Speaker #3: Yes. I think Shagat alluded to this on his opening remarks that while we are focusing on mid and premium segment and that segment has delivered high team growths in volume terms.

Pawan Agrawal: Yes, I think Saugata alluded to this on his opening remarks that while we are focusing on mid and premium segment, and that segment has delivered high teen growth in volume terms, of course, value growth is even higher. Going ahead, we definitely expect that we will maintain the trajectory of double digits. We would definitely try for even delivering high teen growth. We are fairly confident because it has definitely the kind of investment that we have done has shown good returns. Also the continuous investment in Setu is something which is really helping us grow in this segment. Yes, we are confident that we will be able to maintain this trajectory.

Speaker #3: Of course, value growth is even higher. Now, going ahead, we definitely expect that we will maintain the trajectory of double digits. We will definitely try for even delivering high teens growth.

Speaker #3: So we are fairly confident because it has definitely the kind of investment that we have done has shown good returns. Plus also the continuous investment in C2 is something which is really helping us grow in the segment.

Speaker #3: So yes we are confident that we'll be able to maintain this trajectory.

Speaker #2: Understood. And continuing with the earlier question from the previous participant, in terms of the Parachute shampoo launch, what would be our aspiration for the shampoo segment? Would we be looking at, you know, capturing a certain market share in the segment, aiming to be the number two or number three player? What would be the aspiration? And also, you know, how are we placed in terms of the launch? Are we only launching in certain specific markets so far, or is it a kind of national launch for Parachute shampoo?

Operator 2: Understood. Continuing with the earlier question of the earlier participant in terms of the Parachute Shampoo launch, what would be our aspiration in terms of the shampoo segment? Would we be looking at terms of capturing certain market share in this segment, being a number 2, number 3 player? What will be the aspiration? Also, how are we placed in terms of the launch? Are we launch only in certain specific markets so far, or is it a kind of a national launch for Parachute Shampoo?

Speaker #5: It's probably a national launch. As we speak in this you know the last quarter I think we'll take one year at a time. And as I said that we will take is a large category.

Saugata Gupta: It's probably a national launch as we speak in the last quarter. I think we will take 1 year at a time. As I said, it's a large category. I think we have to execute it well, be patient, be resilient, and make it big. There's little steps and someday it will become a critical mass. As I said, in line with our fewer, bigger, bolder, faster in terms of the core, I think Shampoo and Amla are 2 big bets, and similarly, cold press oil and maybe new releases are big bets, and we hope to get critical mass very soon in all these.

Speaker #5: I think we'll have to execute it well. Be patient. Be resilient and make it big. You know so there's little steps and someday it will become a critical mass.

Speaker #5: But as I said in line with our fewer bigger bolder faster in terms of the core I think shampoo and Amant are two big bets and we and similarly cold press oil and maybe muesli these are big bets and we hope to get critical mass very soon in all these.

Speaker #2: Understood. Quite helpful. Thanks.

Operator 2: Understood. Quite helpful. Thanks.

Speaker #4: Thank you. Your next question comes from the line of Sadarth Negandhi with CWC. Please go ahead.

Operator 3: Thank you. Your next question comes from the line of Siddharth Meghani with CWC. Please go ahead.

Siddharth Meghani: Hi. Congrats on a good set of numbers. Just a couple of questions. First, on understanding your perspective on how you are seeing channels play out and, given the growth into quick commerce, how do you see that having an impact on, A, your advertising spend, B, your margin profile, given the relative customer concentration there? That is one. The second one that I wanted to understand is, if you look at the India growth, a large part of it is obviously driven by the core business, but there also seems to be good growth coming from the non-standalone but India businesses, right? Which among the digital-first premium personal care brands are you seeing on a faster path to profitability there? Yeah, those are my two questions.

Speaker #3: Hi. Congrats on a good set of numbers. Just a couple of questions first on understanding you know your perspective on how you are seeing channels play out and you know given the growth into e-commerce how do you see you know that having an impact on A your advertising spend B your margin profile given given the relative customer concentration there.

Speaker #3: That was one. The second one that I wanted to understand is, if you look at the India growth, right, a large part of it is obviously driven by the core business, but there also seems to be good growth coming from the non-standalone, but India, businesses, right?

Speaker #3: Which among the digital first premium personal care brands are you seeing on a on a faster path to profitability there? Yeah those are my two questions.

Saugata Gupta: Okay. Channel, yeah. I am a little old-fashioned person. I believe in and theory and not or theory as far as channel is concerned. What has happened over the last five, seven years is that the entry barriers to the organized trade has significantly gone down. Today anybody with some capital can set up 100 programs, throw money, and get some market share. What has not changed is my belief, India being such a large country, the entry barriers towards having a solid GT distribution remains, and especially in rural India, middle India. This is something which we don't talk about because we only see that people like us, and the rural part of it. We have consciously invested behind this and strategy in the last three, four years. I think we have ensured that our distribution partners make significant ROI profitability.

Speaker #5: Okay. Channel. Yeah. See I think I am a little old fashioned person. You know I believe in and theory and not a or theory as far as channel is concerned.

Speaker #5: What has happened over the last five seven years is that the entry barriers to the organized trade has significantly gone down. So today anybody with some capital can set up a 100 crore brand throw money and get some market share.

Speaker #5: But what has not changed is my belief India being such a large country the entry barriers towards having a solid GT distribution remains and especially in rural India middle India this is something which we don't talk about because we only see that people like us you know.

Speaker #5: And the rural part of it. We act consciously invested behind these and strategy in the last three four years I think we have ensured that our distribution partners make significant ROI profitability.

Speaker #5: We invest behind technology. We invest behind direct distribution. And therefore GT can be a source of continued advance sustainable competitive advantage will continue to be in the next five seven years.

Saugata Gupta: We invest behind technology, we invest behind direct distribution. Therefore, GT can be a source of continued advantage for us. Sustainable competitive advantage will continue to be in the next five, seven years. We believe alternate channels are a source of driving premiumization as well as a test market for innovation. We have been avoiding cannibalistic growth. Therefore, I think that's the reason if you have multiple levers of growth and not depend on one channel. In fact, that's one of the shifts we did two, three years ago. We realized that we must pivot. That's when the operation or other Project Setu started. I believe India is a place of immense opportunities, and there is opportunities for all the channels to grow.

Speaker #5: We believe alternate channels are a source of driving premiumization as well as a test market for innovation. And we have been avoiding cannibalistic growth.

Speaker #5: So therefore I think we that's that's the reason if you have multiple levers of growth and not depend on one channel. In fact that's one of the shifts we did two three years ago and we realized that we must pivot and get and that's when the operation or other projects C2 started.

Speaker #5: So I believe India is a place of immense opportunities and there is opportunities for all the channels to grow. Having said that I think quick commerce has established itself and I I think quick commerce is unique to India where because of certain factors quick commerce is bound to grow.

Saugata Gupta: Having said that, I think quick commerce has established itself, and I think quick commerce is unique to India, where because of certain factors, quick commerce is bound to grow. We are investing behind quick commerce. What helps us is those six, seven digital brands, therefore we are a very big quick commerce as well as this one players. Having said that, one trend we are seeing is there's been a slight slowing down of growth in modern trade and the marketplace quick commerce compare. I mean, the marketplace e-commerce in the last couple of quarters over the last two years.

Speaker #5: And we have investing behind quick commerce what helps us is those six seven digital brands and therefore we are a very big quick commerce as well as this one players.

Speaker #5: Having said that one trend we are seeing is there have been a slight slowing down of growth in modern trade and the marketplace quick commerce compare I mean the marketplace e-commerce in the last you know couple of you know couple of quarters of the last two years.

Speaker #5: The second question on digital I think I think all the brands are growing well. But as I alluded to that for us a 2025 percent growth with profitability is much more important than growing 40 50 percent and you know burning cash.

Siddharth Meghani: The second one on digital.

Saugata Gupta: The second one on digital, I think all the brands are growing well, but as I alluded to that, for us, a 20%, 25% growth with profitability is much more important than growing 40%, 50% and burning cash. All the brands are doing fairly well. Beardo is on double-digit profitability. Plix is in high single digit tending towards double digit. We acquired Cosmix, which was already on high teens profitability. We are seeing a path to profitability for the other brands over the next 12 to 18 months, but the burn is now low, therefore we will grow it responsibly at the same time. I think the significance, as you see, a part of that EBITDA growth, which you're going to witness this year, is also contributed by the profitability movement in both food and digital brands.

Speaker #5: All the brands are doing fairly well. Deodo is on double digit profitability. Clicks is on high single digit trending towards double digit. We acquired Cosmix which was already on high teamed profitability.

Speaker #5: We are seeing a path to profitability for the other brands over the next you know 12 to 18 months. But the burn is now low.

Speaker #5: And therefore we will grow it responsibly at the same time and I think the significant as you see a part of that EBITDA growth which we're going to witness this year is also contributed by the profitability movement in both food and digital brands.

Speaker #5: Some through the mix and some obviously through the benefit which we have got from raw material.

Saugata Gupta: Some through the mix and some obviously through the benefit which we have got from raw material.

Speaker #3: Sure. Yeah. In fact in fact that's very evident where if you just look at on an EBIT level because that's where the segment comes in right there is a clear 40 percent jump in your non standalone India EBIT.

Siddharth Meghani: Sure. Yeah. In fact, that's very evident where if you just look at on an EBIT level, because that's where the segment comes in, there is a clear 40% jump in your non-standalone India EBIT. That is clear. Thanks. This is clear. Just a follow-up on that. It is interesting you mentioned that quick commerce is seeing growth, has established itself, but you're seeing a slowdown in organized trade and that channel, and considering the-

Speaker #3: So so that is clear. Thanks. Thanks. This is clear. Just to follow up on that. So it was interesting you mentioned right that quick commerce is seeing growth as established itself but you're seeing a slow down in organized trade and and that channel and considering right.

Saugata Gupta: Just let me clarify. I said relative slowdown. I am not saying a slowdown, but compared to the past. That I want to make myself clear.

Speaker #5: Just let me clarify I said relative slow down. I am not saying a slow down but compared to the past. So that I want to make myself clear.

Speaker #3: Sure. Clear Saugata. So sorry. I did not mean to allude in any way that you know GT is I mean I'm I'm equally clear on the fact that GT is probably still going to remain the dominant channel.

Siddharth Meghani: Sure. Clear, Saugata. Sorry. I did not mean to allude in any way that GT is panic. I'm equally clear on the fact that GT is probably still gonna remain the dominant channel. That part is clear. What I wanted to understand is, on quick commerce, considering that a large part of quick commerce is really channel shift rather than incremental demand, are you seeing that channel shift happening more from Modern Trade or from General Trade?

Speaker #3: That that part is clear. What I wanted to understand is on quick commerce considering that you know a large part of quick commerce is really channel shift rather than incremental demand.

Speaker #3: Right. Are you seeing that channel shift happening more from modern trade or from general trade?

Speaker #5: Very difficult to say it. I think it's coming from everything but I believe there is a certain shopper who is slightly different which is less price sensitive maybe more wanting convenience I want it now.

Saugata Gupta: Very difficult to say. I think it's coming from everything, but I believe there is a certain shopper who is slightly different, which is less price sensitive, maybe more wanting convenience, "I want it now." Also the kind of pack. We ensure that there is a channel pack architecture for each channel so that it is not cannibalistic, and therefore we maximize each channel and also ensure that I think we are also test marketing new products through this quick commerce opportunity. We are seeing it slightly differently so that we reduce the cannibalistic sale.

Speaker #5: Also the kind of Pax we ensure that there is a channel pack architecture for each channel so that it is not cannibalistic and therefore we maximize each channel.

Speaker #5: And also ensure that I think we have also test marketing you know new products through this quick commerce opportunity. So we are seeing it a slightly differently and so that we reduce the cannibalistic sale.

Speaker #3: Clear. Very helpful. Thank you. And all the best.

Siddharth Meghani: Clear. Very helpful. Thank you. All the best.

Speaker #5: Thank you.

Saugata Gupta: Thank you.

Speaker #2: Thank you. The next follow up question comes from the line of Avneesh Roy with Nuama please go ahead.

Operator 3: Thank you. The next follow-up question comes from the line of Avani Roy with Nomura. Please go ahead.

Speaker #3: Yeah. Thanks. Two follow up questions. One is slightly medium term structural question on Safola. If I see the target audience of Safola there is a lot of commonality with customer who uses air fryer.

Abneesh Roy: Yeah, thanks. Two follow-up questions. One is slightly medium-term structural question on Saffola. If I see the target audience of Saffola, there is a lot of commonality with customer who uses air fryer and GLP-1. If you see air fryer, the pricing has become very democratized, and there's very aggressive advertising also. Same thing is with GLP-1 also. I wanted to understand, yes, you're focusing on profitable growth in Saffola for the past two quarters and maybe years, but medium-term volume growth itself, is there a big question mark on Saffola because lot of penetration has happened, and if the same customer is now cutting down because of air fryer and GLP-1, volume growth itself will become a big question mark. Volume decline is my question. Are you worried on the volume decline?

Speaker #3: And GLP one. And if you see air fryer the pricing has become very democratized. And there is very aggressive advertising also. And same thing is with GLP one also.

Speaker #3: So I wanted to understand yes your focusing on profitable growth in Safola for the past two quarters and maybe years. But medium term volume growth itself is there a big question mark on Safola because a lot of penetration has happened and if the same customer is now cutting down because of air fryer and GLP one volume growth itself is become a big question mark.

Speaker #3: Volume decline is my question how are you worried on the volume decline?

Speaker #5: I think what we are doing is a structural reset of the portfolio saying that I take the reset takes one or two you know years where we are saying that I don't want a certain set of you know what I call variants which don't make a threshold cut in terms of profitability.

Saugata Gupta: I think what we are doing is a structural reset of the portfolio, saying that a reset takes 1 or 2 years, where we are saying that I don't want a certain set of what I call variants, which don't make a special cut in terms of profitability. Let me tell you, Saffola as a brand, for the last 20 years, encouraged consumers to use the right oil but use less oil. In line with what the prime minister has spoken, we encourage consumers, and that's why the Losorb technology was being discovered and invented so that it absorbs less oil. We have been working towards a healthier India, and I think we are attracting a certain set of consumers, and Saffola will continue to attract a set of consumers. Mid-single digit volume growth is absolutely fine.

Speaker #5: Let me tell you, Saffola as a brand for the last 20 years has encouraged consumers to use the right oil, but use less oil. And in line with what the Prime Minister has spoken, we encourage consumers, and that's why a lot of technology was discovered and invented so that it absorbs less oil.

Speaker #5: So, we have been working towards a healthier India. And I think we are attracting a certain set of consumers, and Saffola will continue to attract a set of consumers.

Speaker #5: So mid single digit volume growth is absolutely fine. Having said that I think it's pivoting towards food and maybe in a couple of years food will become the bigger part of the Safola architecture.

Saugata Gupta: Having said that, I think it's pivoting towards food, and maybe in a couple of years, food will become the bigger part of the Saffola architecture.

Speaker #3: Last question. You have essentially mastered and pioneered the DTC acquisitions. So last one two years whatever acquisition say you have done say 4700 Cosmix and some of the overseas brands how much will be Marico or your involvement in day to day?

Abneesh Roy: Last question. You have essentially mastered and pioneered the D2C acquisitions. Last 1, 2 years, whatever acquisitions you have done, say 4700BC, Cosmix and some of the overseas brands, how much will be Marico or your involvement in day to day? How is the transition working in terms of the management?

Speaker #3: So, how is the transition working in terms of the management?

Speaker #5: So as you know that these brands are just come to us this year early this year all the three brands. And for a minimum period at least three years some of the we learn these and today I think the way we are looking at it is you know we have now as I talked about that we look at from a platform point of view.

Saugata Gupta: As you know that these brands have just come to us, this year, early this year, all the 3 brands. For a minimum period, at least 3 years, we learn these. Today, I think the way we are looking at it is, we have now, as I talked about, we look at from a platform point of view. Now we have a D2C platform, we have a foods platform with common expertise and capability. They learn from each other, share resources, they share costs. Yes, I think this is the exciting part of the portfolio. In our structure, we have ensured that you have a CEO India business, you have a CEO international business, and I spend definitely a lot of time in digital. It's equally exciting.

Speaker #5: Now we have a DPC platform. We have a food foods platform with common expertise and capability. They learn from each other. Share resources. They share costs.

Speaker #5: And yes, I think this is the exciting part of the portfolio. In our structure, we have ensured that you have a CEO for the India business.

Speaker #5: You have a CEO international business. And I spend definitely a lot of time in digital. It's the it's equally exciting. And I think we now have a playbook so that we can have tuck in into the platform rather than looking at a fragmented acquisition.

Saugata Gupta: I think we now have a playbook so that we can have tuck-in into the platform rather than looking at a fragmented acquisition. As I had alluded to in the last call, when we did a special call with all of you on the digital structure, we are more or less done. We have still one or two things to do. I think we will continue to experiment. I think this began as an iterative thing, and we now have a pretty structured playbook, and we are pretty confident to have a INR 4,000 crore early teens mid-year kind of a EBITDA business by 2030.

Speaker #5: And as I had alluded to in the last call when we did a special and called with all of you on the digital structure we are more or less done.

Speaker #5: We have still one or two things to do. But I think we are will continue to experiment. I think this began as an iterative thing and we are now have a pretty structured playbook and we are pretty confident to have a 4000 crore you know early teens mid general kind of a you know a beta business by 2030.

Speaker #3: So one follow up on the shampoo bit. So is there any learning from your skin lotion moisturizer business because that again great packaging clearly the parachute brand extension those things are good.

Abneesh Roy: One follow-up on the shampoo bit. Is there any learning from your skin lotion, moisturizer business? Because that again, great packaging, clearly, the Parachute brand extension, those things are good. Are you happy with where the scale-up has happened over the past few years? Are there some learnings because both are segments where multinationals really dominate, and there are a few Indian companies also which are very strong there. Would you want to be a niche player? Yes, you mentioned INR 100 crore kind of ambition and take one year at a time. If you could just correlate with the skin lotion, the moisturizer brand, and that business, what are the commonalities and what are the learnings from there?

Speaker #3: But are you happy with where the scale up has happened over the past few years and are there some learnings because both are segments where multinationals really dominate and there are a few Indian companies also which are very strong there.

Speaker #3: So would you want to be a niche player yes you mentioned 100 crore kind of a ambition and take one year at a time.

Speaker #3: But if you could just correlate with the skin lotion the moisturizer brand and and that business what what are the commonalities and what are the learnings from there?

Speaker #5: I think firstly I think two things on the body lotion as a category the penetration is low with global warming and winter shrinking I think the category has not grown significantly.

Saugata Gupta: I think firstly, I think two things. On the body lotion as a category, the penetration is low. With global warming and winter shrinking, I think the category has not grown significantly. The category has also pivoted towards a low margin, in terms of MT-driven brand, and therefore, we said that this is something which we don't want to participate because even if I get 10 or 15 in line with a fewer, bigger, bolder, it doesn't fit in, okay. Now, shampoo, we have proven the model and just to assure all of you that in most of the international markets we have successfully competed with multinationals. Our growth rate has been pretty good on the shampoo category. Say in Bangladesh now it's year 4 or year 5. In Middle East, it's year 2, year 3, where it has got sustained growth. We have a proven model.

Speaker #5: And the the category has also pivoted towards a low margin you know in terms of OT driven brand and therefore we said that this is something which we don't want to participate because even if I get 10 or 15 in in line with a fewer bigger bolder you know it doesn't fit in.

Speaker #5: Okay. Now, with shampoo, we have proven the model, and just to assure all of you, in most of the international markets we have, we have successfully competed with multinationals.

Speaker #5: Our growth rate has been pretty good on the shampoo category. It's not in say in Bangladesh now it's year four or year five. In Middle East it's year two year three where it has got sustained growth.

Speaker #5: We have a proven model. I think in India shampoo category is very large. And parachute advanced is a is a very very strong equity.

Saugata Gupta: I think in India, shampoo category is very large, and Parachute Advansed is a very, very strong equity. We have significant distribution advantages. I think the right time when our execution engine is at its peak, we have a very focused allocation strategy. The reason I don't want to give a 3-year, 5-year vision in today's world, we'll take one year at a time, but I am extremely confident that we'll do fairly well in this. As I said, it's a very, very large category.

Speaker #5: We have significant distribution advantages. I think the right time when we are when our execution engine it at its peak we have a very focused allocation strategy.

Speaker #5: So the reason I don't want to give a three year five year vision in today's world will take one year at a time but I am extremely confident that we will do fairly well in this.

Speaker #5: And as I said, it's a very, very large category.

Speaker #3: No, thank you. That's all from me. Thanks a lot.

Abneesh Roy: No, thank you. That's all from me. Thanks a lot.

Speaker #1: Thank you. Ladies and gentlemen we take that as a last question for today. I now hand the conference over to the management for closing comments.

Operator 3: Thank you. Ladies and gentlemen, we take that as the last question for today. I now hand the conference over to the management for closing comments.

Speaker #3: Thanks for listening in to conclude the we will started the year on a very strong note with multi quarter high performance across schema prices.

Pawan Agrawal: Thanks for listening in. To conclude, we started the year on a very strong note with multi-quarter high performance across key measures, supported by robust business fundamentals and disciplined execution. While the near-term macro environment is evolving, we are confident in our ability to navigate it effectively and deliver our full-year aspiration to cross INR 15,000 crore mark, and at the same time, aim for 20% EBITDA growth. We will remain focused on driving consistent, profitable, and sustainable value creation for all stakeholders. That's it from our side. Should you have any further queries, please feel free to reach out to our IR team and they'll be happy to address. Thank you, and have a great evening.

Speaker #3: Supported by robust business fundamentals and disciplined execution. While the near-term macro environment is evolving, we are confident in our ability to navigate it effectively.

Speaker #3: And deliver our fully aspiration to cross 15000 crore mark. And at the same time aim for 20 percent EBITDA growth. We would remain focused on driving consistent profitable and sustainable value creation for all stakeholders.

Speaker #3: That's it from our side. Should you have any further queries please feel free to reach out to our IR team and they'll be happy to address.

Speaker #3: Thank you, and have a great evening.

Operator 3: Thank you. On behalf of Marico Limited, that concludes this conference. Thank you everyone for joining us, and you may now disconnect your lines.

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