Dabur India Limited (DABUR) Earnings Call Transcript & Summary

Good morning, everyone. Dear friends from investor community, ladies and gentlemen, a very warm welcome to this Capital Day event hosted by Dabur India Limited. For those who have come all the way, we thank you for joining us in person and those who have not been able to join us and are joining online, a very warm welcome to you as well and thank you for taking out the time. Also a warm welcome to our leadership team who is present here and all of you will be able to meet them and interact with them regarding the agenda for the day. We will start with the presentation by our Chief Executive Officer, Mr. Mohit Malhotra. This will be followed by a presentation on healthcare by Mr. Philipe Haydon. We will then have a small capsule on HPC and Foods, HPC by Mr. Abhishek Jugran and on Foods by Mayank Kumar. Last but not the least, we will have a presentation by Mr. Agrawal, CEO, International Business, who is also here present in person. We will then have a Q&A session after all the presentations. [Operator Instructions] So we'll start the day. We have a long day, please feel free to have some tea and coffee as and when required. We'll try and take a break in between for 10 minutes or so. But we look forward to interacting with all of you and once again, a very warm welcome. I now request Mr. Malhotra to come on stage for the presentation.

So great, we guys are meeting after almost 4 years now. So I think a lot of recap that perhaps needed while I keep interacting with you people off and on. But I think before I go on with the presentation and I want to introduce my team to you. So I would request my key team members to be there. First of all, Mr. Philipe Haydon, who has joined us so we have privilege of Mr. Philipe Haydon in joining us. So he is heading our Healthcare vertical, which is the core of Dabur's business. Then Mr. Abhishek Jugran. Mr. Abhishek heads HPC and the SAARC and also Foods. Mr. Mayank Kumar heads our Food and Beverage vertical. Mr. Biplab Baksi is Executive Director, HR, and joined us from Nestle. Raghav heads our International Business division, based out of Dubai, and joined us from Unilever. Mr. Ankush Jain is our CFO. I think Ankush does not required introduction. He has been with me addressing a lot of gatherings along with me. So Mr. Rahul Awasthi, he is our Head of Operations, joined us again from Unilever around a year back. [indiscernible] joined us from Mondelez, heads of the IT, Chief Information Technology Officer and also Doubling Hat of CDO for the company. Mr. Rajeev Chauhan heads our Healthcare. Rajeev has been with the company for almost like, as long as, perhaps have been down 20 years, I think? 20, 25 years, yes. Mr. Smerth Khanna heads our e-commerce and the last but not least, he's the best, last and the best introduction is Mr. Anshul. Anshul is the Sales Head and he is the one who drives our business and all the questions were actively projected. So I'm kind of shielding him from the firepower of the investors. So that's -- so he's just taken on the hot seat and it's really a hot seat. He's taken over from Adarsh Sharma, who superannuated last year for us, a couple of quarters back. So without much ado, I think I'll start off with my presentation to you all. I think a little refresher, which you all know. It's a little recap for the people who are new on the Zoom call and for people who are new to join in here, what Dabur is, you all know about it, but I'll still refresh a bit. So we are established in 1884, one of the largest companies in FMCG in India, 139 years of trust and heritage of the consumer. It is not our existence. I think it's the equity. Equity is far more than what we have actually created because of the good causes that Dabur has always been associated with whether it was COVID or new pandemic, like Malaria, et cetera. That's the genesis of this organization. And any organization which is purposeful, which is trustworthy, which provides quality products and always with the consumers during their tough times is the one that consumers remember, and consumers grant us with that kind of trust and heritage. We are among the top 4 FMCG companies in India. We got 22 world-class manufacturing locations out of which 8 of them are international balance in India, one of the largest distribution networks, second largest distribution networks in the FMCG world in India, reaching out to around 80 lakh outlets all India. Total number of outlets, [indiscernible] crore or more, our 80 lakh outlets is where we are present directly plus indirectly. Overseas presence is 25% contribution of us. It's come down because India business has kind of grown better as compared to overseas and a little headwinds in our overseas business, our market cap around USD 1 trillion, around USD 12 billion. So we have presence in 14 manufacturing locations in India. The way we are doing manufacturing here, now this is also a legacy because most of the manufacturing in India was done based on the fiscal benefit locations in the country. So you see the predominance is there before the GST regime and this is the excise regime, wherever they got a assumption of excise duty, we put up on manufacturing. So we got a around 14 manufacturing locations in India. The newer ones, which I'll call out, odd ones in Indore. Indore is the new facility in Central India, which caters to the north and also caters to the south. So very advantageously located location for us. A lot of business comes from North India, it caters to north. Tezpur also caters to north, the second largest facility that we have now, and also to the south. In Indore, we are manufacturing all the 3 portfolios, be it HPC, healthcare, or our beverage portfolio. The second largest being Tezpur essentially a factory, which makes more HPC portfolio and healthcare portfolio, but not beverage portfolio. Pantnagar is a plant, which is basically a beverage plant for us and so is the case with Newai. Sahibabad is a plant, which makes more healthcare hubs. But again, both FC and HPC. Jammu is more healthcare for us. Silvassa, export plant for us. So we export a lot of goods outside of India. So it's closer to the port and it caters to our export markets. And then Umbergaon facility is Badshah acquired facility that we have, and there are 2 manufacturing locations in Gujarat. So that is where we are. In International Business, we've got 8 manufacturing locations. And all the 8 manufacturing locations have been set up based on FDAs for us. So the largest region for us happens to be UAE. A little bit thunder away from your presentation, Raghav, but excuse me for that. A little bit background that I'll give. After facility, we guys are based out of Ras Al Khaimah. Ras Al Khaimah import and export duty free within the region. So we guys are relatively comparatively more advantaged as compared to what other peers who are exporting from India because we don't have to pay the duties for imports in the regions, which are the consumption markets for us. That's the largest. It utilizes what we call gate GAFTA, its Greater Arab Free Trade Agreement. So whatever we import and export is almost duty free for us like Saudi Arabia. But there is change in regulations and change in regimes, which are actually happening across the world. Saudi Arabia is wanting indigenous manufacturing, indigenous consumption, so whatever experts are happening from UAE to Saudi Arabia, now gradually slowly, they will get non-tariff barriers, which are increasing as we see. And maybe there could be tariff barriers going forward from there also. So then is planning for the future also, there to see if we can actually set up a foothold maybe in Saudi going forward. It's the largest market outside of India. Then we have the second largest factory in International Business in Egypt. Egypt is a very big business for Dabur, all organically created without any acquisition. It utilizes the COMESA benefit. You know the currency depreciations are happening in Egypt, because volatility of currency, currencies depreciated by almost 50% in Egypt, but Egypt is catering to a lot of East African markets. Therefore, the dollar income come from exports and we are able to manage our funds because we import a lot of raw materials also from there. The third larger facility being in Nigeria, which caters to the ECOWAS region, which is a Western African region. Then we have a Turkey facility, which is also exporting to European Union and also to Americas. A third party in America, which utilizes the North American treaty and therefore we export from there. And South Africa, we have got our location wherein we are catering to almost like 20 countries in the South African region. And a factory in Nepal, which caters to India and also to the captive consumption in Nepal and a factory in Bangladesh and a factory in Sri Lanka. So that's a footprint on international business for us. In terms of business structure, we are 75% of our business comes from domestic India and 25% of the business comes from International Business. The 75% of the business is concentrated in 8 of our brands that we have and these are Chyawanprash, Honey, Pudin Hara, Lal Tail, Honitus, Red Paste and Real. We are continuously growing these brands. I'll talk about it later. And 25% of the business happens to come from International Business with Vatika, Amla, as the main brands and acquired brands are ORS and Hobby. And other brands that we are building is Oral Care portfolio and the Skin Care portfolio, under the move. I think, Raghav will talk about details on the International Business. As far as the portfolio is concerned, besides the power brands that I talked about, this is the portfolio. I think this is just not a slide on a portfolio. This is also a slide on a playbook on how Dabur will grow the business going forward in the future. If you look at the bottom most pie, there are 17 brands here. And all these 17 brands are between the range of around INR 100 to INR 500 crores. These are brands for the future that we will scale up. If you look at around 5 years prior or before that, these brands are all sub 100. So sub 100 have become 100 to 500. Now 500 will become 1,000, 1,000 is becoming 1,500, and that's how we'll scale up the business. So we got 3 divisions. One is the Healthcare division, one is the Foods division, one is the Personal Care division. And we will grow the brands, which already have scale and want to take them to every household and reaching as many homes as possible. Hajmola for example, we are trying to push it into a power brand now. So until now, we said that we -- it hasn't reached the scale, so Hajmola is now INR 350 crore to around INR 400 crore brand for us. We are trying to move it to a power brand structure. Odonil also the same, still not calling it a power brand because it is more -- it's not natural, not Dabur score, but it's an acquired business from Balsara, that we are trying to scale up. So all the brands that you see have been in the vicinity of around INR 300 crores to INR 400 crores, and the bottom most line is more than the INR 100 crore kind of range, but for the exception of Badshah, which is INR 250-odd crores. And Hobby and ORS, INR 300 crores, there's Hobby around INR 600 crores, it's our ORS brand. Fem is around INR 100 crores. Odomos around INR 120 crores, then INR 200 crores, then INR 300 crores to INR 500 crores, and then INR 500 crores, INR 1000 crores and INR 1,500 crores. So keep taking the brands as a scale -- as we scale up the turnover of the brands, we will keep moving it into the power brand architecture. Power brand architecture will mean that more manufacturing will be spread out closer to the consumption locations so that will be invested and more resources will be invested on the brand. More brand managers will be working on it and more bandwidth will be deployed on these brands besides the cash deployment in terms of advertising. Now we are market leaders in all the categories that we be present, and we are #2, #3, #1 in most of the categories and we always make an attempt to become #1 in every category that we are present in. Now, even if you look at Oral Care, where we will be seen as #2, but actually we are #1 in the Herbal space in the Oral Care category. So we want to take the #1 position wherever we are. And if we start small because we are trending on a path of extending the addressable market for our brands. So that will take our brand market share down, but the attempt will be to go back to the star in the poll position once again, and that's what we'll be doing. And then, I admit to you around 4 years back, to put out a strategy on how we will steer the organization to the next level of growth and we correlated our metamorphoses. That was the topic. And what has happened for past 4 years, I will just take you through a flash back in the memory lane, past 4 years. What was our strategy 4 years back? What is the game plan that we put out there? And how far and how successful we are in terms of implementing that strategy and what we have achieved out of that strategy. And so I'll talk about it. So that's now into a little bit flashback, and then I'll move into going forward. So this is when I'd actually come back from international business in India from a different lens of International Business. We saw India is not one whole. But there's many, many Indians, and therefore, we embarked upon an architecture or should I say, a framework, called RISE, Regional Insights and Speed and Execution we put in place. We've got 4 RISE in plants, those RISE in plants have got people reporting into them. They are generating insights and therefore, innovation actually has got screwup. One of the pillars that we saw from an international lens. But once -- when looked at the portfolio, we saw 2 distinct parts of the portfolio in Dabur, which are there. Middle part of the portfolio, where we are undisputed market leaders like Chyawanprash, Honey, et cetera. But the healthcare penetration in the country is still sub-10 as compared to adjoining markets, et cetera, where the penetrations are very, very high as compared to 2030. If you actually go to North America, penetrations are in the range of around 60%, 70%. So we are market leaders with the lower penetration categories because we are growing the category as a leader. Obviously, when you grow the category as a leader, the penetration will be small and you're growing the category. The ownership is on us to actually grow the category and take a whole position, which we have taken. And we are consistently gaining share with the local players, the smaller players, be it Honey . And every time we fall on Honey or we have a setback on Honey, as you all have witnessed, we come back and grow stronger. So is the case with Chyawanprash, so is the case with Pudin Hara. So it gives us multiple brands, Real juice, et cetera, et cetera. So one part of the portfolio, low penetration, the task is to increase penetration. The other part of the portfolio is here, also, we started off as a low penetration category creators, whether it was Dabur Red or it was Amla, we started by Amla category. But really, really, what's happened is over a period of time, that small niche, which we created has become a category in itself and we started taking share. So it's moved from this to that. So Dabur Amla has become a big brand, INR 1,000 crores, Red Toothpaste is a big brand. But now we trained -- again, changed the lens with how we are looking at that brand. We are not looking at Red Toothpaste as a penetration enhancer. We are looking at a Red Toothpaste to gain share from the market leader. That's why shifted the box when its present. So therefore, we are around 16%, 17% share, and Amla gained around 16%, 17% share, shampoo around 7% market share. Sani Fresh gained 4%, 5% market share. Glucose around 20%, but a big boy sitting at around 50%. Lal Tail, around 15%, 20% market share. Task is to gain share from the market leader at a fast pace. So that was a task in a set of brands gained share, in a set of brands increased penetration, and steer the category as a leader. And the playbook that we define this, not because we have so many mouths to feed in terms of brands. We will have power brands. We will accelerate innovation that I just talked about. We will do distribution expansion of these power brands. We will get into operational excellence to get money to invest into brands. We will build capabilities to create a future-fit organization, and we will focus on sustainability and ESG. So we have trended on that path and I think very successfully. And what we've got out of it as a result is this. Our penetration in the country for Dabur brands has improved from 69% to 76%. That's a penetration, Kantar data. It is available and very transparent. 69% to 76% increase in penetration. 700 bps increase, which has happened. Across The board, in all 90% of our portfolio, we have gained market share. I don't think there's even a single exception in the portfolio we've lost market share. So I think the company has become extremely aggressive. I talked about the cultural allowances in the company, which has actually enabled all this to happen. In Hair Oil, there is around 160 bps gain, shampoo 207 bps, Toothpaste 137 bps, 350 bps in mosquito repellent, Chyawanprash around 500 bps gain, honey 400 bps, digestives 800 bps, juices and nectars, 400 bps. I think stellar job done by the team. And to put in execution, the template that we had put out there. I think I'm very happy. And while these are market share numbers, and these are means, what this resulted in, in terms of businesses. If I go back previous 4 to 5 years, or even if I go back 8 years, I will find the growth of the company was in the range of around 2.2% CAGR. 2.2% has gone up 4x up to around 8% CAGR in past 4 years, when we presented you then and now. So there's been a steer from INR 8,500 crores to INR 11,530 crores. There is an 8% CAGR of the whole consolidated business of Dabur India that I'm presenting to you. And this is for the consolidated business and is backed by a stellar performance of the India business, which is 3.7% moving up to around 8.5%. ForEx kind of growth is unheard of. I think we faced a lot of geopolitical issues in International Business. If that had not happened, even international would have steered better. But the task going forward will be to even accelerate the momentum of this growth. Can we go from 8.5% to a near double-digit growth or double-digit growth going forward? And what is required for that going forward in the next journey, what I keep calling Dabur 2.0. So I think that is where the steer is. So for us. So now moving forward to forward book. What are the strategic pillars? While we will keep doing what we have been doing in the past? But how we will tweak, how we will change, how we will accelerate on the pedal to just steer forward that growth of around 8.5% to take it beyond that for the next 4 years and 1 year has actually elapsed. So these are the pillars of the vectors of the metamorphoses, which continues in the organization. So the first vector, so I'll talk about 6 pillars of my strategy going forward. And the first one will be winning with the portfolio; a portfolio, which is differentiated; a portfolio, which is responsible; a portfolio, which is trustworthy; a portfolio, which is clean; a portfolio which is resonating with the consumers of today, very, very clearly. We are very clear what portfolio Dabur had, and what portfolio Dabur should have, is going to be very different. It's not that we will steer away from the core. We will keep the core of well-being and health. But the surroundings, the values will get tweaked a little bit. And I will talk about those values as I speak forward and my team members will also talk about it. So creating a winning portfolio. And for creating that portfolio, we'll have to innovate. Innovation pace has gone up in the past 4 years and the going forward 4 years also, it will go up. Then for handling that increased portfolio because TAM will get increased, more SKUs will get added. A lot of you tell me about the complexity that we are adding in the business. How the GTM will be more segmented, how the GTM will be created or customized or handled to manage that kind of complexity is what we'll talk about. So fit for purpose, customized GTM for our portfolio is what I'll talk. Then we'll talk about a very basic thing. To me, it was #1. For Dabur, I put it at #3. I think that's the key for us. Cultural transformation of the company. I think Dabur has moved to a Dabur 2.0. And I'm so glad that I'm surrounded by guys who've got illustrious careers and people who got this tier, who's going the passion, who got the fire in the belly to drive the business, and they are the ones we're driving. I'm just coming here and taking the credit of my team members here and being a spokesperson. But I think, amazing cultural transformation, which has happened and Biplab is -- Biplab, Ankush everybody. They are silent, actually front seat drivers. I'm a driver who's actually the spokesperson here. So they are the ones who are creating that culture of meritocracy, creating the culture of entrepreneurship in the company, a fast decision-making in the organization. And we are trying to build the capabilities for future. Building capabilities for future is very, very key, whether it's digitization, and there are gaps in the capability. But every incumbent management comes with all the capabilities in place, which are relevant for the future. So we are plugging the gaps also like you've seen. Philipe has come in and healthcare capability, which is maybe missing for us in the company. So I think we are plugging those gaps brilliantly. Then to drive our winning brands, we require resources. For resources, there is operational excellence, which is improved productivity, draw out resources, do things in a smart manner with a lesser amount of sources, to draw resources, to invest in brands is what operational excellence will be all about. And then, we'll talk about, again, the future fit organization, future sustainable organization. For us for that ESG, I think I don't have to talk about it. You guys know more about. So environmental social responsibility I think it's extremely important, whether it's for our brands or for the company that we have so both dimensions. So companies, in any case, pursuing corporate social responsibility, Biplab is here with me. But every brand has got the responsibility now to become ESG-focused, every manufacturing location as a responsibility of becoming ESG focused. Every building has a responsibility of ESG focuses. Building, as we speak will be drawing entire energy from solar in next 3 months' time, this building. Likewise, factory after factory, we are trying to take those initiatives. I think we don't talk a lot, but I think the kind of milestones that we are reaching is unbelievable. We are already a plastic waste neutral company not neutrality. We are plastic-based positive, 35,000 metric tonnes of plastic we put out there. We recycle more than what we do. There is an initiative from my office for plastic waste gathering in this building also, which actually happens. So while we add portfolio and we add GTM, how will we run this company going forward as the complexity is growing, both channel complexity and portfolio complexity? We have to digitize the organization going forward so that it is more sustainable and not person dependent, but process dependent. So process enablement through digitization is what I talked about in my fifth vector, which is digitization. And then if we create brands, which are purposeful, which are responsible, which are dedicated to well-being and health of the consumer, which is the vision of the company and distribute to Ghar Ghar Dabur, reach it out in a very productive and a responsible manner, then the consumer will reward us with profitability. And to me, profitability is a byproduct of all the good things that we do and that profit that we get will reinvest back in brands and also give it to our shareholders for a better return of investment. So that is the last focus on profitability. So last 3 vectors on operational excellence on digitization and profitability, I will request my colleagues to actually take because you'll get bored by the time I keep speaking on the first 3 vectors. So I want to break monotony, and also ask Rahul because you want to hear it from the horses mouth, you keep listening from me all time. So Rahul will talk about operational excellence in ESG. [indiscernible] will talk about digitization; and our CFO, Ankush will talk about the profitability enhancement. So first vector. Our vision, you all know, dedicated to health and well being. I don't need to be label on this point. First about the winning portfolio, why a portfolio should change. You will all say that Dabur is very core. And we are all about Ayurveda, Natural, Herbal, or differentiates Dabur. Dabur is differentiated from Unilever, from Proctor & Gamble, from Mondelez. From any company that you talk about with a single string and it's so sharply focused that we are leveraging our so many years of science of Ayurveda. And we're leveraging that science, and that's how we are different. So in a toothpaste wherein we compete with the best of the multinational, we are herbal. In shampoo, we are herbal, we are natural, we are clean, they may not be. They may want to take the dimension but will the consumer grant them with that kind of trust and heritage. Answer is no. And we've seen it time and again, people want to enter Chyawanprash or Honey or other categories of ours, unsuccessfully, so. So the world is changing and it's changing at a fast pace. So we need to tweak while keeping our core intact. So core being natural, herbal, which we are not changing. Dedication to health and well-being is what we are not changing. What we are changing is I'll talk about, and why we are changing its first rationale to that chain. First is India is becoming younger and it is another youngest G20 nations today. Our average is around 28. Gen Z and everybody's been talking about [indiscernible] time. So one of the youngest countries. And where are the youngest countries, what is the implication on us. We are more connected now as youth, we are more tech savvy, we are more social media friendly, we are more demanding. And the youngsters are embracing brands, which are talking about environmental-friendly products, which are products which are friendly to planet, products, which are seeded in their ecosystem of that social media. So that change, we need to bring about. We are doing that change, but I think that has to get accelerated going forward. More online purchases are happening. Trends are getting set on social media today and they are getting replicated from online to offline, and offline and online and all merging. That is a change that's happening because India is becoming younger. And increasing urbanization. Urbanization is to be 17%, then 34%, going forward with 36%. Now rural will become urban, connectivity will become there. Therefore, Ghar Ghar Dabur will become more easier. More rural villages will become accessible and therefore, our distribution will only grow from here as urbanization coming besides evolution of the consumer. I think connectivity is actually going to become better. Our fluence is increasing in the country, where 460 to 2,500 going forward by 2030 expectation is 400 per capita income. Population, if you look at the breakup, I think that's a great lever of population. So high income is 21%, in the range of 21% and upper, middle is around 21%. This is the upper part of this whole bar is actually increasing, is blowing up. What is the implication on the business? More premium products. Consumers will have more per capita income, more disposable income to spend. And therefore, it will only grow going forward by 2030. Now -- so implication is more premium brands should get added in the portfolio. Look at 43 mix coming, our total of -- again, the bottom of the pyramid is also blowing up. So that is also representing that the rural consumer is evolving and more people who were out of the bracket of consumption of 43 people. Now out of that, 34 has become in the consumption bracket. LUPs penetrations will only grow in this country. So therefore, what should Dabur do as an organization understanding from this is, more LUP, more penetration in rural, more premium products to be added in all our power brands going forward. And that is what we have been doing, and that's what we will keep doing. Digital penetration is growing. Again, it's a common fact and everybody knows about it. So around INR 1.3 crore consumers by 2030 will have smartphones and will be completely digitally connected with the whole world and which is changing. And that is leading to, again, more transparency, more emulation of habits coming from the best. And one last lever on this is that preference for natural is changing. Its preference on natural is increasing, from 47% to 70% of the consumers are wanting natural products or using natural products. I think my colleagues in HPC and FC will talk about how the preference for natural, herbal, ayurvedic products is increasing. While what you see from the market's peak is the Nielsen data, the 30% is natural and it is going down. And that's the question that gets posted but that's not the way to look at it. That is Nielsen data. What is consumer using today? What is the penetration from Kantar? What is the consumption happening? Consumption is 70% is natural. If 70% is natural, market share will move from 30% to 50% eventually. If you look at all our brands, Dabur Red, my market share is around 16% in Oral Care, but my penetration is 50%. So where the penetration is market share will move towards where the penetration is. Consumer comes for, which is a lead measure. The lag measure is the Nielsen all those market share data. So you have to look at the lead measure. Lead measure is a penetration measure. So this is a global trend. This is on the India trend that 70% of the penetration is of natural products. If you look at America, if you look at Middle East, if you look at everywhere, category of the category, whether it's Oral Care, Hair Care, anywhere. Even for that matter of Home Care, which is not linked to natural, but I think people are using oud fragrances in the Middle East, which is more natural, which is more wood burning, is what is kind of coming in, nothing artificial, but more bio-related stuff because health is becoming so much and the new consumers are actually embracing that trend. The dimension may not be very ayurvedic. Ayurvedic is a rural dimension. The urban dimension is more clean, environment friendly, more natural, more DIY kind of things. If Dabur were to embrace that trend, a little bit of tweak, I think we are right there to go. Now these are the 4 parts of the creating the first lever. The first one is in the strategy is restaging our brands for embracing the change that I just talked about. So the entire portfolio, our core has to be not restate, I think, evolved to a level that we are resonating with the younger India, which is the millennials and the Gen Z. That said, we have a core in the middle India. We have also the core in the rural that will remain. We will not get distracted by that 20% of the population and alienate our core. Please keep that in mind. We will keep the core of Amla intact. Yet we will renovate the brand to resonate with the millennial also. They are complementary. They are not alternative. They are not contradictory. We are complementing. So one will complement the other and the other will complement the other, and the values are same. So new millennials are also talking about similar values that our core brands actually talk about. So we will talk about a little bit of a restage of our brands. I will give you some anecdotal examples and my team will talk about a little bit in detail in the categories. The second is power brands to power platforms. We talk about power brands in our 4-year back strategy. Now we are extending our power brands to power platform, wherein we are saying that we will go to the adjacencies of the power brands. If there are newer categories and innovative categories, we'll kind to leverage those kind of categories in the power brands. And there is a brand that stands for something with a value. That value will be stretched to extent wherein we are able to increase the addressable market, not to go to a value, which is completely different than the brand that it stands for. And there is a purpose of a brand. That purpose will get extended to the adjacencies. That's what I'll talk about in lever. The third is expansion of the existing categories, growing the existing category. Giving an example, Baby Care was a massage oil only for us. Will I only remain a massage oil? No, I will become a higher Baby Care as a category, expansion of existing category. Branded Ethical is an example. I was President of Branded Ethical only in 3 parts. So I will expand my Branded Ethicals portfolio but while remaining Branded Ethical. Food, I was only a culinary brand. Will I only remain a culinary brand? The answer is no. That will get extended from homemade paste, onion paste, garlic paste, we will move to adjacencies, expand our existing categories and enter into some new categories, I will talk about that also. Focus on digital. Digital is gaining prominence. I will move on. So this is how we will restate our brand, some examples that I'm giving you. So stronger scientific claims, Dabur Amla, 2x angle growth. More investments in R&D to be added and R&D investments in opening validation of our claims. 2x stronger, world's largest #1 Hair Oil, strengthen Amla's claims, fighting for 100 diseases, 3x immunity, earlier we were 2x, moving to around 3x now. Red Toothpaste, 3x better gum care as compared to a regular calcium carbonate toothpaste that you're using. We are still not taking that kind of a hard stand whether be a calcium carbonate toothpaste, a plain toothpaste. We are giving 3x better gum care plus [indiscernible]. So Odomos, 99% protection as compared to LVP, which gives us 70% protection. Honitus, faster relief, fast action in 15 minutes. And fast -- 2x faster growth for Lal Tail, some examples of scientific claims here. The Chyawanprash modernization of formats, how Chyawanprash will modernize. Chyawanprash we all know, Chyawanprash will be available in the powder form, Chyawanprash are already available in the tablet form. Value-added Chyawanprash in terms of Ratnaprash being added in terms of Kesarprash being added, Khajoorprash is what we are introducing for women because they have anemia issue to cater to the anemia to Khajoorprash for women [indiscernible] being added, and that has steered the market shares of Chyawanprash to around 400 basis points. Honitus, modernizing formats, again, to resonate with existing consumers. Cough syrup only used when there is a problem, cough drops can be used at any point in time, getting into confectionery market, featuring around the tea bags and blister packs and some RISE initiatives of West, and sugar-free variants also in the same. Odomos, only a personal application cream moving to a format like lotions, moving to format like cream, moving to format like a roll on, and also getting into insecticide category, launching LVP and insecticide and rackets also. And that's given us great dividends going in the past 4 years and going forward also, will still be the same. Better packaging, which again resonates with the young consumer. So Odonil packaging has changed completely. So therefore, that's given us great growth, high double-digit growth in Odonil. I think a lot of great work done by the team. I'm just sharing some examples. I think, team talk about it. Odomos, again, very aspirational packaging. Real juice packaging. It used to be a very stayed kind of pack, square pack, moving to a Prisma pack, which is a better shelf appeal, changing the positioning, which is resonating with the consumer. So fiber, which is for slimming, heart health, boosting immunity, gut health. So moving towards health. Health and refreshment and taste, of course, 100% of this is homemade again, a refresh of aspiration of packaging, giving us great dividends in the marketplace. Yes, then power brands to power platforms, I think I've talked about it, but still we are planning to increase the addressable market of Real and stretch the Real equity to larger adjacent categories wherever we can leverage the core of the brand. So therefore, 100% juice to a juice to a nectar to a drink. And this is what we've done. We've created a range called a real vitamin boost range, a real masala range, aloe vera range, plant-based drinks range, soya milk, and almond milk, [indiscernible] serve it here. So I think it is that you guys must taste it. It's amazing, very tasty. Then -- so we've divided Real into 3 sub-brands. One is called Real Fruit Power, where we are present in, then there will be Real Milk Power, in which we'll get into value-added milk, and Real Health, because we feel Real can be extended into super foods also. So there will be 3 vectors going forward. The example of super food is super foods of seeds that we've introduced, we'll be expanding that portfolio in the beginning. It's a segmented launch approach. We're doing it only on e-commerce, not brought it to modern trade, but gradually slowly we will extend. Our Real Active Coconut Water is doing exceedingly well in the marketplace. Real Aloe Power has just been rolled out. Real, which is a tetra pack consumer could not see. Now we are like launching a format. It's completely transparent and which enables out-of-home consumption. So Real pet, Real has also moved into Real peanut butter on the e-commerce platforms and we'll be scaling it up going forward. Dabur Red, extending to other gaps in the portfolio. We were a calcium-carbonate based brand. Now we're getting into gel market, where we were not presented. We had failed once. We did it around 4, 5 years. I think 6, 7 years back, we did it. We weren't very successful. We are coming back. So one of the values of the company is progression than perfection. We're coming back again, launching. I think this time, the brand is doing very well, where we rolled out. We've got an offtake around 30% odd coming in, Red pulling out and more variants will get launch. And for the purpose of confidentiality, I can't talk. But the team has got great plans in place going forward for next 4 years also. Amla, I think it's a great success story for us. I think in the past 4 years, we had gone back in Amla from 15% to 12% market share, from 12% market share, we've gone back to the 17% market share. Ever our highest market share in Dabur Amla's and that's backed by a flanker brand strategy, which has protected the brand. So therefore, what you see here, we have protected the brand for past 4 years, brought back Dabur Amla to its glory but what we have not done is premiumization. I think our bandwidth was limited. We could not do it but premiumization is what will come through going forward. So we were very busy in protecting our market shares. So going forward, we will premiumize the brand. Vatika Naturals. So that also be extended. So nearly bring again, premiumization, international range we already have. So we've got a whole portfolio in Vatika in International, wherein we can just plant it as and when India is ready, and we are doing it as we speak. So we will bring a lot of products from International to India and put it seeded in e-commerce and in modern trade going forward. Then Honey, from a bottle of glass, we moved it to a squeezy bottle. Squeezy enables breakfast consumption in the morning, rather than adding a jam or a butter on a parata, now people have a lot of Honey also, Honey on bread, Honey on parata, et cetera. So that's enable to extend the whole addressable market for us in Honey. In Chyawanprash, again, I talked about it, Chyawanprash tablets, sugar-free, gudprash, Kesarprash. And Hajmola. Hajmola, you see it's on the core brand, when I think it offers a huge opportunity because the unbranded market in the north of India, where Dabur has equity is huge. The market size itself, unbranded my estimation will be around INR 8,000 crores. We are around INR 300 crores in all smaller players in the market. So the churan, chutneys, laddu, ram laddus all that impulse purchase products, or all that, that offers a huge opportunity in all margin-accretive to what we're talking about. So huge leverage can be gained by the Hajmola brand. I think, underleveraged brand for us. So we are working on it. So as a result of all that I shared with you, it is 3x, we were catering to around INR 40,000 crore broadly, in which we, as a company were around INR 8,000, INR 9,000 crores. So we are taking up addressable market from INR 40,000 crores, to what we say, INR 120,000 crores. So addressable market in FMCG for Dabur will be more relevant, occupying more shelf share of a grocery, occupying more shelf share of a chemist, occupying more shelf share of Ayurvedic chemist, and of a eating and drinking outlet. That is what one wants to do here. 3.2x is tripling of addressable market. This will enable our growth going forward in the future. The other pillar is innovation has picked up in '19, when I said, innovation percentage is 1.4%. Our innovation percentage, our NPD has gone up to 4%. Here, we're talking about 2 years, last year and this year, 12 months have to be completed for innovation for it to be called NPD for us. So that is 4%, huge lever for growth going forward in the future for the company. Then the third lever is that the expansion of existing categories and entry into adjacent categories. So therapeutics as I was talking about. That's a core of the company. I don't know, health care, I've spoken to many of you, but the health care, we have ethical portfolio. Ethical portfolio is a text portfolio that we have. Then as the brand scales up and we find that's got traction and it's becoming more mainstream, we brand it. Like Ashwagandha is more ethical. Tablet Ashwagandha churan is ethical. The moment you branded the Stresscom, it becomes a branded ethical for us, and we will expand this portfolio of branded ethical, and we are lucky that -- and so it becomes a branded ethical. As it scales up, it becomes OTC. As it scales up, it becomes an FMHG. So that's a playbook that we have. We are trying to expand our branded ethical portfolio. And why we were not doing it before and now we are doing it now, because we are setting up a road or a platform with therapeutics, which Philipe will talk about going forward. So we are expanding the Ethicals portfolio, the branded ethical portfolio. We are expanding the nutraceutical portfolio, but the existing sales team can't do it, doctor advocacy becomes very important, which is what we are embarking on route to market, and it has to go on side by side. The portfolio has to be created, and the segue has to be created, which will be selling that portfolio. Then Baby Care, I told you massage oil, massage oil getting extended to the entire portfolio of Baby Care, and will not be sold through regular advertising route for us. That's a change. We will not be advertising Baby Care. Yes, we had a huge debate between me and Philipe about it. So I back up a typical FMCG. You launch a concept and a product and you advertise it and then you sell it. And Philipe will share the model with you. That is completely contradictory to what our conventional wisdom is talking about. No advertising. So all the advertising, 10% you save, and you go to a permanent person, who is a doctor and you get the loyalty of the doctor. So that is how you would do that business. So Baby Care will follow that platform. Hair oil, there are gaps in my portfolio. We are present in Hair Oil. So expanding the portfolio. What is the gap in Hair Oil? Light hair oil is a gap in our portfolio. Ayurvedic hair oil is a gap in our portfolio. Cooling hair oil was a gap in our portfolio. All the gaps we are plugging. While we were not successful in launching cooling, 3 times in the past, but I think Cool King is a great differentiated offering, and I feel it to be a huge success going forward, and we are tasting success in pockets. So to paste extending it to the single herbs alpha ingredient approach, which nobody has done in the country, Himalaya had done it, but we think we'll be able to execute it far better. Bae Fresh Gel is a gel entry, and tea is a new category that we are entering. We feel we have a right to win here. And it's in the top tier value added tea segment of around INR 6,000 crores that we are going to -- we are not going to the entire INR 20,000 crore market, we will only go to a INR 6,000 crore value-added tea market, which promises suraksha, which promises health benefit to the consumer. And we'll not be selling it on taste, but taste plus health, which is in line with Dabur. Food portfolio, we already have Hommade as a brand. We are extending the Hommade as a brand, beyond just [ Caluri ] to other food also. Branding is a choice that we are making. So there would be a Dabur brand, there will be a Hommade brand and they'll be a Badshah brand. So 3 brands. So food portfolio will be expanding, but not at a margin-dilutive effort, but at an effort which is going to be accretive to our business. Sell less, but sell at a profitable thing, so that doesn't take our profits down. That's what -- there's a new entry in there. I don't know whether we're giving you a hot oil. So Dabur has got expertise of understanding Ayurveda, there's a food company. A food company pursues food as a business. Dabur personal Ayurveda, we have to bring both Ayurveda, knowledge and food together. That is what differentiates Dabur to other organizations. I think kudos to my colleague, Dinesh, sitting here. He comes from a food background, and he and Dr. Baidyanath worked together in R&D and created a magical product, which is edible oil, which improves the elasticity of heart and makes a better heart product, in great effort. I want to introduce, I haven't introduced. So Dinesh heads our food R&D and Dr. Baidyanath, heads our Ayurvedic R&D, both of them. So great effort done by and Prasoon heads our HPC R&D. So we have to work together as a team, how to take Ayurveda to other parts of HPC to the parts of food also. Now, the last one in the portfolio approach is creating a focus on digital, and digital becomes very important for us. And if I know, around 4 years back, our digital spend used to be around 4%, 5%, and digital spends have gone up to around 30%. I think going forward this year, it should be in the range of around 35% to 40% digital spend is what we are spending. We are in programmatic spending on 34, collecting first-party data on all our power brands, so that we become razor-sharp focus. 2,000 influencers is what we are reaching out to, and creating through influencers, we are understanding the trends. From the trends, we are creating creatives, and we are serving those creatives using AI and ML to our consumers, and that's how this virtuous loop is actually building for us. And we've developed some great creatives, in which -- for digital creators, some of the creators will be shared by the team with you guys. And we've won around 46 awards in '23, in which one of the notable ones will be Abbys, APAC, ET, brand equity, et cetera, exchange for media. So great acknowledgment by the industry also, actually happened here. And we reached out to around the population of the country in terms of overlapping of the creator 2,000 odd influencers that we are reaching out to. So what you see is only the film actors and the actresses that Dabur uses. But below that, the 30% spend is going to our smaller micro and mini influencers, who are actually building the brand at the middle India level at the bottom India level and also at the top level for us, who are the opinion leaders going forward for us. E-commerce, by the way, contributes to around 9% of the business. Again, 4 years back, e-commerce contribution was hardly 1%, but I think stellar job done by the team here, and we've created an entire vertical of capability of e-commerce, which would only grow from here. So 9% industry beating performance in e-commerce for us, industry average will be in the range of around 8% odd and our e-commerce performance is 9%, gaining market shares across our core brands. And also innovation rate is at 9% to 10% on e-commerce, as compared to regular innovation rate of around 4% for the company. So I think great job done by our lead here, Mr. Smerth khanna, and the team of youngsters that who've created. This entire vertical and going very strong and every day. Yes. The second part of my strategy, that was a winning portfolio and innovation that I talked about this portfolio. You can create a portfolio, which resonates with the younger consumer with a changing India, and that's what we are doing. We are understanding all that. I haven't talked too much about the clean labels, environment-friendly labels, peta friendly, no animal testing, et cetera. If you look at a new-age brands with some of them in a gift hampers, we'll share, we nudge you all to go through the back panel label. As to what we understand, like the start-up brands. So it's no nasty portfolio. It's clean portfolio. It's green labels. It's very environment-friendly labels. And every power brand in the company will have those extensions, which will resonate with the millennials there. So therefore, every brand will talk about that, too, along with the core, which is in middle India and in the rural India. So that whole playbook is working seasonally well for us. So Fit for bubbles RTM. So you will say very complicated. You're adding a lot of SKUs. But I think RTM is over simplicity. So I'll add to the complexity in the next slide that I talk about in RTM. India is changing. Like consumer changed. Channel is changing, dynamics are changing, complexity is getting added. But as soon as of course, if we have to survive, we have to change, we have to develop, we have to advance. And that is what is happening in India. So Dabur's got a diversified portfolio, not yesterday, not today, it's been there for 135 years. So we started off as a company as a dispensing that Ayurvedic chemist outlet we cater to, which other companies don't cater to. We cater to a dispensing vaid, who creates the old formulation. We give him raw material. He creates his own formulation, any suppliers to the consumer, which you guys may not know, but that's a very big part of Ayurvedic business. Ayurvedic doctor doesn't believe in giving a generic product. You go, he will do your [Foreign Language], and he will say, okay, there is a compounder sitting outside, you please take. He will give you some [Foreign Language]. He will give you some [Foreign Language], which are all his own formulations. He uses Dabur raw material there. So that's how we've grown as an organization. We supply them raw material. These are called dispensing vaid. That's the first vertical we cater to that. We cater to a Ayurvedic chemist where 80,000 in number are direct reach is already there, Ayurvedic chemist. We cater to 250,000 chemists directly, which is the allopathic chemist that we guys cater to. We cater to groceries and convenience outlook, which everybody talks to you. Wholesale, everybody talks. We are now catering to eating and drinking outlets through our real portfolio, because we become a INR 5, INR 10 and INR 20. So they are all carrying that. The highway outlets, wherever you go, they will want to carry a real juice like a Pepsi, they carry or Coke, will carry. So that outlet is becoming relevant. Beauty parlor's a very big influencer piece that we are catering to. We have more than 100 people strong team, which is going to beauty parlors day in, day out, building our oxy, building our fame, building our other hair care portfolio. Already happening as we speak. So we are reaching out to around 2,700. How many beauty parlors do we reach out to?

A range of 30,000 beauty parlors.

30,000 beauty parlours in the country. We are reaching out to good beauty parlours, who will be in the range of around INR 2 lakh in the country, but the universe is huge, around INR 6 lakhs, INR 7 lakhs. So 30% of the main INR 1 lakh beauty parlours, we are already reaching out directly and they are big advocacy channel for us. Like doctor Ayurvedic, Doctor's advocacy for Ayurvedic vertical, allopathic doctors which we are creating will be advocacy for our branded ethical portfolio. Similarly, salon, beauty parlor owner is the advocacy channel for our Cosmetic and our Skin Care and Hair Care portfolio. That is what we are building. And we are doing it. It's not that this a new thing that we are talking about. Dabur is used to it. So we are used to and we have a team which is already doing it. So this entire range of trade is in metros and mini metros and Tier 2 towns in villages, which are 6 lakh in number. All of them are there. The profile changes, but they are all there. So rural urban consumer is changing. Agriculture income has gone up. So 1 lakh villages are the most prosperous villages in the country, which are contributing to 60% of FMCG consumption. We have already reached there directly. We've appointed sub stocks. We have already reached that. And so what we are doing is now we are going to the second tier, which are 3 lakh-plus villages, which contribute to 30% of FMCG consumption. We are teetering there now, because they are becoming prosperous. As India is urbanizing, these villages will also urbanize. So -- and what's happening is wholesalers, which are earlier catering to these villages, they were based in metro towns. Now they are getting based to mini metro towns. Small feeder towns used to be metro. But now feeder towns are more, mini metro catering to those. And as and when we'll see it will become more and more interior. The main metro towns are more catered by the B2B and B2C and a modern trade kind of infiltrating into those towns. So they are shifting wholesalers. And post COVID, there has been a surge in the Kirana outlets as we all know, and the expansion of metros happening in CR is becoming bigger. The consumption is. So these are dynamics which are actually changing, and we have to cater to these changing dynamics. E-commerce and modern trade is assuming huge importance. I told you, 1%, now 9%. Quick commerce within e-commerce has become 25% of our business, unbelievable in the past 2 years. 2 years, Zepto has grown at 200% for us. Quick commerce is really taking Blinkit, Flipkart, quick commerce, Swiggy, all those are doing exceedingly well for us. So, Dmart and Reliance are contributing more than 50% of the entire consolidation, happening in modern trade also and self-service getting converted into modern trade also. So that's also happening. And more Kirana is becoming self-service. So Kirana to self-service, help service to more organized modern trade, to 4 to organize modern trade, to maybe consolidation with the Reliance and Dmart.. So how is one tackling this complexity? Fit-for-purpose GTM and for the larger objective of Ghar Ghar Dabur. We want to reach out to as many people. We want to touch the lives of as many people. It's not possible until unless we have a fit-for-purpose RTM, fit-for-purpose RTM. For health care, so very focused. For health care, if you want to reach out to Ayurvedic, we go to Ayurvedic chemist already. It's a segmented approach of GTM, and we've got different teams who are doing this. So there is a separate team which is going to Ayurvedic chemists, there is a separate team which is actually, at the moment, as we speak, is also going to an allopathic chemist outlet, for which we do advocacy with the therapeutic vaid, and now we are setting up advocacy for a allopathic doctor also. HPC was a single vertical of distribution that we already have. We are splitting it up into larger towns, as the scale of business is growing into HPC 1, HPC 2, HPC 1 is more oral care driven, HPC 2 will be more hair oils driven. So that is how we will split it up going forward. Beverage business, as it scales up into drinks, we are, again, beverage in the larger towns in North was a separate team for us. As the drinks portfolio goes up, INR 10, INR 20, INR 50, INR 60 SKUs goes up, we will be appointing separate distributors for our drinks portfolio in smaller towns also, and separating that distribution of beverages going forward. Salon, we already have a team, which we will strengthen. That is a segmented GTM approach for us. The second part is how we are handling and what are we doing with every channel that we guys speak. So infrastructure, stockist is infrastructure. In metros, where we find larger stockist, we are consolidating stockist. All the 3 divisions, same stockist, but street on street will be different. As we get into mini metro, it is separated where you don't have the bandwidth. Assortment MSL, we are going to outlet. We are now digitizing the MSL. We've already configured the MSL algorithm. In the handheld terminal, every time a boy is going there, he gets a push list that this is the MSL he has to conform for hair oil piece, which includes 3 bottles for 200 ml, 3 for 300 ml. This is the must-talk list or this is a picture of success that we want, and we are checking compliance of that. There is a supervisory app, which tells the supervisor that you've got 10 people, your command. And out of these 10 people, 4 are complying to the MSL, 3 are not complying. So what he needs to do, just call them up, talk to them and provide enablement there. It's all digital assortment now. Algorithm created. We are working with start-up like StackBOX. They are providing us with algorithm and this algorithm is creating dashboard. The dashboard's come on supervisory app, and this information is getting relaid do the sales win and he does the corrective action as we speak. We have to engage with these segments very well. So A-class outlets of all these segments is where we are doing channel programs. We do channel programs for Ayurvedic counters. We are doing channel programs with chemists. We are doing channel programs, the top-level grocery. We are doing channel programs with OFO, what we call open format outlets and with the modern trade, also which we call JBPs, joint business plans. This is what we guys do. With the joint business plans with the Reliance, Dmart, happens like every year once, which cadence is becoming more and more frequent. Joint business and this channel programs, what we've named it. So Sathi is a channel program for a sub stockist. Goonj is a channel program for our wholesale. Then there is Hind, which is a channel program for chemist outlet and there is Pragati, which we call a channel program for OFOs, open format outlets or A class outlet and JBP, of course, for e-commerce and modern trade. So A-class counters of all these channels, there is a channel. What do you mean by a channel program? It's a annual deal do with them. If you have a business of INR 20 lakhs last year, you give me a growth of 20%, this is what you get at the end of the year. Very simple, and these are the deliverables that you need to do. Keep life simple, and we have a channel program. Distribution direct to reach. We are reaching out to 79 lakh outlets in the country out of 1 crore outlets. So whatever, 18% of that is my direct reach today. I'm reaching out to 1.5 lakh outlets. I want to take it up 1.5 lakhs to 2 lakhs, and there are benchmarks. The best-in-class company reaches out to 20% of direct, as compared to direct plus indirect. So 20% is a benchmark, and that's the target, which is given to all the sales guys, area managers, HPC, HC, and they are chasing that target. So that is the way urban business will be getting handled. For rural business, simple 6 lakh villages, 1 lakh villages, I want to -- I know that there are prosperous villages on the top tier of 3 lakh, which have a per capita income. So top tier of 3 lakh as I'll cover another 1 lakh villages, I want to go to around 1.2 lakh villages totally. So therefore, prosperous villages are geotagged, and sub-stockists or Yodhas appointed in those prosperous villages, they become stocking points for us, what we call village-level entrepreneurs. As the business scales up, we convert the VLE into a sub-stockist. The sub-stockis gets catered from a super stockist, eventually becomes a stockist for us, and we start growing the business going forward. So we have -- this is a dated number, 11,000 as we speak. Last quarter was 12,500. So I think our Yodha appointment is going full steam. And this model and a playbook is very well established for us. New channels, new channels are evolving at a very fast pace. New channels used to contribute around 12% of my business earlier, now it's contributing to 20% of our business. Again, huge growth in new channels, and that's a growth pillar, and this will be dovetailed with the premiumization portfolio also for us. And it's also cradle for doing proof of concepts for new brands also. So we are changing structures. So fit for purpose organization structure is being changed in the company as the time changes. So we had -- when I came in here, entire e-commerce was handled by Accenture. We were not handling e-commerce. We brought disengaged Accenture. We said it's very important that we need to bring it in-house. We disengaged, we brought e-commerce in-house. We got a youngster Smerth sitting here. So I don't want to talk too much about them, then he comes back and tells me, what for me reward. So therefore, I'm a little target cheek. So I have to be very careful here. So a youngster from Dubai came in, knew nothing about e-commerce and came to India along with me when we came in. And we've created e-commerce from 2% e-commerce has become 9% e-commerce, and a growth is 50% year-on-year for us. So we spun off e-commerce as a separate vertical as a business structure, separate marketing, separate supply chains, separate procurement. Everything separate, giving him autonomy to operate like a business head and not as a channel head, not as a sales head, but as a business head. So therefore, the entire business and now, modern trade, e-commerce, B2B, C&C Cash & Carry, enterprise, CSD, all over one head, we have broken it up into 4 heads now. E-commerce, separate. Modern trade, separate. Enterprise, separate. Business between -- under enterprise also separate businesses, with P&L responsibility given to them to drive their own business. And creating a data-driven organization. I talked a little bit about data in the urban thing. But I think data goes much beyond, I will leave it to Kaustav to actually handle the data piece. But I think it's amazing what we guys are doing on data. We have given a separate ad to supervisor, which I talked about. We can monitor the performance of his subordinate. There is a hand-held terminal given to a salesman, who's actually going to the sales and doing business. He's getting push list through a reservoir of data, which is mined and intelligent nudges are given to him, what to sell for improving premiumization, for MSL adherence, et cetera. Even the rural sales force is now transparently visible to me, because hand-held terminals are given to rural salesperson also. Even the WAN outlets have got application. So what we are doing is we are also giving application to retailers now. Select retailers are being given applications, so that retailers can give orders to Dabur directly, and E Gurukul is again app that we have got in which we are training. And we are following a model of pharma into FMCG now. So because, we have a huge portfolio. We are asking our salespeople to learn what the product is all about, what is the wholesale rate all about, how only what is the rate that -- what is the competitor rate, what is our rate. He will learn it, and he will upload his image of learning image on the app, which the supervisor will verify before he goes and makes the call. This is a learning from Philipe, which has come in all pharmaceutical medical representatives do that. We will implement it. Because what happens there, he will go [Foreign Language], red toothpaste [Foreign Language] and the call is finished there. No, no. Now he has to first, show me how we speaks the supervisor, he approves it before he hits the journey, but we are embarking on the journey. We know what to do going forward. So we are trying to do cost learnings, which are coming in from us. And in sales application itself, we have got around 12, 13 apps that we are using today in digital enablement, around 12 apps, and we are working with StackBOX, we are working with Domo, multiple people is what we are working with. And we are not creating apps ourselves. Earlier, it was Accenture. We have changed. Rather than creating apps, we are taking off the shelf apps, which have got best practice and proof of concept already established in the marketplace. Those apps, they are working with us, and that's how we are working. I think Anshul has got a big steer in the digital transformation of the sales organization, which has to go to other functions, also which I will talk about. The result of all this has been this. So 6.7 reach has gone up to 79 lakhs from 67 lakhs to INR 79 lakhs, reached 1.1 Direct 1.4. We are looking at in next year or a couple of years, 1.6 village coverage from 100,000 will move up to 120,000 eventually to 200,000. Yodhas, from around 12,000 will move up to 20,000 as we speak, very ambitious. Chemist coverage from 270 to 300 and Edge Score, Edge Score is a execution perfection score for us. It is number of bills that we cut a number of outlets that a guy goes to, multiplied by number of lines that he sells in a particular outlet, and we create Edge score, which is 88, is targeted to go up to around 100. And only if we achieve the 100 as a edge score, we'll be give him a incentive. Otherwise, incentive will not be even to him. So therefore, there could be a little turnover, but we are promoting meritocracy in the organization, not democracy. So if there is attrition, so be it. But meritocracy will not be compromised here. So there was -- there's no Edge score. It went up to 88. When we implemented Edge score, it was in the range of around 50, went up to 88. I think, fantastic achievement, and we'll be setting a target of around 100 going forward. So building capability, I thought this should have been the first slide of mine, but it's come in much later. So this is the cultural transformation of the company and building capabilities. I think it's very, very critical. And all this that I talked about has been happening, because we'll be able to see changes in the cultural fabric of this organization. And in view, a lot of meritocracy and entrepreneurship in the company. First is operating model changes for giving empowerment to the people, for them to become more agile and accountable. So first, we empower them, till the time we empower the e-commerce business head that he's accountable for profitability, he will be never. He will all sell top line and e-commerce selling is very easy. You give a 40% discount and you sell and you'll give a 50% growth. But the moment you give him a target of profitability equaling to GT, that's where the pain point happens. So I don't want the 50% growth on e-commerce if my profitability gets drained than this thing. So very tough charge. Top line also, you have to grow and bottom line, you have to maintain. So P&L responsibility, given the operating model changes I've talked about, maybe we can move to the opening. Second one is collect and develop. Culture of innovation the company has changed. Earlier, it was only R&D. R&D used to take pride on the formulation that we will create. We are trying to see changes, get newer people in the company who will connect with vendors, who will connect with employees, who will connect with specialty chemical vendors to tell us what are the formulations that we can create new molecules, which are coming, new compounds that are coming and create innovations of third parties. And innovation also coming from [indiscernible], which has been implemented in different parts through marketing also and through our buyers. And very recently, I think, around a month back, we did a vendor meeting. I think Rahul had organized all vendor meeting for us. And the kind of ideas, it was a day's workshop that we guys did in Taj palace. So amazing ideas that actually came in from the vendors, how to improve our formulations, better technology, induction in the formulation and how to make our formulations more efficient going forward. Yes. The sale past approach is another thing that we induced in the company. And I think classical use case for that or I could illustrate that during COVID, what happened. I think in 3 months' time, we were churning our product, because we had the wisdom of knowledge for alleviating consumers on the pain of COVID. So that's what we guys did. So launched multiple products like sanitizers. We launched Kaadha, these are some of them. And we've been able to cull them. We culled the ones which are on the rationalized NPT. This we have culled completely. There are no more in our portfolio today. So we weed and feed. We keep seeding in new products to extend the life cycle and increasing the relevance of my core brand, and keep weeding out the products which are not successful, because this will happen. This is a playbook and in a playbook, something will be successful and some will not be successful, and we'll be charting on the path like that. Sanitizer portfolio of INR 100 crores is completely culled out. Low-calorie uses we introduced. We thought it's a great thing to do, but not done well. So be it. Antiseptic liquid, not done well. Turmeric latte, not done well. We took a train from Starbucks launch, turmeric [ latte ], hasn't done well. The taste is not as great. We culled it out. Kaadha not done well, but we feel it's a fantastic product for us, so can we modernize format is what we are seeing. This is all successful. We launched drinks, success. You keep asking me on NPD successful, all is success. Our single ingredient Alpha toothpaste is extremely successful. Gur Chyawanprash, very successful. Tea, successful. [ Fill ], successful. Edible oils are a success. Definition of success may be different. I call INR 10 crores a success because in a channel, when you launch it, which is only contributing to 8%, 9% of our business. In that, if I create only a INR 10 crore business, it is a success to me. It is a segmented launch I'm doing. I'm not complicating life of my entire GT by launching and creating a INR 100 crore franchise now. This is our playbook. And gradually, slowly, this will only grow. This is a future fit portfolio for the company. So our Ghee, very successful. I think any guy we give ghee to, there is a consumer coming, but we are restricting supplies of all that. We are not opening it up, because we don't want it to actually dilute it. Okay, building capabilities. I've already talked about it, and I've introduced the team to you. I think in even talked about it. I think this is very critical for us, and these are all capabilities for the future. If you -- I'll talk a couple of people, Ankush, you all know. Nedn't k about it. Krishnan superannuated and Biplab took over from Krishnan so superannuation. Adharsh Sharma, superannuated. So Anshul Gupta took over from Adharsh. Shah Rukh Khan, superannuated and Rahul Awasthi, took over from him. Raghav came in, lateral hire from the company. Mayank has been in the organization, for how many years, Mayank? 21 years in the company, now spearheading F&B. Abhishek Jugran 16 years in the company. Philipe, we have a gap in our talent. So Philipe came in, John with us for 21 years.

21 years.

21 years. Again, joined with us 21 years. Narayan was a management trainee with us, now Head of Purchase. Unfortunately, we lost our Procurement Head Sumit, [indiscernible] was his protege who took over. And Rishi because the previous guys superannuity she's coming from Unilever we see. I think great. Umesh has joined us from Mondelez and Dr. Baidyanath Mishra from Himalaya and the rest also. Prasoon is again from Himalaya, heading our HPC. Dinesh is heading our food, Kaustav IT. I talked about it. And Smith, of course, we talked about. So that's a capability thing. Now on operational excellence and ESG, I think you've heard enough from me. [indiscernible] Madam telling me the time. So tell -- so I think I will hand over the baton on the mic to Rahul to take you through the journey of operational excellence and ESG and Rahul is driving ESG on his own. And then to Kaustav for digitization and then to Ankush for profitability. Thank you. Thank you, everybody. Yes.

Good afternoon, everyone. I am Rahul Awasthi, I look after -- good afternoon, everyone. I'm Rahul Awasthi, I look after global operations for Dabur, and I am privileged to get this opportunity because operations for Dabur is the backbone of this very vibrant USD 1.5 billion global enterprise. We are already a very excellent and functional operational team, but our aspiration is to become best-in-class operations team, not only within FMCG space, but across the industry space, we want to be the best. And what we will do when we will become best, is that we will deliver sustainable, profitable and competitive growth to the business. Now to do that, our levers are that we strive to be digital, we strive to be diverse, we strive to be disruptive, and we strive to be sustainable. Now -- by doing this, we will not only deliver today, but we will transform for a better tomorrow. I will talk in brief about what we are doing in various subfunctions within operations through stories. Planning and logistics. Mohit already talked about the complexity of our business. Just to tell you a fact, if you see the entire FMCG landscape, Dabur is probably the only FMCG in the country, which competes with all other FMCGs. Take a portfolio of Unilever, they are very well into HPC portfolio, but their food portfolio is not robust. Take example of Marico, they are practically in oil, but not present. Dabur has a portfolio, where we are competing with every FMCG in the company, and that creates a lot of complexity within operations team. So we serve roughly 3,000 distributors across the globe. We serve more than 8 million outlets across the globe, and we produce more than 5,000 SKUs. And we are doing it very, very effectively by using real-time data and market insights. Now I don't want to talk about SAP and IBP, because in my opinion, those has become table stake now. We are really using digital very, very effectively in this space, and we are -- we have already engaged with many tech start-ups like Pando, like Freight Tiger and all those start-ups, which are working with us in making our primary and secondary freight very, very effective. They provide us real-time data visibility, and help us optimize our cost through notability in Greece, alternate routes, lesser distance traveled. The complexity also reflects into the way we do our procurement. It is also very, very diverse. Our global forcing network is across 4 continents, 15 countries, a base of more than 3,000 suppliers, 9,000 unique RMPM. More importantly, 40% of our sourcing comes through vendors, which are not big vendors. They are micro and small vendors, particularly when we source amla, when we source our honey, when we source our spice and herbs, all comes through micro and small vendors. For that, we are working very extensively on digital space through a start-up called Cropin to generate traceability of our full value chain, and we have established that model for our honey, varying farm to [indiscernible], we know from where our honey is host, and we will soon replicate that model for our spices and herbs category as well. We have a very robust manufacturing network of 22 manufacturing units. Mohit already talked about that manufacturing network. They are a state-of-art manufacturing units. We have 60 contract manufacturing locations. They also provide us a lot of leverage, particularly for new product development. Our operating model is when our volumes go high, we do in-house manufacturing. But for agility, for developing new products, where we acquire speed to market, we leverage our 3P manufacturing network in a very extensive way. Our manufacturing units produced roughly 60 million cases yearly and 3 billion each, a number of consumer touch points we create every year. And we are on to journey of really leveraging Industry 4.0 initiative, lot of examples are there wherein we use IoT, where we use artificial intelligence and machine learning to make our machines and operations much more efficient, both from a machine efficiency perspective and manpower productive -- manpower productivity perspective. We are also disrupting our manufacturing through automation. A lot of very cutting-edge, new type of machines we are bringing in. We have established automatic storage and retrieval system in our Tezpur unit. We are -- we have taken hyperspeed machines, which produces roughly 40,000 packs per hour. We are using robotic palletizers and robotic arms to improve our manpower productivity. One of the important things, which Mohit talked about, is the -- is our manufacturing footprint because we are a very old organization and traditionally, our entire manufacturing footprint is towards north. We need to change that. And what we are actively working now is that we have mapped our entire center of gravity of our demand. And now we will match our center of gravity of demand, to center of gravity of supply. We have already initiated that activity by setting up a plant at Indore, which will tremendously reduce our distribution cost. We have already started seeing the benefit of that. Our ambition is that in the next 5 years, we will reduce our distance travel by 30%. And that not only will reduce give a huge benefit on cost, it will also reduce our carbon footprint, which is a very, very important aspect for us. Our packaging development team worked very extensively with our marketing teams to develop new product development with speed. They are also providing a lot of insights for innovations. And they work on a concept called open innovation, where Mohit talked about that we not only depend on our R&D team to create product for us. Packaging team engages with various vendors outside the market and create products, which are very new product for us. Packaging sustainability also is a very important task on which our team works. And I will not talk about the things which you already know, but we are working on some of the themes which are really industry-leading things. One of the example is, you must have heard a ban of [indiscernible] plastic, which is -- there is a mandate from the government that we need to use 50-micron plastic for [indiscernible]. Now we are working with various leading-edge suppliers and developing enzyme, that if you mix those enzymes into the plastic, actually, the plastic becomes biodegradable. And then we can use even 35-micron plastic for the same packaging. Now just imagine the impact it has, it will reduce my plastic footprint by 30%. We have already done the prototype and submitted sample to statutory body to approve that. As soon as that is approved, we will get there. And these are the kind of initiatives our packaging teams are working on. Our corporate quality assurance function works on a principle that quality should not be reactive, it should be very, very proactive. And we are doing continuous improvement on that aspect. We are not only relying on checking by a human on the shop floor, but most of our manufacturing setups are completely on Escada, where every batch is monitored, every ingredient is monitored. It is traceable. We know how much quantity is going, and we can do real-time correction in our formulations, to ensure that our formulation integrity is maintained. We also have adopted vision camera monitoring system on our packing lines, wherein the defect, it -- if at all it is produced, there is no manual intervention required to actually remove that defect, but line stops automatically and the defect which is generated will be thrown out of the line. Those kind of initiatives are ensuring that we do consumer delight for our consumers. We also have a biodiversity division. As you know, we are the largest Ayurvedic company globally. And hence, biodiversity is very, very important, which we use in our product are critically ending the herbs. And unless we do those harvesting sustainably, there is a chance that those herbs will not be available for our future generation and we cannot let that happen. So our biodiversity team works on that aspect. We have 2 state-of-art nurseries, 1 in Pantnagar, another is Nepal, which is completely climatic controlled. We can monitor the condition of soil in those kind of nursery. We generate more than 2 million sapplings a year, and we distribute that to farming communities who works with us. We recently have done around 7, 8 months back, we have done an MOU with World Agroforestry, wherein we are working with them. We are providing them with these saplings and they are helping us put that for plantation across the country. We are working with 20,000 farmers and bee keepers to tease them on sustainable farming practices. And we are doing contract farming on roughly 8,000 acres of farmland. Dabur -- sustainability is in the DNA of Dabur because we are a Ayurvedic company, it is in our DNA. But for the last couple of years, we have really revamped this journey. And we have really taken some very, very auditious goal, as you can see here, on climate and biodiversity, we have taken a goal that we will achieve net 0 by 2045. Now this may sound very distant, but mind you, this is not only our own operations, this is the complete value chain. So only 15% to 20% of the carbon emissions come from our own operations. If we have to achieve this, we have to work with our value chain partner both back end and front end to achieve this, and we are fully geared up to achieve this. I already shared that we are doing contract farming in 8,000 acres of land roughly for medicinal herbs. On plastics, Mohit already shared with you that we have achieved plastic positivity in financial year '23, and we intend to continue it. On sustainable forcing, we have taken a target that all the high-risk materials, which shore through our procurement team, we will ensure that by '26, financial year '26, all high-risk material, which we source, we will ensure 100% afforestation. Some of the high-risk material, which we source are critically-endangered herbs, which I already shared with you, we will do it through contact farming. Some of the other high-risk material are Tetra Pak packs. We are ensuring now that all 100% of the Tetra Pak packs, which we source, comes from FSC-certified vendors, who are ensuring that they are putting equivalent amount of trees to ensure that afforestation happens. So these are the ways we will ensure that this target is met. On energy and water, we have really made biggest slides in last couple of years. I'm happy to share with you that as we stand today, 50% of our Scope 1 and Scope 2 energy, which is electricity and fuel, comes from sustainable sources. And we continuously striving to increase this percentage further. In next 2 years, we will increase this percentage from 50% to 60%, and then extend this initiative to our value chain partners as well. We are also working extensively on water conservation and use of water. So water intensity means how much water we use in our operations. And I am happy to share with you that in the last 3 years, we have reduced our water intensity by 22%. So every ton of products which we make -- earlier, if we used to use 100 KL of water, we are using now 78 KL of water. We are not only reducing the usage of water, we are also doing a lot of effort in conserving water. So whether it is ensuring that there is -- there are rainwater harvesting systems in our operations, we are also working with the communities across our factories and depose where we are to ensure that we work with communities to create stop dams. We do recharging in the communities. And by that, we aim to become water positive by 2030. We are also working extensively on diversity with which Viplav is leading, wherein we already increased our board gender diversity from 7% to 12% --, 14% last year, and we are targeting 18% gender diversity at managerial level by financial year 2028. On social impact, our CSI team led by Byas is doing a wonderful job, and in financial year '23 alone, we have created [ $2.76 ] million beneficiary out of our CSR projects. And I already shared, I will not repeat that we are working extensively with bee keepers and farmers. On governance meter, 100% of our audit committee is comprising of independent directors. 5 out of 6 committees are led by independent directors. There are various subcommittee, whether it is risk committee, we recently form ESG subcommittee, all the subcommittees are headed by independent directors to ensure neutrality. We have -- we are also regularly publishing the BRSR report. And this year, our submission will be of a very high level of maturity. As per BRSR, they have not mandated assurance this year. They said that we have to submit the BRSR report out of 144 parameters, we have given our declaration on 138 parameters, which is really best-in-class given by any company in India. We have not only done that. We have gone 1 step further, and we have given -- taken the assurance of that also through independent agency, which will be mandated from next year by BRSR. So these are the things which we are doing as an operations team. And we -- I'm sure with my teams effort we will be able to achieve our vision of becoming best-in-class supply chain and operations team across industry. Thank you.

Good morning, everyone, and I'm here to present to you the remarkable journey what Dabur has started in terms of path to our digitalization, and we call it Dabur Tech. So when we talk about Dabur Tech, we have actually divided into 4 pillars. The first one is enterprise, the second our factory or our industry. The third is our consumer and fourth is our customer -- third customer and fourth consumer. Each of these strategic pillar play a very, very pivotal role when it comes to driving the value, what we want to provide to our stakeholders. All these pillars are actually helping us to communicate interact with our employees, our vendors, our partners as well as customers. So let's look a little bit it's due for us. So the first one, when we talk about enterprise pillar, what we have done, we have migrated all our applications and workloads to cloud. Now Mohit spoke about that we have launched a lot of NPDs. If I just give you a sense of it, that in last 2 years, we have launched more than 100 NPDs or new variants, which translates to 1 NPD per week. Now if you tie back the entire business processes that the formulation is there, then you have a packaging, you have a marketing, sales and all those kind of things. Without digitization, it would have been very, very difficult. Cloud has given us that agility. Cloud has given us the flexibility that we can meet the speed of the business -- match the speed of the business. The second thing what we have done, we have implemented data lake. Now data lake is not just about our internal data. We have our internal data. We have the second-party data, which we have purchased. And at the same time, we have also taken the publicly available third-party data to generate our business insight to provide feedback to our products, what we are building and to provide feedback or business insights to our marketing and sales funnel. What we have also done is we have automated our critical business processes, specifically in finance and shared services space. What it has done -- it has done 3 things. Number one, it has improved the efficiency of the resource. Number two, it has reduced the human error, which was induced in the process earlier. And the third thing that the excess capacity is now reused to the strategic initiative, what we are doing. We are using best-in-class RPA solution. As I said, that our core ERP system is, again, I mean, the latest one provided by SAP. If I talk about Indian FMCG company, we are leading the pack. If we are not the first, we are among the first player who have -- who are using that platform. Furthermore, our investment on digitization is also helping us with our employees. So we have prepared or we are providing a technology enablement to our employees so that they can be trained on newer technologies, they can innovate and collaborate better with us. The next one is industrial IoT and factory system. Rahul has already covered a lot of things over here. So I will not talk much about it, but I will at least tell you a few things what we have done, using artificial intelligence and machine learning. And again, guys, I'm not using machine learning just because everybody uses that word. We are talking about all the 3 vectors of machine learning, the supervised learning, the unsupervised learning, in fact, [ reinforced ] learning as well. So it's not a linear algorithm what I'm talking about. We have taken the -- we have put sensors on our assembly line, taken that data, use machine learning algorithms and eventually shown a tangible benefit to the organization in terms of improving the OEE and reduce -- significantly reducing the cost of our variable overheads. We have also implemented machine learning, specifically on our PLC data or Programmable Logical Controller data and ensure that the more productivity is coming from our assembly lines. Also, the other thing what we have done is that we have used digital native tools to improve the safety parameter in our factories. In fact, a safety parameter, the number of safety-related incidents reported at 2.5x more incidents are reported. And as a result of that, we have improved a safe culture in our manufacturing space. Now coming to consumer engagement. Now Mohit has already touched quite a bit about the consumer engagement. What we are doing in consumer engagement. The first thing is that, again, using the power of data, as I said, that we have a data lake, we have data sources coming from various different places, using the power of data, we have built a sales analytical engine, which tells us that where to sell, which product and at what time. We are also using machine learning algorithm for a suggested order at a retail store level. So we have, I mean, capability where we provide [ not just ] to our salesmen that at a particular store or depending upon its geographical place, depending upon the adjacent area, what kind of SKUs that person should sell. Again, we are moving to cloud-based sales platform for our real-time secondary sales reporting. What it will help, it will help us to take decision making -- it will help us take our decisions faster. We have already launched our Retailer app. I mean, right now, it's in pilot phase. By doing that, what we are doing is we are empowering our customers and providing them a capability to place an order as and when at their own terms at their own leisure or at their own will. And last but not least, we are also improving our rural sales through -- by providing different technology platform. And that is clearly going to show or that is already reflecting into our results as well. Moving on to the last one which is our consumer engagement and massive, massive work is going on in this particular space. The first thing is, again, with the power of digital technology and the data what we have, we have improved our programmatic spend from 40% to 70%. What does that mean? This means that the effectiveness of our digital spend has increased considerably. We have segmented -- I mean we are segmenting our buyers, we are doing a target marketing, we are doing a personalized marketing campaign for our users. And that is increasing our reach frequency and impact in a very, very cost effective way. We have introduced digital Asset 360, which means that all our digital assets are managed through a single platform. It's streamlined to be pleased in all the places, be it our website, be it our e-commerce site and other places so that we can provide a seamless experience and touch point to our users. Next one is specifically in the e-commerce space. I mean, we are using digital media management and automation system, which will tell that whether our product placement, our pricing is right on the e-commerce platform or not, and it is providing us a real-time nudge to make any changes we want to do. Finally, we are also using a generative AI-based platform to discover our consumer insight, which can tell us that not today, but how my consumer journey is moving ahead. And we can tap it and accordingly take the decision. Last but not least, in conclusion -- see, in Dabur for us, digitization doesn't mean a flash in a pan, it's not about just buying and implementing new technology. For us, digitization means that it is generating a business value. It is giving us a new way to reach out to our employees, to our customers, to our consumers. And yes, I mean, if I look ahead, we are committed to -- I mean, so far, our journey has been excellent, and we are committed to expand it further with the same rigor, with same vision. And together, I mean, we will shape a new Dabur Tech so that's it from my side.

Yes. Thanks. Good afternoon, everyone. While we would have interacted most of you over the last 3, 4 months on our profitability journey and what happened last year, but you would still be wondering what happened? What did we do? Did we do enough? And what is our future aspiration and goal. So in terms of our -- giving a context about our last 4, 5 years, our operating margin has been around 20% plus. But last year, it contracted to 18.8%. But let me tell you, and probably you are aware, that this contraction was one of the least amongst the peer FMCG group where we operate in. And this was primarily, and the primary reason was brutal or hyperinflation, which happened over the last 2 years. To give a context, last year inflation of 12.5% was on a base of 12.5% inflation, meaning 2 years, 25% inflation. At a group level, we had almost INR 600 crores of inflation. But how did we mitigate it? Our price increases were almost 1.4x of the inflation, which we had last year. And on a 2-year perspective, in absolute terms, we covered our price increases by almost 1.25x, which means our brands really had power to take price increases arithmetically is that you have to take double price increases to maintain your margins. But still, last year, we were able to take in absolute terms, [ 1.45x ] of price increases.

I'm sorry, I have to ask you to -- I think you're not audible there.

So just maybe last bit of context, the inflation of 12.5% and 12.5% for now, 25% inflation in 2 years. And we were able to take a price increase on a 2-year basis, 1.25x of the absolute inflation, but still the margins contracted probably least amongst the FMCG peers. On top of it, we also took accumulative saving initiatives of INR 200-plus crores at a group level, which helped us mitigate the brutal inflation, which we had. So -- but is it enough? Are we satisfied? Not at all. We -- if you all know, 3, 4 years ago, we had launched a Samriddhi Project. Now this year, given the context of hyperinflation, we have stepped up our efforts and accelerated Samriddhi benefits. We've made a cross-functional team, which has representatives from category teams from respective R&D teams from finance [ spoc ] which on a periodic governance, they meet on a monthly basis, identify objectives, identify initiatives, brainstorm, benchmark and then focus on delivering those accelerated saving initiatives. Just to give you an example, they are classified under whether value engineering, operational efficiencies and then sourcing benefits and also working capital. To give you an example, with the value engineering, every alternate -- we look for alternate ingredients. Rahul mentioned about supplier meet, a lot of ideas [ came ] where we can make alternate formulation with a better technology at a more optimal cost. Then we also look at our value chain in terms of transportation in DTMS route optimization, et cetera, both at primary level and secondary level. We do a lot of networking benefits because we have spread our supply chain in fiscal benefits. So something which is more profitable, and we have a better tax advantage or fiscal advantage. We go to those plants, then also alternate suppliers wherever we have better technology, secondary packaging optimization, also in line with improving our ESG footprint that also helps with better secondary packaging, whether carton optimization or bottle reduction in weight or plastic reduction, so dual advantage of plus plastic. So there is a very rigorous mechanism of driving these savings and I think as we speak, I'm confident and the team is confident that we will deliver at a group level, roughly 1.25x of average savings, which we had plus this year annual savings, plus also we have identified INR 100 crores plus of initiatives, which are in pipeline and significant part of the benefit will also come over next year or so. So I think we, as a team, are committed to deliver optimal accelerated savings, not only through value optimization, but also premiumization and therefore, leading to increase in gross margins as we speak, both sequentially and year-on-year. And we are also committed to reinvest part of those opportunities back into brand investments plus the digitization journey to fuel our future growth, have a sustainable growth and therefore, create value for all our shareholders. Thank you so much.

Yes. Thank you, Ankush. So I think the key point -- maybe we'll put the best for the questions. So they're all itching to know, do you go back to 20% operating margin [ order ]? You didn't touch that [indiscernible]? So I think I will -- that was a big elephant in the room. I think that is what you had to address and while it was written. So I think we guys are all working towards -- we have already given a guidance of around 19.5% is that what we achieved at the end of the year, and we are, I think, very well progressing on the journey as the inflation is actually ebbing and deflation sets in. But -- so there is a part investment happening into the [ ATL ] and brand building and the part investment is actually flowing into the operating margin. So I think we are very well on the journey. So it's not this year, next year for sure, and we are committed. A part of our [ KRA ] happens to be operating margin on a top line growth and so is the case for Ankush also. So I think we are going to be driving that profitable growth going forward in the organization. With that, I think I would want to summarize the whole strategy piece that I talked about with the vision being dedicated to the health and well-being. That's the purpose of the organization, why we are in existence and that is what differentiates Dabur to all other companies in the peers and what differentiates us, and that is what helps us to get our advantage in terms of price consumer also paying a higher premium for our products. And I talked about portfolio, GPM, culture, capabilities for the future. Rahul talked about operational excellence, how we're driving productivity and therefore, cost saving in every product that we are producing, digitization initiatives for a sustainable growth of the organization, which [indiscernible] steering and eventually the profitability. So with this, I think we should take a break of around 5 minutes, and then we will move to the category presentation starting with Philipe's presentation first and in which he'll cover Health Care, followed by Abhishek, with Personal Care and then Foods business and interaction subsequently. Thank you. Yes. Our international [indiscernible]. Yes. Thanks. Okay.

Hello, friends, we are taking a small break of 5, 10 minutes. You're welcome to please have some tea coffee and beverages which are outside. Thank you. [Break]

Hello, everyone. Hello. So we are a little behind time, but we'll try and finish the next 4 presentations in about an hour. So that by 2:30, we can start the Q&A. And so we will try to finish the next 4 presentations in about an hour and 15 minutes. And post that, we will have the Q&A interaction. We might be a little delayed behind schedule by 20 minutes to half an hour. But please do join in for lunch after that. So we will have lunch after we finish everything. It will be a little delayed, but please bear with us. So it is now my pleasure to introduce Mr. Philipe Haydon to you. Mr. Haydon is a stalwart of Consumer Healthcare. He has served as former President and CEO of Himalaya Drug company, where he served for 40 years and built the company from INR 200 crores to INR 4,000 crores. Mr. Haydon joined Dabur in February 2023 and has brought a new [ surgence ] to the health care vertical of Dabur. I wouldn't stand between you and him. So over to you, Philipe, to take on the next segment. Thank you.

So I get to address this wonderful audience and my time [indiscernible] has given me 2 minutes extra -- well generally, when I do an interview, they tell me, can you quickly summarize what you've done over the last 30 years in 10 minutes. So I've got about -- I've got 2 minutes extra to summarize what I'm going to be doing, and I hope to keep you all engaged and Latika warned me. She says it's a very serious audience. So you've got to be extremely serious. And so I'm going to try to be as serious as I possibly can. But there's one thing I must say, this has to be the most patient audience I've ever seen. I mean you're listening very, very carefully and thank you for being here. Thank you for attending this meeting. Okay. I owe you on this one. This is broken down into 4 major baskets. I'm going to talk about what Mohit hasn't already spoken about in, all right? And to start that we're looking at the health care macro trends, the second part is the health care performance snapshot, and that is just a snapshot. They're just about 2 slides exactly. -- third is the vision and the fourth is the health care growth accelerators. All right. So let's look at what's happening in the macro trends. Before I even start to talk about this, India is shining. The world is looking at India. Chandrayan, Chess, you name it, everyone is looking at India. India is in the news. Now comes the question is that there are some organizations which also have the secret duty of taking the Indian system of medicine worldwide. And those companies are companies like Dabur. If India is shining, why not India system of medicine. If the world acknowledges India and looks to India as the country of the future, why not the Indian system of medicine being the medicine of the future. And that's what we all believe in here at Dabur, which is why we always -- we have our -- as you can see, our logos, our Indian flag and then our organization. And we believe in country, organization and last [ ourself ]. To talk about what are new -- what's happening in the health care industry. Things are moving from curative to preventive. People do not want to fall sick anymore, which is what everyone understands already, be it a mother talking about a little child, be it the person who goes to work, you cannot afford to fall ill anymore. Ayurveda seeing a new transformation. We're going to talk about that. There is an evolution of new formats, which is coming in. There's the rise of the D2C brands in Ayurveda and now organizations also are moving to exclusive destinations for health care. What do you mean by that, that most of the companies -- they have their own platform where you can actually log in Dabur has too. And you can actually get medical advice straight away from the company website. What's happening? There's a huge focus on wellness. The rise of yoga, spas, gym goes actually -- I joined a place called Fitness 24x7. It's a new gym, which is open 24 hours a day. And I joined it and I never went there. I paid the yearly subscription because those guys were so big that I didn't have the courage to actually though I do gym to get my suit off and go and sit and I work out there. They were 4x my size. Everybody in the room so I decided to buy my own weights and workout at home. But the point is that everybody is moving towards wellness, fitness, everyone's talking about fitness. I personally -- I'm a very strong advocate of personal fitness, [indiscernible] training, working out. And I believe in that, that if we represent a health care organization, we need to begin from here, we need to be healthy ourselves. It's something which we strongly believe in. Mohit is a great [ gymer ] himself, right word, if I may, so take the liberty. There's a rise of -- as we can see, the rise of segments like diabetic atta, multigrain breads, oats, biscuits. People are searching for health foods, anything to do with health. Anything that keeps you healthy and prevents you from falling sick is big time now. There's a huge growth in the nutraceutical market. Immunity boosters, geriatric care, healthy juices, et cetera. And don't we all know, the rise of the smart watches and the wearables, et cetera. Everyone is aware of this. And I think a lot of people have blood pressure instruments in their home, a lot of people are checking their heart rate on Apple Watches. What has all that led to, if you go to the next slide, it's led to a total change in the way people interact with health care. The earlier your first port of call was Dr. Prashant, our health care [Foreign Language] can I come and see you. Now the first [ port ] of call is actually Google or reach certain other health platforms. From there, they get some kind of -- they Google their symptoms. You'll be surprised that I've spent a lot of time talking to doctors, very close cardiologists, they say Philipe, the first thing that people do is after I prescribed to them, they go out and they are googling my prescription. It says, can you believe it? They're checking what medicines are written for them. They are googling and they're not googling the effects, they're googling the side effects of what I have written for them. And I'm -- this is all leading somewhere, I'll tell you where it's leading. After -- to those who don't go to the doctor, they go straight into places like Practo and they look for direct consultations and then it gets even better than that. You don't even need to go to the medical store. You just go straight to 1mg, and you order it if it's not an emergency. So this whole market, this entire health care scenario has evolved. It's kind of self-diagnosis a lot, self-medication. If you do -- if you're not satisfied with that, you go online and then you can even buy online. Now what's happening with Ayurveda? A lot of customers are very, very favored towards herbal medicine. As Mohit rightly have pointed out, 70% of the world relies on traditional medicine. And what the question is, where do you get good ayurvedic medicines? Who are the right ayurvedic doctors? Where do you buy this from? There's a lot of concern. As you can see, this is a very cluttered -- this slide looks very cluttered, but the fact is that these are lifestyle diseases, which is from kind of lifestyles we lead, sedentary lifestyles, et cetera, et cetera. All this has led to a whole lot of an increase in diabetes, hypertension, what we call lifestyle disorders. Their ayurveda scores very, very strong. When you talk about lifestyle disorders, ayurveda, it is actually the science of life. It is the [ veda ] of life, which is why we -- Dabur, I believe, is an extremely strong organization that has to spearhead this i.e., the concept of ayurveda as a holistic health care management. Well, this is a nice thing, it's called the [ Hello 30 ], up to the age of 30 people believe they're invincible. And the minute they hit 30, they start to check and say, am I okay? Am I really okay? Until 30-year invincible. Now of course, they say that 60 is the new 30 all, but that's just to make guys like me feel a little younger. That may not be the reality, okay? But the fact is that you -- today, with the -- do you know that the life expectancy is expected to -- they say in a few years, you might have people living to be 120 with advances in health care. With the advances in AI, et cetera. The same people can start to live to be 120. So hope -- I've got -- I'm at the halfway mark, I've got some time, right? Now if you talk about brands like Dabur. We have this ecosystem. We've got the products, we've got the guidance. You can actually log into the Dabur website, and you can actually consult a doctor who will consult you on what -- on how Dabur can help. And you will actually prescribe a medication for you. It need not be a Dabur product. And then you can seamlessly go to Netmeds and buy your products online and your products will be delivered to you. So even Dabur is there, which is the exclusive destination for health care. We have it there, too. Now I'm going to talk about the transformation that if you were to ask me a single question that, okay, fine, Mohit announced that Philipe Haydon has come in. What is the change I'm going to bring? The change that I'm going to bring is to dial up the science of Dabur. I'm going to dial up that science. Does Dabur have it? Dabur has always had it. And -- it takes me back to the old adage that if you're the best singer in the world and you sing in your bathroom, you're not going to get to the grammies, you've got to go out there and sing. So now we're going to go out there and sing, so are we sing -- we haven't been singing the answer is what we have been singing, but now we're going to sing to this -- to this huge dais for allopathic doctors. When you want to dial up the science of herbal medicine, you need to talk to people who evaluated differently, who evaluated from the lens of modern science. Dabur has a proud R&D center, it's one of the finest in the nation, one of the finest in the country. And we need to take the science that these wonderful gentlemen make endower and take it to allopathic doctors who always -- they use science and ayurveda separately. It's up to Dabur to prove to the world that ayurveda is science, and there is scientifically validated ayurveda that comes some companies like Dabur. Allopathic doctors want to understand the action of ayurvedic medicines, et cetera. This brings me to why we are launching therapeutics. Many people say, why are you launching therapeutics? We're launching therapeutics because we're going to take this scientifically validated ayurveda to allopathic doctors who view it with a different lens. And they would not view it with [indiscernible], they would view it with action biochemical parameters. Does the blood pressure come down? What is your cholesterol level? What was the level of your HDL, VLDL before and after medication? So why are we going there? What happened to the earlier doctors. The earlier doctors have always believed in us. As they said, you don't need to preach to the converted. We don't need to preach to ayurvedic doctors who already view Dabur extremely high. What we need to do is actually preach to the people who have a few questions in their mind whether there is science backing the ayurveda. And the answer is yes. It's univocal -- it is yes, yes, yes. Dabur has the best science in the country when it comes to herbal medicines. It has one of the finest research R&D centers, 3 of these fine gentlemen are here, 2 of them are my old colleagues as well. It just so happens through -- its serendipity, it wasn't planned. We are all -- we are 3 -- we are ex-Himalayans all here together, spearheading this. And Dinesh is my new friend, we ride together. While a lot of this -- you're reading this I didn't want to make it a presentation where we all would -- I would want to talk something a little slightly different from what you're reading because you already are reading this, you have the logic is there scope to build expertise. And these are the clinically, [ tactically ] correct terms to say to a group of people who are watching. But the fact is that we are going to be working on getting ayurveda to the next level across India when it comes to validation and we're going to dial up the science question. Now what is going to be the spin-off on Dabur's business? When people start to view Dabur as a scientific company, all the offerings are ours, everything we make takes on a new -- it gets a halo effect. So we are working on Dabur therapeutics, which is one of the prime reasons that Mohit spoke to me and he asked me, in fact, he says Philipe what do we need to do to dial up science? I said we need to go to the people who do not believe in the science behind ayurveda. They know that ayurveda has some science, but we need to prove it to them and actually demonstrate back to them. Also yes, Sorry, [ Jona ]. Thank you. Also, the entire world knows that long-term medication has [ some ] side-effects. There are several chronic disorders healed. It's not a question of an either or, is it allopathy or is it ayurveda no, it is both. Doctors are recommending holistic medication, holistic treatment. Today, it wouldn't be take two and call me in the morning. It was one of the oldest things in the world. Take two tablets all be in the morning if you need something. Now they recommend lifestyle changes. They recommend yoga, they recommend ayurveda and they recommend nutrition as well, along with their prescription. Their prescriptions are longer one. And that's exactly where Dabur's scientifically research health care fits in. And unless we go and talk to these people and these doctors and explain to them the science behind Dabur, dialing up the science question is going to be a bit difficult. But we are doing that. We are in the thick of it, and you can only hope to see it getting bigger and bigger. And one fine day, I promise you, you'll be extremely proud of the way the Indian system of medicine is accepted across the world. And I believe that lies on companies like Dabur to do that. Thank you, [ Rajiv ]. What's happening in the healthcare market? Now this is what we call the market size and the investor snapshot which takes everyone's smile. It's a INR 30,000 crore market. Where are we? We are present in all the categories. Lifestyle OTC, dermatologicals, cough and cold allergy, liver and gastro care, Dabur has offerings in all these categories. We are present in all of them. Next, please. The health care vertical has [indiscernible], and I'm not going to go into great detail this is just to explain to you what we have. We have the health supplements, which is chyawanprash, glucose, honey, the big ones. We've got the OTC segment, which is Pudin Hara, Hajmola, et cetera. You've got therapeutics, which has just been launched. I'm going to talk a little more about that, and we've got the jewel in the crown ayurveda, which is our core. Which is the core and the reason for Dabur's being, it's pure ayurveda. So these are the 4 verticals. We look at the health care performance snapshot. Thank you, Rajiv. We've looked at the [ CAGR ] over the last 3 years at 9.3%. And the health care vertical in the pandemic shot up to contributing to 38% of Dabur's turnover. That was because of the increased need for health care products. Chyawanprash went through the roof, honey went to the roof, glucose, all these products started to rise. Tulsi drops, all these products sold. Now we've come down to -- as we said, there were 3 -- there were 3 worlds, pre-COVID, COVID, and the world after COVID. So we've come back to the world after COVID, we have 31.2%. Now are we proud of some stuff? Yes, we're very proud of some stuff. And I believe one should be proud. When you talk about how we are leading in certain categories. One should be proud, we are an Indian company, we are proud to be here. In Honey, we are #1, kudos to the people before me who have done this fabulous work, I can only bow. And Chyawanprash we are #1, well done again. In glucose we're #2, and we are a late entrant, but we're already #2. We'll get there. In baby massage oils while we are #2, we have within a hair's breadth of #1. But when you talk about ayurvedic baby oil, we are #1. And digestives, we are a clear #1 with Hajmola, clear #1. In ayurvedic cough syrups, we had a clear #1 with Honitus, and we're proud of that. We're very, very proud of that. And ayurvedic generics, are jewel in the crown, we are #1. But we do not have syndicated data for that. So that's why it's in orange. This is our internal data. That would be our #1. Thank you. Gains in market share. Now while one might say that it's a very small gain in market share. But when you're at this kind of size, this gain in market share is significant. But we have a whole lot of initiatives that we are planning to grow this even more and increase our market share as well as increase the brand size. As Mohit has already spoken about, power platform -- sorry, from a power brand to power platform. Honey, We don't have data for the past, but to be at 56% of the honey market, I would say, welcome to Dabur's world of honey. And we have certain very interesting initiatives, which I will share with you in the next couple of slides. I hope so far so good, great. So we are still [ down ]. What happened -- it moved. Okay, fine. Yes. Honitus, we moved from a 14% market share to 19% which is a very, very big jump, and we are #1 today. Hajmola, another brilliant performance from 47% to 53.0%, kudos to my colleague, Ajay and Rajiv and the team who have really grown this and under Mohit's guidance, super, super stuff. Makes you feel good. Now we look at the vision for health care. What happened to the vision? We moved it [indiscernible] yes, okay. I thought we're going to begin with the end in mind. So that takes away the standard, right? Okay. Now I am not going to touch on too much of [ brand ] because Mohit has already covered that, moving the power brand to the power platform, but I would like to make a few points on the slide, right here. Thank you. You've seen all this that we are launching a whole lot of line extensions catering to a whole lot of different conditions such as if you look at iron deficiency, is very, very big in India today. And a product like [ Khajurprash ] has a tremendous amount of scope. It has a great amount of need. We believe that these are need-based products. And the other one, which is going to be for improved heart health is also in the pipeline, [indiscernible] now this -- yes, we moved already, all right. Fine. Okay. I know I've got -- Ankush you cannot keep looking at me like that. Thank you I'm just kidding. We have 2 responsibilities: One as a market leader to grow the market and the second is to deliver business to our shareholders. Now when you're talking about what we need to do as a market leader, we need to take on the whole [indiscernible] that halo and say that we are going to educate India about honey being a super food. It is a super food, and not many people know that honey is a super food. It has a wide range of benefits that people don't know about. People just generally say, "Well, honey, what's honey. It's a sweet thing. It's not really a sweet thing. It has -- it helps in weight management. It helps to improve stamina, enhance immunity, nutrition. And therefore, we are launching a variety of products, which are actually going to -- which are actually going to cover a lot of these aspects. Plus it's going to be upon us to raise the awareness among Indians that this is a super food. I don't even touch up about what we are -- we are also extending into breakfast, I didn't see, you would have seen them some of the packs outside there, so I won't spend time out here. Okay. All right, that went too fast. Yes, one more back, please. We have what is called the Dabur world of honey. We are not just one honey in multiple [ SKU ] or in multiple packagings. We also have the Sundarban Honey, we've got honey, which has been sourced from Kashmir. We've got pure organic honey. I do believe this world of honey is a Dabur thing, it's the Dabur world of honey. Welcome. Next. Thank you, Rajiv. Once again, it's already been covered by Mohit. This is extending the power brand Hajmola to the power platform by launching Mukhwas by launching Hajmola candies Imli as your Imli Goli's, et cetera. It's going to be a wide range of products that are -- they are called JLT products, just like that. Next. Yes. Our #1, cough syrup honey Honitus. This is going to be promoted -- very unique style available across the country, OTC, whereas through my therapeutics division, we're actually going to be talking to doctors about the sugar-free version, which is generally prescribed by doctors. So we're going to be talking about Honitus to doctors. And I'm talking about doctors of modern medicine. We have [ hot sips ]. We've got lozenges, we're going to have sugar-free lozenges and there's going to be a whole range of Honitus, which is going to be promoted through multiple channels. TV advertisement as well as ethical promotion. Like I said a little earlier, we're going to be dialing up on the science behind Dabur's products. We're going to be talking about the science. Mohit has already covered this. We're going to be speaking science to the people of India. So there is serious science behind Dabur products. And that is what builds the credibility of the Indian system of medicine. People believe in the Indian system of medicine, they want to see the science behind it, and that is Dabur's responsibility, which we plan to do. For example, it's a 3x immunity action and we actually have research, which proves how it's a 3x action. Number one the cough syrup, our #1 [Foreign Language] oil as well as glucose with a certain change in the formulation, we give our patients extra glucose in every step. Next, please. These are the new categories that we are entering, which with the help of the team, I'll just be spearheading. Baby Care seems a very innocent little market to enter, very small market, not really. Baby personal care is a INR 4,200 crore business, than baby hygiene is INR 7,200 crores business. Now while it seems very simple and very innocent, there is a very deep business logic behind this. It is a perennial business. And even during COVID, my earlier experience taught me that when people [ scrimped ] on every possible thing good to happening, Baby care continue to [ drive ] and grow. And Dabur has the [indiscernible], Dabur has as the products, we're going to take it -- we're going to be launching this entire range of products, which I will cover in the next couple of minutes. Do I have 3 seconds to go? Okay. Because I just got 100 slides more. Why is Baby care so important to Dabur? Dabur needs to own every stage of a consumer's life and be there to support them, right? From the first part, Dabur should be present, the first part is given the Dabur Baby soap, the first message has to be a Dabur baby massage oil, the first diaper has to be a Dabur, the first [ anti-diaper ] rash cream has to be a Dabur product. The first little digestive tonic has to be Dabur Janma Ghunti, it has to be Dabur all the way. And as the child grows along, Dabur is there to support throughout, right? Chyawanprash to the [ Vitas ] and all the other products. And as they grow up, you use the toothpaste, et cetera. So the point is to target every stage of consumers' life and be a partner in health care with them. Then you have your juices and you got your foods and you got your corn flakes and it has to be Dabur on the breakfast table, it's got to be Dabur in the honey. So sorry, I'm taking -- I'm talking about certain things which my mind is going to talk about. We got to be there right from breakfast to dinner and right from check-in to checkout, as I say all every step. The point is if you want to build value with people, the strategy is to enter the consumer's heart during an extremely vulnerable time when the first child is being born. That is when you enter, when you enter, those brands stay with people for life. Thank you. This is going to be a new range of Baby care, which is going to be launched, not a single advertisement, only exclusive promotion through doctors. And I've done a lot of work in this area. And many people ask, why are all Baby care companies not doing all that great? Why is it a 4- or 5-year phenomenon? And the answer to that is your consumer exit the category every 4 years. So if you've sunk a whole lot of money advertising that after 4 years, you want to start advertising again for the next guy. But Dr. Coelho at Lilavati Hospital, who delivers 300 babies a month is permanent. And when she says that Dabur baby products are very good products, use them, that is permanent. The little nursing home in the village, which has 150 babies being born there. That is the place to target. Those people never change, and when they start to -- they start to recommend Dabur, you have a perennial brand being built. Now -- can you go back on that thing? Yes. Another question, which may be in your mind that -- so is it just a business initiative? The answer is no. People are looking for scientifically-validated baby products. Everyone needs a scientifically-validated baby product, and we have a range which are backed by serious science Thank you, Dr. Pra. You made, I think, the earlier Baby range and now, you are doing this one for us. Thank you. Yes, next. Now, we are good. We have entered the Tea market. As Mohit rightly pointed out, not the entire Tea market, but the value-added Tea market. Tea with benefits, and you will see a range of teas, which will slowly come out, that cater to health benefits and not just that tea drinking. I do hope that you all have had a chance to try this, and if not, we hope -- I think they're going to be serving -- are there serving our tea our there? Yes, they are? Hopefully good, okay fine. That's good. Yes. Now we're going to talk about Therapeutics, I think which brings me to the last two points. How much time do I have?

Five minutes.

Five minutes, yes. Okay. Now this is a market which is INR 200,000 crores, and as you all know, all leading companies, Sun, [ Almebic ], everyone's in this market. And there is a whole lot of products that Dabur actually has to plug these particular therapeutic segments. We are present in cardiac, we are present in anti-infectives, we're present in gastrointestinal, we are present in antidiabetic. We simply haven't gone to the doctors and told them that we are present in this. So when we actually started and did a soft launch of Therapeutics, they said, what took you so long? We've been here. We know about Dabur, why didn't you to bring these products to us? So now we're doing that, and we have a team of around, what, 500 people, which we're going to grow to about 1,000 people. And these folks are going to be addressing the pure-play therapeutic prescription market for Dabur. That is dialing up the science. Our reason for being, have a team of well-trained professional medical representatives that dial up science, enter the INR 200,000 crores prescription market, build business relations with healthcare providers, doctors, consultants, et cetera. Also, establish a strong presence in the Baby care market and expand into newer therapy segments going forward. Next please. Thank you. So who are we covering right now, immediately as soon as we've launched? There are about 72,300 doctors, out of which 7,000 are dermatologists, 15,000 gynecologists, 12,000 pediatricians and about 16,000 consultants and MBBS doctors. Plus, we also have Ayurvedic practitioners who practice mixed medicine. There are about 22,000 of them. So this is our initial. What are these folks going to be promoting? They're going to be promoting our Baby care range, and they're going to be promoting our branded ethical range. Yes. And I've come to the last part of my presentation. So it's outside, we've left them out and I'll circulate them. You can have a look at some of the visual aids where we actually bring -- we demonstrate science talking Ayurveda in the modern medicine language. Those books are lined up, though you can have a look at them, please. And this is our jewel in the crown. This is our, who we are, who we were always, and it's -- I've saved the best for the last. This is Dabur. This is the heart of Dabur, and it's -- let me tell you, the heart of Dabur is beating very strong. We are addressing -- we're going to grow this category by addressing gaps in the current existing range, which are a few. We're looking at a Super specialty Gold range, medicated oils, Ghrita's capsules, we're going to put traditional Ayurveda into modern dosage forms, acceptable to new age people, and Dr. Prasun is going to be sparing that. We're looking at Kadha in tablets, we're looking at Churna in tablets. An easy way of taking a difficult form of medicine, a very easy way of taking it. And of course, already touched by Mohit, premiumization. Organic Honey in Jars. Our world of honey, as we say. This is our world of honey. Sundarbans Honey, Himalayan Shilajit Gold. It's just won -- I think this won some award recently for packaging. It's brilliant packaging. Good product, too. Branded Ethicals, Honitus. This is our new range of Pure Herbs. We also have Functional Juices as well. What happened to my vision slide. Yes. All this is going to take us to INR 5,000 crores over the next 4 or 5 years. Generally, people are a little hesitant to talk about where you're going, so I believe it's okay to put your money where your mouth is. And see if we're going INR 5,000 crores, we're going INR 5,000 crores. You can take us up on it, you know? Take us up on it. Try us.

[indiscernible].

Yes. I hear that. So I get to sit and just watch? Okay. Yes. Sorry?

[indiscernible].

We get this. We'll get that Mohit. We'll get that. Yes. Ain't been a mountain too high. Thank you very much. Thank you for your attention. Thank you for your time. Thank you for coming out, coming here. Thank you. God bless. Jai Hind. Thank you.

Thank you, Philipe. That was delightful. Now I would like to introduce Mr. Abhishek Jugran. Abhishek started as a management trainee in Dabur, worked in Dabur India and International for a decade. Post that, he joined Coca-Cola and worked in several sales, marketing, general management roles. He served as Chief Commercial Officer, India in his last assignment with Coca-Cola, before rejoining Dabur. He's currently looking after HPC, Foods and SAARC business. Over to you, Abhishek.

Thank you, Gagan, ma'am. Good afternoon, everyone, and once again, a very warm welcome to the home of Dabur in the heartland of Bharat, where we are. So a warm welcome. Over the next 15, 20 minutes, what I'm going to take you through is a bit about trends, how the consumer is changing over this period and how our strategies and our portfolio is moving in the right direction to capture that growth. And we'll talk about some of the key growth levers which will unlock the potential and the growth that we have. If we see and we -- and Mohit did talk about and then Philipe talked about the changing The Shining India and how that is changing the consumer, and in his needs and his preferences, few of the mega trends which are shaping the industry and how we are building our portfolio, and our strategy is to capture the growth. The first one is the affluence, which is leading to premiumization. So -- yes. Leading to premiumization. So if you see our investment and our portfolio change, it's depicting that, and also our channel where we are investing. So as Mohit talked about, modern trade and e-commerce has moved from 12% to 13% to a 22% for Home & Personal Care, which talks about we are following the consumer needs in the right channels that they are. Health and Wellness, no need to talk about it. It's a global trend. 60% to 70% of consumers trust natural products and trying natural products. There was a news yesterday which talked about 60% of the new Shampoos launched in the market over the last 2 years, talked about natural products. So the second -- the third trend is obviously the rural moving to urban and the Tier 2s are becoming more important. So how we build a portfolio pack strategy and route to market out there becomes very critical for us to cater to the consumer out there. We all know it's an omnichannel world now. People look digitally, by offline, go off-line to buy online. So we are leading that to invest for the future across channels, and that talks about our e-commerce growth. The people -- the consumers are willing to try more, right, new products. So you see small niche players, D2C players are growing, consumers are wanting to try new products. So innovation becomes very critical, and I'll later talk about how our innovation is rooted in new consumer trends. As consumers are wanting to understand their products better, know more about it, what goes inside it, so our superiority on our product and what goes inside it becomes very important. And I'll talk about how we are working on improving functionality, strengthening our claims and delivering superior products. If we move forward, these are some great trends for which HPC, the Home and Personal Care division, is really poised to capture the growth. If you see the first point, the consumption intent of consumers over the last 3 to 4 years has really gone up from like a 47% to 70% of consumers wanting natural Ayurvedic products, not just in India, globally. Even more important for our categories, if you look at Hair Care, Oral Care, Shampoos, where not only their intention, but consumption is moving towards there. A big example which Mohit did talked about was Oral Care, where if you see, the penetration of natural Oral Care products has moved from 69% to 74%. So 70% of households now are trying Oral Care natural products. The market is going to move there, the market is moving there, and I think we've got a very strong portfolio to capture that growth which is there. And the other trend, which I want to do talk about it's not just 30-plus or 40-plus. The new consumers, the young consumers are over-indexed on natural now. So the new consumers, which are coming, they want natural products, clean products, they want to understand what's going inside their products. So I think we are working towards all these trends to capture the growth. Moving ahead to how us understanding this consumer better and executing our strategies is leading to. If you see from '16 to '20, we were growing at a 5-year CAGR. I think we've accelerated through a 9-year CAGR over the last 2 years. In quarter 1, we are doing double digit. That's our aspiration for the business. HPC contributes to 50% of the Dabur business. And then you see our mix. There's Hair Care, Oral Care, Home Care and Skin Care. Over the last 3, 4 years, we really accelerated, in a good way, the mix. Two words, Oral Care and Home Care, which is great for us. They are large categories with strong and large profit pools, so we are moving ahead. This, I think, again, Philipe did talk about and then Mohit talked about, but this is a strong foundation that we have across categories with consumers loving our brands. So if you see, Perfumed Hair Oils, which is very strong in the Northeast and West of India, we are #1. Overall, Hair Oils, we are #2. In Bleaches, we are undisputed #1 player, Rose Water, undisputed #1 player. In Air Fresheners, which is Home Care, and Mosquito Repellants, we are strong #1. Hair Care, we've really accelerated over the 3 to 4 years with the power platform strategy that Mohit talked about. I'm really happy to share in Oral Dentrifice, we used to be #4. We move to #3. Recently, we've become the #2 player in India. So I think there's a huge -- it's just a testament of how our Ayurvedic superior products and positioning is being loved by our consumers, and I think we are talking to them being more relevant about how we talk to them, which they are resulting us in share and volume. Really proud of this slide. I think this shows the progress in HPC... [Technical Difficulty] Are growing at a very fast pace out here. So, 14 brands which are INR 100 crores and plus, 2 of the brands at MRP value have crossed and joined the INR 500 crores club in India, which is Vatika and Odonil. And we've got 2 megabrands in Dabur Red and Dabur Amla portfolio which are INR 1,000-plus crores. So strong foundations across categories. And if you see this foundation from a consumer, customer lens, the penetration increase is the big game, right? We want to -- that's our vision, Every House Dabur, Ghar Ghar Ayurveda. So 3 out of 4 households today are using a Home and Personal Care product in India for Dabur, so -- and our penetration increased from 70% to 76%. So we are at the top of the pyramid, the middle of the pyramid and strong at the bottom of the pyramid, only then can you reach a penetration level of 76%. From a distribution perspective, I think that is one of our strong strengths, how we execute and go to the market. We are present in 7 out of the 10 FMCG outlets in India, so I think that's a huge strength for us. And now, science behind that, it's really enabled how we are executing the picture of success in the market. Is this going to add another strong growth lever for us? And which has resulted in strong -- these are subscribed categories for Dabur. We gained 142 basis points of market share, and which has not just come from urban or rural. It has come a very balanced share gain across urban and rural, which means we are winning. We're getting stronger with our brands with stronger positions to capture higher growths. If you look at the first slide, and it's not me, it's the team before me and how under the Mohit's leadership, which is -- made this possible. If you look at Toothpaste, we've gained 137 basis points from '19. In Hair Oils, we get 167 basis points. In Shampoos, 200 basis points. Mosquito Repellents, 350, and Air Fresheners, 40. So there's strong gains across markets. Especially in Oral Care, it talks about a 51% penetration, where there are markets where we become #1. There are markets as a brand Dabur Red paste in Odisha, in Tamil Nadu. Big, large markets like Andhra, Red paste has become one with penetrations going 80% to 90% from a household perspective. So you'll see strong execution gains, 8.5 lakh plus outlets added in the Oral Care business. A lot of brands reach 8.5 lakh outlets after being existing for a long time. So 4 lakh outlets in Hair Oil. So strong execution gains backed by understanding consumer trends. Coming to a few highlights, which I would love to share with all of you that we are really proud of. Next slide, Daniel? Yes. So Dabur becomes the #2 player in Oral Dentrifice. Every second household in India today uses a Dabur Oral Care product, so -- which just gives us so much a strong foundation to increase penetration and grow from there. In hair, Dabur Oil, we've -- like Mohit talked about, there was a period during 2010, '11 to '16 where our shares came down to around 12%, 13%. We've been able to gain 5, 6 share points over the last 4 to 5 years, making us very strong brand in Hair Oil. And Vatika joins the INR 500 crore club, which internationally is a mega brand for us, which is at INR 1,500 crores, I think, globally. And we're going to lift and shift as the consumers today are changing, and you'll see a lot of Vatika coming into the new age channel. And now, it's reached that stage to scaled up. Vatika Shampoos achieved highest ever volume and market share. We will become 7% market share, but you need to understand our strength is again North and East out here and West, there are markets where we become #2 in Shampoos. So in UP, which is 1 of the largest markets, we've got a 15 share. Madhya Pradesh, we've got a 17 share. So some strong performances, some reasonably very strong numbers out here. Gulabari joins the INR 200 crore club. Again, fantastic brand, very differentiated. No other brand like that. I'll talk about how we're growing this brand further. Bleaches, we are the undisputed the #1 position. Odonil joins the INR 500 crores club, one of our star performers last 2 years, growing 20% plus for us, so exceptional performance with a lot of innovation driving this growth. Odomos continues to hold its #1 position. I'll talk more about it. These are the growth pillars. Which we'll work towards the strengthening of the core, innovate our brands, execute with excellence and regional insights for speedy execution built on purposeful brands, ensuring our future portfolio. So I'll just talk quickly about what we are doing to stay more relevant. These are big influencers in India, super blockbuster stars in India who really are loved in India. Over the last couple of years, we've worked on 15 or 16 of these mega campaigns to make our brands more relevant, more loved. And some of the clutter breaking loved campaigns, I'll showcase in a couple of minutes. Moving to the point which Mohit talked about, we are raising the bar on product efficacy and superiority. We understand it's important our products are rooted in Ayurveda and very efficacious. We are getting science behind it, we're getting strong claims behind it. We're putting better things inside it with the help of the great R&D that we have to make our products superior and more loved. A few of the examples, I would love to play this ad again, we work for 2 to 3 years on these claims. Prasun is here to make our products more efficacious. And this is how we got it to life, by taking the biggest -- one of the biggest celebrities in India to talk about science and Ayurveda together in a very likable way to the consumers. Can we see the ad, please? Yes. [Presentation]

That's one example. I'll talk about Amla again, a power brand for us, how we strengthened the positioning on stronger, longer beautiful hair, thicker hair by 2x stronger hair. Can we see the... [Presentation]

There's also another insight. When we went to the market, we saw the market shares were a bit stagnant. There were a lot of other amlas which have come and obviously, the Dabur Amla consumer mind, we are top of mind. A lot of me-too brands which were there. So Sasta Amla, and they are sold Dabur Amla. So we got that insight and a superior claim rooted in the strength of our Ayurveda and great product, which really worked for us. I won't play. So we've got now a very strong functional oil, and this is the beginning of -- movement of us into some strong claims on hair. We are working on various other products, on functional Hair Oil. So it talks about it's clinically proven to grow your hair in 2 months. I think it's a fantastic product. People who've tried it are really liking it initially. Dabur Gulabari is talking about [ 8-hour ] hydration. Mohit talked about. You know, we are 99% mosquito protection versus the LVP that we use, which is 70%. So again, a very superior product which consumers love for so many years. The other part is constantly, we have endeavored to making our-- packaging more relatable to the young consumer, making it more aspirational. So you've seen over the last 3 to 4 years, a lot of these packages being changed, right? As consumers change how they buy, what they do, where they consume media, we got to be there. Mohit did talked about 25% to 30% of our spends are there. So the kind of creatives you got to do there, the kind of content that you got to make there has to be very different. Some of the work that we've done, which this one Amitabh Bachchan work. It got 8 crore views in the last 6 months, so we're really proud of this work. It's long content, but people didn't skip it. It was the highest, unskippable and engagement rate. So let's see this ad? Yes. [Presentation]

Yes. So that's Desh Ka Lal for you, and [ rooted in ] strong Ayurveda scientifically proven. And what we are promising the normal consumer is if you switch from an ordinary toothpaste to this great product, you can enjoy, right? You can have Ganna, and those lovely things in life you can enjoy with great products like Red Toothpaste. Let's move forward. Influencers, those are mega celebrities and influencers. But today, again, 3 or 2 out of 4 millions are influenced by -- are following some one or the other. So we are working towards big influencers, micro influencers and nano influencers. So a lot of our work is around building this for the new digital TG. Let's move forward. Yes. Mohit had talk about it, and I'll just briefly tell you. Oral Care, Hair Care, Shampoo, Home Care, Skin Care, we've got great brands, the strong consumer preference. We've already moved most of them these categories, which now will be growing. Red has got expanded into the Gel and Whitening segment, with Bae Fresh and Charcoal being introduced there. We've just launched cooling hair oil, Vatika Neelibhringa in the Ayurveda segment. Shampoos, we are working on, and we just launched for hair fall solution and conditioner and masks, which are there internationally. We talked about we're going to get to India. Home Care, we've launched a lot of new products, and you'll see a lot of them outside, which you must see. Entry into LVP and a lot of formulations. Skin Care, working on body lotions, we have washes, toners. In our Salon range, we've introduced pedicures, manicures, which are doing really well. So we are addressing -- the addressed -- the market which used to function in HPC was INR 49,000 crores, which is now moved -- INR 32,000 crores, which has moved now to INR 49,000 crores, which is 1.5x. So we see contributing in a big way to capture our growth. Mohit talked about from power brands to platform, and this is what has happened already. So you've seen that Red Bae Fresh is launched 2 months back. We got Pulling Oil. We'll be contemporizing an upscale packaging for the consumers. Amla and Vatika. That's Gulabari. We've launched with Aloe, we have our premium toners, we've launched a body lotion. There's a new body wash that we've just launched here. I think we'll be able to show you. It's just going for launch, in something that we are launching next -- this month, both body wash and soaps for Gulabari. Our Odonil, we have extended into aerosol, gels, zippers, premium aerosols, water-based aerosols and working on diffusers also. So strong innovation is coming. Few of the adjacent categories that Mohit was talking about, I'll play. This communication is starting from tomorrow, so I think you are the first people to see the long edit of this. We started this in India, Pakistan match, which just happened. We launched this out there. But we've not played the long ad out in media, so here's the preview of the communication. Daniel? [Presentation]

Yes. So that was for Gel. We just launched a cooling hair oil for the masses, for the rural market. So that's, I think, is different, how we're communicating out there. So again, both these products, we've launched some initial good responses, encouraging responses. Let's move forward? Yes. [Presentation]

Execution, I think this is one of Dabur's strength which is there, and we seem to be getting better and better. Huge improvement in our numeric distribution, which is there. And how we execute in the market, you see very strong, that's internally. Mohit talked about it, how we measure our execution, so -- which is going well. The other thing which is happening is we've created 200 to 300 picture of successes. So the back end is very complicated. For the salesman, it is very easy. Like Mohit talked about, we've got different routes. For a single salesman in a metro A class, he's going to execute top 20 SKUs, in B class 15, and in rural or C Class 10. So we're very clear on how to prioritize and build a picture of success and what is the assortment we need to have, which is digitally enabled. Okay, let's move forward? Yes. So Regional Insights for Speedy Execution. Mohit talked about it. What does that mean? It means segmentation, India is different, states are different, so we localize in a very big way. We've got Kartik Aaryan in this part of the world, we got Vijay Deverkonda for South. And not just communication, it's packaging, it is the formulation also, it is what kind of products we have. So it's the whole 360 degree around it. We're all aware of the 3 Indias, but we have a very clear strategy to recruit, increase recruitment at the bottom of the pyramid. Have bridge packs in our portfolio, which is, therefore, the strong middle class which is coming, and how do we have the right packs, brands and the new age formats for the top of India. If you look at premiumization, some of the examples in Hair Oils, Ayurvedic, Cooling. We've come up in with, in Skin Care, we are working on you getting, UVeda back again, in the Ayurvedic space, our charcoal bleaches organic growth, Odopic charcoal cleaner, gel pockets. A lot of work happening, segmented launches of a lot of these initial successes, but that's the thinking behind it more than what we are doing. Again, very segmented portfolio across channels, traditional trade, modern trade, e-commerce. If you see across categories, the kind of packs we choose, how we promote them, how we execute them, how we display them, it's very clear in our mind how to segment and move ahead on this. Let's move forward. Yes. So with that, I come to the end of my presentation. I think I've done well on time, which is strengthening the core innovating power brands, executing with excellence and a segmented approach to ensure strong ROI on money that we spend, build on purposeful brands and our future fit portfolio. So we're going to step up the momentum. You've seen we used to be a 5% CAGR business. We moved over the last 2, 3 years to a 9% CAGR. We aspire to grow double digit. Quarter 1, we've done that, so we hope to continue to drive the business. Ambition is to reach INR 7,000 crores in the medium term, grew ahead of the category, win across categories, win market share. And most importantly, to the affluent India, how do we premiumize, which will also help us increase our gross margins. So with that, I'll come to a close. Thank you.

Thank you, Abhishek, with very insightful presentation. Now we will have a presentation on Food and Beverage vertical by Mayank, Mr. Mayank Kumar, Vice President, Food and Beverage. Mayank joined Dabur as a management trainee and worked in Sales, Oral Care, Health Supplements and various other categories before getting inducted into Foods. He has rich experience of Food and Beverage category for last 8 years. I now request Mayank to make his presentation.

Thank you, Gagan, ma'am. Good afternoon, everybody, and you must be feeling very hungry. So I'll take you through the capsule on Food and Beverage, cite the context right for you. There are a lot of Real juices outside. Food, I could not make for you, but maybe a little bit of condiment you can have with your regular food. So going forward, just to cite the context, right. There are two categories that we play in. Beverage, where the key brand is Real. The promise to the consumer is providing healthy and tasty nutrition, so that's the core of Real. Food, we play with two brands. One of us -- one of them is our own and one is what we have acquired in the recent past. Hommade is, as good as home made, [Foreign Language]. And Badshah is king of unmatched taste and aroma, what we say is [Foreign Language]. So that's the context for you. In the last 4 years, we have grown the business by about 14% CAGR, moving from INR 1,000 crores to about INR 1,700 crores. Next. In the Beverage portfolio, the CAGR is INR 14 crores (sic) [ 14% ]. We are at around about INR 1,600 crores. And in the Foods portfolio, we have scaled up to INR 100 crores. Scaling up to INR 100 crores odd is a very, very important benchmark in Dabur that gets -- that gives a certain size to the category in a multi-category company, and you've become the top of the mind. So I think INR 100 crore is a good benchmark from where the categories I have seen in the past take off in Dabur, especially in a multi-category company. And in the process, we have consolidated our position as the #1 player in Juices and Nectars, gaining 360 basis points in value shares. We have moved from 56.7% to 60.3%. Mango drinks, which we recently entered about 2 years back, we have gained 1.2% market share. In the INR 10 portfolio, we have gained about 3.6% market share already. And there's a very heartening news because in this portfolio, as we become bigger, our efficiencies will become positive. We'll have a distributed setup, our cost to serve will go down, our efficiencies will go up and our gross margins will go up. And this is also providing us legs to enter into geography where we have not actually entered so far, which is a rural geography, which you will see very shortly in my presentation. And also beyond not. That helps us build the infrastructure, sustainable distribution model and brings down our overhead cost. So the strategic pillars on which we have been building this business. Again, 6 in number. Six is the magic number because boss decided to make 6, so we all fitted our strategy on 6. But broadly, it captures everything that we have been trying to do. So some of them were not fitting, but we were crafty enough to fit everything in this 6. So strengthening core is number one. Power brand to power platform is number 2. Expansion in Foods and out-of-home portfolio. Why out-of-home portfolio? Because if you see Real, it was typically built as an in-home consumption pack. It was a 1-liter pack which was very dominant, which is very unlike the Beverage industry. The Beverage industry, 65%, 70% is out-of-home consumption aided by chilled solutions, aided by distribution, in every nook and corner. Ours was not so. Our out-of-home portfolio was very low, and this is a portfolio now which we are expanding majorly. Fourth is focused on digital, which is a common theme across. Expanding and bolstering RTM, again, becomes very, very important for us as we want to enter into new categories. And because we are the leaders in Juices and Nectars, we need to take our offerings and delight the consumer in more number of geographies, in more number of outlets, so that's a quest that we are on. And last, of course, is profitability enhancement. Very important for this business, margins are thin, and therefore, we have to be doubly conscious on increasing the profitability for the business. On the first point, which is strengthening the core, 3 vectors to this. Continue delighting the consumer on taste and health. These are the two cores for Real, which is tasty and healthy nutrition, and the products that we have launched in the recent past is the Functional Juice, the heart health, the gut health, the boost immunity range in under Real Active, so that's one part of it. Coconut Water, we were the pioneers. We have extended the range to an in-home pack and to the extension of Coconut Water with aloe vera and lemon, so that's another offering which has come up. Third is the Real Range with aloe vera. Again, this is our alpha ingredient plus range, making real juices even more healthier by bringing in additional ingredients. Then we have got into the Rehydrating Beverage segment. Now, this segment has really taken off in India. We have just made our entry about a couple of years back in -- under the RISE initiative in Northeast of India, and we'll be spreading it across geography. The super fruit, berries and guava. I was telling boss yesterday, guava is the cheapest super fruit, and we don't know this, so that's -- and pink guava is even better. So this is the super fruit range which we have launched, and we'll build on super fruits range going forward. The Masala Range providing consumers, again, our different tastes, the taste which Indians are used. They have fruits with Masala, so that's what we did in the Masala range. And getting into the [ RNGS ] segment through soya and almond milk. Connecting and communicating with the consumer with a very purposeful communication, talking about unhealthy beverage because the whole trend of eating healthy has caught up with people. It was catching up with people. With COVID happening, it has really caught up with people, but there's still a blind eye when it comes to your beverage, choice of beverage. You have a salad with a Coke, you have a brown bread with a Coke. So there's a blind eye to the choice of beverage that you are having, and that's what we are trying to communicate to the consumer. Can you play this? [Presentation]

Yes. And one more communication I'll share with you is Coconut Water. [Presentation]

I have two more, but I think am I -- we are well placed? No. So I'll be within 15 minutes. Speakers prior to me took a lot of time, so I can't show you all my ads. But anyway, I'll try and show you Badshah. This is a new communication we have made for Badshah, so can you play? [Presentation]

Reviving the liquidity of Badshah, this iconic jingle, that's what we have revived. Getting into superior packaging, we already talked about this. Active moving into a prisma pack with better portability and better consumer experience, complete revamp of the Hommade range. And again, a complete revamp of the Badshah range. Now there's a uniformity in the packs, uniformity in the graphics, the logo has become more modern for our better communicate with the consumer, and that's what we have done. These packs are getting into the market. Some of them have already gone to the market, some of them as we speak, are going into the market. The second is, power brand to power platform. Again, Real Fruit are getting extended into two sub-brands, which is Real Health and Real Milk Power. These are the things that we have done in the recent past about 3 to 4 years. Juices and Nectar was there, got into Vitamin Boost, Masala range, extended Real to the bottom of the pyramid into drinks, PET, aloe vera, plant-based beverage, nuts and peanut butter coming under the Real Health range. And therefore, the TAM has gone up by about 7x or 7.5x, and our innovation rate for this category mix has gone up to about 8.7%. This is a figure for last year. It used to be about 2.3% in FY '19. Again, expanding into Foods, we traditionally used to play in a INR 400 crore category size for Foods, which was basically cooking paste, purees and milk, coconut milk. So that's the category where we were playing in. We are trying to get into a larger segment through strategic entry into categories which have been chosen with a purpose. So we have got into oil and ghee, spices through an acquisition of Badshah. Condiments, which is pickle, chutney and spreads, and we'll be getting into the RTC and RTE categories. And the branch that we'll be playing in, Dabur. Wherever the consumer is bothered about quality and trust, the brand that will play in the category is Dabur. Wherever it is convenience and taste, it will be Dabur Hommade. Wherever it is health and taste, it will be Real. So this is what we have done very recently. In the condiment space, getting into pickles, getting into chutneys, getting into a Hommade -- sorry, peanut butter. This is in the condiment space. In the RTC and the RTE and spices space, we have got into Gulab Jamun Dessert range, and we have acquired Badshah in the spices range. Oils and ghee, and we have the mustard oil range, we have the heart oil range. Now, these are all premium oil. These are not the regular oils because if you see the oil category, INR 30,000 crores, mustard oil category, INR 30,000 crore category. There's a loose mustard out of a tin or there is a fortune. Now the growing affluence in India, which Boss talked about, people, consumers are wanting better mustard oil. People are wanting -- and there's enough scope to segment the category. We have seen it happening in Personal Care. Through DTC brands, we have seen it happening in Foods. Foods, the story has just started, and this will keep on accelerating. People want better choices, the affluence is there, people want, therefore, things which are better for them. So therefore, strictly playing in the Premium Oil category and again, getting into ghee. The out-of-home beverage, as I told you, our salience was low. We were there in the INR 20 price point. Now we have extended and made real more accessible to the masses getting into the INR 10 price point, Mango drink fifth segment, INR 20, we have now the pet bottles, which are more -- which are better placed to serve the rural markets. And the Tier 3 cities, we got into milk shakes and the pet bottle in INR 30 to INR 40 range. So the whole portfolio has gone up and our salience of the out-of-home beverage has gone up by a 1,000 basis points. So that's what happened in the last 4 years. Focus on digital, 25% of the spend on digital. We are engaging with 100-plus influencers who are chefs, bartenders, nutritionist, lifestyle and moms and regional celebs and about 8% of the business coming from e-comm. Again, expanding our RTM. All this is real, always used to be a metro B -- A Class and B Class phenomena with this huge range coming in and we're getting into more price points, it's important to extend the distribution. And as we are extending the distribution, we are also establishing our exclusive network. So now we have 470 towns where we have a food exclusive network. We are riding on 940 towns and villages where there is a common network. As the business comes up in these towns, we'll be moving to an exclusive network. So that's number one. Number two, in the last 4 years, we have more than doubled our distribution. It used to be about -- and this is direct distribution that I'm talking about. Rural expansion have doubled in the last 4 years. Again, we were a very north-centric brand. Rest of India, we are heavily investing in terms of infrastructure, in terms of media investment and our saliency of rest of India has moved up by 800 basis points in the last 4 months -- 4 years. So that's where the strategic direction of the RTM is. There's a lot going behind it, but time does not permit me, but that's where we want to go. That's the strategic blueprint for our team. In terms of Badshah, we are right now concentrating in the core markets of Gujarat, Maharashtra and AP. Next step is getting into adjacent markets of Gujarat and MP and then move into other parts of India. So that's what the blueprint is. Right now, we are executing the first step, which has strengthened our distribution in Gujarat, Maharashtra and AP. And that takes me to the last, which is profitability enhancement. Four key vectors of enhancing profitability, a very distributed manufacturing to optimize freight as we scale up the drinks portfolio, this becomes very important. From north, we are already there in Central and East. South is the next step. A vendor of agnostic formulations and trying to indianize our variants, getting more and more fruit concentrates from India. That's number two. Number three, carton always used to be dominated by Tetra Pak. Now we have multiple vendors for carton, which is giving us a lot of headroom for negotiation. And last is, of course, operational efficiency, which, thanks to Rahul, we are able to achieve faster machines, low-energy cost using more biofuels. So that's what we are doing in terms of operational efficiencies. Coming to the last one, which is all this put together, the aim is to double the foods and beverage business in the next 5 years. So that's what we aspire to do, which is doubling the business in the next 5 years. Thank you so much.

I think that was on time.

Thank you, Mayank, for a very power-packed presentation. It is my pleasure now to introduce Mr. Raghav Agrawal, CEO, International business. Mr. Raghav Agrawal has more than 30 years of experience in International business. He worked in Hindustan Unilever in India and Unilever in global and regional leadership role. Mainly in Personal Care, based out of U.K., Europe, Middle East, CIS and North Africa for about 25 years. And he has also led P.Z. Cussons, U.K. Global operations in Personal and Home Care as PBC before joining Dabur in December 2022. He will now present the capsule on the International business. Thank you.

Thank you, Gagan. I guess it's a hard act to follow with absolutely stunning presentations from Mohit cross-functional team, Philipe, Abhishek and Mayank. And I have to say it's even harder to stand you -- stand between you and lunch. But nonetheless, don't have me for lunch. I'm going to spend the next 15 to 17 minutes, giving you an insight into the International business. It's an honor to meet you today and those joining virtually, and I'm delighted to present this insight. I believe you may not have had an opportunity to look into an International business. I hope today gives you that opportunity. So moving to the first chart. The International business represents roughly 25% and that in dollar terms at about $365 million business, about a little over INR 3,000 crores. To the next chart. And actually, this might give you an insight into where do we actually sell. And actually, we have a good, very balanced combination of what we call developed markets or hard currency markets and emerging markets. The #1 market sitting right at the center is MENA, which stands for Middle East and North Africa, a very big region, contributing to about 26% of our business. And there, as I will share shortly, we have many lead positions in India. The #2 market is actually SAARC countries, which, in many ways, represents the portfolio and the way we go to market in India, 20% of the business. The #3 market is North America, hard currency market, where essentially we have 2 parts to the business. On one hand, we cater to Afro-Americans through the acquisition we made more than a decade ago. And on the other hand, we cater to the ethnic South Asia, including Indian community selling over the last continent. The number fourth is Egypt. And I have to tell you, it's a fantastic business, a very strong business. We're in the top 3 Personal Care companies, one of the best-performing FMCG companies and one of the sought-after employers in that country, 13% of the total International business. The fourth -- of the fifth on the list is Turkey, also an acquired business, contributing to almost over 10% of the business. A brand called Hobi. The next one on this list is the Sub-Saharan Africa, a very large continent. It's the entire Africa below the North Africa, the grid mill that you see. And we operate in all parts, the East Africa, the South Africa as well as the West Africa. It's a very large continent, almost touching 10% of the business. And then we have U.K. and Europe. In many ways, it reflects -- it mirrors the way we operate in North America. And lastly, we also sell in a large number of countries, probably over 50 but that at the moment is less than 2% of the business. As they grow, we try to focus more on them. Next chart, please. And as a result, we cater and actually serve a very wide diaspora of consumers, of course, there is the Asian and Arab that sits in North Africa, Middle East cluster, there is the Afro-American, a nation cluster I talked about. Then there is, of course, the Turks in the Turkey cluster, the sub-Saharan African consumers, pretty much the native Africans. Then we have the Afro-European and Asian consumers in U.K., Europe, South Asia and East Asian consumers in South countries and Southeast Asia and also to a limited extent, East European and Russian consumers in the CIS countries. The categories we operate are very similar to the categories in India, but I have to hasten to add, Personal Care in International business represents almost 90% of the business. Therefore, we have significant strength in hair care, oral care, skin care. Health care and food is small at the moment, but they are also key growth pillars for us in the future. I'll talk a little bit more about them. You see a number of brands on that chart, the ones that are boxed are the power brands that we deploy from India. But I have to quickly add that Vatika and Amla are the 2 of the largest brands that we have in our portfolio. In addition, there are many brands in our portfolio that are, in some ways, unique to the International business, brands like ORS, which captures the -- which addresses the Afro-American and Afro-European and Afro community. Brand like Hobi, which is mainly in Turkey and a few other brands on this chart. Next chart, please. As you saw, Dabur's core is in the Herbal, Natural and Ayurvedic area, and it's even more apparent in the International business. Why? Because we compete with many global brands which do not have that positioning and we also compete with a number of local brands, we do not have that positioning. So whether it is hair oil, shampoo, hair cream, hair mask, oral care, depilatory, skincare jelly or health care, we have that herbal ayurvedic natural positioning which differentiates us from competition. This is one of our core reasons for our success in International business. How do we go to the market? Essentially, there are 2 models that we follow. One of the model is that we, in many countries, due to the way the consumer companies operate in the market work with a national distributor and the national distributor in turn serves the key channels like hypermarket, supermarkets, pharmacy, wholesale and discounters. And depending on the market, we go pretty much to every retail channel, whether it is Walmart or Target in North America or Lulu and Panda and Carrefour in the Middle East, or the pharmacy channels, Boots, Walgreens and Aster. Equally, we have another model, which mirrors somewhat like what we -- how we operate in India, where we directly distribute to these channels. Examples on the left side, markets like Middle East, North Africa, in countries like Saudi Arabia, UAE, we work with a national distributor. And examples on the right side are countries like Egypt and Bangladesh, where we go directly to the retail chains. Next chart. We have about 12 manufacturing facilities, 8 of them are owned by us as we were showing in the corporate chart out of the 22, but there are 4 others that we have in third parties and different geographies. And as Mohit mentioned, we, in some of these geographies, actually benefit from trade agreements. So UAE, GAFTA; South Africa, SADC; Egypt, COMESA; and Nigeria with ECOWAS that allows us to supply goods to many countries without having to pay import duty. The wide footprint of the manufacturing locations gives us a lot of cost advantages, a lot of flexibility and a lot of speed to market that allows us to scale up these businesses. And where we find it harder to justify investment, we work with third parties, and that's why we have a few third parties on this chart. I mentioned we have significant strengths in some categories in some markets, and this chart captures 3 of those countries where we are #1, #2 or #3 in a number of categories. Particularly in hair, you see many important positions. Actually, we do not measure market share in many, many other countries. And I would not be surprised if we have similar positions in many, many of those countries. It's just that we don't have the market share. And therefore, we have a very strong business when it comes to market share in these countries. I'd now like to walk you through -- peek through the portfolio that we have and the innovation that we have. The largest brand in our portfolio is Vatika and it is present across a number of categories, and we have actually built this business over the last 20 years. And in terms of regions, we prioritize this brand pretty much in every region. You see -- and it is this brand that gives us many of these strong market positions, #1, #2 in hair oil, in hair cream, in hair gel, hair mask, shampoo, henna. The household penetration in some of the market exceeds 30% and 40%, and that's very significant for this brand. Our strategy with Vatika has always been to deploy a lead celebrity and at the moment, we have signed up very recently a lead celebrity in MENA region called Dorra Zarrouk. I'll very shortly show you a campaign. And we use her and the GenZ influencers to drive the engagement of the brand. Our strategy is also to bring breakthrough innovation and ladder of consumers so premiumization and very quickly also show you some of the innovations we recently launched. And our strategy continuously with a wide range of products across hair categories is to actually expand these categories and these product lines across the large number of countries that we sell. Move to next chart. This is one of the innovations that we have brought in recently, which is oil in a shampoo and it performs better than all leading shampoos that we have tested this mix against and it is in line with the core of the brand, which is on oil. Move on to the next chart. This is another innovation that we have brought to the market, which actually is a 3-in-1 solution. The product can be used as a hair mask, as a hot oil treatment as well as a leave-on hair cream. So it's a very interesting product that we launched in the Middle East. Next chart, we have been catering to men for quite some time. But more recently, we have actually spiked up our mixes. The one on the left is something that has been launched for the first time with a two-ended benefit of anti-dandruff and cooling or anti-hair fall and mold as a hair cream for men. And on the right side, you see hair gel with varying degree of hold. So you see the number 3, 6 and 9 on those packs reflecting the varying degree of hold of the hair gel. Next chart. This is another new innovation, which is a 5-minute hair color, hair shampoo and interestingly in the shampoo routine, you can color your hair, both for men and women. And this is another interesting innovation. It's doing very well for us, which is the onion-led range, focusing on scalp nourishment. I'd like to now show you a campaign that we are running with Dorra Zarrouk. As I said, she's one of the lead celebrities in the MENA region in the top 3 with the 26 million following, which is quite significant considering the population of the region. Do have a look at the bottom of the chart where the ad is in Arabic. So if you would like to follow it through, do have a look at the bottom of the chart where there will be subtitles. [Presentation]

As you saw, she talks about using oil before shampoo as a market leader of oil in the region. We felt it is incumbent on us to try and grow the category. And that's why we find that while everybody uses shampoo, not everybody uses hair oil, therefore, she's talking about using hair oil before shampoos, and that's the core part of the message. Equally, we have a very powerful brand in Dabur Amla, world's #1 hair oil and like Vatika, it has also extended into a number of other product categories beyond hair oil, though hair oil remains the core of the brand. And priority-wise, we focus on this brand across pretty much every region. And market share position-wise, it is actually #1 hair oil brand in KSA, Kuwait and some other markets. And #2 or #3 in some other markets. And household penetration, again, exceeds 30% and which is quite significant considering it was coming from a region which probably didn't have that much of a hair oil habit. In a way, I could say that Dabur can perhaps claim to be a company which has, if you like, infuse -- induce that behavior of using hair oil in that part of the region. And our strategy, in some ways, we've always used the lead celebrities -- at the moment, we are using a celebrity called Heba Magdy, again, a leading celebrity in the region. And we drive the core of the brand for the proposition of long black hair or kalay, ghany, lambay baal as it's known in Hindi as well as anti-hair because it is thought to be a key hair problem, which especially the millenniums and GenZ encounter. And we have brought in some solutions on advanced hair. And we've also felt that it's very important to keep the hair oiling habit going, even though we have been the people who have actually brought in that habit and in some way, taught the Arabs to oil the hair to ensure that when it comes to the next generation, when it comes to their kids, that habit gets passed on. And we've also launched some pure premium oils. So I'd like to show you some innovations. This -- beyond the core, we have launched this range for 97% clinically proven hair-fall reduction for a long, strong and beautiful hair. You notice that Dabur Amla in the Middle East is different from how it is in India, it's in a carton pack, it's in a premium package sells at a much higher price point as well. And the next one is, again, a premium range on hair repair. On the left side, and on the right side, talking about clinically proven 50% improvement in hair root strength as well as 3x improvement in the hair growth rate. I'd like to now talk about this very interesting range called the Amla Kids range. But actually, it's not just the range, we have created this character called Amira. Princess Amira over the years. And there are many kids products that are out in the market and kids really love the character, they want to buy into the metal toy or the hot wheels, et cetera, or Barbie, et cetera. Moms are always skeptical when they look at kids products because they don't know what's inside. So what's unique to us is we bring the trust Dabur Amla brings to the moms, and they can trust the brand, whilst the kids love the character. We have created this lovely character. And more recently, we actually -- sorry, if you just go up for a second, we actually brought the character to life by launching in this very innovative packaging, which has done very well for us, in fact, it won some awards as well. So I'd like to show you this campaign, which obviously builds a storyline around Princess Amira. [Presentation]

So you see, it's a very engaging campaign for the kids. Equally, it drives the core proposition of long, strong hair. So it lands both very well in manner that works very well for the brand. And we have actually launched this range at a significant premium to the core, so it is significantly margin-accretive as well. Another interesting category, and very proud to see India has reached #2 market share, it's an amazing act. I was in Unilever and I know how hard Hindustan Unilever try to build this business. And to see that Dabur which started 20, 30 years later, has got to that #2 position is absolutely amazing. Taking a leaf out of the -- if you like, the Indian playbook, we have also taken on overall category for the last many years. And actually, we have taken it a little bit differently and a little bit further as well in different ways. We have built a full, if you like, spectrum of the category from the very base of the category, which is cavity protection and freshness to more evolved benefits. So protection against 7 dental problems, a red toothpaste proposition or picked up a hero and get it like Meswak and it is very prevalent and commonly used. It's a bit like Datun in India, Meswak in some parts of Middle East and North Africa. So we actually built a brand called Meswak on that very successfully, equally to more advanced formats like charcoal for whitening and also the kids range. So we built the spectrum, and this is a core focus across many geographies. And although we started out late, we are seeing some quite good growth and quite good success. So in the UAE, we are now #3 brand. And we are hoping that we will start to continue to build that position and grow a little bit like India way to build a very significant #3, #2 position over the long term. I'd like to show you some innovations in the oral category. So I talked about the base Meswak which is used for similar reasons as Datun but also some religious reasons, but we have now given it functional underpinning as well, launching a flow variant as well as launching an activated charcoal variant for super whitening. And this is a range which is 100% natural and organic, ayurvedic oil pulling mouthwash and no aerosol herbal mouth spray. Here is the kids range, which also comes with a little gift inside for the kid besides a brush. And finally, we have the charcoal range that I talked about. And note that we also give our toothbrush a bamboo toothbrush free inside that, and this is one of the key attractive features for consumers besides the sort of core benefit of whitening. I'd like to now show you an ad, which actually we are running in Africa at the moment. And I was talking about our differentiation on Herbal, Natural and Ayurvedic versus key competition and this ad in some way, underlines that. [Presentation]

So apart from the functional proposition of that being oil and that works very well, whether we other -- tooth paste, which I've talked about cavities for decades, the insight behind this was kids these days, they have started taking decisions on their own hands and they pester their parents and they pester everybody and they challenge everything. So that's the insight this ad works that it resonates with consumers as well as parents when they see this ad. Move to the next chart, please. Now one of the brands I talked about was ORS. I'm not sure any of you are familiar with it but it's an acquisition made more than a decade ago in North America. It caters to Afro-hair, the people of African Origin have a very different type of hair. We call it type 3, type 4 hair when we call out the hair in South Asia more type 1, type 2 hair, and they require a very different solution, particularly they're looking for hair straightening solution besides maintaining. It's a much harder job for them to maintain their hair. And therefore, this brand caters to just that. ORS, it is called, and we have a portfolio of products, although we are strongest in the hair straightening relapses, which is one of the key core benefits, and we are actually the leader in that particular segment for this target group. And although the brand was in a way, born in North America, in U.S.A., we have taken it since then to, if you like, South sub-Saharan Africa or U.K., Europe where we have people of similar hair type of similar ethnic origin. And we have built a significant presence in mainstream, and we sell to big customers like Walmart and Target equally to pharmacies like Walgreen and CVS. And our strategy is to continue to build that presence. And whilst our strength is there in some categories, we want to widen our portfolio to have a stronger presence in some other categories like naturals. At the same time, build the distribution of this brand and the portfolio in some sub-Saharan Africa. Here are some of the innovations. So this is a very recently launched innovation, moisturize and protect hair oil, CURL SHOW with collagen avocado oil for a stronger look-at-me curls. Here is another one, which is style and scalp long-lasting firm hold infused with castor oil and beeswax. And here is another one called MAX MOISTURE, it's actually doing very well for us. Supercharge hair hydration, the Afro-hair tends to be very dry as well. With rice water and electrolytes, this is a range doing very well for us. And here's another ad, which is about relax and restore with black seed oil. And I'd like to very briefly now talk about health care. It's a small category, as I mentioned, and in many ways, it's very similar to the way the category is, in fact, much smaller in that way in terms of breadth of the portfolio in India. And we have the intention to actually drive this across all regions. Move on to the next chart. At the moment, we are present in very limited number of places. And the reason very simply is that each country has its own regulatory requirement when it comes to health care products. And it's not often just a mirror image of a regulatory requirement in other countries. So to meet that, we need a lot of scientific work on one hand. Equally, it needs quite a long lead time to actually get there. But the beauty of this business is once you get that, once your brand is launched, once you have established a relationship with customers and consumers, it's an entrenched position. The barriers to entry are high, once you've established the acquisition, it's easy to build on it, and it's hard for somebody to take away that position. For this season, it is our intention that all the ones that are not picked on that map, we want to take them going forward. And we feel that we will have a very strong business long term with the health care portfolio. Badshah, although it's just about 9 months, one might say or 10 months since the brand was acquired, we took it on us as an International business that we will take it to where the brand can potentially travel. And we have certainly South Asian, certainly Indians living all over the world, and we have taken this brand. And we intend to actually continue to do that in U.S., Canada, U.K., Europe, also in MENA region and some other markets. Of course, the key focus is to launch it and make it available. It was already there with the previous owner in that way, but in a very limited way. And actually, not just that we find that whilst the brand already does a wonderful job on spices, it does cater to a certain taste profile. The products are certainly limited. When it comes to some other ethnicities, people of similar but slightly different origin, whether in South Asia or elsewhere, some of the masalas they use are a little bit different. Certainly, Arabs use a very different type of masala. So it's our intention to make region-specific products as well under the same brand. The word Badshah, the brand name Badshah is amazing, it does resonate in many other languages. There's a word called Pasha, for example, in Arabic, which is very similar in some way to Badshah in terms of the meaning and even sounding. So we think we can actually deploy this brand wonderfully across markets. And here is a picture from last month, 3 weeks. So we launched it in U.S., this is the Independence Day Parade in New York City. In the Manhattan where almost 200,000 people actually encountered and engaged with the brand when we launched it. Now I'd like to just spend a couple of minutes talking about International business as to what I believe drives the success of International business. And there are really 2 points. The first is local customization. So why do we believe we win? Why do we believe we have one -- we spend a lot of time locally customizing. Here is an example of a product called Hammam Zaith. Actually, more than a decade ago, the teams then observed that the Arab women go a lot to beauty parlors and the beauty parlor lady, I think, Abhishek, you were there, you launched it perhaps. Right, that they actually spend a lot of time and the beauty parlor lady would actually treat the hair with the hair mask-type product. So we actually took that idea and brought and created a product with a European partner, R&D Lab. I think it was in Italy or Spain. And we created a product called Hammam Zaith, which allows them this hair treatment at home essentially in a hot towel, within half an hour, they have wonderful hair, better than any shampoo and conditioner combination can ever give. This is absolutely the most trending product. Maybe the next time I'll come here. I'll bring some sample for you, you guys should take home. You're launching it here, so you can buy it. So it's an absolutely stunning product. And equally, another example of local customization is we launched -- this is just one example, but variance of products or within radian, which are locally relevant and there are a number of them which are more locally relevant for that market. Move on to the next chart, please. And here is another example, we even customize a mix. So making a case in point. When we look at hair oil, we may have a situation where, if you like, on the right side, the hair oiling habit is there. Oil is used prewash before shampooing or washing your hair. Typically, we'll have a high oil viscosity product. We will sell it at a premium price. And because the usage is there, we also sell in larger pack sizes. Equally, when we go to some markets where the habit is not there, and we think that a lower viscosity product, less viscose product may be more relevant and therefore, it can be prewash, but it is probably also suited for post-wash, it would typically be a more affordable price and probably smaller pack sizes. So we do -- the bigger point is customized as to what we feel the consumer and the market can take. And lastly, whilst we take a lot from India, we also believe -- I probably showed you through the Vatika example how the Vatika brand has grown through so many formats in the International market. But here is another, we saw with Fem, which is essentially in an Indian market, a bleach. We have taken it and actually taken it to hair removal cream. And once again, we've done that across a number of formats. And we've been very successful in some markets, we are #2 position or close #3 position. So we believe the way to win, our mantra for success is a lot around local customization. Next chart. And here is another example where I was talking about ORS brand in America into a number of formats. But when we took it to sub-Saharan Africa, we realized that some of these products sell at $8 to $10 price, and it's very difficult for a sub-Saharan African consumers to pay that. So we actually gave the same product application kit, which is about hair straightening to the sub-Saharan Africa, but we broke the kit up into a number of touch-ups. So it doesn't do a full hair job, but it does give you the ability to titrate as per what the need is and breaks up the kits into 2 kits per box or 6 kits per box or 12 kits per box and actually brings down the price per use as well. So we kind of customize to win in each market. So that was one big area. The other one I want to spend maybe a minute to talk about is our culture and people, which actually differentiates us from any company that I have known, any company, certainly in the markets that we operate. Firstly, whilst we are very much an Indian corporate, we are a very diverse bunch of people when it comes to international business. There are over 23 nationalities and you can see many pictures from many geographies. And we believe diversity actually gives us the strength and our strength lies in that rather than in similarities. Equally, even more importantly, we take great pride of our culture, the word that strikes in my mind, is entrepreneurial. We don't leave any opportunity on the table. We don't leave any money on the table, right? Equally, we take risks but we take calculated risks. For an entrepreneur, he doesn't or she doesn't take -- see the risk. She sees the opportunity. He sees the opportunity, whereas the others may see it as a risk. So we do calculated risk-taking, we are also very agile. Believe me, our teams are available 24/7 to our partners. So if it was a Sunday evening and a distributor has a pricing issue or as a funding issue or a credit issue, they know they can call on us, one of our team at that time if they have an immediate thing to discuss. And we are a very collaborative team. It's a very normal thing when we get on to a team's call and there are 5 people there, 5 people suddenly realize that we need 2 more people. And those 2 people will come on instantly without having to bother -- without having to think that why are we being brought in at the last minute because they know that as collaboration that we are aiming for. Our people learn a lot from each other. And because of the widespread footprint that we have in terms of geographies, there are many career development opportunities. They can move from Egypt to North America, from India to Dubai or from Dubai to Turkey, many of these moves happen. And each of these moves is amazing, not only for the company, but it's a huge amount of value addition when it comes to a professional development. A little bit last minute I'd like to spend talking about sustainability. We are doing a lot of efforts in sustainability. In last 2 years, we have had plastic reduction of 8%. We have launched plastic friendly or plastic or recyclable, many, many packages. And we are continuing to invest in our factories to focus in this area. A little bit deep into how we -- move to the next chart, please. Opportunities that we see, and maybe you just show the full chart -- essentially, there are 5 areas. So firstly, it is about growing core business in 3 of our largest geographies, the MENA region, the SAARC region and Afro-hair, North America, and it's going to be through renovation to strengthening our portfolio and building efficiencies as well as go-to-market execution. Equally, we see a very big opportunity in scaling up our presence. I talked about Egypt. Clearly, we can see that we can aspire to be the #1 Personal Care company in Egypt in Personal Care, #1 personal company. Equally in Turkey to expand its footprint internationally as well as portfolio. sub-Saharan Africa, I said we are 9%, but we could easily be much more. We can easily be 2x, 3x that business. And in U.S. and U.K., we at the moment, cater to the ethnic community, but we feel with some of our product lines, we have the ability to get to the mainstream Americans, and that's the journey we are starting. We had talked about many focused geographies on the very first chart, but we believe that we can build some more new focus geographies. An example is CIS countries or some select markets in Africa. E-commerce at the moment is very small, but we believe it can be scaled up. That's an opportunity, manufacturing and supply chain, cost advantage, we believe, continues to -- will play a very important role for us in future. And lastly, we are looking to strengthen our gross margin so that we can invest more to grow. And I'd like to just share with you a little bit of an ambition. We're looking at growing the topline in double digits in constant currency terms. We're also looking to expand our gross margin through premiumization, through innovative NPDs and through also saving measures by about 300 bps. We're looking to invest more in -- behind our brands, and we are looking at driving our operating margin upward of 20%. Yes. So I think -- just to summarize my last chart, International business, a key part of Dabur, and we hope that it will continue to remain so. We are quite bullish on the growth momentum going forward by both in growing in small categories as well as larger categories and, in particular, drive geographical expansion. One last final word is the term that comes through my mind or the metaphor that comes to my mind, thinking of international business of Dabur is that the world is our oyster. Typically, this is conveyed to young people who are about to, if you like, step on adulthood. That the world is out there, go and grab every opportunity that you can find. And that's how we see the International business. Thank you.

Thank you, Raghav, for a wonderful opportunity to get more insights in International business. We can now start the Q&A because I think it's better if we carry on the floor rather than break for lunch at this point of time, and it will be more efficient for our visitors as well. So we will welcome your questions and we'll start to take a moment.

For those who are online, please send your questions into the chat box. We will try to take them. But in the interest of time. Okay. You can raise your hand. And in the interest of time, we'll try to take a few questions at least from the online viewers. Thank you. I request Mohit and Ankush to, please, come in front so that it's easier to see who's asking and easier to address.

This is Avi here from Macquarie. Thanks for this -- organizing this. It was very, very useful to kind of appreciate the aspects of each of businesses. I had 2 questions. First, I wanted to kind of understand the health care business, in particular, especially the guidance that has been shared. Over the last few quarters, we've been arguing that it be low -- high single digit, low double-digit kind of CAGR that one should expect. But the target seems to suggest a much sharper mid-teens, probably growth trajectory over the next 5 years. If you could help us -- is that understanding correctly? And what would kind of change versus what has happened here?

So I think on health care, although I would ask Philipe also to add a remark here, but I think that will come in the later stage of my answer. But I think first is the International business had a great run. If you look at traditionally growth rates of International business, high single digit in the -- sorry, health care business, it has been high single-digit health care business growth for us. In between COVID came, the penetration went up, the market share went up, and there was a surge happening and we've established a high base of health care. And because of which we've seen a muted growth. If you look at the long-term period, we are growing at around 9% CAGR. So that's the CAGR we'll maintain. That said, that is the internal target that we are giving. Now Philipe has come and he's also teaching us a culture of BHAG, it's called a Big, Hairy, Audacious Goal. So we are taking a goal on ourselves as a conviction to drive a much bullish number, but the target that we set for ourselves, which is also linked to incentives that variable pay is on high single-digit kind of a growth rate on health care because whatever we are receiving is fundamentally long term for the business. And this is a platform of advocacy that we are building. This will kind of have a halo effect on the entire Dabur business, and it's a segue that we are building for very long term. So immediate results will come, but that will be 0.5% or 1% incremental to the base business. But I think over long term is what we're doing rightly to create a future-fit organization.

Okay. And so that is a target. So if I understand correctly, and I'm just summarizing it's a target, but what we should take away is that you're not going to [indiscernible].

So high single-digit growth is what we are maintaining for health care, and that is what we will want to sustain over a period of time till the time there is a very big change. What we are seeing is the means to the business. So once the means to the business are structured and ceded, then we will see the revenue growth happening, maybe it will be a little long term for us.

And would it be fair to say that this ceding of growth is going to be largely in the ethical business because a lot of it is advocacy-linked and may not -- and it seems to suggest it is a lot more about growing an unbranded ethicals to the brand into the [ therapeutics ]. So is that the framework in the 3 segments that when you look at, that's where we will see the biggest uptick in growth rates?

So I'll tell you the changes that we are planning to make -- I don't think Philipe is willing to answer. And so therefore, there will be changes, I think, in the entire health care space. So I'll just give you the 3 buckets of health care we have structured. There's a health supplement business, which is the largest chunk of the business. That grows on a conventional model of growth, which is power brands, we advertise, we increase our market share, we increase our addressable market, and that's the largest chunk of business which has the immediate impact on the growth of the health care vertical that grows on a higher signal. OTC business also follows the same thing. The other part is a ethical business, the Ayurvedic business, the allopathic business in it. So that business will get impacted. But over long term, it will have a ripple effect, all my OTC and health care business. So that is -- I hope I've been able to explain to you, Avi, what we are trying to do by setting up an advocacy vertical for Allopathic doctors.

Okay. So it would be more of that kind of driving better offtake in ethicals and that hopefully kind of driving the growth rate in the remaining segment. That's how we are seeing it. Sorry, I didn't quite understand when you said it flows through over time because I understand investing a lot more in advertising Chyawanprash using innovation. That part I get a new better market that, but how will marketing to allopathic doctor drive growth in the Chyawanprash and Honey segment? I'm not very clear.

No, I'll give you a use case here. And Philipe, you can take on if you think you'll be able to explain better, like we are going to allopathic doctors today to do advocacy or selling of our branded ethical business. Branded ethical business, we don't advertise because doctor doesn't want to prescribe a product mainstream, which is advertised. Okay? Doctor and advertising, their work pulls apart. He doesn't want to write something, which is advertised on which Amitabh Bachan is endorsing, so we've got a huge big portfolio of 150 products in an ethical and branded ethical business, which is non-advertised business. This is what is going to ride this platform that we are putting in place, number one. So it will step change the growth that you will get in this business by ceding it. That is one vertical of branded ethical. The second vector here for this distribution chain that we are doing is Baby Care business, which I'm going to be building. So we have created an exit rate of around INR 20 crores in Baby Care through e-commerce ceding. Now that business is going to be built into mainstream through doctors. So we are taking that INR 20 crore business to a INR 50 crore business in year 1 and INR 100 crores business in year 2, which will go on, and we are targeting a market of around INR 14,000 crores, INR 15,000 crores of baby care. That's a market opportunity. The branded Ethical business is even larger opportunity because he shared with the 200,000 markets that we can tap as complementary medicine with this branded Ethical products. Are you with me? That is the way.

Okay. Correct. The second bit and it is on the focus on premiumization, that's the new trend that I kind of picked up. Could you give us a sense on what is the current salience for us as a company of premium products? And how do you -- do you have any targets in mind over the medium term that you would want to kind of share with us?

Yes, see, premiumization depends upon the success. At the moment, I think around 8% to 9% of the portfolio will be premium, overall, if you look at it, because Dabur has been traditionally very rural and middle India company and never been a very premium, metro-connected company or a millennial or Gen Z, we're actually born. We are 135 years old organization, a new start-up like [ Mama Earth ] will resonate only with the Gen Z. We resonate with more baby boomers than -- even a generation prior to that. So we are that company, and the belly of our business comes from there. So only around 5%, 8%, depending upon category to category of premiumization will vary. And the definition of premiumization will be 20% above the average market price of the market leader or the average of the whole market, 20% premium to that. Only around 8% to 10% [ market ] portfolio be that. I've to build that portfolio. That is why in every power brand, I am taking the owners and the team is taking owners to build premiumization as a vertical. A 5%, 10% business will be premiumized across our power brands, which are contributing to 75% of our portfolio. That is what you see on Chyawanprash. I'll give you again a use case that you are able to understand better. Chyawanprash is a brand, which is INR 600 crores for me. Now, I put Ratnaprash on it, I put sugar-free on it, I put [indiscernible] plus or [ Gurprash ] or everything I put, it's contributing to around 8%. I will take 8% to 15%, at best, even if I steer the growth forward. So it will be slow and gradual, but the target is given, to your point. Everywhere of 300 or 400 basis points, improvement in premiumization will happen across our power brands, going forward. And this is not just a brand target. This is also a target given to GTM to [indiscernible] also, so to build the premiumization in different regions to improve the gross margins. Correct. Philipe, in case he wants to add some point, which I missed, I think, Philipe, please.

Next question we'll take from Percy.

Question from my side, firstly on Chyawanprash. The penetration was 3% pre-COVID. I remember it went to 8%. Can you let me know how much it is right now on a like-for-like basis that is [ adjusted ] for seasonality?

Percy, it went from 3%, went up to 8% and back to 4%. So we are around 30% above pre-COVID levels of our penetration levels and also the growth levels for Chyawanprash today. And similar is the case of Honey also. So there was so much of euphoria of Honey and Chyawanprash during the COVID times. After COVID, it has actually come back, but it's still higher as compared to the pre-COVID time.

Sure. On International, why did your [Technical Difficulty] large part of your International [Technical Difficulty] in e-commerce in India? I would think this is actually over to you. The ecosystem is already [Technical Difficulty] with the life of [indiscernible], they are trying to [ serve ] these kind of products.

Yes. So your point is very valid. And I think this meeting should be more collaborative in getting suggestions from you. I also look for validation from veterans of the industry like you people. So thank you for telling me and giving me a suggestion than only questioning me all what I'm doing. So I think that's one I look forward to a session like this, which is more investor collaboration, et cetera. So we, in our mind, always thought that it's a little premature, to enter -- for example, a [ marked habit ] is not there in India. When I came to India, Hammam Zaith was a very logical product. It's doing wonders like Raghav talked about it in International business, and it's growing very well. We thought it is premature, serums are premature, gels are premature, creams are premature. Creams and gels are premature in India because Hair Oil penetration is so high and Hair Oils are only evolving because we saw it only from the lens of GT. Now that we see it from a lens of a startup or a lens of e-commerce, it has suddenly started making sense to us. And therefore, we had to prioritize. There were other pressing agendas in our Hair Care business that we were trying to address, like we were losing market shares hand and fist in Dabur Amla, and we had to address that problem first, which is what we've addressed with the flanker brand strategy. And as I was telling you in my presentation, we are working on premiumization. So we have kind of -- so that's an issue with the company. We have delayed our premiumization initiatives in Hair Oils and in Hair Care, which we'll be embarking now. And the team is already working on [indiscernible] and -- to seed those innovations on e-commerce in India also, to your point.

Not only Hair, I would say that is probably suitable even in [ Skin Care ]. And I think I heard that you are relaunching Uveda. So that is, of course, welcomed. But I actually, the reason why we did not worked in the past your [indiscernible]?

Yes. So we had launched Uveda. So I think first point relevant, I think International business' entire portfolio seems to be in north now. I think we should be seeding it in India, definitely in e-commerce, and that's a task which has been given. So we are actually giving that responsibility to International business to open up India as a market for the portfolio, which is not conflicting with India. And give them a credit because they will have a more entrepreneurial approach to what Raghav talked about to see that in India. That's the first part of the question. Uveda, we had launched a couple of years back. And the experience was that the product performance was fantastic. The feedback was great. But I think the pricing was misplaced in Uveda. We were too expensive for the Indian consumers' pocket for them to afford. And the millennial and the Gen Z had not evolved to that extent the way they've evolved. And the platforms for a consumer to buy a product was also not available at the time. So at that time, it was a little premature. That said, now, we will again attempt. And it was a great formulation. So we are rejigging the formulation to make it more clean, environment friendly, what the consumer wants now. And we'll be rolling that out now. And also adjusting for the correct pricing in the market. And the second part, why we didn't -- while the pricing was high. But it could have taken off, had we had more patients. So I think now we have much more patients, and therefore, we have seeded a model that we are okay with a INR 10 crore sale, we are okay with the INR 20 crore sale on an e-commerce platform. At that time, the guardrail was that we have to do a INR 50 crore business generation from NPD in Skin Care that we are rolling out with so much of investment. And I think our patients ran out, and we [ culled ] the product immediately after, I think, 1.5 years ago, [indiscernible], you can comment, I was in -- after 3 years, we actually [ culled ] it. So I think now we think we have more patients, and we'll endure the launch, and we'll keep progressing. And progression will be prioritized to perfection, and we'll keep learning as we get the consumer feedback and circle back with improvements.

Great to hear that. Just last question, if you'll allow. Looking at your presentation, so many details etc., it seems that correct if I'm on wrong, your ambition is to grow the [indiscernible] probably a low teen kind of number. So how long do you think before we see that kind of growth in your results?

No, very difficult for me to crystal gaze here. So I think we want to do it. If you ask me, is there a will? I think will is there. If you ask me, effort, effort is there. But the market dynamics is not in my hand because India is a very, very dynamic environment, and there are circumstances, which are beyond your control. But I can definitely comment with conviction that if the FMCG or the relevant markets grow at x, we will be growing at 1.5x of that particular growth rate and gaining market shares across our competitors. So I can't say it will become double digit or high single digit, that is very difficult for me to comment because it's a very dynamic and volatile market environment. Sometimes inflection comes in, sometimes we get hit by COVID. Sometimes rains actually depress our ambitions. Like as we speak, our juice business is not doing which was a star performance till last year, we were having a 40% growth year-on-year. This time, not doing well because the season is playing a big [ dampening ] area. So I can't give you a number. But the guidance, obviously, we have brought a growth in India of around 8% CAGR. We want to trend at much higher than the 8%, going forward, and we are targeted to that. Our remuneration is linked to that. So hopefully, we will make all-out [indiscernible] attempts to grow at that trajectory.

Before we move on to the in-person participants, one quick question from Tejas Shah, he is online. The question is you spoke about young consumers, Gen Z consumers who are more inclined towards products that prioritize efficacy over flashy marketing. He's asking, how are our R&D efforts aligned with this preference?

All right. So I think I will defer. I think they want the best of both the worlds. They want great flashy packaging, which looks great, smart, nice to use. Also, they want clean, efficacious product. Also, they want [ organoleptics ], which are fantastic. If you look at some of the startup companies I have seen, all the 3 parameters are fantastic. Efficacy is great, packaging is [Technical Difficulty] the product. Of course, [ organoleptics ] are also fantastic. So I think we are working. I think our R&D is completely cued on to it, and they work with us on a day-to-day basis. For example, Dr. [ Bednar ] is here. He is, as we speak, working on gummies, which are the product and the format of the future in most of our power brands, in Health Care power brands. He's working on that. He's working on powders, which are, again, great. He's working at [indiscernible] tablets. So that work is happening. And it's just not old-school thought of taking pride in what I'm doing and researching as our R&D mindset has changed. We are more from R&D to C&D, whereas the R&D, research and development, to more connect and develop. We are trying to connect with third parties who are also the product developers for the startup companies, who have kind of leapfrogged in the journey of development, just connect with them, take the product, add your efficacy in terms of Ayurveda in it and roll out because that is my secret sauce. That secret sauce cannot be replicated by any third party. That is my proprietary, which I add and assimilate with the broad [ blue shell ], which has been devised by the start-up and launched in the marketplace, which resonates with the consumer much better as compared to my old school kind of product. That's how we'll speed forward, and that's how my R&D people are working. As we speak, I think around a month back, we had a great vendor meeting. And in this vendor meeting, where R&D people were present, specialty chemical suppliers were present, raw material people were present, we were discussing this, and we've got some great ideas out of that. So we are working on it, and R&D is pretty aligned on the same.

I think we can take some questions. Yes.

Thank you, Mohit, for a fantastic presentation. Just a candid observation, the share of voice for Ankush was very low. And I think this is one of the things we typically ask how the financial terms and commercial terms are going to move up for this company. I mean, it's a view, and it's an observation. Second, my question is around that the complexity of the business since the time you have come on board, as you said that the new product contribution is now 4%, 4.5%. I just wanted to understand because there was no slide or there was no presentation from the sales angle. How at the ground level, you are managing this complexity of the business in terms of channel, in terms of efficiencies, in terms of drawing the best of the things? Though it was partly covered in the digital piece, but in the effective piece, when we see that there is a trade complexity, which is incrementally going up. And especially, if Dabur is stronger in GT business, how is this journey for next 3, 4 years? Because from the slides and from the presentation, we are saying we are further going to add the complexity, with the focus on the Health Care business.

Got it. So I think I will not take the share of voice anymore. I want to give the share of voice to Ankush, the first part of the question. And the second share of voice also, I will give it to Anshul, our Head of Sales, who's presentation -- I told you in the beginning, I'm not -- he has just taken over the big channel and the big shoes of Adarsh Sharma, and I don't want to expose him to the firepower of investors and analysts. And therefore, I told them that I will bear the brunt of that pressure rather than putting him right in front of the lion's den. And we [indiscernible] will now all the questions. So you will answer this question definitely. So...

Yes, sir. First point on the share of voice, yes, we debated about it, and we deliberated that what is the most important thing currently we are looking from either the organization or from finance. We saw the most important is we had a turbulent times because of geopolitical situation across the globe and across peers, so we want to hear about the profitability metrics over the last 2 years and all. So that was the most important metric we wanted to get. And I deliberately did not talk about the operating margin because I thought you'll ask me in the Q&A session. And I also wanted to say that while our aspiration is much higher. And easily, with confidence, I can say that we can reach 20.25 to 20.5 operating margin even in this year. However, having said that -- you will not hold me for that. And you all also will not. We will go for it. But having said that, we want to redeploy part of the margin expansions back into brand investments. So 100 to 125 bps will go back and not only in brand investments, but also in digitization efforts which we have been doing across the organization because we are firm believer that if we don't invest now, our successors probably will hate us for that, one. And our future generations will repent because as you see, we have great brands, great strategy, great NPD pipeline. And therefore, it needs a lot of investments, not only in brand and digitization, but also in our route to market. So we want to give it back to business, so that we have a sustainable growth, point number one. We also -- I also wanted to speak about digitization efforts, which is not only happening across the organization but also in finance team. But we thought let -- who better than -- [ cost up ] could take that. But just to be brief, apart from digitization in, let's say, sales and marketing, in operations, in marketing, we are stepping up our investments, whether you call it [ DAM ] or CMS or cloud or journey to cloud or even S/4HANA moving last couple of years. We are also building tools, which are about forecasting, about budgeting. At the top level, I can put a number at the top, and it will disintegrate at the most bottom. Likewise, I can put a number at the most bottom, and then it will aggregate. So wonderful tools, one of the best. I can say, we're proud that it is one of the best in the industry, one is that, which enables not only corporate but also the business teams, which will have more profitability. Then, we are also building tools that as Mohit said, that the sales team, or Anshul's team, is not only responsible for top line, we are driving that culture, they're also responsible for driving profitability, whether it's general trade, whether it's modern trade, whether it's e-comm or any alternate channel. So we are driving that very aggressively. Sales team is also responsible for mix, while they may not be directly responsible for inflation or deflation or on premiumization or a must-stop list, et cetera, to give them better profitability metrics and reach more consumers more effectively. So a lot of things we wanted to speak, but we thought you listen to us quite often. And therefore, let the business teams also present the real insights what's going behind the business, how part of it rather than just the profit -- profit can increase, as I said, 20.25 to 20.5, but we want to give it back. And I don't think -- and I think definitely that you will also want us to do that because in many of our conferences, you've said that why have you cut back on investments last year. So I think we want to speak much. But in summary, we can, but we would want to give it back to [ business ].

Yes. So I think -- yes, okay. So what I just want to summarize what Ankush is saying is I think there's always a quandary in -- that's why you're looking at me when he was speaking. So I am pushing the CFO to whatever upside in gross margin we get because of inflation moderating, there's upside in gross margins, which is happening. And naturally, it's happening because the deflation happening, and there's a gross margin upside. There's 100 basis points of upside in gross margin. It's between us to decide whether you want to invest into advertising, where the advertising has gone down to around 5% to 6%, I would to take it up to around 8%; or I want to put the same amount of 100 basis points straight away into operating margin, which everybody will like. So the gallery will definitely like that. So the promoters will like it. But is it long-term sustainable? The answer is no. At the end of the day, we are putting less firepower behind our brands, which are more sustained, and we've got a lot of brands there. A lot of mouths to feed and a lot of initiatives happening in the company, which is long overdue. So that's what we are trying to do deliberately. That's why our guidance of 19.5% for the current year. But definitely, it will go up to around 20%, and we are committed to that.

In mid- to long term, yes, not in the year.

Yes, coming to the second question.

Anshul, by the way to introduce you, Anshul is our sales chief and who's replaced Mr. Adarsh Sharma. And Anshul has been with the company for 16 years now, risen from ranks, trade marketing, handles South of India, handles East of India and the North of India. So step by step, he has actually grown, and he understand the gaps of the business. So who better than him you can speak.

So the second question I'm going to an answer. On a lighter side first, so the sales team, which is there in Dabur, very young team, I think, 35 years age of the leadership team, which is there. So that's well enough to handle the complexity of the business. But again, coming to your question, so I'll answer it in 4 parts. So first is as the products which you have seen, the 3 portfolios, Health Care, Personal Care and Foods, and then it is [ segregated ] across the channel. We have got an e-commerce team. We have got a modern trade team, [ general team ] and an enterprise team. So the new products or the portfolio is very clearly segregated. For example, [indiscernible] e-commerce will be driving separate portfolio of new products, similarly in modern trade and general trade. So coming on to the general trade, which is the major part of the business. In general trade also, we have got teams which are segregated at a Health Care level, at a Personal Care level, at a Foods level. In Personal Care also, as Mohit already told, there are 2 lines, HPC 1 and HPC 2. So we see as a portfolio from the top down 4% -- I mean, 4% is the contribution of NPDs, there are about 40-odd NPDs in GT, 40 to 60. But as we go down, these get segregated into the teams. So this is the second part. So Personal Care HPC guys who is only handling the Oral Care one major part, he would be handling only the new product of the Oral Care, which is the [indiscernible]. Whereas the Amla guy who is selling the HPC 2 line, he would be handling only the Amla NPDs. So the complexity at the lower level gets very compartmentalized and segregated. The third part is that now these NPDs, we, again, segregate into the outlets also. For example, my A-class outlet, the A-class outlets will be contributing majorly towards these NPDs or the portfolio. So we have got a very clear channel programs. We have got a very clear A-class outlet, where digitally, we are driving those NPDs so that there is no complexity at the end of the day because of salesmen, when he goes to market, he has got as [indiscernible] has always said, has got 15 SKUs, which he has to sell in the market. And the fourth part, the digital. So we have got a very tech stacked at each level. For example, a sales officer or a salesman, he would have a very clear application with -- which will be showing him the lead measures that what is the task that day. So as they come down, we divide this complexity into various parts, so that at the end of the day, he has got a very singular objective kind of a thing.

See the reason why I'm asking, I'll give you three observations. We also do a lot of work. We go to the modern trade, we go to the distributor of general trade. That's by nature because I've come from the industry. Three of the observations: When you go into the trade, pomegranate juice, when you find out in the trade, which is as older as 6 months and you have an expiry of 6 months, it's just barely you are managing. Second thing, fastest-selling SKUs, which is mango. And you go to the trade, you will not find it. Another example if I give you, the trade inventory over last 6 to 8 quarters has consistently gone up, though we pick up what is happening in the market. But the question is that if you are -- low-selling SKUs is piling up the inventory, the distributor doesn't have those fast-selling SKU inventory. So in that context, I'm asking this question that is the trade pipeline which is going because the complexity of SKUs are going, and we are introducing too many products. So rationalizing the SKU is one way to look at and keep those slow-moving items absolute and remove. And this is what I wanted to have the answer, and I'm putting this question.

So rightly pointed out. So we have also handling of this complexity of SKU. So one thing is there. So as Mr. Mohit has already said, there are SKUs we keep on rationalizing also. So the NPDs, which we have launched in the COVID contextual time, so [indiscernible], how many SKUs we have rationalized?

So we have, in over the last 2 years, rationalized almost 250 SKUs, which are more than 10% of our SKUs. So there's a continuous weed and feed. And we do this every 6 months, based on the performance index. And there are various performance metrics, where we have sales, profitably and all. I can speak on it, but maybe...

Yes. So I'll answer you the second part. So how do we manage this inventory SKU level. So it was starting from the CFA to the distributor level, we have got an auto replenishment system, which is totally algorithm-driven, which takes into account what is the sale of the SKU? What is the kind of aging of the SKU? What is the norm, which stockist would have for that SKU? And that by which down level that SKU should be there? For example, as you rightly said, a pomegranate would be available in a Punjab A-class town, whereas the pomegranate in UP where apple is the most selling SKU, it would not be there in the inventory of the stockist. So this is at a stockist level. So CRS would tell you what is the order which a stockist has to be and at an MSL level. Now coming to the second point, even at the salesman level, we have defined the MSL. So A-class outlet in a Delhi kind of a city, we'll have a very clear definition of A-class SKUs, which a salesman has to sell. Similarly, a B-class outlet will have a different set of SKUs and C-class also. So [indiscernible] Amla would not be an SKU, which would be projected for an outlet in a A-class or an [indiscernible] kind of outlet. Whereas the pomegranate 200 ml would be there in his SKU basket in Punjab and also in Ludhiana, but it would not be there, say, in a [ Patiala ] kind of a small town. So this is the way this is handled. So this is a technologically old-tech stack, which helps at the distributor level and at the salesman level also.

Okay. My last question on the Health Care. Somewhere, Mr. Haydon showed the slide that we have about 1 million allopathy doctors and 0.5 million ayurvedic doctors. I just wanted to have one clarification. The coverage is the thing which is going to drive the therapeutic business? Or are you also looking from the practitioner -- from the allopathy side of the business? And second question is that equally, if you can say that, how many ayurvedic outlets exist in India, like chemist, which [ helds ] largely the allopathy? And in that context, what is our coverage and where we want to take that coverage in the next 2 to 3 years?

Philipe wasn't here. So I think you may want to repeat your questions. Philipe can also listen and he can add, but I can answer the first part of the question and then you can perhaps -- we already have a base business, which is running and we are selling the base business from the ayurvedic. Branded Ethical is a business that we're going to be selling through our ayurvedic -- allopathic vertical that we talked about, we are already selling. There is a base business [indiscernible] was growing at the rate of around 8%, 9%, and it is selling through the conventional chemist outlet. So now allopathic advocacy is going to add to that growth of business. So it was 8%. With allopathic doctors also writing, more consumers will get into the wrap of that brand. And therefore, the growth might become from 8% to 15% kind of a growth. That is how it will [ grow ]. It is an advocacy vertical. It is sort of selling vertical, unlike a ayurvedic dispensing, where there is a selling channel. You're getting what I'm saying? So I've answered the first part of the question. So it's only going to bolster the growth. Yes, it will take investment from our side that we are creating a whole division and people are coming in, but they're doing advocacy for that. So that is one. In case you have any questions...

I got, Mohit, what you're saying that is easy to exploit or get the penetration of OTC part of the business. My question was more on a therapeutic type of -- part of the business, which Mr. [indiscernible] said that we want to achieve INR 3,000 crores.

Therapeutic is also selling from ayurvedic [indiscernible] today. All this portfolio that is there, this is a ayurvedic portfolio, which is selling through a ayurvedic vaid. Ayurvedic is writing, we are selling, and we are filling in, that's the business that we are creating. So now allopathic doctor will also write as a complementary medicine. Like I'll give you an example of Stresscom. Stresscom is written by a vaid today. You go to vaid, he writes Stresscom, and he goes and buys Stresscom from a ayurvedic counter or through a chemist counter, distribution chemist counter is lower allopathic. Now that the allopathic doctors will write it in Ganga Ram Hospital. All around Ganga Ram Hospital, if there are 50 pharmacies, we will distribute it there also. And the traction of Stresscom will start from there also. This is incremental business coming to the core business. But I'm not creating a statin or a allopathic medicine. That's what Philipe talked about. We already have this whole portfolio with us already.

Okay. Let me rephrase what I was saying. There are specialty ayurvedic herbal medicine selling outlets in the country. What is our penetration, and what is the plan to take that coverage next year? I mean you're doing the front-end through the doctor advocacy program. But at the back end, if you can give me some depth, how that number is today, and what it looks like?

But our chemist coverage -- direct chemist coverage, 2.5 lakhs. I already shared that with you. 2.5 lakhs is our direct chemist coverage, which is allopathic pharmacy coverage, which we will take up gradually slowly to a level of around 3 lakhs to 4 lakhs. I shared the target with you also. It's going to go up from 2.5 lakhs to roughly around 3 lakhs. That is what we will do. That's the target that we have. And these chemist outlets are common to whether it's an allopathic doctor or it's an ayurvedic doctor.

Okay. [indiscernible], if I can attempt to answer. I think you were asking specifically about the ayurvedic outlets?

Yes, exactly.

There's no...

I've been looking at ground-level depth there. I understand what Mohit was saying.

Let me then sort of try and answer that, please. As we understand it, roughly about 16,000 to 17,000 specific hardcore ayurvedic outlets, where 80% to 90% of the turnover will be coming from generics from some sort of Ethical brands of Ayurveda. Our coverage in that is 12,000 plus. The reason we don't have a coverage in the rest of it is these are outlets which are hardcoded in areas like Kerala and Tamil Nadu, where they sell only certain brands which are very atypical to those geographies. So that is the reason why there is no coverage. Otherwise, we are covering 12,000 out of our estimate of 16,000-odd ayurvedic outlets. That's the first part. The second is of the overall 3.5 lakh chemists that exist, we have a coverage of about 2.5 lakhs to 3 lakhs. Within that also, we have a distribution of our ayurvedic products because typically, allopathic chemist also stocks about 10% to 15% of this portfolio, which is OTC Ayurveda, you know [indiscernible]. Our coverage through the therapeutic or the ayurvedic channels that we have is roughly about 1.2 lakh chemists, among that 2.5 that we cover. I hope I answered.

So we'll take the next few questions. We have Amit here. And I request everyone to do one question per person now. Apologies for that, but the launch will become [ hi-tea ] otherwise. So we'll just do one per person.

Amit from Elara Capital. Sir, just on the Health Care follow-up, more to understand the approach that we are doing, wherein we are targeting the allopathic doctors to recommend the Baby Care and the Ethic branded segment. So in that, I wanted to understand which markets are we targeting? Is there any specific target customer or target markets that you are looking at?

Philipe, you want to take it?

Yes, it's a pan-India launch. It's across the country. Yes, we have about 500 people who are going to be coming, as I showed you around 70,000 doctors, and they should have a direct coverage of around about 1 lakh-plus, 1.2 lakhs of direct retailers. So it's a pan-India cover. There are no -- there's no test launch or soft launch. We're going flat out. I hope I've answered that.

Arnab from Goldman. My question was actually on the Beverages part. So if I look at broadly the market in India, the highest growth in the last couple of years seems to be actually in ready-to-drink beverages, whether it is energy drinks, which has become a multi-1000 crore market or Tata consumers, NourishCo business crossing INR 1,000 crores this year. So you have a very good real business. And the ready-to-drink part of it, which is INR 200 crores today, what is the impediment to like scale this up very fast to like 1,000 plus, which seems the market is there, your market share is very small here? And is there merit in like pulling in some of the other efforts or not investing across Foods, but focusing on this one big area? And what could be the impediment here by your supplier not like aiming for something like that?

Mayank, you want to answer?

We are there ready to -- and I showed you our out-of-home portfolio. I think that's what you're referring to as ready-to-drink. So our saliency was low as compared to the beverage industry because we are there in juices and nectar. Now that we have expanded, we have a portfolio there. And our saliency from 26% has gone up to 35%, industries at 65%. So there's a huge headroom. So we didn't have the price points, we didn't have the format, we didn't have anything beyond nectars. So now we have milkshakes, now we have mango drinks, now we have fizzy drinks. We have price points from INR 10, INR 20, INR 30, INR 40, which is all perfect for the out-of-home consumption market, which is what others have been doing, as you are rightly pointing out. And we are growing, our out-of-home portfolio is growing much faster. For the last 2 years, specifically for the last 2 years because I talked about the CAGR, our growth has been upwards of 20%, 22%, helped by a great season last year. So we have been going. And ready-to-drink on the out-of-home portfolio is firing much faster than the portfolio because of the expansion in distribution and the portfolio. Yes, can we grow faster? Can we do a better job? Of course, we can do a better job, but we are calibrating our distribution expansion also how fast can we expand distribution. The chilling solutions have to be there in the outlets. We are prioritizing where we want to expand first, whether it is the eating and drinking outlet, highways entertainment, general trade. So that -- there is a blueprint to that, and we are moving as per that.

Yes. So I think to summarize what Mayank is saying is our business has grown by 100%. There is no limit to the growth. So you're absolutely right. So we are bursting from scenes in internal capacity, whatever produce whatever we absorb. So I think it's CapEx. It is people. It is also the bandwidth which is there. But it's a 100% growth from the business at INR 200 crores for us. We've never seen that kind of a success rate happening in 2 years' time. So while you say that NourishCo is becoming INR 1,000 crores, I don't know in what time frame they have become INR 1,000 crore energy drinks also. If we have a -- if you say, do we have a right to win, we have a right to win. So we'll be seeding in those propositions as we go along.

This is Latika from JPMorgan. Two quick points. Is it correct to observe that you are kind of pivoting your portfolio more towards urban now with so many launches at the premium end? And is it because of the recent developments in rural where growth has lagged expectations? Is that leading you to kind of rethink on that bit at least over the next 2 to 3 years? And the second thing is if you could talk about some near-term trends, how are you feeling about growth? Is it getting better? Is it stable? Are you seeing the impact of deflation in any of your categories? Or you would yourself want to increase promotions or consumer offers to induce volume growth?

Right. So Latika, I'll answer the second part of your question first, which is more generic. I think over the past couple of quarters, we've seen deflation kind of -- inflation kind of moderating, and the gross margins are picking up. So as the inflation is moderating, there is an uptick in urban. There is an uptick in rural. Both, we are seeing a lot of traction now coming in to what the situation was last year. Now the situation was fantastic in the month of April. May, June also, it was fantastic. We grew our HPC and HC business at around high double digit, 12% is the kind of growth and backed by volume growth of around 8%, which was unheard of for us. So it was doing very well. In July also, the business was okay. August, the rains haven't played a damper. September, again, I think the business has started. Beverage is impacted. So overall, both urban and rural volume growth is kind of kicking in, and we see a much better year ahead of us as compared to what was last year. But are we back there in rural completely to full glory of 1.5 years back? Answer is perhaps no, where in urban was -- rural was leading the pack and urban was lagging. That is not what we are seeing. But still, rural is kind of behind. But the difference between urban and rural is kind of narrowing. And for us, rural is very big, and that's an indicator and a barometer of success. So I think overall, things are in a much better shape, and we've lapped over our Health Care basis also. So that said, the second question to answer, are we trending towards urban more and less on rural? The answer is no. I think the rural is our belly. That's a base business for us. But Dabur lagged the premiumization and connect them. That was a gap. So we are plugging that gap. In every brand after brand, we are giving targets of premiumization to inch up our gross margins, so at bottom of the end in the pyramid, we are looking at LUPs to increase our penetration because rural is becoming urban and rural is also becoming prosperous. At the top end, we are introducing premium product, so that our gross margins actually inch up. So it's a two-end, two-pronged strategy, and one prong is working in complement to the other prong because aspirational [ aspirational ] portfolio, as you build on e-commerce and modern trade, will only help the belly of the business, which is the base business in which we are doing recruitment through LUPs. I hope I've been able to answer. Abhishek, you want to answer? Okay. Yes.

So I think we'll take the last question from [ Krishna ].

Mohit, at least -- when you had that analyst meet about 4 years ago, at least for me, the most exciting part was you are changing the packaging, changing the flavor, providing access packs on the OTC and supplements to the millennials and Gen Z. Now on each of these aspects, how successful have you been because at the end of the day, as Philipe said, right, I mean, a lot of efforts may go through, but this will determine the eventual success, right, whether you are able to go from the boomers to the next generation? On each of these aspects, how successful have we been? And Philipe, maybe you can take it forward what you intend to do, going forward.

Right. So I think last 4 years journey has been great, and I think it's extremely heartening. And a proof of the pudding is in eating it, you have seen the numbers. 2% growth moving up to 4x growth of around 8%. So I think there's nothing heartening and no more gladdening to my heart than looking at the numbers happening. And it's a profitable growth, which has actually happened, despite the headwinds of COVID that we have traversed is the biggest black [ swan ] event that we've seen in a century. So I think it's very heartening to see the business actually grow. And I think brand after brand, I'll give you examples, Amla Hair Oil, while premiumization we've not been able to do, we are able to gain back all market shares on Dabur Amla. Vatika, still suppressed. Our Oral Care is gaining market share. We've become the #2. We [indiscernible] the largest FMCG company in this India with the kind of might they've got -- got its peak [ mines ]. Penetrations have gone up in Oral Care. We are fighting with a big [indiscernible] multinational with deep pockets. Third, on...

The question was both from a Health Supplements and OTC.

Only Health Care, is it? Only Healthcare. So I think Chyawanprash where [indiscernible] market the stellar performance, Chyawanprash market share have gone up by 400 basis points for us in the past 4 years' time. And we've contemporized Chyawanprash, sugar-free is a great success. And around 10% of the business is coming from the millennial-friendly, health-friendly packs, to your point. I think our Honey business was down to around 30 market share, is back to about 50 market share. During Patanjali's onslaught, we got hammered. Organic Honey has done well. Sundarbans honey is doing exceedingly well. So some of them spreads haven't done so well for us. But most of the other initiatives on Honey also have fired. In Lal Tail, which [Technical Difficulty] range that we introduced on e-commerce, got INR 20 crores success sale. And that's why Philipe is on board to take our Baby Care now to mainstream. So that's the next level of the journey that we'll be embarking. Our Hajmola brand, LimCola, Chatcola, the variants that we launched during these 4 years, outstanding success. 15% of the sales could be on -- how much of the sales coming from these two? Around 15% to 20% of the sale is coming from NPD for us. So it's a classical case of a huge success in Hajmola. Pudin Hara, not so successful. We had thought that we would do a [ fizz ], and we launched sachets. We contemporarize Pudin Hara from a [ full ] format, from a water format to a sachet format, in which we were to compete with ENO, which is a INR 1,000 crore player. There, it's a limited success. We haven't let go of that, but it's a limited success there. Shilajit is touching huge success, Shilajit in a paste form, Shilajit Gold for us. Again, amazing. So OTC, brilliant. Even Ethical business, we have plugged the gaps in our portfolio in our branded Ethical business for allopath. I think that's also -- Ratnaprash, for example, has done exceedingly well for us there. So a lot of -- so I think I'm very satisfied with the journey that we have on transcended. And these all NPDs are only giving back to the mother brands. And the image of these brands are getting better. For the future journey -- Philipe, may want you to answer, going forward.

Going forward, if you're talking about what are the new initiatives we're going to be taking, it was clear there is more...

Philipe, more so from a millennial and Gen Z point of view.

Okay, more from that point of view. See, I'll tell you, it falls upon certain companies like Dabur to make it very relevant. And when you're actually entering at a very early stage, you see -- like, for example, Dabur Baby Care, et cetera, I don't think that our penetration is anywhere near what it should be. And for the millennials, they are people who actually have -- who are the Gen Z., they are the ones who are going to be having babies very soon. Dabur has to enter at that stage. That part, my colleague, Abhishek Jugran, going to be making their own inroads with the other brands which are more commonly used over here. So if you look at our pipeline, it's what I clearly mentioned is right from birth until old age, we want to be a valued Health Care partner along every step of the journey, and that's very important for Dabur to do. That's what all of us are going to be working on in our own pathways. Me for Health Care, Abhishek, obviously for the Home and Personal Care, and Mayank will be taking care of the [ fourth ] part. Now we're talking about millennials, et cetera, we are there with your drinks, in your [ fizz ], et cetera, we're there. I hope I've answered that question.

Just to add on to what Philipe was saying, there are a lot of startups who actually come ahead and actually are paving way for us. For example, a lot of health care startup companies have come in, and they are showing us that [indiscernible] tablets are doing well, gummies are doing well, and they are paving way. So we have got around INR 6,000-odd crores lying in our balance sheet for this purpose that we can jump [ shift ] our game by acquiring a company, which is synergistic, strategic fit for us, that is an inorganic way. This is an organic way that we will also try. Organic is more arduous a task and more perseverant and bandwidth, this thing we are realizing. Suddenly, if we acquire a company, which is small, if the valuation is reasonable for me and it's in line with my ayurvedic core, then we will acquire this. And now the valuations have become very reasonable as [indiscernible] piece, so we are evaluating as there's nothing that I can speak of right now, nothing on the table. But I think valuations are becoming reasonable for us to go for an inorganic approach here to speed forward on this journey.

Or even invest in stakes and not even complete acquisition, but invest in stakes in companies, which are...

I think that's about it. And thank you very much for a very patient listening. And also, come on the way and join us for this on Capital Day event. Thank you.