Nestlé India Limited (500790) Earnings Call Transcript & Summary

Dear members of Nestlé [Foreign Language]. Good morning, and welcome to the 66th Annual General Meeting of Nestlé India Limited through videoconferencing or other audiovisual facility. For the smooth conduct of the meeting, members will be in the mute mode. For members who have preregistered to speak at the AGM, the audio and video will be switched on when the Chairman request them to speak. Please note as per the requirements, the proceedings of the AGM will be recorded and will be available on the company's website later. Webcast facility is also available for nonmembers. Without any delay, I hand it over to Mr. Suresh Narayanan, Chairman and Managing Director. Over to you, sir.

Thank you, Inba. Namaste, dear members. It gives me immense pleasure to extend a warm welcome to each one of you from India and overseas for attending the 66th Annual General Meeting of Nestlé India. This is my 10th AGM, and I'm truly honored to be addressing you. I would like to inform you that all the executive directors, Company Secretary and other company officials, including myself, are participating from our office in Gurugram. On the other hand, all the independent directors are participating virtually from their respective locations. I would now like to take a moment to introduce the Board members who are present on the screen. Mr. P.R. Ramesh, Lead Independent Director, Chairman of the Audit Committee and member of the NRC and Risk Management and Sustainability Initiatives Committee. He is participating from Nestlé House, Gurugram. Ms. Anjali Bansal, Independent Director, Chairperson of the NRC and member of the CSR Committee, Audit Committee and Risk Management and Sustainability Initiatives Committee. She is participating from Mumbai. Ms. Alpana Parida, Independent Director, Chairperson of the SRC and member of the Audit Committee and the NRC. She is participating from Mumbai. Ms. Svetlana Boldina, Executive Director of Finance and Control and CFO, member of the CSR Committee and SRC. Mr. Satish Srinivasan, Executive Director of Technical and permanent invitee to the CSR Committee and Risk Management and Sustainability Initiatives Committee. Ms. Suneeta Reddy, Independent Director, Chairperson of the CSR Committee and member of the Risk Management and Sustainability Initiatives Committee. She is participating from Chennai. Mr. Sidharth Birla, Independent Director, Chairman of the Risk Management and Sustainability Initiatives Committee and member of the Audit Committee, NRC and SRC. He is participating from Delhi. Mr. Pramod Kumar Rai, Company Secretary and Compliance Officer of the company. The company's secretary has advised me that the forum as required under law is fulfilled and I declare the meeting as validly convened. I also acknowledge participation of the statutory auditors, cost auditors and secretarial auditors. As required, the statutory auditors are available for inspection on the NSDL website. The Board's report for the financial year ended 31st March 2025, is already available with you as part of the annual report sent to you. I'm delighted to welcome each of you for taking time out to attend the 66th Annual General Meeting. This is my 10th AGM and the last one before I retire as the Chairman and Managing Director of Nestlé India. At the outset, [Foreign Language] will be with [Foreign Language] news, I am pleased to announce that the Board of Directors have declared a bonus of one equity share or one equity share held by you which is subject to the approval of the members in the EGM to be held on 24th July 2025. I'm very pleased that this is the first bonus issue after the year 1996. With subdivision of shares at NSE listing in 2024 and bonus issue this year, we believe we have fulfilled a long-standing wish of all the shareholders. Extremely happy to announce that this will benefit over 160,000 small shareholders holding less than 5 shares, including 45,000 who hold only one share. The company believes that the proposed issuance of bonus equity shares in the ratio of 1:1 recognizes the steadfast support and loyalty of the shareholders throughout the company's growth and transformation journey. Moreover, it will enhance the liquidity of the shares, while expanding the retailer -- retail investor participation. I am filled with a sense of pride and immense gratitude as I reflect on nearly a decade of service in your company. I vividly remember my first 100 days in this role, confronting the Maggi Noodles crisis was daunting, yet we were bold with our truth. Maggi Noodles went from market leadership to near extinction and recovered 60% of its market share within months of its relaunch. It was the underlying trust of brand Maggi and collective strength of our employees, consumers, shareholders, partners, distributors and suppliers that helped your company bounce back with renewed vigor. Today, [Foreign Language] Maggi is the most beloved household name. It is often said adversity serves as a catalyst [Technical Difficulty] and transformation. I'm reminded of the words of Nobel Laureate, Rabindranath Tagore, from Gitanjali, "Let me not pray to be sheltered from dangers but to be fearless when facing them." It is through navigating storms that we discover our true strength. In Nestlé, I call this unique culture of resilience, dignity and empathy, Nestléth or the Nestlé way, which makes sure that we live and thrive with our values at all times. Ladies and gentlemen, every morning as a new dawn breaks, over 8,600 employees in our factories, fields and office work tirelessly driven by a singular purpose, to serve our cherished consumers with products of unimpeachable quality and the highest safety standards. We upheld our promise to unlock the power of food, enhancing the quality of life for today and for generations to come. Our guiding principles, purpose, people, partnership, planet and performance have been the foundation of our progress. Today, I will focus on 6 key themes that defined our promise, our progress, our paths of the decade spanning 2015 to 2025: first, performance, innovation and value creation; second, speed, technology and digital transformation; third, people at the heart of our business. Fourth, partnerships growing together to go far; fifth, purpose, business as a force for good; sixth and most importantly, culture and values. Dear members, let me take you through our first theme, performance, innovation and value creation. Over the last decade, our revenue witnessed a cumulative annual growth rate, CAGR, as it's called, of 10.3%, while the corresponding profit from operations grew by 510 basis points. Profit after tax soared 490%, sales was up by over 150%. In the same period, our market capitalization grew to 3.9x, and the total shareholder return, TSR, the CAGR was 17%. Just 10 years ago, 80,000 shareholders entrusted us with a part of their future. Today, that incredible shareholder [Foreign Language] has grown to over 550,000. We were once seen as an urban company with a limited portfolio, but through a penetration-led volume growth strategy rolled out in 2015, we now have access to more households and more consumption occasions. Our pace of innovation is now 4x faster than it was a decade ago. In 2015, many considered us to be solely a Maggi Noodles company. Since then we recalibrated and rejuvenated the portfolio, launching over 150 new products that have contributed to 7% of sales. Our consumer metric scores went up in the last decade. We have added 1.3 million more retail outlets since 2016, with the highest gains amongst peers in 2024. The RUrban strategy began in 2019 and has increased RUrban distribution touch points to 28,240. Today, we are present in approximately 209,050 villages. Through relentless consumer cluster-based and RUrban strategy, our brands reach 2 out of 3 houses. In the last decade, Nescafé has strengthened its leadership position by gaining market share and bringing more than 43 million households into the coffee category by expanding its reach both at the top and at the bottom. Once a muted business, confectionery has tripled its business in the last 10 years. KitKat doubled its market share and became the fastest-growing brand within the chocolate category in India. Today, India is the second largest market for KitKat globally. A decade ago, it was at #10. Munch and Milkybar have also contributed and doubled their business. The prepared dishes and cooking aids business, our [Foreign Language] as we call it, or the heartbeat of your company, has doubled the Maggi business in India, which is also the single largest market worldwide for Maggi, which sharpened and increased space of innovation and premiumization. We ventured into some new categories to establish robust pillars of growth such as breakfast cereals and pet care business and opened the first NESPRESSO boutique in India, signaling the potential of health care products in India. Your company has joined science with Dr. Reddy's Laboratories Limited, which has got on to an encouraging start combining synergies of nutrition product portfolio and distribution reach. In the last 10 years, the out-of-home business moved from just being a coffee vending business to a vibrant and powerful portfolio business. The portfolio has been transformed with premiumization in beverages and foods, robust customer acquisition and geographical expansion beyond metro and megacities. Today, it is the second largest business in Asia, Oceania and Africa. Our now 1,000 Retail One kiosks are located in colleges, hospitals and tourist hotspots, employing over 245 women and people with disabilities as food handlers. As a consequence of robust growth, your company is investing in new capabilities and capacities by increasing product lines in existing factories and setting up the Sanand factory in Gujarat for confectionary and prepared dishes and cooking aids. On the annual is the 10th citadel of manufacturing that is coming up in Odisha. The CapEx levels have increased from 1.8% of sales in 2015 to 10% of sales in the financial year ended 2024-'25. This not only demonstrates the focus on Indian consumers but also our commitment to manufacture in India and Make in India as a theme. Your company has consistently improved the nutrition profile of the products that it manufactures. We signed FSSAI's eat right pledge and reduced added sugar by 6%, salt by 10% and total fat by 2.5% across categories. Maggi was fortified with iron and integrated millets across key portfolios like Maggi, a+ and breakfast cereals. We reduced added sugar in CERELAC by up to 30% in the last 5 years and recently introduced new CERELAC range with no refined sugar option. Ladies and gentlemen, I now focus on the second theme, speed, technology and digital transformation. In the last decade, your company accelerated its digital journey, adapting to the new vistas of change in consumer marketing, distributor outreach and interactions. Started in 2019, developed applications to strengthen several value chains. All our employees are now digitally wired. Technology has been the greatest enabler for sales and distribution. We can achieve our target using analytics, markets and pin codes we need to go to with our products. Today, using data analytics and with the benefit of AI, we moved from information-based platforms into predictive platform. Through sales automation software, our salesperson know where to sell, which promotion to focus on and which outlet to concentrate to enhance business. Our world-class distribution centers are racked, stacked and fully technologically enabled. Our factories in India are environmentally friendly and digitally corrected with most contemporary technologies. Dear members, now I would like to take you through our third theme, people at the heart of our business. Many years ago, my [Foreign Language], which is Tamil for Grandmother, gave me timeless wisdom, [Foreign Language] she said, take care of the people and things will take care of themselves. Our words still resonate with me because it is the people who matter. Your company has a multigenerational workforce from baby boomers to Gen Z. Diversity creates an unique intersection of humanity, each with an unique experience, a distinct cadence of thought, quite wisdom and audacious dreams. People are invested in your company for a long haul. In my current role, nearly 6,000 people were awarded long service awards ranging from 10 to 35 years, around 41 people with disabilities work in our factories and offices. We are one of the most progressive policies on inclusivity, bringing about mindset shifts and nurturing future-ready women leaders as successors for senior leadership roles. With immense pride, I would like to narrate the story of Sunil Kumar Singh, who left his home 22 years ago in Chapra, Bihar, with a dream of a father to gift his daughter the education he perhaps never had. He joined Nestlé India to oversee the kitchen pantry. He serves the best NESCAFÉ to the employees. Today, his daughter, Jyoti, armed with an economics degree, holds the position of an associate with the very company where her father works. A decade ago, only 10% women formed the management committee. Today, there are 21% given. 50% of our Board members are women. We have one of the highest representations of women in FMCG field sales force. The Sanand factory has around 45% women workforce who do everything, plan, procure, produce, package, quality control, release from warehousing, control sophisticated digital factory operations and nurture every pack that you as our consumer relish. They work relentlessly balancing work and families, a determination that is inspirational. I would now like to focus on the fourth theme, the importance of partnerships that has helped us grow together to go far. We are integral part of the India story, tracing our modest beginnings 113 years ago. Our first sales agent began work in Chennai and Kolkata in 1912. In the last decade, we have deepened our connection with Bharat through our 80,000 dairy farmers, 5,000 coffee farmers and 2,500 spice farmers. They toil hard to give our consumers brands of impeccable quality. Today, about 40% of our distributors have been associated with us for over 10 years. They have seen us through thick and thin, good times and bad, crisis and calmer moments. Over 4,600 suppliers give us materials and services of unimpeachable quality, and our sustainability partners make sure that we walk the talk. Ladies and gentlemen, our fifth theme, purpose, business is a force for good. Purpose when interwoven with performance makes meaningful contribution to the consumers, people and the nation. Sant Kabir presciently said, [Foreign Language], in vain is eminence, just like a date tree, it gives no shade for travelers, its fruit is hard to reach. Your company continues to positively impact the lives of 16 million beneficiaries with the hope to transform a life, a community, a village through rural development, education, nutrition awareness, environmental initiatives, livelihood enhancements, feeding support programs, water and sanitation improvements. Your investment in your company is often so much more than just a transaction. Your shares are interwoven with life's most significant milestones. It is tied to the dreams of a first home, the promise of education for your children, the celebrations of a wedding day and the security of retirement. I met a young gentleman studying at a management institute in India. His father is a Nestlé India shareholder, who sold his shares purchased many years ago to fund his education. It is with this understanding that I alongside my colleagues step into our roles each day, mindful of the immense faith you have placed in us with your investment. Thank you for that unwavering trust. Our sixth but most important theme is culture and values. Culture is the unspoken language that helps people act in difficult times. The culture of your company rests on the pillar of respect, decency, diligence and humility. Culture is the chemistry between the power of purpose and the inspiration of our sacred values, which, if nurtured, can lead to a sustainably strong and robust results irrespective of external circumstances. The only legacy a leader leaves behind is culture. So now as I proceed to the longest coffee break of my life, my retirement, I would urge you all to keep the faith in an organization that works extraordinarily hard to live up to its values, purpose and expectations. The storyline of Nestlé has been adversity makes us stronger, insisting that it is not whether we stumble, it is whether we pick ourselves up and dust ourselves off and get on with the job. Irrespective of the storms or shoals that come our way, Nestlé charts always its own course between eyes fixed on the horizon, whilst taking care of those around us, because we truly believe that we all rise and fall together. As it is often said, great organizations make ordinary people do extraordinary things. To the partners for their collaboration, the esteemed Board of Directors for their guidance, I trust in the future of the company, our people for their integrity, determination and drive and the consumers for bestowing their love for our brands. It has been a privilege to serve you. A special thanks to Rita Srivastava, my executive assistant for 20 years, who has managed by time and work life with impeccable commitment and dedication. Finally, Sunil was serving the best NESCAFÉ that would keep me invigorated for long hours. Mahatma Gandhi has once said, "The best way to find yourself is to lose yourself in the service of others." Today, I officially pass the torch of your company into the capable hands of Mr. Manish Tiwary to steer your company to the next phase of growth, building upon the strong foundation that is being set. I truly believe that I leave this organization which I think will go from strength to strength, walking faster, more focused, more determined and future-ready and most importantly, inclusive and compassionate. So even though I pass on the baton to my worthy successor, I shall remain amongst you as a lifelong believer in the idea of Nestlé or Nestlér, and whenever our paths cross, we'll wish you well, as in the words of a poet, [Foreign Language]. On behalf of the Board of Directors, I would like to especially thank you the shareholders for the support and confidence in [Technical Difficulty] over the years. As a tribute and you know that I'm found of poetry, I have composed a poem for you, which I would like to read out. If you like it, let me know, if you don't like it, you can be silent. The poem is in Hindi, and therefore, I shall take the liberty of reading it in the language in which it has been composed. [Foreign Language] Thank you very much for your time and attention, and thank you dear shareholders for all that you have done for this organization, for me and for everyone who works in this company. I will now take up the notice of the 66th Annual General Meeting dated 24th April 2025, together with the audited accounts and Board's report for the financial 2024-'25, which has been duly sent to the members by e-mail and public notice published newspapers as stipulated. The auditor's report for the period under review does not have any qualifications, observations or comments on financial transactions or matters, which have any adverse effect on the functioning of the company. In view of the same, there is no requirement to read the auditor's report. Your company provided members with a remote e-voting facility on the AGM agenda items from 23rd June 2025, 09:00 to 25th June 2025, 17:00. E-voting facility is available during the meeting. And as mentioned in the notice at the end of discussion on the resolutions on which voting is to be held. There will be electronic voting using the e-voting platform of NSDL for all those members who are participating in the meeting but have not cast their votes by availing the remote e-voting facility. The icon for e-voting is available on the top of your screen, which will redirect you to the e-voting portal of NSDL. The e-voting facility is active and will be closed along with the closure of the meeting. I will now proceed with the agenda as per notice of the 66th AGM, with 3 ordinary business items listed as agenda items 1 to 3 and 4 special business items listed as agenda items 4 to 7. Agenda item 1. For the adoption of the stand-alone and consolidated audited financial statements of the company for the financial year 2024-'25, including the balance sheet as of 31st March 2025, the statement of profit and loss and cash flow statement for the year ended on that date and the reports of the Board of Directors and auditors thereon. Agenda Item #2. For the confirmation of payment of 2 interim dividends and declaration of final dividend for the financial year 2024-'25. Agenda Item #3. For the appointment of a Director in place of Mr. Satish Srinivasan, having DIN 10173407, who retires by rotation and being eligible, offers himself for reappointment. Agenda item #4. Ordinary resolution for the ratification of remuneration of Mrs. Ramanath Iyer & Co., cost auditors, firm registration number 000019, appointed as the Cost Auditors by the Board of Directors of the company for the financial year 2025-'26. Agenda Item #5. Special resolution for the reappointment of Mr. P. R. Ramesh, having DIN 01915274 as Independent Director effective from 1st July 2025 for a period of 5 consecutive years. Agenda Item #6. Ordinary resolution for the appointment of Mr. Manish Tiwary, having DIN 02572830, as a non-retiring Director and Managing Director effective from 1st August 2025 for a turn of 5 consecutive years. Agenda Item #7. Ordinary resolution for the appointment of Mrs. S. N. Ananthasubramanian & Co. as a Secretarial Auditor of the company with effect from 1st April 2025 for a period of 5 consecutive years. This year also being a virtual AGM, there are 3 ways in which members can ask questions on the AGM agenda items: one, members who preregistered as a speaker at least 48 hours in advance of the meeting; two, [Technical Difficulty] who have submitted their questions 48 hours in advance of the meeting; and three, communication box available on the screen to the members participating in the meeting. I request Mr. Pramod Kumar Rai to collate the questions and share with me after I take up the questions from the speakers and e-mails received by the company. I would now request Inba to invite the team members who have preregistered in advance as a speaker. In the interest of time, I would sincerely request all speakers to restrict their questions to a maximum of 2 to 3 minutes.

Thank you, Chairman, sir. Ladies and gentlemen, we will now begin the question and answer session. We now invite our first speaker member, Mr. Ankur Chanda from Rohtak, having client ID 10914729 to speak.

I am audible?

Yes, sir.

Okay. Okay. Sir, I just want to say that our corporate governance is too good. So sir, [Foreign Language] sir, in September 2008, Hong Kong government found melamine in Nestlé milk product, 6 infants dead from kidney damage and 860 babies hospitalized. After that on 2 October 2008, Taiwan Health Ministry announced that your milk product contents low-level melamine. [Foreign Language], sir. Second, in 2015, weevils and fungus found in CERELAC. Third, in June 2009, an outbreak of E. coli 0157:H7 was linked in Nestlé refrigerated cookies dough, organized in a plant in Virginia U.S. It caused sickness of more than 50 people. In 2015, FSSAI found led 17x more than the permissible in Maggi. Due to that on 3 June 2015, government banned Maggi, even Nepal and other world also banned Maggi. In Philippines, localized version of Maggi Instant Noodle were sold until 2011 when the product group was recalled for suspected Salmonella containments. [Foreign Language] After that, product not returned to market. [Foreign Language]. In 2024, an investigation by Public Eye, Swiss NGO and the IBFAN revealed that Nestlé popular baby CERELAC cereals and formula sold in lower and middle income countries contained significant high amount of sugar compared to sold in Europe and other. Sir, [Foreign Language].

Thank you, Mr. Ankur Chanda, thank you for your question. I just would like to point out one thing that a lot of the cases that you are referring to are outside of India. I am the Chairman and Managing Director of Nestlé India. I'm not the Global Chairman of the company in a position to be able to answer very, very old cases, which are 15, 20 years old. On the 2 specific cases that you talked about pertaining to India, which was on the Maggi Noodles case, [Foreign Language], the company has come out clean and resumed the operations on the 8th of November 2015 after the allegations that have been made. And today, we are back to being market leaders in the category in which you are referring to. So [Foreign Language] to look at science. We are not trying to hide anything, sir, with all due respects. And as far as the sugar issue is concerned, the Health Minister, Mr. Nadda in Parliament, clarified very clearly that Nestlé CERELAC was fully compliant with the local laws of the land. So therefore, there has been no violation there. The company has always believed in the power of truth, in the power of science, in the power of trust and will not violate it under any circumstances. So most respectfully, I would like to submit to you that, that is the reason why the company continues its performance and continues to attract its consumers as we move forward. Thank you very much.

[Operator Instructions] I now invite our speaker #2, Ms. Arti Brar from Delhi, having client ID 10921074 to speak. Ms. Brar, may we request you to unmute your connection. Ma'am, your audio is mute. Yes, please go ahead.

I just want to say a few words for Mr. Suresh Narayanan, Nestlé India and the shareholder team. There's no question answers, but there's a word of appreciation I have for all of you. Thank you for providing me the opportunity to speak. As a major shareholder, I feel lucky to have Mr. Suresh Narayanan at the helm for the last many years. He has successfully steered Nestlé through the most turbulent times, including the Maggi crisis in 2015. Under his leadership and vision, Nestlé has grown leaps and bounds. I wish him all the best for his retirement in Bangalore. The Shareholder Department, with which I interact, has frequently shown high levels of professionalism and engagement. They have been responsive and have supported me in many of my requests. Thank you to Mr. Narayanan and the Shareholder Department for all the dedication to us. Thank you, sir. I wish you all the best.

Thank you. Thank you, Madam. Thank you very much for your very kind words, for your steadfast loyalty in the company over decades. It's truly appreciated and that's what makes this company strong. Thank you very much, Madam.

Thank you. Thank you, Ms. Brar. We now move to our speaker #3. That's Ms. Vinita Kaul from Gurugram, client ID 20825837. Ms. Kaul would like to ask a question over audio. Ma'am, could you please go ahead?

I've never spoken on a meeting like this before, but I would like -- I have no questions, no answers required. All I want to say is that I have been associated with Nestlé for -- since '87 when I was servicing the account and doing collaterals for Maggi. And that is the time when I made my mother buy some shares in Nestlé. After her passing -- in fact during her lifetime, we didn't realize that the shares were still around. We thought she had sold them. When we discovered that they were still around and they were with the government. And I reached out to Mr. Narayanan and I reached out and he put me in touch with Priyansha. And the smooth sail with which my shares finally came into my Demat account is something I just cannot thank Mr. Narayanan and Priyansha for. There was smooth sailing. I had absolutely no problem in getting them. And with a team like this at the helm, Nestlé can only go forward. And I look forward to continuing my association with Nestlé. And I wish Mr. Narayanan all the very best in his retirement. And hope and I continue that this relationship with Nestlé continues. Thank you very much.

Thank you. Thank you, Vinita. Thank you very much for your very kind words. It is a moment of great pride when you recognize my team, Priyansha and Pramod for how they have helped you. I think it is our task to ensure that wherever possible, we are able to give assistance to our shareholders, especially in genuine cases of the kind that you mentioned. Good luck to you, Ma'am. Thank you very much for your kind and generous words. And I do hope that you enjoy great benefit of holding on to the shares over an extended period of time. Thank you very much.

Thank you. We now invite our speaker #4, Mr. Ayush Gupta from Delhi, client ID 07635382. He'd like to ask a question over audio. Mr. Gupta, please go ahead.

[Foreign Language]?

[Foreign Language].

[Foreign Language].

[Foreign Language]. Thank you.

Thank you. Our speaker #5 is Mr. Pramod Kumar Jain from Delhi, client ID 10082531, would like to ask a question on audio. Mr. Jain, please go ahead.

[Foreign Language].

[Foreign Language].

Thank you. We now invite our speaker #6, Mr. Manas Banerjee from Kolkata, with client ID 10357629. We wish to inform Chairman that Mr. Banerjee has also shared his questions in advance. Therefore, in the interest of time, those may be taken up first.

Thank you. Thank you, Mr. Manas Banerjee for your question. I think the question was on the performance of the milks and nutrition category and decline in consumption due to high prices and strategy of the company to deal with it. I think the overall food inflation, Mr. Banerjee has been quite significant in the country. That obviously has led to a strained price lines as far as some of our brands are concerned. We have, therefore, looked at a series of cost-saving and efficiency initiatives and only after that initiated any price increases that we will be doing in a responsible manner in order to ensure that the category growths remain. I think the impact certainly is now coming down over the next couple of months. Also as part of the impact of the performance of the milks and the nutrition category would be also reflected in the divestment of the health care business to Dr. Reddy's. And overall terms, I think commodities like coffee, cocoa are at elevated levels, are at decadal highs, and that clearly puts enormous amount of pressure in terms of managing both the penetration-led growth and the bottom line of the company. And therefore, there have been short-term pressures, and I think you are right in that. But hopefully, we will be getting back to the normal stride in the coming quarters and the coming months. And also significant cost savings we effect every year, almost 2% each year is what we contribute in terms of cost savings. And hopefully, this will help balance some of the margin across our brands at a company level. But yes, the commodity inflation clearly has cast its shadow on the overall evolution of the company's volume-led growth that we have been following for a while. Thank you.

Chairman sir, can I talk one minute, sir?

Yes.

Hello. Congratulations to the Board on the 1:1 bonus issue. This reward recognized shareholders' loyalty and reflects the company's strong financial performance. And sir, I wish to the God for your good health and prosperous life after retirement. Thank you, sir.

Thank you. Thank you, Mr. Banerjee. Thank you for your good wishes, and thank you very much for your question. I think I do appreciate shareholders who take interest in the affairs of the company and ask us valid questions. Thank you.

Thank you. We will now move to our speaker #7, Mr. Raju from Delhi, with client ID 10079634. He'd like to ask a question over audio. Sir, you may go ahead, please.

Hello.

Yes, sir.

[Foreign Language]?

Yes, sir.

[Foreign Language].

Thank you very much, Mr. Raju Verma. [Foreign Language]. Thank you.

Thank you. We invite our speaker #8, Mr. Manoj Kumar Gupta from Kolkata, client ID 04657156 to speak. Mr. Gupta, your audio is unmuted as requested. Please go ahead.

My name is Manoj Kumar Gupta. Today, I'm joining this meeting from Delhi. Just I'm in metro. I've reached Delhi just now, and I'm going to Faridabad, sir. I have a great respect in regards to you. I feel proud on the leadership. And sir, [Foreign Language].

[Foreign Language].

[Foreign Language].

[Foreign Language]. Thank you.

[Foreign Language].

[Foreign Language].

Thank you. We will now move to our speaker #9, Mr. Manjit Singh from Delhi, with client ID 10907641, would like to ask a question over audio. Mr. Manjit Singh, please go ahead.

Welcome, sir. Nestlé Indian team, management teams, secretarial team and my co shareholder, [Foreign Language]. Thank you for the management team. Thank you for the secretarial team. [Foreign Language].

Thank you. Thank you, Manjitji. Thank you. [Foreign Language].

Thank you. Our speaker #10, Mr. Nasser Shafi from Srinagar had registered. However, he's not connected to the meeting. We will therefore move to speaker #11, that's Mr. Sarvjeet Singh from Delhi, client ID 02090517. Sir, your audio is unmuted. Please go ahead.

Hello. Chairman, sir, can you hear my voice?

Yes, I can hear you, Sarvjeet.

Chairman sir, first of all, good morning to you, all the Board of Directors, all the staff of Nestlé India Limited and my co-fellow shareholder. [Foreign Language].

Thank you. Thank you, Sarvjeet. [Foreign Language].

Thank you. We now invite our speaker #12, Mr. Hiranand Kotwani from Mumbai, client ID 18811084 to speak. Mr. Kotwani?

Namaste from Hiranand Kotwani. I am speaking from Kalyan. It is a great privilege and pride for me to talk to you. It is a great company. We always acknowledge, but due to Delhi, we cannot come there. Certainly, a lot has been spoken. My best gentlemen leaving us, but certainly, the only thing in my mind is regarding our products are well, good, but how you tackle this expiry date. Some people are mischiefing, because the greed is there, everywhere. So how you tackle this expiry product, our products when it expire, how do you tackle, that is my concern. Nothing more to it. I just pay best wishes. [Foreign Language]. Thank you. [Foreign Language], no problem. Thank you. Good luck ahead. It's a great pleasure to talk to you.

Thank you, Mr. Kotwani. Thank you very much. I think you are asking a very important question on the expired stocks. The company takes extra pains and efforts in each retail outlet to ensure that there is rotation of stocks. We are equally cognizant of the fact that some people try and misuse it, but we try and control it as best as we can, Mr. Kotwani. And I want to assure you that whatever is sold to the consumer is of the highest quality because you will buy Nestlé products only if food quality and safety is there. That is why you buy our products, and that is why you're a shareholder of this great company. So thank you for your suggestion, and we will do our very best. Thank you.

Thank you. We will now move to our next speaker member. Speaker #13 is Mr. Kaushik Shahukar from Mumbai, client ID 18690797 to speak. Chairman, we wish to inform you that Ms. Shahukar has also shared his questions in advance. Therefore, in the interest of time, those may be taken up first.

Thank you, Mr. Shahukar. Thank you for your question, which I will read out, with rising consumer demand for LDR and sustainable food options, how is Nestlé India innovating its product portfolio to balance nutrition, affordability and environmental responsibility. Very good question, Mr. Shahukar. Nestlé continuously looks at upgrading the quality of the nutrition profile of our products. Now as I mentioned in my speech itself, we have taken steps in the last decade and more to reduce the levels of fat, sugar and salt in our products, including more greater amounts of fiber in the products coming up with new offerings using ancient grains like millets and others. And I think the whole portfolio of the company, even if you take something like Maggi, we have today oats and millet incorporated, oats and jowar incorporated, so there is a fair amount of progress that is being done in order to upgrade the quality of the nutrition that we seek to offer in keeping with the consumer trends. However, as you would know, Mr. Shahukar, the thing that we have to balance is affordability and taste because distasteful product, even if it is very healthy, will not be bought by consumers. So this is where the balance comes. In food and beverages, also, there is a lot of focus on introducing micronutrients in order to ensure that fortification helps us. In 2024, you would be happy to know that almost 9.6 billion fortified servings across various categories, including instant noodle seasonings, infant formula growing up, milk and breakfast cereals were sold by the company. We also introduced a range of plant-based proteins for the out-of-home business, Nestlé professional business as of now. But we will be expanding it to the retail segment as well. And these soya protein snacks are versatile and naturally cholesterol free. There has been some progress made in our yogurt business for unsweetened Greek yogurt and vanilla flavor ready-to-drink coffee, which have also been with added protein. So many steps are being taken across the portfolio. Since Mr. Shahukar, Nestlé invests substantially in R&D globally, it's the company with the largest R&D budget. I'm confident that over the years, you will see even more efforts made to balance good taste, good affordability and good nutrition. Thank you very much for your question.

Thank you. We will now move to our speaker #14. That's Mr. Jaydip Bakshi from Kolkata, client ID 36203908. Mr. Bakshi, could you please unmute your connection?

Yes. Very good morning, Chairman, CFO and key manual persons present in today's virtual conference. Myself Jaydip Bakshi connecting from the city of Kolkata. First of all, I convey my thanks to our company's Secretary Pramodji for giving me an opportunity to express my view and presenting an informative and detailed annual report and also to our moderator for conducting this video conference in a smooth manner. Sir, the initial speech was very much informative and also lastly, the poem you recited, it's lovely hearing, sir. And thanks once again for the dividend you passed on INR 27, including the final one and congrats for the growth in market capitalization and building for our company on the 6 value pillars, which you mentioned in the initial speech. Sir, regarding the line of inflation, what is our thought regarding promoting up sachet for different products? And sir, what is the CapEx for R&D and new value-added products thought of? And congrats once again for the innovative idea of introducible edible fork made from wheat flour in tie up with Indian startup company. And helping out to MSME, we are sourcing around 23%, which is mentioned in Page 288. Congrats once again for using recycling product and reduced use of virgin plastic and plus introduction of Thermofoam cups for Maggi cup, which is a hot favorite of everyone. It will reduce environmental impact. It's really a good initiative. Sir, kindly highlight on this digital manufacturing or DMO, which is mentioned in annual report on solution for progress and efficient use of workforce, kindly highlight on that. And work progress inroad when making into Eastern India in this Orissa, our 10th unit, kindly share some thoughts regarding this. And sir, Page 181, I find there's an increase in inventory position, kindly share some thoughts. That's all from my side. I'm personally using all our various products and really satisfied with the quality. And thanks once again for the bonus, which you've announced in the occasion of your passing out of the baton as the Chairman and hope you enjoy a good, retired life. And also, sir, if possible kindly arrange for a plan visit, so we can see the working operations and continue with this VC, so that we can keep in touch in the future AGMs. Thank you and all stay safe. Namaskar.

Thank you, Mr. Bakshi. Thank you very much for your questions. I think there are a wide range of questions that you've asked. I'll take a few of them as part of the answer. One is on digital manufacturing operations. I think that's the new range of digitization of operations. Most of our factories today are moving away from the pen and paper monitoring of manufacturing processes. And in fact, doing it digitally, it helps us in real-time monitoring and also in prediction. Also with the new talent that is coming in, clearly, that's an important part of the operations. So most of the operations are now digitally monitored across factories. Some factories are in more advanced state. Some others are -- the older factories are in a less advanced state because people have to be trained. The newer factories like Sanand, for example, are more on that path because of a younger workforce who are already trained in digital activities. On innovation, I think there is a fair amount of -- totally, the company has committed between 2020 and 2025 about INR 6,500 crores on CapEx, about INR 5,600-odd crores has already been spent. The factory in Odisha, which is a world-class factory, Mr. Bakshi, you'll be happy to know that the initiative into the east is with a world-class factory will entail an investment of about INR 950 crores, work is on there, and I hope that it will also come up on stream in some time. So regarding your question on inventory buildup, I think the inventories have almost doubled because we have taken higher stock covers of green coffee. As you know, coffee has been on a rampage. It had 60-, 70-year highs. So we have taken a slightly longer position in the coverage of coffee, which has entailed a greater use of working capital. And milk derivatives as well, there has been an increase. But all of this will get absorbed as we go forward in the operations. Thank you very much.

Thank you. We now move to our speaker #15, Mr. Dharav Jamadar from Surat, client ID 63691948. [Operator Instructions] Over to Mr. Jamadar. Please go ahead.

Greetings of the day and namaste to respected Chairman, Board members and all the stakeholders of my company. My name is Dr. Dharav Jamadar, a proud shareholder and a loyal customer of our company. Firstly, I would like to congratulate all the stakeholders of my company for their contribution in this particular fiscal year due to which our company has performed tremendously well, which has, in turn, generated impeccable and robust numbers in this particular fiscal year. Sir, it is an honor to speak in front of you. Certain questions which I would request you to address are: First, our top line has grown at half pace to that of our bottom line, mainly because with respect to our urban consumption consumer staples, we have seen muted value and volume growth. And with respect to rural consumption, where things are better and stable but are not growing at expected pace. Now with the disposable income boost given by the government in the recent budget, and also good monsoon, do you think there shall be a change in scenario for growth? And if yes, when can we expect a significant uptick? Second, in the recent past, we have seen inflationary pressure in key commodities that are used as raw materials by us in various products we are offering, like palm oil and coffee. Do you think that the same shall prevail in the foreseeable future. Additionally, will we be able to pass on the same buyer price hikes on the customers? Or will we see a dent in our margins? Third, being a company who is economically operating in perfect market conditions wherein there are no restrictions for the new entrants in India, currently, we are observing intensive competition threats from unorganized market and new entrants. How do you think FMCG sector as a whole is looking for the coming years in a growing nation? And are there any concerns wherein due to heightened competition, we are losing our monopoly in any of our products? If so, what are the remedial steps which we are taking? Fourth, we have seen -- we have been a pioneer company in this industry for our nation and some of the marquee products like Maggi, Nescafé and KitKat have grown significantly, helping us build an impeccable and one of the most trusted brand in heart of millions of customers in India. But which brands or products do you think will lead the next rally of growth for us? Last question, Chairman sir, your contribution towards this company has been immense and can't be measured in words. So while handing over the torch of leadership to Mr. Tiwary, what would be the biggest learning of your leadership would you pass upon to him to steer the company for the future ahead? Happy retirement life for you sir. Thank you for providing this opportunity.

Thank you. Thank you. Thank you, Dr. Dharav. Thank you for your multifarious questions. I will take the last question first. I think the only message to my very, very seasoned and very experienced Manish, would be that crisis is a new normal, and adversity is the only thing that does not change. So I think we will have to battle many more as we go forward, but the company is very, very strong. You're right, quickly taking your point. I think the growth levels have clearly been not -- 22 out of the last 32 quarters, the company has recorded double-digit growth, which means 10 quarters have not been double digit, so therefore -- and that has been largely in the last couple of quarters. As you rightly alluded, there has been an overall slowdown in the consumer goods space because of food inflation, because of evolution of real incomes, unemployment and various other global maladies that have also affected us. I'm happy to report that things are stabilizing. Food inflation clearly has impacted our business because we try and cost savings as the first area port of call followed by the care capacity to get increased efficiency in and buying efficiencies. And only in the end, we look at price increases. Sadly, we have had to make quite a few price increases. It really has a short-term impact on volumes. So we would, going forward, not like to use price increases wherever we can. But again, it will depend on the extent of the cost increases. Like coffee, costs go up by 60%, 70%, it's very difficult to manage it. But I think that's where we stand as far as the market is concerned, but overall evolution looks to be a bit more positive in the coming quarters. Thank you.

Thank you. We now invite our speaker #16, Mr. Gagan Kumar from Delhi, client ID 11044542. Sir, your audio are unmuted. Please go ahead with your question. Mr. Gagan Kumar?

Am I audible?

Yes.

Good morning, Mr. Chairman, Board of Directors and fellow shareholders. Myself, Gagan Kumar, I'm joining this meeting from Delhi. First of all, I would like to mention, let me make myself very quick because meeting started with good morning, now it's around afternoon, it will not go till evening, let me make myself very brief. I have always -- I had joined this meeting as a speaker from last 4, 5 years with only major 2 concerns. Sir, kindly split the share and kindly consider the bonus. Both of my options are now taken up, and I'm a proud shareholder of the company. And now my 2 general queries are that can we differentiate our revenue under off-line and online mode. And how much shares of our company is transferred into IEPF fund in last financial year. These are the 2 only queries for this today meeting. And it would be unfair on my part without mentioning high corporate governance under the leadership of our CFO, CF, Mr. Pramod, Priyansha ma'am and the entire secretarial team, they are easily accessible and always available to shareholders. So thank you so much for this kind of approach, investor-friendly approach. Thank you for this opportunity.

Thank you. Thank you, Mr. Kumar. Thank you very much for your questions. I think the share of e-commerce as part of the total is about 8% of the business comes out of e-commerce. 6% out of that 8% is quick commerce. So therefore, accounts like Blinkit and Zepto are more key there. So e-commerce is a relatively fast-growing channel, but your company believes in balancing channels between quick commerce and also e-commerce and also modern trade and traditional trade. So we have a healthy balance there that I would like to assure you. To give you a detail of how much has been transferred to IEPF, let me read out the numbers to you. As per the IEPF rules during the year 2024-'25, a total of 176,030 equity shares of face value INR 1, in respect of which dividend has not been claimed for 7 consecutive years have been transferred with a Demat account of IEPF authority. So this is what is the number that you're looking for, and this is what I would like to report. Thank you very much.

Thank you. We now invite our next speaker member, #17, Mr. Yash Pal Chopra from Delhi, client ID 10592847. Sir, may we request you to unmute your connection and ask your question.

Hello?

Yes, sir.

Am I audible, sir?

Yes.

Myself, Yash Pal Chopra, shareholder of the company for more than 3 decades. And I know very well that Mr. Suresh Narayanan knows me by my name because I have always been a speaker just in the first or second opening speaker. And today, as Mr. Narayanan is going out, so I have been pushed down to the last -- as the last speaker. No problem, but still I'm thankful to them that they have not canceled my speakership. So this is a very big thing. Sir, to begin with, I must complement our Honorable Chairman, CMD, Mr. Narayanan sir because he has just -- he has been acting as Narayanan for the company. And for the last so many years, he had just made a dedicated effort for the -- raising the image of the company, and the company is not only national, it has been given the international imagine. So this is a great, great thing, and I'm very much proud of his leadership over there and the dedication of the team. So sir, before I proceed further, I would like to complement the management, congratulate them being for joining hands with Ranbaxy, another big company, for those health products and for the medical products, so that will add feathers to our company, that will add strength to our company. So -- and the next congrats is for that Modi's main ambition of women empowerment, you have maintained that there were 4 women directors out of 9 directors. This is the only company where I have seen that so big respect for the women director, females, this is a great, great thing. And for that, I salute Mr. Suresh Narayanan sir. Then I congratulate for the corporate action of awarding bonus is a long, long pending request from the shareholder. And in every meeting, we had been asking for the split and bonus and all that. And before your departure, you have just -- you have granted all that thing. So I'm grateful to you. So that is one of the things which is worth complements. Then I have got some negative point is that our company has shown -- our performance has shown all-round decline from the previous year, decline in profit, revenue, EBIT, ROCE, EPS and dividend. So sir, I would like to ask what is the reason for that? And what is going to be the strategy to turn around this image? So this is the only query I have. But I will not -- still I've got to say something that as a food for thought, every year, I have been giving you some food for thought, and you are a very, very considerate person that you accept that thing. If you remember on this Maggi issue, I had asked you to [indiscernible] those costlier brand ambassadors like Amitabh Bachchan and Madhuri, and you had just added to that thing. And that way, you had saved a lot, a lot of money, lot of funds for our company. And I had told you that make our own product as ambassadors and these product -- now today, our products are just brand ambassadors of Nestlé. You talk of Maggi, they will say Nestlé. You talk of Nestlé, they will say Maggi. So this is the thing which has been achieved by you. So I just compliment you for that, sir. Sir, as regards your retirement, I just come to that thing because I am a retiree for the last 28 years. I got retired in 1997 and still I'm very, very much active. So I will give you just an advice that after your retirement, you are not to just relax and sleep, you have to retire yourself and you have to keep yourself active because so long you are active, you are live. Once you become inactive, you are just gone. So just keep that thing in mind that you have to be just on the same vigor and same wisdom. You may not go for this money and all that, but you can go for some NGO. You can go for some other social cause, so because being active, that will take you to a longer, longer active and smart life. That is what I wish for you. That is my management and that is my thought for you. So you must keep that in mind, that so long you are [Foreign Language], you will be just -- you will be enjoying all that. So sir, before I just close, I have got one [Foreign Language].

Sorry to interrupt, Mr. Chopra...

Just hold on. So he said that [ Inder ] has gone, and there has been no substitute for that. But still, you are there, [Foreign Language], because I found of listening to Mr. Suresh Narayanan, I'm fan of Mr. Suresh Narayanan. And so long he's there to speak, I will be there to listen. So before I wind up, I pray God for the long, long, long, happy and healthy life to you and positivity for the entire company, and welcome to our new CMD, Mr. Tiwary. So I would like to thank our CFO and our company secretary for getting me a grand, grand balance sheet with a covering page, adversity makes us stronger. Yes, we -- whenever there is adversity, we have risen up and we have just gone up and that is our strength, so we are proud of that adversity. We are not afraid of that thing. So best luck to you. Thank you. And if you can get some chance to meet us, make some in-house, in your training hall, make some meeting place and so that we may come, and we may meet you in personally, and we can wish you, bid you farewell. So that is our [Foreign Language]. That is what we want that way. So best of luck to you. Thank you. Thank you.

Thank you. Thank you, Yash Palji. I was waiting for you to speak every year. I wait for you. And for 10 years, you have not failed me. Every year, you give me your blessings and you give me your good wishes and I cherish it. And whether you speak at number one or you speak at number 10, your wishes and your kind words are more precious to me than the order in which the speech comes. I really will take your advice. I intent keeping active. I fully agree with you that an inactive mind and an inactive body will only lead to hastening the end, which I hope -- it will happen to all of us, but it should not happen so soon. Regarding the performance of the company, I would just urge you, Mr. Chopra and request you for your patience. I think the last 24 -- last 12 months have been a little bit tough but we are coming out of the trough. I think overall, the consumer goods sector and you must be shareholder of other companies as well, it has not been as good as it should be, but things are coming back. Food inflation is under control and I hope that you will be able to see much better numbers going forward. But thank you very much for your kind words and for your blessings and for your good wishes always. I really appreciate it. Thank you.

Thank you. We now move to our speaker #18. Mr. Yusuf Yunus Rangwala from Mumbai, client ID 00232396. Sir, your audio is unmuted. You may ask your question now. Mr. Yusuf Yunus Rangwala? There seems to be no response from Mr. Rangwala's connection. We will, therefore, move to our speaker #19. That's Priya Darshan Mehrotra from Sitapur, client ID 21408373. May we request you to please unmute your connection and ask your question now. Priya Darshan Mehrotra, maybe request you to please unmute -- yes.

Priya Darshan Mehrotra from Sitapur. Good morning, Mr. Narayanan and all your team. You must be knowing Sitapur Mehrotra family, Mr. Narayanan and I'm representative of this family. [Foreign Language], so thanks. Thanks for your gift as splitting then bonus. Thank you, sir.

Thank you. Thank you, Mehrotraji. [Foreign Language]. Thank you.

Thank you. We now move to our speaker #20, Mr. Ashish Shankar Bansal from Maharashtra, with client ID 00164334. [Operator Instructions] Mr. Bansal, please go ahead with your question.

Can you hear my voice, sir?

Yes.

Respected Chairman and Board of Directors, please do not enclose [ tech line IT ] with -- information to everyone. And upcoming factory in Odisha, when it will be stated? Also I thank for giving us bonus and a split. So one more request. If you can fulfill the shareholder request for plan visit, I will be grateful to you. Thank you so much, sir.

Thank you. Thank you, Mr. Bansal. Thank you for your question. I think the Odisha factory should be hopefully getting on stream somewhere in 2028 or '29. That's the current plan that we have for the factory. And regarding your request for a factory visit, if you are visiting somewhere close to where our factory is, we can entertain your visit, but we don't specifically organize for shareholder visit to factories. But if you are visiting the vicinity and if you would like to see a factory, that can certainly be arranged at mutual convenience. Thank you, Mr. Bansal. Thank you.

Thank you. We now move to our speaker #21. That's Rakesh Kumar from Delhi, client ID 00010225. Mr. Kumar, we've unmuted your audio connection. Please go ahead with your question.

Hello?

Yes, sir.

[Foreign Language]?

[Foreign Language], Mr. Kumar.

[Foreign Language]. Thank you, sir. Thank you.

Thank you. Thank you, Rakeshji. [Foreign Language]. Thank you.

Thank you. We now move to our speaker #22, Ms. Rama Jain from Delhi, client ID 10003504, would like to speak on audio. Ms. Jain, your audio is unmuted. Please go ahead. Ms. Jain, your microphone is unmuted, please go ahead.

Okay. Am I audible?

Yes, Ma'am.

Good morning, Mr. Chairman, Board of Directors and my fellow shareholders attending this meeting. All my questions have been covered in excellent Chairman speech and by the previous shareholders, so I have no question at all, but I just want to thank the secretarial department for providing me the opportunity to speak and I also want to congratulate the company and the whole staff for excellent performance. And thanks to the Chairman sir for providing us the bonus share. I just want to thank and convey my best wishes to the company. Thank you so much.

Thank you, Ramaji. Thank you very much. Thank you for your good wishes and for your kind words for the company. It's much appreciated, and we appreciate you being a loyal shareholder of the company. Thank you.

Thank you. We move to speaker #23, Mr. Gaurav Kumar Singh from Delhi, client ID 10099233, to speak. Mr. Gaurav Kumar Singh, your audio is unmuted. Please go ahead.

Hello? Am I audible?

Yes, sir.

Okay. Thank you so much. Respected Chairman sir, Board of Directors and fellow shareholders, good afternoon to all of you. My name is Gaurav Kumar Singh attending this AGM from New Delhi. So first of all, I thank you for giving me the opportunity to express my views on this platform. Sir, I'm a proud shareholder of the company for the last 25 years and attended many physical as well as virtual AGMs. My most of the questions are already covered. Still I wish to know that how many legal cases on our company and what steps have been taken to reduce them? Second, sir, can we try to increase our products in different CSD canteens? Sir, as far as the agenda of this meeting is concerned, I support all the resolutions along with my family members. In the end, I wish a bright future for the company and a great health for all of you. Thank you, sir.

Thank you. Thank you, Mr. Gaurav Singh. May I -- on your number of legal cases, I think there are different types of legal cases, Mr. Singh. So if you're interested in going the details about them or you want to know the total number of cases, I think if you can drop us an e-mail, it will be better because, as you know, litigation here happens at different fronts, and that's something that we keep track of. But I want to assure you, Mr. Singh that we have a very, very comprehensive, very competent legal and secretarial department that deals with many of the cases on a proactive basis. And therefore, I think we are probably less impacted from serious litigatory issues as compared to many other companies that you can think of. So I think that's the core strength of the company. Thank you. Thank you very much for your question and for your intervention. Thank you.

Thank you. [Operator Instructions] We invite our speaker #24, Mr. Praful Chavda from Hyderabad, having client ID 00191187. Mr. Chavda, may we request you to please unmute your connection, and you may ask your question. We will wait for a moment while Mr. Chavda unmutes his connection.

Hello? [Foreign Language]?

[Foreign Language].

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

Thank you. Thank you, Prafulji. [Foreign Language]. Thank you very much for you questions and thank you for being a well-wisher of the company. Thank you.

Thank you. We now move to our speaker #25. That's Mr. Vinod Motilal Agarwal from Mumbai with client ID 10678714.

Yes. Yes. Can I start my video. I don't know my video link has not come. Okay. Respect to Chairman, Mr. Suresh Narayanan; CFO, Svetlana Boldina and CS, Pramod Kumar Rai. We started in the morning, now it's afternoon, sir. Sir, the revenues have been -- the story of your hands at the company is given on Page 10, sir. You have taken the company from INR 81 billion to INR 210 billion turnover. The PAT have increased from INR 5.6 billion to INR 33 billion, all very good, sir. You've done a tremendous job at the -- company have taken. Sir, my only 1 or 2 queries, sir. Last year, we have added one line Egron 3 for coffee, sir. How much extra coffee -- because the Egron line 1 was getting old and you added and made capital expenditure about INR 600 crores some on that Egron line. And another line you have -- investment you made is about INR 1,100 crores for the Sanand plant for making KITKAT. We -- the KITKAT, we are #2 worldwide. So are we likely to become #1 worldwide with the additional production and sales, we may be exporting a lot of this production? So we become the largest producer and largest seller of KITKATs worldwide with the addition of the Sanand plant. Is it true, sir? And sir, we also have done a tie-up with Dr. Reddy's Laboratories, sir, in which you have 49% and 51% stake. Sir, what will be the revenues and what will be the profit margins coming out of that joint venture, I would like to know, sir. And I'm impressed by your linguistic sir. You've been giving Hindi quotes, poetic quotes, extempore sir. When someone gives it in Hindi, you reply back to him in Hindi in the poetic sense, sir. This is very different from other directors. I have not seen other directors come back, replying back and reporting back in Hindi, poetic quotes, which was very unique. And the other director we meet in this AGM, Mr. Sidharth Birla. We meet him in the Xpro -- he is the Chairman in Xpro so we meet him out there. So I wish the company all the best, keep on growing, sir, beyond you. We'll definitely missing you, Narayanan, as the Chairman of this company and the Managing Director of this company, sir. I wish all the best for your future retirement or whatever you're doing in your other endeavors that you may take post-retirement from the company, sir, signing off Vinod Agarwal from Mumbai sir.

Thank you. Thank you. Thank you, Vinod ji. Thank you very much for your questions and for your good wishes. I really, really appreciate them. In effect, we have almost doubled our capacity of manufacturing coffee in the country with the capital investments that have been incurred. We are currently the #2 market for KITKAT in the world. We are trying our very best. The #1 market in the world is U.K. So we are after the U.K. But hopefully, under the leadership of Mr. Tiwary, that also will be crossed one day. That's the hope. Capacity has been created in Sanand. You're absolutely right, INR 1,100 crores has been spent in terms of capacity creation. So we are anticipating these capacities to be requited with the demand that we will get for the brand. And KITKAT and NESCAFÉ have been very strong growth vectors for the company. And therefore, I would like to assure you that these are investments well made, but we have to make them in advance. We can't make them after the demand comes because then it is too late for us to do it as you will appreciate. So that's where we are. I think the fundamental strengths on strategy and execution in the company is strong. I also thank you for your kind words on my capability to answer you in Hindi or in English. With whatever little language capabilities I have, I hope to get across to you better than if I were to speak in the language that is alien to both of us. Thank you.

Thank you. We move to speaker #26. Ms. Prakashini Ganesh Shenoy from Maharashtra, Client ID 12451107.

Suresh Narayanan, sir, first of all, I want to wish with a tearful eye to Mr. Suresh Narayanan ji for wishing him farewell on his retirement and pray God that he shall have healthy, wealthy, prosperous retired life along with his family. Respected honorable Chairman, Shri Suresh Narayanan ji, other dignitaries from the Board and my fellow shareholders, good morning to all of you. I received the annual report well in time, which is colorful, informative, transparent and contains all the information as per the corporate governance. I thank the Company Secretary and his team for the same. Mr. Narayanan, Chairman, has given a beautiful picture in respect of 6 themes in today's meeting and has not left us any room to ask questions. All my questions are covered under his 6 themes. Thank you, Chairman, sir. At the outset, I'm thankful to the Board for recommending dividend, bonus, split, et cetera, et cetera. Thank you very much, Chairman, sir and other Board members. I'm also very glad to know that the company is doing outstanding work in the field of CSR activities. Sir, I just have 2 questions. My first question is, what is the attrition rate? My second question is who are our brand ambassadors for different products? Just name them. Chairman, sir, last but not the least, my personal request to you, please continue with VC so that people all over will have an opportunity to express their views. For instance, I'm from Bombay. I'm able to speak and the meeting is at Delhi. Thank you so much. I wish the company good luck for a bright future and pray God that the profit of the company shall reach the peak in due course. Sir, I strongly and wholeheartedly support all the resolutions put forth in today's meeting. Thank you, Chairman, sir.

Thank you. Thank you. Thank you, Prakashini Madam, and thank you very much for your extremely kind words and your sentiments and feelings on my retirement. I think I leave a very happy man, leaving a great company and a great team, a great set of brands and above all, a fantastic set of shareholders that I'm very, very proud to associate myself with. You asked a question on the attrition. Madam, Nestlé India is truly blessed to have a relatively modest attrition of 10% or lower. And I think that speaks a lot for the opportunity and for the corporate culture that we have encouraged as a company. And I think that's something that I'm very proud of that I hope is something that we will keep for all times to come. So that's really what I wanted to reply you all on your main question. But thank you. Thank you very much for your kindness, for your being a shareholder with us. And yes, on your suggestion to continue the video format, I think there is -- we will comply with all the company law guidelines in this matter and do it as a measure of outstanding governance that we are known for. But thank you for your suggestion, nevertheless. Thank you very much, ma'am.

Thank you. We now invite speaker #27 Himanshu Trivedi from Vadodara, client ID 00688192 to speak.

Respected Chairman, Mr. Suresh Narayanan and other Board of Directors sitting on dice. Myself, Himanshu Trivedi from Vadodara, Gujarat State. First of all, I'm thanks to our Company Secretary, Pramod Rai, for sending me a hard copy of the AGM report well in advance, which is full of information and fact figures are in place, which is easy to follow and easy to understand. The report is very beautiful with wonderful face. Sir, I support all agenda. I have sent all questions and queries through the email well in advance. This will be saved the time of AGM and give the opportunity to speak my rest of speaker shareholder. Still, I have a few questions, sir. Sir, firstly, how much new product is going to come in market? Secondly, which is most profitable sector in domestic and international market? And thirdly, how many distributors in national and international markets? Sir, [Foreign Language]. We always remember you, sir.

Thank you. Thank you, bank. Thank you very much. [Foreign Language]. Thank you very much.

Thank you. We now invite our speaker #28, Mr. Santosh Chopra from Ghaziabad, client ID 05629597 to speak. [Operator Instructions].

Thank you very much, sir. Sir, I am Santosh Chopra from Ghaziabad and have invested my family funds in companies like yours. Sir, I'm thankful to the company secretary for giving me the opportunity to speak at this forum and sending the link. Sir, I appreciate the secretary -- your secretary department for -- in e-mail, they have mentioned our speaker number. So I have attended so many meetings, but nobody has given us our number. So I'm thankful to the secretary department for giving us the speaker number in advance. So we can adjust our time accordingly. And moderator is also speaking at every time, the speaker number. That is very good and appreciable. Sir, I -- as most of my queries have already been covered by you and the previous speakers, I limit my queries to a few. Sir, what is this coffee business participation between the Nestle and Tata Coffee? What is your next corporate plans for next 2 to 3 years and whether your CSR activities include providing financial assistance or anything to senior citizen aiding patients. Last but not the least, I wish the management and all executives, entire workforce and my co-speaker shareholders a happy festival season ahead and pray to God for all prosperity in the company group and endeavor to you, Chairman, sir, as you are retiring from this forum. And I wish you happy and peaceful life. Thank you very much, sir.

Thank you. Thank you, Mr. Chopra. Thank you very much for your good wishes. I think there is -- NESCAFÉ and Nestle is an independent entity, who are seeking the consumer choice in coffee. So there is no partnership with Tata Tea, Tata Coffee or any other entity. We are independent, and we are doing it. We are seeking the market fortunes on our own. The CSR money is spent on particular programs of the company, whether it is on water, sanitation, nutrition, education or adolescent education. These are all focused activities or indeed village development and village agricultural development is all we work on. So there are numerous projects. None that is specifically meant for senior citizens. But if we are working in rural areas and we are working with farms, then obviously, as a natural course of involvement, Mr. Chopra, you would understand, senior citizens will also get involved in it. But there is no -- nothing specific for senior citizens, but thank you for your suggestion. Thank you.

Thank you. Our next speaker member is Ms. Poonam Bala from Delhi having folio number 116065 to speak.

[Foreign Language].

Thank you, Poonam ji. Thank you. [Foreign Language].

Thank you. Our next speaker member. Speaker #30 Mr. Atanu Saha from Kolkata had registered, however, has not connected to the meeting. We've been able to reconnect with Mr. Yusuf Rangwala, hence, we'll unmute his connection.

Good morning or good afternoon, sir. [Foreign Language]. Wishing you a good luck and my salute for you having good service, sir. Happy retirement life, sir. Wish you good luck. Thank you, sir.

Thank you Yusuf bhai [Foreign Language]. Thank you very much, Yusuf bhai. And thank you for your good wishes and for your presence. Thank you.

Chairman, we take that as a last question. Over to you.

With that, we have completed all the speakers. Thanks to all the speakers participating from across the country for their comments and questions. We have tried our best to answer the questions raised by the speakers. Next, the questions sent in advance by e-mail, I would like to thank the esteemed members who have sent their questions in advance to the designated investor e-mail of the company. There is a question from Mr. Nitin Nerlekar and Meera Nerlekar. As per the annual report, Nestle plans an additional capital expenditure of INR 5,000 crores across categories over the next few years. It's a CapEx be over and above the INR 6,500 crores, which have been incurred over the last 4 years. Indeed, the total CapEx envelope that had been envisaged for the 2020 to 2025 period was INR 7,500 crores. What we will be now spending? We have spent about INR 5,700 crores between January 2020 and March 2025. The balance will be about INR 800-odd crores between the balance period. So as of January 2020 to March 2026, we will be spending about INR 6,500 crores. The revision is to take care of the fact that in the short term, we have faced some demand headwinds, which hopefully will be easing up over a period of time, but we didn't want to overcome it on investments at this stage. So that's where we are on the CapEx. With these CapEx proposals, the second question, will the company's ability to maintain dividend payouts be dented in the short to medium term? I think as you would understand, the resources are being conserved for the CapEx. But really, the dividend proposals will be considered by the Board of Directors from time to time based on the business performance and the payout made basis the approval of the Board of Directors and shareholders. It would not be appropriate for me to speculate on that and give you a guidance on that. Now for the messages posted on the communication box, I request Mr. Pramod Rai to share question messages if any received on the communication box one by one.

Thank you, Chairman. We have received overwhelming number of messages from members congratulating you and extending their best wishes. In fact, all questions posted in the communication box have been addressed by you during the Q&A session, except for one query from Ms. Sushma, client ID 14213032. She has requested to throw some more light on the joint venture between the company and Dr. Reddy's Laboratories. Since there are no further unanswered questions, and I hand over to you, sir, for further proceedings.

Thank you. Thank you, Ms. Sushma, for your question. I think as you would understand from what I have described in my speech and also the portfolio of the company, health and wellness is clearly an important area of consumer connection -- is of consumer concern as we move forward. We had a small health science business, and there was a need felt to team up with a like-minded company with complementary strengths as far as channel and portfolio is concerned. And that was the birth of the Dr. Reddy Laboratories and Nestle Health Science joint venture. It's a joint venture with a 49% holding by Nestlé India and a 51% holding by Dr. Reddy's. It aims to leverage Nestlé's global nutritional health solutions, along with DRL's local commercial strengths to reach a broader consumer base to enhance the nutraceutical involvement in categories such as metabolic care, hospital nutrition and women's health. From a governance perspective, Nestle will have a call option to increase its shareholding up to 60% after a 6-year period of fair market value, while Dr. Reddy's will retain at least 40% of the shareholding following the exercise of this option. Your company will keep you updated of any developments relating to this partnership. It just got off to a decent start, and we hope that we are able to accelerate this as the joint venture moves forward. So with that, I think we've answered all the questions. May I once again take the opportunity to thank every shareholder present for the questions, for the emotions, for the candour, for the challenges that they have pointed out to the company to take up. I think what I have been gratified is the spirit of the One Nestle family and an extended family that we talk about, not just employees, stakeholders and partners, but also shareholders as an important entity in the fortunes of the company. Now I come to the voting on the agenda items. Now for voting on the agenda items 1 to 7 as set out in the notice of the AGM. As explained earlier, members present at the AGM, but who have not cast their votes by availing the remote e-voting facility can exercise their vote through electronic voting platform provided by NSDL, the icon of which is available on the top of your screen. You will be redirected to the e-voting portal of NSDL. Mr. Abhinav Khosla, partner of SCV & Company LLP, Chartered accountants will scrutinize the votes cast through remote e-voting and votes cast during the AGM on e-voting platform as provided by NSDL. Mr. Abhinav Khosla will submit the report thereon to me as the Chairman or to the Company Secretary duly authorized in the prescribed manner. The voting results on all the resolutions placed before the AGM will be declared not later than around 6:00 p.m. tomorrow and shall be immediately intimated to the stock exchanges. The results, along with the report of the scrutinizer, shall be uploaded on the website of the company and NSDL and shall be available at the registered office of the company. I now wish to draw attention of all the members participating in the AGM that the e-voting platform provided by NSDL will remain open for another 30 minutes, 3-0 minutes. I thank you all for your participation and for your valuable suggestions and comments, which I am sure will receive due consideration from the management. I also take the opportunity to thank one of our facilitators, Inba, who has been working with me for the better part of almost a decade in helping me to conduct the virtual meetings. I'm grateful to her for her role. And we want to thank every shareholder for your participation in this meeting. The proceedings of the meeting will close after all the members participating in the meeting have cast their vote through e-voting, which will lapse after 30 minutes. Thank you very much for your good wishes, for your kindness and all the very best of luck and best wishes and blessings to all of you. Thank you very much.