Hindustan Unilever Limited (HINDUNILVR) Earnings Call Transcript & Summary

Good morning. It gives me an immense pleasure to welcome you all to HUL's Capital Market Day. I am Yogesh Mulgaonkar. I head Investor Relations for HUL and also Head for Beauty & Wellbeing. We are delighted to host you today. I would like to extend a warm welcome to all of the virtual participants also in this conference. We hope you had an opportunity to explore our virtual experience zones as well as the physical experience zone and look at our portfolio and innovations. We have a rich agenda for the day. But before we kick off, let me draw your attention to the safety AV. [Presentation]

Now let me take a few minutes to walk you through the agenda. We will start the day with Ms. Priya Nair, our CEO and Managing Director of HUL, unveiling our strategy to win. We will then move to our segmental presentations by our business heads who will bring the strategy to life through their respective portfolios. After this, our CFO, Mr. Niranjan Gupta, will cover the value creation section as part of the strategy. After value creation, we will break for an hour for lunch. Lunch break will be followed by breakout sessions where we will walk you through our capabilities. This session is only available for in-person participants. I will share instructions on this later. We'll end the day with Q&A and hi. Before I start with the presentation, I would like to draw your attention to the safe harbor statement included in the presentation with good order sake. With this, it's my absolute pleasure to invite our CEO and Managing Director, Priya, on stage to begin the session.

Good morning, everyone. Listen, I'm absolutely delighted to have you and invite you and have you for the whole day and welcome you to the HUL 2026 Capital Markets Day. But I am especially delighted because this is my first Capital Markets Day as the CEO and MD of HUL. So before I begin, I thought it's important for me to introduce myself. I know many of you, but I'm sure through the day, I will have the opportunity to interact with many of you. So for those of you who don't know me, I'm a Unilever as we are called. I've spent over 3 decades with HUL and Unilever. Prior to going into Unilever, I was on the Executive Committee of HUL. I first ran the Home Care business and then the Beauty and Personal Care business on the executive. I then moved to Unilever first as a CMO, the Global Beauty and Wellbeing organization and Unilever and then joined the Unilever executive as the Beauty & Wellbeing President globally. So that's really what I did before I came back to HUL about a year ago, delighted to be back home in HUL and in India. So that's really a bit of an introduction of me, and I really would like to have the chance to get to know many of you and for us to talk over the day. So let's begin with looking at HUL at a glance, always good to ground ourselves in some facts. We are one of the largest and most loved companies in the country across sectors. Our turnover stands at INR 63,763 crores. What we're really delighted is we have 21 brands above INR 1,000 crores. And the statistic that we will never tire of telling you is that 9 out of 10 consumers in India use one or more HUL brand. We have over 90% #1 position in the market, and we sell 85 billion packs in a year. So guys, all of you, lots of maths in the room, 1.4 billion people, 85 billion packs. So you can do the math. And we do this through reaching 9 million outlets. So that's really the statistics. But the statistic that we are most proud of is that we continue to be the #1 employer of choice. And the talent of HUL is indeed the bedrock on which HUL stands. So that's just some statistics about the company. Four powerhouse segments, Home Care at INR 23,600 crores, Beauty & Wellbeing around INR 15,000 crores, Personal Care at INR 9,560 crores and a INR 14,000 crore foods business. So that's really the composition of our turnover. With a robust profit and cash profile, 23.6% EBITDA margin, 110% return on capital employed, INR 11,000 crores of operating cash flow and about INR 49,000 crores of reserves. So that's really what you must think about when you think of HUL and best-in-class supply chain costs. Why is this? Because of the scale and efficiency at which we operate, we have best-in-class supply chain costs. Over a decade, HUL has delivered value creation. If you look between 2014 and 2024, we grew our turnover 2x, our EBITDA 3x and our operating cash flow 4x. So that's really the numbers on which we grow. Growth has been muted in the last 2 years, and this is especially amidst a very challenging operating environment. What I want to share with you is the actions that we have taken to decisively reset our growth. And I think the most important action that I would share with you is the first, which is elevating the desirability of our brands. For us, our brands are absolutely the most important thing in HUL. And through the day today, we will share with you between me and the business heads the work underneath the hood that we are doing to raise systematically the desirability of our brands. The second is allocating resources more sharply to fewer, bigger bets. And that's something, again, we're going to dive into through the day today. The third thing I want to talk about is acceleration of key growth pockets. You're going to hear much more about what's underneath the hood of this geographies, channels and portfolio through the day-to-day. The next area in terms of executional step-up, both in terms of how we deploy in marketing, but also in -- at the point of sale, and Neil will be sharing with you how we are building a future-fit GTM. And the last is a rebired organization, more simple, more agile. So that's really the key steps that we have taken to step up our growth. And this indeed is what's resulting in the step-up of growth that you have seen. But possibly the most important thing for us is that we have strengthened our competitiveness. And this is really the signal that we have that the step-up that we're doing on the desirability of our brands or in execution indeed is resulting in this performance step up. I think with this, let me shift to talking about the opportunity of new India. And I say new India very purposefully, and we're going to talk to you about this idea and this emergence of a new India opportunity. When you look at the India consumption story, listen, all of us in the room, all of you who follow consumer goods, we are the fastest-growing large economy in the world. Under-indexed CPG spends, the CPG spend per capita at $63 are extremely under-indexed versus our neighboring peers, but possibly the most important signal is what's on the right. When the distribution of household income starts to change, it changes how you consume in consumer products. So that's probably the biggest and most important shift that is taking place in India is the change in income in the hands of consumers. And India offers a very rare combination of scale, 1.4 billion consumers and per capita growth when you look at it relative to other countries in the world. And it is this very strong combination, which is why we have a huge opportunity in consumer products. And there are 5 structural shifts that are taking place to create a new India. I think it's very important for us to reflect on what these structural shifts are. The first and by no means the most important, but it is very important, is 377 million Gen Z consumers of India. These consumers are absolutely changing India. We see it every day. In the last 1 year, I have spent a lot of time going into the market and meeting consumers that have come back. And I see the change that they are starting to create in the way our categories are consumed, how they discover our categories, how they buy our categories, they will change CPG consumption. The second is women in charge. The women workforce participation has changed in India from 23 -- 25% to 43%. And this change is mostly in rural, but also in urban. And what happens when a woman goes to work. You can just imagine and all the women in the room, but everybody in your homes who are working women, everything changes. It's how she cooks changes, how she does the chores and the home changes, but also how she shows up. And whether you're in rural India and you go out to work and you have financial independence or whether you're in urban India and go out to work, it changes the way women consume our category. The third thing is data penetration. Data penetration in India has changed the transparency and the opportunity to know 50% of the global payments in India go through India. 50% of the world's global payments go through India. The other shift is the change that's taken place in road infrastructure. The government has made significant investments to change road infrastructure. And this is changing, again, consumption. We did a study -- let me share a statistic with you. We did a study of what changes when physical access changes. So when you change the access of a village or a small town to a neighboring urban center, it changes our growth by 30%. So we have 30% incremental growth every time a road infrastructure starts to change. And the villages of India are changing. And why are the villages changing? More tap water, more LPG and of course, the road infrastructure changes access. So these are the structural changes that are taking place in India, which are creating this new India, which is starting to be born. And in this new India, growth lies in segments and subsegments, and this is very important. I'm going to talk a lot about this. Growth is emerging in newer geographies. Small towns are growing 2x faster than all India. Newer channels are emerging. We all know quick commerce. Newer consumer spaces are emerging. I've taken the example of health and well-being. We could have other examples. And all of this is fueled by newer media platforms, which are changing the way consumers discover brands. And in this context, I want to share with you how we think of the growth metric of India and the growth metrics of India. The first axis when you think about how consumers change consumption, of course, it is income. So when you look at India across income strata, democratizers are about 35% of India. They have the household income of about Africa. So 35% of India democratizers. Premiumizers are about 65% of India. They are the household income of Indonesia today. And 5% of India are at the income of France. So you can imagine how this changes how consumers consume. When income is in their hands, it changes the household consumption, it changes the brands they buy. So this is the first segmentation variable that is changing the way consumers buy in India. The second variable that is changing consumption in India is where they live. And you can imagine that the physical access and infrastructure in where you live makes a difference for how you buy. So 70% of India lives in Tier 4 and rural India. So I think I want to say that number again. 70% of India lives in Tier 4 and rural India. 20% of India lives in small towns and 10% of India lives in the large cities. So everyone's got the numbers, yes? Now think about the other thing that is changing in the country, and that is where you shop. So where you shop is starting to change, whether it is online, quick commerce, e-commerce, modern trade, large general trade, and Neil will talk to you later about specialist general trade stores that are emerging or indeed small general trade. So that's really the 3 segmentation variables that are starting to change the opportunities of how India consumes CPG. And this is the 24 sell grid is the way we think about growth for HUL as the largest CPG manufacturer in the country. And I'm going to take an example now of the hair care market and explain some data points to you. If you think about the hair care market and you look at the growth in hair care, the delta growth in hair care, if the urban affluent contribute to x delta in hair care, the rural value seekers contribute to 2x. It's just map, right, guys, where they live, the consumption opportunity, that's how delta comes. So if urban contributes to x delta, rural, this is the fact. This is past historical data. I'm giving you market historical data. So this is how markets grow. Now when you think about why does this happen, and let's spend some time around hair care. I'm just using hair care as an example. I could have chosen any example. In rural, hair care grows through 2 vectors. The first is consumption and the second is premiumization. What's the change that's taking place on consumption? The first is as consumers become richer, as they have more access to tap water and rural, they start to change the number of times they wash their hair. Makes sense, right? The more money that you have in your hands, your access to running water in your home, India's wash frequency is under 3 days a week. They start to change the number of times that you actually wash your hair. And this is, of course, fueled by all the aspiration that is taking place across the market. Of course, the market also premiumize and in rural as well, you will have a huge opportunity for premiumization. If you look at the large cities, hair care will grow through increased penetration. So what happens in a market like hair care? In a market like hair care, and this is something we've been study for hair care markets around the world, markets in hair care moves from cleansing to just shampoo, cleansing and -- your hair to care. that moves from just a hair cleansing market to a hair care market. What does that mean? From just using a shampoo, you start to add products to your hair care regime. So you add a conditioner, you add a mask, you start to add styling products, treatment products, and that's how the hair care market evolves. And this happens because consumers start to change the way they look after their hair. More hair straighteners are entering the home in India. So from x in the past period, it has gone to 1.6x. And of course, social media is fueling this change. With me so far? Now if you think about it, there are 4 strategies that we have or 4 opportunities to unlock growth. And very simple, for the democratizers in India, the most critical variable of growth is consumption increase. And I am going to show you data which will say that in India, the consumption-led growth is far from over. So the first variable of growth is in hair care, just changing the wash occasions means they use more shampoo. I'm giving you an example to bring it alive. So there's a consumption-led growth taking place amongst democratizers in the country. The second is, of course, in terms of premiumization, which is as consumers seek more benefits, they premiumize the consumers and they premiumize in terms of price per mil. So that's the second vector of growth. So if you think about small towns, rural, predominantly the middle consumer, the 60% consumer that I talked to you about, the premiumizers, they will grow through premiumization. The dominant growth -- and this is not to say, right, these are neat steps, right? They're not neat. It's where the dominant growth will come from. In large towns, in modern trade and GT, growth comes through new usage, which is more users through market making, and that's how growth comes. So you start adding from a shampoo, you start adding masks, conditioners. And when you think about online in large cities, growth comes through completely new formats through masstige and prestige predominantly. And that's really the 4 growth spaces that will emerge for India across time. If you think about the HUL portfolio in that context in hair care, it's absolutely clear. There is no portfolio that is better placed for all 4 sources of growth than HUL because we have a lion's share of the market in sachets, that's the consumption-led growth. As consumption-led growth happens, Clinic Plus and Sunsilk are best placed to benefit from that increased hair wash frequency that is taking place in the country. As consumers upgrade, they move to Dove. Dove is the largest premium shampoo in the country. You will hear Harman talking much more about this. Then they start to ask and we are market making in hair, in conditioners, in masks. And online, of course, we are focusing on Masstige and different new brands that we're entering with. So that's really how you should think about the HUL opportunity. What I want to land with you is it does not exist for HUL in just one pocket. Given our size, our growth pocket exists across this map. And that's the way we think about our growth. And our resource allocation follows this. So if you think about it, Clinic Plus focus will be on democratizers, especially in rural India. And that's the focus for Clinic Plus. If you think about Dove, Dove's focus will be on the premiumizers across the country, especially in small towns and Tier 4 and rural. If you think about Nexus, the entire focus of Nexus is online. So it starts to give you a sense of the growth pockets of resource allocation for HUL across this map. Let me show you a video that brings this to light. Can we have the video, please? [Presentation]

So with that, let's move to HUL strategy to win -- our strategy, as we are calling it, is winning in new India. Our focus will be to deliver competitive volume-led growth. That's what we've always said. We're going to show you underneath the hood how we're going to do this today. Let's start with the 4 spaces that I called out, consumption, and I'll show you the facts on consumption-led growth and the opportunity that we have, premiumization, market making and new spaces. And we'll talk a little bit about all 4 in some detail. Underneath this, what I want to show you is how we see our growth algorithm. We see 40% of our delta coming out of consumption and premiumization, 40% of our delta coming out of market making and 20% of our delta coming out of new spaces. So that's how we see our growth algorithm. Three key enablers, and I will talk you through it in a lot of detail, crafting sexy desirable brand, creating a future-fit GTM where we deepen the distribution moat that we have and using AI as a moat. And you're going to see all 3 of this in the afternoon today and what's underneath the hood. Our value creation model is generating the fuel for growth. We will talk about how we deploy the fuel for growth, the step-up we will do for capital for growth and delivering volume-led competitive profit growth. And all of this is something Niranjan will share with you later on. And of course, underpinned, and this is very important by talent, culture, the winning culture and ESG. So that's really how you need to think about it, and we're going to spend much of the day going underneath the hood of this chart. Let's start by talking about consumption, which is the first bucket of growth as I talked to you about. Let's start with dishwash. This is an example. I showed you hair care. I'm going to now show you an example from dishwash. If you look at dishwash, the way dishwash is changing is linked to a tap water access and rural. Secondly, LPG change. Now a lot of you who do not understand will ask me, what is LPG got to do with dishwash. LPG, the change in LPG is the change from wood fire cooking to LPG cooking. When that happens, the way consumers have control on the fire changes, it changes the way cooking stains happen. And it changes, therefore, what we are cleaning because imagine how you cook over a wood fire versus LPG. So it has a dramatic change in what consumers are seeking. It also changes the other proxy product that is used in the country is ash. And as that starts to change because it's not available anymore, people move to branded goods. So that's the change taking place. But even today, the per capita consumption of dishwash Thailand versus India, Thailand is at 3.5x, the dishwash consumption versus India. Why does this happen? As people get richer, you change the way you eat. So you have different cooking vessels, different vessels in which you serve, different vessels in which you eat. So when you are more affluent, think of how you eat, think of how a consumer who is less affluent eats. So just the sheer number of dishes starts to change. The variety of dishes also starts to change. All of you, I'm sure, own coffee mugs and your own fancy, utensils. So again, it starts to change what your cleaning starts to change. And therefore, what we are trying to clean start to change the number of vessels. And that's the consumption-led growth that starts to happen as people become more affluent in India. Let me show you some numbers on why we are best placed to get a lion's share of this consumption increase. Vim is the #1 brand power in dishwash, 4x the RMS of our relative competitor, and we have 90% value-added distribution. So as we get -- as fuel this consumption-led increase, we are best placed to get a lion's share of this consumption-led increase. And this is not the case just in one category, and this is probably the most important thing that I would like to share with you. This is across our categories. If you look within India, I showed you the boxes of the value seekers and the affluent on the right side. Remember in the 24 sell grid, the value seekers in India, they use x in laundry, the affluent use 1.2x. In soaps, if they use x in the category, the affluent use 1.3x. In tea, if you use x in the category, they use 1.5x. In shampoo, they use x in the category, the value seeker, they use 1.7x. If you look at now premiumization and you look at the data on how premiumization is taking place, it's quite simple, right? India stands at an incredible inflection where the premiumizers that we talked about are now at the household income of INR 3,500 to INR 4,000. And at that moment, we have seen in many markets, premiumization starts to inflect. And you compare it with other markets in the world, the 60% of our population that we talked about stand absolutely in the right position. And our portfolio is structurally advantaged in premium. We have 1.3x the relative market share to our mass business. So 1.3x market share in premium as compared to mass. So we really have the structural tailwinds. So as the market premiumizes, HUL will grow market share. Very simply, if we stand still, we grow market share. But most importantly, it is our brands. We have the premium brands that consumers love and desire across categories, whether it is Dove, Surf, Horlicks, Vaseline, Vim, Red Label. These are all the #1 brands in that category amongst the premium brands of the category. So that's really the most important data point is that we own the #1 brands in the category and equity leaders of the category. We are investing disproportionately behind these brands, 2x more investment versus the average, 60% of our spend on these brands are on digital, and we are investing, and Neil will show to you later be building specialist channels where many of these brands sell. Let me give you one data point on Dove, just using Dove as an example. Dove is Unilever's largest global brand. In India, it has had huge -- it's our fastest-growing premium brand. I'll give you one data point. Dove used to be #9 in terms of brand rank for HUL. Today, Dove is already the #5 brand rank for HUL. Dove will become the #2 brand rank for HUL. That's really how we are building Dove. And why is it happening? It's happening because not only are we making Dove more desirable, but we are extending Dove across category. This was Dove in 2022. This is Dove today. I hope you see the difference and the difference is obvious, both in the step-up of desirability, but also in how we're extending across categories. Dove versus just a soap and a shampoo is today in body washes, it's in hair treatment. And our latest launch is the tube you see, which is Dove entering skin care in body lotions. So that's really how we are extending the Dove brand, and it will become HUL's #2 brand. Let's now go to market making. Market making has always been the bedrock of HUL. As the market leader, this continues to be a large opportunity for us. And I've just given you some numbers on quarterly category penetration. This is not our penetration. This is category penetration quarterly and everyday use items, what the quarterly category penetration is. Hair mask, under 1%; sun care, 2%; body wash, 2%; dishwash liquids, 7%; laundry liquids, 13%; face cleansing, 17%. I just want you to look at the numbers below, which is Indonesia and the relative index of India to Indonesia. So for each category. Indonesia has 64x more hair masks compared to India. So that's the size of the penetration. This is penetration index. And that's what the data point is. So 64x more penetration than India. Sun Care is 17x; body wash, 16x; dishwash, 7x; laundry liquids, 3x; and freight cleansing 2x. So you just begin to see, and I just told you that 60% of India has the household income of Indonesia. So you can see how the market is absolutely slated to transform. And as the market leader, this is the biggest investment we make. And I'm just going to start with an example of laundry liquids. Vandana is going to talk to you much more on this subject. If you look at it today, today, liquids is only 7% of the laundry market in India. It's growing 20x CAGR. This has already happened in China, Thailand, many markets in the world. And how it takes place is as washing machines change and you start using washing machines, there are many reasons why you adopt liquids versus powders. So that's really what happens in laundry. And HUL has a well-proven playbook of market development, whether it's our understanding of the superiority that we require in products and what we do on R&D, the understanding of consumers, the deep intimacy and understanding of how to educate consumers, what the triggers are for consumption, what the barriers are to adopting these new products, large-scale sampling efforts, partnerships with other companies to build these categories or indeed now a social-first demand generation engine to start educating consumers about these categories. And it's underpinned by the investments, of course, that we make multiyear into market making. This is not just a year investment. This is a multiyear investment that we make into market development, and that compounding advantage is what we create for ourselves over time. So this is a repeatable well-proven model, and you will hear the business heads talk about this. I want to now focus on the 3 enablers behind our strategy. The most important one for me -- sorry, before I go to the 3 enablers, let me start talking about the new spaces. I just want to ground us back. What I first talked about is how we will grow with our existing business. So 80% of our delta growth will come out of this existing business. Now I'm going to talk to you about the opportunity for HUL in new spaces. When you look at new spaces, CPG is absolutely bringing with new high-growth segments, categories, no matter how you look at it. Lots of them which are starting to emerge. As you look at these categories, these are many categories which have adjacency to our categories. We are also present in many of these categories. What we will now do is we will double down behind a few of these categories, enter these high-growth select spaces. And of course, this does not suggest that we will enter all these spaces, guys. What I'm saying to you is there are many opportunities. We will decisively and selectively enter a few of these spaces, of course, based on our right to win, the profit pool and the sustainable long-term growth. So that's how we're going to look at it. And let me take 2 examples of new spaces that we've entered. The first is masstige skin care. With our acquisition of Minimalist, we are well on our way to build a strong masstige skincare business. Harman is going to talk to you much more about it. Since acquisition over the last 2 years, it has grown 2x, so 2x. So 2x growth in 2 years. Let me show you a commercial for Minimalist. [Presentation]

The next space I want to talk to you is the most recent entry that we've made. We're very excited with this entry. What we are talking about is our entry into protein. We have extended the Horlicks brand as we speak practically into protein. And I hope you get a chance today to try new Horlicks protein. We've entered both into powders and into ready-to-drink. Raj is going to talk to you much more about this. Why are we excited about our entry into proteins besides it being a fast-growing segment is our deep understanding of nutrition science and how we have formulated the protein to be digestible. So it's not just protein, it's protein and fiber, very important to digest the protein. And of course, the trust of Horlicks is a huge reason why we believe we will democratize protein. Let me show you the advertising, and we'll talk a little bit more about it. [Presentation]

I hope you saw that. It's very simply the idea is to democratize protein. So this is not just for gym protein, right? This is for everyday protein. And I'm sure many of us feel like our everyday is a workout. So indeed, all of us need some of that Horlicks protein do have a chance today to try it. both the powders as well as the ready to drink. [Presentation]

Talking about every day and how your everyday is a work and therefore, you need and so our opportunity to democratize protein. This is not about -- again, I'm repeating. This is not about gym protein. This is the need in India, given our diet, everyone in India requires protein, and we have the science to create digestible protein, and that's really the democratization that Horlicks is doing. Raj is going to talk to you much more about it later. Now going forward, I want to talk to you about the 3 enablers that underpin our strategy. The first and the most important for us is crafting desirable brands. This is the bedrock of everything that we have is our brands. And we are building and crafting much more desire in our brands. How do we do this? We do this through consumer obsession. At the heart of everything is the obsession we have for our consumers. We have 26,000 hours of consumer research that HUL does. We have a strong social listening engine that supplements this face-to-face contact that we do with consumers. And we have now, and we will show you some of our work in AI, an AI-enabled forecasting capability. This is the bedrock of everything we do to build desirable brands. And I'm going to show you some examples of how we are systematically working across our brands to step up the desirability of our brand. Let me start with the first example, that's Vaseline. Everyone knows Vaseline, 155-year-old brand, a body lotion and a petroleum jelly. That's how it's known in India. That's Vaseline. This is Vaseline now. So I'm going to do it again. That was Vaseline. This is Vaseline today. you would agree with me, much more desirable in new formats with Vaseline Gluta Hya, entering face with Vaseline Cloud Soft, entering lips. And so that's really Vaseline today and intrinsically social first with the idea that if it's Vaseline, it's verified because consumers trust Vaseline, and we have scientific data of the impact of Vaseline. So that's really how systematically we are doing this. And underneath that is the structure with which we use to step up the desirability of our brands. First, it is the science. We have billions of dollars as Unilever, we put into our brands. So it's really the science that goes inside our product. It's the aesthetics of step-up. When you look at Vaseline Gluta Hya, packaging is beautiful, beautiful sensories. It is intrinsically said by others, which is what I said to you. If it's Vaseline, it's verified and verified by consumers, by the way, and it is youthful, intrinsically designed for Gen Z. So that's really what we're doing, and it has resulted in double-digit growth for us in FY '26. So it's not just a structure. When we are systematically rolling this out, we are seeing the impact on our brands. I'm going to take another example, local jewel, beautiful brand for us in foods, well known by all of you, well known by everyone in India as a tomato ketchup and a jam. That's what Kissan has been, mostly targeted to children. And I hope you've seen the change in Kissan and the rollout of this new beautiful range. The team has done an excellent job in creating chutneys and what it brings alive in Kissan, and this is a new face of Kissan. And please also look at the new packaging on the tomato ketchup. So this is the change with the idea, and Raj is going to talk more to you about it of this idea of chat kar jao, and he will show you some communication. And again underneath the hood of how we do this is exactly the same framework. The science of the products that we build to create tasty chutneys, our food and flavor science, the aesthetics of our packaging, the sensories, and you would ask me what are chutneys sensories, but for all of us who know there is a silbatta texture of chutneys, which gives you that sense of scratch-made chutneys. And that course ground chutneys is what consumers are looking for, and that's an area of work that the team has done to create that silbatta-like texture. It is a campaign that is intrinsically social. It's been led by chefs and other people online. And it's very interesting how chefs are using chutneys. They're not just using Kissan chutneys as a chutney, but they're using it as marinade. So there's a lot of very interesting use cases that the community creates that is resulting in very interesting consumption of chutneys and of course, intrinsically youthful flavor hack for young consumers. So what I wanted to share using these examples is a systematic way in which we are infusing desirability into our brands and lifting our brands, making them more modern, more contemporary, more youthful. And all of this is backed by a new social-first demand engine. We reach now 30,000 creators in India, 60% of our spends are now on digital, and we have AI-enabled content studios, and you're going to see some of this work in the breakout in the afternoon. The next area I want to talk to you about is how we are going to deepen our distribution moat, building a future-fit go-to-market. Neil is going to spend time in the afternoon taking you through it in detail, but I will give you a flavor of it. To win in new India, we believe we have to deepen our moat of how we go to market with not just scale but also specialization. And that's what we are doing, whether it is a dedicated organization we've created in quick commerce or a new go-to-market that we have for specialist channels or indeed expanding our GT distribution, both through physical reach and through Shikhar, also the quality of our reach in rural, we are going through all of these to improve our GTM, and Neil is going to take you through this in the afternoon in much more detail. I wanted to just share with you something around our quick commerce organization that we have shared with you. We have an AI-enabled availability engine, targeted performance marketing, but mostly, we are in strong category-building relationships with our retail partners, where we are helping them drive category penetration in their channel. So whether you think of all the quick commerce players, we're working with them joint partnerships to help them drive the category in their channel. So that's the work that's going on. The next area that I wanted to share is how we are strengthening our beauty execution engine. This is a big area of growth for us. Harman will talk to you about the work that has happened to increase and improve and transform our beauty portfolio. Neil will talk to you about the end-to-end go-to-market that we now have in place with beauty-first capabilities. You're going to see much more of this in the afternoon. And the last enabler for us is AI as a moat. For us in HUL, this is an area we're working on. And here, the way we are thinking about it is we want to create an AI-empowered workforce of the future. For us, it is not just about the LLMs. The LLMs are now accessible to everyone. It is about the proprietary data sets that we own at the scale of HUL. And you're going to hear a lot about how we are going to use those proprietary data sets and really harness those data sets. really. So that's the work that we're on. This is end-to-end across the organization, but very focused in each pillar with the areas that truly matter and will make an impact on growth. And you will hear the team talking about it and how we are unleashing and harnessing the power of the proprietary data sets that we own as HUL. The last area I want to focus on, and Niranjan will talk you through it in detail is on our value creation model. Our value creation model has 4 pillars, and we will talk in detail and Niranjan will share how we will generate the fuel for growth, our focus on how we will deploy this fuel for growth and invest behind our brands, a step-up in our capital for growth and how we will deliver volume-led profit growth. And Niranjan is going to cover this section later on in his section. So that's really what I wanted to share with you to set up the day today. In summary, there is an incredible opportunity that stairs at us in India in consumer products. But the way this is emerging is it's a new India opportunity. To win in new India, what's required in each part of the growth pockets and that 24 cells is different and it is distinct. HUL will leverage the portfolio that we have because we have that scale advantage and the portfolio breadth to win across consumption, premiumization, market making and entering new spaces. Our value creation model will be to deliver volume-led growth and profit growth. Our execution will be powered by 3 enablers: crafting desirable brands, a future-fit go-to-market and AI as a new distinctive competitive mode. Our talent indeed, as always, remains the bedrock of our success and is the foundation of how we win. So that's really what I wanted to say with you. With that, I think, Yogesh, back to you. to take forward to the next section. Thank you, Priya, for unveiling our new strategy. We will have a short comfort break for around 10 minutes, and we'll come back here and hear the business units talk about -- business heads talk about the category presentations. Again, strictly 10 minutes break. Thank you. [ Break ]

Welcome back, everyone. Let's move to the next agenda of the day. In the last session, Priya -- you heard Priya talk about our strategy winning in new India. We will now hear from our business heads on their respective segments on how does the strategy come to life. Let me first call upon Home Care, Ms. Vandana Suri, Executive Director, to start off the first session.

Good morning, everyone. Welcome back. I'm Vandana Suri. I lead the Home Care business. I had the privilege of meeting some of you this morning with just a brief introduction for many of you who I have not met. I have 24 years of experience and 15 of which are with HUL and Unilever. Of the 15, I've done 3 years in Foods, 6 years in Home Care and 6 years in Beauty & Wellbeing. Just prior to this, I was the Beauty & Wellbeing lead and I run the business for Indonesia. And coming -- come this year in Jan, I'm back home in India and of course, back to Home Care. So with that, let me now move to the Home Care presentation. I will walk you through in the next 15 minutes, both the scale of Home Care, the opportunities that we have for growth and how will we leverage some of these opportunities as we go ahead. Just start with the numbers. INR 23,672 crores of revenue at 37% contribution to HUL, we are the biggest business that HUL has. It's built on iconic brands, of course, 9% segment margin. Many of you have been around for very long. In the last decade, we have grown this business significantly. We have, in fact, more than doubled this business at very, very strong CAGR. If I reflect back on what has really led to this kind of growth, there are 2 fundamental reasons. I think the first one is the biggest enabler for us is our deep consumer intimacy. We understand how the consumer cooks, how the consumer cleans. We understand this not just at an all-India level, but we understand this from a geographical lens as well. And that provides us the room to really craft the mixes and the brands that are required for this market. The second one, and this is really dear to us, at the heart of the business is our R&D capability, our deep formulation understanding that has time and time again been a differentiating edge for this business. And this is the reason this business stands where it does today. Before I move to this next chart and talk about growing in the new India, I want to put a statistic in front of you. If you look at just the home care spend per capita, in a comparable market like Vietnam, they are 2.5x of where home care spends per capita for India are. This, ladies and gentlemen, is our headroom for growth, and this is the runway that we have to take forward for the Home Care business. And with that, therefore, what does winning in new India look like? I will today walk across the 4 pillars that Priya spoke about. The first one is consumption, which is more usage. Second, of course, is -- and this is something we've not spoken about before. This is grams per usage that we will talk about. The second is premiumization. This is something that Surf Excel has done well. You've heard about this before. The third is market making. And while Home Care has led this even today between the home care -- all the home care liquids, our penetrations are still relatively low, and there's a huge opportunity for us to move ahead. And last, of course, is new spaces. We have entered the floor cleaner market with the wind floor cleaner in the last year. So this really is the bucket of winning in new India. Let me start by talking to you all about consumption because that is something that I want to spend a few minutes on. Why do I believe that there is big headroom for consumption increase in India? There are 2 big vectors. The first big vector is affluence. As consumers' incomes increase, their laundry consumption goes up. You'll ask me why. It's really simple. Our wardrobes expand. We have more clothes. We have more types of clothes. And therefore, as affluence goes up, consumption goes up as well. The second one is a really, really important vector, which is the adoption of the washing machine. What's happening in India is with more working women, this is becoming the one appliance that is finding a mainstay in consumers. However, even today, only 28% of India has a washing machine. In urban, that number improves. It becomes 1 out of 2. And we know that when washing machines come in, the consumption of laundry products goes up in those particular households. And therefore, we believe that HUL is best placed to drive consumption in this market. I think, first, our tiered portfolio, the fact that we have offerings across the tiers and that allows us presence in many more households than ever before. Higher availability. Some of our SKUs are probably one of the most widely distributed SKUs, not just in HUL, but across FMCG. And of course, the fact, and I spoke about this, superiority of products. We have data to believe that superior product helps us grow consumption with the consuming households that we have. And with that, today, I will talk to you about a brand that we don't often talk about. I will talk to you about Tier 3 brand, Wheel. It is better and stronger than ever before. We have reinvigated Wheel to become much more contemporary and to become much more competitive. We are now -- after overtaking our competitor, we are now the largest brand in Tier 3. It is a strong brand today because we have invested in the mix of this brand. It has the highest equity amongst its peers in Tier 3. And what is very interesting, if you recall, Priya talking about the 377 million Gen Z consumers, 2/3 of these actually live in rural and they live, of course, in Tier 4 cities. And we have made real relevance to them. In fact, our media deployment is digital first and is deployed towards rural. And that has really given us the benefit of really building on this brand, and this will, of course, help us drive consumption as we move ahead. Let me now move to the second and third pillar that we were speaking about, which is premiumization and, of course, the market-making opportunity. So premiumization, even today, and we speak about this offering because I mean it's been discussed. But even today, 57% of the market of laundry is Tier 3. It is 3 million tonnes which is still waiting to be premiumized. And of course, we know that the value realization as consumers move from Tier 3 to Tier 2 to Tier 1 actually improves as we go along. The second vector, of course, of premiumization is format upgradation. And with format change, whether it is to bars to powders and then to liquids, this is a well-known global change. As formats change, and we've seen this around the world as well, there is better value realization for us. Both of these vectors, as you all well know, are something that Surf Excel has used to get to scale, and these continue to be the key opportunities that we have for the brand as well. We have, of course, used these to scale Surf Excel. And like I said, we've seen a jump of 3x in volume and 4x on turnover over the last decade on this brand. And of course, this is sustained growth that we've had over here, and I will explain to you how we will continue this journey as we go ahead. The first one, which is premiumization. Driving premiumization with Easy Wash is a big opportunity. There is still 3 million tonnes, like I was telling you of mass powders and bars. We are the top equity in the market. And also a lot of these mass heavy consumers tend to be in Central India, where our deployment is very deep. We use hearts, we use digital wall painting, pack price architecture to ensure that we have the right pack going to them. And therefore, this makes it something that we have seen a great record of, but we will continue to do so with Surf Excel Easy Wash. The second one, and I think Priya alluded on this even earlier, even today, the category penetration of liquids is only 13%, and we're talking about quarterly penetration here. And I spoke about Vietnam earlier, Vietnam is 5x to where India is today. And therefore, huge headroom for us to grow in liquids. Two key things to -- that I wanted to call out. One is, like I mentioned, when consumers buy washing machines they use washing machines, that is a point of reconsideration for them to use a new format. And we already see that. We see 4x the amount of penetration in machine users versus non-machine users. I think that's one. The second thing is one of the biggest barriers that consumers feel on liquids is are they efficacious enough. And through our marketing mix and through our product formulation, and later in the afternoon, you'll hear talk about that as well. We have tried to allay the fears of consumers and created a formulation and a mix that actually gives them the right efficacy so that they are able to adopt these liquids as we go ahead. Let me take one more example. Priya spoke about dishwash, and she talked about dishwash bars in consumption. I'll talk about the format upgradation opportunity that exists in dishwash with liquids. How do consumers wash their dishes today? Today, they wash their dishes largely with bars. 75% of the market is bars. And therefore, Vim as the iconic brand is leading the market development of the liquid segment. And we are doing this in a really sustained way because we have identified the right trigger for it. And let me explain the trigger to you a little bit. 2/3 of the country is non-vegetarian eating. What tends to happen is nonvegetarian food leaves a little bit of an odor on the utensils. And the liquid that we have is formulated in a way that not only does it clean, but it also takes away or eliminates the orders that are there, therefore, making it a big trigger for consumers to come in and try the products for us, and we have seen good success on this for -- with Vim Liquid. And of course, with that, Home Care has been the pioneer of really making markets. We have a proven playbook for market making and that too at scale. We have done this at scale over multiple years. I will just explain the model that was called out in the earlier presentation. I think the first one, and I spoke about this is a superior product. And I use the Vim example to explain that to you. The liquid it works better than the bar. The second is having a clear trigger for trial. Let me take the Comfort example. In the monsoon of today, our clothes tend to sell musty. And therefore, the promise of freshness, the promise of fragrance allows consumers to come into this category and try the comfort fabric conditioner. The third one, of course, is education and sampling. We do this at mammoth scale. We do this in consumer homes. We do this in store, and we do this through quick commerce. There are multiple ways in which we do this. The fourth big pillar is partnerships, which are a critical way in which we are building some of these market-making segments. Let's take the example of laundry liquids. We are partnering with key washing machine manufacturers because we know that the coming in of the washing machine is a key changeover in a consumer's house, and that is when they really change the format that they're using. So that's partnerships. And the last but not the least is we have a first trial pack. And these trial packs are widely distributed so that consumers are able to access and buy into these categories, try them before fully adopting them. So that really is our proven market-making model at scale. Therefore, if I had to summarize Home Care, Home Care is a scale business. It has a proven track record. Critical to our success has been both our deep consumer understanding and of course, our R&D capability that allows us to give consumers better products and experiences. We have tremendous headroom to grow. I cannot underline that enough. And we are using levers of consumption, premiumization and format upgradation towards that. We have a tiered portfolio, iconic brands and a high relative market share that makes us the best place to win. And of course, last but not the least, the stuff that has kept us going, a proven market-making playbook that helps us unlock opportunities and unlock them at size and scale. So that's really the Home Care presentation. If I could you have the home care AV, please. [Presentation]

That's it. on home care, thank you very much. I'll hand over now to Harman to talk through us through Beauty & Wellbeing.

Thank you, Vandana, and a very good morning to you, ladies and gentlemen. I'm Harman Dhillon, the Executive Director for Beauty & Wellbeing. 23 years of Vorkex, 20 of those in HUL and Unilever. And in the next few minutes, over the course of my session, I'm going to talk about how HUL B&W is not just riding the beauty wave in India, it's shaping it. It's my absolute privilege to introduce you to our business. We are the #1 beauty company in this country. INR 15,000 crores in turnover, industry-beating segment margin. But what gives me and my team the maximum joy is the 7 brands which are in the INR 1,000 crore club. What is even more delightful for me to share with you, the next brand, which is going to join this August club is Minimalist, that is scale, profitability and a stable of most loved brands across the country in one place. That's B&W India for you. I'll quickly get into how we are seeing the beauty wave shape in India. This is how we are seeing the beauty market shaping up. And I just want to reiterate the fact which Priya really alluded to, the next wave of beauty in India is not going to be one in one India. The next wave of beauty in India is going to be one in two parts. I'm going to repeat that. The next wave of beauty in India is going to be one in two parts because we need to segment India, given the affluent spectrum, beauty behaviors, beauty infrastructure, beauty realities of these two spectrums is very, very different. Let's get into the first part, which is the democratizers. The largest population in the country, very, very low per capita consumption, almost negligible format penetration, still dominantly general trade heavy shopping missions and of course, discovering beauty through digital, but TV continues to be the mainstay for a lot of media vehicles, which they are looking at to understand about brand. Contrast it to what's happening with the power spenders and the premiumizers. They are the ones who are already thinking in their mind like the French people, given that's their per capita consumption or they are thinking like what Indonesia is doing. Of course, vis-a-vis the democratizers, the per capita consumption is much higher. Format penetration is already in double digits. Omnichannel is the reality. They are as comfortable buying online, offline, discovering in both places. And last but not the least, beauty discovery, beauty understanding, beauty education has all moved online. Very few companies in the country can play both of these segments at scale. We can because this is different beauty reality, different beauty habits, different beauty infrastructures for these two Indias, and it requires different ecosystems. What we have done is build these two ecosystems to win at both these ends with scale. Let's start with what we have built. I will talk first about the portfolio. This is the portfolio I shared with you in 2024. Over the course of the last 2 years, what we have done is sharply positioned and segmented this portfolio to cater to all of the India, especially the two big ends of the spectrum. We are not stretching a single brand across. We are curating the portfolio which is going to cater to the power spenders and the democratizers. And as a result, you can see the growth index, 30x growth at the top, 3x growth in the middle. And of course, at the core, we continue to get a decent growth in the cluster of brands. But what is most unique about this growth is where the delta is going to come from. The scale of the population, the headroom for penetration, consumption being the highest at the bottom, even for us, despite the growth index being 30x at the top, our delta contribution from the bottom which is the 3x and the x is going to be far, far higher than the delta contribution that we will get from the top. That is just sheer numbers, our scale, right to win and headroom and opportunity for us to really get more and more consumers into the beauty habit because our start point is 1/3 of Indonesia, 1/6 of Thailand. You take any category, we are starting at the back. But with affluent, that's where the market is going. And that's why I said the next beauty wave is going to be across two Indias. and we are uniquely placed to win in both these Indias. So this is the portfolio. And let me get to what is the ecosystem we have built and the moats that we have built, both in terms of how we are reaching her, which is the infrastructure where she's buying and how are they discovering beauty. What is the necessity of the day, at the top, for the power spenders and the top player of the premiumizers, we need curated end-to-end beauty selling systems. Cordoned off infrastructure for beauty, feet on street who know how to sell beauty, a huge and largest network of beauty advisers who are selling beauty, teams coordinated and cordoned off for selling online beauty, signals which are coming in and helping us making that system sharper. We are going to see a lot more of that in the afternoon when you meet deal on this. Compare and contrast that to what is needed at the bottom. We need to carry all our sachets, all the access packs on the 9 million outlets that we have, unparalleled distributed scale, that's where we are using the other ecosystem to reach democratizers with all the access that we need to create on beauty to get the next set of consumers into beauty. This is just on distribution. Now let's talk about discovery models. First, at the bottom, one message, massive reach, long period of time. That's the old way that we continue to market with very desirable brands, and that's very, very effective because you need consumers to get into the habit. Contrast with ecosystem that we have built at the top, almost 500 messages per brand curated for thousands and thousands of cohorts going out every month so that there is compound branding, which is happening in their minds, which is a completely different way of marketing to the top end, which is the power spenders. Both these systems are at play, and we are the most efficient and effective when it comes to reaching the beauty audiences in this country. Ladies and gentlemen, for us, the portfolio, the RTM and the customized reach models are going to be the competitive moats, which no other organization in this country can copy. Proof of the pudding. You'll ask me, okay, ecosystem on a page is good. Where is it working? Do we have evidence? And I want to share with you, I'm delighted to tell you that for us, the flywheel is getting the consumers to get into beauty at the bottom and catch them as they upgrade on the top. And what better metric to measure than the share of new triers at the democratizers end. We are the leading player, #1 player of share of new trials in beauty, whether you look across skin care, hair treatment, light moisturizers, we are getting more and more consumers to build regimes, try out new products. And as they upgrade, all our brands, they are the ones who are gaining penetration at pace with the power spenders and the affluent. So this is for us the most heartening chart because at the end of the day, the ecosystem is working and the proof is in the numbers that we are seeing. That brings me to what are we going to focus on from here on. Priya already spoke about the 4 pathways: consumption, premiumization, market making, white spaces. And she spoke about in detail, one of the best categories that we have hair care and the consumption opportunity there. I'm going to focus on the other 3 pillars from the lens of B&W and taking a few examples. The first one being premiumization. It gives me a lot of -- actually, it's a matter of privilege because as a young brand manager who joined this organization many decades ago, I launched this brand in the country, which is Dove Hair. Today, it is the largest hair care brand in the country. And well, well poised to really take on the opportunity, which is the premiumization opportunity in hair. What is the opportunity? The mass volumes in hair care continue to be 8x what we have of our premium volumes to begin with. That's the headroom where we can really -- that's a source of growth where we can upgrade. Second, we know that penetration of conditions, Priya spoke about it. When you go from the spectrum, bottom to up, the penetration continues to go up. So we need a brand which can come in and really get market making going over there. And last but not the least, with increasing affluence, the regimes or the number of formats we are using per occasion continue to go up. And what better brand to appropriate that, Dove, the largest hair care brand with a very, very strong point of view on beauty in India in a very cluttered space. But most importantly, it is the most loved Gen Z brand, whether you look at urban India or rural India. And what are we going to do about it? A very deliberate playbook, at the top, continue to premiumize with really cutting-edge technology, which is higher order demand spaces, making sure that we are reversing damage, which is 3-year old from your hair, bringing world-class technology in hair treatments. Priya again alluded to it. These are the masks, these are the bond repair serums, all of it at the top for the power spenders. But the same spine, the same science goes to the democratizers in access packs, whether it's in the shampoo sachet or it's the access packs that we have for the mass or even what we sell, which is the weekly pack in modern trade. So the same efficacy, making sure that we are catering to the power spenders at the same time, making sure that we are relevant to the democratizers. And this is not just signs on which we are going to build up. We are going to make sure Dove is more culturally relevant, sharper, continues to champion for an inclusive beauty point of view, more modern, more and in return, continuing to build the brand love, which it already enjoys at a massive scale in the country. So that's the example I had to share on premiumization. Switching gears, I want to take the second example and talk about market making, and what better category than to talk about sun care. The category no pun intended is on fire, and why is that the case? There are structural tailwinds behind it. India is getting hotter and hotter, but the most important one, 200 million-plus women are stepping out to work. And when women step out, they do want sun protection. This category is being built on advocacy. Advocacy, which is educating the consumer on the need for sunscreen, and that's the ecosystem that we are creating for structural growth to come through this for a long period of time. So what have we done about it? We have made three decisive moves. First and foremost, a multi-brand play. 2024, we had one brand, which is Lakmé. It's the market leader in sunscreens and offline, but we got 3 new brands added to the portfolio to talk to the different consumer segments. Second, 100% of these brands have the best-in-class in vivo tested technology, addressing all the barriers, heavier sensories, no white which are already in the market, and we know the consumers are loving it. And last but not the least, 600x step-up in our advocacy model because sunscreen is a necessity, and that is something Indian consumers, both women and men need to be told today, given the adverse impact if you do not use the right sunscreen with the right efficacy, that's what we are doing, and that's the step-up that we have done. Coming again to where are we going from here? Again, the deliberate 2 playbooks in play. At the top end, minimalist with the sunscreens, which are really light sensor. Simple, sunscreen is designed for sensitive skin in fluid format, Lakmé, fast absorbing sunscreens in 5 seconds, which don't leave a white But what makes me most proud is the way the team has landed, a INR 10 in vivo tested sunscreen of SPS 50. INR 10 is $0.10. Both these are live on Lakmé and GAL and Glow & Lovely is going to take the charge to not just market development of sunscreen. It's about doing business in skin care in a responsible way because sun care is responsible skin care. And that is why we are ensuring we have the best technology, best products and they are all in vivo tested. And when they go to the consumer, it gives them the protection that they need, which is where the market is growing. That brings me to the third and final example of my presentation, which is the white spaces and the two that we have called out, which are super critical for us is Masstige and Wellbeing. Let's start with what is shaping the structural growth in these categories. India, we thought of was used to be a very cosmetic beauty market. What has changed is the power spenders want more science in the products and they're willing to spend top dollar. But at the same time, looking good is being interspersed with feeling good and living good, which is why the wellnessification of beauty is here and the lines are between well-being and beauty because beauty is now an inside-outside concept. We have made bold moves in both these spaces. The first brand I want to speak about is Minimalist. This is a breakout acquisition, already a INR 900 crore ARR, soon to join a INR 1,000 crore club, 2x scale up since acquisition, one of the fastest scale-ups that we've seen. And what is powering this? We have been radically, radically focused on maintaining the ethos of the brand, which is full transparency. That's how the brand has been built. We are ensuring in everything that we do that comes to the fore. The second that we are doing is unlocking synergies, both at the revenue and the cost end given the scale of HUL. And that is really helping us take a well-loved brand to the off-line stores, to the online stores and selling it in a way which is really needed for beauty. And the third, by no means the least, with the massive R&D infrastructure and patented technologies that we have, we are infusing blockbuster innovations in the Minimalist portfolio, which are going to make sure that this growth is sustained for a long period of time, and this continues to be one of our fastest-growing brands in the Masstige space in Beauty & Wellbeing. The second brand, actually, the segment I want to talk about is VMS. It's becoming a really cluttered space at the top. And for us, we are very, very clear, we are going to play this with a differentiated portfolio. The first brand I want to talk about is OZiva. This is a plant-powered science brand, which goes to the consumers, very differentiated from what you have in the market. And I'm delighted to tell you since acquisition, we've scaled this brand 4x. And we've done it in a very, very disciplined manner, making sure that it stays in the VMS space and not being very proliferating it across topicals and so on and so forth. So very disciplined, very focused on VMS, 4x scale up. And joining this brand from our global portfolio is the global blockbuster, which is It is the most loved Gen Z brand for hydration in the U.S. and across many other markets. We've got this to India and very quickly. This has become the go-to brand for the Gen Zs. And what is going to power this growth for us in Wellbeing, again, our global expertise and leadership in Wellbeing across the world, best-in-class R&D and regulatory frameworks, which are needed to really win in this segment. And last but not the least, Liquid IV is just one of the brands from the global portfolio that we've got. There are many other brands in the portfolio that we plan to bring at the right time, whether it's Oli, Grooms and so on and so forth. The question you may ask me right now is that, okay, you've shown us two examples. You've shown us examples of how acquisitions have really scaled up well. Here, I wanted to talk about not just acquisition, the playbook that we have built at the top. For the consumers who are the power spenders, it is working even for brands which we have incubated. Simple, it's a brand within the Unilever portfolio, 10x scale up since we started it in India, and this is scaling up at a breakneck speed, already crossing INR 200 crores in ARR. Again, what is it going to be powered by? Very sharp differentiated positioning for the consumer in the country. This is designed for sensitive skin consumers in this country, Gen Z first consumer community building and last but not the least, a very strong omni playbook. With this, I want to just reiterate why do I feel that HUL B&W is most well poised to really appropriate the beauty opportunity in India. First and the foremost, we have scale, profitability and whole host of most loved brands in this country. More importantly, that is supplemented with deep consumer intimacy that we have built across the length and breadth of this country for over 90 years so that we can read the market, spot the market and then deliver products and brands which delight consumers. Third, we are very, very clear the next wave of beauty, and I keep repeating that, is going to be one in two parts. There is no company which can stretch across the board simultaneously at scale at one go. HUL B&W is poised to do that. Fourth, we are going to be ruthlessly focused on the pathways that we have told you about consumption, premiumization, market making and white spaces. And last but not the least, all of this is going to be powered by our transform portfolio, curated route-to-market structures and a very, very curated marketing media model. And with that, I want to just leave you with our vision, continuing to be the beauty shapers of India and what better time to give you a flavor of how we are doing the marketing to this beauty consumer, which is building memorable brand structures at one go, but at the same time, engaging on digital content day in and day out because that's where we need the thumb-stopping content and virality. Can I have the B&W AV, please? [Presentation]

That's all from me. Thank you for your time, and I'm going to hand over to Vipul to take you through Personal Care.

Thank you, Harman. Good morning, everyone. My name is Vipul Mathur. I've met many of you earlier, but I've been with HUL for the last 23 years and running the Personal Care business for the last 2 years. I'm delighted to take you through the Personal Care journey. So to start off with Personal Care, a quick look at the numbers, INR 9,500 crores business, 19% segment margin, 15% contribution to HUL. But what we're most proud about are our 5 brands that are INR 1,000-plus crores in size and a force to reckon with in every way. This is the strategy that Priya had shared with you, which is really about winning in the new India and how it translates into for Personal Care is really on this chart. consumption, premiumization, more users in formats of the future and new spaces. Each one of them has a big, big job for us. And I'm going to spend a lot of time talking to you about how we are making progress on these. Before I get into the detail of that, however, let me take a minute to just help you understand how the evolution of Personal Care categories has been happening in India. And while this has been made from a point of view of skin cleansing, it is actually true across all personal care categories. What starts with basically what is a hygiene benefit of the category, which is the core category benefits very quickly starts translating into higher order benefits. And beauty and aspiration is a large part of how personal care categories, especially skin cleansing evolves and brands need to start solving for needs of consumers in that space. And then the next ladder up on that is really specialist needs and formats that really address needs of consumers as they go up the pyramid and also as their requirements from personal care keep evolving. And how our brands are going to really go through these needs is really at the heart of our Personal Care strategy. So let me start by the first point, which is really around consumption. Of course, the core category of skin cleansing, which is for which all this data has shown, is seeing that even if you look at rural or urban, there is a difference in the growth consumption. Rural itself has got headroom to grow to even catch up with urban and rural, therefore, growing at 1.8x the pace of consumption growth at urban. So that headroom is there to catch up. Why is that happening? It's happening because of changes in the lifestyle, changes in availability of water, changes in the amount of sharp penetration. And that over a multiyear period means that consumers have greater expectations for their Personal Care needs, and that leads to more bathing occasions, more consumption and so on. If you thought that rural to urban is one way of cutting it, Priya, of course, showed you how between lesser income folks versus higher income folks, there's a 1.3x growth in consumption. But even India versus other countries, and in this case, Brazil, as an example, there's a 2x difference in consumption. So consumption itself is going to be a critical driver over a multiyear period for growth in this category. And as market leaders with our big brands, we are best placed to ride this consumption wave. Of course, the consumption is going to be driven across our brands, but the one brand that's going to be at the heart of this is Lux. And Lux as a brand is, of course, the OG beauty brand in the personal care portfolio, but it's a brand that needs to be continuously evolving and transforming, and we have been doing that quite actively through the last 1 year. Science, of course, is at the heart of the Lux journey, and we've spoken to you at length about the Stratos technology that we have, which is at the heart of the science that Lux has on offer. But when it comes to aesthetics, we have evolved from a packaging perspective, how the brand has transformed. When it comes to sensorials, not just the bar of soap, but even the body wash is really showing how sensorial delight is at the heart of the bathing process and Lux bodywash is showing that quite actively. When it comes to being on the social-first platform, Lux is now really showing the way with that with a lot of communication, especially centered around bodywash. And the brand proposition of Lux has been really now designed for Gen Z. And that is what we are trying to change again and again with our proposition shift. And this ad will show you how we are transforming this brand going forward. [Presentation]

Beginning of the journey on Lux bodywash, lots more to follow on the brand itself and on bodywash, and that's why we are so excited about the brand that Lux is and how it's going to transform the Personal Care journey. While that's the core consumption theory, the next part of this is really premiumization. 7 lakh tonnes is the size of the mass skin cleansing business across category -- across the category. And that is the headroom that premiumization has because every consumer in India is aspiring for better benefits -- for more specific benefits that our premium brands have to offer. With Dove and Pears, we have not just more premium bars, but very, very differentiated portfolios to offer. Dove with its serum bar technology, and Pears with its glycerine bars are fundamentally differentiated products and are showing that consumers have very useful benefits that they can get with these new very differentiated products, and that is behind the huge growth that we are seeing behind this business. So mass bars versus premium bars, of course, the premium bars as a category is growing much faster, but we are outpacing that premium bar growth quite handsomely. And Dove and Pears both are at there. And the really good thing is that not only are these brands both very differentiated from mass, but they're also very differentiated from each other. So we really have a two-engine premiumization going, and that is why premiumization is so critical to our strategy. But no part of the skin cleansing journey is complete without talking about bodywash. And of course, bodywash, Priya spoke earlier about what is the difference in the penetration of bodywash in India versus any other market. In fact, India is one of the last few markets left in the world where the penetration of bodywash is limited. But it has hit a point of inflection where the pace of adoption of bodywash is now seeing a rapid shift. And that is why we are seeing a 4x difference in the growth of bodywash versus the rest of skin cleansing. And our business is outpacing this quite handsomely. Our business has grown 4x over the last 4 years and is now growing quite handsomely to make a material difference to the delta of Personal Care. We are blessed to have a portfolio in bodywash that really addresses these needs. And what we are doing with our portfolio between Dove, Pears and Lux is driving market development of bodywash quite actively. Vandana spoke earlier about the market development model that HUL leverages to scale and bodywash is seeing the full impact of that and the full benefits of that. We are starting with our social-first communication, talking about how to use bodywash, which itself is one of the barriers that many consumers feel because they don't know how to use the category. So using that to educate them and help them understand the big difference between soaps and bodywashes. As we did a lot of consumer work, by the way, to set up this communication, we realized that the big difference that consumers feel is that when they start using bodywashes over soaps, they find a big difference in the stretch of the skin with soaps versus bodywash. And that difference takes 4 to 5 bathing occasions to really understand and appreciate. And that is why generating trials is so important. So we have used the might of the HUL system and the scale that it provides to get a massive amount of sampling going on bodywash that with a very powerful demo is a great way to educate consumers about the difference that a bodywash provides. Our products, of course, are extremely strongly formulated with a lot of technology from across the world that has been put across our brands. And that, coupled with our physical distribution that our sales team provides to us means that this is a very, very scalable market development opportunity. And like I said, this is now becoming a real point of inflection and making a material difference to our growth. Moving on from bodywash into Oral Care. And I want to remind you about our really the OG SASSY brand, which is really being made for the youth, which is Close Up. It's a brand we are so proud of. It is the original Red Gel toothpaste, but also the brand that's made iconic with its Pass Aao communication. This brand is at the forefront of really redefining codes of oral care. And there are two parts of this journey. One is, of course, the core of oral care, which is Close Up, which is freshness, which is 1.3x growth over the segment. And we know that apart from consumption growth, freshness itself is going to be a big driver of growth in the Oral Care category and Close Up is the market leader there and doing quite well with the penetration growth over the last couple of years and more. But more than freshness, the part that we are super excited about is the growth story of whitening. If you go to any modern trade customer or market outside India, you will see that whitening in the oral care aisle is sometimes half the aisle. That's the potential that whitening has. And that's why you can see that versus China or Turkey, we are 120th the kind of contribution of the segment, but this segment is growing very, very rapidly because consumers are feeling the need for even cosmetic beauty benefits in their oral care products. And Close Up is really strongly placed to make this benefit count and make sure that it shows up how cosmetic beauty benefits can be provided even in our Oral care brands. So Close Up is now outpacing the market and is doing exceedingly well on its white now journey. And lastly, I want to talk to you about the opportunity of Deos. It is a new space for us. We are present in the market, but we are seeing that the opportunity that lies for us in Deos is really bringing functionality of the product to the core and providing that benefit to working women. As the number of working women are stepping up dramatically, the need for very functional odor protection and sweat protection benefits is rapidly expanding. And we have an opportunity to really fundamentally bring odor protection and functionality to the deodorants category, and that's how we are going to build it going further. Of course, Unilever is globally the market leader when it comes to deodorants and it has technology that's unparalleled and patented. And that is why we are so confident about what deodorants can mean for us in the Personal Care category. So lastly, I'd say in summary, we have the opportunity to drive consumption. Consumption has massive headroom in this category. We are transforming the market when it comes to premiumization and market making, being the market leaders and being over-indexed in both premium categories as well as bodywash, we are best placed to get that advantage. Our brands are building desire across skin cleansing and Oral Care, and we are leveraging a very proven market-making model to drive bodywash with great intensity, to bring a lot of these brands and the power of that story to life, here's the Personal Care story. [Presentation]

Thank you. That's it from Personal Care. And now I'd like to hand over to Raj, Rajneet Kohli, who is the Head of the Foods business.

Thank you to all of you. It's an absolute pleasure to be here today. My name is Rajneet Kohli, Raj for all of you, and I have the privilege of heading HUL's very exciting Food and Beverages business. I've been here for 1.5 years. Out of the 30 years that I've worked, 23 years happened to be in Food & Beverages. So a bit of more insight from being working with Coca-Cola, Domino's and Britania. Today, I'm going to talk to you about three things. One, I keep hearing when I joined in, there's a party happening in Food & Beverages, where are we? And there's a huge potential there. Second, there's an immense doubling down that we're looking at and reimagining our portfolio. And number three, we are absolutely geared up not to be only in that party, but actually lead that party there as well with a single-minded focus of how do you accelerate growth. And let me start by saying we start from the position of strength. The reason I say that, because we are a large business of foods and beverages, INR 14,000 crores with an industry-leading profitability of 20%. But not only that, really happy that we have seven brands, which are iconic brands of INR 1,000-plus crores business boost really adding. What does that mean to me, all of us? It means that every Indian household knows this brand, we're at scale and has an opportunity to really premiumize as well as stretch into different categories. And we just don't play in these categories. We actually lead these categories. We are in tea, the #1 brand with 5 iconic brands that you can see there, Taj Mahal, Three Roses, Red Label. Lifestyle Vision, we have Horlicks and Boost as #1. We are #1 in ketchup and sauces with Kissan. We are #1 in South in coffee. We are #1 in soups with Knorr. We are #1 in jams. But this is what I ask you. don't see this leadership as an end state. This is actually a starting point because there's absolute significant headroom for us to grow. And the reason why I say that, and Priya showed you as well, India is changing. But what does it manifest for Food & Beverages. When Indians get affluent, they premiumize. And that means for a tea and coffee business, you can have more flavors, formats and functionality. India is getting hotter. That means you can have -- we need to move our beverages business from hot to cold. Everybody is talking about health and wellness. That means the brands like Horlicks and Boost have a super role to play in terms of protein, fortification and nutrition. And when working women increase, 40% of that, they need convenience. They need time. They need cooking aid, they need condiments that's there. And a good story is, at HUL, we have the brands that not only will own these trends, will actually lead in these trends. And the reason I say that, if you look at this chart, there's absolute headroom for growth for the Foods & Beverages business. The reason I say the packaged food business actually really inflects when you get to $9,300-odd -- say about $10,000. Almost 70 million people of India are already there by 2030, 150 million people will be there. And that's a huge opportunity, right? We are absolutely right in there, whether it's coffee at 5,000 or packaged food at 6,000, you will have huge opportunity for us to grow. And the reason to capture that, Priya shared with you our winning model, which is winning in new India framework, 4 growth levers. I'm not going to go into detail. The great part is with all our brands, whether it's Taj Mahal, Red Label, Horlicks, Kissan, we have the portfolio to play in all different price points. And across flavor and taste in India, changes every 100 kilometers. We are actually there very well entrenched geographically as well. But what gives me a lot of confidence, a really good standing here is the three strong moats of HUL, and I don't say that lightly. First, the consumer centricity. We know our consumers well. We know what they eat, what they drink, what they have. Second, an incredible R&D that we have, which is dedicated to foods and beverages in Bangalore. And I invite you all to the R&D and the tea excellence center. We know our tea business really well in Kolkata. These are very, very strong moat. And that is why we are very ready to look at our portfolio and drive Food & Beverage. For the next section, I want you all to reimagine. And that's the word I'm going to use multiple times, but I want to reimagine the Foods & Beverage business, starting with Horlicks. A lot of people said, wow, Horlicks, really, it's 153 years, not an old brand. I call it as a young brand because you need to pivot. Every decade, Horlicks is pivoted. And in 1928, when Amsterdam Olympics was happening, I have posted in my room, it says that 1928, you see a runner, he's having Horlicks. When Army people would go out, they would have Horlicks -- biscuits and tablets to give them Why? Because it is based on science and nutrition. And that is why a big strategic pivot for us is to move away from just a health food drink that we say to actually lifestyle nutrition. And therefore, bringing back in the core is science and nutrition back into our core of Horlicks with Super Foods. What do I mean by Super Foods? All of us know Superfood as we've added back oats, almonds and millets, these are things that we know of in India. These are the things that we've been growing in. But bringing back this with Nutrimax technology, which means you're able to give this kind of nutrients in a very condensed form to all the Indians. It's nutrition for everything. 6x fiber and also no added sugar. And this is the beauty where we call the sweetness technology that comes in and Vibhav will share with you, it is naturally through mashing of the malt, we're able to bring out the sweetness. And we have BCAA, which is balance chain amino acids. Net-net, you've got the super foods working for you in Horlicks, giving the -- bringing back the science in there, bringing what consumers really know about and about everyday nutrition. And I'm extremely delighted to stand here and share with you for the last 4 quarters, we've been strongly growing the lifestyle nutrition in Horlicks and the last 2 quarters, actually double-digit growth happening in Horlicks as well. But the story doesn't end here, actually begins there. A lot of you have seen if you've been there out in terms of Horlicks getting into protein. And I know protein is a large segment, but here are four things when we did the consumer work. There are four big barriers. Firstly, people say, I don't need protein. Why do I need protein. It's okay. I am a [indiscernible]. I'm a non-vegetarian -- protein is okay. Second, I can't digest protein. Third, it doesn't taste good. It's stocky, bulky, I don't drink. Fourth, all the companies out there, most of them, I don't trust them. I don't know whether it is good or not. When you say I don't need protein, my friends, let me tell you, everyone. Everyone in this room, all of you need protein, and that's very, very important for all of us. And second is you need a trusted brand to go about. Here are the 5 things I tell about Horlicks protein. And proof is life is drinking -- it's there on your table. So if you're enjoying the protein as well, please do when I talk to you. Here are the 5 things. We've got -- number one, we've got 24 grams of gut-friendly yeast-based protein. And here is a great consumer insight. 60% of Indians in adult food are actually lactose intolerant. Let me repeat that. 60% of adult Indians are lactose inter. You just don't know it yet. You don't know it, right? And therefore, it is a yeast-based protein that we've gone through. Number two we've got pro-biotic fiber. And why fiber. Let me not answer. Let me play a video... [Presentation]

So that's the story on fiber. But not only having that, we've made protein absolutely accessible for all of you. It's in a packet of 28 packets, single-serve packets in the pack of 1 kg. So no more scooping, no more messing, no more measuring of whether you can -- whether you're getting the right protein or not. And guess what, you can carry it in bags, you can carry it in laptop, you can carry wherever you need to be. And the fourth and a very important job, which [indiscernible] does its best is about democratizing protein. We are talking about scale trends. We're talking about affordable protein. The pricing of this is as low as INR 82 per drink of the just 139 calories, easy to carry and 3 amazing flavors, I think 2 amazing flavors and an unsweetened flavor because guess what, only 34% people actually have protein with milk. Another large sum of people actually use protein, which is unsweetened protein in their oats, in their meals, in their [ Daal ]. So we have an unsweetened version as well of protein, which is there at an affordable price. And the fourth one and a very important one, which people say, I don't trust. I don't trust what is there out there. And that's where the trust of 150 years plus of Horlicks comes in. This is not the trust that you can buy. This is not the trust that you can rebuild easily. This is from House of HUL. This is from the House of Horlicks, and we're absolutely very excited about this as well. And not just protein, this is protein for every day as Priya shared as well. I told you life is a gym. That's an interesting insight. you're spending 8 hours plus today here, it's as an effort, right? You're going to be all through these presentations, spending time through different -- hearing everybody through. You should have protein. I can tell you, it will cost you, absolutely. And it's on the Gen Z, it's on the go. I have a Gen Z son. He doesn't like most of my things. He says, Dad you don't get it. He speaks a very different language. But this one, he gets it. He tells me this is a win-win product. My set of friends are really vibing up around this one as well in terms of protein. This is on the go, you can have that. And therefore, life is a gym. Real day is your real workout, and that's where we're getting into. Now let's imagine Kisan. We have talked to you about is a brand 90 years plus. You can tell everybody knows. It's a kids catch-up brand. We own it. I want you to start imagining Kisan, not just the kids condiment, but a flavor hacking brand, which is a great Indian food brand. And why I say that great Indian food brand because we have the insights. We know what does it mean. And this is what Kisan is bringing in. It wants you to unleash the [ Chatora ]. I mind you, I'll speak again, [Foreign Language] excellent. That's good because it's about [Foreign Language]. When you do [Foreign Language], when you really like the taste, you lick your finger, finger licking gold. And that is a big thing that we're bringing back. The taste, my friends in the food business is supreme. We're bringing back the taste in there. And in that also becoming a little edgy where you can [indiscernible] a catch up with because that's the core. And here is what I'm going to play and advertising of where we're being a little edgy, bring the taste of absolutely Kisan. [Presentation]

Priya said her mother is going to close her eyes as well when she saw that having [indiscernible] with ketchup as well. But listen, when it's tasty, you will finish it, you will lick your finger, you will not leave it. That is how Indian eat. We eat with hands. We are proud of it. That's what. But here, we have extended Kisan beyond. We are talking about the Chutnis and why Chutnis, [Foreign Language], the great Indian Chutnis Guess what? The potential when we're taking the Ketchup in terms of growth because penetration is still not as high. Chutnis in India are consumed 4x of ketchup. Let me repeat, Chutnis are consumed 4x of ketchup. And if we can teach well to the India of how to eat ketchup, you can -- I can tell you very clearly, we are absolutely geared up to take the Indian flavors of Chutnis all across India. And what's interesting when we were launching the [indiscernible], and I tried the [indiscernible], we talked about the [indiscernible] flavor. [indiscernible], we should launch only in West, right, because people know Tea, Maharashtra. Nobody knows in South. But everybody I said, every 100 kilometers, people love taste, whether it's the [indiscernible] that's selling in the South or whether it's the coconut chutnis that's selling in the north or the [indiscernible], you'll have to pick up your best when you go in the lunchtime today and tell me which you love. people love to flavor experiment. And we've got the entire range of flavors that's coming through the Indian flavors of Kisan bringing life to all of you guys. Another one... [Presentation]

So when you leave this place today, I'm sure you're going to remember [Foreign Language] for sure. With that, let me bring it to a core of our business, which is a very large business, which is about reimagining our tea and coffee business and what better to do that with a brand like Taj, a heritage brand of Taj, where we want to take the classic heritage to the future as well on the Taj side as well. [Presentation]

And here is the strategy on a page for beverages. We are going to lead the beverages evolution over the next decade, we will be run through three simple steps. One is mass to premium, kettle to cup and hot to cold. And each one of them will be all about how do we get more value per cup. Let me elaborate. When we are a tea drinking nation, and we want to draw inspiration, we said, let's look out how China has been -- how the China evolution of tea has happened. Bear with me one figure and chart. This is what un-packaged tea was in China, 25% and package around 15%, but premium was only 15%, right? Put another functionality, RTD, say around 20%. But then 15 years' time, China has moved there from 25% premium RTD and functionality, a 20% movie to 50%. And that's the revolution that's going to happen in India as well. Not the China way, our own Indian way, we love our masala chai. We like our way of doing the Chai. But we are seeing the numbers already. In GT, this Chai is being bought at what-- our tea is being bought at 1x. Already in [indiscernible], the number is 1.5x. And therefore, the job for us -- and we only can do that really well because we have the [indiscernible] brands with Taj Mahal, Red Label 3, Roses and Lipton is to really take this business from mass to premium and get more value from cup versus just talking commodity. The next one, and this is very important, is kettle to cup strategy. I'll tell you why. A lot of us -- has anybody been a joint family here in India, all of you in the room, joint family? Yes, I've been grown up in joint family. There used to be one kettle, one kettle of tea made, everybody was supposed to have the same tea. But India, 50% of India is becoming nuclear families, which means now it's cup from me, [Foreign Language] how I want to have it, enjoying the cup together. And that's the work that we're going to do is actually moving with Red Label. We've already got this 5 flavors out of instant tea and the big line. [Foreign Language] which means anywhere, anytime, you can have your real good tea, all you need is hot water, mix it up and your [indiscernible] cooked tea is there, ready for you. And then last one, you heard the temperature of Herman, Priya all talk about India getting hotter. That means our beverages cannot be hot only. We need to be in cold side as well. And we saw the China numbers as well, how big this cold happened. We already have more than 14 SKUs in the RTD, which is ready-to-drink in terms of cold coffee and brew, Boost as well as Horlicks. And this is where we're going to expand our next generation in terms of growth as well. So ladies and gentlemen, the food menu for growth, it's simple three things. We are doubling down on our core. We are reimagining Horlicks with the core on Super Food with protein as well. We are looking at Kisan, [ Chatkarjao ], flavor hacking in a big way. Third, we're looking at beverages from mass to premium, kettle to cup as well as hot to cold. But this is a very important one. Listen, I'm neither a [indiscernible], neither have a crystal ball to predict the future. But I can tell you a lot of confidence standing here. Knowing my team on food and beverages, they have this growth hunting mindset. And we at HUL are absolutely confident of leading the growth in the next decade in the Food and Beverages business. Very happy to share those plans. Thank you. God bless. And let me invite -- with that, our Dynamic CFO, Niranjan Gupta on the stage, please.

All right. I seem to be standing between your lunch and the session. So thanks, Raj. Exciting session on protein. I'm certainly going to carry some more. I already have my fridge stocked up, and my wife tells me they have to buy a new fridge now given the amount of protein drinks that I'm storing there. So good afternoon, ladies and gentlemen. Once again, a very warm welcome to all of you to our Capital Markets Day. As an introduction for myself, I spent my first innings 20 years in HUL, innings because I'm a big fan of cricket. So all my analogies are on that. And then basically, I went around gathering some external experiences through metals, mining and auto industry. And one fine morning, I was driving motorcycle on Delhi-Mumbai Expressway and then finally landed here in HUL and thought I'll never go back. So that brings me back to HUL, which has been my home ground after 11 years of spending outside. And before I start, Happy [indiscernible] to all of you and to all of us. And talking about festival, as you heard from Priya and from our business heads, it's indeed a festive time, I would say, for FMCG in this new India and huge opportunity for growth across consumer cohorts. The party has just begun. You also heard about our clear strategy and plans to deliver competitive volume-led growth through the three vectors of consumption, of premiumization and of market making. And not just this. We also decided to expand our play area by looking decisively into some of the new spaces. Now all of this means that we'll need to step up our investments. And at the same time, we need to ensure earnings growth as well. So how are we going to do this? This is what I'm going to cover in the next few minutes. Firstly, and of course, spending -- having spent 8 years in auto industry, can't stop myself saying that when you have 4 engines of growth, you do need fuel for growth. And therefore, the first task is to generate adequate fuel, which can power these engines of growth. And there are 4 levers that we are going to deploy to generate the fuel. The first one is going to be improving premium mix. I'll talk a bit about that. The second probably is more obvious to all of you, is the operating leverage as you drive volume-led growth. The third, we're going to step up our savings programs by launching Future Savings Lab, which is a multiyear program we are launching. And the fourth one is driving AI-led media effectiveness. You will hear more about this even in the breakout sessions. Let me talk about the premium mix. Priya talked about how our portfolio and market share is over-indexed to premium versus mass. And when we look at our portfolio and the plans for growth, our growth in gross margin accretive portfolio is going to be 1.5x the growth in the rest of the portfolio. I'm just repeating it. Growth in margin-accretive portfolio based on our plans is going to be 1.5x compared to rest of the portfolio. And there are three elements of that. There are more, but I'll just talk about three. One is B4C packs, as people tell me, in abbreviated norm, so it's designed for channel. And you can see already that in play, but that's going to be more in play as we move forward. Examples are very simple, whether you talk about sachets in GT, you talk about small bade bottles in, let's say, QCom, you talk about large bottles in modern trades. So you have this design in not just pack size, but actually pack formats as well, whether it's the Tetra pack or the cans. So you design for channel appropriately to actually not just your packs, actually portfolio as well. Like in QCOM, you're designed for more premium portfolio. And therefore, the design for channel is going to be one of the key vectors of driving premium mix. The second is margin accretive innovations. We recently launched -- had launched Vasaline [indiscernible] and Harman spoke about that. And that innovation has been so successful. It's actually de-seasonalized the moisturizer category. And in a very short period of time, the innovation has become almost 6% of the Vasaline core. And that comes at a 500 basis point margin accretion over the core. So that's just one example of how we are going to drive margin-accretive innovations moving forward. The third vector of this is what you've heard throughout the presentation on how we are creating desirable brands. As you create desirable brands through our [indiscernible] framework, then what you can do is to actually stretch the brand premium pricing power, and that allows you to enhance your margins. And you will see in the R&D breakout session, the desirable brand session as to how we are creating those brands more desirable and therefore, the brand premiumness, the brand power keeps on increasing, allowing us to make it more premium, offering more value to the consumers. So those are three vectors on how we are going to improve premium mix and drive the portfolio of premium at 1.5x on margin accretive versus the rest. The next one is operating leverage. This is obviously actually very obvious as you drive more volume-led growth because that's been our renewed strategy from last 1 year once Priya came and launched that. As you drive more volumes, then there's an obvious leverage that you get on fixed costs. But even other than that, beyond the simple mathematics of it, what we are going to do is to three intentional efforts behind that to ensure that our fixed cost growth is slower than our revenue growth. The first is leveraging technology and AI across operations, right, from manufacturing operations to our distribution centers. In fact, we've launched our first digital distribution center. Yogesh, I think it's [indiscernible] where we actually put in. That allows you to actually grow with much slower growth in your fixed cost base, all the elements of those. Second is maximizing asset efficiency. We've been doing that. But as volume grows, then as you need to add, let's say, more machines or more CapEx or more lines, we have a way of adding agility and tracks to the same machine, and that effectively means that your asset efficiency goes up. And hence, again, your fixed costs related to assets grow much slower than your overall revenue growth. And the third is a cost discipline and leadership, which we've always been doing. We've actually moved from something called a zero-based budgeting that you've always heard about to an outcome-based budgeting. So it's not just about return on capital employed is measuring return on every spend, but how can every spend give you more and question what that spend is resulting in terms of outcome on either the growth or the bottom line. Combination of the three, along with volume-led growth means that our fixed costs will grow at 0.7x, 0.8x of our top line growth, resulting in operating leverage. The third element of that is Future Savings Lab. You've heard through years about our Symphony program, which is our annual program, which we do on a continuous saving program that we do. What we are launching is a structurally multiyear program along 6, 7 vectors, which will enhance our savings program by 100 basis points over this 5-year period. I'll touch upon the three elements of that. One is the value chain transformation. And that effectively is moving our manufacturing footprint and distribution footprint closer to the demand center. You've already seen a few months back, we announced a INR 2,000 crore CapEx of putting a site in South, which will do a lot of premium formats, a lot of liquid formats there, which allows us to distribute our manufacturing footprint and thereby reduce your logistics costs. Equally, we are revamping our distribution center footprint being closer to the demand center. So all of that are structural programs, which will result in logistics cost savings. Apart from that, it will also result in actually lower inventory, which I'll touch upon when I come to cash generation. Third is strategic -- second is strategic sourcing. And again, as you heard, we've launched Unilever Fragrance House, which is basically bringing fragrance design in-house. So what it does is it allows faster development of fragrances. It allows seamless partnership with fragrance houses, in-housing of multiple experts. And therefore, you are able to deliver more efficacious fragrances much faster at lower cost. And again, you will see in [indiscernible] session in the breakout session in the afternoon, more details on that. But that's again another example of how we are moving towards strategic sourcing and leveraging savings program. The third is the next-gen [indiscernible] platform. And you will ask me, so what's new in that -- you guys are great. You have science platforms. Unilever, of course, has more than 4,000 scientists. We've got more than 90,000 patents. So what's new in that? The new in that is that the discovery on materials never end, and we all know that. So you need to keep discovering. And we've got a global science infrastructure of scientists of our labs, of our years of history of science to be able to discover materials much faster, not just that, and materials you all know, whether it is polymers, enzymes or co-polymers or oleochem or petchems, all of that. The thing is that, yes, the materials can be discovered by anyone else as well. But the magic lies in the combination of these materials. How do you combine them? It's like all of us know what ingredients go behind cooking. We all know spices. We all know everything. But we all can't be Master Chef because the Master Chef knows the combination in which it can actually give you superior test. So I think that's the combination that we are talking about, which allows us to deliver more efficacious formulations at lower cost. And there's a whole program behind this, which is getting launched. There are three vectors of stepping up our savings program through Future Savings Lab. The fourth one, my favorite because I'm a big fan of AI. I have to use it because my daughter uses it much faster and [indiscernible] will just keep pace with it. What we are doing, and again, you will see in the breakout session is it's transforming in the way that we've never imagined before. We are taking media as a vector. We are, of course, the largest advertising spender in FMCG in India. We spend close to INR 5,700 crores annually. We generate 30,000-plus digital content creators we have in our ecosystems now. We spread it across -- you saw 21 brands, more than INR 1,000 crores. Of course, we have a portfolio of many more brands. We also spread it across multiple channels because the channels have been evolving. It used to be traditional TV, then connected TV, then you've got the digital, social, all those platforms. Now that means a large amount of proprietary data that we have. Now that can be leveraged far better by infusing through AI tools. It depends on the proprietary data that you have, the brand works that you have, only then you can use these AI tools. Now what we are going to use, and you will see that more is a [indiscernible] AI tool, which will allow us to deploy media deployment on a real-time basis, combining with a tool called Rapid ROI. Now effectively, it means there are 2, 3 things. One is content creation through AI, and you saw some examples. I don't know how many of you realize the close of ad that Vipul showed was entirely AI generated. So when you generate content through AI, you generate it 50% faster, maybe 75% faster and at probably half the cost or 75% lower cost and more effective and you can turn it around much faster. So that's one vector of media effectiveness. Second is the entire deployment because you need to continuously fine-tune behind which channels, which brands do you deploy media in order to get your maximum return. So it's not a once-in-a-year exercise that you can do given the way consumers are evolving, given the way the market landscape is evolving. And therefore, the Rapid ROI combined with our Sangam, which are the tools, leveraging our proprietary data enables us to do that. So we expect all of that to transform into a bare minimum of 10% more media effectiveness. And therefore, these are the four vectors that I talked about in terms of generating fuel, which will power our engines of growth. Once again, repeating, premium mix, which means 1.5x growth in our margin-accretive portfolio, operating leverage, fixed cost growing at less than 80% of our top line growth. Future Savings Lab, stepping up savings program by 100 basis points over 5 years. And the fourth is AI-led media effectiveness at least 10%. All of this, we expect to generate 500 basis points of fuel for growth over the next 5 years. Of course, and then we deploy this fuel that we generate behind lines of P&L that can power this growth. There are four elements of this that I'll touch upon. And one is desirable product and packaging. That's one element of investment. Because usually, what happens is when we talk about investment, the first thing comes to our mind is our A&P. It's not just A&P. It's about investing in multiple lines for growth, and that's what I want to stress upon. So one is desirable product and packaging. And you saw examples of how Vasaline got transformed, how Dove got transformed. We saw Kisan, we saw Horlicks. Those are the examples. Second is media and sampling, which I think we understand much better and much simpler in terms of the investment. Third is pricing and pack price architecture, which again, you saw some examples. I think [indiscernible] was talking about those Maha packs of the VIM Bar or the other price packs that Vipul talked about or Herman talked about. So pack price architecture is a very important element of investment to grow in different channels. And the last one is channel investment. Again, channel investment, typically, we assume to be terms of trade. It's not just that. A channel investment is about visibility investment. It's about investment in the place where the consumer is interacting with the product and with the person who's selling it. And therefore, as Priya talked about, when you're talking about specialty channels, chemist channels, beauty channels, all open format stores in GT, all of those would require channel investments in order to catapult growth. Those are four lines of growth that we will deploy fuel for. As we do that, we'll be choiceful about the prioritization. And again, on the three vectors I just explained. So let's say, for consumption. Now obviously, you will do in some proportion all the 4 lines. But on consumption, when you go to, let's say, bigger pack, so you will focus on the price pack architecture far more on the consumption side. On the premiumization, obviously, you'll focus more on desirable products and packaging and media far more. And on market making, which is you can see a surface a liquid there, you will focus on, let's say, sampling more and then the other vectors. So this is how we choice-fully prioritize and deploy behind each of the growth vectors that you heard. So this is our playbook for deployment of fuel. But that talks about the P&L generation of fuel and deployment of fuel. We also talked about that we would be doing portfolio shaping. We'll be entering new spaces. And that means that we need to generate cash at a super efficiency and deploy that, which is what we call deployment of capital for growth. This is our capital allocation framework, which is 100% cash conversion. So whatever profit converts into cash because of our working capital discipline, I'll talk about that. What we are going to do is to step up productive CapEx investment. So as we dial up volume-led growth, then obviously, it means that the growth CapEx has to go up, and I'll touch upon that. And the second is investing in reshaping the portfolio. We've been doing it in the recent past. You heard example on Minimalist and OZiva from Harman, and I'll talk about how we are going to do more of that in the new spaces. And third, of course, the third element of capital allocation is dividend payout to shareholders. We continue to be the top quartile company in terms of our dividend payout ratio. So in terms of the cash generation, the model is clear. We continue to be efficient in terms of our working capital management. You heard me talking about -- when I talked about the Future Savings Lab in terms of the manufacturing and distribution footprint closer to demand centers. That again offers another opportunity for inventory optimization. Equally, on the creditors, we've been very efficient and there's more headroom there. There can be some minor headwinds as the channel shifts on the receivable number of days or the media shift in terms of the A&P creditors. But that in our overall scheme of things is not material. It's very small. Just to tell you, the A&P creditors are just 10% of our overall creditors. And moving forward, general trade will continue to be a channel, as you heard from all the business heads and Priya in terms of source of growth. And therefore, we'll continue to be efficient on working capital on the negative working capital. And negative working capital, as you know, automatically means the more you grow, actually working capital generates more cash rather than requiring more cash to be invested. This generation of 100% cash conversion will be deployed in terms of CapEx strategy, where we are lifting up our CapEx guidance from 2% of turnover, which is what the range has been to 3% of turnover to actually power the growth vectors. And out of this, almost all, almost 85%, 90% of that will go towards growth and savings programs. The growth actually enables the volume-led growth and the savings allows to generate the fuel which you actually deploy behind growth. So that's going to be our plan moving forward on capital deployment because -- and the second element on the CapEx part of it beyond the third element of growth and the savings is about on the portfolio. So we've been doing bolt-on acquisitions. You saw Minimalist growing 2x in 2 years. Actually, I would say it's not even 2 years, it's probably 18 months, Harman, right? We rounded off to 2 years. And then OZiva, which has grown 4x in 4 years. And we'll continue to do that. You heard from Priya on the exciting opportunity of high-growth spaces that are evolving in FMCG space. adjacent to our category. And clearly, we'll continue to have a 3-pronged approach to it. One will be our existing brand extension, heard from Raj about Horlicks, the most trusted brand, getting into protein, which is a huge space and growing exponentially. So that's one example of that. We'll continue to leverage our existing brands. The second, of course, is getting brands from Unilever stable or creating our own brands. And there are many brands still in the Unilever stable, which we have still not gotten here or leverage at time to time, we'll look at that and get them here. And third is bolt-on acquisitions, similar to the one that -- to the two that you saw that we've done recently. So in summation, the capital deployment strategy is around 100% cash conversion, continue to be efficient there, step up CapEx from 2% to 3% of turnover, which powers growth as well as the savings program to fuel growth. And third, invest behind new spaces because the new spaces, as you saw, is going to create 20% of our delta turnover over the next few years. Finally, that leads to then our thesis of volume-led profit growth. So again, as a reminder, the first line is competitive volume-led revenue growth. That will be our strategy. generating 500 basis points of fuel, deploying that, which creates a flywheel because you deploy more volume, it actually generates then more fuel. As we are moving forward, as you've heard, structurally, we are shaping our portfolio towards higher margin mix. And that means that structurally, our portfolio is moving towards higher EBITDA margin. And that means -- and that is why we are raising our guidance on the higher end of EBITDA margin from 23.5% to 24%. I repeat, because we are shaping our portfolio structurally to higher margin mix, we are lifting our EBITDA margin guidance on the upper end from 23.5% to 24%. Equally, we do recognize that from time to time, we may need to invest ahead of growth. And therefore, we are making the margin range a little wider and making it 22% to 24%, which allows us flexibility to invest behind growth, ahead of growth when required while structurally shaping it towards the higher margin end. That's the revision in our EBITDA margin guidance moving forward. And that, of course, leads to a volume-led profit growth and the whole cycle then repeats. Of course, creating value through drivers of growth, generating fuel, deploying fuel, brands, these are the playbook that you do. But the enduring value only happens when ESG is embedded in the business model. And we always treat ESG as integral to our business model and not as a separate stream that we carry. Clearly, on all the vectors of ESG, whether it is environment, social or governance, we lead the impact on environment, I'll touch upon one, for instance, 97%, 97% of our operations are now powered by renewable energy. Similarly, on social impact, 12 million-plus people are positively impacted through our [ Prabhas ] program, which is centered around our operating centers. And of course, we always, always hold ourselves to the highest governance standards and we'll continue to do so, whether it is completely independent chairs of all the Board committees, whether it is a risk management principles or our values and the culture of business integrity, we'll continue to hold ourselves to the highest standards of corporate governance. So ESG will continue to remain embedded as a business model, integrated into it because we feel and we believe strongly that's how you create enduring long-term value creation. This brings me to my final chart. And of course, -- the starting point of all that is values. You will find this strange coming from a finance person of numbers. There are no numbers on this chart. But it all starts with values and deeply believe that values lead to value creation and value creation then leads to valuation. Ladies and gentlemen, I think we are at the inflection point of growth with immense opportunity in new India. The next decade is going to be India's decade. It's going to be a decade of consumption, and it's going to be a decade of HUL winning in this new India. Thank you very much. Over to you, Yogesh.

Thank you, Niranjan, for the insightful session. With that, we come to the end of the plenary session. Before we break for lunch, let me share a few instructions. For the participants joining us virtually, you can join back at 4:00 p.m. India time. There will be a break for you guys. Hope you have enjoyed the sessions and see you after the break. [Break]

Welcome back, everyone. Hope the breakout sessions have given insights into all our capabilities and our enablers. We now move to the last session of the day, which is the Q&A. [Operator Instructions]. I would request those in the room asking questions to state their name and organization before asking the question. With that, let me invite Priya and Niranjan on stage for the Q&A session.

Brilliant insight through the day. This is Manoj Menon from ICICI Securities. I got two questions for clarifications. One on the CapEx, the 2% to 3%, what's the, let's say, the drivers for this increase in CapEx? Is it intensity or you're seeing, let's say, double-digit volume growth very soon?

So as we mentioned, the intensity of CapEx increase is driven by two, three factors. One, of course, is to cater to growth. As Priya presented, we are going for volume-led revenue growth, which will be competitive. So one part is the growth. Second part, of course, is savings CapEx led, which means that now those CapExes will lead to savings and also better service like we talked about INR 2,000 crore CapEx in the various premium liquid formats in South, which essentially caters to growth as well as to better customer service because of distributed footprint and results in logistics savings as well. So it's a combination of the 2, and it, therefore, denotes our belief in both growth and savings.

The second part of the question is a lot of clarity on what you're doing on the newer spaces, younger brands, newer channels, et cetera, et cetera. But some examples you could talk about your core, let's say, core brands like Glow & Lovely, Lifebuoy. Just help us understand, let's say, some actions which are already in the market? And how do you, let's say, plan to accelerate growth in the core?

When you think of our core brands, firstly, our core brands are across our categories. I'll come to Glow & Lovely and Life Boy absolutely. But I wanted to think of all our core brands across our categories, whether it is Wheel, Clinic Plus, [indiscernible], Lifebuoy, Glow & Lovely, we have a range of core brands. You saw [indiscernible] presenting on wheel, all the work that has happened. We have now taken leadership in Tier 3 in laundry. That was not the case, and Manoj, you know our business well. That was not the case. If I go back to when I was running Home Care, that was certainly not the case. And that's because of the work that has happened to strengthen the brand. The brand has strengthened. And it all comes back to that framework we've shown you on stepping up our brands. So when we put in the science, we have the right aesthetics, we are talking to the young in the country, and we are actually making it much more modern, contemporary. Our core brands as well lift up and become stronger and it shows up in terms of our competitiveness. So that's what the framework I want you -- I can do the same thing talking about Taza and how Taza has been built. I can talk to you in the same way about Clinic Plus and the fact of iconic brand that it is even today in our shampoo category. Let me now come to Glow & Lovely and Lifebuoy because I think behind it is a specific question on those 2 brands. Firstly, Glow & Lovely and Lifebuoy now for the company, I want to context it. are in only mid-single-digit contribution to overall HUL. It is important because this is overhang otherwise that phase of these two brands. So I think that's the first context that I wanted to keep in mind. The second is absolutely, we are working on making these brands desirable as well. So they have an important place in our categories in the company. So let me start with Glow & Lovely. Glow & Lovely, you saw Harman sharing the work that is happening both on the core but also in premiumizing Glow & Lovely. So I saw the great example that she showed you on sunscreens. And the fact that if you think about who needs sun protection, right it's the person who's in rural India, who's out in the open, who's facing the suns and Glow & Lovely has always spoken about this issue of actually having sun as an aggressor and how we can protect consumers. So what we are now offering is a brightening product, which also gives you sun protection. And when we do that, Glow & Lovely becomes stronger. The third way for you to think about it is in terms of the entire portfolio that's being built. If you think about what Harman shared on skin care, and I'm just using skin care as an example, we not just have Glow & Lovely. We have Pond's, we have Lakme, we have Dove, we have Minimalist, we have Simple. The whole portfolio of brands that serves our skin care business.

This is Abneesh from Nuvama. I have two questions. First is on Home Care. So Home Care has been a star category for you. Three sub-questions. First is in dishwash, the #2 player has vanished. So essentially, would you expect that in Home Care, [indiscernible] dishwash will be your fastest growth over the next 2, 3 years? Second sub-question is -- you are taking to now floor cleaners, floor wash, et cetera. In this category and earlier the bathroom cleaner category, there's another very strong #1 player. So if you can share how Domex did? Is there any learning from Domex towards the Vim floor cleaner because you will face the same challenge here? Third subquestion will be on the new start-up company in detergent took you head on on competitive advertisement. Generally, we see Unilever doing that or lever being aggressive on that. This time, we did not see that, and I understand it is subjudice. But what kind of impact this has? Because clearly, they are trying to be now the nimble kind of brand. So if you could address that.

Abneesh, let me start with the third thing. As you know, the matter is subjudice. So I'm not going to comment in a lot of detail on this matter, I rightly shouldn't. But I think what I want to remind you is how HUL creates products. our products are completely safe and they absolutely meet all safety standards, standards that are put by BIS and standards that we maintain for consumer safety. So that's all I would say on this. And I will not say more as the matter, as you know, is in court. On the other two, let me start with dishwash, and I think you're alluding to dishwash liquids. The biggest opportunity for us is not about competition. It is about exactly what I talked about, which is the growth that will come in bars from consumption increase, the opportunity to premiumize through liquids and market develop the liquids category huge headroom, right? I showed you that number, Abneesh, Thailand versus India numbers, huge headroom for us and no better brand than VIM to develop the category. So honestly, I don't think of it as what's the market share when I look at home care because of the size of our opportunity being what it is in Home Care, it's very much about consumption, premiumization, market development. And when we do that right with the portfolio that we have, we are best placed to grow the Home Care business. So that's really what I would say to you. Remind me the third question, sorry?

Floor cleaners versus Domex.

Understood. So I think when you think -- look at our Vim floor cleaner products, it's very important. I'll go back to my framework of desirable brand. And the first thing I would want to bring your attention to is the science behind what we have put into [ Wim ] floor cleaners. [ Wim ] floor cleaners have a specific scientific reason why it is better because it is a technology that actually has superior [indiscernible] technology. And when you think about floor cleaning, that is a very, very critical variable in what you do. So it is a superior product. And again, we are here for a multiyear bet. And everything will, again, very underdeveloped category. Again, we can get into competition and thinking about it as taking on competition. Our job is to develop these markets with our reach, our distribution might, our ability to take a strong brand like Wim and leverage it across household care. So that's how we see it. I don't know whether Vandana or Vibhav, you want to add something on this. Sorry, I will use my executive team who are also here. So let's make sure we have mics that they can use as well, guys.

My second and last question is on body wash. So a few subquestions there. One, if I see how has the Stratos technology done for you? Because clearly, Lux and Lifebuoy last 3, 4 years has been quite, I will say, challenging for you, and you have been quite candid about it. So has Lux and Lifebuoy come back, if at all, they have come back, is it because of the relaunch and aggressive and new product formulation? Or is it the back end? Why I'm asking this is the #2 player again here. They also said that their market share in the last few quarters has been stagnating last few years, which means either you are winning or rest of the players are winning. And one related question on body wash is liquid body wash clearly looks very exciting on paper, but has not actually turned out the way some of the other liquids in, say, fabric wash have done. We see, for example, Palmolive now outsourcing it to Bombay shaving company. Would you need to do that? You have a lot of D2C in-house core competence. And my question is, would you need to do that? Or is it fine that the existing body wash team continues to do liquid body was?

Yes. Abneesh, I'll answer the second question. I'm very excited. Thank you for asking that question. I would have said the same thing to you a decade ago when I launched of [indiscernible] Liquid that there was no market, right? I was the person who was in home care at that time when we launched. It takes multiyear marketing, and there is a moment, and Vipul shared this, that the market starts to inflect. I think that's what Vipul alluded to. We are at that moment where we believe that body wash will now inflect because it's starting to get that critical mass. And we are the leaders in body wash in the country today. And we -- yes, in liquid body wash, I'm happy to share. So that data point you should know. We are the leaders of the liquid body wash segment, and we will drive the market development. So it's about our investment, and we will drive that same playbook. And that's what Vipul shared, that playbook of ensuring we have superior products, we have the right understanding of what it takes for consumers to adopt. What are those triggers that make consumers convert from bar soaps to liquids, what do they enjoy? He talked about that stretchy feeling of the skin you saw in the Lux advertising. What are the barriers? What do consumers worry about wastage, they worry about how do I dose, how do I use? So that understanding that we have, the fact that we are doing this first with the young consumer sampling program at scale. So we will play out our playbook at scale, and we will drive multiyear the market development of body wash. The second question you're asking is in terms of Stratos. So firstly, Stratos for us has a proven technology in terms of skin superiority on skin. So that's the first thing that Stratos has done for us across our brands. And I think Vaibhav mentioned, we are now also taking Stratos to a premium brand. So we are absolutely convinced that it does -- it actually benefits us on skin benefits across our portfolio.

This is Avi here from Macquarie. Two questions. First of all, thanks for this detailed framework on the growth. First, just wanted to understand this 40% incremental growth that you're talking from market making. Could you give us a sense on how large this portfolio is right now and which segments are giving you confidence to drive such a large incremental delta from this segment?

So I shared it in my chart, the penetration of each of the categories. You remember the chart where I showed you the subsegments, which are these are -- there was a sample of some of the market development sales, which you saw across and the index to Indonesia. So those are the key cells. There are some others, but those are some of the key cells that we're talking about in terms of doubling down for market development. They're present in the chart, and those are the cells. What gives us the confidence is exactly what we said, our market development playbook gives us the confidence. We have done this before. You have to go back to our track record, guys. We have done this before. We are the largest company in CPG. In all these categories, we are the leader of the market and our scale gives us the opportunity to actually go and develop the market. But it was not consumer understanding. I will always go back to that. In the end, it is a deep understanding we have of consumers, which will allow us to convert consumers into these categories.

Any idea of the savings, what currently stands? Because what I'm trying to better appreciate is the incremental -- or 40% of the incremented growth to come from it, current series should be material or is -- how does it stand? Just to understand what are the growth rates you are kind of assuming implying over here?

Is, I'm going to share a guidance on exact numbers, but what I'm saying is I've shared the structure, right? The structure of the growth we shared to you is 40% of the delta will come from consumption and premiumization will come from market development and 20% of the delta will come from white spaces.

Okay. Just second, but given the confidence that you have, kind of, indicated on the growth, how you're, kind of, looking at this. Just taking it from the last time when we met, would it be fair that you expect an upgrade from where you were -- we were in for a double-digit earnings growth trajectory? Do you think it is possible to -- you would kind of aim for a much stronger trajectory in the medium term [indiscernible] teams or something like that? How should I look at that?

So we're not going to give you a guidance in terms of numbers. The guidance we have provided is FY '27 will be better than FY '26. Guidance that we are providing is competitive volume-led revenue and profit growth. The guidance that we're providing is that the shape of how we will get the growth is 40%, 40%, 20% and the EBITDA margin range, which Niranjan shared. Niranjan, if you want to add anything.

And we are also putting money behind our strategy, which is evident from lifting our CapEx from 2% of turnover to 3% of turnover.

Percy Panthaki here from IIFL. Two questions from my side. So firstly, on the capital consumption and penetration. You mentioned that 60% of India is at Indonesia per capita income. But the penetration with our consumption are significantly lower. Even if you assume the remaining 40% is a nonconsuming class, it would still be a lower index for that. So therefore, I just wanted to understand, what is holding back consumption because it's clearly not income, it is something else. So what is that something else? And if we understand that, then we can understand better as to what will make it grow. So that's the first question. Second question is on new product introduction premiumization and so on. Niranjan, you mentioned that the new products would have higher gross margins. But often in the premium space, we see that the cost structure is not in the gross margin. It's in the A&P. And it's not necessarily only because the brands are subscale. That's the nature, even in medium terms, even when the brands get bigger, those kind of premium brands require higher A&P? And therefore, my question is, even in the medium term, once they scale up a little bit, do you see these new introductions in the premium space being EBITDA margin accretive? Because what we've seen, at least in some of the new D2C brands, which are listed even when they get a 1,000 plus, kind of, a scale, their EBITDA margins are below what HUL would have as a company. So here is a dichotomy that you have premiumization, but the premiumization doesn't give you a better margin. So is it a premiumization worth having in the first place? So these are my two questions.

Yes. Let me try and first answer the second one, and then you could have to remind me of the first because honestly for -- as you ask me the second. It was a very interesting question that you're asking. So firstly, I would say to the financial algorithm in premium tends to be different compared to the financial algorithm of a mass business. This is really what we understand so well as a company, right? So the financial algorithm of premium business, you're absolutely right. It depends on the category, though, I would say to you, very different in Home Care, very different in beauty and Personal Care, very different in Foods. I would say it depends on the category, Percy, I don't want to give you one answer. A premium brand in Home Care has very different economics because the economics of Home Care are very much on scale economics, right, very different economic model. I think when you are referencing, you're talking a little bit more about the beauty products, but some of the beauty products and the economics there as I ran the global business for Beauty & Wellbeing tend to be high margin, high investment, still very good EBITDA margin. And it's a period where there will be investment but structurally, these are the high-margin sales with high EBITDA. Now why is it that you see or opportunities exactly our scale because with our scale economics, whether it is you think about procurement costs, supply chain costs, Yogesh shared with you what we are doing on our DCs, all of this is what provides us the economics, which are very different from other players. Just remind me of the first question, please.

The first question was that our per capita consumptions or penetrations are very much lower and therefore, not explained by the gap in the income. So we do have the income, but we are not consuming as the other countries consume, what's the reason and what do we do to get there?

I think that is actually the biggest opportunity. I don't see that there's a problem. That is our opportunity. We are the market leader of this -- all these segments. And when we have a multiyear market development, we are exactly seeing how that growth starts to compound. We gave you the example of Home Care liquids. That is exactly what we will do across these categories, when we invest, we educate consumers, [indiscernible] is the education to consumers. When you start to do it, you invest behind it, you do the sampling. That's when the market -- markets are made by marketing companies, right? Markets are not created just like that. Markets are made when companies invest behind it, they create the right product, take it to consumers, and that's exactly what we plan to do.

If I may...

Let's build on Priya's point on innovations, like you talked about many of the D2C brands, new brands, they struggle or EBITDA margin. So one, of course, is given that we have our entire scale that comes into play of synergy. Any new player, we have to put up the entire system altogether, de novo, and that has a larger cost. But the second also is our margin-accretive innovations does not mean every time we put a new brand. So when you put a margin accretive innovation on the existing brands like Vaseline, Beauty [indiscernible] explained, then, of course, you're starting with a high margin leverage on the A&P of the overall brand itself while for the D2C when you're launching new brands every time, a new brand takes far more A&P. So I think that's the leverage we have. And therefore, a large part of the margin accretive innovations, will be on top of our existing brands, which actually lift the entire EBITDA margin profile.

This is Arnab from Goldman Sachs. My first question is on the food category. So it's really exciting to see HUL do a lot more than in the past. However, there are still vast, sort of, the food categories where you don't operate in majority. And now that the parent doesn't have a Foods business, how do you think about the overall play over the next many years beyond the categories you already operate? And would inorganic also be an option in foods as you look to expand the portfolio?

Firstly, our Foods portfolio as HUL is very different from the Unilever Foods portfolio, it has always been because if you look at our Foods portfolio, firstly it's a Beverages portfolio first, Arnab. It is a beverage, tea, coffee, lifestyle nutrition and Kisan. So firstly, very local brand, very different from the parent in terms of the brands that we have. So spaces in which we operate are very different. So it has always been a very different business from the Unilever business in food. The second is India stands -- and Raj shared this, at such an exciting opportunity in terms of the inflection point within the spaces in which we operate huge opportunity, right. That's what Raj was sharing from hot to cold in beverages, from kettle to cup, some massive opportunities in the way we will lifestyle nutrition alone such a big space on wellness, and we own the most trusted brand in the country on nutrition with Horlicks and Boost. So huge opportunity there. And absolutely, I'm glad you saw the unleashing of Kisan and you excited about what we are doing, and that's just the beginning of what we will do.

Just a follow-up question for this. I mean, what I meant is in the past, we have some constraints on, like, getting into completely new categories in India. Now that it's a completely local business here, do you see it still as an adjacency expansion? Or could there be something more big bang in terms of getting into really large categories in Foods. And also, Foods is generally a lower-margin business, though not always, but in general, if you look at many of the Foods companies, is that a constraint that you have a guardrail that you don't want to operate in categories where margins are maybe mid-teens, but the opportunity could be quite large in terms of long-term growth.

So Arnab, if you look at our entry into protein, it is exactly that. It is not an -- it is an adjacency, but it's a completely different way to get into the market, a very different market, huge potential, but we have the nutrition science, like I was explaining and Raj explained to you. So we believe with the nutrition science that we have, we can unlock and grow and democratize the protein market. So that's really the way we are thinking about it. And like every category, as I said, when we look at the opportunities, we will absolutely look at our right to win at HUL, the size of the price, the profit pool over time. And across our business, we operate in every category, different margin profiles, right, where you're playing in core mass. As I said, the financial algorithm of a mass core business is different on the financial algorithm of a premium business. We already do that today within our business. That is the way we look at it as a total entity.

On your right, Tejash. Tejash from Avendus Spark. Yes, we -- some of us have been coming up for last many years, 10 years plus. And I can't recall any occasion that most of us would not have gone unimpressed with the effort that we put in. And then we reconcile with the numbers, we realize also that there's a macro problem also. At our scale, we can't decouple from the macros. And hence, Percy's question is very important that the north star of our hope or inflection point is that per capita income. Now when you study some of those countries when we cross that point, there was no competing category of consumer electronics, which was catching the aspirations of the youth or the larger mass. Now in that context, when we see and you would have studied all those geographies very closely, do you believe that for what happened for them at $3,000 perhaps won't happen for us $5,000, $6,000 because we have got come such a large category in the wallets share out of in the last 20 years. Today, consumer electronics is as big as FMCG in wallet share. which was not the case perhaps when those countries are crossing that number. So just your view because that's the anchor point of all our effort merging with the macros also.

Yes. So firstly, I think the way to think about it is exactly the way we showed the grid, right? There is a huge opportunity that exists for consumption itself. And it's not something that's far away because it's happening within India as well between Value Seekers and Affluent. So just that people in India get more money in their hands, they change their behaviors. They change -- and I can -- I described it, whether it's the number of dishes you have in the home, Vandana described the number of clothes you have in your home or whether it is indeed how you take care of yourselves, what you want from your hair, from your skin, so the aspiration stuff to change and that changes your behavior. So I think that is happening at every end of the pyramid. I think the way to think about it is the grid. In that grid, the way it will happen is there is an increase in consumption, there is an opportunity to premiumize -- there will be new segments, and we will look at completely new white spaces as well, as we said, how opportunity is across this engine? And that's really how I would think about it. I don't know, Niranjan, if you want to add anything.

I mean the biggest evidence of this is, let's say, within India itself. So where like we showed in some of our presentations today, the per capita consumption of some of these categories is 3x in the affluent urban part versus the rural other parts. So as that picks up, clearly, there's an evidence within India and geographies that there's 3x opportunity it moves up. So the movement is very evident whether to look at even how our detergents, liquid penetration has moved in South. So it's very evident here within India itself, even in the context of, let's say, a combination of distribution of the wallet of consumer as you are saying. Yes.

Second, Priya, your read on our track record of forecasting trends. And this is more a question as a consumer than an analyst. If I see last 10 years, 15 years, we were -- we responded to Ayurveda challenge, then somewhere we responded to Herbal, then we do see then of late science-based product. I can understand that the way some of the other guys operate, perhaps the agility at their scale, is better to, kind of, launch products and, kind of, create trends. But do you believe that somewhere our ability to, kind of, create trends -- in fact, I will be happy if you prove me -- if you give some instances of us being wrong, but we are leading a trend where others are copying in the last 2, 3 years or 5 years?

So firstly, the entire home care example that I will give you is that we have led the category development, whether it is liquids, whether it is dishwash, whether it's the premiumization of the odor market. We have led that. Bodywash is exactly the same. We are leading, and I just shared, we are now the leaders of body wash. This wasn't the case. We are now the leaders of body wash. We are leading the market development. I think the way to think about HUL will always be that we are scalers. There may be some small trends we make choices of where we want to play because we have so much opportunity with our existing business, but we are scalers of categories. And that's the way you should think about HUL.

This is Harit from Investec. Just 2 questions. First was on the -- on Niranjan's slide on volume-led revenue and profit growth. Just on this, if you look at times of high inflation, the volume-led revenue growth algorithm changes a little bit because you have pricing and the impact of inflation on consumer demand. Just wanted to understand if we are, once again, entering in that phase? And is also that the reason that maybe you've given yourself some leeway at the bottom end of the margin also to keep the 22% to 24%. So just your thoughts on how the term could play out from that context?

Before Niranjan answers, I'm going to say a few things, and of course, Niranjan will add. If you think about the categories in which HUL operates, what are those categories. We are in detergents, dish washing, cleaning yourself, body wash, [indiscernible], I'll go on and on. These are basic everyday in commodities. So even in inflationary times, there is some elasticity, I'm not suggesting there's 0 elasticity. But the price elasticity is much lower in these, kind of, everyday products are versus discretionary categories. So that's the first way for you to think about it. Our focus is on the fundamentals, going back to the fundamentals, building desirable brands ensuring we have a future for GTM and making sure that we build new mode, as we've shared. When we do that right, we are well proven we can manage the cyclicity that comes, inflation, deflation, this is a playbook we know well. Focus is back to fundamentals in the business, and that's how you should think about it.

If I may just add. So inflation will come, inflation will go. I think what stays is more users, more usage, right, and how you create desirable brands and premiumize. I think that's the algo that remains sustainable for future. And that's why we are calling out more primarily as a volume-led revenue growth. And when we say volume, by the way, in our parlance, we call it UVG and therefore, it's volume plus mix both together. I just want to clarify that part.

Function and premiumization.

Absolutely. That's what I'm saying because normally volume sometimes can be just tonnage. So that becomes more sustainable, and that's why the focus on that. The second element, which you said the EBITDA margin guidance, no. It's not impacted by anything of the short term. This is more, as I said, very carefully thought of is that: a, and I repeat again, that structurally, our portfolio is getting shaped towards higher margin. And therefore, over the plan period over a medium term, we do see that there's a potential to move the margins higher. Having said that, you need to invest many times ahead of the growth. And because you -- like many times you only have asked -- you guys have asked that is your -- in fact, there was another question that is your margin ambition, sacrificing growth, XYZ. So this investing ahead of growth and provides that width of the range provides the flexibility to invest, which is where we widened it to 22% to 24%, lifting it up at the upper end and giving ourselves a headroom range of 200 basis points. It's not impacted at all by what's happening in the current inflationary scenario.

Right. And the second one was slightly academic. What's your -- when you define winning, right? Is your definition, value market share, volume market share as in -- from a category to category perspective, what's your definition of that internally? Is this what I wanted to understand.

Like we said, it's competitive volume-led revenue growth.

So it would be volume market share, right? Competitive volume means volume market share.

Competitive volume-led revenue growth.