Tata Consumer Products — Q4 FY26

Tata Consumer Products Ltd Q4 FY2025-26 Earnings Conference Call https://www.youtube.com/watch?v=ZBFcUjMcY0g Published: 5 days ago

0:01 1 second Ladies and gentlemen, good day and welcome to Tata Consumer Products Q4 FY26 earnings conference call. As a 0:08 8 seconds reminder, all participant lines will be in the listenon mode and there will be an opportunity for you to ask questions after the presentation concludes. Should 0:17 17 seconds you need assistance during the conference call, please signal an operator by pressing star then zero on your touchstone phone. Please note that 0:24 24 seconds this conference is being recorded. I now hand the conference over to Miss Nidi WHMA, head of investor relations and corporate communications. Thank you and over to you. 0:35 35 seconds Thank you. Uh and welcome everyone to the Q4 FY26 conference call for TA consumer products. Uh we announced our 0:44 44 seconds results for the quarter and year a while ago and we also shared the materials. 0:49 49 seconds Hope you've had some time to go through those. Um in the call today I'm joined by Mr. Sunil Duza managing director and CEO Mr. Ashish Goena group CFO and Mr. 1:01 1 minute, 1 second Ajit Krishnan Kumar executive director and COO. So in terms of the format the way we usually do we'll spend about 15 1:09 1 minute, 9 seconds 20 minutes walking you through the key highlights of the performance and then we'll open the floor for Q&A. Um I just 1:17 1 minute, 17 seconds want to draw your attention to the disclaimer statement that is on the screen. [clears throat] With that I hand it over to Sun. 1:25 1 minute, 25 seconds Thanks Billy. So in summary our consolidated revenue for the quarter grew 18 with the India business 1:32 1 minute, 32 seconds delivering 16% UVG. For a full year we've crossed 20,000 crores. Revenue grew 15% with India business UVG of 13. 1:42 1 minute, 42 seconds India T volumes grew four. re revenue was minus1 primarily because you've taken price cuts as we've uh got seen te 1:51 1 minute, 51 seconds cost go down just as a rider uh margin has come back to where it should be as a result of this uh for the full year 2:00 2 minutes revenue for te was up six salt delivered 12% revenue growth with a stellar volume 2:08 2 minutes, 8 seconds growth as well uh overall for the full year top line was up 14 growth Businesses crossed the 4,000 cr growing 2:17 2 minutes, 17 seconds 24% in this year. For the quarter growth has come back to where it should be with 33%. Sen grew 69 in Q4 and 46 full year. 2:30 2 minutes, 30 seconds RTD continued its strong performance 28% volume 23% revenue uh in Q4 and overall 2:38 2 minutes, 38 seconds was 10% for the year. Capital Foods and Organic India grew eight uh while the domestic business grew 15 uh but because 2:46 2 minutes, 46 seconds of the Middle Eastern uh issues uh shipping got disrupted for the month of March including for the US etc where we 2:55 2 minutes, 55 seconds trans shship via Dubai and uh therefore we had a hit on the uh international business for the full year combined 3:02 3 minutes, 2 seconds revenue was up 12 international maintained a small strong trajectory it's actually now competing for growth growth numbers with India. Uh it 3:11 3 minutes, 11 seconds delivered 11% constant currency growth in Q4 led by the US coffee business. 3:15 3 minutes, 15 seconds Full year was nine. Uh non-branded was up by 41 in Q4 and for full year by 23 with healthy profitability. 3:25 3 minutes, 25 seconds Profitability in the non-branded which was elevated last year due to pricing uh 3:31 3 minutes, 31 seconds is now back to normal. Consolidated Aida grew 27 top line 18 Aida 27 and 3:38 3 minutes, 38 seconds therefore margin expanded 100 bips to 14.6 for the full year because of the softness in the first two quarters. Aida margin for the full year was 13.9. 3:49 3 minutes, 49 seconds Working capital was down now from to 21 from 26 days last year and India was minus2 versus minus1 last year. 3:58 3 minutes, 58 seconds Innovation to sales ratio came in at a 4.5 with 80 new product launches during the year. Uh the board recommended a 4:06 4 minutes, 6 seconds dividend of rupees 10 per share which is a substantial increase on where it was last year. 4:13 4 minutes, 13 seconds Uh so for the quarter India beverages 1,600 growing four India foods up 21 4:20 4 minutes, 20 seconds international up 21 non-branded of 43 overall 5,400 crores uh at 18% growth 4:28 4 minutes, 28 seconds for the full year India beverages up eight India foods 18 international up 16 4:36 4 minutes, 36 seconds and non-branded up 25 overall a 15% growth constant currency 13 4:44 4 minutes, 44 seconds uh I will not repeat the numbers but to say that while AIDA grew 27 PBT was up 32% 4:53 4 minutes, 53 seconds group net profit was before breaking before exceptionals was 48 uh and group net profit grew 22 and 5:03 5 minutes, 3 seconds we're now sitting with roughly 3,000 crores of net cash. 5:09 5 minutes, 9 seconds Sorry just just if you go back there is one more uh uh metric that we are publishing starting this quarter is 5:16 5 minutes, 16 seconds adjusted EPS and that's the the reason is because uh we also amortize some of the brands that we've acquired and as 5:25 5 minutes, 25 seconds the amortization winds down uh we will have an expansion on EPS. So we will continue to show adjusted EPS also as a factor. 5:35 5 minutes, 35 seconds So for the full year 15 top line 12% Aida growth 23% PBT 24 5:43 5 minutes, 43 seconds group net profit before exceptionals 20 after uh and EPS adjusted EPS of 17.3 reported EPS of 15.6. 5:58 5 minutes, 58 seconds So our&P to sales was slightly soft this quarter because we spent a significant amount in Q2 and Q3. Uh so we normalized 6:08 6 minutes, 8 seconds it a bit but as I said directionally we will be the 7.5 to 8.5 uh ratio as we go 6:16 6 minutes, 16 seconds forward. Uh salt market share was up by 100 bibs. T market share was down 50 but just to reiterate uh Neielson doesn't 6:25 6 minutes, 25 seconds capture uh Quitcom and ecom which is now 21% of our portfolio. Uh modern trade uh 6:32 6 minutes, 32 seconds half of modern trade doesn't report their numbers and they extrapolate. Uh and if you triangulate between home 6:39 6 minutes, 39 seconds panel, the Canar home panel uh reported numbers by competition and the Neielson numbers, you would figure that these 6:47 6 minutes, 47 seconds numbers are a bit off. Going forward, we will probably stop reporting this because uh we use them now only for 6:55 6 minutes, 55 seconds execution and not for actual benchmarking. 7:00 7 minutes uh I talked about growth businesses uh contributed 31% of our business India 7:07 7 minutes, 7 seconds business in FI26 for the quarter grew 33 contributing 33%. 7:14 7 minutes, 14 seconds Uh we have finished our entire roll out of our new go to market system. So in geographies where salt is very strong 7:22 7 minutes, 22 seconds we've got salt distributor and everyone everything else. uh there are 64 cities where a salt and tea combined business 7:31 7 minutes, 31 seconds is overwhelming. So that's we call it core and the rest is clubbed under the growth distributor and in about 17 7:39 7 minutes, 39 seconds cities we were common distributors but we've changed the frequency and or the number of salesmen who go to the outlet. 7:46 7 minutes, 46 seconds Uh as a result of this, we've already started to see execution metrics, especially lines per outlet go up 7:53 7 minutes, 53 seconds significantly and we do expect that to start to roll into actual revenue numbers. 8:01 8 minutes, 1 second Uh we have continued to focus on channels of the future. Modern trade was up 20 contributing to 15% of India 8:08 8 minutes, 8 seconds business. uh ecom plus quickcom was up 62 uh with uh uh contributing to 19%. We 8:17 8 minutes, 17 seconds incubated three uh channels uh during this year. Food services exited at an ar 8:24 8 minutes, 24 seconds of 170 crores uh present in roughly 60 cities. Uh vending exited at an AR 8:32 8 minutes, 32 seconds of,000 sorry 100 crores and we have now about 8,000 plus machines. Pharmacy exited at a AR of 30 crores and we cover 8:41 8 minutes, 41 seconds about 42,000 outlets nationally. Now innovation to sales we continue to ramp 8:48 8 minutes, 48 seconds up. It's now 4 and a half% of our uh sales uh and we've grown innovation 8:55 8 minutes, 55 seconds revenue 7x from where we started. We launched 80 new products this year roughly doubling the number from last year. 9:05 9 minutes, 5 seconds And our innovation was all focused on the three pillars that we've defined, health and wellness, convenience and premiumization. 9:13 9 minutes, 13 seconds We also made strides on sustainability. 9:17 9 minutes, 17 seconds Uh we have featured in the S&P global sustainability yearbook for the second consecutive year. Uh we have ranked among top three companies among India's 9:26 9 minutes, 26 seconds 60 most sustainable companies by BW business world for second year in a row. 9:33 9 minutes, 33 seconds uh and since formation uh we've grown top line at a 16% CAGGR 9:40 9 minutes, 40 seconds uh for India 7% for international consolidated at 13%. Aida has grown 9:46 9 minutes, 46 seconds ahead at 14% group net profit has grown still ahead at at 22%. 9:54 9 minutes, 54 seconds And we've driven shareholder returns net working capital in India is minus2 total working capital the the point to note is 10:03 10 minutes, 3 seconds our working capital in India is less than while we've more than doubled the business it is less than when we started 10:09 10 minutes, 9 seconds off uh 6 years back uh adjusted EPS more than three and a half times a free cash 10:16 10 minutes, 16 seconds flow to Eida was 107% and we've consistently improved our dividends 10:25 10 minutes, 25 seconds In terms of the macros, uh tea prices largely benign right right now trending about 5% ahead of where they were the 10:32 10 minutes, 32 seconds same period last year. Uh but barring any unforeseen climate change, we we should have largely benign benign tea 10:40 10 minutes, 40 seconds costs. Coffee prices coming down right now as we speak it is $2.99 is what 10:47 10 minutes, 47 seconds Arabica is trading at. uh which means uh in the next probably 2 months or so you'll start to see coffee margins climb up in the US. 11:00 11 minutes Uh I talked about 4% volume uh one minus 1% of revenue for India packaged 11:08 11 minutes, 8 seconds beverages. Coffee also grew 20% in Q4 and overall for the full year 43%. 11:16 11 minutes, 16 seconds uh India foods uh volume was up 15 primarily driven by salt but uh net revenue was also up 21 and salt on 11:26 11 minutes, 26 seconds already a high market share we continued to improve uh market share from there sen grew 69% with broad-based 11:35 11 minutes, 35 seconds contribution across categories uh dry fruits and uh coldress oils which we've launched about 2 years back uh as of now 11:44 11 minutes, 44 seconds are close to hitting of 500 cr each ARR 11:50 11 minutes, 50 seconds uh RTD we've grown 28% on volume 23% on revenue and 260 crores total Tata Copper 12:00 12 minutes Plus continues to go from strength to strength up by 33% in Q4 and 26% for the full year. 12:09 12 minutes, 9 seconds uh capital foods and organic India organic India 135 crores capital foods 213 combined gross margin as we said 12:16 12 minutes, 16 seconds roughly around 45 to 50% above our base which is at 47%. 12:21 12 minutes, 21 seconds Domestic business in Q4 grew 15 13% overall in FI26. Exports declined primarily because of the hit in Q4 very specifically the month of March. 12:34 12 minutes, 34 seconds Non-branded business uh revenue was up 41. Soluble revenue was up 43. 12:42 12 minutes, 42 seconds Uh Starbucks uh good part is now this is the third successive quarter of positive same store sales growth. same store 12:50 12 minutes, 50 seconds sales growth of five uh and total Starbucks growth of 7%. Uh we opened 23 12:57 12 minutes, 57 seconds net stores, 502 total stores and now we present in 80 cities. 13:03 13 minutes, 3 seconds Uh UK revenue growth of three, there's volume growth of four. Uh market share continues to retain at a 19 and value 13:12 13 minutes, 12 seconds market share in fruit and herbal continues to inch up. US very strong revenue growth driven by price volume 13:19 13 minutes, 19 seconds was a bit soft market share continues to improve uh bags is 4.3 and we continue 13:26 13 minutes, 26 seconds to gain share on K cups as well uh Canada we had volume growth in Q4 and revenue 13:33 13 minutes, 33 seconds growth of plus 7 big part was focus is to grow we've already got close to a 4550 share in black focus is to gain 13:41 13 minutes, 41 seconds gain speciality so if you observe speciality grew faster and base overall value market share of 25 13:51 13 minutes, 51 seconds I hand it over to Ashish to talk to you about the financials yeah thank you Sil as Sil mentioned we had a strong quarter 13:59 13 minutes, 59 seconds standalone revenue growth of 16% consolidated revenue grew 18% uh growth was largely volumeled and broad-based 14:07 14 minutes, 7 seconds with India growing at 13% international and non-branded delivering 11% and 41% respectively ly in constant currency. Uh 14:16 14 minutes, 16 seconds growth was also complemented by margin expansion. Our standalone aida grew at 14:23 14 minutes, 23 seconds 51% while consolidated aida saw 27% growth. U margins on aida level expanded by 100 basis points over last year. 14:37 14 minutes, 37 seconds uh in terms of consolidated financials I think we have spoken about the numbers 14:45 14 minutes, 45 seconds full year growth was at 15%. And uh eida growth was 12%. Of course we were impacted by the high te cost in the 14:53 14 minutes, 53 seconds first half of the year and through the year uh coffee in US special specifically remained elevated uh and therefore 15:01 15 minutes, 1 second overall aida margins contracted versus last year. 15:07 15 minutes, 7 seconds on segment I think nothing particular to report India has significantly improved over last year while international and non-branded we saw some contraction in 15:16 15 minutes, 16 seconds margins while the growth remains healthy largely on account of the overturning of the commodity cost uh US coffee in in 15:24 15 minutes, 24 seconds international and overall terminal price impacts in non-branded coffee I think that's all from my side we will probably spend more time on Q&A turning back to 15:33 15 minutes, 33 seconds NI Thank you. Thank you. Thank you. Yeah moderator. We can go to the Q&A queue now and requesting all participants to 15:42 15 minutes, 42 seconds limit their questions to two at a time please. 15:46 15 minutes, 46 seconds Thank you. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their 15:55 15 minutes, 55 seconds touchdown telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants 16:02 16 minutes, 2 seconds are requested to use handsets while asking a question and to restrict to two questions at a time. Ladies and gentlemen, we will wait for a moment while the question queue assembles. 16:15 16 minutes, 15 seconds We'll take a first question from the line of Mi Sha from Namora. Please go ahead. 16:21 16 minutes, 21 seconds Hi sir, thank you for taking my question and congrats on a good set of numbers. 16:25 16 minutes, 25 seconds Uh firstly on gross margins, uh they have compressed sequentially. uh this seems largely due to the non-branded coffee and international business while 16:34 16 minutes, 34 seconds India margin seems to have improved uh with the elevated cost levels from crude and fuel etc that we are seeing now uh 16:42 16 minutes, 42 seconds can one expect the near-term margins to be under pressure uh and what level of margins should one consider for fi27 16:50 16 minutes, 50 seconds especially when you say will go back to 7 and a half from 6.7 in FI26 uh that we saw um uh uh and in and with 16:59 16 minutes, 59 seconds rising pressure on RMs that we have seen currently. So that's my first question. So so let let me answer that this thing. 17:08 17 minutes, 8 seconds We've seen some increases in packaging costs etc. uh number one. Uh number two, we've seen some increases because of uh 17:17 17 minutes, 17 seconds places where we use LPG. Now the good and bad part of our portfolio. I think we've got a fairly balanced portfolio of uh I would say slightly stronger 17:25 17 minutes, 25 seconds commodities and a piece of highly processed uh uh food. U 17:34 17 minutes, 34 seconds so far we've not seen a big impact on uh the margins uh per se. Uh now if fuel 17:42 17 minutes, 42 seconds price goes up then it's broad-based inflation and then it's a different story. But with the current set of variables uh we don't see a high 17:52 17 minutes, 52 seconds pressure per se and I think we've got enough uh in our uh uh equity for all 17:59 17 minutes, 59 seconds the categories for us to take increases to make sure we will mitigate margin. So uh let me put it this way. I wouldn't 18:07 18 minutes, 7 seconds lose sleep on trying to figure out margins at least in the next 2 3 months. 18:11 18 minutes, 11 seconds uh longer term your guess is as good as mine but uh right now we've remained confident of delivering topline numbers 18:19 18 minutes, 19 seconds uh and a bida ahead of uh topline right and topline we will grow at double 18:25 18 minutes, 25 seconds digits uh so yeah understood just just one small 18:32 18 minutes, 32 seconds clarification on that sunil should we still hold to that 50 70 basis points of expansion over fi26 that we 18:40 18 minutes, 40 seconds had indicated or do you think that it can be it can come with a little bit of delay? 18:46 18 minutes, 46 seconds No, no, no. So 50 to 75 80 whips is a given. I mean there it's not an option. 18:52 18 minutes, 52 seconds We will deliver it. Number one. Uh number two just a rider saying that we've got seasonality in our businesses. 19:01 19 minutes, 1 second So it'll be quarter to quarter. So it's not that it's automatically jumping up to the 50 to 100 for the full year 19:08 19 minutes, 8 seconds number straight away. So you have to cycle quarter by quarter because we've got seasonality. Uh you would see that 19:15 19 minutes, 15 seconds in play 50 to 75 for a full year will happen. 19:20 19 minutes, 20 seconds Understood. That's that clears that's thank thank you for that. Secondly you know when one looks at the sunda growth uh of close to 70% is a material step 19:30 19 minutes, 30 seconds up. uh you know if you can share your thoughts on what really drove this was it largely due to the higher NPDS that 19:37 19 minutes, 37 seconds we have seen or there was some tailwind from the new GTM strategy uh uh that is going about and also on company margins 19:46 19 minutes, 46 seconds uh uh you know post the beverage margins recovering uh can one assume that the food and beverage margins are at similar 19:53 19 minutes, 53 seconds levels and serna margins have seen some improvement uh uh so your thoughts on both these 20:00 20 minutes So the reason for samp growth from a portfolio perspective is I would say broad-based 20:08 20 minutes, 8 seconds uh but a little bit of higher uh impetus in the NPDS uh but we've seen growth across pulses POA vermicelli everything 20:17 20 minutes, 17 seconds I mean whole portfolio I think we're getting stronger as a brand and portfolio per se that's number one 20:24 20 minutes, 24 seconds number two the quickcom ecom uh shift by consumers is helping us as as well because then it distribution and 20:32 20 minutes, 32 seconds availability is not a constraint and we're able to reach every single uh consumer. Right? That's number two. Uh 20:40 20 minutes, 40 seconds number three, from a margin perspective, we've always said there's no reason someone can't hit a mid- teens plus uh number and we're getting starting to get 20:48 20 minutes, 48 seconds close to that. Uh but I we don't look at food and we look at tea separately, we look at salt separately and sunarately. 20:58 20 minutes, 58 seconds uh salt is on a very strong wicket. 21:00 21 minutes Beverages has come back to a strong wicket. Uh tea uh sorry sen per se is uh I would say headed towards a mid- teen 21:09 21 minutes, 9 seconds sort of uh margin. So from a margin perspective overall I would think we're in a good place. 21:17 21 minutes, 17 seconds Got it. Uh that's all from my side. 21:19 21 minutes, 19 seconds Thank you very much and wishing you all the best. 21:22 21 minutes, 22 seconds Thank you. We'll take our next question from the line of Abnesh Roy from Noama Institutional Equities. Please go ahead. 21:30 21 minutes, 30 seconds Uh congrats. Uh two questions. So first of course on your comment that the market share data uh you may stop giving and uh 21:39 21 minutes, 39 seconds is uh uh more uh from execution part rather than a benchmark. So specific question is uh uh how do you then 21:47 21 minutes, 47 seconds benchmark because uh you must be having those e-commerce quickcommerce data which you must be getting uh so how reliable is that and apart from this if 21:56 21 minutes, 56 seconds the data is not covering so many channels uh how relevant is it even from a bench uh execution uh part of thing how how relevant is it from that also? 22:09 22 minutes, 9 seconds So uh you know for quickcom ecom the good part is Neielson does have a panel and does give us data right so we get that data and by the way we're market 22:17 22 minutes, 17 seconds leaders on t on quickcom and ecom right uh and I would just urge you to go through different annual reports different analyst calls to pick up 22:26 22 minutes, 26 seconds numbers and do comparisons uh on t number one and the reason I say benchmarks is uh my team has got very very specific targets in terms of 22:35 22 minutes, 35 seconds channels in terms of numeric reach etc so more than market share. I mean the numeric reach etc is what I would look 22:42 22 minutes, 42 seconds at share among handlers and numeric reach but the overall market share I I would say I would say broadly 22:49 22 minutes, 49 seconds uh I I don't find the directional numbers right and that's why we we starting to stopping to publish because I don't want to get this discussion 22:57 22 minutes, 57 seconds every time saying the numbers are not right etc right salt by sheer weight of the fact that we've got a 40% share and 23:05 23 minutes, 5 seconds therefore we very highly distributed and we are number one right I think broadly the number works now I don't have any 23:14 23 minutes, 14 seconds benchmark anywhere in the industry to do any other comparison on salt so that's why salt we'll still look at the number 23:21 23 minutes, 21 seconds uh but beverages I like I said 25 I we just give the number right 20% is quickcom ecom out of 15 modern trade if 23:29 23 minutes, 29 seconds you take out half it's about another seven institutions is about four five for me so overall GT is just about 55 23:36 23 minutes, 36 seconds and the number is off Right. So, doesn't make sense. 23:41 23 minutes, 41 seconds Understood. Uh, second and last question will be on the beverage business. Uh, two subp parts here. Uh, one is, uh, Campa is now number three in water uh, 23:50 23 minutes, 50 seconds pan India and very aggressive advertising 15 rupee pricing. Campa Amitab Bachan brand ambassador. uh here 23:57 23 minutes, 57 seconds specific question is from a margin perspective for you in Narisho uh how how are things and from a long-term 24:04 24 minutes, 4 seconds growth perspective given campaign right uh how is the long-term growth I'm sure next two quarter the growth will be 24:12 24 minutes, 12 seconds very strong given the elino impact uh that's the first part second part very small US business you highlighted margins will improve but what about 24:21 24 minutes, 21 seconds pricing in developed market once commodity cools off pricing also cools off very quickly right so if you comment on that part. 24:28 24 minutes, 28 seconds So let me let me go with the second uh answer first. uh number one is today 24:36 24 minutes, 36 seconds while commodities costs have softened there is inventory in the channel of raw material and therefore the entire margin 24:42 24 minutes, 42 seconds expansion hasn't happened and even after I would say 2 3 months when the inventory levels start to go down and 24:51 24 minutes, 51 seconds the newer inventory starts to flow in the margins would just come back to where they were for the industry before this entire upcycle on coffee prices 25:00 25 minutes that said uh you could see action on pricing uh specifically driven by promos 25:07 25 minutes, 7 seconds on the shop floor. We remain alert to that. But I would say till broadly the industry comes back to the margins which 25:16 25 minutes, 16 seconds used to be there just about two years back. I don't see too much of a fight breaking out on the shop floor and therefore margins I would say would 25:25 25 minutes, 25 seconds broadly will they come back to exactly where they were? I'm not sure but they will definitely improve from uh where we are currently. So that's the reason why 25:34 25 minutes, 34 seconds we remain extremely confident. That's number one. And by the way, the good part is even in this scenario of compressed uh margins, we've continued 25:42 25 minutes, 42 seconds to drive significant topline and therefore gain market share in the US. 25:47 25 minutes, 47 seconds Uh so that's one. On the second part, I wouldn't compete about competitors with numbers and data which I am not too clued in about. All that can that I can 25:56 25 minutes, 56 seconds say is we remain confident of growing 30% consistently and improving our whole 26:03 26 minutes, 3 seconds margin portfolio profile as well. In Narisho we have three different verticals that we are very clearly 26:09 26 minutes, 9 seconds focused on. Uh number one is uh water in its whole stack and you'll see a bunch of launches happening right now. We have 26:17 26 minutes, 17 seconds Himalayan, we have spring alive, uh we have alkaline and we have data copper. 26:24 26 minutes, 24 seconds you'll see more of launches across the spectrum as and functional waters. 26:29 26 minutes, 29 seconds That's number one. Number two, you have affordable cups and I would term it as affordable and profitable cups, right? 26:36 26 minutes, 36 seconds So, I wouldn't worry about people trying pricing actions in that category. And the number three is where I have every right to win, which is tea and coffee. 26:45 26 minutes, 45 seconds We have right now kombucha, green tea, fruit tea. Uh we've got coffee in cans and coffee in PET. And you will see more 26:53 26 minutes, 53 seconds launches in the coffee space sorry tea space uh as well as we go forward. 26:59 26 minutes, 59 seconds We've grown Tata Copper by 33% last quarter. There's no reason why this trajectory can't continue at this level for a long long time because A we do 27:08 27 minutes, 8 seconds have a strong brand proposition. B we've still I mean not covered the entire country in the manufacturing 27:15 27 minutes, 15 seconds distribution terms and C per capita consumption of water itself is at abysmal levels in India. when you compare to the rest of the world. So 27:24 27 minutes, 24 seconds geographic expansion, per capita consumption and portfolio expansion all three will drive Narish. 27:31 27 minutes, 31 seconds Thank you all from Thank you. Next question is from the line of Vive Maheshwari from Jeff. 27:39 27 minutes, 39 seconds Please go ahead. 27:41 27 minutes, 41 seconds Hi Sonilan team. Uh two questions. The first one is on the growth categories. 27:46 27 minutes, 46 seconds Uh uh you know now that capital foods and uh you know uh capital foods and organic India are kind of you know doing 27:53 27 minutes, 53 seconds well in the domestic market. Uh are you thinking about more acquisitions and adding you know more to your uh you know growth portfolio and where do you think 28:01 28 minutes, 1 second it settles at in the next three four years? That's the first question. 28:07 28 minutes, 7 seconds So, so Vive, let me say while we've improved our uh performance in capital foods and organic India, I think we've 28:15 28 minutes, 15 seconds got a runway to improve it still more significantly. Uh with the split GTM that we have rolled out, we've already 28:23 28 minutes, 23 seconds started see my my single biggest indicator is lines uh sold and for that we have started to see significant 28:31 28 minutes, 31 seconds improvement in capital foods and organic India. When I look at by category and when I look by type of distributors, the 28:38 28 minutes, 38 seconds growth guys are growing the fastest on lines per outlet which means we are we are doing the retailing and distribution of the products backed by uh media 28:47 28 minutes, 47 seconds spends on the brand as well whether it is Sachin Tendulkar or it is uh the Ranir Singh on the 28:56 28 minutes, 56 seconds capital food side I think that's doing very well for us and you'll see lot of innovation also rolling out in the pipeline. 29:04 29 minutes, 4 seconds uh that so therefore we should be accelerating on capital foods and organic India. Uh you will see lot of uh 29:12 29 minutes, 12 seconds launches organically uh across different platforms as we go forward including some new platforms 29:20 29 minutes, 20 seconds that we're going to launch. So therefore the growth portfolio will continue to chug along at this 30% number at least in the near term. On the 29:29 29 minutes, 29 seconds acquisitions front, we remain open. But right now, let me say what we like is not for sale. What is for sale we don't 29:36 29 minutes, 36 seconds like. Right? So from that perspective, if and when something comes along which we think will be attractive, we will look at it. So we've never said no. uh 29:45 29 minutes, 45 seconds in terms of percentage right now for the short term short to medium-term I would say 30% uh growth is a given for the 29:53 29 minutes, 53 seconds growth businesses and we will keep recalibrating as we go forward interesting got it and the second bit is 30:00 30 minutes you know you have already answered uh so you have a very unique raw material basket versus most of your competitors you have mentioned about international 30:08 30 minutes, 8 seconds uh margins and drivers for that but are because of this volatility and whatever you know geopolitical bit whether margin 30:15 30 minutes, 15 seconds perspective or growth perspective are there any should there be anything that we we bear in mind uh from you know US 30:23 30 minutes, 23 seconds Canada and UK perspective that you know uh in case if geopolitical things do not uh settle down in time are there any areas because this is a piece which is 30:31 30 minutes, 31 seconds very difficult to understand for us sitting in India so just wanted to be sure on that so overall if you look at it Vive how 30:40 30 minutes, 40 seconds does the entire Middle East situation impact us number one is in terms of availability of raw material and 30:48 30 minutes, 48 seconds therefore uh business continuity right so for from from for the India business itself we used to have some plastic 30:56 30 minutes, 56 seconds closures and pet etc which we used to import we've already shifted about I would say about 15 20 days back and we 31:04 31 minutes, 4 seconds are fully uh I mean there is no issue on continuity that's number one number two is the issue is LPG uh LPG for specific 31:14 31 minutes, 14 seconds specific uh categories where we used to use LPG. Most of the places we found alternate suppliers who are supplying 31:22 31 minutes, 22 seconds without a problem and or we switch to dual use burners. So that is not an issue at all. Uh the third piece is 31:30 31 minutes, 30 seconds where if there is a fuel price increase and there is broad-based inflation that is what should worry us. As of now I I mean I'm not sure where this is headed. 31:42 31 minutes, 42 seconds I don't see a reason why it should only impact us. It'll be an industry-wide phenomenon if it happens and therefore 31:50 31 minutes, 50 seconds you would see price increases with people uh making sure margins are protected. My my hypothesis is if there 31:57 31 minutes, 57 seconds is a broad-based fuel price uptick, it will translate to price increases as 32:04 32 minutes, 4 seconds everyone in the industry moves to protect margins. But per se as of now with the moves that have happened I 32:12 32 minutes, 12 seconds don't see too much of an impact and if there is an impact like I said we do have the equity strength to take pricing and make sure we mitigate that 32:21 32 minutes, 21 seconds and so just to confirm whatever comments you have made uh you know uh just now are applicable to international business each of the geographies as well 32:30 32 minutes, 30 seconds absolutely because international remember in UK Canada etc it's primarily T and therefore I mean the big big 32:38 32 minutes, 38 seconds impact is tea prices more than anything else and that hasn't changed. Similarly in the US it is coffee which is probably 90 90% of my business and again coffee 32:48 32 minutes, 48 seconds prices are coming down rather than going up and therefore doesn't change. There might be minor uptick here there but uh nothing significant. 32:58 32 minutes, 58 seconds Super thank you very much. Wish you all the best. 33:01 33 minutes, 1 second Thank you. Next question is from the line of Nihal Jam from HSBC. Please go ahead. 33:09 33 minutes, 9 seconds Hi Shanil. Uh good evening. Uh the first question was on capital foods and organic India that uh you know there was 33:16 33 minutes, 16 seconds an impact in the international but uh we had the thought that even the domestic portfolio could start touching a 30% growth uh this quarter itself. So what 33:24 33 minutes, 24 seconds are the issues? It's mainly the distribution which you've rehashed or there is some other issues which have had come up for this quarter's growth. 33:31 33 minutes, 31 seconds No so this quarter organic India did touch close to 30%. I think it was 26 or 27 if I'm not mistaken. Uh Capital Foods 33:40 33 minutes, 40 seconds was a bit subdued. I I would have loved for it to grow but it still grew double digit. Uh the primary reason was as we relayed the entire go to market. 33:49 33 minutes, 49 seconds Remember between November and February we relayed our entire go to market in the top cities uh that had a bit of a hiccup. Uh that said we remain quite 33:58 33 minutes, 58 seconds confident of coming to the 30% mark very quickly. 34:02 34 minutes, 2 seconds Understood. Uh the second question was on the T bit last quarter you did highlight there was a worry of a slight spike. I think in the opening remarks 34:10 34 minutes, 10 seconds you did mention about some comfort but just to clarify that on the tea prices there is comfort that at least based on showing that you're seeing that the 34:18 34 minutes, 18 seconds prices look comfortable for the year ahead or at least for the season ahead. 34:23 34 minutes, 23 seconds So like I said, I've stopped trying to forecast commodities uh too far ahead because uh things go up and down. But as 34:31 34 minutes, 31 seconds of now for this year, uh tea prices have trended well. They're roughly I think in 34:37 34 minutes, 37 seconds the same ballpark as the price same period last year and so therefore it's largely benign. Uh and that's why we had 34:45 34 minutes, 45 seconds given down given up pricing to make sure that we are competitive as of now. 34:52 34 minutes, 52 seconds We don't see any reason to change uh the guidance for that. 34:58 34 minutes, 58 seconds Just one last question on Shan. So it's obviously great to see the kind of growth the business is delivering. I think when you mention about the margin 35:06 35 minutes, 6 seconds you're referring to the MAP or the contribution margin that you've highlighted earlier. When is it possible that you know on the EITA bit someone 35:14 35 minutes, 14 seconds gets profitable and starts giving a sizable contribution given on topline it's already you know the fastest growing part of the process 35:22 35 minutes, 22 seconds see in a structure like mine where my front end is common and my entire backend operations are common I would 35:30 35 minutes, 30 seconds not try to do a mathematical exercise to allocate overheads by different categories and therefore calculate aida 35:38 35 minutes, 38 seconds right so I mean We've always maintained saying we will do a P&L by category up 35:45 35 minutes, 45 seconds to margin after promotion and advertising expenses. Below that all the costs are all fixed and then the target 35:53 35 minutes, 53 seconds I mean the targets for the teams who are handling those lines are fixed costs. Uh and that's how we play it. So for every 36:01 36 minutes, 1 second single category whether it is I mentioned the 33 to 35 for tea or the 35 uh range for salt or the mid teens for 36:10 36 minutes, 10 seconds uh uh sen. It is all margin after promotion expenses. 36:17 36 minutes, 17 seconds Understood. That's it. Wish you all the best. 36:22 36 minutes, 22 seconds Thank you. We'll move on to our next question from the line of Adita Sman from CLSA. Please go ahead. 36:30 36 minutes, 30 seconds Hi, good evening. 36:32 36 minutes, 32 seconds Uh sorry to interrupt Adita. Please use your handset mode. 36:39 36 minutes, 39 seconds Yeah. Hi, good evening and thanks for the opportunity. Uh two questions from me. Uh so firstly on uh the uh uh uh so 36:47 36 minutes, 47 seconds we've received also feedback from sort of the quickcommerce players and e-commerce players about how Tata consumers doing uh is amongst the best performing companies on their platform. 36:58 36 minutes, 58 seconds Uh so so from your perspective what has really worked well and and has allowed you to outperform uh even compared with 37:05 37 minutes, 5 seconds GT where you've had long-standing relationships. Uh so that's one and and second on P uh despite obviously you 37:12 37 minutes, 12 seconds doing very well on on these channels uh the 4% uh volume growth uh would you say that's a satisfactory number or would 37:19 37 minutes, 19 seconds you uh sort of aspire to see that number improve over the next three quarters? That's it. 37:25 37 minutes, 25 seconds So let me answer the second question first. We've always mentioned for T we will target mid uh singledigit growth 37:32 37 minutes, 32 seconds and a couple of uh uh basis points of price mix. Therefore mid to high singledigit total topline growth from 37:40 37 minutes, 40 seconds that perspective we are almost there but not there uh in this quarter. So I would aspire for a slightly higher number 37:47 37 minutes, 47 seconds that's number one. Number two on the quickcommerce e-commerce bus our philosophy is very clear we will be where the consumer is and if the 37:56 37 minutes, 56 seconds consumer is shifting from GT modern trade to uh ecom quickcom we will be there first and then we'll figure out all the other pieces later. So that's that's been our moto uh number one. 38:07 38 minutes, 7 seconds Number two is uh remember we came from significantly behind on distribution. Uh while you might say relationships on GT 38:15 38 minutes, 15 seconds when we started 6 years back we were half a million outlets with a numeric reach of 2 million. Today we are about a 2 million outlets with a numeric reach 38:24 38 minutes, 24 seconds of 4 and a half. Right? So from that perspective we've expanded significantly but we are still behind where we want to 38:31 38 minutes, 31 seconds be on distribution and the ability to reach consumers through quickcom ecom uh 38:37 38 minutes, 37 seconds and gain momentum is primarily because a we've got the most trusted brand name in 38:44 38 minutes, 44 seconds the country. B we are very very sure of the quality of the products that we offer and therefore when we connect 38:51 38 minutes, 51 seconds straight with the consumer we hit it out of the park. Right. And uh in fact that is one of the things which I use to beat 38:58 38 minutes, 58 seconds up my sales guys saying as long as I am talking straight to the consumer which is what happens on quickcom ecom I am a winner and I'm number one right so 39:07 39 minutes, 7 seconds therefore if they get my execution right and close distribution gaps there's no reason I should be number one I 39:14 39 minutes, 14 seconds shouldn't be number one even in GT channels that's very clear and and just in terms 39:21 39 minutes, 21 seconds of profitability on on across channels So would it be fair to say that like for like for the same products uh profitability could be lower on these 39:28 39 minutes, 28 seconds new channels but obviously you see more premization so overall the product or or at a category level your margins could be better would that be the right way to 39:36 39 minutes, 36 seconds look at it? Now you have to remember when you put all-in costs right if you look at only up to gross margin level uh 39:45 39 minutes, 45 seconds there are there are different costs on different channels if you take the cost of the field force and put it on to GT channels and the cost of logistics and 39:54 39 minutes, 54 seconds you put the visibility on the ecom quickcom channels you might broadly be surprised that it lands up in the same 40:01 40 minutes, 1 second ballpark so I I wouldn't want to do that calculation and the other piece like I mentioned right 40:10 40 minutes, 10 seconds I would rather go play where the consumer is even if it's a slightly lower margin than not go just because it is lower margin and land up with no 40:17 40 minutes, 17 seconds margin right so that's number two number three remember there is a game of rorowass as well as you build scale on 40:26 40 minutes, 26 seconds these channels uh you initially have to spend higher visibility to get momentum going once you get momentum going that 40:34 40 minutes, 34 seconds same advertising dollar gives you significantly higher return by building scale. So there is a there is a 40:41 40 minutes, 41 seconds advantage to be had by first mover and I do think that in quite a bit of the categories we're getting there. 40:49 40 minutes, 49 seconds That that's very clear and thanks so much for such a detailed answer. Thank you and all the best. 40:54 40 minutes, 54 seconds Thank you. Next question is from the line of Jan Paris Ramka from 3P Investment Managers. Please go ahead. 41:02 41 minutes, 2 seconds Yeah. Hi, thank you for the question. 41:04 41 minutes, 4 seconds And just just a couple of points uh on&pense if I if you were correct you said uh it is going to go up. So with 41:12 41 minutes, 12 seconds gross margins likely to be under pressure in some of the categories uh we still think about 60 to 70 basis point 41:20 41 minutes, 20 seconds AITA margin expansions can happen. Yeah given how status uh current status quo which we are maintaining. 41:28 41 minutes, 28 seconds So, so a couple of things, right? As long as I don't increase the middle of my P&L, my top line continues to grow double digit. It has to drop to the 41:36 41 minutes, 36 seconds bottom line. That's number one. Number two, I did mention that if there are some tweaks and some small niggles on cost aspects, we have the ability to 41:45 41 minutes, 45 seconds take pricing up and therefore make sure that margins are well protected. So, I wouldn't worry about it. I would say a 41:52 41 minutes, 52 seconds food business in India should be between I would say 7.5 to about a 8.5 sort of 41:59 41 minutes, 59 seconds uh so 7 to 8.5 sort of uh uh a toss ratio uh we we broadly operating in that 42:07 42 minutes, 7 seconds ballpark and if you look at the full year we are almost in that ballpark right so for the full year there will be ups and downs in quarters because for 42:15 42 minutes, 15 seconds example for t there is a peak in north India in uh quarter 3 for example quarter three quarter 4. So you will 42:23 42 minutes, 23 seconds find slightly ahead of that uh advertising ramping up or for example there are specific big days and big 42:30 42 minutes, 30 seconds events around we will ramp it up then but broadly in the ballpark we should be in the seven sort of range uh coming in 42:38 42 minutes, 38 seconds and I don't expect that to impact my uh overall aida margins. 42:44 42 minutes, 44 seconds Sure. My my second question is slightly strategic. I'm just trying to understand uh on Saman you've launched uh protein 42:51 42 minutes, 51 seconds macanas and also you have a brand simply better just from an Indian perspective are you seeing people move towards more 42:58 42 minutes, 58 seconds healthier kind of food is that a strategic shift which is happening pretty fast and are we looking to uh 43:05 43 minutes, 5 seconds take advantage of that given our scale uh given our bigger scale as a business. 43:12 43 minutes, 12 seconds So absolutely if you saw the slide on innovation, innovation is focused on the three big macro trends uh in the Indian 43:19 43 minutes, 19 seconds consumer, health and wellness, convenience uh and premiumization, right? Uh the other piece is communication moving to 43:27 43 minutes, 27 seconds digital and online shopping as well. So you see us going aggressively between ecom, quickcom and therefore advertising dollars also being or rupees also being 43:36 43 minutes, 36 seconds spent on uh that. So that is a secular trend number one. Number two, you will see sen and you'll see tata simply better. That's because the base 43:44 43 minutes, 44 seconds categories we are present in sen. And when we are adding something, subtracting something and making sure it 43:52 43 minutes, 52 seconds is better than what you consume on a regular basis that is branded under Tata simply better. So coldress oils is not 43:59 43 minutes, 59 seconds your regular oil. It is better for you oil and therefore it is TA simply better. 44:05 44 minutes, 5 seconds Sure. Thanks. Thank you for this. 44:09 44 minutes, 9 seconds Thank you. Next question is from the line of Kalia Bank from IIFL Capital. Please go ahead. 44:19 44 minutes, 19 seconds Uh hi sir, this is uh Percy here. Can you hear me? Yes, please. Yeah. Hello. 44:26 44 minutes, 26 seconds Yeah. Um uh so I just wanted to understand uh on t cost did you say that uh it is uh in FI27 likely to be flat Y. 44:38 44 minutes, 38 seconds So Py I said as of now we are seeing it roughly flat uh and I have mentioned on 44:46 44 minutes, 46 seconds a couple of calls I've stopped trying to forecast commodity costs too far ahead because with all the bumps that we have 44:53 44 minutes, 53 seconds on climate weather etc. I don't know what I don't know. Uh and we will react. 45:00 45 minutes We'll be agile to move pricing etc. in line with the commodity trends. For now the season has already started. Uh 45:09 45 minutes, 9 seconds plucking and auctions are up fully in April. Uh and we we are seeing cost roughly benign. 45:19 45 minutes, 19 seconds Okay. Let me put it uh other way. the uh the T margins that you have enjoyed in FY26, the India T margins, are you happy 45:29 45 minutes, 29 seconds with that or do you uh plan to see a expansion in those margins in FY27 uh uh 45:36 45 minutes, 36 seconds through uh initiatives of your own and if there is a small uh cost impact you will pass that on. So therefore you will 45:44 45 minutes, 44 seconds still see an expansion in India T margins would that be a fair assessment or no? So, so per the T margins for Q4 45:53 45 minutes, 53 seconds are roughly where we want to be. We were not there in the beginning of the year. 45:58 45 minutes, 58 seconds We've they started expanding as we went through the year and the we had taken pricing and costs went down roughly 46:07 46 minutes, 7 seconds right now where we should be and we'll aim to be in this ballpark. 46:13 46 minutes, 13 seconds Understood. Secondly, just wanted to ask on product portfolio. Over the last few quarters, you've launched uh several uh 46:22 46 minutes, 22 seconds uh products and uh categories. Do you think uh that your product portfolio is now more or less complete and you would 46:29 46 minutes, 29 seconds focus more on driving uh sales in the existing uh uh products or would you uh uh plan to expand it further? 46:39 46 minutes, 39 seconds So Percy with our ambition of growing double digit and continuing to deliver AIDA margins ahead of or Aida ahead of 46:47 46 minutes, 47 seconds uh topline we will not only grow our organic portfolio which exists today but we will continue to drive as I've 46:56 46 minutes, 56 seconds clearly mentioned saying it's distribution marketing brand building and innovation right so as we see consumer trends come up you will 47:05 47 minutes, 5 seconds continue to see innovation coming out so I think we are a long long long way away from saying we've got the perfect 47:11 47 minutes, 11 seconds portfolio. Uh I do think we will continue to aggressively expand distribution 47:19 47 minutes, 19 seconds continue to spend behind building strong brands and continuing to expand on innovation. 47:27 47 minutes, 27 seconds So can you give some gaps as to where broadly of course I understand you can't comment on new launches but where broadly do you think are the gaps in 47:34 47 minutes, 34 seconds your portfolio which you can sort of fill over the next one or two years and a related question is that as I see it 47:42 47 minutes, 42 seconds now your portfolio is actually pretty wide do you run the risk of spreading yourself too thin in terms of uh proliferating the number of products and 47:51 47 minutes, 51 seconds not being able to give enough uh attention and focus on a individual product from a a sort of either a sales 47:59 47 minutes, 59 seconds point of view or a general organizational point of view. 48:04 48 minutes, 4 seconds So per last three quarters I think we've been in a strong double digit topline growth 18 15 18. So uh that's number 48:11 48 minutes, 11 seconds one. Number two these are all driven by base UVG and not by pricing actions. I think that proves the ability of the 48:19 48 minutes, 19 seconds system to execute all these innovations at scale. That's number one. Number two, remember not all the innovation that you 48:26 48 minutes, 26 seconds see are immediately lining up in the distributor's warehouses and therefore complicating the system. Today there is this beautiful channel called ecom 48:34 48 minutes, 34 seconds quickcom which allows you to launch uh so so your test market is you can do it in a city on quickcom do a quick test 48:43 48 minutes, 43 seconds and then roll out total quickcom then modern trade then SMTs then GT so as long as your playbook is very clear on 48:51 48 minutes, 51 seconds how you're going to expand at lowest risk lowest cost and highest impact I 48:58 48 minutes, 58 seconds don't think there is a problem in launching innov innovation right the critical piece is to have your framework on where you want to play and launch 49:07 49 minutes, 7 seconds innovation in that space I think that is the uh more critical space so I wouldn't see an issue out there as as far as 49:15 49 minutes, 15 seconds portfolio goes let me just leave you with we are right now in the food and beverage space which is still got I 49:22 49 minutes, 22 seconds would say enough white spaces for us to go after especially in in uh very very specific nutrition health and wellness 49:31 49 minutes, 31 seconds and premium categories. So we will you will continue to see launches across our portfolio in that space. 49:39 49 minutes, 39 seconds Got it. Last one. You just give the AR of SAN as a brand overall including all its categories. 49:48 49 minutes, 48 seconds So Sen overall for the full year ended at close to 1,400 uh crores. uh but 49:54 49 minutes, 54 seconds remember starting from a 35 37 growth if I'm not mistaken in Q1 we're now at a 60%. I don't uh 50:04 50 minutes, 4 seconds yeah this is 1600 oh 1600 crores is the actual uh number for sen for the full year per se. 50:14 50 minutes, 14 seconds Okay. Okay. That's very helpful. So thank you so much. 50:19 50 minutes, 19 seconds Thank you moderator. 50:22 50 minutes, 22 seconds We'll go to the webcast now and take a few questions from there. Sure. Please go ahead. 50:32 50 minutes, 32 seconds Okay. So, there is a question from U. 50:36 50 minutes, 36 seconds I'm sorry to interrupt. Can you come a little closer to the microphone? You're sounding dist. 50:41 50 minutes, 41 seconds Sure. Okay. So, there is a question from Atul. Uh he's asking what is your 50:47 50 minutes, 47 seconds strategy on uh tactical aggression in high margin protein segments? Are we 50:54 50 minutes, 54 seconds looking to go organic or all options on the table given that we have enough cash on our balance sheet? 51:02 51 minutes, 2 seconds So, so let me answer it in this way. 51:04 51 minutes, 4 seconds Yeah, protein is a segment which is trending and we are looking at it closely. Uh but the acquisition strategy 51:12 51 minutes, 12 seconds doesn't pertain to protein alone. As I said, we're very clear where we want to play, where we don't want to play. uh 51:20 51 minutes, 20 seconds and if there is a attractive acquisition which comes across any of the segments that we play in we will look at it 51:27 51 minutes, 27 seconds protein included but protein per se you would have seen some of our launches come out Macana for example or we've 51:34 51 minutes, 34 seconds launched Edm etc that is let me just say it's a teaser you would see much more ramping up in this space but ramping up 51:41 51 minutes, 41 seconds with a plan thank you thank you uh there is a question uh uh on consumption patterns. 51:51 51 minutes, 51 seconds Uh Atul is asking in terms of the adoption of semaglutide which is the GLP1 51:59 51 minutes, 59 seconds uh trend that we are seeing. Uh how are you developing products that serve the needs of that category? 52:09 52 minutes, 9 seconds So GLP support is uh what uh food and beverage companies are looking at. We are also looking at that thing. Right 52:17 52 minutes, 17 seconds now there is nothing on the anvil. We will wait and watch but we trigger ready to see if uh this category takes off. 52:26 52 minutes, 26 seconds Thank you. There is a question from home car uh from UTI pension. He's asking organic India has approximately 40% 52:35 52 minutes, 35 seconds revenue coming from exports. uh yet it has been able to grow 20 24% during the 52:42 52 minutes, 42 seconds quarter but capital foods is approximately 20% export mix and yet it has delivered below expectations what 52:51 52 minutes, 51 seconds could possibly be the be the reason for this so the primary reason is because for organic India the single biggest market is the US uh and we carry inventory 53:00 53 minutes onshore out there in the US uh during the tariff up and down which impacted 53:08 53 minutes, 8 seconds Organic India quite a bit. We've we had pumped up inventory and therefore there was a enough inventory sitting on shore 53:14 53 minutes, 14 seconds in the US. Uh whereas for uh capital foods it is FOB India to many of the 53:23 53 minutes, 23 seconds retailers uh and most of them do US trans shipments happen at the Middle East etc. And that shipping got 53:32 53 minutes, 32 seconds disrupted in the month of March. uh come April it is back to normal and we do expect to start uh delivering decent growth even in that category. 53:43 53 minutes, 43 seconds Thank you. Thank you pil there is a question from Abhishek Matureatics Group. He's asking what is driving the 53:51 53 minutes, 51 seconds strong volume growth in salt. Is it coming from loose unorganized or there are some other drivers? 53:59 53 minutes, 59 seconds There are multiple drivers. Starting with the first this thing which I said when Tata consumer was formed, we 54:07 54 minutes, 7 seconds decided to play not only in vacuum evaporated iodized salt. We said we will play in salt. So actually look if you 54:15 54 minutes, 15 seconds look at my salt portfolio today it's almost like a rupee restaurant menu right? You've got salt with zinc, you've got salt with iron, you've got salt 54:23 54 minutes, 23 seconds light, you've got salt super light, you've got rock salt, you've got syninda salt, you've got solar salt, you've got 54:29 54 minutes, 29 seconds vacuum evaporator. So we have created a portfolio on salt which caters right from the premium down to a value play. 54:39 54 minutes, 39 seconds That's number one. Number two, over a period of time, we've continued to build the brand with media and strengthen it. 54:47 54 minutes, 47 seconds In fact, top of mind I think right now I would dare say Tata Salt is probably right up there among the top Indian brands or top of mind is now about 88. 54:59 54 minutes, 59 seconds So 88 out of 100 Indians if you ask them salt they'll say Tata salt right as simple as that. Number three is 55:06 55 minutes, 6 seconds distribution and we continue to expand and we continue to re-engineer our distribution systems to make sure we're 55:13 55 minutes, 13 seconds delivering. There were very many cities I think 24 if I'm not mistaken where salt was overwhelming and therefore uh 55:21 55 minutes, 21 seconds if it's a very very strong market it's good to separate it out to give it single-minded focus that has started to play off as well. So yeah multiple things in play I would say not one. 55:33 55 minutes, 33 seconds Thank you. Thank you. There is uh another question perhaps in the interest of time we'll take one last question. 55:41 55 minutes, 41 seconds There is a question from Bharat. He's asking what is explaining the unbranded solubles growth given that coffee prices 55:48 55 minutes, 48 seconds are in deflation now what is the outlook for this segment on growth and margins in FY27. 55:56 55 minutes, 56 seconds So the growth is primarily when you compare with last year so the coffee prices are elevated even when you compare to last year and that is what is uh driving the unbranded soluble growth. 56:07 56 minutes, 7 seconds Incidentally on the unbranded solubles growth just FYI I think Vietnam is now running at a 99% utilization and we we 56:16 56 minutes, 16 seconds had already started a project to expand capacity out in Vietnam which should be online by I think very early in 2027 56:26 56 minutes, 26 seconds that will give it the real next leg of growth going forward. Uh today our board has also officially approved uh capacity 56:35 56 minutes, 35 seconds expansion on tea extracts which again we've run running out of capacity uh and we will start on that project as well. 56:43 56 minutes, 43 seconds So the whole solubles unbranded business will continue to go from strength to strength. 56:50 56 minutes, 50 seconds Thank you. Thank you SV. Uh with that we conclude this call. Uh I know we are 56:57 56 minutes, 57 seconds running out of time. There might be some pending questions in which case you can get in touch with me or Kyan from the investor relations team. Our details are 57:06 57 minutes, 6 seconds on the last slide of the investor presentation. Uh on behalf of the management, I want to thank you all for 57:13 57 minutes, 13 seconds joining today and uh have a great evening. 57:17 57 minutes, 17 seconds Thank you. On behalf of Tata Consumer Products Limited, that concludes this conference. Thank you for joining us. 57:23 57 minutes, 23 seconds And you may not disconnect your lines.