Asian Paints Limited (ASIANPAINT) Earnings Call Transcript & Summary

May I extend a very warm welcome to all of you to the 78th Annual General Meeting of Asian Paints Limited. I'm R. Seshasayee, Independent Director and Chairman of your company. I'm joining this meeting from Mumbai. It's a great privilege to address all of you today for the first time after being appointed as the Chairman of the Board of Directors of your company. Before we start, my first starts are on remembrance of Mr. Ashwin Dani, non-executive promotor Director, who departed for heavenly abode in September last year. Mr. Ashwin Dani had been associated with the company since 1968 and led the Board of the company as its Chairman between 2018 to 2021. He was a visionary business leader and a technocrat par excellence, who was a driving force in taking the company to its leadership position. I, on behalf of all of you and the Board of Directors, place on record my sincere acknowledgment and profound appreciation for his immensely valuable contribution to the growth and success of the company. The last financial year saw many transitions at the Board level. Mr. Deepak Satwalekar, Independent Director and Chairman, retired from the Board on 30th September 2023. He'd been a member of our Board over the last 2 decades and had stepped into the role of Chairman during financial year 2021, '22. I take this opportunity to express on behalf of the Board, my deep gratitude to him for the invaluable guidance and advice that he'd provided to the organization over the long years of his association. I'm delighted to welcome Ms. Ireena Vittal, Mr. Soumitra Bhattacharya, Dr. Gopichand Katragadda as Independent Directors and the Board of Directors of your company. The Board will gain immense value from their rich and diverse industry experience. Also place in record sincere position of Mr. Vibha Paul Rishi, Mr. Suresh Narayanan and Ms. Pallavi Shroff, independent directors of the company who retired on completion of their respective tenures for their invaluable contribution towards the success of the company. Dear members, this AGM is being conducted through video conference in accordance with the provisions of the Companies Act 2013. Various circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. We have made all efforts to enable the shareholders to participate through video conference and vote at the AGM in a seamless manner. Participation of members through video conference is being reckoned for the purpose of quorum under Section 103 of the Company's Act 2013 as per the circulars issued by the Ministry of Corporate Affairs. The quorum being present, I call this meeting to order. Before we start the main proceedings of this meeting, I shall introduce my colleagues on the Board who are attending this meeting through video conference. Let me start by introducing the Vice Chairman of your company, Mr. Manish Choksi. Mr. Manish Choksi is the Non-Executive Vice Chairman of your company and a member of the Nomination and Remunerations Committee and the Investment Committee. He is attending this meeting from Mumbai. I'd like to introduce Mr. Amit Syngle. Mr. Amit Syngle is the Managing Director and CEO of your company and a member of the Corporate Social Responsibility Committee and the Investment Committee. He is attending this meeting from Mumbai. Next, I'd like to introduce Mr. Milind Sarwate. Mr. Milind Sarwate is an independent director of your company. He is the Chairman of the Audit Committee and a member of the Risk Management Committee. He is attending this meeting from Mumbai. I'd now be introducing Mrs. Ireena Vittal. Mrs. Ireena Vittal is an independent director of your company. She is the Chairperson of the Risk Management Committee and a member of the Audit Committee. She is attending this meeting from Mumbai. Next is Mr. Soumitra Bhattacharya. Mr. Soumitra Bhattacharya is an Independent director of your company. He is the Chairman of the Nomination and Remuneration Committee and a member of the Audit Committee and the Investment Committee. He is attending this meeting from Bengaluru. I'd now be introducing Dr. Gopichand Katragadda. Dr. Gopichand Katragadda is an independent director of your company. He is the Chairman of the Stakeholders Relationship Committee and a member of the Corporate Social Responsibility Committee. He is attending this meeting from Bengaluru. Next, I'd like to introduce Mr. Malav Dani. Mr. Malav Dani is the Non-Executive Director of your company. He is the Chairman of the Corporate Social Responsibility Committee and a member of the Investment Committee. He is attending this meeting from the United States of America. Next up is Ms. Amrita Vakil. Ms. Amrita Vakil is a Non-Executive Director of your company. She is also a member of the Corporate Social Responsibility Committee and the Investment Committee. Ms. Amrita Vakil is attending this meeting from Mumbai. I'd now be introducing Mr. Jigish Choksi. Mr. Jigish Choksi is a Non-Executive Director of your company and a member of the Stakeholders Relationship Committee and the Risk Management Committee. He is attending this meeting from Paris. Lastly, Ms. Nehal Vakil. Ms. Nehal Vakil is a Non-Executive Director of your company and a member of the Stakeholders Relationship Committee and the Risk Management Committee. She is attending this meeting from Mumbai. All the directors of the company are present at this meeting. We also have Mr. R. J. Jeyamurugan, CFO and Company Secretary joined this meeting through video conference from Mumbai. Mr. Rupen Bhatt, partner, Deloitte Haskins & Sells LLP, statutory auditors; Supriya Tambe, representative of Joshi Apte and Associates, cost auditors; and Mr. Kulbhushan Rane, representative of Dr. K. R. Chandratre, secretarial auditors have also joined this meeting. I now request Mr. Jeyamurugan, CFO and Company Secretary to provide general instructions to the members regarding participation and conduct of this meeting.

Good morning, everyone. It gives me immense pleasure to welcome all of you to the 78th Annual General Meeting of the Asian Paints Limited. I request you to take note of general instructions regarding participation and voting at this meeting. This meeting is being held through video conference in terms of the relevant circulars issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India. Our company has tied up with National Securities Depository Limited to provide the facility for voting through remote e-voting, e-voting during the AGM and the participation in the AGM through video conference. Live streaming of this meeting is being webcast on NSDL's website. The register of directors and the key managerial personnel under their shareholding, the register of contracts or arrangements in which directors are invested and other relevant documents referred to in the AGM notice, under the explanatory statement have been made available electronically for inspection by the members during the AGM upon logging to NSDL e-voting system. As the AGM is being held through video conference, the facility for appointment of proxies by the members is not applicable. During the AGM, if any shareholder faces any technical issues, they may contact the helpline number mentioned in the notice of the AGM. Depending on the availability of time, the shareholders who have registered themselves to speak at the AGM would be provided an opportunity to ask questions or express their views pertaining to the items set forth in the notice. It may be noted that your company reserves the right to limit the number of shareholders asking questions at the AGM. The moderator will facilitate the sessions once the Chairman opens the floor for questions and answers. During the Q&A session, I will sequentially announce the names of the speaker shareholders and the maximum time allowed to each speaker would be 2 minutes. Members are requested to refrain from repeating questions or observations already made by fellow speakers. For better experience, we would request the speaker shareholders to use earphones so that they are clearly audible, verify the network connectivity, ensure WiFi is not connected to any other devices, no other applications are running in the background, and there is proper lighting for good video experience. The speaker shareholders may choose to turn on their video before addressing the meeting. If any speaker shareholder is unable to speak due to connectivity issues, I will ask the next speaker shareholder to address the meeting. Once the connectivity improves and if the time permits, the speaker shareholder may be called upon to join again only after the other speaker shareholders have completed their turn. The company is providing the facility to vote electronically on all resolutions set forth in the notice. The shareholders who have not cast their votes through remote e-voting and who are participating in the AGM will have an opportunity to vote during the AGM through e-voting system provided by NSDL. Thank you. I would now request Mr. R. Seshasayee, Chairman of the company to address the shareholders.

Dear shareholders, it's my privilege to address all of you today at the 78th Annual General Meeting of your company. The year gone by saw 'bouts of market volatility and geopolitical instability, with a backdrop of continued conflict in Ukraine and renewed escalations in the Middle East. Globally, inflation remained above targeted norms despite moderating from the previous year's highs and hence preventing the anticipated easing of monetary policies in major economies. Amidst this challenging business environment, your company relentlessly pursued its goals innovating across critical elements of this business and driving volumes across all segments. The year saw some tapering down of the consumption demand post-COVID due to the continued effect of high inflation, especially in the rural areas. This led to revenue growth trajectory moderating to single digits for the industry as well as for us. Also, we continued to focus on smart economy products undercoats and waterproofing to deliver a strong double-digit volume growth for the year. On a medium-term basis, we maintained our double-digit revenue, value and volume growth. trajectory delivering mid-teen compounded growth rates. We also delivered strong profit growth for the year despite the subdued revenue growth. Moderating raw material prices and our diligent efforts in pursuing formulation efficiencies provided a healthy cushion to our margins. We took this opportunity to pass on some of these benefits to our consumers and support the consumption demand. At the standalone level, your company reported growth of 2.6% in revenue from sale of products and services at INR 30,728 crores. The profit before tax increased by a strong 27.6% to INR 7,005 crores and the profit after tax for the year increased by 29.8% to INR 5,322 crores. At the consolidated level, the group achieved growth in revenue from sale of products and services of 3% at INR 35,382 crores. The consolidated profit before exceptional items and tax grew by 28.1% to INR 7,348 crores for the financial year. The net profit after tax for the group was higher by 32.5% at INR 5,558 crores. The Board of Directors have recommended payment of INR 28.15 per equity share as the final dividend for the financial year 2023-'24. This is in addition to the interim dividend of INR 5.15 per equity share, which was paid in the month of November 2023. If approved, the total dividend for the financial year '23-'24 will be INR 33.3 million against INR 25.65 per equity share paid for the previous financial year, an increase of about 30%. With this recommendation, dividend payout for the year will be at about 60%. I would request all shareholders to please approve the recommended final dividend for the financial year '23-'24. I'd now like to take you through the key business highlights of this last financial year. Our Decorative business delivered a volume growth of 9% and a value growth of 3% for this year. Price cuts implemented in the second half of the year had an impact on the value growth, both our luxury and the economy range of products grew well. Our focus to widen the organized market and strengthen our foray into the bottom of the pyramid segment delivered results as seen in the increased portion of economy products in our mix. However, our premium products grew at a slower clip, impacted by the price increases taken in previous years to tackle unprecedented raw material inflation. With price moderation at play, this segment is likely to see some bounce back going forward. Our Projects and Institutional business maintained a robust growth trajectory supported by builders, factories and the government sector. Our approach of looking at customer requirements holistically across all product categories and our commitment to provide products as per varied requirements have positioned us as the largest player in this segment. Further, our presence here has been significantly strengthened by our expanding range of offerings in the waterproofing and construction chemicals segment. Our distribution footprint, the largest in the industry, saw a further expansion in the year to over 1.6 lakhs retail touch points and the addition of a substantial number of Color World tinting machines. As we consistently augment our network strength, a majority of our associations have been maintained across generations of dealer families. These relationships have only become stronger with time as we have built on our supply chain capabilities, ensuring efficient and industry-best servicing levels for our entire network. Training and upskilling the contractor community has also ensured that we live up to our commitment to delivering a superior experience to our customers. The year saw significant progress in our evolution from share of surface to share of space. In FY 2023-'24, our revenue contribution from the Home Decor space was at approximately 4% of our Decorative revenues. We are committed to growing exponentially as we move forward to our next goal to make this business about 8% to 10% of our overall Decorative business in the next 3 to 4 years. Complementing our Decorative Coatings' product offerings, this segment has made Asian Paints a key partner in our customers' home decor journey to create their beautiful home. We are the country's leading integrated home decor player, offering a unique phygital experience to our customers through our omnichannel presence. Our network of 60-plus Beautiful Home stores and Studios across 45 cities allows our customers to experience all our products and services under one roof. We continued to invest in the saliency of our brand, Asian Paints during the year. We've been consistently reinforcing our Har Ghar Kuch Kehta Hai proposition. Our campaign where the heart is connects us to millions of people across the country. We've also boosted our digital marketing initiatives. Our collaboration with St+art India Foundation to democratize art and transform urban landscapes in India has also been very impactful. We are truly proud of the 7 art districts and the 450-plus murals that have had a meaningful imprint on communities across the country. This year, on World Braille Day, we aligned with them to create a one-of-a-kind tactile museum that made art accessible to the visually impaired. This event was a milestone for our Coatings brand, setting a precedent for inclusive initiatives. Innovation has always been one of the key pillars of our success. Over the last 4 years, we have introduced 120-plus new products with chemistries and features that are unique in the market. During this time, we have filed for 85-plus patents, of which 60 have already been granted, and about 50% of these are commercialized. In FY 2023-'24, new products contributed to over 11% of our revenue. Both our industrial businesses have registered double-digit revenue growth and improved profit margins in the year. Growth in our Automotive Industrial Coatings business was driven by the Automotive segment as well as the refinish space. The Non-Automotive Industrial Coatings business has doubled in 3 years driven by exceptional growth in the Protective and Powder Coatings space. Our partnership with PPG Industries Incorporated U.S.A., across both these businesses has enabled sales of differentiated and technology-driven product solutions, thus making inroads in key sectors. Progress in our international business was constrained due to several extraneous issues. In South Asia, macroeconomic challenges continued to impact Bangladesh and the liquidity crunch triggered softer sales in Nepal. At the same time, stabilizing economic conditions supported recovery in Sri Lanka. The Middle East market grew well, both on the retail and project side, supported by robust new product introduction work. Our waterproofing and painting services across markets have given us a strong edge and we'll continue to strengthen our performance in the international markets as we look at enhancing our brand presence in these markets. We've always taken pride in the way we operate our business sustainably, with ESG being a critical element of designing all our processes. We continue to advance our commitments on ESG during this year. Our renewable energy consumption is now at 65.8% of our total electricity consumption at our decorative paint manufacturing locations. On the water consumption front, we've been water neutral for some time now. This year, we replenished 3.9x of our freshwater consumption through various initiatives in water harvesting, water regeneration and educating local communities. The health and safety of the communities around our manufacturing locations is of utmost importance to us. We impacted and touched the lives of more than 3.53 lakhs people through our various health initiatives. Our commitment to disclosures, ethical business practices, impartiality and mutual trust has enabled us to emerge as a leading company for over 50 years. As we look ahead, we are seeing the competitive environment evolve with new set of entrants in the fray. This would demand a continued and deeper effort from our side to maintain our preferred brand and market leadership status. Innovation has been a key pillar of our success, and we remain focused on bringing innovative ideas and new value propositions to life for our customers. Some of our strategic investments, such as our backward integration project to establish manufacturing capabilities for the VAE emulsion, a next-generation environment-friendly emulsion will also provide us with a sustainable competitive edge and cost advantage in the future. In the face of the unfolding competitive landscape, we will maintain our consumer focus, keeping their interest in the forefront as we've been doing for decades. In the medium term, volatility in the macroeconomic environment is expected to continue as concerns over political transitions rise, particularly in Asia Pacific, Europe and North America. India remains well poised to deliver strong economic growth and its strong correlation with the domestic paint industry will ensure that we continue to grow well. Over the past few decades, our company has created tremendous value for all, and I remain confident that we will continue to do so in the future as well. I look forward to your continued support in this pursuit. Thank you. The notice convening this AGM detailing the business has settled in item #1 to 5 and the integrated annual report containing the audited standalone and consolidated financial statements for the financial year ended 31st March 2024 along with the Board's and the auditor's report and management discussion analysis report have already been circulated through the permitted mode to you and with your kind permission, I take them as read. As there are no qualifications, observations or comments or other remarks in the statutory audit and secretarial audit reports, they're not required to be read. In accordance with the provisions of the Companies Act, 2013, and the rules issued there under and Regulations 44 of SEBI listing obligations and disclosure requirements, Regulations 2015, the shareholders were provided with an opportunity to cast their vote through remote e-voting on the resolutions as set out in the notice convening this annual general meeting. The remote e-voting period commenced at 9:00 a.m. on Friday, 21st June 2024, and the facility was available to shareholders till 5:00 p.m. on Monday, 24th June 2024. Mr. Makarand Joshi, failing him Ms. Kumudini Bhalerao, Partners, Makarand M Joshi & Company, practicing company secretaries have been appointed as a scrutinizer for scrutiny of the votes cast through remote e-voting and e-voting during the AGM. Mr. Makarand Joshi has also joined this meeting. The voting results will be declared within 2 working days from the conclusion of this meeting. The results, along with the scrutinizer's report will be available on the company's website on the website of NSDL and the stock exchanges where the company shares are listed. I'd like to formally commence e-voting at the meeting for all those shareholders who have not cast their votes through remote e-voting in respect to all the resolutions, as set out in items #1 to 5 of the notice convening this annual general meeting. Members can click on the vote tab on the video conference screen to make use of this facility. The speaker shareholders may now ask questions pertaining to any item as fit for in the notice. Members are requested to keep their questions brief and specific. To avoid repetition, the answers to all the questions will be provided towards the end. Members may also note that the company reserves the right to limit the number of members asking questions depending on the availability of time. Thank you.

I request From Mr. Manoj Kumar Gupta to address the AGM, please.

Good morning, respected Chairman, Board of Directors, fellow shareholders. My name is Manoj Kumar Gupta. I've joined this meeting from my residence Kolkata. Sir, I feel proud to be a part of Asian Paints, and I feel proud to see you as our Chairman. Because as a shareholder of Ashok Leyland or IndusInd Bank, I've seen your leadership in both companies, that you have lead the company in the right manner to return to the employees and the investors. And we expect that we, small shareholders and the employees of the company expect that we will do the same in the Asian Paints under your leadership to return to the employees and the investors in better manner in future also. In this manner, you have returned in Ashok Leyland and IndusInd Bank. Because whatever the IndusInd Bank is today, that all credit goes to you, that you had lead and you have turned down the bank under your -- now come on the Asian Paints. Sir, how you -- I first of all like to thank the MD and the CFO for the excellent result of the company and higher dividend payout to the shareholder, INR 33.30 per share or INR 1 face value. And I thank to the company secretary and his team, especially Mr. Sahil and all share department, because those have helped us to join this meeting through VC. Now, sir questions. How you face the competition? Every day new paint company is coming. So how you face the company? Now the two big giants have also entered in this business like Aditya Vikram Birla Group and JSW Group. So how you face the competition in your business, sir. Asian Paints is the Asian Paints. No one can compete with the Asian Paints. [Foreign Language] Have you any plants slot any greenfield or brownfield project in near future? And what's your CapEx plan for the next 5 years? And how you will reward to the shareholder, bonus is overdue, sir. Your capital reserve is higher. So not to issue the equity bonus, issue the bonus debenture at a premium of 8% and redeem after 3 years. So think about that and we have got a good return. The share price is near about INR 3,000. And I believe after hearing your speech and the reflection we saw in the stock market and tomorrow, our share price will go up. And when we meet next in the AGM, our share price will be INR 5,000. And you will consider to reward to the shareholders. And I warm welcome the new independent directors, and we hope that we will get -- company will get their vast experience to grow more. Nothing to say more sir, and I wish to God to give you more success and with the team of management to take the company on new heights, sir.

Thank you, Mr. Gupta.

Now I invite Mr. Yusuf Rangwala.

Chairman sir, I'm very happy and very proud to be shareholder of Asian Paints. [Foreign Language] He is a very hard working, as I say, as a company and team. He is very polite to the shareholders. Sir, I'll come on directly to the point, dividend INR 33 on face value INR 1. It is very excellent and our brand ambassador Kohli [Foreign Language].

Thank you Mr. Rangwala.

Mr. Mukesh Ajmera.

Okay. My turn was supposed to be next, doesn't matter. Am I audible?

Yes.

At the outset, I would like to pay my respects to Ashwin Dani, whom we are missing. All these years, we have been hearing his name and watching him, but unfortunately, this year, he's not around. And he -- there are shareholders, on behalf of all the shareholders and my own behalf, I pay my respects to him for bringing the company to what it is, making it, #1, not only in the country but in other global markets as well. A couple of things I would like to say upfront. I want to congratulate to whoever's brainchild and idea it was, the speakers WhatsApp group has been created, which is excellent because whenever there is a physical AGM, we have a chance to meet other shareholders and speakers. But in -- after COVID, whenever we have this virtual meetings, which is again good, fortunately, this is the only good fallout of COVID that people from across the country and from any part of the globe can join an AGM. But it can also be made into a hybrid model of what Infosys has been doing for many years, having a physical meeting as well as virtual meeting for non-city shareholders. I'm upset at one thing, and that is, I have been sent a physical annual report being somebody who is very concerned about sustainable living, global warming and climate change. I would urge the company to spend it only to those speakers who are interested in having it. It takes one whole tree to make only about 10,000 pages of A4 sheets. It was eliminated earlier. There were some shareholders who have been asking for physical for whatever their reasons, only such people should be sent physical shareholders, like we have an RSVP for functions, lunch, dinner and weddings, we should have this kind of a thing even from shareholders, say at least 2 to 3 months ahead of time, and then accordingly print the number of annual reports we want to. And this practice needs to be followed by all the companies and perhaps the regulators like SEBI also needs to intervene in this. I would like to find out regarding the businesses that we are having, the home decor business, how much -- what percentage of business are we getting in that. I feel that a lot of push needs to be done in this. And it suits our company, but then, unfortunately, not much seems to be happening there though it exists. And -- there are a lot of other reverse integration things we can do, one of them being water purifier for homes. Many companies are already -- those who are non-entities, those who do not know ABCD of anything. They've also been entering this field. So with the brand image that we have, we can very well come up with a very reasonable priced water purifier but only if we come up with an RO, which does not waste water. Because as of now, all the models of RO have -- for 1 liter of portable drinking water, there are something like 3 liters of water being drained away. Of course, I've been using this because for the last 25 years, I am conserving water, I'm a nature person, I believe in minimalism. And -- but then most of the people don't. 99.99% people throwaway water which comes out of the water purifier. So this is one new business area I'm suggesting. In our global footprint, what I see is only a handful of countries in Africa and some in South Pacific, which is fine. But for the kind of company that we have been, I feel it needs to be expanded to a lot of areas. There are nearly 200 countries in the world. They should be there in at least 50 of them, if not more. And if we can penetrate the American market, which I don't know whether we have tried or not, but then that can be a very big game changer for the company, going international, if -- because the consumption is very huge and large there, but we should be able to compete with them. And also Latin America and other parts of Africa we need to concentrate on. I've been in international business consultant. If the company wants, I can render my help being a consultant in various different areas. Another area of concern that I have is, as all of us know, paint is a -- environmentally, it's not a friendly thing when it comes to its disposal. So lot of paint -- one of the things I would like the company to discover ways and emphasize is to eliminate wastage in purchase itself. There are a lot of people, especially painters, just because they are on a contract basis, they want to buy any amount of paint and then they end up wasting, either they'll take home or they'll throw it away. Now throwing it away is also causing problems anywhere and everywhere, especially in apartments, they are not allowed to dispose off paints and nobody takes it also, even in garbage disposal, it is not allowed. So company can evolve ways of converting this into something that is either environment-friendly or not harmful to the environment and there must be some ways of disposing or taking it back, having your dealer shops, disposal or something. This is a very serious concern and especially with the middle income group rising and the home decor, home business, home construction is going to be rising in the next 5 to -- 5 to 10 years when we are going to become the third global -- globally in terms of $5 trillion economy, we need to do quite a lot of these things, and we should be bothered about this. I complement the company for water neutrality, which is good. And hence forth, there are many different areas we can concentrate on. I would very strongly suggest that please try to concentrate on this area of home decor. Even if somebody wants to make something small, it should be possible, which others are not able to do. So this becomes a niche area for the company to penetrate the plywood and home interior making business, it doesn't have to be a full bedroom or a full kitchen or something like that.

Mr. Ajmera, requesting -- given there are other shareholders who are waiting, if we can restrict the...

Yes. I'm done. Thank you very much.

Thank you, Mr. Ajmera for your very thoughtful suggestions.

Now I invite Mr. Gautam Tiwari, please.

Sir, you can listen to me, sir?

Yes.

Can you see me, sir?

Yes, of course. Thanks.

Sir, first of all, I would like to really warmly welcome our Mr. R. Ramaswami, who has been doing a really good job along with our OUL team of AMD, Amit Syngle and Jeyamurugan. So I'm very much happy about it. And the company's is doing wonderful job despite so many other big brands who have entered our field of paints. Still, we are giving a very good competitive challenge to them, and I'm very sure we will pursue the deal. First, I would like to mention one things, we have been your shareholder right from day 1, sir. And speaker also, so our very most popular chairman, Ashwin Dani has been here since decades together sir. His demise has given a very big shock and really we cannot fulfill his demise so very quickly sir. His contribution to the company. And the way he has worked his strong vision and he has brought the company with his hard work experience expertise, liaison is wonderful, and we -- it is very difficult, we will never forget him and always we'll be missing him and he will be our memory our strong condolences to him and his soul may rest in peace. We heartly pray for that sir along with all shareholders. Sir, as I said, we welcome our Chairman, and we are very happy that we are in the long run, we are going get better results and better reward for shareholders. Sir as far as this Secretarial department is concerned, Mr. Jay Shah is wonderful, sir, his investor service is very good and since years together we have seen that he's doing very good hospitality, very good friendliness and politely and punctually, he is giving rendering his service to all shareholders for which we are very much grateful for providing and year-on-year service, and we are very much grateful to the management and to the Secretarial team for such a good service. Even I got the report -- physical report along with notice on request to me. Sir, Asian Paints [Foreign Language] INR 33 dividend [Foreign Language] which speaks volumes about itself and I'm very sure in the days to come, you will still be rewarding the shareholders very handsomely. Sir, I support appointments and reappointments of all directors. I also very strongly support all resolutions for which I advocate for each resolution very favorably. Sir, we have got complete trust, confidence and faith to the management, and therefore from day 1 on the company, therefore our lifetime support is assured. Sir, only 2, 3 questions I've got in my mind. Sir, what is your further road map immediately for this year and the next, and how are you going to in -- sir, what all arrangements you have done to face the challenges that Birla and JSW very big giants, those who have entered in the paints business, what new launches or what new moderators you have done, and sir, what -- for this particular quarter, what is the CSR and R&D spend of ours in this particular quarter. And sir, how many new and popular salable brands you've launched during this year or under pipeline. With this, I wish you all the best. Your superfine management will again, continue the company taking upwards and upwards and will keep rewarding the shareholders very nicely. Sir, bonus is due, please think of them. Here is the grand salute to you, sir.

Next, I invite Mr. Bharat Shah.

[Foreign Language]

Yes. Yes, we are able to hear, Mrs. Smita Shah.

[Foreign Language] Chairman [Foreign Language], Sri Seshasayeeji, Vice Chairman Sri Manish, MD CEO Sri Amitji and Sri Malavji [Foreign Language] Directors [Foreign Language] Very good day Sir. [Foreign Language] Very Excellent performance [Foreign Language] Late Sri Ashwin Choksi, Late Sri Dani [Foreign Language] NeoBharat Latex, Apex, Ultima, SmartCare [Foreign Language] Sri Muruganji, Saloniji excellent service [Foreign Language] Muruganji Sir [Foreign Language]

Yes, yes, Mr. Bharat Shah.

Chairman [Foreign Language] CSR activity [Foreign Language] Thank you very much, sir, [Foreign Language]. Thank you.

Thank you, sir. Thank you, madam, for your kind words and for your very useful suggestions. Thank you.

Yes. Next, I invite Mr. Kaushik Shahukar.

Yes. Am I audible?

Yes, you are audible.

Respected Sir and distinguished guests, good morning to all, it is honor to stand before this esteemed gathering today I extend my heartfelt gratitude, the Board for granting me the opportunity to be part of the important event. My concerns are, with the entry of Birla's in the paint industry, the industry will be going through disruption with the entry of Birla Opus, how is our company faced to the competition. We must also consider the resilience of Asian Paints business model and the measures in place to ensure shareholder's value remains intact. I have noted the absence of significant corporate actions, such as bonuses, distributions, stock [ plates ] or mergers and demergers aimed at enhancing shareholders wealth. Are there any plans for such initiatives in near future? Before I conclude, I want to express my sincere gratitude to entire secretarial team, I request support from our company in associating with me in the area of certification audit including Form 15CB. I believe that CSR means helping . I'm confident that Asian Paints shares this vision and commitment to support those in need. Despite my repeated request over the years, my request went unheard. I request that management has occupied. I understand stand that management has been occupied with other matters. However, I respectfully ask for a few minutes of your time to address my request and provide me with necessary justice for work. And lastly, I propose utilization the substantial savings from the virtual mode of this meeting for the benefit of speaker shareholders. This would involve arranging a site visit for shareholder or distributing token appreciation such as sweets or small gifts to our esteemed shareholders during festivals. Furthermore, I would greatly appreciate the assistance in facilitating an introduction with auditor for potential engagement in professional endeavour, given our professional affiliation, I'm confident that such a collaboration would prove mutually beneficial for both parties involved. Thank you for all your attention.

Thank you.

Yes. Next, I invite Mr. Praful Chavda.

Hello, [Foreign Language]

Yes, yes please go ahead.

[Foreign Language].

Thank you, sir.

Mr. Ashit Kumar Pathak.

Am I audible sir?

Yes.

Very good morning, respected Chairman, MD and CEO, Board Of Directors, Company Secretary, fellow members joining at 78th AGM of Asian Paints Limited. My name is Ashit Kumar Pathak., joining from Dum Dum, Kolkata. I express my esteemed gratitude to our company secretary, Mr. R.J. Jeyamurugan and Deputy Company Secretary, Ms. Saloni Arora and Secretary of Department, Mr. [ Sahil Mankar ] and leadership team for sending me the hard copy of annual report very well in advance and allow me to speak. Sir, before I start, I have homage to our earlier Non-Executive Director, respected Mr. Sri Ashwin Dani and for his sudden demise, I pray to God, for his soul, rest in peace, and his blessings spread to my company. Most welcome to our new Chairman, respected Mr. R. Seshasayee and in my company, and I have full confidence and his support and his guidance in my company in future and into financial performance. And sir, your most valuable opening remarks is for -- my the company. Also my congratulations to my company's management team and leadership team for achieving excellent financial performance financial year '24, beyond various domestic and global challenges. We have consolidated revenue achieved [ INR 35,494.750 crores ], near about [ 29.9% ] growth EBIDTA also [ INR 8,272.94 ] crores near about 24.5% up and net profit is [ INR 5,557.69, near about 32.5% ] higher. And also shareholder funds is [ INR 18,425.1 crores ], and also dividend INR 32.30 per equity share, excellent financial performance. Now coming to my brief views. In the mid-year report I noticed that in the year of financial year '24 to '29. The expected paint and coating market size is $15.04 billion. So throw some highlights, our CapEx program next 2, 3 years. And any plans for capacity expansion, either organic or inorganic way. Next, present market share of our paints and coatings and industrial paint in market share. Now I'd like to share some manufacturing, creating niche products, adding value-added services and emphasizing environmental responsibility. Throw some highlights, our strategies to mitigate this challenge. Also, Mr. Kaushik Shahukar raised how we face -- compete with new player Birla Opus plan, who likes to invest INR 10,000 crores and capacity [ 1,332 billions liter ] per year. If possible, throw some highlights. Present my company's attrition rate and capacity of utilization of our [ 10 plants ]. And what rigid steps we have taken in cyber securities and data threats because we have invested last financial year, INR 1,103.2 crores in IT segment. Also strong steps taken due to waste management. I noticed Safety LTIFR near about [ 0 to 40 ] and zero tolerance of FOSH, if possible throw some highlights. I noticed our debt is INR 92.6 crores. I think my company may be a debt-free company because free cash flow, near about INR 3,571 crores and surplus cash is INR 5077.8 crores . So if possible, for some highlights. And our last year working capital status as on 31 March '24 and working capital cycle. Please, throw some highlights. Near about industrial business contribution revenue, I noticed total revenue to [ 23.1% ] aggregating [ 1,105.5 crores ]. And our presence in 14 countries and also Indian ongoing manufacturing hubs, automobile, [ EV, PV ], SUV are very much uprising and also defense sector in Atmanirbhar Bharat. So what positive initiative we are taking to prospective industrial paint business, if possible, throw some highlights. And any plan to expand our footprints other than Asia, Middle East and Africa and South Africa, if possible, throw some highlights. Sir, I noticed our procurement of materials from local suppliers near about 76.2%. My think -- can it possible to make it 100% because we are setting higher logistic cost at present. Sir, any plan to -- reduction our energy, which we mentioned at 36% to achieve [ zero foot -- carbon print ] 2030, and all our paints are eco-friendly, if possible, throw some highlights. Because I noticed that it's greater for eco-friendly, zero to very low [ VOC ], paints are latex paints and recycled water based paints. If possible, for some highlights. Finally, I'd like to share that is not so -- I noticed that Page 403, note 41, who is that competitor again Apple against CCI order to NCLT and the present status of that hearing. If possible throw some highlights, I noticed in the annual report, Page #403, if possible, throw some highlights about this. And sir, finally, just short, I am shortly finishing this. Because we are -- what can we offsetting the challenge because -- and the production of paints, achieving consistency and uniformity and optimal performance, the critical challenges for manufacturing of paints and coatings mainly paints inks in milling and dispersion process are vital to achieving these costs. If possible, throw some highlights, which positive steps we have taken. Thanking you, sir. I pray to God, everybody good health and prospective of my company. Thanking you, sir.

Thank you, Pathakji. I think you've done a very detailed study of the annual report. I must compliment you for that.

Yes. Next, I invite Mr. Sharadkumar Shah.

Hello, hello?

Yes, please go ahead.

Can you hear me, sir?

Yes.

Okay. I'm very -- first, I have to start because I have registered my speaker name at the same time, I've got number of reminders from the secretarial department to forward my view, and I have forwarded and beauty of Asian Paints secretarial department, they not only ask for the comments or the views, but they reply also immediately, and I have seen companies for the registering speaker name, they want comment, without that they don't register speaker's name, particularly like KSB, Ambuja Cement and KSB is a very particular company. They analyze your comments and then only they select the speakers. So number of speakers are less and the meetings run very smoothly, sir. So please observe this because for all meetings, I change my comments, I don't have any problem with any companies, so if this particular KSB style is followed everything will be fine sir. And another thing, sir, I welcome our new Chairman, for him it's a new company and welcome you to Asian Paints but he was Chairman in number of companies last so many years. Only thing, what I wanted to know from him, is on page #31 there are 3 dates are written 25th July '23, and 26th October '23 and 1st April '24, on these dates, he has joined, that is not very clear. So if you can make the point clear, I will be very happy. Another thing, sir, in your day 1 speech. You say that Asian Paints have got complete product, showroom. And I'm saying in Bombay, last 60 years are more than that. But I have not seen that type of showroom so if you can give me address or forward that address to email, I will be very happy to know more about the Asian Paints and another thing, Chairman, beauty of Asian Paints company is -- there are a number of promoters, number of promoters and not a single promoter holds more than 5% and still they remain together they coordinate together and they run company very smoothly see that the interest of the company is more than their shareholding. And that is the principle they follow, and this is the only company where I found not a single shareholder holds more than 5%. They all hold less than 5%, sir. And another thing -- this particularly product showroom, what I say because I was looking at your balance sheet, there was paint called Terra. So I will come to know what is that Terra paint and so many things from the showroom sir, Another thing sir our result -- Now I have come to my main point sir. This is basically -- I have seen Page number for dividend and the dividend is increasing for last 5 years. And why this is increasing -- dividend increasing because my performance of the company are so good. But what I'm looking here now, sir, and we are -- you will say that we have got a dividend distribution policy. When the performance of the company is doing well, dividend is increasing that you have to change your dividend distribution policy, what I written to you, that Hindustan Lever on INR 43 rupees earnings per share and INR 42 and which is not only for this year, but which is continuously for last so many years and they don't want to keep dividends or the profits with them because they are very good companies, and they know that whenever funds, they can raise funds from shareholders. So that is why they don't retain profits with them and according to this, I've seen particularly that we must definitely give more dividends close to earnings per shares and dividend distribution policy to be also -- to be changed, sir. Before already written to you, please and this is my again reply to you. Sir another thing what I found, when I talked about results, performance, good EPS. My worry slightly here if I see these particular year, '23, '24, everything is fine, but my share price is stagnant and definitely companies should look because it may be because other companies like JSW, Grasim Indigo, last 2, 3 years, they are in the business. How we are competing work and how we can dash them that we have to look into it and only thing what I found, when my price is stagnant there was a government company, LIC, who was holding shares less than 5%, previous year. Looking they know that Asian Paints is best company, the company will do better and looking at this at lower price, they have increased their stake more than 5%. So this is my thinking that our promoters also think of this, that this is our company, which will do well and we should increase our promoter holding or our individual holding, sir. And I would like to know how many number of promoter or shareholders we have that is not -- I could not count. So if you can inform me, I will be very happy, sir. And particularly, all companies gives importance to ESG , I have recently -- one company asked me to take part in their ESG survey. And looking at that survey and who has made the questionnaire, really, I found lot of things are missing in that report. So as far as I'm concerned, ESG is not important to me at all. I look into the profit and loss account and also they decide whether the company would improve or not. Another thing, sir...

Mr. Sharadkumar Shah.

I've got only one point sir, most of the things are finished. Sir, only thing last dividend you've given in 2003 and people are asking every now and then declare bonus, bonus, so what I say is to keep these happy or keep their mouths close, please declare bonus distribution policy also like dividend policy so that nobody will ask you bonus once again and again. And last point -- only last point that Bombay lot of construction has taken place and this all constructions because of the rainy season there is leakage problem. And if I use my product -- my company use this product and stop this leakage then what will happen then it will tough advertisement to buy products and it is comfortable to Bombay with all constructions which will be leakage proof and if we do this our product will be proved. Particularly in Hanging Garden Coastal Road which are new and there is a leakage problem. So please look into this leaking and do needful, thank you very much.

Yes. Next, I invite Mr. Dharav Jamadar.

Good afternoon, and greetings of the day, Chairman and all the Board members of my company. I'm Dr. Dharav Jamadar from Surat. First of all, I would like to congratulate each and every stakeholder of my company for hosting such a fantastic sets of numbers in this fiscal year. Some of my questions which I would request the Board members to address are. First one, with respect to fabric and furnishing business, we are top second player. What are the major challenges that we might face in this fiscal year in this segment and can we take #1 spot in this segment? Second, after commissioning our new VAM and VAE plant in Dahej. Basically knowing that VAM is raw material -- primary raw material for various of our products as it is one of the basic raw material, particularly in adhesives, how much impact would it have on easing our raw material gross prices and improving our margins. Supposedly, crude oil prices, see above $90 per barrel in this particular fiscal year, how much impact would it have on our margins and bottom line, Particularly, we are unable to take a price hike because of various macroeconomic factors like rising competition and so on. For this fiscal year, overall realization came in weak due to a shift in product mix, towards the economy range, can you enumerate reasons behind it? And how are we planning to have a demand that would be having a balance of both premium as well as economic range of products? Next. On the international front of our business, we had a flat revenue growth. What are the headwinds that we have faced on that particular side, and do you think that the same would be prevailing in this fiscal year too. Last one, can you provide us some outlook on what amount of CapEx should we expect in this fiscal year for backward integration as well as forward integration activities and what magnitude of effect would it have on our gross margins.

So I am moving to next shareholder, Mr. Anil Mehta.

Mr. Anil Mehta, you're probably on mute.

Yes, we are able to hear you.

Good afternoon. This is Anil Mehta, attend this meeting from Mumbai. I already send my other questions in advance, and I received the satisfactory reply from your Secretarial Department. So there is not any more questions from my side. Thank you very much and all the best and thanks to the [ sahil ] for giving the updated knowledge about the meeting.

Yes. Next, I invite Mr. Santosh Kumar Saraf. Yes, Mr. Saraf.

[Foreign Language]?

Yes. Yes, sir.

[Foreign Language]

Thank you, sir.

Next, 2 shareholders not able to join, now I invite Mrs. Celestine Mascarenhas and Mr. [indiscernible] Mascarenhas.

Am I audible?

Yes. You are audible, ma'am.

Yes. I go on. Respected Chairman, other members of the Board, my dear fellow shareholders, I am speaking from Mumbai. First of all, I thank the company's Secretary and his team for registering me as a speaker, also sending me the annual report, also reminding me so much the team is so good, I'm very happy. And in the comfort of my home, I can speak very nicely here, thank you so much. Now I come to the annual report, it is full of pictures facts and figures, at the same time informative and self-explanatory. I backed adhering to all the norms of corporate governance. Next thing our working is very good in the case of Asian Paints. Always, the working is fantasic annual -- market capitalization is good. And whenever it feels the Board feels that they should give a bonus, they also give a bonus without we asking also. Thank you so much. Now very good dividend of INR 28.15 that is in these very difficult economic conditions with a lot of logistics problems declaring this much INR 28.15 is par excellence. I congratulate you for all the awards and accolades and also the good CSR work done to the society. Now so my queries, there's a lot written on the ESG. I am very happy. But my question is, have you rated this ESG, and if we have rated, what is the valuation and have we placed it on some dedicated ESG platform either in India or abroad, which will give greater valuation to our company. Next question is now we have list a lot of competitors. I would like to know what is our market share at -- because of this competition? Third is, how much of AI -- [ generic ] AI, cloud or quantum computing, we are using in our operations plus we do a lot of retail painting of the customers and all. So are we using these tactics to give better results? Rest, I support all the resolutions. I wish my company all the best, especially in health, as health is wealth. Now I hand over the mic to Mr. Mascarenas who will just now speak.

Sir, I'm the next speaker in the queue. Can I proceed? Respected Chairman, sir, very distinguished members of the Board and my fellow shareholders, good afternoon to you all. My name is [indiscernible] Mascarenas. I'm a proud shareholder of this prestigious company. I'm holding the shares for a very long time and in a huge number, a big quantity but in physical form -- both demat and physical, more in physical form, which I would like to demat. And I'm facing a lot of difficulty in demat. I would ask your cooperation. Now our results are excellent, far excellent, as shown on facts and figures, full of pictures. The annual report is so voluminous, transparent, informative and adhering to all the parameters required for a good corporate governance. In short, the 10-year financial highlight shows the financial progress of our company on a year-to-year basis, on all fronts, PBT, PAT, EPS, ROC, book value, everything, our market capital, everything has gone up the roof and a very handsome dividend of INR 28.15 that was INR 2,815, very good, very good, sir, mind-boggling. Wish this dividend payout remains constant or improves in future. We are excellent CSR activity and a very good risk management. And we are exporting not only to some neighboring countries, but other developed countries also, especially the UAE, Bahrain, Qatar, then smaller countries like Sri Lanka, Bangladesh and all these countries apart from our local. Now here in export, I would like to know whether we are receiving all the revenue, export sales revenue by way of dollar because dollar is increasing day by day as against the depreciating rupee. So we stand to gain. So I would like to know, sir, how much dollar income we are getting? And then another question that is in my mind that we are facing a lot of competition. There are a lot of new entrants like the General Paints, then Aditya Birla Paints and then the Indigo Paints and so many. So it might affect our profit margin. So to what extent has this competition brought down our profitability and how we are going to deal with such competitors. And I'm happy to note that we are doing very well. And on the ESG platform also, we are doing well. And many questions have been asked by my predecessor shareholders, I don't like to repeat. So I must -- I'm wishing you personally, all the Board members and more importantly, all the employees, all the very best in the days and years to come. With this, sir, I thank you very much for a patient hearing. I wish you and the company good luck and goodbye. Thank you for patient hearing.

Thank you, sir.

Mr. Manish Chambriya.

Good afternoon, Board of Directors, my dear shareholders, I'm an investor, Manish Chambriya from Hyderabad. Firstly, I congratulate the Board for our performance and highest dividend ever. My simple question would be, as I have raised the questions subsequent years since last 3 years, when would be the -- Board would give bonus shares to the shareholders as it has moved more than 20 years? The Board has not decided for the bonus shares as the stock split has been done in 2013. I once again congratulate the Board for a fantastic dividend and 27% CAGR since inception.

Yes. Mr. Jaydeep Bakshi? Yes, Mr. Bakshi, you can speak.

Can you hear me?

Yes. Yes.

Yes. Yes. Very good afternoon, Chairman, Board of Directors and key managerial persons. Myself, Jaydeep Bakshi, connecting from the city of Kolkata. Thanks to our company secretary [indiscernible] express my view and presenting a distinctive and informative annual report and also to [indiscernible] for keeping in constant touch before this AGM and for conducting this virtual AGM in a nice manner. Sir, a very good performance and initial video presentation and also speech was very much informative, and thanks once again for the higher dividend you have passed on to us. Sir, I have already sent my queries and I've already received my replies also, so I don't need to, in the pursue of time, to repeat those questions. Just want to know, kindly highlight on the decorative coatings products in your journey for beautiful homes. And how are you planning to counter these local players and plans to increase our stores across the cities? And any new concept through [ R&D ] and new technology application for printing for improved quality? And sir, what are the steps are we taking for wastage material though it is well attended, and how are you planning for the reusage of this wastage? And regarding CSR activity, kindly grow more awareness on water consumption because water shortage can be a dent for our growth. And because of this adverse weather which is prevailing now, this is -- water is a very much highly precious item. And what are our thoughts regarding the lowering of our carbon footprint and our thoughts for installation of solar panels? And nothing to add more. I have already casted my vote in support of the resolutions. And what are our thoughts regarding the after sales service after painting? And I had already painted my house interiors back 10 years back, but still this looks very fresh, I'm really satisfied with the quality of the product and nothing to add more and wish the company to go through the new heights under your guidance and cooperation with all [indiscernible]. Sir, kindly continue the digital conference so that we can keep in contact and this WhatsApp group has already helped us a lot in this video conference. Thank you, sir, and [ all the best ].

Mr. [indiscernible]?

Can you hear me now?

Yes.

At the outset, I would like to thank you for [indiscernible] exceptionally very good at the technical side [indiscernible] have really helped me. As a shareholder of Asian Paints, since 2014, me and my wife [indiscernible]. I'm very, very happy, and I congratulate the management for showing that excellent performance of the company [indiscernible] awards. But still I have doubts in my mind and which I would like to clarify. Currently, I want to ask you 3 questions: number one, is your global ranking is [indiscernible]? On Page 2, since you have stated [indiscernible] in Page 2, it states, we are [indiscernible]. Of course, [indiscernible] clearly says that you are among the top [ 3 ] [indiscernible] part of that, so [indiscernible] Number 2, can you -- this year, that means year 2023-24 has gone up only by 2.6%, what I can see from Page #6. Why so low revenue growth? It's -- revenue growth is not really good according to me. [indiscernible] so far in last 3 years, if you see, your compounded annual sales growth was at 18%. So why this year the growth has been only 2.6% -- is it because of your market share has gone down due to [indiscernible] or if it is decrease or there is a pressure buying our market share? Whatever it is, I wanted to understand from you why the revenue growth has been in the -- only 2.6%? Now the third question is that the market share -- in the share market, if you see that the price is normally around INR 2,800 and INR 2600 to INR 2,700, et cetera, whereas the highest was about a little bit high around INR 3,500 and below [ INR 900 and INR 1,500 ]. This current price is almost 20% to 25% lower than 52 weeks high. See, this [indiscernible] actually whereas your profit has gone up by 33% on a year-on-year basis. So I get to understand, of course, this is all going with the market expectations and what is market expecting and what we achieved. But I think we want to understand from you what [indiscernible] market has not followed the last 3 years, [indiscernible] about a year back, you had lost by over 50% in terms of price appreciation of the share. So we should be [indiscernible]. Thank you, sir.

Thank you. Yes. Next, I invite Mr. Reddeppa Gundluru.

Sir, voice is audible, sir?

Yes, you are audible.

Thank you, sir. Thank you, Amit. Enable my camera, sir. [indiscernible] and also other Board of Directors, company secretary and scrutineers, [indiscernible] my name is Reddeppa Gundluru [indiscernible]. I'm first time attending Asian Paints Annual General Meeting. First of all, I am appreciating your patient hearing, sir, so many members are speaking, they are taking time, even though you are patient hearing, highly appreciable, sir. So that is the reason our brand is [indiscernible] because our transparent governance. First of all, I'd like to thank our company secretary for sending me the physical annual general -- annual report. Sir, in this annual report, I found very good corporate governance, special CSR, special corporate governance, special green energy. Thank you for a wonderful corporate governance. Sir, thank you for a wonderful dividend also consistent financial growth. Sir, I would like to speak about our company brand. And this is my personal [indiscernible]. Sir, I have another [indiscernible] all other companies as active shareholder, but my experience here is very wonderful, sir, because the way of the -- keeping the shareholders, giving the importance of the proceedings and also the -- our [indiscernible] is calling and also testing and also giving some of the WhatsApp for coordination. This is the first time observing this Annual General Meeting. And that's the reason why brand is top -- in the top list in India. Thank you so much for wonderful performance. Sir, governance [Foreign Language]. And we really think that you are [indiscernible]. Thank you, sir. Sir, my [Foreign Language] questions to ask sir. So my question is, please give more dividend in coming financial years. So I would like to thank our company secretary's department for sending the annual report well in advance. And also, I feel very happy about the coordination. Thank you, company secretary and team. Finally, I'm concluding -- I have already voted and supported all the regulations, sir. Chairman sir, we have faith on you, trust on you, no single black spot in the company financials and your career also. Wonderful, sir. There is a [ proud ] shareholder. I'm a financial adviser. I used to recommend all my company for long-term investment, sir. So hopefully, coming financial year, we will achieve many more higher -- we will achieve higher [indiscernible] also. That's the reason I wish entire Board of Directors, entire [indiscernible] and the team, health [indiscernible] I wish good health and happiness [indiscernible] for wonderful opportunity. Please [indiscernible] wonderful, don't conduct a physical [indiscernible] able to attend globally.

Yes. Yes. Thank you. Now we invite Mr. Rajesh Chainani.

Yes, respected Chairman, R. Seshasayee; MD, CEO, Amit Syngle; Vice Chairman, Manish Choksi; and a very highly eminent distinguished Board of Directors; my fellow shareholders, my name is Rajesh Chainani and I'm speaking from [ Palghar ] Mumbai. So first of all, I thank our company secretary [ Ajith, ] Jeyamurugan and the secretary team for sending me the physical copy very well on time, which is full of knowledge, facts and figures in place. And I really thank the secretarial department who are continuously calling and reminding us to attend the meeting. So it's really a very good corporate commands. This is a secretarial department, which is a link between the shareholders and the Board of Directors -- with the Board. So they are doing their job very well, sir. I really appreciate and thank the secretarial team. Sir, on promoter holding, I just want to know our promoter holding is 52.63% and SEBI has permitted a -- we can take it to 75%. So are there any plans of increasing the promoter holding from 52.63%. And sir, regarding the share capital, I would like to say that everybody knows that it's INR 95 crores [indiscernible] on the surplus. So our place value is INR 1. So I can't tell you to do anything on valuable place value except -- now the only option left for us is like you can come out with some bonuses. It's been a very, very long time, sir, long period, sir. And Mr. Seshasayee, you are very generous. You have taken -- showed clearance from where to where I remember. And sir, I met you in Pune in 2018 in IndusInd Bank, when you were the Chairman. So sir, you have a lot of patience with the shareholders. And we were the ones who are telling you, sir, so much time the shareholders are taking. So you said like, you should be mature enough, they should know how much to speak and what to do. So really, I learned a lot from you, sir. So I'm -- even I'm also patiently hearing everybody. Second thing, sir, from Page #24 to #29, the Chairman message and MD message, I've gone through, sir. There's -- a lot of excellent coverage is there, sir. Sir, regarding the new players, [indiscernible] and General. Sir, one of the analysts meet I attended, now Astral is also -- even the Astral company has also entered into the paint industry but -- though into the rural areas. So sir, that's a separate issue, sir. Let them come [indiscernible] competition, but we are much, much ahead and part of our [indiscernible] only we can make out where the company is heading for, sir. So sir, I won't take much of the time, but [Foreign Language]. And sir, the company is related to the festivals so -- and the coming months are all festivals, [Foreign Language]. Thank you very much, sir, for patient hearing. Thank you, sir.

Thank you. Mrs. Sachit Patel?

Very good morning to all of you, respected Chairman and Board of Directors, I am Mrs. Patel from a Mumbai. My throat is not [indiscernible], so please forgive me. First, I would like to congratulate the company, the Board of Directors, the management team and all the employees of the company. It is their hard work, which has given this good result to us. They have worked very hard throughout the year. All the employees, I congratulate you. I thank you very much for your hard work. Please -- I wish that you sustain this hard work for the coming years also. Sir, the company has said very well. And because of that, we have received quite good amounts [indiscernible] recognition throughout. Good CSR activities has also been performed. Here, I would just return and thank our Mr. Jeyamurugan for the good annual report also and good shareholders' information you have given. Please at least once in a year, sometimes luring us up and do talk to us, Mr. Murugan. Only -- it is only AGM in which we can talk. [indiscernible], excellent work from you throughout the year. Very good work, very hard working and very humble man, very good in maintaining the relation with shareholders. All the best to you, [indiscernible] and your team. I also would like to thank our old Board of Directors, Mr. Choksi, Mr. Dani and Mr. Vakil on the basis of whom today, Asian Paints stands. Mr. [ Seshadri ], thank you very much for the good result as the Chairman -- as a CEO, as you have given us. I would here like -- just 2 points I would like to mention, sir, that -- of course, bonus is pending as being told by a few shareholders before. And also, if possible, I know it's a paint company, but, sir, even pharmaceutical companies are taking us for factory visit. Paints company can also take us for factory visit. We have the plastic full cover for protection from the smell. If possible, take us some day in the whole year for shareholders, it is only AGM that on this basis, we are able to come to know about the activities of the company, come to know about the financial activities of the company also. Sir, so many companies, maybe even Asian Paints, I'm not so sure of it. But people hold -- companies hold Analysts Meet. I don't understand why Analysts Meet has been given so much importance by other companies also. It is the shareholders who are investing their hard-earned money in the company. Analysts are not sharing their hard-earned money in the company. They are not putting their hard-earned money in the company. It is the investors [indiscernible] throughout the year, I find over 4, 5 times that is Analysts Meet, Analysts Meet. Analyst either make the company or they the mark company by their remarks. It is many times they mark the company by their remarks. So instead of holding the analysts meet, it should investors meet, shareholders meet. [indiscernible] an AGM, we are supposed to talk only for 10 -- 5 minutes or 8 minutes or 10 minutes and the Analysts Meet is throughout the year 4, 5 times. Why does stepmotherly treatment for shareholders? Give importance to investors, give importance to shareholders. And the middleman is eating the cake. The middleman is eating the cake. Between the company and the shareholders, it is the middleman who's eating the cake. Why? Lakhs of rupees that middleman is taking from the company, not being any good service to the investors. Kindly, please take a note of this. I've been telling this in almost all the companies. Secondly, I would like to draw your attention to the after sales service of the company. You all are also into metal tax, not pipes [indiscernible] somebody else, metal tax. I purchased some metal [indiscernible] 4, 5 of them, very good brand it was, very good quality it was and a little more costlier it was. But I found that within 6, 8 months, the tap is -- some fault is coming out of the tap. Now when I report to it, it becomes very difficult for me. I'm going to change the tap, it was costly, again, to change the tap. What is the guarantee that, that tap also will last for at least 2, 3 years, 5 years? Well, within 8 months, 10 months, the tap has given me, I find it very difficult. Then I have -- and I also request the company that we should at least have something in common between the shareholders and the company. Give preference to us. Allow us to participate more in your financials in the growing -- growth of the company. We are putting not -- only we have put once, we keep on buying. We are keeping on buying the shares. So give us also some good chance to participate in the management of the company. But anyway, I'm just drawing your attention, wishing you all the best. And Mr. Choksi, Mr. Dani, Mr. Vakil, we have faith in you, faith in your power, faith in your running the company. Please -- wish all the best. I wish you all the best in the coming year, in the forthcoming years also and make the company become -- today, the company is eighth in the world of paints and seventh in the most valuable company. I wish the company becomes #1 in the valuable company in India and from eighth our position should go at least to third or fourth. I wish the company all the best, and I'm sure it will grow because the quality of the paint is really very good. Only -- please make the aftersales service a little more comfortable for the users. Thank you very much. And all the employees, I wish you all good luck, all the best. And I'm -- your kindness for making excellent results. Thank you, all of you.

Thank you. Mr. S.P. Bisania?

Sir, I'm [indiscernible] from Bombay. Sir thanks for giving me an opportunity to talk. Sir, I would like to know, quarter 4, why the profit was less compared to quarter 3 and also compared to quarter 4 of last year? And sir, how will competition affect us because so many new people have come in the market? And sir, hello? Okay. Sir, all the best for the future. I just wanted to know about this only and how the competition will affect us. Thank you very much and all the best.

Yes. Now I invite Mr. Keerthi Shah.

Chairman sir, My name is Keerthi Shah. Chairman, sir [Foreign Language]. Wish you all the best. Thank you very much.

Thank you. Let me first thank you all for your participation. There have been a number of questions that you have all raised. I will try and answer as many as I can. But if some of them remain unanswered, please send your queries by e-mail to the company secretary. I must mention that the questions are all coming as a result of your very deep involvement and your engagement with the company, and particularly thankful to you for your kind words and for the goodwill. Let me address the question from Mr. Manoj Kumar Gupta. On your question, how we'll face the -- face new competition, we'll continue to work very strongly. We have a lot of very key strengths, tremendous amount of competitive sense that we have. And we've always kept the customers as the center piece of all of our activities and they'll continue. And we have also seen many such competitors in the past. And as you know, your company has always maintained its lead. And we won't take any new competition for granted. But we will ensure that, that spurs us to even greater focus on the consumer, on innovation and bringing in new products. And I must also mention that the industry potential is very large. The per capita consumption of paint in our country is still very low. And there's plenty of headroom for everybody to come in. And we'll continue to grow, continue to maintain and improve our market share through diligent working, through innovation and customer focus. On the question of CapEx, we have -- your company has announced a total CapEx plan of about almost INR 8,800 crores over the next 3 to 4 years. This will cover both brownfield expansion as well as some new greenfield plants that we would acquire. In addition to that, in the expansion of capacity, we will also be investing in the VAM VAE as well as white cement, which are by way of backward integration initiatives, which will give us certainly cost advantage and competitive advantage. On the question of bonus, I know that this has been an issue with many shareholders in many companies. We have always taken steps to reward our shareholders, who repost faith in the company and have a remind with the company loyally for many, many years. So we certainly would look at an opportune moment to look at that. But what is important and what we keep in our mind is the long-term returns as well as the liquidity, the short-term return to shareholders. So the stakeholder returns, the shareholder returns will be a very important criteria in our governance, and we will keep this in mind. And this is the question raised by Mr. Rangwala, we are #8 in terms of ranking, in terms of global coating industry and the third largest in Asia. A number of people have raised questions about factory visit. We'll evaluate because we have to be mindful of various safety requirements. We look at what possible solutions come as a result of this review, but we'll keep this in mind. Mr. Ajmera, you made a request for AGM being conducted on a hybrid mode. We will certainly evaluate the benefits of this excellent suggestion for next year. We'll also take note of your suggestion for sharing the annual reports only on request basis. Your concern on the environment is something very noteworthy. The question of revenue contribution from Home Decor, that's about 4% of our total revenue stream. In terms of the query on expansion in other parts of the world, at this stage, we continue to focus on strengthening our presence in our existing global geographies rather than increase our footprint. But at the same time, if there is a good opportunity in any new market where the management will certainly evaluate this on merit. Regarding environmental friendly ways of disposing, your company has always placed highest focus on its waste management policies. Our plants are all 0 liquid discharge plants. And we continuously look at investing in newer technologies to manage our solid and other ways. Mr. Gautam Tiwari, regarding the question on CSR, we focus on the core area of enhancing vocational skills, water stewardship, health and hygiene, SLS and disaster management. We continue to spend as for the requirements of the Companies Act, and the initiatives that we have taken are creating major social impacts, which we measure. In the last year, we introduced various new products, the latest being NeoBharat Latex paint, to adjust the last bottom of the pyramid demands. We also introduced Nilaya Naturals, a range of ultra luxury and environmental-friendly paint. The question raised by Mrs. Smitha Shah on the sale of Latex paint, I'd like to say that we have introduced this product across our network over the last 3 to 4 months. We're getting an extremely favorable traction for this product across markets. Mr. Shauker, you inquired about any plans the company is working to this competition. I mentioned to you that we would continue to focus on the customer and on our innovation, on our competitive strength. And we are quite confident that we will face competition as we have indeed done in the past. As a market leader, we have also brand salience, which we will continue to expand and consolidate our position. Addressing the question from Mr. Rashid Pathak on market share. Please note that within the organized space in the industry, our company will have a 50% plus market share, but there's a vast unorganized market as well. The question about attrition rate, it was around 18% in the last financial year and was in line with attrition levels observed inside and outside this industry. We presently have about 75% capacity utilization. Regarding the question of the debt, it is towards interest-free government grant as a result of investment in manufacturing capacities in certain states. Otherwise, if we don't have external borrowings, we are a debt-free company. On your question on working capital, your company has increased its inventory holding in the last few years to tackle the supply chain uncertainties as well as to address the steep inflationary pressures on various raw materials. The other elements of working capital remained within control. Respect to the question on Industrial business, we have registered very strong double-digit growth in both the industrial businesses. The strong infrastructure spends and focus on promoting manufacturing by the government, that has given us a great boost for the industrial paint demand. Regarding the question on energy intensity and 0 carbon emission, your company has invested more than INR 240 crores to put up about 42-megawatt renewable energy capacity. And that gives us almost 66% of our energy requirements in the manufacturing plant. We've also taken various steps to optimize the manufacturing cycle times and thus reduce our energy intensity. On the carbon emission front, our scope 1 emissions have decreased by 40.7% and while scope 2 emissions have seen a remarkable 47% reduction compared to the base rate of 2013-'14. Addressing the question raised by Mr. [ Sharat Kumar Shah ] on dividend share price, your company has increased the dividend payout from around 55% to 60% in the last few years. The share price movement is a combination of the company's financial performance as well as various market factors. As always strive to deliver sustainable performance, which have been suitably appreciated by the market as is evident in the market improvement over many, many years. Total number of remote shareholders, we have 120 promoter shareholders as on date. Mr. Jamadar, for a short span of 3 years, your company has become the #2 player in the fabrics and furnishing space and has ambitions to grow further focusing on providing superior value proposition at various price points in the segment. The question of impact on margins due to VAM, we think that this is going to add significantly to our margins. On the question on low value growth in the last financial year, it is a combination of multiple factors like subdued demand, especially in the second half of the year as well as down-trading impact in the premium segment as a result of the price increase undertaken earlier. We expect better demand conditions in the bank of an expected good monsoon and supported by the price corrections undertaken in the last 4 to 5 months. Mr. [ Santhosh Sharaf ] had raised a query on the use of AI. Your company has evaluated and implemented AI capabilities in various areas like manufacturing, distribution as well as customer relationship. Mr. Mascarenas had requested for support on demat to physical shares. Our secretary department, I'm sure, will be -- definitely will be glad to assist you, and I'll request you to reach out to them. Mr. Jaydeep Bakshi's query on the journey of Beautiful Homes. We have ambition to establish as the most integrated Home Decor brand in India. This will be realized through the development of a robust digital network over a period of time. We now have 60 Beautiful Homes stores across the country, offering Home Decor products across categories. On your question on technology improvement for improved painting, the company has introduced various mechanist painting tools, which reduce the time taken to paint as well as reduce paint wastage. Dear members, in any case -- in case, any of your queries has been not been answered, please feel free to write to the company secretary. Thank you very much again for your participation and your constructive suggestions. Members may note that the voting on the NSDL platform will continue to be available for the next 15 minutes. Therefore, members who have not cast their vote yet are requested to do so. The resolutions as set forth in notice shall be deemed to be passed today subject to receipt of the requisite number of votes. We had 150-plus members participating today in the 78th Annual General Meeting. We are grateful to all our shareholders from all over the world who joined this meeting through videoconference. Friends, with that, I conclude today's proceedings. Thank you all for making it convenient to attend this meeting. We look forward to seeing you again next year. Be safe, be healthy. Thank you.