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

Good morning, ladies and gentlemen quorum is present, I welcome you all to the 65th Annual General Meeting of CCL Products (India) Limited and appreciate your interest in being with us today. As this meeting is being held using video conference or other audiovisual means [indiscernible], 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 mode is being available to the members on first come first serve basis. [Operator Instructions] 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 Annual General Meeting. Now please allow me to explain the business of the meeting and voting process for the resolutions. The Companies Act 2013 and SEBI Regulation 2015 provide for electronic voting [indiscernible] for the AGM. Accordingly, the company has provided its shareholders 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 yet and shareholders may go to e-voting page of CDSL website and cast their votes. Mr. [indiscernible] Company Secretary has been appointed as Group President to scrutinize the votes cast at this meeting and through remote e-voting as well. Since the meeting is held [indiscernible] There will be no proposing or seconding of the resolutions. I now request our Chairman, Mr. [indiscernible] to conduct the proceedings of the meeting.

Good morning, all shareholders. I welcome you all for the 65th Annual General Meeting of your company. It gives me immense pleasure to share with you the company's performance and the progress achieved during the financial year '25, '26 and talk to you briefly about what lies ahead for all of us. Before I proceed further, let me take this opportunity and extend my heartfelt gratitude to all the shareholders in extending their unwavering support and faith in the company. As we stand at the intersection of fast [indiscernible] and further aspirations, I assure you that your trust will continue to be the corner stone of [indiscernible] The annual general [indiscernible] for the financial year 2025, '26, along with the audited financial statements have been with you for some time. With your permission, I shall take them as read. The past year affirms an important our belief that has guided us through our journey that is built by me to shortly strengthening the fundamentals of the business. Our focus has remained on improving operational efficiencies, investing in capabilities, nurturing customer relationship and preparing the organization for sustained growth in the years ahead. I would now like to highlight the financial performance of the company during the year against a dynamic operating environment. CCL Products delivered another year of strong performance [indiscernible] business model and discipline [indiscernible]. On a stand-alone basis, the company [indiscernible] in the year. [indiscernible], registering the growth of approximately [indiscernible] in the previous year. [indiscernible]

Good morning. This is K. V. Chowdary, Independent Director, joining the meeting of -- the Annual General Meeting of CCL Products Limited from [indiscernible] in Kerala. I'm an Independent Director. I'm the Chairman of the Audit Committee. I'm also a member of the HR Committee of the committee. Thank you very much.

Thank you, sir. [indiscernible]

Good morning, Chairman, Directors and members. I'm Durga Prasad Kode, Independent Director of the company, participating in the 65th AGM of CCL Products Limited from my residence at Hyderabad. I'm the Chairman of the Corporate Social Responsibility Committee and also a member of the Audit Committee and the Nomination and Remuneration Committee.

Thank you, sir. [indiscernible] Sri Lanka Krishnanand?

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

Thank you, sir.

Good morning. I am Kulsoom Saifullah, Independent Director of the company, participating in this meeting through video conference from my residence in Delhi. I am a member of the Corporate Social Responsibility and the Audit Committee.

Thank you, madam. Sudhakar, sir?

I'm Sudhakar Ambati, Independent Director of the company, participating in this meeting through video conferencing from my residence in Gurgaon. I'm the Chairman of Nomination and Remuneration Committee and also a member of Audit Committee, Risk Management Committee and Corporate Responsibility Committee. Thank you.

Thank you, sir. Thank you all. I would also like to confirm that Sri [indiscernible], Non-Executive Director and Non-Executive Independent Director of the company is also participating in this meeting through video conference from the corporate of [indiscernible] Hyderabad. She is a member of Corporate Responsibility Committee and Stakeholders Relationship Committee. I also confirm the participation of Sri [indiscernible] Non-Executive and Non-Executive Independent Director of the company, participating through video conference from [indiscernible]. He is member of Audit Committee, Stakeholders Relationship Committee, Nomination Committee and Risk Management Committee. I also confirm the participation of Sri [indiscernible], Executive Director of the company participating in this meeting through video conference from the corporate office of the company. He is a member of Risk Management Committee. Also confirming the part of Sri [indiscernible], Managing Director of the company who is participating in this meeting through video conference from the corporate office of the company. He is a member of the Risk Management Committee. I also confirm the participation of Sri Praveen Jaipuriar, Chief Executive Officer of the company; Chaithanya Agasthyaraju, Chief Financial Officer of the company. [indiscernible] auditors are also present at this meeting. And now sir can we....

[indiscernible]

Okay. Now I request [indiscernible].

[indiscernible]

[indiscernible]

Good morning to everybody. Nice to see you smiling CRP, a long time since we met. People have forgotten to appreciate things. So that's why I would like to appreciate the origins of CCL. CCL is an entrepreneur success story of a coffee company in the 20th century, which you started under license [indiscernible] enforced 18th century outdated loss, and you made it a grand success. Now it's a global institution with international customers, thousands of employees and substantial share capital. Still remains one man's leadership to global skill, spanning instant coffee, freeze dyed, roast, ground remixes, et cetera. I stay in Mumbai and Bangalore and always on the move. One thing I'm against is -- I mean, [indiscernible] I'm for physical AGM at least once in 3 years because we have to see the independent directors because they are supposed to talk to them and see how independent they are. I think [indiscernible] is laughing. I hope we meet some time. See, an AGM is not eligible to perform. It's only a statutory form, but is it legal and is it ethical and model to have only VCs and not a physical meeting and not allowing us to meet the independent directors. Actually, I would call it as a parliament of shareholders and trust is tested, stewardship is measured and confidence is renewed. Dividends are declared, buybacks are weighed, directors are appointed and reappointed auditors interested and remunerations are revised by the shareholders. It is one occasion where every shareholder, whether holding 1 share or 1 million share has an equal voice to question, to challenge and understand. It is where management expected to respond not with [indiscernible], not with authority alone, but with accountability. And accountability is not a burden to bear. It's a privilege for those interested to care. See, my journey started 25 years ago in the corporate AGMs. First meeting when I went to Mahindra, [indiscernible] Mahindra wrote to me saying Dr. [indiscernible], you must attend all my meetings. And the other undisputed Chairman of the corporate world directly invited me to his cabin in the corner office for a cup of coffee. Ever since the amount of respect we gave to shareholders is enormous. I hope you continue the same legacy here also because you have done very well. So [indiscernible] AGM strengthen investor confidence reinforces good corporate governance and preserves the enduring principles of transparency, accountability, stewardship and shareholder democracy. The market cap measures wealth, but AGM measures trust and only trust can sustain across generations. My question, if senior top level staff are suddenly unavailable tomorrow, who takes charge? Does the company have a formally documented a Board-approved emergency succession plan? And has it been tested? As CCL becomes a global institution, how will you ensure the succession is based on competence with independent directors have a decisive role in assessing leadership capabilities, performance and success readiness. Board approved long-term succession pipeline and is reviewed annually by the independent directors. In conclusion, I wish you all the best. And I would like to remind an AGM is where [indiscernible] conscious governance find its purpose, leadership earns legitimacy and shareholders find their voice. I wish you all the best. Good seeing you smiling. I wish you all the best.

You can always see me smiling when I never try never complain or ask anything shareholder. So I most wanted in Bombay. Thank you.

Thank you, sir. Next speaker shareholder [indiscernible].

[indiscernible] is the soft copy of the AGM notice to follow. I'm you prepared parameter the AGM notice. I don't have and I support all agenda items. I have already sent the email [indiscernible], I have a few questions. What is the market share we have domestic as well as international market? [indiscernible] And now how many land we have for the coffee and how many plant for coffee manufacturing as on date in our organization. I wish good luck and bright future for coming financial year and coming [indiscernible]. Sir, please remember [indiscernible].

[indiscernible]

Chairman sir, first of all, I'm very happy to see you safe and healthy and fine. Chairman sir, I want to thank wonderful [indiscernible] program and thanks for the wonderful dividend payout. You are a generous man, always give wonderful dividend payout to the shareholders. Sir, I also thank to the [indiscernible] the annual report and the link and always accessible, sir, maintain the good corporate governance. Chairman, sir, my questions sir, due to geopolitical war situation, the fuel cost has increased, what has been the impact on my financial, sir? Due to geopolitical war situation, the import costs have increased, sir, the shipping and containers. So how you face this challenge, sir? What will be the impact in this financial year, sir? Sir, what is your CapEx plan in this financial year? And what is the future plan of the coffee, sir, please let me know. Once again, sir, my brand is accessible to all the outlets in India and supermarkets in every small outlets also. I want to appreciate, sir, making the brand more accessible sir. Once again, my best wishes. I'm [indiscernible] from Hyderabad. Thank you.

Next speaker [indiscernible].

I appreciate company's work because he has given link before time and he sent me the annual report well in advance. I appreciate and I have a chance to speak in this AGM with the support with CS. Thank you. Nothing to ask anymore. Many shareholders are asking very what I have to say, but I have to appreciate the company management with the dividend track and the share price, everything is good and the coffee taste very good. Many old shareholders are invested and they got the profit. I can't -- I don't have any words, but they are playing the good to grow our company. I also playing the good. I appreciate all things, nothing to ask. Thank you very much for giving this opportunity. Thank you, sir.

Next speaker shareholder, Abishek [indiscernible].