Marico Ltd — Q3 FY26

Marico Ltd Q3 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=G8wrH6PckqY Published: 3 months ago

0:00 Ladies and gentlemen, good day and welcome to Marico Limited's conference call. We have with us the senior management of Marico represented by Mr. 0:09 9 seconds Sat Gupta, MD and CEO and Mr. Pavan Agraal, group CFO and CEO, international 0:16 16 seconds business. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation 0:25 25 seconds concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Before we 0:34 34 seconds get started, I would like to remind you that the Q&A session is only for institutional investors and analyst. And therefore, if there is anybody else who 0:42 42 seconds is not an institutional investor or analyst, but would like to ask question, please directly reach out to Marico's investor relations team. I now hand the 0:51 51 seconds conference over to Mr. Sata Gupta. Thank you and over to you, sir. 0:58 58 seconds Yeah, good afternoon and uh thank you for joining us once again. I think it's been a short period of time. Uh so let 1:05 1 minute, 5 seconds me begin by setting the context for this call and sharing our perspective on the recent strategic investments we have made in India and Vietnam and how these 1:14 1 minute, 14 seconds fit into our big picture aspiration to structurally diversify the business beyond the core in India and the international market. We have also published a detailed deck earlier today. 1:25 1 minute, 25 seconds Trust you have had a chance to go through the same. We believe Marico is at an inflection point transforming from 1:31 1 minute, 31 seconds a legacy FMPCG incumbent into a scaled profitable digital first consumer powerhouse. And this deck outlines how 1:40 1 minute, 40 seconds we are building a portfolio which is profitable digital first franchise in India and international markets anchored 1:47 1 minute, 47 seconds in strong brands disciplined execution and a repeatable playbook for growth that has already delivered demonstrable successes in some of the brands. 1:57 1 minute, 57 seconds Taking a step back, if you look at what we have consistently held us in goodstead over the years, it would be our ability to spot opportunities early 2:06 2 minutes, 6 seconds while anticipating and mitigating future risks of growth. For instance, the digital imperative in India and Vietnam is un unmistakable in view of the 2:15 2 minutes, 15 seconds exponential growth in internet penetration and e-commerce adoption. And we realize that we must seize this moment decisively since these trends are 2:24 2 minutes, 24 seconds structurally reshaping consumer behavior. Marico has strategically positioned itself to capture this opportunity. Our vision rests on five 2:32 2 minutes, 32 seconds strategic pillars, namely evidence-based acquisitions which profitable scale up via operational discipline, synergy 2:41 2 minutes, 41 seconds acceleration, prudent capital allocation, and a repeatable play. 2:47 2 minutes, 47 seconds Speaking of the recent acquisitions in particular, each of these are designed to fill white spaces, leverage Marico's 2:55 2 minutes, 55 seconds distribution and supply chain strengths, and accelerate growth through digital first engagement. We are building across 3:02 3 minutes, 2 seconds what we call the digital chessboard, which spans three strategic domains, digital foods, digital personal care, 3:09 3 minutes, 9 seconds and global digital brands. In foods, our portfolio now spans for mainstream health and wellness with Safola. Clean 3:18 3 minutes, 18 seconds label and modern breakfast and snacking with True Elements, premium snacking which is indulgent but better for you 3:25 3 minutes, 25 seconds with 4700 BC and functional nutrition with Cosmix and Blicks. 3:32 3 minutes, 32 seconds 4700 BC gives us immediate entry into the fast growing 24,000 cr western snacking market and it elevates it 3:40 3 minutes, 40 seconds through gourmet offerings. Already the number two player in popcorn with 140 crore run rate, 4707000 3:48 3 minutes, 48 seconds BC fills a critical white space in our foods portfolio. The brand's goal is to scale beyond popcorn with nachos, pop 3:56 3 minutes, 56 seconds chips and fox nuts being few steps in that direction. There are interesting examples of such brands in western in 4:04 4 minutes, 4 seconds the western developed markets and we will draw inspiration from them. 4:08 4 minutes, 8 seconds Cosmix is a brand with proven D2C economics which strengthens our participation in a functional wellness space with a 100 crore runway and a high 4:17 4 minutes, 17 seconds teeta margin. Cosmix addresses a pressing consumer need. 73% of Indians 4:24 4 minutes, 24 seconds and 90% of vegetarian are protein deficient and taps into the growing preference for gut friendly plant 4:32 4 minutes, 32 seconds proteins. This brand is well positioned to scale into neutraeticals supplements and functional foods. In personal care, 4:40 4 minutes, 40 seconds we are driving thoughtful premiumization. Beardo leads male grooming. PL is scaling plant-based personal care with hair and skin food. 4:50 4 minutes, 50 seconds Kaya offers dermatologist backed solutions and just herbs elevates Ayurveda inspired beauty. Each brand is 4:58 4 minutes, 58 seconds positioned to capture distinct demand spaces from self-expression to science-based or clinical efficacy. 5:05 5 minutes, 5 seconds Internationally, we aim to replicate this playbook in high growth markets such as Vietnam and certain countries in the Middle East. In Vietnam, Candid, 5:14 5 minutes, 14 seconds which is roughly twothird of skin tech business, is scaling rapidly in this science-based skincare segment with a 5:21 5 minutes, 21 seconds mid premium positioning in Vietnam. It exemplifies how a highquality product first brand combined with social 5:28 5 minutes, 28 seconds commerce leadership can deliver superior unit economics given it is given its mid20s abbita in the Middle East. We 5:36 5 minutes, 36 seconds will aim to tap markets like the UAE or KSA which are amongst the highest smartphone penetration markets globally. 5:44 5 minutes, 44 seconds Our ambition is to build leadership in digital beauty and grooming across these focused emerging markets. Now with our 5:51 5 minutes, 51 seconds sizable digital portfolio, we are also having a we also have a strong platform to build digital brands organically. We 5:59 5 minutes, 59 seconds have already launched men's and women's personal career brands in Vietnam, namely Astroman and Lashi, gaining first 6:07 6 minutes, 7 seconds mover advantage. Since Vietnam and Middle East are relatively nent in their D2C journey, this positions us as one of 6:14 6 minutes, 14 seconds the very few companies perhaps globally that is building digital brands both organically in and in organically at scale. 6:23 6 minutes, 23 seconds Looking ahead, our strategic outlook is ambitious yet disciplined. We are targeting 3 to 3.5x revenue growth in 6:30 6 minutes, 30 seconds these digital acquisitions by FY30. The focus will be on category expansion VA sustaining profitability through scale 6:38 6 minutes, 38 seconds synergies and leveraging Marico's platform to accelerate penetration and operational efficiencies. 6:45 6 minutes, 45 seconds Beardo and PLC are powerful proof points of our model. Beardo has scaled 5x post acquisition which is 100% into the 6:54 6 minutes, 54 seconds Marico fold in 2020 with a visible transformation in EITA margins. Pix has grown 6x in just two years and is on 7:02 7 minutes, 2 seconds track to deliver double-digit margins in the next 12 to 15 months. These success stories validate our disciplined synergy-driven approach to acquisition. 7:10 7 minutes, 10 seconds PL is also a rare example of a brand that pivoted seamlessly from neutraeticals into hair and skin food 7:18 7 minutes, 18 seconds substantially enhancing its growth journey and the profitable profile. The conclusion of recent investments in 7:25 7 minutes, 25 seconds quick succession has been nothing but a result of strategic convergence and our deliberate choice to move with speed 7:33 7 minutes, 33 seconds ensuring we avoided any formalled premium in valuation and secure assets at attractive valuations. Our inorganic 7:41 7 minutes, 41 seconds approach is clear. We screen for product market fit category attractiveness with right to win that cannot be attributed 7:48 7 minutes, 48 seconds to our existing franchises. healthy unit economics, founder mentality with build to last as opposed to build to sell and 7:56 7 minutes, 56 seconds scalability of the business. This ensures we create value while maintaining discipline. Also, we are now cherrypicking profitable brands with a 8:05 8 minutes, 5 seconds minimum 100 to 150 cr scale, an inflection point at which we can rapidly grow them four to 5x without the burden 8:13 8 minutes, 13 seconds of losses. We have been able to pull this out because of Marico's culture of agility, openness, willingness, and 8:20 8 minutes, 20 seconds humility to learn from founders. Also, now that we have two distinct and comprehensive portfolio of brands in 8:28 8 minutes, 28 seconds foods and premium personal care, there is tremendous potential to unlock operational and cost synergies across 8:35 8 minutes, 35 seconds multiple dimensions including GTM, CRM, firstparty data, manufacturing 8:42 8 minutes, 42 seconds capabilities, back-end supply chain, media buying, and content creation to name a few. Therefore, when we 8:49 8 minutes, 49 seconds recalibrate our near and medium-term aspirations around diversification through new businesses and profitability of the digital first portfolio, we we expect material progress on all counts. 9:01 9 minutes, 1 second We expect food revenue to reach 9x of FY20 levels next year and 15x FY30. 9:09 9 minutes, 9 seconds Digital first PPC annual run rate is expected to be 5x of FY24 levels and EITA margin of the portfolio is expected 9:16 9 minutes, 16 seconds to be in teams in FY30. This would take the share of new businesses in India revenues to about 33% in FY30 9:25 9 minutes, 25 seconds illustrating the structural and strategic metamorphosis that would have come about in the business. We expect all digital brands globally to 9:34 9 minutes, 34 seconds collectively clock at least around a top line of 4,000 crores in FY30. 9:40 9 minutes, 40 seconds To summarize, Mavico is not just participating in the digital consumer revolution. We are shaping it with 9:46 9 minutes, 46 seconds strong brand equity, operational muscle and a proven playbook. We are confident of delivering sustainable profitable 9:53 9 minutes, 53 seconds growth in the years ahead. We are building the next decade's growth engines digital first, premium and 10:00 10 minutes globally scalable in multiple markets without compromising our DNA of disciplined value creation. Thank you and you'll now be happy to take questions. 10:11 10 minutes, 11 seconds 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 their touchstone 10:20 10 minutes, 20 seconds telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. 10:30 10 minutes, 30 seconds Ladies and gentlemen, we will wait for a moment while the question Q assembles. 10:37 10 minutes, 37 seconds We'll take our first question from the line of Abnish Roy from Noama. Please go ahead. 10:44 10 minutes, 44 seconds Yeah, thanks. Uh, congrats on fantastic portfolio transformation. My first question is on Vietnam. Vietnam is around 20 25% of international business 10:53 10 minutes, 53 seconds and I think around 5 to 6% to the console. Uh is there a thought process that over the next 5 years 2030 targets 10:59 10 minutes, 59 seconds you are given you want Vietnam to be uh even more salient within the international and any chance that this 11:06 11 minutes, 6 seconds anti-aging hydration and anti- acne at some stage you will bring some of these into your other markets even Bangladesh India also any thought process on that? 11:16 11 minutes, 16 seconds So I think uh there are two things we have been doing in the international business. Uh reducing concentration risk in terms of country as well as as well 11:24 11 minutes, 24 seconds as portfolio. Uh if you look at the share of the premium business has been going up drastically and we are participating in uh premium personal 11:33 11 minutes, 33 seconds care categories like shampoo uh baby and you know body care successfully across multiple markets. I think Vietnam is a 11:41 11 minutes, 41 seconds very very stable country with high growth opportunities. uh significant amount of internet and penetration. We 11:48 11 minutes, 48 seconds believe that the organized trade which is ecom plus modern trade contribution to be ahead of India in the next couple of years uh including e-commerce which 11:57 11 minutes, 57 seconds is very big including social commerce using tik tok and therefore we want obviously to invest in this country and do continue to do tuck in because we 12:06 12 minutes, 6 seconds have created capability. Uh yes you are right we can think of looking at it but even there are opportunities to now have 12:14 12 minutes, 14 seconds a e-commerce or a digital play in adjacent countries of Southeast Asia also with this portfolio see this uh 12:21 12 minutes, 21 seconds product is uh also inspired by K beauty and we also have a similar portfolio like a kaya in India so therefore there 12:29 12 minutes, 29 seconds is obvious uh chance of replicating and crossarning in terms of chassis and product formulation and as you know K beauty is also quite a trend in India. 12:40 12 minutes, 40 seconds Sure. Uh second question was on the 2030 target. Uh if I see uh those targets over the next four year work out to uh 3 to 3.5 or 4,500 cosmic and candidates. 12:52 12 minutes, 52 seconds Now the size of these three are pretty small when I compare to your other acquisitions and even say Marico's overall sales. uh because when I see the 13:01 13 minutes, 1 second kind of scale up you have done in beardo 5x and pig 6x of course the time periods are different but from from a 4 years perspective taking a 100 cr brand or 140 13:10 13 minutes, 10 seconds cr brand 3x uh is this quite conservative is this uh are you seeing some challenges here because your own 13:18 13 minutes, 18 seconds performance and versus 100 to 140 core size this looks very conservative conservative to me see as a culturally as a company we we 13:27 13 minutes, 27 seconds first do and then say as opposed to saying and doing and therefore I think this is a base case when I talked about beardo I would have given you a much 13:35 13 minutes, 35 seconds lower number and a plick I think this is something which is a base case which will beat our acquisition assumptions obviously in the case of beardo and uh 13:45 13 minutes, 45 seconds pix it has overtaken those assumptions by a mile but these are the starting assumptions and we'll see and especially 13:51 13 minutes, 51 seconds 4700 BC which has a 24,000 cr tam you're absolutely right that we can do much better if we but we have to get the 13:59 13 minutes, 59 seconds thing right and get into a profitable sustainable growth cycle which is very very critical. 14:06 14 minutes, 6 seconds Sure. Last question. Uh so when I see PL and when I see cosmics uh they seem fairly adjacent in terms of product 14:14 14 minutes, 14 seconds portfolio. So PL is basically neutrauticals hair and skin food fantastic scale up. Was there a thought 14:21 14 minutes, 21 seconds process that uh we can do uh plant protein plant uh uh functional foods even in flakes because cosmics the size 14:29 14 minutes, 29 seconds is 100 crores uh build versus buy. I wanted to understand that uh uh better because see many brands and you always 14:37 14 minutes, 37 seconds say so that fewer bigger bets plus advertising budget to each brand. Was there possibility that you could have done this in flicks also these products? 14:46 14 minutes, 46 seconds Okay. So if you look at clicks today the center of gravity has moved into a beauty and personal care because you 14:53 14 minutes, 53 seconds know hair and skin food and even in neutraeticals it is a slightly fun brand fun and vibrancy if you look at the way 15:01 15 minutes, 1 second the branding are colors are I think uh what cosmixes does is I think there is a serious movement and we needed a you 15:10 15 minutes, 10 seconds know offering towards the vegan vegetarian this one and serious nutrition and wellbeing so you will see the divergence between the positioning 15:17 15 minutes, 17 seconds of the brands and therefore cosmics will focus on neutraeticals and getting into know spaces like you know other 15:25 15 minutes, 25 seconds neutraetical spaces which are there which are I've been talking about it could be gut health it could be sleep it could be stress it could be you know the 15:34 15 minutes, 34 seconds different and you will see that coming uh for example it could be even and you must realize in India today a significant portion of the population 15:43 15 minutes, 43 seconds with high you know purchasing power wants vegetarian and vegan options and vegan is a big trend at the you know top 15:51 15 minutes, 51 seconds of pyramid. So therefore cosmics is going to specialize this one because we realize that the center of gravity of 15:57 15 minutes, 57 seconds pix has moved to a lot of to hair and skin food and personal care. We need a we needed a brand in this space. The 16:04 16 minutes, 4 seconds approach has been very simple. Plot all the adjacencies which have significant runway for growth and ensure that there 16:12 16 minutes, 12 seconds is a brand that fits fits snugly into that position. 16:16 16 minutes, 16 seconds One last follow given you have to uh your targets are almost the same for all three 3 to 3.5 broadly uh given the kind 16:24 16 minutes, 24 seconds of kind of success flicks has seen 6x within 2 years or 3 years uh will it be fair to say that the most conservative 16:31 16 minutes, 31 seconds target is for cosmics out of these three I would think 4700 BC because of the different vectors of growth. 16:42 16 minutes, 42 seconds Okay, sure. Understood. Thank you. 16:45 16 minutes, 45 seconds Thank you. Next question is from the line of Latika Chopra from JP Morgan. Please go ahead. 16:53 16 minutes, 53 seconds Yeah. Hi Sagata and Pavan. Uh the first question was uh you know regarding the Indian acquisitions you know both the 17:01 17 minutes, 1 second brands that you bought 4700 BC and cosmics uh they derive fairly high revenue from the key product. Popcorns 17:08 17 minutes, 8 seconds is about 75% and you know protein powders is about 95% which of course established these brands with a high 17:15 17 minutes, 15 seconds consumer recall. How do you think uh you know about the other emerging parts of these brands to scale up and sales to 17:23 17 minutes, 23 seconds look like uh perhaps uh you know you could share some color on how this journey happened for uh clicks and beardo u and any learnings from there. 17:32 17 minutes, 32 seconds Thank you. 17:34 17 minutes, 34 seconds I think there are two three things. One is uh as you move first you need to have a certain core and a hero skills. Even 17:41 17 minutes, 41 seconds if the case of beardo for example we looked at one issue that suppose beard becomes a fad and within two years we 17:50 17 minutes, 50 seconds started the diversification process in terms of getting into things which are adjacent which are profitable and which 17:58 17 minutes, 58 seconds is in line with the brand equity. As you know Beardo is the so-called Harley-Davidson of male grooming. Now, Cosmix while it started with plant 18:07 18 minutes, 7 seconds protein powder, it has already gone into you know protein bars. Tomorrow there are enough opportunities in other 18:14 18 minutes, 14 seconds neutraetical spaces and you will see some of the launches. It has also got a pancake mix and you will see some of the launches that are coming very soon. What 18:23 18 minutes, 23 seconds we want to do is a one-stop shop for people who believe in vegetarian plant and vegan across neutraetical. example 18:32 18 minutes, 32 seconds hypothetically some people don't like fish oil you know in neutraetical like omega3 can I give them an option I mean so and therefore 18:41 18 minutes, 41 seconds there would be some similar approach of you know which we'll follow now uh 18:48 18 minutes, 48 seconds similarly for uh as far as 470 BC is concerned I think we have already gone into nachos there are pop chips there's 18:57 18 minutes, 57 seconds and that opportunity is huge in fact humongous which is there in 47 7 BC and also the good thing about 4700 BC is 19:06 19 minutes, 6 seconds that because of the institutional uh you know clientele across premium passengers of a lot of 19:13 19 minutes, 13 seconds foreign airlines, Air India as well as things like Vand Bharat. We are getting a opportunity to do a lot of you know 19:22 19 minutes, 22 seconds force trials you know uh like what paperboard did with Indigo. So that opportunity and this is with a very 19:28 19 minutes, 28 seconds premium set of audience and I think uh we want to enu uh we want to participate 19:35 19 minutes, 35 seconds in significant areas of gur snacking as an option and uh you will see that 19:42 19 minutes, 42 seconds playing out over the next uh you know we have looked at the innovation cycle when we acquired these brands over the next 19:50 19 minutes, 50 seconds 12 months and the other interesting thing is that which will aid the journey of 4700 BC see is the manufacturing 19:58 19 minutes, 58 seconds capability and the supply chain capability of Marico as you know food gross margins are slightly lower compared to you know premium personal 20:06 20 minutes, 6 seconds care and therefore cost structures sourcing manufacturing and that is where Marico the entire Marico weight can give 20:14 20 minutes, 14 seconds a significant competitive advantage and if I just add this uh let's say about cosmics it's just not a protein brand it's establishing itself into a 20:22 20 minutes, 22 seconds comprehensive wellness brand and therefore the opportunity is pretty large. For example, if I just talk about vitamins, mineral and supplement space, 20:30 20 minutes, 30 seconds that itself is about 11,000 crores. If we have to extend into multiple other categories, I think the opportunity is pretty large. And that's exactly what we 20:37 20 minutes, 37 seconds have done with let's say a beard or a plex. Well, we started it started with one particular category, but really expanded into multiple other retention categories. So we don't really think 20:45 20 minutes, 45 seconds that the opportunity is limited to the uh the the category where it is participating at this point in time but 20:53 20 minutes, 53 seconds it definitely has less to travel to a lot of adjacent categories but at the same time we don't believe in spray and prey so therefore we will get scale in 21:01 21 minutes, 1 second categories win and then move to multiple categories but we don't want to launch in 15 cate I don't have anybody to sell 21:08 21 minutes, 8 seconds to understood uh no that's very helpful I think just probably you partly answered 21:15 21 minutes, 15 seconds it but on 4700 BC it possible to share uh any color on what could be the potential margin levels at a scaled up 21:23 21 minutes, 23 seconds level or what you have you know say by 30 since you have talked about uh you know a revenue target uh because I'm not 21:31 21 minutes, 31 seconds sure if this brand um is aida positive it could be because of the institutional sales mix being high and also the 21:38 21 minutes, 38 seconds manufacturing bit that you alluded to if you could uh give us some more color on this. Thank you. 21:44 21 minutes, 44 seconds So as of now uh it is an AITA bleed and hopefully in the next 12 to 18 months we are targeting to become aa positive and 21:53 21 minutes, 53 seconds that is one of the reasons you know u you know we're not looking at making it 6x 7x because we believe in scaling up profitably. So therefore in the next 22:01 22 minutes, 1 second three years when we talking about 3.5x we also equally mindful about the fact that we have to make it aa positive in the next as I said 12 to 18 months and 22:09 22 minutes, 9 seconds then of course move into a at least mid to high single digit aida in the next few years. So that's how we are looking at this business. Of course other two 22:16 22 minutes, 16 seconds businesses are definitely at a much higher profitability scale at at this point itself. 22:22 22 minutes, 22 seconds Understood. Thank you so much and all the best. Thank you. 22:27 22 minutes, 27 seconds Thank you. Next question is from the line of Percy Pantaki from IIFL Securities. Please go ahead. 22:35 22 minutes, 35 seconds Uh hi just one clarification. I'm looking at slide 27 in which uh you have 22:41 22 minutes, 41 seconds given the uh uh uh uida margins for the 22:46 22 minutes, 46 seconds digital first uh PPC uh business. Uh but uh uh can you also give some idea on 22:55 22 minutes, 55 seconds aida margins for the food business please? over the same timelines. 23:01 23 minutes, 1 second So see basically foods it includes when we talk about foods from a diversification standpoint it also includes the core foods portfolio as 23:08 23 minutes, 8 seconds well which is safa masala oats plus honey soya etc where uh depending on what scale we're talking about for 23:16 23 minutes, 16 seconds example masala is already making company operating margin so once those uh you know different portfolio reaches a scale 23:23 23 minutes, 23 seconds of 200 250 crores we believe that it has a potential of making double digit operating margin and as it scales further can of close these two company operating margin. Why we are calling out 23:32 23 minutes, 32 seconds digital first PPC brand separately because these are newer businesses and there we had committed that we'll move to about double digit operating margin by 27 which we have a fairly good 23:40 23 minutes, 40 seconds visibility about and of course over the next three to four years we can move to uh you know team 7. 23:45 23 minutes, 45 seconds So to I think to just clarify if I take the composite blended foods it will be higher. So 23:51 23 minutes, 51 seconds so by FY30 would would we be able to do the similar kind of margins in foods as we have a target for digital first uh PPC? 24:00 24 minutes Yeah, I said it will be higher blended marketing higher even in FI30 with the new businesses coming in. 24:07 24 minutes, 7 seconds Yeah. Yeah. Yeah. Yeah. Include which includes the full core. Yes. It will be higher. 24:12 24 minutes, 12 seconds Understood. Understood. Secondly, just wanted to understand uh your framework for uh selecting which companies to 24:21 24 minutes, 21 seconds acquire. Uh how do you go about it? And uh a second part to that uh question is that do you think you would need any 24:29 24 minutes, 29 seconds more acquisitions over the next uh 3 to four years or now more or less you think that your portfolio is complete? 24:37 24 minutes, 37 seconds Definitely not in the next 3 weeks because my team needs rest and relaxation. They have been very busy but we will look into tuckins and maybe very 24:46 24 minutes, 46 seconds few spaces but I think more or less at least the food chessboard is complete now if there are opportunities in mass 24:53 24 minutes, 53 seconds foods there could be opportunities in mass foods uh as I said obviously in global like in a country like Vietnam 25:00 25 minutes Middle East if there is play yes and maybe again tuck in opportunities in personal care but yes I think we have done a majority of it we also wanted to 25:09 25 minutes, 9 seconds hurry it because of two things we don't on the FOMO premium to set in. We don't like paying 6x 7x you know in multiples. 25:16 25 minutes, 16 seconds Uh and secondly once you have all the three it's much more easier to synergize and get the cost advantages like say for 25:23 25 minutes, 23 seconds example can cosmics true elements and uh 4700 BC and have a common food GTM you 25:32 25 minutes, 32 seconds know those are the kind of synergies we now have critical marks to do. Uh so uh coming back to your first question I think what we look at I think we had 25:40 25 minutes, 40 seconds already cherrypicked broadly the categories then we look at the business I think we now have a complete playbook 25:48 25 minutes, 48 seconds and a analytics playbook on quality of revenue quality of the founders uh the kind of uh pro you know the headroom for 25:57 25 minutes, 57 seconds you know topline growth headroom for bottom line growth synergies with Marico so I think we look at uh these and you 26:06 26 minutes, 6 seconds For example, for every company we have chosen, we have also deselected certain things at the same point in time. So it starts with the category we want to get 26:15 26 minutes, 15 seconds into and then looks look at the companies and we obviously and things where are not adjust or are not no right to win say for example I can't win in 26:24 26 minutes, 24 seconds pet care if something in yogurt or ice creams is available I can't this because I don't have a right to win it is not an answer I will not get into it. 26:33 26 minutes, 33 seconds Understood. And in terms of the uh two uh big spaces which is foods and uh digital PPC uh there are subcategories. 26:43 26 minutes, 43 seconds Do you think that you are already in all the subcategories that you want to be or are there some categories of interest which are still unoccupied by you? You 26:53 26 minutes, 53 seconds need not name them but just wanted to so the trends might emerge. So we are constantly looking at trends. See if you look at the history of digital and food 27:01 27 minutes, 1 second is because we believe that our core has a certain amount of penetration and if we have to consistently grow in double digits we need to diversify. So we will 27:09 27 minutes, 9 seconds look at trends and adjustent trends. If something picks up we believe that it is something worth picking up we will do that. So we are continuously looking at 27:18 27 minutes, 18 seconds so what we need to do is our mix of countries into category. We need to have a majority of our portfolios as a 27:26 27 minutes, 26 seconds tailwind as opposed to headwind and that's the formula which we are looking at. 27:30 27 minutes, 30 seconds But as of today there is no subcategory where you feel oh this is really somewhere I need to be and I'm not there as of today. I mean could be some tuck 27:39 27 minutes, 39 seconds in opportunities but we are largely filled up my chestboard. 27:42 27 minutes, 42 seconds At least on the digital food side we are pretty content so to say. Uh maybe in the digital on the personal care we 27:49 27 minutes, 49 seconds could still be open as Shogata mentioned in you know marks categories of course we could be open like mass categories we open and of 27:56 27 minutes, 56 seconds course in digital in in the some of the countries of interest for us we are open. 28:02 28 minutes, 2 seconds Got it. Got it. That's all from having said that just to also address the thing that in Vietnam we are off we are doing an unique experiment with two 28:11 28 minutes, 11 seconds brands Astroman and Lashi because uh we are going to use the platform which is available and you know Vietnam is a very high social commerce market and one of 28:19 28 minutes, 19 seconds the co-founder is one of the biggest blogger and influencer in Vietnam. So I think we are also looking using this 28:27 28 minutes, 27 seconds platform to do organically need not be always everything inorganic. Similarly in Middle East I think some of the food brands has enough potential. 28:36 28 minutes, 36 seconds Got it Sagata. Thanks so much. 28:39 28 minutes, 39 seconds Thank you. Next question is from the line of Harit Kapoor from Invest. Please go ahead. 28:46 28 minutes, 46 seconds Uh yeah. Hi good afternoon. Uh so just had two questions. One was uh you know uh is there any incremental investment 28:53 28 minutes, 53 seconds you need to make in team scale up also you know as you've rapidly kind of expanded uh into new categories new 29:00 29 minutes businesses new brands I know that uh some of these basis milestone will still be with you in terms of old founders but 29:07 29 minutes, 7 seconds uh do you see that investment uh required in terms of team people etc uh as well that's my first question so I think we are doing some centralized 29:16 29 minutes, 16 seconds capability it could be uh helping on. So to give an give an analogy, can we have people 29:24 29 minutes, 24 seconds uh who learn from these businesses and take up these businesses because what we do is you know one year before the we 29:31 29 minutes, 31 seconds take over we start you know implanting people. Uh we have a central team that helps and I can give you analogy just 29:40 29 minutes, 40 seconds like operating partners in PE help we have people who are providing that service. I spend personally a lot of 29:47 29 minutes, 47 seconds time in this digital businesses because I believe this is a high growth this one and there is a centralized team of you 29:55 29 minutes, 55 seconds know people which are centers of excellence from a Marico this one to help and obviously in that we are also you know 30:03 30 minutes, 3 seconds you know what I call shaping up our own capability of doing high velocity supply chain because all the things which are 30:10 30 minutes, 10 seconds things like supply chain things like you know content all these capabilities which we are also building starting to build in us. 30:18 30 minutes, 18 seconds Got it. Got it. Got it. And and the second one was, you know, uh it seems like obviously you've you've done three fairly quickly. I just wanted to get 30:27 30 minutes, 27 seconds your sense of the market. Is there a more motivated kind of seller or uh uh you know a more motivated founder there 30:35 30 minutes, 35 seconds now uh you know with a more rational multiple environment here. uh you know you it's not only you you've seen uh you know some other companies also close 30:44 30 minutes, 44 seconds acquisitions recently uh obviously you have you have done it at a larger scale and pace uh but uh just wanted to get 30:52 30 minutes, 52 seconds your sense is it a more conducive market to buy is what what my my question was I think I would look at it that we are a 30:59 30 minutes, 59 seconds strategic founder of you know strategic partner of choice in terms of our ability to partner the founder into realizing his dreams and participate in 31:08 31 minutes, 8 seconds the this one's joint ly and therefore if you ask me we have continued to make these at far more rational valuations. 31:16 31 minutes, 16 seconds Uh I I read about something happened yesterday also. Uh so I think uh the secondly 31:23 31 minutes, 23 seconds uh I would think that uh we also I think the synergy which we provide in terms of 31:30 31 minutes, 30 seconds as a bouquet of service whether it works to cost to procurement or even say digital media buying you know with uh so 31:38 31 minutes, 38 seconds when we buy say through meta or you know Google in terms of all the brands 31:45 31 minutes, 45 seconds including Marico brands access to modern trade access to GT those are are things which is I think the mutually beneficial 31:53 31 minutes, 53 seconds for both the founders and us in terms of having this model. I think this model is unique and this model can only work if 32:00 32 minutes culturally the organization is tuned to this model which is leaving the founders some space and because we have a significant empowered culture in our organization. 32:11 32 minutes, 11 seconds Great. Thank you. Wish you all the best. 32:14 32 minutes, 14 seconds Thank you. Before we take the next question would like to remind participants to ask a question please press star N1 on your phone. 32:24 32 minutes, 24 seconds Next question is from the line of Akshai Krishnan from ICICA securities. Please go ahead. 32:30 32 minutes, 30 seconds I think so. So so if you look at the playbook we emphasize more on retaining the founders DNA. Now how do we prevent 32:38 32 minutes, 38 seconds the cultural frictions while fil imposing Marico's operation discipline on the governance standards? So I just 32:45 32 minutes, 45 seconds want to understand the overall framework into so obviously we have a point of view on the portfolio we have point of view on 32:53 32 minutes, 53 seconds the you know the governance the regulatory the quality reputation I think we learn with the founders and if 33:01 33 minutes, 1 second you notice I think we have been also entrepreneurial and uh if you look at beardo beardo we integrated 100% we bought in 2020 this still the mojo and 33:10 33 minutes, 10 seconds the secret source of beer we have been able to preserve and therefore those three years are a learning you know for all of us to understand the unique thing 33:19 33 minutes, 19 seconds obviously as I said these four five things which is capital we allocation of capital portfolio you know compliance uh 33:27 33 minutes, 27 seconds GMP those are non-negotiable got it got perfect okay so uh my my 33:35 33 minutes, 35 seconds second question is on uh when we pri uh it's on uh prioritizing adencies uh like expansion within the existing 33:44 33 minutes, 44 seconds categories or entering completely into new verticals. Now what are the strategic fillers that determine you on 33:52 33 minutes, 52 seconds the adjacency versus white spaces and also on the expansion spree? 33:57 33 minutes, 57 seconds I think uh it's the headroom for growth and a right to win. At the same time, we we believe in focus and therefore at if you look at all the brands which are 34:06 34 minutes, 6 seconds acquiring have significant amount of hero SQS or proven SQS, we don't believe in spraying and praying. Uh even we have 34:13 34 minutes, 13 seconds been prudent enough into going into GT we have a I think a broad playbook into into GT that only if there's a scale and 34:21 34 minutes, 21 seconds have a limited amount of SK. So I think it's a broad disc this one but you must realize the good thing we have is that 34:28 34 minutes, 28 seconds uh the business model allows us to continuously experiment. So you keep on experimenting you start small either scale up or drop fast. 34:40 34 minutes, 40 seconds Okay. Okay. But but how do you determine this white space and and what is the time frame that you generally take up to determine this white spaces? See it is a 34:49 34 minutes, 49 seconds continuous process because there's lot of social listening in today's world as I said that it's a very high velocity innovation just to give you an example 34:56 34 minutes, 56 seconds innovation cycle can be 60 to 90 days in these digital brands in Marico it can be anything between 8 to 12 months so it's a very very compressed low I mean we 35:05 35 minutes, 5 seconds don't haveq's in this you just put in experiment with one partner in commerce or in e-commerce see if it works or in 35:13 35 minutes, 13 seconds D2C it there are action standards whether it respect to repeats, trials, uh the kind of reviews you get and 35:21 35 minutes, 21 seconds determine that within 90 days or 120 days you scale up or you drop. 35:27 35 minutes, 27 seconds Oh, perfect. Perfect. And one final thing uh now now on the digital first playbook uh uh India and Vietnam has 35:34 35 minutes, 34 seconds really played up well for us. And what's the structural difference in Indonesia? How could this alter the unit economics? 35:41 35 minutes, 41 seconds Is it on the consumer behavior or the platform? I'm just giving you no I gave you a hypothetical example that if there 35:49 35 minutes, 49 seconds is a a ecom and it's not that I'm saying I'm join going into Indonesia. I said that I think that was it was a respond 35:57 35 minutes, 57 seconds to the question that can the Vietnam thing be replicated in other countries. 36:01 36 minutes, 1 second I talked about that see a traditional GTM obviously has a lot of entry barriers. A digital ecosystem has 36:09 36 minutes, 9 seconds less entry barriers. You can experiment in a country and entry into a country. So I gave it as a hypothetical example. 36:16 36 minutes, 16 seconds Okay. Okay. Okay. Okay. Got it. And one final thing sir. So I just wanted to understand and dissect between the chat and the TV evolving in the competitive 36:25 36 minutes, 25 seconds intensity. Is the incremental growth coming more on the relative early stage growth or is it more on the expansion spring? 36:34 36 minutes, 34 seconds If you notice most of our businesses including plates and uh say this cosmix has a significant D2C play which has 36:43 36 minutes, 43 seconds therefore high amount of repeat users and a loyal user in a D2C base and a profitable D2C play. Now obviously food 36:51 36 minutes, 51 seconds is a far more you know flirtatious category based on taste and far more exper experimentive category that's a 36:57 36 minutes, 57 seconds doesn't have a D2C play but our LTV by CAC and repeat rates for both 37:03 37 minutes, 3 seconds these businesses where there is high D2C is pretty high and best in class 37:11 37 minutes, 11 seconds and and how will this improve the uh margins and the earnings from 37:18 37 minutes, 18 seconds no I didn't Get your question. Margins margins and the earnings momentum. So what will be the uplift into this? 37:27 37 minutes, 27 seconds I have I think we have given the respond. I think uh we have done beardo now makes double digit aeta. We are there enough thing there are enough on 37:34 37 minutes, 34 seconds cost. There are zos in improving rorowax. There are net revenue management. There are multiple levers in play to drive the margins. 37:43 37 minutes, 43 seconds There also a lot of stuff on the back end side with the supply chain logistics procurement. 37:48 37 minutes, 48 seconds For example, uh we have taken in-house some of the products from Beardo and the gross margin has got significantly uplifted. So there'll be time when uh we 37:55 37 minutes, 55 seconds would deploy some of these things and therefore we're very confident of the margin guidance that we've given of double digit in the next year and hopefully in teams over the next three four years. 38:05 38 minutes, 5 seconds Got it. Got it. That's it for my good luck and all. Thank you. Thank you. Thank you. 38:11 38 minutes, 11 seconds Thank you. Next question is from the line of Nitin Gupta from MK Global. Please go ahead. 38:18 38 minutes, 18 seconds Yeah, thanks for taking uh my questions. 38:21 38 minutes, 21 seconds Uh first question is around like I want to understand the thought process around management bandwidth. So far it has been creeping acquisition where the founders 38:29 38 minutes, 29 seconds have stayed with us and uh sort of helped grow the brand. Now as we sort of gain 100% ownership uh of some of the 38:37 38 minutes, 37 seconds brands how are we getting prepared for the management transition? 38:44 38 minutes, 44 seconds So I think we have only integrated so far just herbs, blicks and true elements. We have obviously leaders managing those businesses. There is 38:52 38 minutes, 52 seconds still a time away including some of the brands which you have just acquired three years to go and as and when uh we have an evolving uh you know digital 39:01 39 minutes, 1 second business structure and we have we have to ensure that uh we are have dedicated people already helping these businesses 39:08 39 minutes, 8 seconds grow and uh therefore there is no there's a separate it's almost runs as a as I call Marico 2.0 zero engine 2. So 39:17 39 minutes, 17 seconds therefore there is no overlap of management bandwidth. Perhaps the only overlap is me and some of the one or two XCOM members but hardly any management 39:25 39 minutes, 25 seconds they're dedicated people looking into these businesses. 39:30 39 minutes, 30 seconds Sure this is good. And second question pertains to like with this acquisition are we the largest digital first SMCG 39:36 39 minutes, 36 seconds company in India and also like do you have any aspiration of uh aspirational figure of digital brand salience uh like 39:45 39 minutes, 45 seconds for 2030 like overall how much of our business will be from digital. So I think we want to be a scale player which 39:53 39 minutes, 53 seconds is profitable and admired and as I said uh have I think transforming ourselves in from a incumbent to that as well as 40:02 40 minutes, 2 seconds having some place in some of the international markets and in terms of size for the total business that called out in the opening commentary which is about 4,000 crores 40:10 40 minutes, 10 seconds is what we think we should be able to reach by FY30 for all the digital brands globally. 40:18 40 minutes, 18 seconds Sure. Thank you. And the last question pertains to commerce. So I want to understand like the channel salience for our domestic revenue and also for the 40:26 40 minutes, 26 seconds 22% of the portfolio where uh we have the food and drink for the first brand. 40:33 40 minutes, 33 seconds So in the core it's 5%. These ones obviously is higher depending on some of the brands but as I said that ultimately 40:41 40 minutes, 41 seconds some of the brands have a very strong D2C also. 40:46 40 minutes, 46 seconds Sure about it. Thank you and all the best. Thank you. Thank you. 40:53 40 minutes, 53 seconds We'll take our next question from the line of Mi Sha from Namora. Please go ahead. 41:00 41 minutes Um, hi team. Uh, thank you for taking my questions and congrats on a great set of acquisitions. Uh, so firstly uh uh 41:08 41 minutes, 8 seconds wanted to just understand the real penetration opportunity. uh for a long period of time we had seen suffo as 41:14 41 minutes, 14 seconds distribution was just limited to metros and uh then probably went into tier one uh while in the next few years these new 41:23 41 minutes, 23 seconds brands can have uh scale up opportunity in metros how do you see the opportunity for these brands scaling up beyond metro 41:31 41 minutes, 31 seconds tier 1 over the next 3 to 5 years so that's my first question so I think uh if you look at uh the 41:40 41 minutes, 40 seconds contribution of organized trade in the current uh you know amongst the TG these brands operate it will be more than 50%. 41:48 41 minutes, 48 seconds If we look at some of the metros today, ecom plus modern trade itself is reaching 40% plus in the some of the top metros. So I don't see the need for 41:56 41 minutes, 56 seconds penetrating right now. There is enough opportunity in the premium focus is important. Profitability is important 42:04 42 minutes, 4 seconds and one of the reasons as you know that safa hasn't penetrated is because of pricing. Having said that, we would get 42:11 42 minutes, 11 seconds into some GT but having a SKUs and price points which are different. For example, I mean uh you know in popcorn there 42:20 42 minutes, 20 seconds could be a hypothetically a 10 rupee 20 rupee price point which exists and you can use GT for that. 42:30 42 minutes, 30 seconds Understood. Got it. Uh second actually just wanted to check on popcorn. Uh there's you know there's a very large 42:37 42 minutes, 37 seconds player in popcorn in the Mars market. Uh now this is in the gourmet format. Uh any plans to eventually get into uh 42:46 42 minutes, 46 seconds those market so that you know one-stop shop thought process that you had if somebody wants to think of popcorn one should think about Marico. So thoughts around that. 42:57 42 minutes, 57 seconds So if I look at it, masala oats uh which is priced at 18 rupees is available and 43:04 43 minutes, 4 seconds two and a half lakh outlets. So h and we do have a 10 rupee 20 rupee popcorn in 43:09 43 minutes, 9 seconds 4700 BC which is available that is one of the biggest synergy we are looking at uh to you know support 43:18 43 minutes, 18 seconds them on the GT distribution for the price point because the price points are actually very very relevant for the kind of stores that we go to. So that's an 43:25 43 minutes, 25 seconds immediate uh you know quick win that we're looking at. 43:30 43 minutes, 30 seconds Got it. Thank you. Uh and lastly just wanted to check uh on the if you see the current founders they have done a great 43:37 43 minutes, 37 seconds job in uh scaling up this business and then now anchoring and partnering with Marico to take this further. Uh the 43:44 43 minutes, 44 seconds synergies of Marico we do understand. uh but the kind of investments that will be required will this have any bearing uh 43:52 43 minutes, 52 seconds except for the other two which are you know profitable uh will this have any bearing on the margin profiles uh in the 43:59 43 minutes, 59 seconds near to medium-term uh over the next few years for Marico in any sorts uh you know or the these margins that we see on 44:07 44 minutes, 7 seconds the other brands will hold up uh or you will uh these margins can for some time come down uh as in they are in the investment phase. 44:16 44 minutes, 16 seconds we have indicated the sustainable margins for both the brands and uh see I I think at the end of the day if the unit 44:25 44 minutes, 25 seconds economics is right you don't need to do it and as I said that I don't in fact the margins for the rest of the brands will improve and if you look at the two 44:33 44 minutes, 33 seconds case studies which we have put in the presentation which is clicks and beardo there has been a significant you know improvement in the margins because don't 44:41 44 minutes, 41 seconds underestimate the power of common buying the Marico procurement Marico Marco supply chain and Marico manufacturing 44:48 44 minutes, 48 seconds and Mir if you meant that whether it'll have any impact on the group margins uh because of investment phase the answer is no because the guidance that we had 44:56 44 minutes, 56 seconds given at the end of the earnings cost for the next year we had considered that these acquisitions will come through and we continue to maintain that which is 45:05 45 minutes, 5 seconds double uh mid teams operating profit growth is something that we continue to hold from a group perspective 45:12 45 minutes, 12 seconds got it yes that is what I was referring to power thank you uh and Wishing you all the very best. Thank you. 45:19 45 minutes, 19 seconds Thank you. Next question is from the line of Anurag Dal from Philip Capital. Please go ahead. 45:26 45 minutes, 26 seconds Yeah. Yeah. Hi. Thank you for the opportunity sir. Uh so basically we have developed this playbook behind this acquisition you know referring to 45:33 45 minutes, 33 seconds digital first consumers and you know rapid innovation cycles fment positioning. Could we see that eventually this this will reshape how 45:42 45 minutes, 42 seconds Marico builds and scale brands within its core portfolio? So do you see some elements of this model being embedded into legacy brands as well where it 45:50 45 minutes, 50 seconds seems that the growth is somewhat tapering or do we I mean just wanted to get your response on this. Yeah, I think uh we can get inspiration from 45:59 45 minutes, 59 seconds premiumizing some of the hair oils or serums for example and participating far more aggressively. Obviously in the 46:08 46 minutes, 8 seconds premium uh part of both hair oils and uh serums there are digital brands and therefore this learning can be 46:15 46 minutes, 15 seconds transplanted into we participating in those much more aggressively and as I said in Vietnam since the market is 46:23 46 minutes, 23 seconds still nent and it is maturing we have already started two brands as an example. One is while our X-Men will 46:31 46 minutes, 31 seconds continue to play in the mass a super premium digital brand a premium digital brand called Astroman. Similarly in the 46:38 46 minutes, 38 seconds case of shampoo and you know female grooming and other adjacent categories like wash do and all we have used the 46:47 46 minutes, 47 seconds brand called Lashi which is a hair hair and skin food. It's a hair and skin food brand uh which we are experimenting with 46:54 46 minutes, 54 seconds it. So therefore the core also has digital opportunities and we believe that capability will help us in participating in that. If you look at 47:03 47 minutes, 3 seconds already things like we are doing like cold pressed oils or some of the premium we have just uh premiumizing serums we 47:10 47 minutes, 10 seconds are premiumizing hair oils that journey has already started and because that has happened because of both inspiration capability building and learning from the digital businesses. 47:21 47 minutes, 21 seconds Got it. Thank you so much. Thank you. 47:28 47 minutes, 28 seconds We'll take our next question from the line of Vaynav Guram from Craving Alpha Wealth Fund. Please go ahead. 47:36 47 minutes, 36 seconds Yeah. Uh hi sir, thank you for taking my question. Just two three questions from my end. First of all, I wanted to understand that since we have been 47:44 47 minutes, 44 seconds acquiring Dans recently, so uh like are we sort of lacking for GI growth opportunities? 47:54 47 minutes, 54 seconds So what I think you're asking about whether we are confident about organic growth opportunity. 47:59 47 minutes, 59 seconds Yes, I was asking if we are lacking all that growth opportunities. 48:03 48 minutes, 3 seconds I think if you look at it uh we we believe that uh always these acquisitions are a kind of an 48:12 48 minutes, 12 seconds accelerator. It can't be a what I call an escape button for not doing organic growth. And if you look at some of our 48:19 48 minutes, 19 seconds organic growth volume growths uh we continue to be reasonably good and uh I don't think it's a question of organic 48:26 48 minutes, 26 seconds growth opportunities. Having said that in any portfolio if you see you participating higher you know penetrated categories if you have high growth 48:36 48 minutes, 36 seconds ambitions and we do have high growth ambitions of doubling in 5 years which translates to a kagger of anything between 13 and 14% you need 48:44 48 minutes, 44 seconds diversification. So it's a combination a lot of food is actually been organic the diversification like if you look at the oats journey if you look at the honey 48:52 48 minutes, 52 seconds journey soya journey so I think it's a combination of organic and inorganic and the reason we have acquired an inorganic 48:59 48 minutes, 59 seconds in digital is that that's business model is something which is very difficult to build organically because the organizational capability and gearing is 49:07 49 minutes, 7 seconds towards and therefore sometimes you can accelerate by doing this and we have been extremely uh you know prudent in 49:14 49 minutes, 14 seconds capital allocation And the valuation has been one of the best in the industry. 49:18 49 minutes, 18 seconds And again these are not random acquisitions. It's a well thought out strategy in terms of identifying what are the portfolio gaps. What are the categories which has significantly large 49:27 49 minutes, 27 seconds opportunity of growth and also trying to look at in terms of our existing equities do have a right of right to win or not and then we go after these 49:35 49 minutes, 35 seconds acquisitions and that all these things are also we have you know detailed out in terms of uh in the deck that we have shared and it's very clearly a top up to 49:42 49 minutes, 42 seconds our growth and we believe that this will continue to add uh you know value over the long term. 49:50 49 minutes, 50 seconds No sir also just wanted to understand what kind of acquisitions are we looking for in the future let's say 3 2 4 years 49:58 49 minutes, 58 seconds down the line and uh one more question on 4,700 BC banks uh like how are we 50:05 50 minutes, 5 seconds planning to scale this premium bank considering our pre our major distribution channels are through GT 50:14 50 minutes, 14 seconds I think too premature to think of acquisition I have indicated already uh we could look at something but there we can't be specific as far as 4700 BC is 50:24 50 minutes, 24 seconds concerned I mean there is enough this one I said GT is an accelerator for Marico I think uh as you know a lot of 50:31 50 minutes, 31 seconds our brands in terms of we have been significantly overindexed even in our core on modern trade and we have been uh developing these channels and these 50:40 50 minutes, 40 seconds anyway these brands are run independently and they have strong uh opportunity and the if you look 50:48 50 minutes, 48 seconds big commerce or e-commerce or more I mean they they are going to grow. So there is GT is just a CG with Marico 50:56 50 minutes, 56 seconds that further accelerates that's about it. Okay. Thank you so much. 51:03 51 minutes, 3 seconds Thank you ladies and gentlemen. That was the last question for today. On behalf of Marico Limited we conclude this conference. Thank you for joining us.