Colgate-Palmolive (India) Limited (500830) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to the Colgate-Palmolive (India) Limited Investor Conference Call for the Financial Year 2021. We have with us today Mr. Ram Raghavan, Managing Director of Colgate-Palmolive (India) Limited; Mr. M.S. Jacob, Chief Financial Officer; and Sujata Nairi, Head Commercial and Investor Relations. Today's session will start with a brief presentation by Mr. Ram and Mr. Jacob, sharing their views on the overall company's performance and strategy. This will be followed by a Q&A session. Please note that the conference call will include forward-looking statements. These statements are made on the basis of company's views and assumptions as of this time and are not guarantees of our future performance. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ram Raghavan, Managing Director of Colgate-Palmolive (India) Limited. Thank you, and over to you, sir.

Thanks, Aman. Good afternoon, everyone. First and foremost, welcome to our analyst call for Q4 2021 and full year 2021. To begin with, I hope you, your family, your near and dear ones are all safe and healthy. Our hearts go out to every one of those who've been affected by this terrible pandemic that continues to hit us for extended periods of time. I also would like to take the opportunity to thank you, critical stakeholder of ours, our customers, our business partners, and our employees for their unbelievable support, commitment, dedication and hard work that continues to allow us to do what we do so well. Last, but certainly not the least, I really would like to thank our consumers. It is ultimately for them who we continue to make sure that we can deliver unbelievably sustainable products. It's their smile that gives us the resilience and the commitment to keep smiling and make sure that we remain and keep our country smiling. I'm sure you've seen us -- seen the results we've already announced today. What I thought between Jacob and I, we could give you a little bit more color and a lot more narrative to the story behind the numbers. To begin with some key highlights. We're really pleased with the growth momentum, and we continue to see that momentum carry through both in terms of results versus year ago as well as an important metric of seeing sequential movement across quarters. Quarter in, quarter out, we're continuing to see that trajectory headed in one direction and one direction only. What's also particularly pleasing is the fact that we're now seeing double-digit growth across all our key categories. Certain categories, particularly toothbrushes, which were, to some extent, discretionary in nature, had seen an impact in the second quarter last year, and we're really thrilled to see that come back as well with strong double-digit growth this year as well. What's also particularly pleasing is the combination of our growth. While rural markets continue to outpace urban markets and continue to have a sustained level of growth. What's particularly pleasing is the fact that our urban growth is coming back and the gap is narrowing between the 2. Not because rural growth is slowing, but more importantly because our urban growth is seeing resurgence. The second aspect that we're truly proud about is the overall and structurally well-rounded set of results we've been able to deliver, whether it's the strong gross margins of 67.5%, up almost 300-plus basis points, or the healthy profitability, both in terms of EBITDA as well as in terms of an outstanding 54% NPAT growth. We truly believe that we are able to drive the required levels of investment that has not only delivered the strong organic results -- sales growth results, but also made sure that we've delivered on all ratios across the P&L and balance sheet. Third, and an equally critical metric is the strength of our brand. Ultimately, this is what drives long-term sustainable and profitable growth. We remain India's #1 penetrated brand at a staggering 88% and this is across any and every category in the country. We're also seeing our strengthening brand metrics, specifically on top of mind and attitudinal equity. In fact, our top-of-mind metrics are at the highest they've been in 5-plus years. Last, and certainly not the least, we're really thrilled about the fact that now we're leading the conversation when it comes to oral health in our country. And you'll see a lot more about that in the subsequent slides. We've spoken to you in the past about our strategic framework. We believe that it is thorough and thought through, and the discipline that we used in terms of making sure that the execution is subsequently focused on every one of these pillars allows us to deliver that sustainable and profitable. It all starts with building brands, building strong and sustainable brands because they give us that commitment, they give us the loyalty from our consumers that allow us to deliver these results quarter in, quarter out, year in, year out. You're all very familiar with the tagline by now, "smile karo aur shuru ho jao," but this truly captures the essence of the purpose of our brand, where we believe that everybody deserves a future they can smile about. We bring this to life across multiple initiatives where we look to pick on subject matters, which are truly at the cusp of societal challenges. And we make sure that we bring them to life in a very optimistic -- with an optimistic tonality, truly reflecting the values that Colgate, as a brand, stands for. I'm pleased to share with you something unique and very, very new. And this time around, our latest in the sequence of "smile karo aur shuru ho jao" stories. This one comes from someone I know every one of you are very, very familiar with, which is Yashasvi Jaiswal. Believe it or not, we've had the honor and the good fortune of being a part of Yashasvi's life long before he's already achieved what he has and long before his accolades -- we've been able to -- he was part of our Keep India Smiling initiative. We identified and spotted him back in those days, in his growing years, and are truly thrilled and excited to watch him already succeed. I'd like to show you what will be our latest execution that goes on air very, very soon. Could you play his video #1, please? [Presentation]

Over to you, sir.

Thank you. I'm sure you enjoyed that. What a charismatic smile. You can't help but feel optimistic yourself when you hear about his story. We truly wish him all the very, very best for the future years ahead of him. Next goes on to the core of our business. 2 variants of brands that you are very, very familiar with, the backbone of the core of our toothpaste portfolio. Once again, we're very happy with the growth that we are seeing with both the core businesses growing strong double-digit growth and accelerating as quarter-on-quarter as the year has progressed. What's particularly pleasing is that we continue to be amongst India's most distributed brands, which reflects the trust and faith even our retail partners have in us. Despite all the challenges, they continue to make sure that our SKUs are the top few SKUs that they continue to hold in their portfolio which, in effect, is a reflection of the confidence they have in its ability in terms of its velocity and offtake and demand. In our constant efforts to make sure that we keep the brand refreshed and contemporized and truly stay a step ahead of our consumers in terms of making sure that the relevance of their needs are constantly met, we keep our brands refreshed through a series of initiatives. The latest one on big red is what the one I'm about to share with you. This campaign goes live again in a couple of weeks, where we look to further strengthen the connection between oral health and overall health. The brand has always been about strong teeth and now it's about strong teeth that allows you to chew your food better, therefore, giving you, your body, the sustenance and the nourishment it truly deserves. Can we play video number #2, please? [Presentation]

Over to you, sir.

Thanks. The next initiative is Max, a very different brand, a very different outlook, but still all about championing optimism. But in this way, doing it with the youth of the country and energizing them every single day and giving them an opportunity where every single day is a fresh and a unique start. In this [indiscernible], again, we continue with our ambassador, Ranveer, but again, with a very, very different and new message. Our latest communication, which once again goes live in a few weeks from now, takes on a very relevant subject of today, which is all about trolling. Giving the younger generation, whether you're a celebrity or not, just about anyone and everyone in this day and age is trolled in some form or manner, sometimes even by those close to you. Our new communication looks to tackle that event in a fun, refreshing and very uniquely Max outlook. Can I have the third video, please? [Presentation]

Over to you, sir.

Thank you. Given the very different and youthful nature of the target audience here, we have significantly amplified our efforts on bringing this message to life through a series of personal experiences digitally. Whether this is Naga Chaitanya in the South or even stalwarts like Bumrah and Ashwin, each one of them, in their own and personal styles, talk about how they deal with the subject of trolling. Once again, a very unique campaign talking and touching upon raw nerves that touch every 1 of us today, but doing it in a very unique and truly Max style. Our next initiative that we spoke to you about in December last year was the untapped opportunity associated with whitening. We spoke to you about our efforts in broadening our presence and driving this segment overall. I'm pleased to say 3, 4 months into that effort, our early results are showing great success with market shares up both in modern trade and in e-comm, which is fundamentally where we were looking to focus and drive this segment. We're seeing that kind of response come in, both from our customer partners as well as more importantly, from our consumers as well. What is particularly pleasing on that is the fact that our consumers are giving us the ratings for our products. With a stellar 4.3 on Amazon, we feel extremely happy with the portfolio that we're currently offering, and you can certainly look forward to us continuing to broaden the opportunity in the time to come. Again, this is a very digitally driven program and initiative simply because that's the audience. And second, it also gives us the opportunity for a category like oral care to truly reinvent itself and be part of multiple regimes, not just oral health, but also part of the entire beauty regimen of our consumers. The next pillar that we focused upon was innovation. We spoke to you about 3 structural pillars where we -- about platforms, making sure that we bring the best technology that we have to life across every single price point and, of course, all the new opportunities where we continue to drive thought leadership in the category itself. Vedshakti, which is our presence in naturals. We've broadened the platform with the launches beyond the toothpaste of most recently, the mouth spray as well as the oil pulling, and we're really happy with the efforts overall. Let's start with toothpaste first. In the most recent brand equity research on top 10 ads of 2020, we're really honored and a genuine thank you and a heartfelt thank you to everyone of our consumers for ranking this ad, which is fondly called the funnel ad internally, as 1 of the top 10 ads in 2020. That's not all, we continue to strengthen that in terms of our market shares with shares up 60 bps versus year ago. And more importantly is the traction we're gaining with the consumer measured as a loyalty index. What's particularly pleasing is we're now very close to the loyalty levels that you've seen for brands that have been in the market for decades. For a variant that's been in the market for barely 3.5 years, this is fantastic news, and we continue to believe in the long-term opportunity this holds for us. We didn't stop there. If you remember, we started creating new categories by broadening the platform with the launch of sprays. We continue to see strong repeats, 30% for a category that did not exist. Think about it this way, for almost 90%, 95% of us, mouth spray would potentially would not even be on your shopping lists. So for a category that doesn't exist, having 30% consumer recall or repeat rates is truly a powerful score that allows us to believe in the potential of what this has to offer us. It's been a very focused and targeted effort. We've been choiceful in terms of where -- what kind of stores that we would be available in simply because we want to make sure that we have that sustained levels of demand before we start scaling it for distribution everywhere. Lastly, but certainly not the least, we're really happy to realize the fact that if you converted the value of this, it would equate itself into almost 1 share of toothpaste. So you can imagine how big the opportunity is already looking for us. Again, a program and an initiative that's been brought to live very differently from perhaps some of the other work you've seen from us. Beyond the standard mass media advertising, we've had a very micro marketing effort, leveraging a broad range of celebrities. And each one of them, in their own unique and inimitable style, talking about how this pocket-friendly mouth protection spray, Colgate Vedshakti, remains an integral part of their lives. No matter who they are, what they are and how, it's all about how it fits into their pockets or purses and how therefore, they carry that protection with them everywhere they go. The next game-changing innovation we spoke to you about was Colgate diabetes. If you remember, I had announced it even before we had just about started shipping it in our last call in December as part of our extended efforts to reshape and redefine oral health in our country. As you well know, today, anybody suffering from diabetes is 3x more susceptible to gum problems. It is unique opportunities like these that allow us to define incrementality at scale. This has been also a very differently targeted and marketed effort. It's still very focused in terms of where it is available, whether these are strategic partnerships with our customers, fundamentally, the pharmacy channel, whether online with partners such as 1MG or offline with partners such as Apollo. We've been very careful in particular about where we've chosen to place the product and how we've gone about creating demand. Fundamentally, in this case, a key driver of demand has been through the partnership with varying kinds of health professionals, from dentists to even tie-ups with the Indian Diabetes Association and Endocrinologists, all looking to drive that recommendation that would build lifelong loyalty for those suffering from diabetes so they, too, can have a healthy and optimistic life. Barely 2, 2.5 months into the market, we're already seeing good traction for this. We're #1 SKU on e-pharma with, again, a strong consumer response. Repeat rates of 20%, which are, honestly speaking, really, really strong and powerful given the fact that this is a toothpaste that is not for family use but for an individual to use and therefore, they're going to come back to the market only when the tube is done. Odds are perhaps once every 2 or 3 months. So having a 20% repeat rate even on that is a strong number. And like I mentioned to you, we've been very choiceful on where we will be available simply because we do not want to compromise the credibility of the offering. And this, our focus, with the health practitioners, the pharmacies, whether online or offline, continues to be the priority of the same. We haven't stopped there. We bought across a completely new portfolio called the Gentle line of toothbrushes with offerings from all the way from INR 30, all the way up to INR 120. I'm picking the two -- top end of the brushes -- or the top end of the portfolio here. I'm really pleased to see close to 100 bps of share on both SKUs within the first 3 months of their launch. And particularly pleasing is the fact that they've become bestsellers in their own right on e-comm platforms as well. While doing this, I'm also pleased to announce our latest offerings. This will be available quite literally as we speak. It's off on an e-comm first basis, and then we'll move into brick-and-mortar platforms over the next few weeks. Continuing to extend the idea of intelligent and intuitive ingredients across key parts of our portfolio. In this case, the Slim Soft line with the Himalayan salt version as well as the turmeric version. On an e-comm platform very soon next to you and then across into brick-and-mortar platforms as well. One of my personal favorites, Colgate Magik. You know, every one of you who have kids know the chore of getting them to brush, right? While, yes, they will do it mechanically because more often than not they're forced into it. This solution is a brilliant combination of bringing augmented reality to life, through integration of online and offline worlds and makes that simple task of what used to be a pain point for most parents to a fun, enjoyable and engaging session. It's literally the gamification of the toothbrush world. The third key pillar, while we're making sure that we win with our brands, driving innovation, it's about execution. We believe that it is that brilliant yin yang partnership of the 2 that allows us to deliver the kind of results we keep doing year in, year out, quarter in, quarter out, right? From a go-to-market point of view, we spoke to you about the fact that about 14 or 15 months ago, we put an exclusive e-comm team into place. More importantly, once the team was in place, we started defining the right frameworks of success. The right partner, the right portfolio, making sure we have the right partnerships with every one of our e-com customers, building the right model so that we understand the consumer journeys across their platforms and are able to participate intelligently and intervene at the right touch points with the right sort of messages and the right solutions we are bringing. We're also focused on building traffic because we know how the e-com funnel works. The more traffic you're able to build in, it translates itself into purchase and ultimately repeat, which is all about loyalty. And that, we've translated it as what we call our ACTL framework. And again, it's all about understanding this journey and making sure that the brand and the solutions we offer are relevant for every single touch point across those elements of the journey. What's particularly pleasing is the growth phenomenon we are seeing, not just -- it is no longer a small part of our business, but a reasonably decent size now of our business and continuing to grow at strong growth levels. Additionally, we are also gaining significant amount of market shares on e-com platforms and we over-index quite dramatically in terms of our market shares there versus our brick-and-mortar performance. That doesn't mean we've given up on brick-and-mortar. In fact, exactly the opposite. We do believe life is an omnichannel world today, and we continue to make sure we invest in every single retail environment we look to participate in. In this event, it's modern trade, again, rechristening, reimagining the category itself. So we look to simplify and bring brand experiences to life at store. Again, playing itself out with a healthy market share increase on what we're seeing with all our key modern trade players as well. Lastly, but certainly not the least, is our rural presence and the backbone of our entire go-to-market is the kirana store and the general state store. As you already have heard from me in previous conference calls is we're seeing a resurgence of the general store and the kirana store, particularly in rural areas. Our strong network of wholesale partners has allowed us to continue to make sure that our distribution and availability has never been compromised, irrespective of the external conditions around us. We had introduced a program called Muskaan, which was a tie-up with the small and the medium wholesale stores to make sure that we get that throughput, to make sure that we get that reach of distribution to the smallest of stores in the most remotest of villages across our country. That initiative continues to gain tremendous traction. More importantly, we are seeing growth levels at a significantly higher rate as compared to the rest of the business when we -- on those specific initiatives. While we continue to do everything we can from a consumer and a customer point of view, we're also extremely conscious of what we need to do as an organization for our planet and the broader communities we participate in. To us, it's all about reimagining a healthier future, not just from our consumers, but the community as well as the planet and more importantly, in our case, the country we live in. I'm pleased to announce our efforts here, again, structured in the context of a smile, where it's all about driving social impact, helping millions of homes and making sure that we preserve our environment. All our initiatives are structured and thought through against every 1 of these 3 pillars, and we continue to make significant strides across every one of them. I'd like to just showcase 3 of them to you today. Obviously, we've got a long range of them that we've been under -- we've been going through over the years, and we will continue to invest in as we head down in the future. I'd like to talk to you about 3 specific initiatives. The first one, I guess, is the obvious one, given the context of what's going on around us. While we've had significant amount of participation in every way that we can to help the people in our country, help our countrymen and women to go through what they're all going through, whether it's been participation through meals, health and hygiene packs, sanitizers. And most recently, we're now partnering with the government authorities on providing medical infrastructure on a national basis. Again, these are challenging times for every one of us, and we believe it is our duty to participate and make sure we make meaningful contributions and more importantly, impact to help people across the country. The second is another first of its kind. I'm truly pleased to announce this one. You perhaps have heard a little bit about this already from some of our global calls, where we've been the first to launch the world's first recyclable tube. We, at Colgate India, are truly pleased to announce India's first toothpaste oral care recyclable tube. We will be rolling this out on our Colgate Salt bundle in the next few weeks and surely -- slowly, but surely, we'll be rolling it out across the rest of our portfolio. We truly look forward to this becoming an industry standard because that's when it will truly make an unbelievable impact on the community and the planet. Last, but certainly not the least, again, something quite close to our hearts was the challenge of every cup counting, right? This was interestingly enough, the full story on this is our management training or the business leadership program that we go through with leading business schools that we recruit from. It is this batch of 2020 that actually came up with this idea on triggering social awareness to 100% digital program by making sure people can participate in a simple yet meaningful and effective manner. And the simple and effective manner was your pledge, my pledge, to make sure that I commit or every one of us commits to brushing every time just one cup of water. Just that simple metric alone, just that simple pledge alone of every cup counting has already paid rich dividends. In 1 year itself, we've had more than 64,000 pledges that translates itself into 320 million liters of water saved. Our goals are far greater than that, and we're looking for the 2 billion-liter mark. I look to your support to make sure this happens. Pass on this message. It's a simple act that every one of us can participate in. And frankly, it doesn't take much of an effort. It just takes one cup of water. With that, I'll hand over to Jacob, who will talk us through a little bit more on the financials.

Thank you, Ram and good evening, everybody. Our financial strategy remains unchanged, driving top line up, driving margins up, driving overheads down, advertising up, and operating profit up and all the exciting plans that Ram talked about are designed to deliver against each of these objectives. So you had a glimpse of the Q4 results in the afternoon. So our top line was up 20% to INR 1,275 crores. Very good performance on gross margin, up 310 bps to 67.5%. Advertising remains a healthy 12%, similar in absolute level to last year. Ram mentioned the brand metrics continues to be very healthy top of mind, attitudinal equity, et cetera. And these are stuff we continue to monitor very closely. And we continue to look to extract the maximum ROI from our advertising dollars. EBITDA, healthy 33.1%, which is again up 850 -- 840 bps and after-tax profit up 54% to about INR 315 crores. On a full year basis, if you look at it, our net sales up INR 4,811 crores, which is up 7.2%, gross margin at 67.8%, again, a very healthy 280 bps up. Advertising, a healthy 13%, flat in absolutes to the prior year. EBITDA up 460 bps to 31.4%. And PAT at INR 1,035 crores. So we are pleased with the way we've delivered against each of the financial strategies we showed you earlier. Sales trend continues to be healthy. 2019, '20, no doubt was impacted by the pandemic, and we have now back to good growth levels. Gross margins up to 67.8%, and you can see the progress we have made over the last few years. Our strategy has been driving margins up so that we have the advertising dollars to continue to invest and build our brands. EBITDA, up to about INR 1,510 crores. Next one. Our earnings per share, in line with the profitability increase, up to INR 38.1 per share versus the INR 30 last year. And our stated policy has been to return money back to shareholders if we don't have much better use of that than you probably have. And so, we've declared dividends of about INR 38 per share. Significantly higher than the INR 28 last year. And last, but not the least, cash gen continues to be healthy. So we ensure that all our hygiene is in place, while we maneuver through this difficult period. So if you've seen our balance sheets to -- our receivables continue to be very healthy and all the working capital KPIs in the right direction. So '20-'21, our cash generated, INR 1,333 crores versus INR 890 crores. This excludes the dividend that was declared in March but paid later on. So excluding that, you can see it's been a very healthy trend on cash gen. That's all I have and back to Ram.

Thanks, Jacob, Again -- once again, I'd like to just give a shout out to every one of our stakeholders for their continued belief in us. I would also like to take the opportunity to thank every one of the Colgate people across the length and breadth of our country whose constant hard work, dedication, resilience and more importantly, unbelievable passion continues to bring smiles across billions of people in our country. So with that, I'll open the floor for Q&A.

[Operator Instructions] The first question is from the line of Latika Chopra from JPMorgan.

I have 2 questions. The first one was on the top line growth. If you could split out, for quarter 4 and for the full year, between the volume growth for domestic toothpaste, the pricing growth and the mix growth? And also, how the total toothpaste category is shaping in terms of the key cohorts of family, economies, fresh, naturals and premium for you now? Basically, how is the share of these key subsegments trending like? And how should one think about potential volume and price/mix growth for this category going forward? And the second question was on gross margins, a massive improvement this fiscal year. How much of the benefit is on account of export share being lower? And what are the key drivers here? And does this look sustainable going forward? That's all.

Thanks, Latika. Let me start with perhaps the first one, and I'll let Jacob get going with the next and then we can both tag team and add more if we feel that we're missing something. In terms of top line, I think very, very simply put, we're very pleased with the volume pricing mix. Obviously, it is largely in favor of -- it is in favor of volume exceeding pricing. But as you well know, we consciously look to make sure that we have a balanced approach to growth. And both -- we're firing all cylinders on volume and on pricing. So I think we really like -- well and truly like the quality of our growth coming through quarter-on-quarter. In terms of segments, you're seeing some basic settling in of segment, so to speak. Naturals, if I look at naturals more broadly, including not just Ayurvedic, but even if I start including things like salt and ingredient lines as part of the naturals story, that now accounts for about 38%, 39% of the category. But it's been holding at that 38%, 39% for the last few quarters actually. Similarly, family is also holding at about 30%, 33%, give or take, in that mark. What we're seeing some growth on obviously, is interestingly enough, freshness. Freshness is seeing some interesting pickups, which is not surprising. We are a youthful country from a perspective of age bands and it's not -- and given the food profiles, in most parts of our country, it's not surprising to see freshness gain traction. Now again, in metro, if I look at metro, if I look at modern trade, if I look at e-com, in those platforms, you're starting to see significant shifts towards premium. Even in our own portfolio, the premium portfolio is close to touching almost 1/3 of our business on certain platforms, which means -- which bodes really, really well for us from a growth of whitening and premium ingredients like charcoal, et cetera, also continuing to gain tractions. From a gross margin point of view -- sorry, to answer your question on seeing the sustained trend going forward, very difficult to predict that one, Latika. I think our outlook to oral health is how do we go about shaping the future. We believe, as category leaders, it is our responsibility to be driving that. So when you break down the market into consumer segments, retail environments and almost do a cross metrics between the 2, we look at each cohort and look to see what would be the right segment or need -- consumer need or benefit that we would look to fulfill. So at a rural level, it is still going to largely be about driving the family segment simply because the priority will be there to really get the frequency of brushing going more often. If I talk about metro, youth and consumers who see themselves as aspirers or beauty mavericks, then it's going to be largely about increasing the size of the whitening segment. Similarly, when you look at segments like premium therapeutics, these are relatively small segments when you look at it on a naturals basis -- on a national basis. But when you look at that from a specific retail environment or a specific geography point of view, these can be substantially large as well and phenomenally incremental to the portfolio. Large -- I mean, rarely -- very, very rarely would you find someone who buys a toothpaste for diabetes using it for the entire family or someone who buys a whitening toothpaste also uses a regular family toothpaste or a naturals product. So you end up getting an incremental tube in a lot of homes, which translates itself both in terms of growth, obviously as well as in terms of where the margin play also. Jacob, your thoughts on the gross margins? You're on mute, Jacob. Can't hear you.

Primary driver for gross margin is really the pricing. We've been putting incremental pricing through last year. And even in quarter 4 of this year, we put more pricing as we've seen cost increases. So that essentially is a key driver. Exports, no doubt, is helping but we are at the same level in the last 2 to 3 quarters. So on a full year basis, yes, it's a driver, but not really the key one. Other key drivers are the category mix. Toothpaste is obviously growing much faster than toothbrush, which took a big hit during the 3 quarters starting from the first quarter last year, given the category was impacted. But also the SKU mix. Through this year, we have seen the mix moving from the 10 and 20 to bigger sizes, 100, 200 and above. So that is margin accretive. And what Ram mentioned also the mix towards more premium plays like charcoal, visible white, et cetera, that's another factor. So all those different types of mixes are helping drive that margin up.

Latika, if I just build off Jacob's comment, I think we've had a very disciplined approach to proactively managing cost headwinds. I think we started seeing murmurs and sounds about cost headwinds coming -- while we exited the last quarter and early into the start of this calendar year. So we were able to proactively make choices on the pricing line mix and therefore, investment models that went with it from a consumer lens point of view. Additionally, we've got a very strong discipline of funding the growth or what we call the efficiency drivers of our business. This is a -- you could almost say it's a very structured framework cross-functionally driven. So we're not only looking at the pricing line, but we're also looking at every aspect of the cost line to see how we could mitigate potential cost headwinds along the way. So it's almost a rigorous process that is followed quarter in, quarter out within the organization.

Just one clarification. Ram, you mentioned the natural Ayurvedic and ingredient based pay share is about 38%, 39% currently.

Segment. Segment. Segment share.

Segment share. You're talking about the industry, right, not for yourself?

Correct. Yes, not ourselves. We've been gaining in that segment, but I'm talking about the overall broader category segments.

Sure.

The next question is from the line of Manoj Menon from ICICI Securities.

Thanks for the brilliant presentation, quite insightful. I just had only 2 reasonably long-term stuff just from a -- more from a clarificatory point of view. One, on the twice brushing, is it still relevant? The reason I'm asking because for a minute I removed my analyst hat and just as a consumer, I'm not sure that I really missed many ads or any communication addressed at me as a consumer about twice brushing. So I just -- I would love to stand corrected, but just your thoughts on driving that vector which probably was quite relevant a few years back. So that's question number one. And where are we on it? And what's your take on it in the medium-term objective? Because I know that it probably needs a generational shift as well. So that's one. The second aspect is on the pricing. So some of the things which you addressed beautifully to, Latika's question earlier was on the multiple segments and where it's all settled and what's your view is there. But one thing which I was -- I had a question impact was actually on this Ayurvedic versus white segment. Now after listening to your responses, just only one follow-up on this, is there may be a significant opportunity for you to gain consumers from the perceived benefits of Ayurveda to more, let's say, scientific products which you have? Just some thoughts on that as well? And if time permits, the third one, CNBC report is kind of -- I just saw some Twitter flashes from CNBC about market share improvement from somewhere in the 40s to a higher number. But the last available number, at least for analysts like us was, it was in the 50s. So honestly, I was not aware that it has actually fallen to 40s when it is improved. So just some comments on the market share if time permits.

Let me start with the first question on brushing twice a day. Listen, we are as passionate as you are on the long-term relevance. More importantly, the opportunity -- the growth opportunity that it offers. You haven't -- you've not missed anything because there's not been much. We did do a little bit of work, but frankly, on account of the pandemic, where fundamentally getting product availability and really a focus on making sure that people had access more than anything else was our priority. So all that we've done is we repurposed or we've phased out the communication focus to be more on fundamental product benefit for the time being as we go through the pandemic. And then, to your point, we will bring back the required set of communication and behavioral changes that go with it, which are a long-term play. So a lot of that stuff, both in terms of above the line as well as ground -- on-the-ground work, all the stuff is ready. We're just waiting for the right moments to trigger some of those initiatives. Second, on the pricing front, couldn't agree with you more. I think, frankly, we don't look at benefits perhaps the way some -- that has been framed -- like I said, our philosophy as a thought leader is start consumer first. So consumers don't say white. Consumers don't say things like that. Consumers look for benefits, right? So they want strong teeth, they want fresh breath, they want whiter teeth, they want no stains. So consumers seek benefits. And to your point, one of the single biggest strengths we've seen, frankly speaking, for the brand come back very, very strongly over the last 3, 4 years has been our oral care expertise. And how we look to solve that consumer problem, both if it's 100% science only or if it's a naturally derived but then science -- using science to amplify or empower the natural derivative even greater, those becomes means to an end. So different people -- it's like the best analogy I could give you, Manoj, would be exercise, right? Someone will tell you that you could be equally healthy with yoga as you could be by going to a gym and working out, right? And even a yoga effort can be amplified through different means. And similarly, an effort in the gym can also be amplified through different solutions. So similarly, when we look at consumer benefits, some of these are the means to the end, more than anything else. And frankly, we're seeing a resurgence of, at least, expertise, an oral care expertise come back to life. And therefore, what's in the product, and how it works, and does it actually deliver what it says it is going to deliver is starting to well and truly matter with every one of our consumers. On the shares, our shares remain robust overall, Manoj. I think, I quoted some numbers today as well in terms of modern trade and e-com. Both are heading -- all our numbers -- the shares in those environments are heading in the right direction. Our overall shares remain robust at the 40 level. We're waiting for the right -- we're making sure that we are getting the right reads on data more than anything else. But where we believe the data, the consistency of the data, specifically if it's scan in modern trade or e-com, we're making sure that we continue to grow on a YTD basis as well as longer term.

Understood. Just one quick follow-up, if I may squeeze in. Just on the Ayurvedic, either the perceived Ayurvedic versus the calcium carbonate white toothpaste. Just one thought process here. Just -- I'm just taking a hypothesis actually. Yes, the 39% may go and stabilize at some number from an Ayurvedic point of view. But is there a bigger opportunity for you to drive the premiumization -- or let me put it this way, so it's like a bucket where it's actually the water is falling, but at the same time, it's a leaky bucket. So 2 questions here. Where do you think the Ayurvedic percentage as a percentage of total will stabilize? And prior to that, is it fair to assume that you'll be able to convert enough whites to premium?

So again, very difficult to predict the future. But what I can tell you is that in every market, we have seen consumer -- segments will always coexist, right? I mean, I bet you if I asked in your own house over the course of 12 months, there would be a mix of toothpaste coming in, and you would be floating across segments. Yes, you will have 1 or 2 segments which would largely look to cover the large part of your share of requirement, but you, too, or your family members would look to move across certain segments. So I think first of all, all consumer segments will coexist. Like I said, typically, certain segments will always stand the test of time simply because they are at the structural grassroot of what really matters to a consumer. So again, strong teeth for us is a classic example of that. And by amplifying the oral health, overall health connection, if you think about it, that further reinforces why and how critical it is to continue to participate, one. Second, I always tell people that don't underestimate the impact of flavor. At the end of the day, almost 95% of us wake up and the first thing you, more often than not, put in your mouth is toothpaste and hopefully, a Colgate tube of toothpaste. That flavor is the first thing that is embedded in your memory for years -- for year in and year out. So making sure that the -- it's not -- it's the benefit profile and a flavor profile that consumers love and can connect back to that benefit also makes a huge difference. So I think when we look at propositions, we make sure that those combinations stay true. The third one on premiumization. I think premiumization is only going to go one way, which is going to be up. Now the pace and speed of that will vary very dramatically because it'll come down to a function of the retail environment growth, right? So today, modern trade and e-com allow for phenomenally broader portfolios to exist, right? There's physically more space, and hence, consumer choice goes up tremendously. Based on that, folks like us are able to offer us phenomenally larger and wider range of solutions and therefore, consumer choice plays itself out. And typically, you end up seeing premiumization accelerate when choice opportunities go up. Similarly, as you see the proliferation of modern trade, whether it's direct modern trade or indirect modern trade and of e-com, one can only expect that to take off. I mean, we're seeing this across emerging market after emerging market. The more retail environment landscapes change, you will see a consumer play out to a similar effect eventually.

The next question is from the line of Abneesh Roy from Edelweiss.

Yes. My question is on the margin profile. So is Colgate getting a bit more hungry for margin expansion rather than the volume growth? Could it become dangerous? I'm asking more when you compare with the peer set. You must be having a lot of data -- anecdotal data, et cetera. This kind of margin improvement, we have not seen this year for many of the other categories for many of the other companies. So could you answer this aspect?

Sure. Let me take it on Jacob and jump in, Jacob, if I miss something. So let me start, first and foremost, I think we are pleased with the margin profile simply because it gives us tremendous flexibility on the P&L to calibrate investment choices, both in terms of levels as well as in terms of the range of initiatives that we can bring in. That single-handedly amplifies the ammunition power that we hold and can, therefore, look to invest substantially across every one of the choices that we want to make, number one. Second, Abneesh, I want to make it clear that we have not compromised volume at all. In fact, volume sales, even in the most recent quarter, significantly outpaced value. So I just want to make sure that I do call that out, but we remain extremely competitive when it comes to pricing. As you can well imagine, in certain segments of the market, specifically INR 10 and INR 20, our hands are tied in terms of the price point. I mean I can't change INR 10 to INR 11 unless the entire market looks to move there. Those will be harder shifts. So we remain phenomenally competitive at price points. Like I said, what we look to do is a few critical things. Number one, we look at the range of our portfolio and how can we participate with price points across every single price point and pack combination that exists, right? This is done through a very detailed analytical effort, what we internally call revenue growth management. So there is a lot of science and analytics that goes in behind this. So making sure that we have a breadth of portfolio at an SKU level by retail environment, also defining not just its MRP, but also the calibration of the kind of promotional levels and the type of promotions we have to do, wherein the value volume combination is maximized, right? And the third piece that I'm sure Jacob can highlight even more is what I called upon, which is the efficiency drivers or our funding the growth initiatives. We've got a very, very thorough process that we've put in place that make sure that we are constantly looking at every aspect of the cost line and where we can intelligently do things, we will. I mean, to give you an example, we've invested in recyclable tubes that I just highlighted. That's a cost increase for us, but we believe it's the right thing to be done. And the way we look at it is we know that, listen, if we go in today, started one variant over time, take it across the entire portfolio, we know the volumes we have can look at reshaping cost structures in the future. So any other -- that's the way we see it. Jacob, anything I missed?

Yes. So we -- I mean, Ram mentioned pricing continues to be competitive, and we continue to look at pulling costs out in a good way. So one thing to emphasize is the quality of our products remain top notch. So Ram mentioned flavor, formulation, those things, we won't tamper with. So the other piece like getting a new sourcing country or a new supplier, those are the focus of pulling costs out of the system.

Sure. A related question is you used to do a lot of events activation, you used to go to school to tap the youth, et cetera. So now in a pandemic year, obviously, that's very difficult. So 2 questions here. One, how did you reach out to those consumers? In the pandemic, it was not possible. And could this become the new normal that you don't really need to do so much of expensive activations and you could do something else to reach out to the same consumer?

So -- a great question, actually, Abneesh. So our Bright Smiles, Bright Future is what we did over the last, let's say, 9 months. Obviously, given that schools were shut, like education in itself, we've taken it in digital. What's been the single biggest learning we've had interestingly enough when we've taken it digital is the fact that the parents themselves have decided to join the children. So in a strange way, the same initiative that only touched a child now actually talks to the family unit as a whole. So we actually saw this as an upside on 2 fronts, right? Front number one is obviously with digital solutions, the kind of scale you get for the same dollar invested is significantly greater. And second is, while in the process of engaging the child, if the parent is also participating, nothing like it because that's one more behavioral change then that gets reinforced for us more than anything else. So I think as we look into the future, we do believe it will be a combination of -- like you rightly said, a hybrid version. There are still significantly good merits in the physical activity as well because it's not just about teaching and showing people how to brush, but there's also an interactivity piece, there's also a learning experience, there's also an engaging aspect of it. There's obviously the whole aspect of free product being distributed. So the trial opportunity that goes with it is long term and truly tremendous. But I think the digital world and the fact that education itself has gone digital. We look at it as it's a unique opportunity to first scale for customization and for becoming quite literally by appointment, right? If you think about it, I could start talking to you about consumption building or brushing the right way of brushing or brushing twice a day as and when you were available to have that conversation with me. So I'm very much with you on the same.

And my last question...

Abneesh, whether you're also talking about the oral month where we do dental activations. Those, we will continue. We, as a leader in salt owners on us to ensure the improvement in dental hygiene, those preventive checkups, those things. So those things will continue as we get back to normal levels.

Sure. My last question is on distributions of kirana shop. There is much higher competition for the same shelf space. Every company has come out with a huge number of new innovation SKUs. You have also come out. So have you also rationalized the number of SKUs versus pre-pandemic? And in the chemist channel, could you share some insights -- you have shared impacts on market share gains in modern trade and e-commerce. In chemist channels, how are you placed? And is it very important in your products?

So let me -- 2 questions there. The first one, proliferation of SKU. I think one of the -- let me start the other way around. We're constantly looking at our portfolio, Abneesh. It's almost habitual for us. The last thing we want is to have [indiscernible] SKUs lying in the trade because that fundamentally is cash flow that's just stuck, not only for the customer but for us also, frankly, because we're holding the full pipeline. So if we see SKUs not meeting what we call internal hurdle rates, we, ourselves, would go both internally and with our customers and have a proactive dialogue to tell them, look, this SKU, we thought it was doing well, but it's not working. Frankly, let's take it out and give you something else that's got the throughput. So I think first of all, our principal starts with that. Second, our philosophy is about horses for courses. So we look at every retail environment, understand the shopping behavior, who shops? For whom do you shop? How often do you shop? What kind of price outlays do you have every time you show up? How many baskets do you exist in even in a kirana and a general trade store level? So based on that, every kirana and general store for us is categorized. We -- similarly, like we do consumer segmentation, we do outlet segmentation exactly the same way. So we take the same science of consumer outlook into the world of retail environments. And based on outlet segmentation, we map out what should be the SKUs available there. And again, this is a combination of internal data and external facts, right? I mean, you could be living in [indiscernible] in Mumbai, and you could be a kirana store there, right? But by definition, because it's [indiscernible], I have to make sure Colgate Total is available. Now you could be in a kirana store in Bahraich in UP, where it's all about the Cibaca, CDC and MaxFresh. Same kirana store, but very different outlook in terms of portfolio availability. So I think, like I said, we take the exercise of outlet segmentation down to a science, not just at a broad kirana store, general trade level, but also by geography, by ZIP code and by mohalla quite literally. So I think that allows us to make sure that. The third thing is given the strength of our -- of demand, typically, what we've seen happen specifically in times of -- like the pandemic, the smaller the store, the higher the likelihood that they will hold on to SKUs with extremely high velocity because it equals cash. The last thing that they want is to be sitting on an SKU that doesn't have churn as an it's an SKU sitting on the shelf. So that's when the strength of our brand kicks in and they almost keep Colgate because it's fluid cash. It moves the system fast enough and it isn't holding out their cash flow or affecting their working capital at all. So hopefully, I answered.

And on the chemist?

Sorry, the chemist point. Chemists, frankly, we remain under-indexed. Having said that, we've started to make good inroads. You saw our efforts with strategic partners, whether it's 1MG, PharmEasy or even with Apollo, we've started making good inroads there. The biggest challenge we had was really twofold. One which you can't solve, we're not a pharma company and hence, the -- our outlook and approach and reach was always less competitive versus certain other competitors of ours. So that was always a structural issue. But the flip was we also struggled with the portfolio. So we've solved the second problem, which is the portfolio. So now we've got specific bundles geared and targeted towards the chemist or the pharmacy channel, both offline and online. The third variable, which has been a strength of ours, has been the professional recommendation. So I saw we are the most recommended brand by the profession. So now, merging these 2, which is getting that professional recommendation and translating it with the wins that we're -- or early wins that we're seeing in the more structured pharmacy online and offline, it continues to remain a good opportunity for us. But so -- great opportunity still under-indexed, but greenshoots heading in the right direction.

The next question is from the line of Arnab Mitra from Credit Suisse.

My first question is also on premiumization. So If you could share some data with us in terms of whatever way you look at it in terms of value-added or whatever you consider as premium. Has the share actually your -- within your portfolio gone up with a lot of initiatives that you've taken around charcoal diabetics? And if you could just give us a broad sense of how much of your turnover is there? And a related question to that is toothpaste is a highly penetrated categories like detergent or soap or shampoo. But in those categories, we are seeing the premium brands become very large. So for example, Dove is now the largest shampoo brand or Surf Excel is probably the biggest detergent brand. We don't see that in oral. It's still a very slow burn of premiumization. So is it kind of inherent to the category that the premiumization happens slowly here? Or is it something which can unlock faster if the right kind of efforts are put in which -- some of which you have put in this year?

So let me start with the premiumization. Obviously, Manoj (sic) [ Arnab ], I'll give the answers wherein I don't want to let -- give out data that is confidential that potentially gives advantages to our competitors as well. So hopefully, you understand that aspect of it. Let me put it this way, we've seen substantial gains on the premium part of our portfolio, specifically in the platforms that I spoke about, whether it's modern trade, whether it is e-com and not just Tier 1 cities. But even in Tier 2 cities and in some cases, even smaller than that, we are seeing significant traction on some of the new initiatives we've bought in. My simplest ask of your would be jump on to Amazon and take a look at the reviews, the consumers write about charcoal as an example. It's quite amazing to see that. I already highlighted last time around the gap between demand for whitening and having the right portfolio to deliver to that demand is huge. 20% of all online searches are associated with whitening in the category and the segment size is barely at 1%. Now 1% is national. Obviously, on the platforms, this can range from 5% all the way up to even 15%. So I think you can imagine the advantages we have simply because we are creating a lot of these segments. So I think that's the point on premiumization. To your question, compared to soap, I'm going to hazard -- not a guess, but a more logical conclusion on this one, which is in the world of soaps, you don't have a INR 10, INR 20 segments, right? There are singles or multipacks. And then, they vary in price point on absolute. In the world of, let's say, oral care and even detergents, you have the aspect of INR 10 and INR 20. So I think from that point of view, premiumization is still at a more Tier 1, Tier 2 and on -- in certain retail environments. The deeper down you go into the country where the prevalence of INR 10 and INR 20 packs remain sizable, their premiumization still has a phenomenal opportunity. So I think that's one of the reasons my guess, again, as to why you see those variations versus some of the other categories you spoke about. Second, If I look at even per capita consumption, again, so per capital consumption, if I know my data correctly, is still significantly better than toothpaste. So we still have some structural pieces to fundamentally create habit of improving frequency of brushing also at the lower end of the segment or the lower end of the funnel, so to speak. So I think the premiumization story is a mix in the right retail environments and the Tier 1, Tier 2 cities. Obviously, it's growing at a phenomenal pace. I think we believe, at Colgate, that we've got to figure out how to bring in affordability principles such that we can look to even premiumize across multiple city tiers as well as retail environments.

And my second question was on freshness, which you mentioned, as the sub segment has seen a pickup. And we have seen, I think, relatively better numbers from HUL also in this period. So have you been able to hold on to your shares within freshness or increase the shares in any kind of broad sense or directionally, how you -- how MaxFresh has done in that segment would be helpful?

Good question. I can't remember the data off hand. I know our internal numbers are very strong and even our secondary sales that we are seeing are strong and healthy. I'll have to get back to you. I don't remember the segment share movements, frankly.

Ladies and gentlemen, we'll take the last question from the line of Amit Sachdeva from HSBC.

My first question is very quickly on the underlying revenue growth. If I were to look at 2-year CAGR basis because we have varying level of base effects in the year, I would think that revenue growth is about 5.4%, and that is not very different from what has been going on in the last 2, 3 quarters. And even barring Q4 last year, remove the abnormal effect, but that's a kind of rain going on given the premiumization and the pricing is working probably in your favor, which it points you that underlying volume growth actually is very, very weak. And it might be because category is so penetrated, and that's where the margin is only driver left and behavioral changes are very difficult to come by. How do you think about revenue growth -- sustainable revenue growth, barring these base effects are off the road. Do you see double-digit trajectory possible? Or it'd be more like 5%, 6% revenue growth and then margin expansion is thus, we should really hope in the next 2, 3 years? How do you think about that overall construct of this underlying volume growth? I would agree that premiumization would continue.

So let me just give you one little clue, but I won't -- I'll just drop the clue out there, Amit, which is, remember, you also have the effect of toothbrushes. So in our world, in a strange way, toothbrushes ends up being a little more discretionary or delayable, as we put it, in our lives there. I mean it doesn't get over frankly, and if it's a Colgate brush, it probably lasts forever. So you can imagine part of that CAGR that you're seeing is on account of a category mix that people often don't realize, right? So specifically during the pandemic, the toothbrush business was the one that took a big delta because, frankly, we didn't head out. You just delayed that purchase. And then, similar to a hotel room, a delayed purchase means a lost sale, right? So I would just -- I'm sure you can do the math once I've put this point on the table. To your point on -- I don't want to talk about forward expectations. You'll see our results, our strategy as they play themselves out. I think we're with you on the premiumization trend to continue, number one. Second, we've touched upon the fact that as part of our broader strategic growth plans on how we're going to redefine oral health. So in the context of it not being just about toothpaste and manual toothbrushes, hopefully, you'll start seeing a lot more. You've already seen things like sprays, oil pulling and initiatives that are from us. Look forward to more on that front. And then, the last one, we will also figure out how to make sure we build the second leg of the business intelligently, which is the Palmolive portfolio.

Sure. Sure. That's very helpful, Ram. Just if I may squeeze in just a second one, just to get a conceptual clarity on how we are thinking about this is that I see there's an excellent cost management or other expenses being flat for last 2 years. So that's very good. And I hope that discipline continues as a part of the strategy as well. But A&P has been quite elevated level, if I may say, in the last 2, 3 years, and it has still elevated despite whatever ups and downs you may have sort of come across. But A&P spend had been elevated. And now we are seeing A&P flat Y-o-Y, roughly, for example. Now going into -- as we're thinking about this, since the A&P spend is so elevated, are we looking at that A&P spend will remain elevated, but given that it is already high, the growth will not be there and it would be probably flat Y-o-Y? Is that we should think about this? Or it would actually rise as a percentage of sales, the way it is. From my side it's already at quite elevated level? And how should we model this as we -- as part of your strategy as we go into the next year?

So I think, like I said, our fundamental pillars, we believe that ultimately, long-term, our brands win. As you can imagine, as a leader, when any competitor comes at us, we're the first people to get affected, right? And that's true of any category leader, right? So we always believe in investing to grow our brands. What we keep monitoring constantly is the calibration required to make sure that we are funding those initiatives correctly. And now there are 2 aspects to funding, right? One is how do you build brand strength, whether it's a top-of-mind recall, whether it's attitudinal equity. So fundamentally, I want to have mental availability. So when you think oral care, you think Colgate and nothing else. Plain and simple, right? That's one part of the equation. The second part of the equation is also investments that translate themselves into -- directly into sales. And specifically, when you look at platforms like -- emerging platforms like e-com, whether you search and therefore, I make sure that I am relevant when you're searching for something and I can convert you, the investment strategy varies dramatically based on what part of the shopper or consumer journey you're on. So I think for us, when we look at investment levels, we calibrate based on that. What does it take to make sure that the brand health remains healthy and robust. What does it take to make sure that the investment model drives conversion, which is fundamentally takes awareness into purchase and ultimately into loyalty. And this calibration is -- I mean, the marketing team -- it's a phenomenal science and the marketing team is looking at this day in, day out because as opportunities to invest your dollars, just proliferate, the ROIs, the paybacks also vary quite dramatically, right? So they're constantly calibrating different vehicles to make sure that we are -- the mix is the best to give us the required return. The last variable is on new initiatives and things like -- I'll take the example of mouth spray. Now when you're creating segments and categories, you have to invest ahead of the curve, right, because we are setting up behavior. We're doing things that didn't exist and therefore, I have to get it on to your shopping list. In order to get it on to your shopping list, the modeling that you would do in terms of investment vary differently compared to a toothpaste, which is already in your shopping list. All I want you to do is buy a Colgate versus anything else.

Sure. No, I think that's very, very helpful, Ram. And lastly, if I may just ask you just 1 small question, whether -- because post COVID as you say, availability and product shelf availability was a main ask and that's what mattered during the crisis. I mean, in that sense, should I sort of take it also as a sign that pricing power may have really come back to the category? Because oral care, in my view, the category with a natural pricing power once the consumer is set, it gives you some more pricing power than an average category. And -- but has COVID gained that to your favor more? Or How should we see -- like in terms of promotional line, which gets embedded in the revenue? Or -- so that's the reason margins also are very easy to come by. How should we think about that aspect of the category now?

I'll stay humble on this one. We are -- ultimately, we will do what the consumer wants. Our unwavering focus is always and has been there. We -- competitors will come and go, they'll say different things, they'll do different things. We believe that the long-term win lies in having that unbelievably unwavering focus on the consumer. So I don't want to -- I don't think it's ever fair to say that a manufacturer will get the power. Frankly, I think consumers will always have the power. Right now, given what we are going through as a nation, very difficult to predict the next 3 to 6 months. I think once live settles down to whatever normal is going to be, I think then you'll start seeing some changes in terms of lifestyles. Some of the habits that people have picked up during lockdowns or during the past 12 to 14 months, some of it will stay, some new habits will kick in, and some past old habits could also resurface. So I think for us, we remain fixated with that. And frankly, we just want to be one step ahead. That's all.

Ladies and gentlemen, that would be the last question for today. I now hand the conference over to Mr. Ram Raghavan for closing comments. Thank you, and over to you, sir.

Thank you, Aman. And listen, once again, a heartfelt thank you to every one of you. We truly hope you, your loved ones and near and dear ones are all safe and healthy. Keep smiling, keep that optimistic smile. It certainly helps us as an organization, a group of people go through this with all the courage and optimism that we can. So thank you once again. Look forward to seeing you soon. Thank you.

Thank you, sir. Ladies and gentlemen, on behalf of Colgate-Palmolive (India) Limited, that concludes today's session. Thank you for your participation. You may click on the exit meeting to disconnect. Thank you very much.