Sundrop Brands Limited (500215) Earnings Call Transcript & Summary

Ladies and gentlemen, good day, and welcome to Sundrop Brands Limited Q1 FY '27 Earnings Conference Call hosted by Anand Rathi Shares and Stock Brokers Limited. [Operator Instructions] Please note that this conference is being recorded. I now hand the conference over to Mr. Ajay Thakur from Anand Rathi Shares and Stock Brokers Limited. Thank you, and over to you, sir.

Hello. Good afternoon, everyone. Welcome you all to Sun Brands Limited Q1 FY '27 Earnings Conference Call hosted by Anand Rathi Shares and Stock Brokers. From the management side, we have Mr. Nitish Bajaj, Group Managing Director; Mr. Asheesh Kumar Sharma, CEO and Executive Director; and Mr. K.P. Srinivas, CFO. Without much ado, I would like to hand over the floor to Mr. Nitish Bajaj for his opening comments, followed by Q&A. Over to you, sir.

Thank you, Ajay, and good morning, all. Very happy to be with all of you. I would just like to make one more addition here. We also have on the call Abhinav Kapoor, who is our CEO for the Del Monte business; and Amit Kumar Bala, who is our CFO for the Del Monte business. So that's the team available today for all of us on the call. As I go along the presentation, I will keep referring to the slide numbers so that you can relate to where I am making certain comments. So starting with my set of slides, I'm moving straight to Page #3. A quick recap for some of you who may be joining for the first time with us on our vision and mission. As an organization, we stay true to our mission of bringing a joyful food experience to modern, evolving consumers, which means that we would work on a portfolio that has a broader pan-India, greater India appeal. Of course, we shall continue to deliver it by bringing innovative, delicious, and convenient packaged food solutions to our consumers. Also, as a key part of our thesis of why we are a very good platform, the Sundrop brand has gradually started to emerge now as a food platform with reasonable scale and, of course, a very strong, profitable growth opportunity in the periods ahead. We have done it through the addition of the Del Monte Foods business to our portfolio, which happened in February '25. As a combined organization, today, we operate in categories that have high growth and also have reasonably strong margins. We have brought in a very intensive focus on our core portfolio. So we have made strategic choices around the portfolio that we have been investing in over the last 18 to 24 months. And those sharp calls are also starting to show dividends in the way our growth trajectory has shaped up over the last 1.5 to 2 years. We do have very strong and growing salience in emerging alternate and fast-growing channels, which is specifically calling out modern trade and E-Commerce, where our salience is also significantly increasing. As management, our team is focused on profitable growth as a key thesis. We are working strongly to improve our EBITDA, leveraging the scale benefits, leveraging the platform benefit of the organization, and also consistently looking at cost efficiency and value improvement opportunities for our products and portfolio and the way we operate the business. Overall thesis has seen a little bit of change. Historically, we were more driven by CapEx within the organization to drive growth as a thesis. We have changed it over the last 2 years to say that we will follow a capital-efficient approach, which means we will use a mix of good manufacturing platforms available outside of our own ecosystem, and use third-party systems wherever available and for high-quality orders to drive innovation and growth, and of course, expand the efficiency and utilization of our own capital assets. And we are also driven to look at both: while we grow organically on the portfolio, we are actively also looking at inorganic opportunities, which could help us accelerate the growth momentum of our business. As a platform today, I'm moving on to Slide #5. As a platform today, we have 3 key brands, [indiscernible], Del Monte, and Sundrop. A quick reminder: for [indiscernible] and Del Monte, we have perpetual licenses for Greater India geography. When I say Greater India geography, it covers India, Sri Lanka, Nepal, Bangladesh, and also Myanmar and Bhutan geographies. So we have a perpetual license for these 2 brands for the larger geography. We are also affiliated with the parent companies, and we have exclusivity to have the first right of anything which they would want to bring in these brands in this part of the country. We, of course, have global rights for the Sundrop brand, and these 3 brands put together form the bulk of our business as we operate today. Coming to quarter 1 numbers, I'm on Page 6. I'm very happy to share that we have consistently been delivering an accelerated growth trajectory. And in this quarter, we have closed the quarter with a 15% consolidated revenue growth. Some key insights to this. Of course, sequentially, we have grown 11% over the last quarter, and 15% over the same quarter last year. Within the mix, if I have to look at our B2B business has continued to be a shape better than our overall business, growing at 18%. Our E-Commerce, which is a very important future growth channel for us, has maintained a strong trajectory ahead of industry growth rates at 32%, which means we are gaining share there in most categories that we operate in. Our investments: we have been upping our investment right from quarter 4 of FY '25 in the Sundrop business and quarter 1 of FY '26 in the Del Monte business. So as we have moved on that journey, we have also understood much more sharply as to which initiatives are giving stronger outcomes. And hence, today, we operate at a much healthier level of A&P spends as a percentage of total sales, and we have been growing them either sequentially or quarter-on-quarter. But overall, our level is significantly higher than previous years. We have been looking at expanding our margins. Of course, last year, we had seen rapid margin expansion driven by specific initiatives where we have got external partners to look at our cost efficiencies. We have been able to maintain and sustain those and also build on those. So in this quarter also, while the environment was very inflationary, and we are all aware, we have seen significant inflation in certain commodities, significant inflation in the packaging material side. But despite that environment, we have been able to further improve our gross margins by about 110 basis points. And as we have closed the quarter, we have closed the quarter with very stable, healthy EBITDA margins of 7%, which is what we also achieved very similar number in quarter 4 of last year. Moving on to Slide #7. I will give you some flavor of the 2 businesses inside. Sundrop business is about 56% of our total business, has grown in quarter 1 at about 16%, accelerated somewhat from our 14% growth in quarter 4, 15% growth in quarter 1 last year, and a full year growth of 12% last year. Similarly, if I look at the Wellvone business, which is another 44%, 45% of our total business has accelerated to 14% growth. The same number in quarter 4 was about 9% was in quarter 1 last year at about 8%, and the full year last year was about 9%. So as a group, we have accelerated growth. The important point I would want to make is that whatever we are doing is driving our growth sustainably. So you are continuously seeing marginal accelerations. But fundamentally, we are wired to drive capital-efficient growth as of last week. So we are continuously working to up the NA, but you would only see on a quarter-on-quarter basis marginal improvements, which you would have seen over the last year, where we moved from, let's say, from about 4%, 5% growth, which we had before we really took the investment thesis on this business, to about 15% growth now. On the choices we have made, I'm now on Slide #8, our core categories where we invest. That business is, of course, showing greater acceleration overall and today contributes to about 60% of our total business, up from about 53% about 3.5 years back. This may have gone down a little versus quarter 4, which was where it stood at about 62 because we are seeing some of our initiatives taken on staples or premium staple oil business continuing to do well for us and driving growth in line with our overall business growth. So while that is still not from an advertising set of investment growth portfolio for us. But whatever we are doing on PAC, commodity side management, cost management is helping us maintain a good growth rate even in our oils business. I'm moving to Slide #9, which is where our core category and staple business is covered. So on the Popcorn business, very happy to say that we have been consistently maintaining over the last full year and also multiple quarters, a growth rate of close to 18%. And this is backed by a very strong volume growth of 12%. And hence, this is a very strong growth, which is driven by our investment thesis for the business. On culinary, which is a mix of ketchup, [indiscernible], and dressings business, we have seen acceleration of growth, with growth moving to 15% versus about 10% last year. On the volume side, the business has been growing at about 8%. So I think our volume growth has been stable. We have been able to increase the pricing power. Also, of course, some of the pricing decisions were necessitated by the commodity environment in this business, which we were able to pass to the consumers while maintaining our volume growth momentum. Moving on to the premium staples business, again, very strong growth trajectory of 16% in value, 7% in volume versus quarter 4; it is a shade lower on value, which was at about 20%. But if I were to look at the full-year perspective last year, we have maintained the growth rate of about 16%. And from a full-year trajectory, our growth has expanded to 7% this year versus about 3% last year. Italian business, which I talked about, which is a mix of our olive oil and pasta business, again, is very strong. And this is the first time we are returning to value growth in this business. We had talked about our commodity environment, which has softened in this business over the last year, which we had passed on to consumers. Because of this, while we were growing volume, we were seeing value decline last year. As we enter into this year, we are now seeing the choice between both value and volume growth. So our volume growth has been more or less maintained at last year's level of 16% to 17%, while we have returned to 8% value growth. And this value growth should further expand to closer to 15% value growth if we are able to sustain our volume growth of 15% in the quarters ahead. Peanut butter, or our peanut spread business, has been a spot for us. We have taken certain calls. I would say we have some signs of recovery on this business, but it still continues to be negative. So while we were about 8% to 10% negative in value and volume last year, we have been able to bring it to about a 3% decline in this period. I will give you some flavor as we get into the category on slides ahead. Moving on to Slide #10 on the popcorn business of ours. Both ready-to-eat and ready-to-cook formats are showing very, very strong growth. The ready-to-cook business, which is the historical business, continues to grow at about 9%. This is the way the business had originated for us. Along the journey, we also expanded our presence into convenient ready-to-eat formats, and that business has been accelerating growth year-on-year, quarter-on-quarter, and we are now running at about 39% growth, up from about 33% growth we had last year. So the momentum is further strengthening. This momentum, which is expansion in the ready-to-eat business, is driven a lot by distribution-led penetration in the general trade because we see there is a very strong opportunity to expand the penetration of the ready-to-eat category in West and South, and we have already been able to demonstrate that in North, followed by East. So North, followed by East, we have been able to establish this category very deeply in terms of distribution, and we are working to expand that in West and South as we go along the growth journey on ready-to-eat business. On the ready-to-cook business, again, it is a mix of driving new trials through distribution expansion where the INR 10 price point plays a very critical role. But as we are seeing the evolution of the quick commerce channel in the country, that is also helping us drive consumption of in-home, both through ready-to-cook formats and also ready-to-eat formats in higher pack sizes and higher pack points. So the quick commerce channel is actually helping us drive consumption at home, but that is coming through a mix of both ready-to-cook and ready-to-eat formats. We are working to expand our sweet popcorn and cheese portfolio because in these, we see strong growth opportunities. So in quarter 1, we did some launches specifically in the sweet corn, popcorn area, where we do see strong growth opportunities, as our country is a sweet-tooth country, and this is one segment which Active has historically not exploited. So we are starting to work in that area as well to drive our growth stronger. Moving on to Slide #11. On the Edible Oil business, as I said, our growth momentum has been sustained. We are very happy to share that we are now growing in volume. Historically, we have had situations where lack of focus on this category had led to volume declines. But now, by maintaining a very selective, sharp focus in certain geographies of strength and channels of strength, we are able to get both volume and value growth in this category. Value growth, I must say, is linked to the inflationary environment in this category. Generally, this category is price sensitive. Our stated position on this category will be to protect volumes. And going forward, we would want to at least grow 4% to 5% on volume terms, outpacing the category growth or at least be in line with category growth in this business as this thing. What we have also done is we have looked at selective innovations, selective channel focus, new pack size introductions, et cetera, where we found growth opportunities, and those initiatives are helping us do well in this category. Moving on to the peanut spreads business. We do face headwinds on this business in modern trade and e-commerce channels because the market moved from plain peanut butter formats to more value-added formats like chocolate-flavored variants or higher protein fortification variants. We were late to innovate in those categories, and we had seen the impact of that in share. Over the last 9 months, we have been able to beef up our portfolio with a full-fledged range in these high-growth variants, whether it is the high-protein segment or the chocolate segment. And that is now starting to see some results in e-commerce and the quick commerce channel, where we have returned to a growth of 16%. And that is what is helping us: the decline in this business from an 8% to 10% decline last year to a 3% decline as we closed quarter 1. We are very confident that this strategy will help us return to growth in this category. Our overall ambition is for our foods business to grow at a mid-teens to high teens level, and we would stay focused on getting our ready-to-eat peanut butter business also in this dimension as we move along our investment journey on this business. Moving on to Slide #13 on the culinary business, which I said is a mix of tomato and business. This business is fairly distributed across both retail and B2B sides. We are seeing very strong growth in B2B, which is helping us expand this business more strongly. But of course, our B2C business is also growing. So a combination of B2B strong growth and specific high-intensity channels like e-commerce and modern trade in retail are helping us drive very strong growth in this business. We are also seeing exports growing on the back of some key accounts we have in Southeast Asia, which is helping us grow. So overall, this business remains a high investment focus because we do see opportunity to drive growth on the rising consumption of Won Foods in the country, as also on the back of the very strong distribution footprint opportunity we have in this business. Moving on to Slide 14 on our Italian business mix of oils, pasta and ready-to-eat olive oil. The business is growing both in volume and value terms at 15% growth in volume and 8% growth in value. Olive oil, which is the hero product, is the core equity driver for this, which is where we are going. We have started high investment and are only going to invest in the period ahead has seen very sharp growth of close to 20% in volume terms, driven by even stronger growth in the e-commerce channel, where we are increasing our investment. But this is, of course, a category where we will drive both from consumer saliency and a channel point of view in the journey. Similarly, the pasta business is again growing by 10% with strong growth in e-commerce and the food service channel. Moving on to Slide 15 on our e-commerce business. This is the highest growth area for us from a channel point of view. We have significantly shifted the focus of the organization to invest ahead of the curve in this channel. We are also using this channel to drive our innovation or certain new category entries, and that combination of investment plus innovation-led growth is helping us deliver 32% growth in this channel. Very strong growth we have always talked about in the quick commerce channel, which was historically also driven by the expansion of quick commerce in the country, but very happy to also share that hybrid platforms have also started to grow strongly for us in this area. More importantly, some of the new categories, which we started investing in in the last 1 year. Now we are seeing that business growing 3 to 4x in that nature as we invest to gain shares in those categories. Of course, we are still very small players, and that's why the growth today is looking aggressive. But as we build the base, the absolute quantum of increase on that business is also looking very promising. Overall, our spend, brand spend, and I would want to nuance it for you: I'm on Slide 16, has grown from last quarter at about 49%. You would be well aware, and many companies in our ecosystem have talked about reclassification of spends, which is linked to how the trade visibility spends, which we would do in modern trade, were accounted for. They were typically being included in marketing spend. Now, as per the new guidelines, we are reflecting them as trade spend, so they are being netted off from the sales. So as an outcome of this, we do see a sharper growth visible over quarter 4. But if I do a like-for-like comparison, our spends are growing at about 12-odd percent versus quarter 4 and are about 5% lower versus quarter 1 last year. To nuance it from a definition of 5% lower versus quarter 1 last year, we had, as I said, gone into an investment journey in Sundrop from quarter 4 of FY '25 and in Del Monte from quarter 1 of FY '26. So at that pace, anyway, we had significantly upped our investment. As we have understood the various investment initiatives today, we are in a very strong position to do ROI-centric marketing investments, which is what is the overall thesis on which we will drive the growth of this business. Moving on to Slide 17, our automation of the sales force was a very critical tool for our productivity and sales organization. That project has worked well. I had talked about us reaching the point where we have the larger retail universe of Sundrop on the platform being achieved in quarter 4. So that, of course, has continued. But in addition to that, we are now seeing significant traction in the entire billing history generation, data generation of our outlet sales coming through this platform. So roughly about 80% of our outlets are today getting billed on this platform. At the end of last quarter, this number was about 75%. And this, of course, will be a very strong initiative for us to optimize our coverage costs for the organization or the platform put together and also drive productivity improvement initiatives in the channel. On the margin improvement side, I'm on Slide 18. We, of course, have seen a very, very highly inflationary environment. Despite that environment, we have been able to continue and sustain our initiatives where we had led improvements in our back-end manufacturing and logistics costs. So overall, on the material side, despite an inflationary environment, we have seen a 40 basis point improvement versus last year, where we had seen significant improvements of the nature of 200 to 300 basis points. And on other expenses also seen another 70 bps reduction in margins, and that is translating to about a 110 basis point improvement in our overall margin. Moving on to Slide #19. Innovation, which we have talked about, is now central to our growth thesis. We have been expanding our innovation portfolio over the last 12 to 18 months. And if I look at what we have launched in the last 24 months, we have launched close to 100 products, and we are getting about 4% of our overall sales through this portfolio. If I also talk about sequentially, how it has built up in quarter 1 is sitting at about 6% of our overall sales. And hence, we are seeing increased traction. We would want roughly about 6% to 8% of our growth, which is, let's say, 40% of our growth ambition, if we have to talk about growth of mid-teens or higher to be funded out of innovation, and that journey is shaping up very strongly. Moving on to Slide 20, the entire consolidated P&L statement. I talked about it: growth of top line 15%. On the material side, we have grown a shade lower, and hence, material side efficiency has improved by about 40 basis points. Our cost controls are stronger, which is what is helping us improve our margins further. A&P, as I talked about, looks about 12% lower here, but in real terms, this will be about 5% lower. More importantly, I think we need to keep in mind that we are today doing 5% to 6% of our top line being invested in media and promotion. If I look at the core portfolio where we invest, that number now, because 60% of our business is core where we invest, that number translates to about 8% of our investments going into advertising and promotion. And that we are going to maintain or build as we go along in this journey an outcome of this, our EBITDA has improved sharply, grown strongly versus last year, and we are sustaining the 7% EBITDA levels. And these are, of course, normalized net of ESOP costs, which we have always shared in the past. So net of ESOP, we have sustained the numbers of about 7% of top line. Moving on to Slide 21. I'm just coming to all of us with why the Sundrop brand is a very strong portfolio to look at. We do have a portfolio of stable, well-known brands which cater to the needs of the evolving Indian consumer who is getting more affluent, who is getting more open to Western food choices. We do, as a platform, ride on all consumer megatrends, whether it is increasing consumption of out-of-home, whether it is increasing exploration of new food choices. And of course, our categories are sitting in areas where penetration continues to be a strong driver of growth. These categories also offer significantly stronger margins versus the commodity side. And in some of them today, we have a leadership position. In some, we have a challenger position. But overall, given the context of penetration, growth of category and the share gain opportunity, we do have a very significant headroom for sustainable growth in these businesses. We would continue to deliver that through investing, making the right choices on portfolio, which we have already done, but also the right choices on investment vehicles, which we have sharply understood over the last 1.5 years of journey, and that will ensure that our growth always remains more capital efficient. Last 2 points on this. There is still complementarity on channel and manufacturing strengths. We have started to make some moves in this direction, but there is significant headroom. And over the next 1 to 1.5 years of journey, you will see that also panning out to drive better improvements in margins and also, of course, continuing to strengthen our growth momentum. So that's all from my side. I would like to now close the session from a presentation point of view and open it for Q&A. Thank you so much.

[Operator Instructions] First question is from the line of [indiscernible]

Congrats on a good set of numbers. So first question is going to be on A&P spend. So sequential increase year-over-year dip. Just 2 things about this. So one, have we become inherently a lot more efficient with our marketing? Or have we changed the area of focus from maybe a particular brand or a particular segment to another kind of change? Comparatively, a little more on this, please?

Sure. Thank you, Ravi. So I'll just nuance it a little more for you. See, we started the investment journey on the portfolio, both in Sunndrop and Del Monte, in quarter 4 of FY '25 and quarter 1 of FY '26, respectively. And when we got into it, we took calls on certain categories to invest. Largely, our focus has remained on those categories. But having said that, we did, for example, take an investment call on the juices portfolio in quarter 1 of last year. We are saying it is not so core. We have not seen good results, so we are dropping that call. But fundamentally, whatever we have called as a core portfolio in Sunndrop, there we continue to invest. And in Sunndrop Brands as a business, we have only expanded our investment in quarter 1. If I talk about the same in the context of Del Monte, we started with certain categories. We have only taken a call not to invest in the fruit juices business. Net-net, I also qualified by saying that while you see a 12% decline, if I take the impact of reclassification of trade spends, it's actually 21.4% versus 22.9%, which is just about a 5% decline. And that is just the optimization. Overall, I think the confidence you need to have is that investing in portfolio remains a key thesis for our growth. And as management, we'll continue to do it. We did have some learnings, and these are a very small set of optimizations, which have been done in one specific portfolio. The core categories, which we have been talking for last 1 year, have remained strong on investment, and they will continue to be strong on investment.

Just a couple more questions. One question would be like popcorn. So with ready-to-eat specifically, we're entering categories like cheese and popcorn where, admittedly, a brand like 4,700 has been tiring so far. So like, could you just help me understand, like, post the acquisition of that brand by a bigger company, are you seeing some more aggression on the ground? Are you seeing more distribution in GT? Would you like to highlight any difference between, like, our active offerings and those offerings that have been very successful for them?

Yes. So we constantly review portfolio evolution. See, we are a category leader in the popcorn business. We constantly monitor how the portfolio has been evolving. And of course, as more players come into the category, you see greater dynamics of innovation and investment, which, generally, I would believe is good for the category. Today, we would hold closer to 85% share of the category. So we are a very strong dominant market leader. We haven't yet seen any significant shift from the way the category was operating pre-acquisition of OC by a large player. From our context, we have, of course, significantly upped the investment, and we have understood which are the choices in the portfolio, which we could ride on and expand our share further and, of course, continue to grow. So, Sweet Popcorn, I talked about it. We did see that we have an opportunity to be a stronger share or a bigger share, and that is what we have picked up and started to focus our investment behind. Cheese popcorn in some pockets, we saw that's a flavor which, let's say, we were not really leveraging in the e-commerce channel. So we brought that also into the e-commerce portfolio so as to expand our growth. So these are, I would still say, constant innovation, constant new opportunities for growth either by doing category-first initiatives or also some initiatives which will help us drive share gain.

[Operator Instructions] Next question is from the line of Pritesh Chheda from Lucky Investments.

Could you call out the volume and value growth of core and noncore blended, the volume and value growth?

Yes. So overall, if I look at we have talked about 60% of our portfolio is core, and that is growing at about 14% to 15% in value terms and about 9% to 10% in volume terms. The oil, which is growing a shade faster in value at about 16%, is about 7%. And then in the noncore outside of oil is about 20% of our business; edible oil is about 20%. So control-wise, you would see that 80% of our business today is growing at about 15% to 16% on value and about 8% to 9% in volume. The balance of the business, which is another 20% of our business, is seeing a very similar homogeneous growth because we are seeing our CP manufacturing business also seeing good volume traction. We do make energy drinks for certain companies. We are seeing good volume traction in that business. So blended, that business put together is still continuing to grow at about 15-odd percent in value and about 8% in volume. But core portfolio where we invest, I would say our growth is 9% to 10% in volume and 15% in value.

My second question is around your key pillars: if you could call out the key pillars of your growth strategy, not at the brand level, but generally at the overall level? And what will it lead to in value and volume growth for the quarter?

Okay. So in the key categories where we're investing- popcorn, [indiscernible], and let's say, Italian. So I'll first talk about Popcorn, [indiscernible]. There, I would say there are 3 key pillars for growth. First is, of course, distribution expansion because categories have the opportunity to either gain share by category penetration expansion like popcorn, or gain share by distribution expansion, which is [indiscernible]. Second area is, of course, investment because as you want to either gain share or you want new consumers to come in, your media investments need to go up. So we are going to invest ahead of the curve on these categories. The third area specifically for these categories will be in the area of innovation or new products through which we can do certain share gain strategies. Coming to Italian business and Italian business, I would say it is still more top-down metro and new channel-like e-commerce focused. There, the growth will be driven not so much by distribution, but more by innovation and investments. And on peanut butter, again, I would say innovation is something which will be very central to drive growth for us because we had a catch-up to do. We have already done the catch-up, but we will also want to do certain innovations to drive stronger growth and share recovery in that business.

Growth means corporate could be another 4% to 5%.

So in the longer term, if I can go to high teens growth is something we would aspire for, and a broader mix will be 50% through volume, 25% through price, and 25% through innovation. When I said 25%, I'm talking about 25% of mid-teen growth.

Next question is from the line of Balajiaanathan from Asset Management.

A couple of questions. One is on the Italian portfolio. It seems like you had a fall in realization to the tune of 6% to 10%. Is it fair to assume that it's some kind of quick commerce discounting that we are doing on this portfolio?

Sorry, I couldn't understand which portfolio you -- it, Italian? Abhinav, do you want to answer this?

This is Abhinav. So, if you look at the Italian portfolio, and Nitish talked about it during his presentation, if you look at the entire last year, we've been in a commodity deflation cycle. So essentially, when we buy it, we've been buying at lower pricing, which we have passed on to the end consumer. And basis that, while we did see volume growth, we did see a value decline last year. Now this year, for example, with the growth, I would say the prices are stabilizing in the market; we have now started to see a value increase, which is coming through. But last year, quarter 1, the price pass-through only started from, I would say, quarter 2 onwards. In quarter 1, we were running on higher inventory with the old pricing. So that is the change that you're seeing right now. This will stabilize going forward from quarter 2.

So currently, there is... It's not any quick commerce discounting, correct?

No.

My second question is we've seen that B2B is roughly growing at about 18% and e-commerce is around 32-odd percent. So is it fair to assume that the GTP number is probably low single-digit in terms of growth?

Are you talking about Del Monte specifically or overall?

Portfolio overall business.

So, we have shown you the flavor of various categories right now, predominantly retail business. We have virtually no business on the B2B side. That we have said is growing at about 18%. So it is dominantly similarly; Italian business is again dominantly a B2C consumer retail business. That business volume-wise is growing at about 15%, again, retail growth. Staples or oil is again a fully retail business for us, growing at 16% in value. Culinary is the only business that is a mix of retail and B2B. So yes, when you are saying we are saying the growth is around 18% to 20%, B2B growth would be sharper and retail growth would be a tad slower. But math is very simple for you to say if one is growing at 18%, the other may be growing at 10% to 12% in that range.

My last question is just a short one. In terms of this edible oil, this 15% growth that we have seen, how much of that is price inflation?

So if we see that, it shows we have a 7% volume growth and 16% value growth. So that's about 9% is the price that we have been able to pass. What we normally look at in edible oil is we are trying to pass the per kg price increase in absolute terms so that in the longer term, we manage the absolute profit margin that we make from our stable business. Percentage margin passing price increase passing on in staple business is a little more difficult because of the commoditized nature. So we are solely passing it on. So we passed on almost the entire per kg price increase in staples to the consumer, leading to a 9% price increase. And we still got a volume growth of 7%, taking the total to about 16% value growth.

Next question is from the line of Sitesh Deshmu from IIFL Capital.