CCL Products (India) Limited (519600) Earnings Call Transcript & Summary

Ladies and gentlemen, as a requisite quorum is present, I welcome you all to the 63rd Annual General Meeting of CCL Products India Limited and appreciate your interest in being with us today. As this meeting is held by using video conference or other audiovisual means mode, I would like to take you through certain points regarding participation at this meeting. The facility of joining the AGM through video conference or other audiovisual means is being made available to the members on first come, first serve basis. Once the question-and-answer session starts, the names of the shareholders will be announced in sequential order who have registered as speaker shareholders. Subsequently, the audio of the speaker shareholder will be unmuted by the host. To avoid any background noise and to ensure smooth conduct of the meeting, all the members who have joined this meeting will be placed on mute mode by the host. To start speaking, each speaker shareholder is requested to click the video-on button appearing on the screen only once, and wait till the video is on. Before speaking you're requested to take note of the following points: Please ensure that there is no noise at the background at your end and that you'll have a strong Wi-Fi connection for the device you have logged in. And no other device is connected to the same Wi-Fi. Please ensure that you switch on the video and have adequate background lighting. You can speak through audio mode if you're unable to switch-on the video. If there is any connectivity problem at your end we may ask another speaker to join. Once this connectivity is restored you may be called again to join once the other register speakers complete their turn. I would like to request the speaker shareholders to kindly restrict their speech to 3 to 4 minutes. The questions raised by all the speakers will be answered after all the speakers complete their questions. During the proceedings of AGM, if any member faces any issue, he or she may contact the helpline number mentioned in the notice of the AGM. Now please allow me to explain the sequence of the meeting and voting process for the resolutions. The Companies Act 2013 and SEBI Listing Obligation and Disclosure Requirement Regulations 2015 provide for electronic voting facility for the AGM. Accordingly, the company had provided its shareholders with the facility to cast their vote through the remote electronic voting system administered by CDSL. Facility to vote at the meeting is also provided to the shareholders who have not voted -- to scrutinize the votes cast at this meeting and through remote e-voting as well. Since this meeting is being held through video conference and other audiovisual means and the resolutions mentioned in the notice convening this meeting have already been put to vote through e-voting, there will be no proposing or seconding of the resolutions. I now request our Chairman sir, Sri Challa Rajendra Prasad Garu to conduct the proceedings of this meeting. Thank you.

Good morning, ladies and gentlemen. I welcome you all to the 63rd Annual General Body Meeting of CCL Products India Limited. As per the requisite quorum is present, I call the meeting to order. Before I proceed further, I request all the directors who have joined this meeting through video conference to introduce themselves. I, Challa Rajendra Prasad, Executive Chairman of the company, participating in this meeting through video conference from U.S.A. I request Co-Directors and shareholders.

I'm K.V. Chowdary, Independent Director, joining the 63rd Annual General Meeting from my residence in Hyderabad. I'm the Chairman of the Audit Committee. I'm also a member of the NRC Committee. Thank you.

Good morning, Chairman, Directors and members. I'm G.V. Krishna Rau, Independent Director of the company, participating in this meeting through video conference from the U.S.A. I'm a member of the Audit Committee and Stakeholder Relationship Committee. Thank you.

Good morning, Chairman, Board of Directors and members attending the AGM. I'm Durga Prasad, Independent Director of the company, participating in this meeting through video conference from my office at Hyderabad. I'm the Chairman of Corporate Social Responsibility Committee and also a member of the Audit Committee and Nomination and Remuneration Committee.

Now good morning, Chairman and members of the AGM. I'm Kulsoom Noor Saifullah, Independent Director of the company, participating in this meeting through video conference from my residence at Delhi. I'm a member of the Audit Committee and Corporate Social Responsibility Committee.

Good morning, everybody. Chairman, sir, and members of the Board. I'm Lanka Krishnanand, Independent Director of the company, participating in this meeting through video conference from my residence at Warangal. I'm the Chairman of Stakeholders Relationship Committee and Risk Management Committee and also a member of Audit Committee. Thank you.

Very good morning, Chairman, and also independent directors of the company, the other directors of the company, along with the members -- my name is Sudhakar Ambati. I'm Independent Director of company, participating in this meeting through video conferencing, my residence in Gurgaon. I'm the Chairman of Nomination and Remuneration Committee and also member of Audit Committee, Risk Management Committee and Corporate Social Responsibility Committee. Thank you very much.

Good morning, Chairman and members. I'm introducing Challa Shantha Prasad madam on her behalf. She is facing an audio issue, and she is -- madam is attending this meeting, and she is also attending from -- participating from U.S. Madam is also a member of Corporate Social Responsibility Committee. Thank you.

I am K. Kasyap Sarma, Non-Executive and Non-Independent Director of the company, participating in the meeting from my residence at Hyderabad. I'm a member in the Audit Committee.

Good morning, Chairman, other directors and members of the company. I am S.V. Ramachandra Rao. I am a Non-Executive and Non-Independent Director of the company. I am also a member of Nomination and Remuneration Committee, Audit Committee, Stakeholder Relationship Committee and Risk Management Committee. I'm attending this meeting from my office at Hyderabad. Thank you. Good morning, Chairman, members and directors. I'm Mohan Krishna, Executive Director of the company, participating in this meeting through video conference from the corporate office of the company, Hyderabad. I'm a member of the Risk Management Committee. Thank you.

Good morning, Chairman, Directors and members of the company. I am Challa Srishant, Managing Director of the company, participating in this meeting through video conference from the corporate office of the company, Hyderabad. I am a member of the Risk Management Committee.

Thank you, sir. I also confirm the participation of Sri Praveen Jaipuriar, Chief Executive Officer; Sri V. Vuduta Lakshmi Narayana, CFO of the company; and the representatives of statutory auditors and secretarial auditors -- AGM. Chairman sir.

I thank all the shareholders for joining this meeting. We are holding this meeting in video conference in compliance with the circulars issued by the Ministry of Corporate Affairs. For the information of all shareholders, the proceedings of this meeting are being video recorded, and the live streaming is also being done electronically casted on the website of CDSL. The company has taken all the requisite steps to enable the shareholders to participate in the voting process on the items of the notice of this AGM. Since there is no physical attendance of shareholders, the requirement of appointing proxy is not applicable. The registers as required under the Companies Act 2013 are open for inspection electronically. There is no qualification in the secretarial auditor's report in the statutory auditor's report. With your permission, I take the notice of the meeting and the auditor's report as read. Now I would like to share a few thoughts of the company and its future prospects. Ladies and gentlemen, I am extremely happy to share our achievements for the financial year '23-'24 and our vision going forward. First, I want to express my heartfelt gratitude to all our shareholders for our -- for your unwavering support. Your trust in the cornerstone for our success, and we reflect on our journey and set new goals. You have had the chance to review our annual report and audited financial statements for the financial year 2023-'24, which I will consider as read. Our key highlights for this financial year, a new spray drying plant has been commissioned on 16th March 2024, a wholly subsidiary of part and parcel of CCL Foods and Beverages. We have enhanced our technological capabilities by redesigning our fuel system to utilize solid waste as fuel for our boilers and also implementing advanced technologies like vapor compression system. Additionally, we aim to expand our renewable energy generation by augmenting our current 0.9 megawatt capacity. We are exploring options to set up a hybrid wind solar module. I would like to touch upon our performance for the year 2024. Despite challenges like rising coffee prices and geopolitical tensions, we have delivered good results. For consolidated turnover reach -- our consolidated turnover reached INR 2,654 crores with a net profit of INR 250 crores. The stand-alone turnover was INR 1,456 crores with a net profit of INR 95 crores. You are already aware that your directors have -- Board of Directors have recommended a dividend of INR 4.50 per share, including the interim dividend of INR 2.50 per share. A brief review of our subsidiaries. Ngon Coffee Company, Vietnam. I'm happy to report that the operating was for about a decade. Ngon Coffee achieved turnover of INR 1,147 crores with a net profit of INR 145 crores in the year 2024. We are expanding the manufacturing capacity with a freeze-dried plant there in Vietnam. Continental Coffee SA Switzerland. This subsidiary reported a turnover of INR 282 crores and a net profit of INR 12 crores. Our efforts to secured local supermarket orders are gaining traction. CCL Food and Beverages Limited, the Indian subsidiary has established a greenfield project for manufacturing spray-dried instant coffee. It has commenced commercial operations from 16th March 2024. Continental Coffee Private Limited, after demerging of coffee business is now left with food and beverages kiosks. We foresee good future in this line. In the Indian domestic market, our branded business continues to thrive, surpassing the INR 200 crore milestone. All distribution channels, general trade, modern trade and e-commerce are contributing to this growth. Our capacity expansion has been very impressive, growing from 55,000 metric tons per annum to 71,000 metric tons in year '24. We aim to -- in future to expand to INR 77,000 crores by the year '25, '26, position us -- positioning us as one of the largest private instant coffee -- private label instant coffee manufacturers in the world, especially significant in a market growing at a very low single digits. Looking ahead, we remain committed to strengthening our presence in the B2B coffee sector while building a robust B2C business. Our ultimate vision is to transition CCL into a vibrant FMCG organization. The prices of green coffee are hardening and are on an all-time high. The company is continuously monitoring the situation and is taking all necessary steps to profitably deal with the situation. Your management is hopeful of delivering good results in this difficult situations also. In closing, I want to thank the entire CCL family, our shareholders, employees, other outsourced resources, customers, distributors, channel partners, suppliers, banks, government authorities for their continuous support. Regarding shareholders, your confidence in us is invaluable, and we are dedicated in creating lasting value. As we move forward, I assure creation of shareholder value and look forward to your continuous support. Thank you. Sridevi?

Yes, sir. So if you permit, I'll read out the names of speaker shareholders.

Yes.

Thank you, sir. First speaker shareholder. Arun Kumar Boppana.

Give me a moment, ma'am, please. Arun Kumar kindly unmute and go ahead.

Hello.

Arun, we can hear.

Greetings to everybody. I made an address at CCL AGM. Rajendra Prasad -- [ Chiranjeevi ] or Rajendra Prasad you're younger than me. I don't like the VC meetings. But in your case, I should like the VC meeting. You are like Wale, who takes the power of the opposite guy. I didn't want to lose my power, so I came to address you out of conviction, not like moody or salient meeting for convenience. First, I'd like to compliment you for the X return that you gave and the high market cap in the 3 decades and for the value creation. And more important, last 5 years was terrible, but you survived being next to Tadepalli Palace. So I think it is like malaria negotiating with mosquitoes. I compliment you for that, Challa Rajendra Prasad, because you're amazing as far as dealing with the government there. I know the history right from the day you came out public. It was 1 month lonely journey. It was because there was no structure, it lost the plot and order. And many years, the Sun did not shine and the wind did not blow. There was a risk of survival and existence with the risk of vanish into thin air. But you stayed in the ring to face the risk building the business year after year with perseverance realize the true value. Here again, like malaria, you negotiate with the mosquitoes. I compliment you for that. Again, it's the power of one, Challa Rajendra Prasad, you met the challenges, never quitting being the power of one, decision-making a bit uncertainty with clear view. And you unfolded CCL as a champion of instant copy overcoming the barriers preventing losses, your success is publicly visible, not the cost. I know the cost that you paid. So, again, I compliment you for that. You knew the way, went the way, and showed the way. And I think Eric Berne, Thomas Harris and Peter Truter are far behind you in the management techniques. But here, I would like to come to the reality is history has always seen X growth companies arrive at a maturing end of the business cycle. What is the risk for CCL. The market is challenging with many new competitors. We are at an inflection point with burdening loans. The challenge is we have crossed initial lapse of growth and maybe a near saturation point at some point. And how many of our customers have turned manufacturers, so we lose our customers too. We must examine how long can we continue our low price point advantage? Are we focusing on premium products? And my questions, what is your risk appetite? Will you reduce exposure to high-risk investments? What is the current debt? Maybe it's the highest in the history of CECL. How do you plan to retire the debt? What will be the supplies product in future? I know all trees don't grow to the sky, but I would like you to come out with a product who will grow to the sky and mismatch and availability of labor, workforce and the price at which they're available. What is the attrition rate? And what is the backup for a sudden departure or death? With increasing instant coffee manufacturers, what is the addressable instant coffee market? What will be our pie? And will it shrink in future? And what is the employee experience throughout their hire to fire to retirement journey in CCL. The human resources are very important, and we have to remain true to human values in the fast-changing digital world. And what is the impact of geopolitical issues on coffee, raw materials and prices. Now we have a professional CEO. So, Q-to-Q, quarter-to-quarter, we call it qayamat se qayamat in Bombay. It will be an acid test. I'd like to follow that. I would like your company secretary to post me the figures quarter-to-quarter. What are the plans for national distribution and national presence? And are you entering new geographies and enlarge our presence in existing ones? What is the total addressable market for local instant coffee? What are the investment in new variants of multiple price points? How do you reengineer cost and grow our beans export business? Less plastic and less sugar is your mantra, what are CCL actions. And my appeal to the independent directors [Foreign Language] there is a lot of responsibility to take care of small investors and retail investors' interest. Sit here in times saves line addressing the following. What are the steps in leadership accountability, what are steps in succession planning, what are the outcomes, what are the actions? What gets measured can we manage? So I hope you take some action. Lastly, astrology occupation to me, I get into the astrology occupation because a lot of people are misguiding. And I was doing it free. Now I'm doing for charity for building a cancer hospital in Hyderabad. And my journey has been great discovery and this discovering various mysteries because our lessons of self-thought and [ God Arden ] to enhance welfare to create positive image. In conclusion, Challa Rajendra Prasad and CCL, you have historical burden to take care of our 3,000-plus families and more. What others expect of you is to be dealt. Closing on a lighter note on communication. Kasyap Sarma always ask about astrology. His heart is good. It will last as long as he lives. Thank you very much. Wish you all the best.

Thank you. Thank you. Sridevi, anybody else?

Yes, sir, there are totally 16 speakers. Now I'm going to announce second speaker, Srikant Jhawar.

Give me a moment, please. Srikant Jhawar is not present in the meeting. Ma'am, sir is present in the meeting. Just one moment.

[Foreign Language]

[Foreign Language] Jhawar.

Respected, Chairman. All other Board of Directors. Good morning, sir. [Foreign Language].

Sir, next speaker shareholder is Senthil ManiKandan K.

Sir, kindly unmute yourself.

Good morning, sir. Am I audible? Ma'am Am I audible?

Yes, yes. Please go ahead.

Good morning, Chairman, and all the Board of Directors. Sir, first of all, thanks for the opportunity and it's great to see that B2B company out of India has been scaled up globally to be among the top 3 in terms of instant coffee manufacturing. So first of all, I think a huge right for India itself. So just coming straight to the question, sir, just a couple of questions from my side. First, on the B2B side, since we have scaled up our capacity over the last 3 decades and now with even the current greenfield capacity has been commenced, so next 5, 10 years, what should be the growth [indiscernible] or should the shareholders should be looking from the B2B side. Either it's going to be a cash flow generating part or management will further enhance the capacity going forward? That's first my question. The second question is on the -- related to the comment that the Chairman has made in terms of vision of the company to be a full-fledged FMCG company in the coming decades. So recently, I think we have piloted some business on the plant-based meat. And then we have recently put up cafes for the coffee. So if you can just share the broad strategy in terms of selection of products that the company will be entering because FMCG as a sector is very competitive on the lot of existing MNCs and domestic companies on that. So how does the company plan to enter differentiated products within the segment and things like that? So broadly, the vision to evolve to FMCG. So if you can just share some insights into how should look at it will be helpful. Those are -- that's broadly the two questions from my side, sir, and all the best to the entire team for the coming financial year.

Thank you, Senthil Ji. Next speaker is Muhammad Afzal Ali.

Give me a moment. Mr. Afzal, kindly unmute and go ahead.

Hello. You can hear?

Yes, yes.

Hello?

Yes, Afzal Ji, please go ahead.

Yes, you can hear me?

Yes, you are audible.

Thank you for giving me this opportunity. I'm very grateful that I am the CCL product shareholder. This is a 63 AGM, I think so. Sir, you are going very well and share price also is increasing and the brand you are selling, I have purchased in Hyderabad also. Nowadays, it is valuable. Before it is one plus one offer is there. Now we have to purchase only one, not an offer. Please see that offer will be done next time, sir, because your provide coffee is very good, sir, compared to another coffee. I'm using it at my home. Sir, the company secretary has given the link and before time and the annual report also I have received, the secretarial department is doing very well, his job. I'm very appreciate Sridevi madam that since 10 years, I'm seeing that madam is doing her job very well. And this is the right way you have choose that online meeting. The physical meeting, the many shareholder has coming, they are not bringing another person's shares and taking the gifts. It is going very -- I want to -- I don't want to tell the names, but they are doing misuse. This is the right way you are doing. Don't do physical meeting, sir next time. SEBI has given the rules. Please follow these rules continue only. Please next year also, we go to online only, sir. Thank you for giving this opportunity. Thank you, sir.

Thank you, Afzal Ji. Next speaker Vinod Agarwal Ji.

Just a moment, ma'am. Mr. Vinod Agarwal, kindly unmute and go ahead.

Hello. Can you hear me?

Yes, we can hear you.

Yes.

Respected, Chairman, Challa Rajendra Prasad Ji; CEO, Praveen Jaipuriar; and CFO, Vuduta Lakshmi Narayana; CS, Sridevi; and our MD Challa Srishant Ji. Good afternoon and good morning. I voted for all the resolutions to be adopted in today's AGM. The revenues at INR 2,660 crores were up 29% over the previous year INR 2,074 crores. The PAT also has been -- was a little less due to higher input cost of coffee and other things. And even the finance cost, I think, have gone up this year. Sir, what I marked in the annual report, and this is my observation, sir, is that there is a current work in progress of INR 500 crores, which I think is mostly in the subsidiary because the stand-alone done show that kind of current work in progress. It would be in the -- I think it would be in the Ngon subsidiary. Sir, I'd like to know what is this INR 500 crores going into? And sir, we have done a merger, demerger. The dividend you have paid is INR 4.50, it's about merger, demerger into Continental Coffee Private Limited, which already is a subsidiary of our company. But that subsidiary has been making losses and has a negative net worth. What will be the impact overall on the balance sheet of our main company, I'd like to know. And the CSR, the work you have done very, very good, sir. You have spent INR 4.91 crores against the mandate of only INR 3.98 crores that was much more than the amount that you are required to spend by about INR 92 lakhs, INR 93 lakhs, which is good. And I'm thankful to Madam Sridevi and Mr. Lakshay for helping me join today's AGM. I sign off Vinod Agarwal from Mumbai. Thank you for giving me time to speak, sir. Thank you.

Thank you, Vinod Ji. Next speaker, Meenal Bhagat. Meenal Bhagat Ji.

Meenal Bhagat is not present in the meeting.

Okay. I will put next speaker. Abhishek Ji.

Mr. Abhishek, kindly unmute and go ahead.

Yes, can you hear me. Am I audible?

Yes, yes.

First of all, management, on the eve of Annual General Meeting. Sir, trust all is well with you and your family. In this challenging situation, our company deserves much more respect than the current market cap after completing more than a decade of successful operations, profitability, dividend history and becoming one of the strongest brands in the respective segment. Sir, as of date, how many employees are there in the company? What are the steps being taken by the management related to other expenses [indiscernible] and the audit fee. Myself and my team are running a legal firm, [indiscernible] associates. So, I request the management to the kindly enroll the firm in the environment of the company, and we will be glad to extend our services, sir. Sir, then the company has a very good corporate governance practice, sir. I do appreciate the management for that. And you can see we are really thankful to the entire Board of Directors for the sincere efforts in bringing the company to this particular extent and rewarding the minority shareholders in good numbers. And we can see that your hard work is translated into numbers, and we are able to see in the market, sir, and we are able to derive the fruits today. So kindly trying to consider hybrid AGMs in the years to come, sir, because most of the senior citizens are not able to join because of the digital challenges in this virtual platform. So you can consider hybrid AGMs in the years to come, more number of shareholders can join in the meeting. Valuable point ideas that will be helpful for the management going forward in future. So, please kindly consider sir, and nothing much to answer. Sir, I would also request the management to kindly take care of the hospitality part of the investor priority. We are missing those physical AGMs 5 years back, and this is the fifth year we are meeting virtually. We are not able to meet you physically. So we need to meet you and greet you, sir, so kindly give us an opportunity. And nothing much to answer. I wish the company and the Board of Directors a great success and prosperity in the coming future. And thank you for giving the opportunity, sir. Sir, one more shareholder, Mr. P. Jaichand, who is a subsequent speaker shareholder will join in from the same device, sir, in the interest of time. Good morning, respected Chairman, Board of Directors, Secretary and his team and my fellow shareholders. Sir, I and my family are proud shareholders of the company from the date of IPO. I request the management to reduce the expenditure as cost cutting effective wherever possible. I request the management not to take away maximum profits into results and also consider bonus issue to shareholders. If not, the only agreements of shareholders is expecting better dividend and appreciation of share price. What are the future expansion plans? How are we going to withstand the tough competition? I wish all great success. I wish our company will touch sky heights. The management with great efforts and hard work have established our company. The corporate governance is wonderful. The turnover and profits have increased. It's a joyous moment. All credits goes to the management. Sir, it's the right time to reward the shareholders, sir. I hope the management will not let down the shareholders who are stood behind in thick and thin. Also, please consider the hospital for the shareholders, sir. I thank the management for giving me the opportunity. Thank you, sir.

Thank you, Jaichand Ji. Next speaker shareholder P. Gopal Ji.

Mr. Gopal, kindly unmute and go ahead.

[Foreign Language]

Yes, sir.

[Foreign Language] Thank you very much.

Thank you Gopal Ji. Next speaker shareholder G. Vandana Ji.

Vandana ma'am is not present.

Okay. Next speaker shareholder is Padmana Ji.

Just a moment. Padmana ma'am so also is not present.

Okay. Next speaker shareholder is Prakashan Dalada Ji.

Just a moment. Not present.

Okay. Next speaker shareholder is A.V. Manisundaram Ji.

Just a moment. Mr. Manisundaram, Kindly unmute and go ahead.

Hello.

Mr. Manisundaram, Kindly unmute and go ahead.

So my name is Manisundaram. I'm very happy to attend this meeting by means of video conference because I am from Tamil Nadu, Salem. And also I am appreciated what I have invested in CCL product. It will be growth, yes, [indiscernible] and also, I welcome this AGM, Chairman, Board of Directors, Challa Rajendra Prasad sir; Sridevi Dasari, Company Secretary. He has given good service and also helping to all the shareholders, very happy, sir. And we're requesting what is their plan expanding in next year in future. And a small shop also should be contained with CCL product, sir. It is very -- it is my requesting for to be development business in small shop also should be tea shop, coffee shop and at both bus stand, all-star should be contained with the CCL product. Very happy, sir. Please consider hospitality of shareholder. We have met before COVID, more than 5 years. And what is the future plan, expanding our new brand should be in launch it. We supported all the nature, always be voted favor to the Board decision. We support all the resolutions, sir. Thank you. Thanks a lot. Please consider hybrid meeting in next year. Please consider hospitality. Thank you. Thanks a lot, sir.

Thank you, Manisundaram Ji. Next speaker shareholder Praful Chavda Ji.

Mr. Praful Chavda Ji, kindly unmute and go ahead.

Hello? [Foreign Language]

[Foreign Language] Praful Ji.

Thank you, Chairman, sir, Board of Directors. [Foreign Language]

Thank you, Praful Ji. Next speaker shareholder Bharath Raj Ji.

Bharath Raj Ji, kindly unmute and go ahead.

Yes, good morning, Mr. Chairman, entire Board of Directors, I'm Bharath Raj attending from Hyderabad. Wonderful Chairman speech. And Chairman, sir, sir, I miss you so much. Once this physical AGM, we can meet you personally. At least this year, we'll have a physical and hybrid mode, sir, who can attend the VCR and who can come physically, they come. I support all the resolutions, sir. There is no questions to raise. I thank my secretarial department and P.S. Rao Garu and his team. Once again, God bless you Chairman, all the best for coming years. Thanks for the dividend payout. And I'm happy, sir, you have donated to the Andhra government recently this cyclone effect wonderful, sir. You're always great man support the CSR good, sir. Once again, my best wishes to you, all the best for coming years. Take care, sir. God bless you all. Thank you very much, Bharath Raj signing off from Hyderabad.

Thank you, Bharath Ji.

Sir, all the speaker shareholders have completed asking their questions.

So what we will do, Sridevi, I will answer most of the questions collectively, okay?

Okay, sir.

See, first, Arun Kumar. See, Arun, we have thoroughly always reexamined any project or any activity before we really take it up. See, on the business front, we operate on a cost-plus model and buy the raw material only back to back. Therefore, covering of any inventory risk is -- normally, it is very negligible. See, as far as your question on the debt is concerned, frankly, for a company of our size and what we really look at, see the expansions, what we have done, see now the long-term debt is only INR 678 crores. And the other one is a working capital that is automatically whenever we are using the raw material because of the orders, it will nullify. So there is no risk on the working capital. See, this debt also in next maximum 3 to 5 years, all the debt will be completely cleared. The working capital limits, which is linked on a day-to-day business operation. So that should not be a major issue at all. Regarding the innovation of the key driver, how we drive -- see, detailing it is -- frankly, it is very difficult for us to discuss in an open forum. You know what the problems will be. See, and you are talking about mismatching in the availability of workflows and the price available. See, in our structured way of recruitment, we have not faced any labor issues at all because we only take -- if there is any requirement, we always take and there should not be any long-term -- any problem. We have always been, see, if you look at our instant coffee manufacturers, if you are sinking you're saying, see, more than 50% excess capacity for not only here, see, worldwide, there is always a capacity increase always there. In spite of that, if you look at for the past several years, we have grown on average for the past 30 years, we have grown. How did we grow? Because we keep on adding markets in different countries. A client who has been buying maybe we started buying for 100 tons, the same client started buying in this past 20, 30 years, he became 1,000 tons. So for them, we keep on expanding. So we are very, very less risk-taking company. Jhawar, talk about exceptional employee experience. See, and then hiring also, most of our employees are with us since the inception. So that itself shows our commitment towards our employees' relationship. And also see the impact of the geopolitical issue, what you have told Arun, in spite of various geopolitical issues, including Red Sea issues, wars, commodity prices fluctuations, slowdown in certain economies, we adapt to changing circumstances very quickly, and we have ensured that the sustainable growth is always there. We plan much ahead. So that's why all these things on a long term, see, we can -- our company is never taken on a quarter-to-quarter basis. If you look at the yearly basis, then everything will fall whatever we have planned, it will easily come into force. Also, when we are talking about utilization, we are consuming 25% of our power requirement at EOU in the form of renewable energy and we'll explore to increase further in the due course. On the same lines, we are evaluating options to increase our dependence on renewable energy in other units also. Our national distribution, we have already started to expand our network nationally. We are right now mostly in the southern states and slowly, we are going there also. So one step after other, we will be doing quick -- most of the other things, we will be following it up. We are also in the investments of variants, you have asked for variants of multiple price points. Considering our coffee expertise, we are available in all segments and supporting the new initiative through the above line and both above line and the below line, we have been active. And your reengineering cost and growth of export business, our efficiency in our key driver. However, detailing it out openly in open forum, it will be deterimental to all the shareholders. Regarding the questions you had for the independent directors, see, we take all stakeholders under CCL umbrella. So a strict in time, you only said that we -- there is no reason for us to know where we fall. We always are together. That's the reason we have been growing year-on-year. So I'm sure it will continue. Arun, I hope I have answered most of your questions. If there are any specific, so please get back to us. We will definitely reply. Abhishek Karla Ji, your question. Trust all is well with you and your -- see, we have noted all your thing. There is no seasonality in our business. So growth triggers remain. Similarly, throughout the year, our growth figures are largely about acquiring new customers, entering into new markets, into the newer markets and aggressive growth in the domestic market. See, domestic market also, we just started. Actually, we just started about 2 years seriously. So one after another, it will add, and we are very, very confident next 3 to 5 years, you will see tremendous amount of advantage for CCL in the domestic market. You all know that we have such fantastic products. So we were lacking only. Slowly, we were entering because being a very conservative company, we were doing on a step-wise, we are just putting baby steps. We are confident that we will achieve whatever is required in the future, we will do our best. Production capacities and all that, it is very difficult to give the openly because of our own competitors. So whatever the utilization, any expansion, we first try our best to sell as much as possible. Then only we keep on expanding. Yes, sometimes because of the products, because of so many issues, there will be -- initially only there will be 20% to 25% to start with. Slowly, it will increase. In a year's time, we go to more than third year, we normally go into 50% to 60% capacity. That's the reason if you start -- if you really look at our capacities from 3,000 tons per year, CCL when it started in 1995, now 70,000 plus, it is unheard of any instant coffee company in the world. So we are confident that whatever we are taking, we are doing very, very carefully. We are confident we will achieve all this. Regarding the employee stacking and the salaries and all see, we never sack any employee. Till date, nobody is sack. Maybe one or two guys must have gone. Otherwise, we don't sack. Our policy is not there. And there is no salary cut also. Till date, we have never cut anybody's salary. Innovation in our key driver. So however, detailing in out, again, I told you, it will be very, very difficult for us to question that. See, cost hospitalization is a constant endeavor. We keep on doing whatever possible to see that where do we cut costs. Somebody else also asked the same thing. There is nothing. We -- if you compare any company our size, our costs are very, very minimal. So we do everything possible to save every rupee. So regarding any financial questions, I will request the CFO, Mr. Lakshmi Narayana, to answer. Any specific questions are there, please kindly ask. Sridevi?

Yes, sir.

Find out if there is anything specific.

Sir, there are few.

Thank you, sir. There are a couple of questions that have been raised by a few shareholders about debt part and the finance cost and the focus on reduction of the expenses and all. So, as you rightly stated, sir, working capital is backed by the volume of the operations. So it is almost -- it is a liquid position always. And that cannot be really taken up that part is concerned. About the term loans, as everybody knows that we have taken up a couple of projects, one in India and one in Vietnam, whereby we have invested almost 100 million total capital outlay. So for the total 100 million, we have contributed our part of the amount. And because of that, and second is that as we are going from April '22 onwards, globally, the interest rates have gone up. So because of this reason and the increased volume of the working capital utilization, the interest cost has gone up. But now slowly, we have completed both the projects and have started the operations. Going forward, it is going to reduce further from the financing level of the debt and as well the finance costs are going to be reduced. Regarding the focus on the reduction of the expenditure, it is our constant endeavor to focus on continuously to wherever that's possible to keep reducing the expenses and which will support for the betterment of the bottom line. So, I request the Chairman sir take it further.

Okay. Sridevi, if there is no other question, find out.

Sir, if there are any questions of shareholders, we'll answer them, sir, if they made to us. Most of the questions have been answered, sir.

Now I would like to authorize the Company Secretary, Mrs. Sridevi Dasari, to conduct the voting procedure. E-voting will be open for the next 15 minutes, and the results will be announced within 48 hours from the conclusion of this meeting and will be intimated to the stock exchanges, uploaded on the website of the company and also on the website of CDSL. I thank all the shareholders for taking the initiative for joining the meeting through the video conference and also working with us patiently to conduct this meeting. I thank all the directors for joining this meeting from different parts of the world. With your consent and other Board members would like to leave the meeting. Krishnanand Ji, can you please propose your vote of thanks.

As we conclude our Annual General Meeting, it is my honor to extend a heartfelt vote of thanks to our esteemed Chairman, Sri Challa Rajendra Prasad Garu for conducting this meeting. I also thank you, sir, for your unwavering commitment to our organization. Your ability to engage with all members and address their concern has been invaluable. I also thank who participated in this meeting and made this AGM a memorable one. Thank you, one and all.

Thank you, sir.

Thank you, sir. Thank you, everybody.

Yes, sir.

Thank you.

Thank you.