Q2 20/21

Oct 19, 2020

Good day, and welcome to the Bajaj Consumer Care Q2 FY 'twenty one Earnings Conference Call hosted by CIC Securities Limited. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Manoj Manin from ICICI Securities Limited. Thank you, and over to you, sir. Hi. Good morning, everyone. It's our absolute pleasure to host the 2Q FY twenty twenty results conference call of Vajaj and Subhakan. The consumer sector results get kicked off with Vajaj being the first result. It's a stock business which we like, and we are firm believers in the turnaround by under Mr. Girid Nandhi, the Managing Director, who is here on the call today, Mr. Girid Kumar Malu, the Chief Financial Officer and Mr. Kushal Mehretshedi, Head of Treasury and IR. Over to the management for the future remarks, and then we'll open the floor for questions and answers after that. Over to you, Good morning, everyone, and, thank you, Manoj and Vishnu for hosting this call. My name is Jadi Pandey, and I am joined by my colleagues, mister D. K. Madhu, the CFO and mister Kushal Maheshwari, who's our Head of Treasury and Investor Relations, as well as some of my colleagues from our management committee. With the lifting of the lockdown restrictions increases across India, we see signs of recovery of both economic activity as well as consumer sentiment. I think it's a sign of adapting to the new normal. With the quarter while the quarter saw proliferation of COVID-nineteen, the FMCG business showed signs of recovery in the second half of the quarter. As you can see from the results of the hair oil growth, July, August was pretty good as far as the infant data is concerned. The logistics and distributions were back to nearly pre COVID levels. Those sporadic disruptions still remain due to localized lockdown restrictions, and we think that this will continue for the next one or two quarters. The company reported a sales turnover of crores for the quarter with a growth of 5% over the same quarter of previous year. The EBITDA for the quarter was at INR63.99 crores, which is a marginal growth of 0.6 over the previous quarter previous year, sorry previous year same quarter. The EBITDA to service ratio was at 28.9%. The gross margin was at 65.8% as against 66.2% in 2014. The marginal drop was due to change in the product mix with little higher contribution of Dajaj Amla hair oil and sanitizers, both put together contributing to about 5% for the quarter sales. The PAT for the company was at INR 57.25 crores against INR 57.29 crores, which is basically flat during the corresponding quarter of the previous year and previous year. The commodity prices remained inflationary during the quarter with LLP prices showing a gradual rising trend. Refined mustard oil prices has also been increasing with supply constraint and rising global edible oil demand. During the quarter, the benefit of LLP prices was partially offset with increase in RMO prices and other packaging material, thereby contributing to a marginal gain in gross margins as compared to previous years. This is specific to only raw material and packaging material costs. There has been a recovery in Air Oil category in the months of July and August with 0.5% value growth and a 2.7% volume growth after a quarter one decline of 25%. The year to date August hair oil market decline remains at 15% by value and a of 12% by volume. Clearly, the consumer time trading can be seen from the difference in the value volume decline of 3%. Rural India continues to perform better than the urban markets aided by government relief packages, agricultural boost and reverse migration of labor. Oven markets declined at a lower lower rate of 6.4% for July and August as per Nielsen, while rural growth continues and it has worked 9.7% for the same period, positive 9.7%. For the company, the approach has been to maximize the available growth opportunities by driving our distribution and penetration in rural markets. The van operations have been scaled up steadily during the quarter. The urban markets continue to be under stress due to partial lockdowns in some of the markets with wholesale showing signs of recovery, but retail still struggling. As a result, the rural markets have been outperforming, and there has been an increase of our rural contribution to about 52% from 44% over year. The company continues with its policy of completely new credit to distributors and super stock exchange rate with Ingo, I think, continuing only against advanced payment. With a very country with an uncertain economic outlook, the consumers are clearly displaying value for money purchase behavior. To keep pace with this changing consumer sentiment, we have launched new SKUs in both ADHO as well as AMLA with adequate promotional offers, both trade and consumer. We'll continue to monitor the same and react accordingly as we see the market. Modern trade channel has been under severe stress post COVID-nineteen due to entry restrictions and closure of malls in most cities and towns. The pressure on this channel has not eased much in Q2, and it continues to decline for us as well in the quarter. With the festive season around and the relative easing of global markets, we believe voluntary channel will do better in the coming quarters, which we need to see how it pans out. E commerce has shown promising growth figures in the quarter, albeit on a very, very small base. We see potential in online retail, which is gaining consumer preference across cities and big towns, and we intend to make this one of our future growth drivers. There has been a significant ramp up in digital marketing in the second quarter, which has also helped drive the e commerce business. International business has recovered in this quarter across markets, wiping the deficit of the first quarter as markets continue to ease up. We will continue to approach these markets tactically for the current year. During the quarter, the company upped the investments in marketing through sustained TV, print, digital media. And as a result, the advertising and sales from sales are back to the peak COVID levels of about eighteen percent to sales. The media strength strategy was a robust focused in July and August to capitalize on the global market uptake. ADHO has been restaged in quarter two with new and improved formulation, the benefit of 6x vitamin E and enhanced nourishment to reduce hair fall. The launch is being supported with integrated marketing campaigns across TV, print, digital and on ground visibility from September onwards. During the quarter, we introduced three new pack sizes in Bajaj Amla Hair Oil, the three ml Chachet, the 300 ml and the 500 ml over our existing three SKUs of 37.4, 8,160 ml. So that now we have a complete range in Amla at different price points. Amla has also been a focus in rural markets, is being supported with the brand initiative. Bajaj Anti Grey Hair Oil, a digital first brand, has been listed on all major e commerce chains in this quarter. Sales remain low currently, but we remain committed towards investing behind the brand, primarily through digital. Moab hand sanitizer has shown good response during the initial periods of lockdown. However, the sales have slowed down due to crowding of the market with numerous players offering high trade discounts. It makes me very proud to announce that our Ponta plant has also got the Golden Peacock National Quality Award for the year 2020. As a company, we have been increasing our usage of automation and technology, which has been planned and implemented across functions in the organization. The management committee of the company has also been working on to upgrade the systems and processes in order to improve operational efficiency efficiency and meet the operation future ahead. With that, I end my opening remarks and open the session for questions. Thank you very much. We will now begin the question and answer session. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets when asking a question. The first question is from the line of Prakash Kapadia from Anivit Portfolio Management. Please go ahead. For taking my question. I have two questions, sir. Mister Kapadia, can you speak closer to the answer, please? Yeah. Now is it audible? Yes, sir. Yeah. I have two questions. You know, one on sanitizer sales. What is the contribution to h one? And, you know, what kind of demand trends are we currently seeing? And secondly, on urban markets, you know, do we see migrants coming back? And with festive season, what's the outlook on urban demand? If you look at advertisers, clearly, the sentiment that was displayed in the first quarter, I mean, clearly, definitely by us, and I think quite a few of many companies, not only across FMCG, but across many other companies, clearly, though that way, it has not panned out. So as a result, while if you look at H1, where the contributions were close to single mid single digit, that contribution has nearly halved in this quarter. And now it is basically a practical thing where we look at see how the market pans out. At this stage, it is extremely crowded. The discounts that are being offered in the market, there is not really money to be made. And if you look at if you really want to establish the brand, the kind of expense that you would require to put in behind the brand, really speaking, may not be the best way forward, I would say. So we'll keep watching this stage. At this moment, it's not one of our key focus areas. We wanted to take it as an tactical opportunity. We made took advantage of it. At this stage, we are going easy on it. It's more of now clearing how do we clear our inventory and we remain more or less safe. So that's as far as sanitizers are concerned. Right. As far as oven demand is concerned, clearly, see an uptick coming up while retail is still struggling. We one good thing that we see in wholesale has come back quite substantially back, especially in the months of August and more so in September. So that's a pretty good sign so that we see that more distribution is happening. The markets are really opening up. Retail, while it's still traveling, wholesale, we see some positive all the time coming up. So we are doing our work to see how we can get into the larger urban market. So usage of digital media, we have ramped up our usage of digital media, not only for not only for our media strategy, but also to look at how we can tap the urban market, little bit of the urban, let's say, the newer new consumers, the younger consumers, etcetera. So we are also changing a bit of tag there. It's mainly in the EDH or different, but also supports some of the lower brands like EDH or etcetera, which is anti gray hair oil, etcetera. So so that's what we see. So our thinking is that given the festive season coming up and given that government is also making it the best way to open up these markets, we see oven in quarter three to be doing much better than it has been in the last. Right. And lastly, from my side, you know, if I look at staff cost, are, you know, looking at a flattish kind of trend on a first half basis. So is there some variable which is, you know, performance linked, which is not coming through? That is why this flattish trend, and would this trend in employee cost continue for the rest of the year? The employee cost will continue because, you know, what we have done is we have done two things. During the middle of last year, we had done a round of employee rationalization. So those parts still sat on the back of the the number if you look at the P and L of last year. So those are that's that's why you are seeing flattish kind of a bit in this year. We are already factoring. We have actually announced our increment this year that is stable right from April. So that has gone through. And those are all factored in. I mean, those were all provided for in the cost. So there will be no impact obviously on the payment. But that is what you will see. So structurally, not too much changes you will see as far as employee cost is concerned. But a bit of restructuring is happening across the little bit of senior management level. So but in terms of basis points, you'll not see too much. Understood. Thank you. All the best. Thanks, sir. Thank you. The next question is from the line of Sauropat Apatvaan from HDFC Mutual Fund. Please go ahead. Good morning, sir, and thanks for taking my question, I just wondered, sir, have you seen any trend in terms of SKUs in terms of size, like the larger size getting sold more because people would want to come out more frequently? Any similar or any other specific trend that you would want to highlight? Clearly, what we have been seeing, and this is not a quarter phenomena, but for the last three, four quarters, And obviously, actions created in the last two quarters clearly is the movement towards the larger fabs. So even before that, it was a little different as a reason. Before, let's say, just if you take two, three quarters before the lockdown, in fact, the urban demand was far outpacing the rural demand, right, because rural was really struggling. So we saw a gradual shift, at least for our exercises, towards the larger packs. But in the last two quarters, clearly, there has been a movement. For example, if you look at ABHO, that 100, 300, 500 and all, there has been a maybe about a 6% basis point change that has happened from, let's say, the let's say, quarter two of last year versus quarter two of this year. So that is the kind of movement shifts that you are seeing. So clearly, the answer to that is yes, hence, we are also ensuring that we back the scale accordingly. So does this make any impact in the kind of promotional promotional committed planning which you would do? As in the the target audience would be slightly different. Right? Yeah. So so so you obviously, you play that tactically, and, you increase your consumer consumer offers accordingly for the larger packs, etcetera. But notwithstanding the fact that we are also very, very cognizant of what is happening at the lower end. For example, if you see that we have just launched our INR 35,000,000, which is a 20 pack, which clearly was a gap as far as our portfolio is concerned. If you look at, we had a INR 1, we had a 10, and then straight away, we went into the INR 35 with our INR 50,000,000. So there was a clear gap as well as the INR 20 is concerned, which is what we have now just filled up that gap. So we are also cognizant of what is happening at the lower end. But yes, at the top end, the customer base is different, and we have been trying to support that with consumer offering, yes. Understood, sir. Thanks a lot, and all the best. Thank you. The next question is from the line of Persipan Takim from IFL Securities. Go ahead. Jagdeep. Congrats on a good set of numbers in these difficult times. I just wanted some information on your sales breakup. So the overall sales growth is five, but can you tell me what it was for ABHO and what it was for Nomax, please? See, NOMACs continue to decline. Let me start from there. So NOMACs continue to decline. But for the first time, in the last two quarters, at least three quarters, if I can say, ADHO has shown a growth. So that's a good sign. So ADHO is at a 2% growth at this stage, and the secondary of ADHU has grown at 5%. So that's a good thing where we are not building up inventory, but at least there has been a good growth that is coming up. So ADHU has grown. AMLA, obviously, very small base, that's grown. So overall, hair oils have grown at a decent clip, but we have obviously had set that from a new max range clearly. Yes. And sanitizer contribution to overall sales would be how much? Right, sir. I mean, 5% is both AMLA and sanitizer put together, and sanitizer is lower than AMLA. So yeah. Okay. Okay. But AMLA is there in the base also. Right? So why is it a contributor? But but as you can understand, firstly, I mean, last year, Amla was not one of the large focus areas. It's not a large focus area even today. But clearly, have because we have the advantage of the rural distribution through hands. Obviously, So, we wanted to do a bit of rail selling. So that's where we have gone in. As well as we see some of the other markets like in Tigajit, some of these larger AMLA markets where even in the rural large packs sell. So we have also introduced our 300, 500 units. And we see a tactical opportunity as far as the 1 rupee package is concerned. So those three packs have got introduced, Hamla, and hence, you see it. Again, it's a very similar situation as the ecommerce numbers as far as we are concerned. The bases are small, so the numbers look high. But, anyway, we need to see how the future comes up. Sure. Secondly, can you tell me, what were your distributor days as of thirtieth June and what they were as of September 30? Yeah. Actually, I really if you look at the non sanitizer, and I would like to spread out, obviously, sanitizer Yeah. We have some dispute today, so I'll I'll just clearly say that. And that is something we are seeing how we can liquidate that. If you take out the non sanitizer, everything put together, no marks on the entire hair oil category. It is exactly at thirty days because thirty days in June and thirty days now. Understood. And lastly, on ad spend, in this kind of an environment where ad rates are only down and even the intensity, although it has come very close to pre COVID level, there might be some gaps there. In such kind of a situation, there's a 8% ad spend growth. So can you just break it up a little bit, in terms of, is it focused on, Amla more because you're pushing that, or is, the growth in, ADHO itself, the same at around 8%? If you look at, I'll just make a technical correction. It's not only ad growth that you see, it's ASP growth, which is sales promotion as well. And as you will, recall, I mean, there's a large amount of brand selling that we are doing. So a large part of the bank is that's what's in sales promotion. So there's a bit of sales promotion that comes in. Ad expense really remains more or less similar. The other correction I would end this a minor correction is that the ad rates have started going up. It was a low absolutely, you're right, in Q1 that has started going up. This is going to so so there has been an increase in ad rates as such. And third point is we have also been spending on digital. So we have gone into digital. So if you look at absolute to absolute, ad spends have remained more or less similar. So both because sales has remained similar, ad spends as a percentage of sales also remain similar. So growth that you see comes out of sales promotion, which is those WAN operations that we have got in, which itself is returning decent double digit EBITDA for us. Understood. And just one general question on the lockdowns, etcetera, if I might be permitted. So the urban growth is lower than rural growth. I understand that. But although there have been local lockdowns now, it is nowhere similar to the initial lockdown we had. And I don't think there's any shortage of goods in the supply chain or availability at a retail front. That is my perception. I don't know if I'm wrong. So is it really true to say that urban growth has been affected by lockdown? Or is it just that there is a demand erosion in urban which is showing through in the numbers? I think both if you ask me. I really will not be able to comment absolutely whether there is a demand erosion or not because that is something that you will have to give one or two more quarters to see whether there is a structural change in the market dynamics with customer. That's a really large statement to me. I mean, we can all speculate, but that's a little difficult. But at this stage, clearly, what you're saying is correct. Urban demand is definitely on the upswing. September clearly showed even better than what we saw even July, August and April to June, and you were the disaster. And the other side is if you look at internally, from our perspective, we have been also very, very rural focused till August, if I were to be specific, not even July. Till August, we are very rural specific both in terms of the way we approach the market, the way we approach our TV spends, which we have tweaked to ensure that we get higher GRPs in the rural markets of UPBR, Rajarthan, Rajasthan, all of these markets. So obviously, we have performed much better than what we see as far as the market difference is concerned between urban and fuel. The other side to look at it is maybe there is four more scope for us in the urban markets because if rural has gone so much and other not that much, maybe there is scope for urban markets, which is where maybe we'll focus, which is where we have shifted our focus from September onwards where we are also spending some there as well. Right, sir. That's all. Thanks and all the best. Thank you, sir. Thank you. The next question is from the line of Shalini Gupta from Quantum Securities. Please go ahead. Yeah. Good morning, sir. I just want to I had a couple of questions. See, you know, our raw material prices, basically, your mustard oil prices have started moving up. So have you taken any kind of price increase during the quarter? So in this see, at this moment, if you look at, the LLP prices have not LLP prices are clearly going up. And so the prices have gone up from, I think, 57. Just give me the numbers. One second. Give me one minute. So the LEP prices have gone up from 50.79, which we have reported in the investor presentation. At this moment, is sitting at 52, right? So so you are right, absolutely, Then and so as RMO, RMO prices is now at about 108 from where it was in q two. But at this stage, given the market demand, etcetera, we would rather tweak with the other components of the expense numbers. So more on the old edge that we will be looking at whether to tweak to ensure that we protect our EBITDA margins, not really looking at an increase in prices. At this moment, we would rather wait for the demand to come back rather than look at it. As you are aware, only one third of our cost is raw material cost. So that has a one third impact as far as gross margins are concerned accordingly. So every 3% increase to the material cost has a 1% impact on the EBITDA margin. So we would rather wait rather than jump so quickly to a decision making. And RMO and RMO and LLP are not the only contributors. The two put together, the increase, let's say, the average increase is 4% in these put together, the total RMC plus BMC that is the material cost increase will be about 2%. So anyway, that will be half. So if you look at, that is a 1.6 impact on the EBITDA margin, I said. So we would rather not so hurry so fast. And we'll also monitor the market. We'll see what the other bigger players are doing and accordingly, we have. Yeah. Yes, sir. Sir, and then I correct me if I'm wrong. You said that the focus for Bajaj consumer will be on the larger pack. But, actually, I mean, the the consumer is is more and more value seeking now. So would you not want to focus on the smaller pack? Because that is what the the average consumer wants. Interesting question, Challin. So so the point is the consumer is value seeking. They're not looking for a lower value pack. Value seeking is more value for money, whereby you're looking for higher ml per rupee spent. So that's where the clear shift is happening. The shift is happening according to me for two reasons. So one is obviously they are value seeking, so they are looking for larger packs which give us the larger ML for the pack size that is there. The other is obviously for the COVID situation itself, where you would make lesser trips to the marketplace. Not everything is bought online. So when you're physically going to the shops, would want to buy a bigger pack so that you have to make fewer trips to the market. So obviously, we see that trend happening, and hence, we have been tactically looking at that. But we as you rightly said, it's also and I just touched upon the initial listing itself. But we are also very, very cognizant of what is happening at the lower end. So that 1 rupee pack is already there. So then you have the 10 rupee, which is not really a large selling SKU. The 20 rupee is coming out from Nielsen as one of the large categories itself. 20 rupee is the highest growing category as well as payroll purchase is concerned. That's why we have also introduced also because of the fact that there was a large gap between the ten and thirty five. So that is something that is very clearly in the focus. Just because the fact that contribution of these larger factor going up doesn't mean that we have lost focus. For us, ADHO is bread and butter. So we look at all the SKUs. I mean, we do all the cuts at all levels, whether it be that state level, whether it be the channel level, retail retail hotel, sub, at the channel level, retail level as well as the SKU level. We do all the cuts and look at where we are, going wrong or what corrections need to be done, and we keep reacting accordingly. Yeah. Okay. I think, like, at one point of time, not too far back, used to grow at eight, ten, 12%. So, I mean, do we see that kind of growth returning this quarter? We have done well. As in that, we have grown, I think, by 2% of. So, I mean, do you see this in the third quarter and fourth quarter? Do you see good earnings? There are three factors, if I would say, as to how ADHF can go. One is how we can gain market share. Right? So so gaining market share within the category itself, where you have a 60 plus market share, if you categorize something within codes are light variable category, which, from last year, we have stopped calling ourselves as a light oil, air oil, air. So if you if you do not have a larger share and if you reach a sixty, sixty five, that kind of a market share, it's really, really difficult to really keep on growing market share. So the only other two ways is you gain share from other category or you basically grow the market itself. I mean, you grow that market itself within the some market, so to say. So these are the two things that ADH keep pushing. So ADHO, as you are aware, we have just restaged. So a lot of advertising, the new advertising has just been short impacted on the short yesterday. So it will be coming up coming up in the next two, three two, three weeks. On TV, you'll be able to see. So so and plus integrated marketing, as I talked about. So a lot of things we are anyway doing. So as far as aviation is concerned, we are doing whatever is possible. But we will also be looking at our other core hair oil portfolio, our hair oil portfolio and looking at other brands as well. So it will not be only ADHU, while obviously all our entire trust effort, etcetera, will go on to that ADHU, but we'll also be keeping a watch on the other portfolio. Okay. And sir, last question from my end. So like modern trade, obviously, has declined for everybody. So I mean, quarter, that is first quarter, you had put out a figure that is declined by 23%. So, sir and I think in that, we do not want to go into into supermarket because of the air conditioning and whatever else. So would you say that the decline is similar in the in 2020% upward? In fact, if you look at it, if you do a simple math and you look at where ecommerce is part of that alternate trade, and if ecommerce itself has grown by 300%, that four times, so obviously, modern fleet would have grown lower. I mean, obviously, there's a few key component as well. Both of them have had growth, which are I mean, declines, which are higher than the numbers that is reported for Gen three. That's pretty obvious. So clearly, that's the area where, the country is struggling as far as the news and numbers are concerned. I mean, the numbers are lower as well as we have also not done any better than the market. The only good solace is that we have not done worse than what the news and numbers coming out of. But that in itself is not good enough. We need to do our own effort to ensure that we do I mean, if the our market shares are too low. We are speaking. We should not worry about what news and good numbers are. There's enough and more for us to be done. So that's what we should focus on. So modern trade for you would be what percentage of sales, sir? Harini, can you come back in the queue, please? Yes, sir. Okay. Thank you. Thank you. The next question is from the line of Dejesh Shah from Spark Capital. Please go ahead. Good morning, sir. Thanks for the opportunity. Sir, first question pertains to your opening commentary about rural recovery. And in fact, across categories, across industries also, are hearing the same. But now when we look at the numbers in auto and in NBFC's recovery or even microfinance, the numbers are very soft from rural recovery perspective. But even after calling out all the factors of Rural Recovery, our numbers are in general FMCG also, Herald, in particular, the recovery has not been sharp. So any insights on here? See, I don't know how you see those numbers. So obviously, we I can only speak for what we see in our heroic industry and related consumer goods industry. So because all markets, all different segments operate very, very differently. The figures for them are very, very different. As far as our markets are concerned, clearly, we see as I was saying, we see also Arvon coming back. I mean, earlier the growth rates in Arvon was in double digits. Now it is coming back, coming back, and it's really slowly hitting, close to normal. Right? I mean, a normal as in database. So that's where I can go back from. But from our own perspective, as we were saying, because we were so user focused, etcetera, our growth rate user has been spectacular compared to our bank. So we have to go much higher than the numbers that we are seeing as the news and reports are concerned. So rural has really been the star for us. Urban more or less is where we are, very similar to what numbers we are seeing as well to trend. Okay. But sir, that comparison is on Relative basis to urban. But if you, let's say, compare rural two years back or three years back when it was relatively doing better, are you seeing traction versus those let's say, you index it to a particular point two years back, are you seeing recovery versus that point as well? Or is it largely urban and rural comparison is actually leading us to believe rural recovery? No. See, now see, for our say, if I look at specifically for are you talking of our business or are you talking about No, no. Your business, sir. Your business. If you look at our business, as I said, I mean, urban used to be higher than rural, as you are aware. I mean, urban was 55%, rural was about 44 45%. I mean, that's how or maybe 47, 48 to 52 kind of a thing. Now that numbers have got reversed for us at this stage, and that is for both seasons. One is the rural markets. I mean, I don't want to get into that because we have heard that enough, which is rural markets are far more open, etcetera, etcetera. So so that's all. The other is we have taken a specific drive to drive with the rural for the last four, five months. So SQ is introduced, all the RAN operations plus other all the trade, etcetera, that whatever we have done. So Google clearly is something that we wanted to in another tactical opportunity that opened up for us, we wanted to take advantage of it. And a lot of learnings have come up from those markets where we will continue to continue the drive forward. Now coming back from September onwards, we have realized that urban is also coming back. We need to focus back on urban. So a bit of shift has happened towards urban, and now we are focusing on urban. My thought is that now you will see rural growth maybe tempering or remaining there, if I if we can. I mean, are stellar growth. I don't know whether we can remain at those levels, but, we will obviously attempt to. But clearly, urban growth is something that we'll focus on and I hope in Q3, we should be reporting good numbers as far as Alban is concerned. Great, sir. So just last question from my side. So this is now this September, we completed ninth year of acquiring Uptown leasing, which was supposed to be our head office or we are supposed to consolidate our different offices in one place. Now that's INR140 crores or INR150 crores of non growth capital sitting on our balance sheet for now, a long period. And even now, I believe there is no visibility of next two, three years. So any comment on that? How do we see? Because even group's aspiration in terms of because we had a plan to consolidate group entities also in that office. So group aspirations also would have changed in the last nine years. So any comment on that? And continuity on that point, how should we see now dividend policy considering that half year has gone by and there is much more better visibility on in terms of cash flow generation and crisis ahead and pertaining to pandemic particularly? So interesting point, yes. One question, but clearly two questions completely different. So let me handle one at a time. So start with our, Optown investments. Optown investment, as you are aware I mean, you have covered that in a complete detail as to why it was done, etcetera, etcetera. So I have nothing further to add on to that. But clearly, as years go by and as market dynamics and the situation changes, you will also keep reviewing, etcetera. So at this stage, the thought process of exactly what you said, three main. So up down investment is there. We have been getting our licenses, etcetera, but the kind of pace that we have put up to set up the building and do all the investment, get our licenses, we have slowed down because of the current situations, etcetera. So at this moment, immediately, if you ask for the next one or two years, whether some big amount of construction, etcetera, going, etcetera, I think that is unlikely. So but really speaking, it's not in my the thing immediately to to take a call on that because we'll keep seeing as things improve, and we'll take a call on that. So at this moment, it is at status quo. Unlikely that it will change in the next few quarters immediate future, but going forward midterm, etcetera, I am really not able to speak at this moment. So what will happen after a year, whether we'll get fast scale into construction or not, really speaking at this moment. But in the next two, three quarters, unlikely any movement will happen. Now coming to the dividend policy, etcetera, we have gone through that in detail as to how we have taken the dividend policy. So this policy that we have discussed that this was an aberration year, and it is not something that we'll continue to follow year on year. That stance remains. While it is the board's call to decide as to what the dividend policy is, lot of the points that all of you guys had said, we have I have put it in front of the board, etcetera. They have taken cognizance of your points, and this is something that we hope will get corrected in time to come. So really speaking, nothing to worry about on that. Thanks. Thanks a lot. Thanks, Prajsh. Thank you. The next question is from the line of Amit Doshi from Care PMS. Please go ahead. Yes. Thank you. Sir, on the VSTAR strategy, of course, we had because of COVID, had put on hold and our original target or vision of doubling our market share from 10% to 20 rather than only light heroin to the heroin. So what is the kind of with this clarity that you have now, any thoughts on that point? Because I think last quarter, had mentioned that it's currently put on hold. We'll see how things pan out. So I'll correct myself once again. I realized that my communication, I think it was my, maybe, shortcoming that my communication did not come out well in the last quarter. I actually did not mean that it has been put on hold. What I tried to say is that that at this moment, all the aspects of Vistra's strategy, which was a three sixty approach towards all markets, etcetera, that had been put on hold, and we were reacting based on what all is required for the marketplace, technically. So that strategy continues. And as the quarter is is stopped, etcetera. Lot of the things that has come out of the strategy as well as our own internal understanding, we have actually been proliferating across markets. As I had said, last time itself, by March, we had completed all our Hindi speaking markets wherever are of interest. Those markets we have already got a full fledged strategy as to what to do, how to do, etcetera. Now all of it is getting implemented and something more as we understand the market as the market dynamics are changing. Obviously, at that time, we will focus, etcetera, not that strong. Those are also we are incorporating that. So that part of that strategy is very much there with us, and we are implementing part of it as well I mean, part and all of it as as in when we as in how we deal with it as well as we're adding on to whatever our knowledge and experience over the last six months have been or adding on to it and making a company. And that is something that we'll keep going on. The focus on Heroes, whether we get into some other portfolio or not, it was a great point. Because the absolute focus on ADHO and then some of the heroics, etcetera, is not something that is going to go. 20% or not, we'll have to see how the market pans out. I mean, you will have aspiration, visions, etcetera, all of that. But really our job is to ensure we have our strategies right and ensure operational excellence to an absolute as best as we can put it. I mean, that is the clear focus. And as I said, the clear focus has to be that we need to get our value growth back. That is something that we tend to strive for. Okay, okay. On the ad spend, why, of course, June, the Q1 quarter, of course, had a very reduced expense and now it has increased. However, we have been able to maintain margins. And I remember that in the original strategy, which we just discussed, Vishal, that you were ready to compromise on the margin by increasing the ad spend, etcetera. So what's your thought of trajectory towards our margin and our ad spend? So if you can give some guidance on that. Obviously, we will I'll not be able to give you guidance on that. But clearly speaking, if you look at ad spend as something that is something that is not going to be compromised. That is the last cost item that will get compromised. So we'll look at our immediate cost. We'll look at the admin expenses, operating expenses of, let's say, employee cost, etcetera, all other costs. Even sales and sales promotion cost. Ad spend is the last cost that we will cut because that's the easiest to cut, but the impact of it is long term. That is not something that we would like to touch. So ad and sales promotion, which remains at 18%, remains bearable. In fact, going forward, in case in future, if you were to look at something else going forward, it might go up, by a few percentage points. I mean, few 100 basis points going forward later. But that obviously needs to ensure that we also have a top line growth commensurating against that. So if you look at if I had to just finish that, if you look at the strategy going forward much later, and this is not a guidance, just a thing. We would look at ensuring that our EBITDA continues to grow, not as a percentage, but definitely as an absolute. I mean, that is clear focus. So that is something that we would want to do. And, obviously, that would mean that the top line should go and directly go if you have to grow your EBITDA, absolutely, and the cost goes up. Yes. Right. Right. No. My point was only that one because initially 18% to 22% spend target was there and the cost of EBITDA margin rate, that was what was indicated. Anyway, I got the answer. Last question is what I understand about the sanitizer business, you're not kind of focusing on because of crowded market or margins, etcetera. Any particular reason with Amla oil? I mean, why is that? You mentioned in your initial participant response that Amla is not the focus area. I mean, specific thing that you would want to highlight considering that now you want to move from light hair oil to a hair oil company, I mean, especially in that area? I am sorry, that must be again my miscommunication or my tendency to say things which are not represented correctly by me itself. So I did not mean that AMLA is not a focus area. What I meant was, APHO will remain our absolute focus area, but we will also be strengthening some part of our other portfolios. At this stage, as we go forward in the next one or two quarters, it will be the heroic space that we'll continue to work on and some of the other brands will also come into play. Yes. Sorry. So please ignore that other part if I meant that Amla will not be a focus. So all the products other than ADHO, where we feel we have some rights to win of some kind, we will continue to play on things as well. Okay. Okay. Okay. Okay. Thank you so much. I wish you all the very best. Thank you. Thank you. The next question is from the line of Krishna Nathpal from Latin Manalal Securities. Please go ahead. Hi, sir. Great numbers. So I have one question. Is that, what are your views on, any M and A which might take place because of the cash which we have? See, M Krishna, I mean, that's a important question. I mean and this is something that we take it pretty seriously. But in my view, there are two sides to the M and A which I personally look at. One is look at domestic M and A, which is within the country. If this says, at least in my mind, whatever history shows, most of the consumer goods company, whichever M and A have been done at the valuations that they have been acquired, really speaking of money there to be made after that. It's how I personally see it, and I may be absolutely wrong, but that's how I personally see it. So m and a's within India, valuations look too high. So this is something that we will read cautiously and tactically. Opportunities arise definitely, yes. But outside the country, we look at specific topics, and I don't want to get into which topic. If opportunities are there, this is something that we would be interested in. But at this stage, if you look at specifically this year, this financial year, our focus will be need to get our house even stronger in order and going forward maybe next year onwards, that is also a market. The international market is something that we might be wanting to focus on. But at this stage, I'm not giving any guidance on that nor are we saying it as a part of our strategy. The next question is from the line of Suresh Pardeshi from Centrum Broking. Please go ahead. David. Congratulations for a good setting. I think I've got three questions. The first question is purely on the channels. And as I say that you mentioned that modern trade has not come up to the expectation. Is there anything you can call out? Any specific geography you are facing this issue? I mean, what we understand, Maharashtra has the biggest lockdown which has continued. So any any particular thing which you would like to highlight? Modern trade, I think two, three factors. So clearly, the metro cities have really chunked for us. So Bombay, Delhi, so larger cities are really not done well for us. So that's clearly the indication that is coming out. The other thing that we see is not specifically geographically. I don't think it is much of a geography issue, But this larger city is clearly one issue. The second thing that we see is one of the larger chains, although it really had liquidity issues and where we were had a large exposure. So as far as trade is concerned, it's more a concern, obviously. But that has obviously, which was setting on our dates, it's not come back this year. So so that also has had an impact on our business. But other than that, more or less, I don't see fundamentally we have anything wrong as far as the business is concerned. That is something that we hope in quarter three, quarter four will revise and our focus also remains in that area. If I may ask specifically how much exposure or contribution we had from future group across would rather not get Okay. You you touched upon the wholesale recovery. Were you able to quantify a little more where we see tier three, tier four, what kind of contribution the wholesale is now come back, and what is the future you're looking in wholesale? Wholesale, in fact, in the quarter actually was flat. So as I said, other markets were down, but wholesale has been flat in the year. So that's a in the quarter, sorry. And this is against July, which was negative. So so that's a good sign that wholesale is now coming back. And clearly, it's where we still have some more work to do. So that is what's the whole service. Sorry. You had another question on that a side question on that. No. What I was asking, that what is the wholesale contribution is now settling? See, would rather not get into the exact numbers. As I said, urban to rural divide is what I'm just at this moment, I can share with you, which is 44% to 56 52% to 48% from earlier said, as from 56% urban, and 44% rural, it has now moved to 48% urban and 62% rural. That's what it has been. Okay. And as you can understand, wholesale has been done a little better than rural market. I think I'll leave it at that at this stage. Okay. And just related on the international front, you have shown a significant growth. Is there anything that you would like to call out saying that are we expanding the footprint or in the similar geographies we are seeing the growth? What could be the reason of growth? So the growth numbers, again, these are all so low basis. Really speaking, I would not get too hung up on the growth numbers itself. These are more one thing that we have done is we are obviously practically see, one and first and foremost, we are not increasing our footprint as far as international markets are concerned. As I said earlier, international market is not one of our large focus areas in this year. But operationally, obviously, we would like to tighten every single area that we operate in. So obviously, some basic work has been happening in each of the markets that we operate in, which is UAE, Bangladesh, Nepal and rest of world is separating. So some bit of growth that you see, but the business of solo really speaking nothing to talk about. Maybe going forward, we'll see what to do in these markets. Okay. Just last question on Amla. I think you have found that Come back in the line. No. Let me finish this question. Yeah. Can you start question? You can go ahead. Amla, you want to yeah. Yeah. So in case of Amla, you have seen that we have restaged the focus. So is it that we'll expand our our franchise and footprint as one of our stronger markets of ADHO, like, so UP, DHR, Rajasthan? Is that the strategy which you are banking on from the distribution point of view, or you're really trying to expand the value for many down trading which is happening in the market? Not really. I mean, see, Amla, all all all products, you'll treat it based on the product itself. So Amla, specifically, if you look at, I mean, all this data is available somewhere at least with us. For example, if you look at the recent data for the market itself, the 1,600 core market, where the main markets are, I mean, are those seven, markets. Fortunately for us, the it is the same market where we are stronger. So that has the advantage for us. It's not the South or Eastern part of the country where online is very, very strong. So so most of the markets other than maybe Maharashtra, we have a good presence with that. And the fact that it is also a rural driven brand other than Dabur Amla, which is obviously more urban. Most of Dabur Amla is all rural based, which is where we are focused on. So tactically, it has been an advantage for us, and, technically, we can clearly there is some space for us to play. So that's why we continue to see how it moves. Alright. Thank you, and all the best. Thanks, Harish. Thank you. The next question is from the line of Dixit Doshi from Whitestone Financial Advisors. Please go ahead. Yeah. Thanks for the opportunity. Most of the questions have been answered. Just two small questions. One is this growth numbers of 5% and in q two and six percent negative in h one. These are value. Can you just give us the volume numbers for Q2 and H1? And my second question is, obviously, you mentioned that we are going slow on the sanitizer market. But apart from sanitizer, are we planning any new products other than the oil category? Yes. So so as far as the volume growth is concerned, it's actually same as the value growth. It is at 5%, I think. So from this year, we have started calculating the volume numbers in kiloliters because earlier we used to report that in cases. So we are also looking at numbers as well. Kiloliters is concerned and basically, liters is concerned. So that's absolutely at the same level as the value growth value growth, which is at 5%. And if that answers the question. Hello? Yeah. As far as the new products are concerned Yeah. If you look at at this moment, in the next two quarters, you will not see any new products coming out. It's more of focus on the brands that we have. So as you are aware, anti gray hair oil was launched two quarters back. That is something that we will focus on the digital, the thing. Online is obviously a range that we have started doing a bit of focus on and as well as ADH will remain key focus. So we really don't want to dilute too much before we have our strategy as to where we want to go, and that is not something that you will see in the next two quarters at least. So this is where our main focus will be at this moment. So nothing on the card other than the oil. Correct? Is that the understanding then? Not in the next one or two quarters, ma'am. Okay. Okay. That's it from my end. Thank you. Thank you. The next question is from the line of Omang Shah from Asian Market Securities. Please go ahead. Hi, sir. Thank you for taking my question. Sir, could you tell me historically what is it that stops us from breaking into the South Indian market? There is nothing that stops us from breaking into the South Indian market. It's mainly as you are aware of the nature of the market itself and the nature of the products that we sell. Now our portfolio is, as you are aware, over 90% of it comes from almond broth air oil. And PADAM as a product does not really sink in the southern market itself. So it doesn't have too much of salience as the Southern markets are concerned, which is obviously a large coconut market. As well as even if you have some of the Latinos, which is the value added coconut, it's more or less restricted to that. Having said that, yes, there have been because of our rural drive and some of our efforts as well, we have been looking at the South, and let's see how the future pans out. At this moment, I would rather keep that open, and let's see how the market pans out. At this moment, we are not focused. Till now, we are not focused on South, mainly because almond drop is not something that has enlarged savings. But almond itself doesn't have much savings in the side. That's the reason we have not got it. Right, sir. You're very helpful, sir. Sir, the second question is, sir, the CLG trouble started, I think, with the name change. And after that, our sales have never really recovered there. This also coincided with them reducing their own procurement overall. So going forward, do we see the sales coming back to the previous level or for us, PLC is no longer the plate at which it was earlier? See, if you look at the main change that happened and after that, we actually lost sales in last quarter last year, last quarter first quarter. Right? I mean, that's where the sale has actually gone out. So if you look at h one if you look at not the quarter, but h one. Quarter, again, we declined. Yes. You are absolutely right. But if you look at half year, the CFP numbers are flat. It's actually flat because first quarter, because there was a low base near zero base, we had grown on that. But having said that, one of the key things that we need to do as far as CST is concerned is monitor our own accounts a little better. I think that is something that we can clearly do much better on. And going forward, I think we need to do a little bit more focus on PSG. PSG is not something that can be, that will go away while because of the regulations, etcetera, PSG demand has come down. I think there is a lot of work that we need to do from our end, which is something that we would want to focus on. So I don't know when we'll be able to do that, but that is something that we need to come back to. I mean, that's not a channel we we can ignore or would want to ignore. Right, sir. And this is small part. What was the peak level of CSV that you're doing? And can we reach there in percentage of sales? I really don't know. Percentage of see, these are very speculative questions because in terms of absolute numbers, if you want to reach, I mean, the percentage will depend upon how you are doing in general trade, modern trade, ecommerce, etcetera. Absolute number is fine. Like, any any absolute number also, if you give us sliding crores, what is the same that you could be mentioned? So, yeah, at this moment, I if you ask me, I don't think we have got that kind of a clear strategy as far as the CFT is concerned, which can tell you that clearly these are the numbers that we can reach out. I mean, clearly, this is something that is work in progress, and maybe by the next quarter, we'll have a little more story to tell on the GST. But at this moment, I am not able to say so. Sure, sir. Thank you so much. Welcome. Thank you. The next question is from the line of VP Rajesh from Bankin Capital. Please go ahead. Yeah. Hi. Thanks for the opportunity. Most of my questions have been answered. Just one question. The revenue this quarter and the year over year. Mister Rajesh, your voice is breaking up. Can you speak a little closer to the device, please? Yeah. Is it better now? Yes, sir. Yes. Okay. My question is just trying to understand the revenues from Nomar in this particular quarter, and what was the decline year over year? Nomar has declined, and the decline has been about 30% as well as the business is about 30%. Okay. And what was the revenue this quarter? I mean, let's keep it at that. It's about 30%, and the revenues are not very substantial. So it's Okay. Marginal revenue. But what I was trying to understand is if you exclude Nomax and exclude sanitizer, what would have been the decline year over year? That's really what I'm trying to get at or or growth. So so if you take out the sanitizers from this quarter and if you take out no marks from this quarter, is the year over year growth or decline, whatever it was? There'll be a marginal growth. Your margin growth. Okay. That's helpful. Thank you. No problem. Thank you. That's all. The next question is from the line of Sunil Jain from Nirmal Bank Securities. Please go ahead. Yeah. Thank you very much to allow me to ask questions. I would like to know exactly how much is the contribution of new product or new SKUs in this quarter or maybe half year? And is there any strategy to push for new type of sales like, new product or niche, new SKU thing? Yeah. As far as the as far as the new SKUs, there are no new products which were introduced. As far as the new SKUs are concerned, the savings of these are marginal. So you'll be speaking. I mean, we have just been launching them. I mean, in September, in August, actually, 100 ml, 500 ml of AMLA came into being the the the 35 ml, which is a 20 rupee pack also came into being in the forward. So really speaking, the numbers at this stage are marginal. So we'll have to see how it the numbers pan out in Q3. And second question about this new mark. No doubt, our sales are declining, and we are not focused. But the way it is declining, it may it looks like we may not have this branding over a period of time. There is really we will spend a lot of money on that, and this can be this is from there there in the market. So don't you think you need to support a bit in this to this brand, at least for to maintain the sales so whenever the opportunity come, you can increase it? Absolutely. Absolutely correct. So so while I mean, absolutely right. I mean, while in terms of our effort and direction, ADH will remain a key focus area, some of the other areas as well. We are looking at Lumox more as a experimental thing as to what we want to do about it and where at a little lower cost if we can come back in some other way. So we are internally trying out certain things at this moment. I don't want to talk about it because there is not much to say at this stage. But hopefully, some of the experiments, we'll see how they pan out and maybe by the next quarter, we'll be able to say something if at all it works. Okay. Great, sir. Thank you very much and all the best for the future. Thank you. The next question is from the line of Harit Kapoor from Investec. Please go ahead. Yes. Hi, good afternoon. So just had one Key question on the 20 pack that you spoke about, that Nielsen is saying is going the fastest in the head on segment. So in your opinion, you know, is this to do with the fact that Rural is growing faster than Urban, which is probably the only, you know, relevant reason why it's growing so fast? And, also the second thing on that is, you know, if if this continues to, you know, be a faster growing SKU, you know, how how does that impact mix and profitability for the site? Profitability will not get really impacted. So really speaking, if you look at the entire ADSO portfolio, the the gross margins remain between 62%, 63%, right up to 72% or so. So more or less it plays between that and the average of 65, 63%. These are the kind of numbers that you make. So really speaking, too much worry as far as gross margins are concerned. But the fact that you said, yes, is it for the rural market, etcetera? Yes, rural market uptake clearly is backing this product. So at this stage, rupee package is going well in the rural market, I mean, very initial signs for. And going forward, as I said earlier, I mean, clearly, that was a gap in our portfolio itself. So whether 20 and 20 rupee would have come up from Nielsen as a gap or not, as a fastest growing market or not, we would have anyway launched this 20 rupee because there was a gap there, and we don't want an ADH or any gaps to be there. So this was something that was anyway in research. It's just hitting the launch because we thought this is a market which is going. It. Thank you for this. Thanks and all the rest. Yes. Thank you. The next question is from the line of Sarvesh Gupta from Maximal Capital. Please go ahead. Thanks, sir, for taking my question and congratulations on a decent set of results. So so first of all, you know, also like to thank you that this is probably the first time in the quarter where we've seen the conference call invite being posted on the BSE website. I hope these small, small incremental positive changes keep happening as you have taken over the company? Secondly, you know, on the dividend side, I could not understand. You said that this was an aberration. The last year was an aberration. So does it mean that, you know, from this financial year onwards, we will continue on the dividend policy that we had FY 'nineteen and before that? As I said, again, more than an aberration, was an exception for exceptional year. And while I will not be able to give guidance on the division itself because that's not a call that I take, that's about call that the board takes. But I would like to assume and think that that should not keep changing year on year. This was the exception in year, and I would like to think that this was an exception. Yes. Okay. Secondly, now these days, we are seeing a lot of online only brands as well as, you know, even in the hair oil segment, you see plenty of new players trying to sort of enter into this area, especially at the premium end of the range because now they are able to kind of bypass the traditional list distribution route and sell their products via online only medium. So given that, you know, how do you look at this threat to us? Because there are a lot of healthy or premium sort of options which are available to the customers now, and they are also, you know, digitally advertising their brands and, you know, promoting it very heavily on some of the, you know, Amazons of the world, etcetera. So how do you see this threat and what is going to be your strategy to kind of, save the company or save our our own brand from the potential fall in sales because of this? Yes. I don't see it as a threat. I rather see it as an opportunity because if you look at the price points are so different. I mean, we are looking at hair care products, which was 1,000 for 30 ml. So I really don't see how whatever else we could do in ADHO, how that customer is the same customer. We are seeing this is now talking of growing the market and basically hair care being the larger format rather than hair oils as such. So the chances of losing to these customers, yes, obviously, there'll be some lesser and some gainers from various areas. So really speaking, it's not a large set that we are really worried about that we will lose EDHO sales to a significant amount or even some percentage points. I do not see that happening. We'll keep monitoring this phase, obviously. But I I see this as an opportunity, and this is something that many companies would want to jump into the bandwagon. As traditional as a PCB company, most of us are not that well equipped to handle this kind of changing consumer behavior, the way you reach to the consumer, etcetera, and that is something that whoever turns out the best will be the gainer, and that is something that we have to keep focusing on. Understood, sir. All the way alternate channel itself, to do with your traditional. I mean, we don't see it is going to go away very soon. So really speaking, not worried about the traditional channel. Traditional business, traditional channel, traditional. Okay. Thank you, sir, and all the best for the coming quarters. Thank you. The next question is from the line of Imran Khan from Raghmatria Capital. Please go ahead. Hi. Thanks for the opportunity. Am I audible? Yes. I'm done. You are. Sure. Sir, just one question. And this is maybe more on the brand side, not the, you know, operations and other things. Since we are also selling the other head oils like like, etcetera. So do you think that, I mean, this can have an impact a negative impact on our brand equity? And, you know, hence, for some people some, like, this are percentage of the customers may say now that this is also now, you know, an umbrella brand. So maybe I'll switch to some other premium, you know, hair oil or or some percentage would say key. Why Dubai, you know, the almond drop now? Let's buy the cheaper one, Alma Alma. So so do you think that this can also happen? And and do you do you see any signs of this happening because we are already selling it? You're actually able do three three things. One is the company, one is the brand, and the other is the category. So three things, jumbled up in one question, and you have to ask as a consumer what do you look for? Do you look for the brand? Do you look for the company? And do you look for the category? Actually, you look for all three. And there is a clearly, intermixed between the three of them. In this particular case, almond drops steroids clearly is a category leader. I mean, are brands which are available in almond, meat mover or whichever way you'd like to say that at nearly half the price at 60% of price. ABH was still in still remains strong. That should tell us as far as the category is concerned, how we stand. As far as the company is concerned, really speaking, I'm not worried about how because we are not getting into something which is really, really cheap or really something completely different. I am not very sure almond oil users really will shift to an Amla oil because the company, which was the parent company, launched that particular product. These products are always there. If you look at Rami Amla, they're all about that. Shyam was famous for the earlier days. Right? So so brands get very not really companies. I mean, are always associated with brands. But in this particular case, brands actually have the same. In many, many consumer goods, you will know the brand rather than even the company. So really, we do not be worried about almond drop customers downgrading to almond drop. Yes. Some of it will get downgraded. Some of it will be lesser. Some of it will be gainers from some other categories. At the end of it, if one plus one turns out to be three, that's good. And, sir, what about the other part? And let's say if if, you know, somebody says the now the charge is also in Ahlala, so why not buy some other premium that can can this can this happen? No. Sorry. Come again? Can you can you repeat that question, please? So, sir, my question is since right now, we've got only or large part of the focus was on ADHO. Right? And if we start advertising, let's say, more AMLA also. Right? If people some customer may feel that this is a cheaper, you know, hair oil or this is not a premium hair oil. So those premium customers may feel like that why let's let's move on to some other premium, you know, payroll. I I am not able to understand that. Most companies will have absolute absolute ultra premium range and right to the absolute economy value for money range. I mean, in fact, most companies will have three, four, five categories within 10 product categories. Really speaking, I don't see how brand interplay happens for a single company. Alright. I will not worry. Where a premium customer because Bajaja will introduce something else close to that. Unlikely. I mean, or the value of the company, Victoria, is because it has launched also another value pack. Right. Thank you, sir. Thanks. Thank you. The next question is from the line of Naman Kumar, an individual investor. Please go ahead. Hello. Thank you for the opportunity. My question is with respect to incontinence of upcoming properties, someone asked. So this what I understand is this is some land parcels in Mumbai. Right? So can you please, let me know what is the total size of land parcel, and what could be the latest valuation of that? Mister Malu, can you, respond to this question? Mister Malu, are you there on the line? Yeah. Yeah. Yeah. I'm very much there on the line. I'll go ahead take this. Yeah. So the total SSI is 55,000 square feet available to us for the ring, and market value is around $1.42. Okay. Thank you. And then other thing was and I think it it got discussed earlier as well. Like, the plan is to build a corporate office in which we'll house other Raj Bajaj group as well. I know the plan is more for them coming one year or two year. It may materialize in third year or maybe fourth year. I just wanted to know when other Bajaj group companies come and set up their offices in the building, which will be built. Is there a plan to charge rental from them? And if there is I mean, clearly, will be at a arm's length. I mean, clearly, what usually, you are required to do so. And it will be absolutely at arm's length of market valuations. Yes. Absolutely. Okay. Got it. And then at any point in time, historically, has that analysis been done? How much is the cost involved in building the, like, project and how much is the rental other group companies will begin just to know, like, how much capital will get used and if it if the building gets, built and how much return or how much earnings one can expect from that capital deployment. Yes. So Anu, you want to answer that or I can take that if you want. Yes. So as far as the as far as the internal returns are concerned, as I said, it will be based on the market valuations, etcetera. Really speaking, I don't think there are some massive calculations which have been done as to how much will be the rental return and hence the IRR calculations, etcetera. It was more to build a corporate office, more to build that image, etcetera, for the organization. So really speaking, an IRR calculation from that angle would not have been done. But clearly, can be done. I mean, we can look at the current rentals, etcetera, and try and extrapolate what would happen after three years and what kind of flow space you'll be giving to the various companies, etcetera. I mean, those calculations can be done. Done. But at this stage, it will be theoretical and not being done. Yes, yes. Fair enough. Maybe when the time comes, then we may have more clarity on that. Absolutely. Okay. Thank you very much. Thank you. As there are no further questions, I now hand the conference over to the management for closing comments. So I think thank you, everyone, for an extremely engaging interaction today. It was really it gives us also a lot of introspection possibilities and also scope for us to improve as a as a company because you all have so much of experience across various industries, especially, and whatever you say, we try and factor it in an hour or everything as long as it makes sense for us. So we appreciate your valued advice and feedback, and we'll continue to seek them as we go forward even beyond these conference calls. So from the entire, team of Bajaj consumer, I take this opportunity to wish you and your family a very, very happy festive season. Stay safe, stay healthy. And, while signing off, I wish that the economy and the businesses across the country recovers and revised in the second half of the year. So best of luck to all of you. Best of luck to us and everybody else. Thank you. Thank you. Ladies and gentlemen, on behalf of ICICI Securities Limited, that concludes this conference. Thank you all for joining us, and you may now disconnect your lines.