Allied Blenders and Distillers Limited — Q2 FY26

Allied Blenders and Distillers Ltd Q2 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=eRss1qXF64A Published: 6 months ago

0:01 1 second Ladies and gentlemen, good day and welcome to the Allied Blenders and Distillers Q2 H1FI26 post earnings 0:09 9 seconds conference call hosted by Antex Talk Broking Limited. As a reminder, all participant lines will be in the listen 0:16 16 seconds only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:24 24 seconds you need assistance during this conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note this 0:32 32 seconds conference is being recorded. I now hand the conference over to Mr. Abijit Gundu. Thank you and over to you sir. 0:40 40 seconds Hi. Uh it's our absolute pleasure to host the management of Allied Blenders and Distillers Limited for the second quarter of FI26. Over to Mr. Mukun, head 0:50 50 seconds of investor relations and chief risk officer for further proceedings. Thank you. 0:54 54 seconds Thank you Vij. Good evening everyone and thank you for joining our Q26 results conference call. I hope you have received a copy of our results 1:02 1 minute, 2 seconds presentation. I would like to urge you to go through this along with the disclaimer slides. Today we have with us from the management of ABD Mr. Shika Ramorti executive deputy chairman Mr. 1:12 1 minute, 12 seconds Alu Gupta managing director and Mr. Jant Manmark chief financial officer. Now I would like to hand over the call to our MD Mr. Alu Gupta who will give you the 1:21 1 minute, 21 seconds summary of the company's quarterly performance before we open up for Q&A. Over to you Aluk. 1:27 1 minute, 27 seconds Uh thank you Mun. Good evening ladies and gentlemen. Uh thank you all for joining us today for the quarter 2 and 1:33 1 minute, 33 seconds H1 FI26 earning call of All right Lenders and Distress Limited. I'm pleased to share that this quarter marks 1:40 1 minute, 40 seconds our fifth consecutive quarter of strong performance post listing with consistent improvement in premiumization of our portfolio and margins as well. 1:49 1 minute, 49 seconds The sustained success underscores the effectiveness of our approach which centers around driving profitable growth enhancing our premium product offering 1:58 1 minute, 58 seconds and investing in backward integration to optimize margin and required supply chain security. 2:05 2 minutes, 5 seconds Our consolidated income from the operation was rupees 995 crores in quarter 2 FI26 representing a 14.4% increase in quarter 2 FI245. 2:18 2 minutes, 18 seconds I beta was at rupees 130 crores a 23.6% growth compared to the same period last 2:25 2 minutes, 25 seconds year and with an improved margin of 13.1%. 2:30 2 minutes, 30 seconds On profitability our pack grew by 32.3% to rupees 63 crores. 2:37 2 minutes, 37 seconds In this quarter we sold 9 million cases marking an 8.4% year on year yearon-year 2:43 2 minutes, 43 seconds increase coupled with a 3.8% 8% rise in realization per case driven by an improved product mix and price increases. 2:53 2 minutes, 53 seconds A mass premium category grew at 4.3% in quarter 1 versus quarter 1 FI26 along with gross margin improvement due to 3:02 3 minutes, 2 seconds profitable state brand SKU mix but witness deg growth of 5% versus quarter to FI25 which was primarily due to a 3:11 3 minutes, 11 seconds regulatory intervention at an industry level in the southern state that will have a short-term pipeline impact. We 3:19 3 minutes, 19 seconds expect the industry to come back to normaly within this financial year and especially within quarter C FI26 itself. 3:27 3 minutes, 27 seconds At the industry level, the mass premium whiskey segment witnessed key growth during H1 FI26. However, our flagship 3:35 3 minutes, 35 seconds brand Officer Choice gained incremental market share during the same period indicating continued growth momentum from Q1 FY26. 3:44 3 minutes, 44 seconds Oxy Choice continue to lead the mass premium segment in India holding its position as a top selling brand. It also 3:51 3 minutes, 51 seconds remains country's top exported brand delivering gross margins of over 40%. 3:56 3 minutes, 56 seconds The brand plays crucial role in driving both profitability and cash flow for the business. 4:02 4 minutes, 2 seconds Our prestige and above category maintain the growth momentum with 8.3% versus Q1 FI26 and 28.8% 8% on buy on 4:12 4 minutes, 12 seconds buy volume basis which resulted in improvement in sales of PNA segment to 47.1% 4:20 4 minutes, 20 seconds as compared to 39.7% in Q2 FY25. 4:25 4 minutes, 25 seconds The strong performance of PNA portfolio highlights the continued success of our premiumization strategy and valu-driven approach. 4:36 4 minutes, 36 seconds Iconic White has been a standout performer maintaining its strong market momentum for the second consecutive year. It has been recognized as the fastest growing spirits brand globally. 4:47 4 minutes, 47 seconds The brand has successfully expanded its footprint now available in eight international markets in addition to the 4:54 4 minutes, 54 seconds growing presence across India. Iconic White continued to double its volume organically with 2x growth versus Q2 5:02 5 minutes, 2 seconds FY45 and winning market share from legacy brand and also becoming the brand of choice for the new LDA consumer which means consumers of legal drinking age. 5:14 5 minutes, 14 seconds Coming to our next millennia brand, Sterling is a V7. We recently launched a refreshed blade with enhanced smoothness 5:21 5 minutes, 21 seconds and taste and rolled out a nationwide campaign titled so smooth must be magic. 5:27 5 minutes, 27 seconds We have also done a unique digital collaboration with cricket stars a year for enhanced consumer engagement. 5:34 5 minutes, 34 seconds This initiative has helped in gaining uh consumer traction in some of our critical market. This momentum 5:41 5 minutes, 41 seconds highlights the growing popularity of our brand and reflects increasing consumer interest across various markets. It reinforces AB's commitment to 5:50 5 minutes, 50 seconds innovation, product excellence and deepening consumer engagement. All of which are the key to sustaining our growth and expanding our market share. 5:58 5 minutes, 58 seconds The campaign was effective in reversing degrowth trend in our priority markets and we plan to extend this campaign now nationally. 6:09 6 minutes, 9 seconds Now coming to our super premium to luxury category. 6:13 6 minutes, 13 seconds During the quarter, ABDM brands in the portfolio have continued expanding it presence in addressable markets. During 6:21 6 minutes, 21 seconds the quarter, it has successfully debuted in the judiciary market of Bangalore and Delhi. The brand has garnered global 6:28 6 minutes, 28 seconds recognition securing prestigious award from the concourse Montyal in Brussels and spirits concave and achievers award both in the year 2025. 6:39 6 minutes, 39 seconds Coming to our international markets, ABD's strategic expansion across international market has been impressive with the company increasing its reach 6:48 6 minutes, 48 seconds from 14 to 30 countries within just 18 months. In the current year itself, it has expanded its presence to several more countries across the continent. 6:58 6 minutes, 58 seconds This rapid growth highlight the success of the asset line high margin export uh model which delivers profitability of 7:06 7 minutes, 6 seconds higher than the domestic market and operates with much less working capital per case. 7:12 7 minutes, 12 seconds By FY46 targets to increase its introduction footprint to reach 35 countries. The company remains committed 7:20 7 minutes, 20 seconds to maintaining its market share in the GCC region while continue to expand its distribution to Africa with a goal to reach 1 billion cases by FY28. 7:30 7 minutes, 30 seconds AB is also broadening its presence in Latin America, Europe, South America and the Southeast Asia. Iconic wise, the 7:38 7 minutes, 38 seconds brand's latest million success is now available in eight countries while luxury portfolio brand such as Arouse and Zen have also debuted in the UA market. 7:49 7 minutes, 49 seconds Let me give you an update on our CAS program. In September 2025, we also successfully commissioned uh our green PD manufacturing facility in Napoleanga. 8:02 8 minutes, 2 seconds This facility with a capital investment of approximately rupees 115 cr. The facility is set to produce over 600 8:09 8 minutes, 9 seconds million PE bottles annually. This investment is a key part of our strategy to strengthen background integration by manufacturing PE bottle inhouse which 8:18 8 minutes, 18 seconds will significantly enhance supply chain efficiency, reduce packaging cost and improve overall operation control and also adding to our gross margins. 8:27 8 minutes, 27 seconds Additionally, it supports our margin expansion goals through cost optimization while advancing sustainability effort with energy 8:34 8 minutes, 34 seconds efficient and recyclable packaging solution. Our other capex project namely the single model distillary at Rangabur 8:42 8 minutes, 42 seconds Sangala and ENA distriution capacity expansion orangabad Maharashtra are on track and are expected to be operational 8:50 8 minutes, 50 seconds in Q4 FY26 and Q4 FY27 respectively 8:58 8 minutes, 58 seconds to our balance sheet and cash flow update our H1 FY26 financial performance reflect the strong operational cash flow 9:05 9 minutes, 5 seconds generation and all leverage ratios remain well within our stated guidelines even during the peak capex phase. 9:13 9 minutes, 13 seconds Operating cash flows of rupees 147 crores were generated in H1 F526 due to high profitability and working capital 9:20 9 minutes, 20 seconds discipline. Our net position as on 30th September 2025 was rupees 893 crores 9:28 9 minutes, 28 seconds versus rupees 766 crores on 31st March 2025. The increase in net debt or rupees 9:35 9 minutes, 35 seconds 127 cr is primarily on account of our capex which I have already explained. 9:42 9 minutes, 42 seconds It should also be noticed that the average cost of borrowing has reduced by 140 basis point to 8.2% in H1 FI26 9:51 9 minutes, 51 seconds versus 9.6% in H1 FI25 at the backdrop of two credit rating upgrades. first one 9:58 9 minutes, 58 seconds in October 25 and within nine months in July 26 driven by strong financial performance also in the month of October 10:06 10 minutes, 6 seconds 2025 the processing of long overdue payment has been initiated by the market and ABD along with other industry 10:14 10 minutes, 14 seconds players have received certain payments overall industry views optimistic about 10:20 10 minutes, 20 seconds progressive clearance of remaining dues moving on to the future outlook on the industry front. The Indian algorithm 10:28 10 minutes, 28 seconds industry is witnessing strong growth driven by primization with PNA segment leading the way through portfolio expansion, innovation and group to 10:36 10 minutes, 36 seconds market reforms. Premium and luxury segment including whisies and craft chain are outperforming as consumer increasingly seek high quality products. 10:46 10 minutes, 46 seconds Key growth drivers include regulatory reforms in the state like Andhra Pradesh which has facilitated volume recovery. 10:52 10 minutes, 52 seconds The industry is benefiting from stable raw material environment supporting margin stability while operational efficiency and brand investment continue to enhance profitability. 11:02 11 minutes, 2 seconds However, state level regulatory changes and the rise in local brands in certain regions represent a potential challenge in a couple of states. As we enter the 11:11 11 minutes, 11 seconds second half of the year, we anticipate a positive outlook driven by the festive season in quarter 3 by 26. We continue 11:18 11 minutes, 18 seconds to optimize working capital and ensure timely execution of key strategy projects that are crucial for our long-term growth. Furthermore, we are 11:27 11 minutes, 27 seconds committed to advancing sustainability initiative and investing in R&D. With these efforts, KB set to play key role in India's growing premium consumption 11:35 11 minutes, 35 seconds market and continue to deliver long-term value. Our focus will continue to be on margin by focusing on unit economics uh 11:45 11 minutes, 45 seconds volume growth continue to uh uh uh keep our portfolio customercentric and deploy capital with discipline. Thank you once 11:53 11 minutes, 53 seconds again for your continued interest and support. We now open the floor for questions. 12:00 12 minutes Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touchstone 12:09 12 minutes, 9 seconds telephone. If you wish to remove yourself in the question queue, you may press star and two. Participants are requested to use handsets while asking a 12:18 12 minutes, 18 seconds question. Ladies and gentlemen, we will wait for a moment while the question cue assembles. 12:25 12 minutes, 25 seconds The first question is from the line of Anish Roy from Noama. Please go ahead. 12:32 12 minutes, 32 seconds Yeah, thanks and congrats on good numbers. I have three questions. Uh my first question is on the capeex which 12:38 12 minutes, 38 seconds you have just put up on the uh pet. Uh the questions are what kind of advantage or uh uh gross margins you'll enjoy 12:48 12 minutes, 48 seconds versus a third party pet supplier because that pet supplier can have lot of economies of scale versus much lower 12:55 12 minutes, 55 seconds scale for you. If you could clarify on that bit and is it a common practice for alcob players to put this uh related 13:02 13 minutes, 2 seconds question is in terms of glass uh bottles we understand that uh there is lot of extra capacity uh low utilization for 13:10 13 minutes, 10 seconds the industry. So in the in the glass uh raw material how do you see the coming quarters is that quite favorable for you and the industry? 13:20 13 minutes, 20 seconds Thank you very much for your question. 13:23 13 minutes, 23 seconds uh the pet uh manufacturing largely works on uh producing and shipping 13:30 13 minutes, 30 seconds within a uh within u a short distance and the logistic cost uh can be painful. 13:38 13 minutes, 38 seconds Uh so the arbitrage uh the your first question was on what is the arbitrage? Uh this is investment 13:45 13 minutes, 45 seconds of 115 crores. uh as we have outlined earlier uh this investment will add roughly 30 cr plus to our gross margins 13:54 13 minutes, 54 seconds translating to about 75 basis point let's say on current year volume so that's the impact on our gross margin 14:00 14 minutes and absolute um uh uh aida in terms of the contribution that this unit will 14:07 14 minutes, 7 seconds make secondly on economies of scale uh we do not have any disadvantage on economies of scale because the PT 14:14 14 minutes, 14 seconds manufacturing is not centralized Unlike the glass bottle manufacturing, PD PE manufacturing is fairly decentralized. 14:21 14 minutes, 21 seconds So we have enough scale because they're producing 600 million bottles uh at this facility. Moving on to your question as 14:29 14 minutes, 29 seconds regard glass bottle. Uh we expect glass bottle to stay neutral uh to stable. Uh we do not expect prices to move up. Uh 14:37 14 minutes, 37 seconds as this is a festive season and demand will grow for PNA segment and the luxury segment. The demand for glass bottle in this quarter is likely to be higher than 14:46 14 minutes, 46 seconds H1. So if at all there's an opportunity to reduce the glass prices, it'll offer only in quarter 4. 14:54 14 minutes, 54 seconds Sure. Uh one followup here. So you mentioned that in terms of pet it's more of a smaller radius where the supply 15:01 15 minutes, 1 second makes sense. So will this be more for Telangana and maybe the adjoining state and in the long term would you need to 15:08 15 minutes, 8 seconds put more such uh PT factories in any of the other state in the longer term? 15:14 15 minutes, 14 seconds So by design we've chosen Telangana um because our Telangana consumption is roughly 65% of our total pet 15:22 15 minutes, 22 seconds consumption. So we've gone to the biggest market and you are absolutely spot on uh that this unit will feed Telangana and the adjoining markets of 15:30 15 minutes, 30 seconds Andra and pretty much the entire capacity will get used up in these two states. Uh once we have uh uh once once 15:38 15 minutes, 38 seconds we have uh uh you know started realizing the benefits from this PE plant then perhaps we'll see if there's any other market that can justify scale and volume 15:48 15 minutes, 48 seconds but I think for now we're quite happy with this one unit in the layout. Sure. 15:52 15 minutes, 52 seconds My second quick question is on the super premium luxury top end of the P&A. Uh you are doing a lot of interventions there. Uh I also see almost every other 16:02 16 minutes, 2 seconds player listed unlisted also uh do a lot of stuff there and almost everyone seems to be succeeding. So my question here is 16:09 16 minutes, 9 seconds is this just mostly upgrading from the lower end or is it that there's some market share gain you are seeing because uh we are seeing good numbers from 16:17 16 minutes, 17 seconds almost every player. So uh wanted to understand that a bit more. 16:22 16 minutes, 22 seconds Sure. I think uh there are three or four uh key trends that we need to understand. Uh first is that Indian consumers are now happy consuming, 16:32 16 minutes, 32 seconds serving and gifting Indian brand. And that is a uh that is a trend that you will see across uh the entire FNB and 16:40 16 minutes, 40 seconds many other consumer categories. And therefore consumers are giving Indian brands um as much a chance that they will give to a to a to a to an 16:49 16 minutes, 49 seconds international brand. So that one barrier is removed. There is uh in fact a positive bias for Indian brands. So consumers are happy trying Indian 16:57 16 minutes, 57 seconds brands. Uh the second thing is that launching a brand in the luxury segment 17:03 17 minutes, 3 seconds um is is is required but it also needs continuous flavor um offerings to be 17:10 17 minutes, 10 seconds made to the consumers. Just to give you an example, uh Zoya Gin was our first luxury brand that we launched in January 24. Uh 6 months down the line, we 17:20 17 minutes, 20 seconds followed up the launch with uh Zoya watermelon and Zoya espresso martini. 17:25 17 minutes, 25 seconds Today 30% of the brand volume comes from our flavor extension and the brand is growing almost 4x uh since April this 17:33 17 minutes, 33 seconds year itself. So what the the discipline that a luxury portfolio requires is also continuous product development. I think 17:42 17 minutes, 42 seconds third thing is that we have to think of India and beyond not just to rely on the Indian market. So like I had explained earlier that we have opened up UAE for 17:51 17 minutes, 51 seconds Zoya, UA for art house, we are opening up travel, retail, Bangalore um uh is up and running uh and many more will be up 17:59 17 minutes, 59 seconds and running in in H2. So I think sort of re-engineering distribution continuous product development I think are two 18:07 18 minutes, 7 seconds important things to uh succeed in this segment and that's that's I think is what we believe are right to 18:14 18 minutes, 14 seconds sure last question uh what will be your thoughts on Maharashtra made liquor the pricing seems quite aggressive in my view so what what gets adversely 18:24 18 minutes, 24 seconds impacted uh is there some silver lining for you also and on andra if you could tell us that entire market is booming 18:31 18 minutes, 31 seconds How do you see uh uh the second year and in terms of Q2 how has been the growth in Andra? 18:39 18 minutes, 39 seconds Uh I I would say as far as Maharashtra is concerned it's a little bit early to form a view. Uh of course the IMF 18:47 18 minutes, 47 seconds volumes have come down by about 20%. Uh but I think it's a little early. We should give it this quarter before we can come up with um 18:57 18 minutes, 57 seconds sort of an informed view. All we know for now is that IML volumes have come down and there has been no additional um 19:06 19 minutes, 6 seconds revenue for the state. So if the very purpose of the policy was that state wanted to make more revenue, we have not seen any evidence of that. Of course at 19:15 19 minutes, 15 seconds an industry level we are continuously engaging with the with the policy makers that this policy is not delivering uh uh 19:22 19 minutes, 22 seconds on the objective that you laid out but I would say we have to give it this quarter before we can take a more informed view on the market. Uh moving 19:30 19 minutes, 30 seconds on to Andra we have pretty much more than doubled our uh volumes in Andra uh and we stay optimistic on possible uh 19:38 19 minutes, 38 seconds possible growth while the tender has been uh the tender conditions have been announced. We are hopeful that in time to come new brand introduction will also 19:47 19 minutes, 47 seconds be allowed and we have very interesting lineup of brand for the Andra market. So we are we are looking forward to um seeing higher growth coming from andra as a state. 19:58 19 minutes, 58 seconds Any initial views on MML or madeup? Uh no initial views on MML. 20:06 20 minutes, 6 seconds So thanks. That's all from my side. Thank you. Thank you very much. Thank you. 20:16 20 minutes, 16 seconds The next question is for the line of Nipan from MK Global. Please go ahead. 20:23 20 minutes, 23 seconds Uh thanks for giving me the opportunity to ask question. Uh my first question is around like uh the impact in mass premium you 20:31 20 minutes, 31 seconds highlighted. I guess it is to do with the Telangana. So maybe if you can highlight uh how do you see the market or like the region structure evolving? 20:41 20 minutes, 41 seconds Sorry if can I request you to repeat your question again? 20:45 20 minutes, 45 seconds Yeah sure. So my first question is around the Telangana market because of uh this retail licensing I guess your popular segment growth has got impacted 20:53 20 minutes, 53 seconds on a y basis. Any uh incremental viewpoint you want to offer there? 20:59 20 minutes, 59 seconds Uh no this is uh not just uh effort is concerned uh on back of the licenses because the retailers are pretty much 21:07 21 minutes, 7 seconds buying uh what is getting sold. So this is this has impacted all segment not just mass premium. Now the good news is 21:15 21 minutes, 15 seconds that the uh lottery fee has been concluded the new the new owners have been identified and from 1st December 21:22 21 minutes, 22 seconds the business back as usual and the pipeline correction that has happened we see significant part of that 21:30 21 minutes, 30 seconds pipeline correction to correct itself in the month of December itself. So we are gearing up to meet that demand. 21:37 21 minutes, 37 seconds So everything will normalize in Q3. 21:40 21 minutes, 40 seconds Uh mostly it will normalize in Q3. That is right. 21:44 21 minutes, 44 seconds Sure. Thank you. Uh second with respect to this ABD maestro like uh we start 21:51 21 minutes, 51 seconds expanding uh uh sort of a market uh and uh like in terms of revenue contribution. So by when is there any 21:58 21 minutes, 58 seconds sort of a benchmark when you will start highlighting about the EBD maestro? uh I know that for 3 years you will be reinvesting in the business but uh my 22:06 22 minutes, 6 seconds point is that if the sales is coming in and we are reinvesting uh will it have an impact on the margin for the overall company? 22:15 22 minutes, 15 seconds Sure. So I think first maybe a trivia point uh for every 1% volume contribution from ABDM in future it 22:23 22 minutes, 23 seconds should have an 8x impact on our top line. So the impact is fairly significant. uh and of course it'll take 22:30 22 minutes, 30 seconds us maybe 6 eight quarters to be uh to be able to reach to that milestone. Uh the good news is that ABD MRO is currently 22:38 22 minutes, 38 seconds running on a you know it's uh it's revenue run rate is now about about 40 odd crores right and we expect this to 22:46 22 minutes, 46 seconds pretty much grow at a very fast pace quarter quarter basis. So I think when we talk uh uh we connect again at the end of quarter four, we'll be able to 22:54 22 minutes, 54 seconds give you a reasonably good view on where and how what our projections are. But so far I think we're on the right track. 23:02 23 minutes, 2 seconds This 40 cr we are highlighting it for is it for this quarter or you are talking about the first half. 23:06 23 minutes, 6 seconds I'm saying the run rate uh uh the run rate is already at 40 cr and it is 23:14 23 minutes, 14 seconds growing month on month. So by end of this financial year we'll be able to give you a very clear idea on what our future ARR annual run rate will be all 23:22 23 minutes, 22 seconds about. Uh I think it'll give us a much much better view but like I said currently we're on track. 23:29 23 minutes, 29 seconds Sure. Thank you. This is helpful. My last one question is around iconic white. Would you like to call out the volume for 23:37 23 minutes, 37 seconds uh it's just about 5 million cases I share on the 5 million cases. Thank you sir. of the big. 23:45 23 minutes, 45 seconds Thank you very much. 23:48 23 minutes, 48 seconds Thank you sir. The next question is from the line of Sanjay Manuel from Dam Capital. Please go ahead. 23:56 23 minutes, 56 seconds Uh hi sir. Congrats on our set of numbers. Uh uh you spend a lot of time uh in your commentary about the international market. Uh so just want to 24:04 24 minutes, 4 seconds understand what kind of a run rate we are uh uh sort of uh uh uh doing at this point in time and what are our plans over the next two years. Is there any 24:12 24 minutes, 12 seconds certain number in uh you know we have uh sort of a target over the next uh 2 three years uh for international 24:19 24 minutes, 19 seconds business uh I think there are uh two key initiatives u for our global market one 24:26 24 minutes, 26 seconds is uh mixed to long-term uh you want to go back 24 we were 17 countries largely 24:32 24 minutes, 32 seconds concentrated in the GC space where we are now is we are that is expanding apart from GCC we are building Africa as 24:41 24 minutes, 41 seconds a very very important market and like I said in my call also we are looking at building a million related to the Africa market. In addition we have also opened 24:50 24 minutes, 50 seconds up critical markets towards the western hemisphere. So we opened up Canada and USA. Uh we've opened two markets in 24:58 24 minutes, 58 seconds Europe. We also considering creating a uh creating a hub in Europe for suppliers across countries within Europe. We've opened up Australia 25:06 25 minutes, 6 seconds opening up New Zealand and we have opened all of Southeast Asia. Uh therefore if you look at our distribution uh footprint uh this will 25:16 25 minutes, 16 seconds support uh brands like officers choice which cater into the Indian diaspora largely in the GCC market. It will cater 25:23 25 minutes, 23 seconds into our P segment especially especially in the Africa market because products are very well spent and the footprint that we're expanding into the western 25:31 25 minutes, 31 seconds hemisphere will really be relevant for our AVDM portfolio. So what we are really doing is to build the product portfolio and the distribution expansion 25:40 25 minutes, 40 seconds hand in club right so that's really where we are in terms of our our our strategy uh currently about 8% of our 25:48 25 minutes, 48 seconds value our top line comes from um our international market uh we believe that once the APDM portfolio rolls out which 25:57 25 minutes, 57 seconds is significantly higher NSV we believe that the contribution share uh from our international revenue could be between 26:05 26 minutes, 5 seconds 12 to 15% of our total volume total value right sir uh secondly uh I have a 26:15 26 minutes, 15 seconds question on iconic white I think your run rate is close to 10 million uh cases uh for the I mean annual annual number 26:22 26 minutes, 22 seconds uh I I believe uh with this kind of we might just achieve that uh this year itself uh you again uh is it is it the 26:30 26 minutes, 30 seconds growth because of the distribution expansion I think the number of states uh uh where you have entered uh this year 26:37 26 minutes, 37 seconds itself. So, so uh means will we be sort of when will we be lapping the overall distribution? Uh as far as iconic wide is concerned. 26:47 26 minutes, 47 seconds So as far as domestic markets are concerned our national rollout got national rollout got finished sometime November December last year with opening 26:55 26 minutes, 55 seconds up of Andra and Delhi. So with that we have finished uh or concluded the roll out domestically. Uh international market we are currently in about eight 27:03 27 minutes, 3 seconds markets. We believe this brand um has relevance across 45 and 30 markets. So we're expanding uh the global uh rollout 27:12 27 minutes, 12 seconds as we speak. Uh I think uh in our view this brand has the legs to be a market leader. So uh how we take this brand uh 27:20 27 minutes, 20 seconds forward with the consumer is something that we're looking at. So we stay very optimistic about uh the growth of iconic white even in the near future for 27:28 27 minutes, 28 seconds domestic and in overseas market and we'll be top five brands means iconic white will be top five brand uh 27:36 27 minutes, 36 seconds currently whiskey brands in India top five one two yeah top five one two three yeah should be top five brand 27:45 27 minutes, 45 seconds that's right but I think the aspiration is to at least move two notches up right right so And and lastly uh on the 27:54 27 minutes, 54 seconds on Telangana overviews if you just can spare some time on the what is the status at this point in time. Uh I believe uh last quarter we heard that 28:03 28 minutes, 3 seconds some dues have started overds have started coming or what's the current status and when you expect this entire uh thing to get resolved. 28:11 28 minutes, 11 seconds So I think we'll have to take over on month one basis. I think the uh the engagement with uh uh the corporation 28:19 28 minutes, 19 seconds and with the respective uh policy makers is is fairly intense and we have seen some result of that coming in the month of October. Uh but we'll have to take 28:28 28 minutes, 28 seconds month on month rather than sort of uh you know um uh I rather have a clear uh 28:35 28 minutes, 35 seconds outline of when the position the the money will get paid. But I think from what we hear and our engagement with the government through the industry body, I 28:44 28 minutes, 44 seconds think this issue uh is at the center of discussion and we see continuous uh reduction in the overview. 28:52 28 minutes, 52 seconds Okay. Possible to give exact number uh overdue currently uh for the industry level. I'll have to 29:00 29 minutes really pull it out. It's not handy with me at this point of time. But if I was to go by a press report that I read couple of days back, the number is north of 3,000 crores. 29:12 29 minutes, 12 seconds Okay. Uh thank you. Thank you very much. Uh and all the rest. Thank you. 29:18 29 minutes, 18 seconds Thank you. The next question is from the line of Alert D from Antique Talk Broking. Please go ahead. 29:27 29 minutes, 27 seconds Hi Tim. Thank you for the opportunity. Just a couple of questions from my end. 29:32 29 minutes, 32 seconds So, iconic has now delivered 4.9 million cases uh this in the first half. So, when I look at it as a percentage of CNA, it has moved up to roughly 60%. 29:43 29 minutes, 43 seconds From the previous year, 43%. 29:46 29 minutes, 46 seconds So are we seeing a decline across the other uh major brands such as officer 29:53 29 minutes, 53 seconds choice blue, SRV7 and SRV10 and uh I know you had called out that the blend 30:01 30 minutes, 1 second has been revamped for SRV7. So sort of what is the trend moving ahead for these three brands? 30:09 30 minutes, 9 seconds Yeah. So on SRP7 like I had covered I think we are uh you know we have put together this entire program on so smooth must be magic with the focus 30:17 30 minutes, 17 seconds being at the blend at the heart of our communication. Uh very happy to share with you that in our pri market uh we are back on the growth track and we are 30:26 30 minutes, 26 seconds expanding this program nationally and therefore we see this brand coming back on the growth track uh by end of this 30:32 30 minutes, 32 seconds year. Uh Iconic operates at a price point identical to OC2. um uh the market 30:39 30 minutes, 39 seconds share that iconic white has been able to garner comes from uh established brands in the same price point be it blue or 30:48 30 minutes, 48 seconds double numbers one and and also from OC blue so there's a bit of cannibalization but the way we the way we look at the 30:54 30 minutes, 54 seconds segment is that what percentage of the segment we have combined between OC blue and iconic so when you put together our 31:02 31 minutes, 2 seconds market shares have only moved Anything on FRB 10? 31:11 31 minutes, 11 seconds FB 10. FIR 10 was always a very small brand. We do um close to about 150,000 cases. It was never a big contributor. 31:20 31 minutes, 20 seconds Uh however, the good news is that uh we are looking at strengthening this brand in the defense channel both in CSG and 31:28 31 minutes, 28 seconds paramilitary. So uh you know the growth will be driven by focusing now in the defense uh defense channel but uh 31:37 31 minutes, 37 seconds overall SR 11 SR SRB 10 only contributed about 150,000 cases in our DNA. 31:47 31 minutes, 47 seconds Okay. Thank you. 31:48 31 minutes, 48 seconds Thank you very Thank you. The next question is from the line of Ishan, an individual investor. 32:02 32 minutes, 2 seconds Please go ahead. 32:04 32 minutes, 4 seconds Yeah, thank you for giving the opportunity. Uh my my few question my first question is that uh we have seen a big growth in a master category. So 32:12 32 minutes, 12 seconds would you like to comment like what is the uh result for the degree category? 32:17 32 minutes, 17 seconds Is it the competition or uh my second question is fine please go ahead. Hello. 32:24 32 minutes, 24 seconds My second question is Yeah. Yeah. My second question is regarding the above category. So we are saying that white 32:31 32 minutes, 31 seconds brand is contributing almost more than 50% of it. 32:37 32 minutes, 37 seconds So I feel like cutting too much on iconic part and it is also risk that tomorrow the growth comes down in the iconic part that it will negatively set 32:45 32 minutes, 45 seconds the plan and uh also I'm saying that we have a guidance of PMS to meet 50% by the end 32:54 32 minutes, 54 seconds of F28 but we are already I think uh from the service side we are already 33:00 33 minutes having the 40% of PMA contribution so we like to guidance for the PNA 33:07 33 minutes, 7 seconds capacity building I think the guidance for the PNA uh salience was 50% by FI 28 we are at 47 33:16 33 minutes, 16 seconds as you rightly pointed out uh I think if there's a need to revise this guidance we will certainly do so by end of this financial year uh so allow us to come 33:24 33 minutes, 24 seconds back to us on new guidance um as regard the mass premium uh segment is concerned um I think we covered both the point on 33:33 33 minutes, 33 seconds this call uh MML uh which is the MML policy in Maharashtra has an impact on uh the entire uh alcoh market especially 33:42 33 minutes, 42 seconds on uh the mass premium and secondly uh the temporary pipeline correction that we have seen in Telangana. So deg growth 33:50 33 minutes, 50 seconds largely is on account of these two factors. 33:53 33 minutes, 53 seconds So Pelangana situation we expect to majorly course correct by December as the new licenses uh we know who the new 34:01 34 minutes, 1 second licenses are they will be signing up the new shops and moving forward and uh Maharashtra of course is a bit of a waited watch so only by end this quarter 34:09 34 minutes, 9 seconds we'll be able to figure out as to which way the sales is setting down okay and like what about your view about 34:17 34 minutes, 17 seconds the iconic white is contributing more than 50% of the PL category right so we are like the iconic white is pretty much concentrated over PLA. So should we 34:26 34 minutes, 26 seconds should we focus on diversification between various brands? 34:30 34 minutes, 30 seconds Yeah, if you look at the industry construct the industry is about 400 odd million cases of which 160 million is what you call as a PNA or the prestige 34:39 34 minutes, 39 seconds price point of this 140 million cases is whiskey and about 40 million cases is brandy and vodka. The way we uh the way 34:48 34 minutes, 48 seconds we are architecting our portfolio strategy is with SR7 iconic and OC blue continue to get market shares from the 34:57 34 minutes, 57 seconds 120 million kids whiskey prestige market and produce brand in the prestige brandy and the prestige vodka segment. So 35:05 35 minutes, 5 seconds prestige brand we've already launched golden mist which is at the early stages of launch currently available in the state of Telangana and the state of 35:13 35 minutes, 13 seconds Karnataka and we are hopeful like I had explained earlier uh that we should be able to get brand approvals in the state of Andra. So the 40 million cases which 35:21 35 minutes, 21 seconds is prestige brandy and prestige vodka one brand is already rolled out and we're also looking at rolling out a prestige vodka in the next few quarters. 35:31 35 minutes, 31 seconds So the idea is get profitably shares of the 60 million prestige uh uh price 35:38 35 minutes, 38 seconds point through a combination of whiskey, brandy and vodka. Therefore, overall portfolio will expand not just in whiskey but it'll become a multiple flavor portfolio. 35:50 35 minutes, 50 seconds Okay. Yes. Thank you. 35:59 35 minutes, 59 seconds Thank you sir. The next question is from the line of San Gossar from MK Ventures. Please go ahead. 36:06 36 minutes, 6 seconds Yeah. Uh thanks for taking my question. 36:08 36 minutes, 8 seconds Uh and congratulations on a very good set of numbers. Uh I have a couple of questions. First is uh with regards to 36:16 36 minutes, 16 seconds the state of Telangana in the presentation you had mentioned that uh uh in the month of October uh you started collecting some overdue amounts. 36:26 36 minutes, 26 seconds So if you can give some color on uh what's the uh outlook in terms of overdue uh receivables in Telangana uh 36:35 36 minutes, 35 seconds and second on the state of Telangana uh like is there any uh possibility of 36:43 36 minutes, 43 seconds price hikes or any pricing committee which has been formed. Uh so that's my first set of question. 36:51 36 minutes, 51 seconds Right. So the pricing committee has been formed. The pricing committee has already uh given a price increase uh to 36:59 36 minutes, 59 seconds the beer segment. Uh it this will be followed as we understand with BIO followed by MFL and the logic being that 37:06 37 minutes, 6 seconds we got a price increase in May 23 which was roughly two years back and the other segments got price increase 37:13 37 minutes, 13 seconds about four or five years back. So price committ is up and operational have already concluded we are in the process of looking at PIO and then we look at 37:21 37 minutes, 21 seconds IML. So we uh are in uh active discussion with the uh with the corporation in terms of taking up the 37:29 37 minutes, 29 seconds case of the IMFL industry as soon as we can. Uh on Telangana um uh in the month of October the money that got released 37:38 37 minutes, 38 seconds against the old overduce um the the money that got released is north of about 100 crores towards the old overd. 37:49 37 minutes, 49 seconds Got it. And uh in terms in terms of clearing of the overdose is there a pathway or visibility in terms of uh or 37:58 37 minutes, 58 seconds any timeline that the government has indicated uh to basically reduce this substantially further. 38:05 38 minutes, 5 seconds The government has given us an assurance that they will every month give us uh not only clear current dues but will also release a part of the overview. 38:13 38 minutes, 13 seconds They've not given us a quantum and neither have they given us uh a time frame. Uh so like I said we'll have to 38:20 38 minutes, 20 seconds take uh uh each month uh in a stride and just make sure that we are continuously having a dialogue so that every month this position becomes better and better. 38:30 38 minutes, 30 seconds Got it. My second question is on the capeex program. Uh so our overall capeex 38:37 38 minutes, 37 seconds program was about 500 odd crores. uh what I would like to understand is how much of this has already been spent till 38:46 38 minutes, 46 seconds say September uh 25 and uh what is the pending uh cash outflow over FI26 and 38:55 38 minutes, 55 seconds FI27 okay so if you recall in the earlier call I had outlined roughly 25% of this 39:03 39 minutes, 3 seconds 527 cr was invested last financial year 60% of this 527 cr will be invested in 39:10 39 minutes, 10 seconds this financial year and the balance 15% will be invested in the next financial year. So the capex investment is broken 39:18 39 minutes, 18 seconds 25% last year, 60% this year and 15% next year. 39:23 39 minutes, 23 seconds Got it. So 300 crores approximately in the current year and about u maybe 100 to 125 crores in the next year. 39:31 39 minutes, 31 seconds Yes, you're right. Some 100 crores in the next financial year. And like I said earlier um I'm reconfirming that all the 39:38 39 minutes, 38 seconds three projects are on time. We had said PE project will start in Q2 FI26. Uh we 39:44 39 minutes, 44 seconds started production in FI Q2 of FI26. The plant is now running to capacity of 600 39:51 39 minutes, 51 seconds 600 million bottles a year which is 50 million bottles a month. Um and the Maharashtra ENA facility is also on 39:58 39 minutes, 58 seconds track and so is uh the bond plant the single bond plant in uh in Selena. 40:04 40 minutes, 4 seconds Got it. Got it. And uh one last question is on the ENSP uh spend. So what is the 40:11 40 minutes, 11 seconds current uh percentage in terms of ANSP spends and uh basically what is uh as 40:19 40 minutes, 19 seconds your PNA mix uh increases what is the normalized level of ANSP spend that you're looking at uh say over the next 40:28 40 minutes, 28 seconds uh one to two years. So the ANSP spent u um the demand in the mass premium segment is pretty low. Uh so when we 40:37 40 minutes, 37 seconds look at our ANS spend it is roughly 4 and a half 5% of the PA PNA NSV. So our PNA NSV rex we invest about 4 and a half 40:46 40 minutes, 46 seconds to 5% um uh as&p uh the way we are looking at is to increase our AMP investment between 75 basis to 100 basis 40:55 40 minutes, 55 seconds point year on year for the next two or three years. 40:59 40 minutes, 59 seconds Got it. So basically uh on a blended basis this will be lower than 3% right uh assuming mass premium and PNA just about 3%. 41:10 41 minutes, 10 seconds Got it. And this 3% again on a blended basis uh should go to say between 4 and 41:16 41 minutes, 16 seconds a half to 5% by uh FI28 is that little lower than that. 41:24 41 minutes, 24 seconds Got it. Got it. Perfect. Thank you so much and uh all the best for the future. Thank you. Thank you very much. 41:33 41 minutes, 33 seconds Thank you sir. The next question is from the line of Kunal Sha from Jeff. Please go ahead. 41:41 41 minutes, 41 seconds Hi. Uh thank you for the opportunity. Uh my first question is on iconic white uh and specifically on profitability of 41:48 41 minutes, 48 seconds that brand. Uh so if I remember correctly you had highlighted a few initiatives use of market bottles uh removal of mono cartons in this brand to 41:57 41 minutes, 57 seconds improve profitability. I wanted to get an update on where are we in that journey how much is left and in the markets where you have done let's say 42:04 42 minutes, 4 seconds removal of mono carton have you seen any impact on let's say brand perception or growth or anything like that. 42:12 42 minutes, 12 seconds So let me take the easier one first. uh the markets where we removed monocarton uh there is no impact um I think numbers 42:19 42 minutes, 19 seconds speaks for themselves we did about 5.7 million cases all of last year we've already done 4.9 million cases in H1 um 42:27 42 minutes, 27 seconds so the brand continues to grow organically I think what is really working well for the brand is what we would call in classical marketing term 42:35 42 minutes, 35 seconds is word of mouth I think consumers they love the brand but they like the packaging a lot but they love the brand and you know that word is spreading uh 42:43 42 minutes, 43 seconds So that's part one on the monocart removal. You would recall I said within 12 months of launch we remove our last bucket of launch were November and 42:51 42 minutes, 51 seconds December last year. So uh it's really Andra and D and Delhi. So by December the entire exercise of monocarton 42:59 42 minutes, 59 seconds removal would be concluded. uh on the market bot utilization while our overall market bot utilization is north of 20%. 43:06 43 minutes, 6 seconds Uh Iconic has really ramped up and it's at about 16% and we are hopeful by the time we're finishing this year the 43:14 43 minutes, 14 seconds market bottle would also be operating at about a 20% uh level for iconic white. 43:21 43 minutes, 21 seconds Understood. Uh very clear. And uh uh I mean just to clarify there's no plans of 43:27 43 minutes, 27 seconds any changing pricing or uh liquid uh profile uh as a part of your margin 43:34 43 minutes, 34 seconds improvement in this brand right uh what we focused on is to uh really 43:41 43 minutes, 41 seconds work on uh uh price variance and work on flavor variance which means uh really in 43:47 43 minutes, 47 seconds a meaningful manner see how we can extend the brand equity of iconic in your price point in new flavor but the core iconic white will continue to play 43:57 43 minutes, 57 seconds by and large between the deluxe and the prestige point prestige price points uh I think that positioning will maintain 44:05 44 minutes, 5 seconds understood very clear uh my second question was uh uh on the shishi brand uh any update you can share on how uh is 44:14 44 minutes, 14 seconds that brand cracking uh what what what's been the response till now and any progress that you expect in the Okay. 44:22 44 minutes, 22 seconds Uh uh we're very happy with uh uh with the Trishi. We are currently selling it in two markets only uh in UP and in 44:30 44 minutes, 30 seconds Hana. Um I think we have a clear go from the customer in terms of uh the the brand proposition which is the Indian 44:39 44 minutes, 39 seconds brand with Indian soul. As you know this brand has a unique botonical that comes uh from uh which is unique to India. Uh 44:46 44 minutes, 46 seconds however I think some interesting points were in terms of a packaging. So we are looking at uh re-engineering uh some of 44:55 44 minutes, 55 seconds the design semiotics and get back to the market in Q4 and thereafter roll out in the top 10 markets of India. 45:03 45 minutes, 3 seconds Understood. Uh very clear. And lastly a bookkeeping question. Uh uh any one-offs in the employee cost or we should continue assume that this run rate continues. 45:13 45 minutes, 13 seconds uh uh there is a one-off which is the payment uh which is the DPIP which is a variable component that got paid out in H1 and therefore um that is the only one off in H1. 45:24 45 minutes, 24 seconds Understood. So on a normalized basis let's say 50 55 crores a quarter should be the right number or uh if 45:31 45 minutes, 31 seconds yeah I think it's a good I think it's a very good estimate. Uh that's that's clear. Uh thank you. Thank you sir. 45:39 45 minutes, 39 seconds Thank you. Thank you. 45:43 45 minutes, 43 seconds Thank you sir. The next question it's from the line of Karan Kandar from Choice Institutional Equities. Please go 45:52 45 minutes, 52 seconds ahead. Hello sir. Congrats on a very good set of numbers. Uh a forwardl lookinging question is that what stage 45:59 45 minutes, 59 seconds do you see as uh future areas of growth especially for iconic white and the brand that we're betting big on? 46:08 46 minutes, 8 seconds Uh so as far as iconic white is concerned u uh the brand will continue to grow organically. It continues to get 46:15 46 minutes, 15 seconds share both from the deluxe price point and the prestige price point. Uh a point that we made earlier is that it is seen 46:23 46 minutes, 23 seconds as uh it's seen as seen it's rank is very strong among younger consumers. So India is adding about 12 to 13 million 46:31 46 minutes, 31 seconds consumers of drinking age. uh some of them will take an informed decision to enjoy an alcoholic beverage and they will look for a brand that is trending 46:39 46 minutes, 39 seconds amongst the younger consumer. So Iconic wine also gets a larger share of the uh the growth that is coming from newer 46:47 46 minutes, 47 seconds consumer uh and and and on back of uh and therefore its ability to get consumers both from prestige and deluxe 46:55 46 minutes, 55 seconds and the newer consumer is a continuous growth engine on the brand. In addition, we're also looking at uh you know u meet 47:03 47 minutes, 3 seconds in a meaningful manner uh looking at uh price and flavor variance uh to grow the brand franchise and we already in about 47:11 47 minutes, 11 seconds seven or eight markets internationally also to grow its footprint from seven or eight markets to hopefully 20 markets in time to come. 47:18 47 minutes, 18 seconds Okay, got it sir. Uh one last question if I can is what what are any updates on on trade uh sort of effort that you are 47:26 47 minutes, 26 seconds making last quarter you gave an update that we started going out and doing some on trade activity. Uh any update on on that product? 47:34 47 minutes, 34 seconds Uh absolutely. Uh we are now ABDM products are now available uh on 2,000 plus outlet. So it's been a fairly 47:43 47 minutes, 43 seconds aggressive uh uh roll out of the of the brands in the premium on premise. In addition, uh we have listing from three 47:51 47 minutes, 51 seconds of the large hotel chains in India. Um and that itself will give product an excellent exposure to those who stay in 47:58 47 minutes, 58 seconds those hotels and an opportunity to try the products. Uh and thirdly, like I had said earlier, we were able to uh we're looking at the travel retail channel 48:06 48 minutes, 6 seconds very seriously. We've been able to open up two uh travel retail uh within uh India and H2. Hopefully another two or 48:15 48 minutes, 15 seconds three travel retail will open both in India and overseas market. So on premise uh key accounts and travel retail will 48:22 48 minutes, 22 seconds continue to be a very important area of distribution focus especially for our luxury portfolio. 48:28 48 minutes, 28 seconds Okay. Any key brands you would like to highlight which we are pushing for on premise? 48:33 48 minutes, 33 seconds Well uh the on-remise focus I would largely say as far as the key accounts and premium on-remise channel retail is concerned the focus is going to be on 48:41 48 minutes, 41 seconds Zoya uh art house the entire portfolio of the of the ABDM uh is going to be a big focus area as far as brands like 48:50 48 minutes, 50 seconds SRV7 and iconic are concerned these are also brand franchise and on premise of course the nature of on premise is very 48:57 48 minutes, 57 seconds different so essentially we have to see the see the on-remise fit with our brand but each brand has its own onremise uh program. 49:08 49 minutes, 8 seconds Okay. Thank you so much. Thank you. Thank you. Thank you. 49:13 49 minutes, 13 seconds Thank you sir. The next question is from the line of Yesh investment managers. Please go ahead. 49:22 49 minutes, 22 seconds Uh yeah thanks for the opportunity and congratulations on a good set of numbers. Uh so first my first question was on the mall distillery which will 49:31 49 minutes, 31 seconds come up uh uh by end of this year uh this financial year. So uh if you can help us understand I understand that I 49:39 49 minutes, 39 seconds mean the initial priority will be to utilize that for blending of our uh uh whiskey products but uh when it comes to 49:47 49 minutes, 47 seconds suppose the single mold side of it uh where are we in that journey in terms of uh you know kind of deciding uh and 49:56 49 minutes, 56 seconds choosing what uh uh what brand uh you are planning to launch in single malt 50:02 50 minutes, 2 seconds and uh especially on the side of uh you know in terms of brand identity of that single model which you're trying to uh 50:10 50 minutes, 10 seconds launch and when would when would we see this? 50:15 50 minutes, 15 seconds All right, thank you for this uh question. Um u uh before we started this journey we essentially made an attempt 50:22 50 minutes, 22 seconds to understand how single mods are getting launched across the globe. Today single mods not just come from Scotland 50:30 50 minutes, 30 seconds or from Japan. They also come from Taiwan, Thailand, US, Germany, even China is planning to launch its own single model. So the idea was to 50:38 50 minutes, 38 seconds understand that really what's the right to win when we launch single mod. Um the single model that we building in Dang 50:46 50 minutes, 46 seconds Nala the first thing is we're focusing on authenticity. we are focusing on um a story that is u uh sort of uh um deeply 50:56 50 minutes, 56 seconds connected to the 2,000 year of history of uh Rangapur district. Uh so done a lot of research work and what has happened in Rangapur. Um we are this 51:06 51 minutes, 6 seconds tribute to river Krishna from where we draw water for a single mall. So right from the way the single mall digital is 51:13 51 minutes, 13 seconds getting built out uh we are on every uh uh you know on every step trying to make sure that we stay authentic to the 51:22 51 minutes, 22 seconds environment and the and the sort of ecosystem in which the single bot is being made. Uh the production is likely to start in Q4 in this financial year 51:30 51 minutes, 30 seconds like we said earlier and we are on track. Uh the total production that we'll do there is 4 million liters. Um 51:37 51 minutes, 37 seconds uh a part of this production will go towards raw material and a part of this production will go towards uh maturation 51:45 51 minutes, 45 seconds for our uh single modu. So our master blender has visualized uh as to what kind of a single model profile we would 51:53 51 minutes, 53 seconds launch uh uh in 2029. That is when we are targeting our single model to come out and right from uh distillation to 52:02 52 minutes, 2 seconds maturation uh to the kind of cast the the maturation will happen. I think that blueprint is already ready. So quite 52:09 52 minutes, 9 seconds excited about bringing our single mod in 2029. And one quick point that I'd like to go over earlier is that in anticipation of the single mod, we're 52:18 52 minutes, 18 seconds also strongly building our distribution globally. uh therefore addition of markets in in northern America uh 52:25 52 minutes, 25 seconds looking at setting up our hub in Europe um and uh you know the Southeast Asian market we've already started work in anticipation that we'll have not just 52:34 52 minutes, 34 seconds our portfolio but also have our single market in 2029 just a follow up on this was uh the cask 52:44 52 minutes, 44 seconds I mean how important or differentiating is the cask which we use for the maturation of the mold 52:52 52 minutes, 52 seconds uh and I mean uh where would these tasks be coming from? Uh we understand that uh there are these tasks which are 53:00 53 minutes available across the globe. So if you can just help us understand that which will help you bring that authenticity. 53:07 53 minutes, 7 seconds We can we can spend a full day talking about it. I try and keep it very simple. 53:12 53 minutes, 12 seconds Uh as you know that uh uh the character of a whiskey uh is determined by three things. It is determined by uh the wood in which the uh the spirit is matured. 53:23 53 minutes, 23 seconds Uh the environment um in which the whiskey is uh matured and the water uh uh that is used for the maturation 53:31 53 minutes, 31 seconds process. Uh therefore wood plays an extremely important role and that's the point I was trying to make that the master blenders already thought through 53:39 53 minutes, 39 seconds in terms of what profile whiskey do we want in 2029 and therefore what kind of cast mix that we need. uh broadly 53:46 53 minutes, 46 seconds speaking we'll use three kind of casks without going into too much of detail. 53:50 53 minutes, 50 seconds Uh we will use uh once used bourbon cask that predominantly come from the US uh we will use some cast that are used in 53:58 53 minutes, 58 seconds the Scottish malt industry and we'll use some sherry cast coming through France which I use for the wine industry and as the whiskey gets matured and rotated in 54:07 54 minutes, 7 seconds these three different kind of cast by 2029 we'll have one unique single malt coming out from our unit in Langapur. 54:14 54 minutes, 14 seconds Understood sir. And uh my final question is sir uh the 12 million uh cases which is a super premium segment if you can 54:23 54 minutes, 23 seconds help us break that out into suppose uh uh uh dark spirit and white spirit uh 54:30 54 minutes, 30 seconds and uh at what rate would this uh piece be growing at today? 54:36 54 minutes, 36 seconds Okay. Uh I think predominantly it's dark spirit. uh a lot of this is uh really whisies both uh non-scotch and scotch. 54:46 54 minutes, 46 seconds We know the growth of Irish whiskey in the country. We know that consumers are loving Japanese whiskey. There are bourbons. So dominant uh flavor profile 54:55 54 minutes, 55 seconds uh upwards of uh close to about 90% would be whiskey and balance is going to be uh whites which is tequila, vodka, uh 55:03 55 minutes, 3 seconds gin, white and many others. Um um so that really is the broad dark to white 55:10 55 minutes, 10 seconds uh uh breakup and and at what rate would this be growing at sir? 55:17 55 minutes, 17 seconds Uh just give me 30 seconds. I'm going to give you the number but I reckon that it's going to be uh high double digits. 55:25 55 minutes, 25 seconds Okay, got it. Thank you so much. Thank you. 55:32 55 minutes, 32 seconds Thank you. The next question is from the line of netic from NV alpha fund. Please go ahead. Uh hi sir, thanks for taking 55:41 55 minutes, 41 seconds my question. So my uh I just need one clarification. You mentioned uh you have received roughly 100 or from the tangana 55:50 55 minutes, 50 seconds news. So if you can just confirm that and uh a followup question on the same is how much uh amount is still uh to be received from tana government? 56:00 56 minutes Uh so I can confirm that we have received over 100 crores uh from the overdue uh amount from the Telangana government. 56:09 56 minutes, 9 seconds Um and our total due at this point of time uh let me just 56:17 56 minutes, 17 seconds page down and figure out what the number is. Just give me 10 seconds. 56:23 56 minutes, 23 seconds Yeah, it's about close to 700 crores of which roughly uh 253 crores would be current use and balance is going to be the overdue. 56:37 56 minutes, 37 seconds So another question is uh what is the volume from exports uh currently if you could give me that number? 56:43 56 minutes, 43 seconds Volume is north of 2 million cases. 56:46 56 minutes, 46 seconds 2 million cases and we expect to add another million from Africa by then. 56:53 56 minutes, 53 seconds Uh so this 2 million cases in the analyze market uh and uh we looking at Africa to be a big growth market over the next two or three years. 57:03 57 minutes, 3 seconds Good sir. That's it from Thank you. 57:09 57 minutes, 9 seconds Thank you sir. The next question is from the line of Abinav Rao from India First Life Insurance. Please go ahead. 57:19 57 minutes, 19 seconds Hello. Yeah. Hello. Hi. 57:23 57 minutes, 23 seconds Yeah. Hi sir. Sir I wanted to understand like uh in UP uh icon is already like uh 57:31 57 minutes, 31 seconds a million odd cases. So that's like close to 20% of your volumes. So can you 57:38 57 minutes, 38 seconds just detail the reasons for uh this sort of growth uh in UK market? Uh is our 57:45 57 minutes, 45 seconds product priced higher or lower compared uh compared comparing it with uh imperial view. 57:55 57 minutes, 55 seconds Uh so UPR market as we all know is a fairly progressive state. I think the policy structure of UP uh really allows 58:04 58 minutes, 4 seconds for what I call as accelerated premiumization making it easier for consumer to move up the value chain. Uh 58:11 58 minutes, 11 seconds so it presents a unique opportunity for marketeers to take advantage of it and ABD has done exactly that is to take 58:18 58 minutes, 18 seconds advantage of this uh policy framework which allows consumers to premiumize. uh iconic um has been a fast growing brand 58:28 58 minutes, 28 seconds in the state of UP. Uh this year of course we made uh UP a priority market largely because uh you know uh the 58:35 58 minutes, 35 seconds policy allowed uh the way the policy was structured we expected these price points to be to have high growth and therefore as a result we are seeing 58:43 58 minutes, 43 seconds accelerated growth of iconic white and UP. on the pricing. There is not a single market where iconic white operates below one imperial blue and 58:52 58 minutes, 52 seconds McDonald's number one. We we operate either at par or at a high price. 58:59 58 minutes, 59 seconds Okay. But uh in this category in the state of UP are we the market leaders in terms of volume? Well, I think uh in 59:07 59 minutes, 7 seconds this quarter um um by end of this quarter, we do believe that we could have uh you know we could be a market leader in this segment. 59:18 59 minutes, 18 seconds Okay. And uh so the other thing is like on the luxury side uh can you just share 59:25 59 minutes, 25 seconds the details uh of your brand expansion brand wise I mean like are all the brands currently available 59:34 59 minutes, 34 seconds available in all the states or is it like just limited to few of the states and the other thing is on the Russian 59:42 59 minutes, 42 seconds standard car uh how are the margins here is it like more or less distribution margin Is it 59:49 59 minutes, 49 seconds like some uh your I mean some brand sort of margin out here? 59:56 59 minutes, 56 seconds All right, let me see if I can provide a framework uh which makes it simpler. Uh our focus uh till H1 which is September 25 uh was to get our portfolio in place. 1:00:08 1 hour, 8 seconds We have now six beautiful brands in our portfolio which is Zoya with two variants which is watermelon and um 1:00:15 1 hour, 15 seconds espresso martini uh art house woodburni sagato and Russian standard we're also planning to launch three new brands in 1:00:23 1 hour, 23 seconds H2 uh one of them is going to be a white and two other whiskey one scotch one non-scotch and that sort of gets our 1:00:30 1 hour, 30 seconds portfolio to completion and once uh the FD is in place we will look at you know entry strategy in the VIX scotches but 1:00:38 1 hour, 38 seconds for now by end of H1 we have six brands three new to be added in H2 and that was clearly our focus in parallel uh we have 1:00:47 1 hour, 47 seconds focused on three other things uh number one we have focused on building capabilities so ABD micro our subsidiary 1:00:54 1 hour, 54 seconds that focus on leverage portfolio has gone to build on uh um an infrastructure which is focused on key accounts and on 1:01:02 1 hour, 1 minute, 2 seconds premise it's a 50 uh people strong team which brings in capabilities on key account management, mixology, cocktail, 1:01:10 1 hour, 1 minute, 10 seconds uh you know how to manage social media space. So that's a capability now that is fully ready and baked in. And third focus is on distribution like I spoke 1:01:19 1 hour, 1 minute, 19 seconds about earlier both in Indian market and in the global market as far as domestic offer is concerned. ABD is available in 1:01:27 1 hour, 1 minute, 27 seconds 93% of the outlet. So it becomes easier for any of the luxury brands to uh you know for us to distribute. uh but AVDM 1:01:36 1 hour, 1 minute, 36 seconds is focused on key accounts. We've already got listing north of 2,000 outlets and the listing uh grows on on a 1:01:43 1 hour, 1 minute, 43 seconds on a on a weekly basis. Uh and uh the third point is look at countries beyond India and also focus on travel retail. 1:01:52 1 hour, 1 minute, 52 seconds So H2 for us is going to be a focus on expanding distribution in identified states, expanding distribution globally 1:01:59 1 hour, 1 minute, 59 seconds and also expanding distribution in the travel retail. And a point that I was making earlier on is that by end of this financial year, I think we'll have uh 1:02:08 1 hour, 2 minutes, 8 seconds some some really good data points to talk about how does the future look like and at what speed can we move forward. 1:02:14 1 hour, 2 minutes, 14 seconds Our current AR is about annual run rate is about 40 crores but it is growing month on month uh and and and you know we're very quite quite happy with the progress that has been made. 1:02:27 1 hour, 2 minutes, 27 seconds Okay. And the margins related to uh Russian standard like can you share information? 1:02:33 1 hour, 2 minutes, 33 seconds Standard margins would be 4x of uh you know distributor margin. We are we are not distributors. Uh we are India 1:02:41 1 hour, 2 minutes, 41 seconds partners. Uh uh uh our our entire goal to market is as partners of a brand in India. Therefore the way we are 1:02:48 1 hour, 2 minutes, 48 seconds positioned is to at least have um uh margins which are value created for us. 1:02:53 1 hour, 2 minutes, 53 seconds So margin range will be about four to 5x of what a distributor typical distributor margins are and these are retained margins. 1:03:03 1 hour, 3 minutes, 3 seconds Okay. Yeah. Thanks. Thanks. Thank you. 1:03:11 1 hour, 3 minutes, 11 seconds The next question it's on the line of Nitan from MK Global. Please go ahead. 1:03:18 1 hour, 3 minutes, 18 seconds Thanks for the followup question. Uh one question is around your cash flow and capex need. So like uh we'll be going ahead with the capex need and uh we have 1:03:27 1 hour, 3 minutes, 27 seconds around 50% dividend payout. So how do you think the uh capex will be funded ahead? Is it like uh we'll have to resort to 1:03:35 1 hour, 3 minutes, 35 seconds borrowing or you think that cash donation will be sufficient for the capex need ahead? 1:03:40 1 hour, 3 minutes, 40 seconds No we will need to borrow uh the balance capex uh for this financial year. uh but 1:03:47 1 hour, 3 minutes, 47 seconds the way we have uh planned our borrowing is to make sure that it is well within all the key ratios uh that we have 1:03:55 1 hour, 3 minutes, 55 seconds internally uh agreed as uh uh you know the growth must be driven within certain uh uh KPIs so all the borrowing is 1:04:04 1 hour, 4 minutes, 4 seconds keeping those KPIs in mind but we'll have to do a bit of borrowing and any sense on the dividend payoff so 1:04:11 1 hour, 4 minutes, 11 seconds we look to maintain or uh this question for next year uh because this last year dividend has been 1:04:18 1 hour, 4 minutes, 18 seconds paid out this year. So I think we'll address this question at the right time. Sure. Sure. This is really helpful. 1:04:26 1 hour, 4 minutes, 26 seconds Thanks a lot. Thank you. 1:04:52 1 hour, 4 minutes, 52 seconds So I guess if you're done with all the questions uh uh uh we can close the session for the day but if there are any further question happy to address. 1:05:02 1 hour, 5 minutes, 2 seconds Sure sir. Participants who wish to ask a question they press star and one. 1:05:14 1 hour, 5 minutes, 14 seconds The last question is from the line of Aush an individual investor. Please go ahead. 1:05:22 1 hour, 5 minutes, 22 seconds Uh yeah uh thank you for giving the chance and congratulations on a good quarter. My only question is that uh 1:05:28 1 hour, 5 minutes, 28 seconds from which quarter we can expect uh the input duty reduction on the s of India tax going into our margins and numbers. 1:05:38 1 hour, 5 minutes, 38 seconds I think stand uh at this point of time we believe that this could be uh around quarter 1 to quarter two next financial year. 1:05:49 1 hour, 5 minutes, 49 seconds Okay, that's the only question from my side and thank you. Thank you very much. Thank you. 1:05:58 1 hour, 5 minutes, 58 seconds All right, ladies and gentlemen, thank you so much for your time and for your question. Uh, and thank you for sharing your wishes with us, which we appreciate. 1:06:08 1 hour, 6 minutes, 8 seconds On behalf of Andex Talk Broking Limited, that concludes this conference. Thank you for joining us. You may now disconnect