Ladies and gentlemen, good day and welcome to Huhtamaki India Limited Q4 CY 2023 earnings conference call hosted by ICICI Securities. As a reminder, all participant lines will be in the Listen-Only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ashvik Jain. Thank you, and over to you, sir. Yes, thank you. Good afternoon, everyone. Thank you for joining on Huhtamaki India Limited Q4 CY 2023 earnings call. We have Huhtamaki India Limited management on call, represented by Mr. Dhananjay Salunkhe, Managing Director, and Mr. Jagdish Agarwal, Executive Director and Chief Financial Officer. I would like to invite Mr. Dhananjay Salunkhe, sir, to initiate with opening remarks, after which we will have question and answer session. Over to you, sir. Thank you. Good afternoon, everyone. Thank you for joining this call. This is our fourth call in succession, and in this call we'd like to give you an update on Huhtamaki India performance of quarter four as well as FY 2023, and a quick update on our strategy update in terms of what we are doing here. So in quarter four, as you would have seen in the results, we are able to improve our profitability significantly. However, the volumes will continue to be lower, and partly due to the strategic positions which we have taken in 2023, wherein we have reviewed our portfolio in terms of profitability and taken certain calls. And at the same time, quarter four also has seen some duality in the demand. Demand remains subdued in certain categories which we are servicing, and that reflected into the overall volumes. However, the lower net sales, whether it was in quarter four or overall year-on-year, have not really deterred your company to deliver a good EBIT performance or on other profitability indices, which is PBT or earnings per share, which has not only improved quarter-over-quarter but also year-on-year. In the last quarter, we did the footprint optimization or accelerated our strategic execution on footprint optimization, and one of our flexibles plant in Hyderabad has relocated to the other sites and were consolidated. We also accelerated our strategy of asset monetization, and Thane and Ambernath land sale was concluded in last quarter. We continue to invest in our operations through the technology deployment in terms of Blueloop, and then other significant investment being made to accelerate our journey towards offering a sustainable product to the Indian customers. These were a few highlights of quarter four 2023. Now I will hand it over to our CFO and Executive Director, Jagdish Agarwal. Jagdish, over to you. Thank you, Dhananjay. Good afternoon, everyone. Happy New Year, and welcoming you all to this quarterly Investor Call, and pleased to present our financial performance for the quarter at the end of December 2023. The business performance of the company during the quarter and for the year has been mixed bag. As regards to the key financial indicators, the volumes continue to remain under pressure in December quarter, having a direct impact on the revenue. The top line for December quarter at INR 585 crores reflected a decline of 13.5%, and on year-on-year basis, a decline of 9.2%. For year 2023, the top line has contracted to INR 2,481 crores, which represents a decline of 15% compared to 2022. The volume degrowth is partly attributable to our strategic positions taken and partly due to the lower offtake in specific categories leading to overall top line contraction. However, the bottom line has shown continuous improvement for both December quarter and for 2023 full year. Despite the top line contraction by 13.5% in December quarter, EBITDA has recorded 35.5% growth and is reported at INR 61.8 crores in December quarter. EBITDA has also improved by 26.7% on quarter-on-quarter basis. For 2023 again, while top line has shrunk by 15%, EBITDA has increased by 21%, and we've divided the full year EBITDA up to INR 110 crores. When you talk about EBIT for the Quarter, we've reported INR 50.6 crores compared to just INR 24.5 crores a year back, reflects the same growth story quarter-over-quarter in 2023. Similarly, PBT for the quarter before exceptional items stands at INR 44 crore, again a very impressive gain compared to earlier comparisons. For 2023 full year, EBITDA has improved to INR 161 crore, up from INR 88 crore year-on-year basis. PBT before exceptional items has improved significantly to INR 130 crore as compared to INR 55.9 crore in 2022. The turnaround in bottom line, despite decreasing sales, is a result of decisions taken and executed on ground during the year. Network optimization by consolidating the manufacturing footprint, operational efficiency resulting into cost optimization, and overhead reduction and stability in input prices are the key factors contributing to remarkable profitability of the company. Other than the reasons stated above, the improvement in EBIT or PBT is also driven by lower depreciation. For the December quarter, the depreciation was lower by INR 7.5 crores, and for the full year, depreciation was lower by INR 27.3 crores due to revision in useful life of the assets as a matter of charging depreciation on building from WDV to stabilized assets as of 30/10/2023. The company also reported exceptional income of INR 369 crores during the quarter, arising majorly on account of disposal of land parcel of its Huhtamaki Thane plant and land and building of its Huhtamaki Ambernath plant. The company has also incurred expenses amounting to INR 34 crores towards payout on account of rollout of voluntary retirement schemes to its employees in those facilities. Net profit after exceptional income and after tax for the quarter and for the year stands at INR 327 crores and INR 409 crores, respectively. Earnings per share for the quarter before exceptional item stands at Rs 5.11, substantially halved on year-on-year basis. For 2023, EPS stands at INR 6.27, again significantly halved over 2022. EPS after exceptional item for the year stands at INR 54, so not comparable with the previous year due to exceptional items in 2023. Now, moving on to debt and liquidity position, the liquidity position has strengthened upon cash flow from sale of property. We have retired the entire debt during the year except the ECB that's from group company, as that is subject to statutory covenants. Debt/equity ratio is improved and now stands at 0.2 over 0.4, witnessed over the previous three quarters. With all the given reasons, therefore, debt-to-EBITDA ratio has improved to 0.8. Overall liquidity remains strong, and we also have a sizable credit line which we have completely utilized at the end of the quarter for obvious reasons. Working capital is a standout this year with all the boxes getting ticked into green. Dividends have decreased substantially, though partly due to decreasing volume as well. Inventory is reducing, and payables remaining more or less flat. Overall cash position has improved greatly because of improvement in net cash flow position from operating activities. As a CFO of the company, I'm pleasantly satisfied with the overall financial performance of the company during the year, though erosion in top line definitely was not something acceptable where we are working on that. However, I would like to also reiterate that we are doing everything possible that is required for turning around the performance, especially on the top line front. In this year, we took some tough strategic decisions like optimization of manufacturing footprint, VRS, etc., while at the same time continuing to focus on operational excellence, increasing manufacturing productivity, working in a right direction, canceling the overhead, etc. The combined effect of these strategic moves is reflecting in the bottom line. We are not only doing that in fact, we are investing in the future technology. We are investing for sustainability to become the first choice in sustainable packaging solutions to our customers. The company has always remained committed to its stakeholders, focused on technology-enabled innovation and operational performance, and realization of value for its products by engaging constantly with our customers. In the last, I just want to say that the board has recommended a payment of dividend on equity shares at INR 5 per share, which is definitely 250% or 2.5 times higher than the previous year. It is subject to shareholders' approval. We appreciate your continued support and investment in our company. Thank you. With that, I hand it over to Mr. Dhananjay Salunkhe. Thank you. Thank you, Jagdish. I think you covered each and every aspect of the financial performance very meticulously. Thanks again. As I said earlier, we will give you an update also on our strategic intents and what we were doing. When it comes to strategic plan, I think it goes without making a note on our Blueloop journey. As I said earlier in the last call as well, we aim to definitely transform our company from a packaging converter towards a sustainable packaging solution provider, and we are making progress in that direction. In the last quarter, our Blueloop equipment got commissioned, and they are now really ready to start the manufacturing of the samples and sending it to the customers for their acceptance trials. The second part of our solution offerings to the customers is basically the Blueloop, is essentially the umbrella product which will be having recyclable products. Wherein what we also gathered during this journey is that customers also do have a certain requirement of reducing the weight, as well as they are yet to be, our overall ecosystem is yet to be ready with complete Blueloop solutions or recyclable solutions. So what we did in turn is basically we also developed products which are part of a Blueloop umbrella, but they are having some options of reduced weight, which we call Blueloop Light, or having even mixed material, which we have polyurethane-based structures, so that we give customers options, various options to choose from. We are able to see some traction in that area. And this is again keeping in mind the power, power of three, what we are talking about. The power of three is basically, first, the sustainable products. Second, they are affordable. And then third, they are adaptable. That means while we are offering the material recyclability and the content protection which is required by our customers, we are looking at providing them at the affordable prices, using our operational efficiency and global presence, and helping our customers to have a source and tax reduction benefits. And then these products are going to be exactly the same what the current structures are able to offer. So if you have a slide in front of you, you can see some beautiful pictures on slide number 14 where you can see a brand new building and then the seven-layer MDO line. MDO is basically machine direction orientation and seven-layer line. So all three equipment are basically up and running, and we are just waiting for certain regulatory approval to kind of start progress towards the commercial production from those machines. That was the first strategic intent. The second one, as we spoke about, footprint optimization or network optimization. In this year, 2023, we really accelerated this strategic intent which was on the cards for some years. 2023 saw we consolidated our five manufacturing sites over a period of 2023. And now we have a presence in 10 manufacturing sites, which is down from 15- 10. And all the manufacturing consolidation was done with a very well-planned manner and well executed by my team members in Huhtamaki India. I thank them for that with a seamless transition with no material impact. Now we are basically aligning the new capacities with the new changing dynamics in terms of market as well as customer, and then improve our cost efficiency through this. That was the second strategic intent. The third one was creating an asset-light model or monetizing our assets. And as Jagdish also mentioned in his commentary, the two land parcels which were in Majiwada, Thane, and Ambernath were kind of liquidated in 2023. And the last strategic intent where we continue to improve upon and we are progressing towards, well, is building the talent. And one of the significant steps, a step I would say we took in 2023 is where we consolidated our offices from three locations to the one location in Thane. The new office is now located in Bellona in Hiranandani Estate wherein all the employees now working in and around Mumbai are now coming in Thane office. We have almost 250-odd seats available for employees to be working from office. The last part of our strategic intent, which is going to be achieving our 2030 strategy, is the sustainability. Now the earlier strategy of Blueloop is basically how we offer the sustainable products. The last piece of our strategy is basically how do we do it sustainably. In that area as well, we kind of progressed well in terms of climate actions where we are looking at solar power projects in our Khopoli and Ambernath units, working with nearby localities be it Baddi or Rudrapur where we help needy, and then assessing our water risks, emanating out of current climate changes, and then how do we improve upon our water conservation efforts to help our overall planning. As I said, this also concluded his remarks with. He is pleasantly happy or happy with the way the company has progressed for delivering the superior profitability in 2023. I'm also particularly happy in the way we have accelerated our strategy execution in all the four five areas of our strategic intent. So it's a progress, well done, and we intend to continue this in the rigor, same rigor of execution in 2024 where the very critical aspect of the business would be to improve our volumes profitably. So with this, I would thank all my team members here as well as everyone on call. We can open it for now, question and answers. Thank you. Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question, may press star and one on the touchtone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. We have our first question from the line of Nisarg Vakharia from NV Alpha Fund Management. Please go ahead. Yeah. Just had a question on the cost restructuring exercises that we have done. Have translated into a superior sort of absolute number in EBITDA. Now, have all of these cost restructuring exercises been factored in already, or we can still see the EBITDA improving because of the exercises, assuming there is no growth for now? Thanks for the question, Nisarg. So when we talk about a cost, all of it's like a continuous journey. We always look forward at how we can improve our productivity. So it's never-ending process when we talk about that. But when we talk about some of the big-ticket items, we are already managing 2023, and those have been executed. So all those items which we had into our basket are behind us. But yes, overhead or when you talk about cost reductions or risk reductions, these are continuous journey kind of programs. We will continue always. And we always look forward to how we are going to improve our operational efficiencies and performance. Okay. Sir, we've done a very good job at making our balance sheet debt-free, which has not been debt-free now since almost 2014-2015. But our EBITDA today has just come back at the absolute run rate that it was in 2019. Now, I know you're focusing on growth, but what sort of base level of growth that you see is possible with the low-hanging fruits that are there in front of you? So you talk about EBITDA, and you're comparing it to 2019. But if you look at year-over-year progress, what we are doing is that we cannot take one year and then we can compare it. I mean, when you go back before 2019 or if you look at 2021, look at the journey what we have in 2021. Look at the journey what we have in 2022 and 2023. Now, having said that, definitely our focus, like what we've said in our commentary as well, our focus is at how we are going to grow the business profitably. And that is where our focus would be, first, being a responsible citizen that we are going to promote more and more of a sustainable product and making those sustainable products through a sustainable way of manufacturing. So top line growth definitely is one of the key, key, key initiatives or key factors for us in 2024. So putting a specific number would be very difficult for us at this point of time. Okay. Thank you, sir, and all the very best to you and your team. Thank you. Thank you. Thank you. The next question is from the line of Bharat Sheth from Quest Investment Advisors. Please go ahead. Hello, Mr. Bharat? Mr. Bharat? As there is no response from the participant, I would like to take the next question. The next question is from the line of Khush Gosrani from InCred Asset Management. Please go ahead. Yeah. Hi, sir. Thank you for the opportunity. Sir, could you give us what will be the capacity utilization for the full year? Yeah. So I think last time we covered capacity utilization as one of the vectors. At the same time, as we have done a lot of restructuring and the footprint or network optimization, so I would tend to kind of keep it open because that becomes now one of our very important, I would say, the lever which we'll be using for improving our business performance. So by indicating the capacity utilization, it kind of exposes the overall strategy, okay? But yes, there is. While last year was basically matching the capacity to demand exercise. Now, we are wanting to leverage our available capacity to grow volumes profitably. So efforts are there to improve the capacity utilization. That's what I would like to comment. Okay. Sure, sir. Okay. Got it. But sir, this year, we have seen a 15% decline in the top line. How much would be attributable to volumes? Yeah. So I think the decline in the top line and volumes are almost kind of trending at a very nearer to each other, okay? And that's where the business, as I said, last year, that is 2023, the strategy was to basically match the capacity to the demand instead of creating a demand which was unprofitable, right? So that's where we kind of focused on. Now, we know where we stand, what geography we are there, where is our customer, and what markets we want to serve. We call it where to play. And we are having clear, articulated strategy around that. And that's where we want to accelerate, so. Okay. Sure. Sir, a bit of a long-term question. You have highlighted the strategy on Blueloop and the ancillary products. But how would you drive volumes in the other products other than Blueloop? Because those are also important to increase your capacity utilization, right? Absolutely. Absolutely. You write a very good question. So essentially, there are levers now which we are definitely using. One is, of course, Blueloop. That's one of our important strategies. The second one is with the existing key accounts. The efforts are to engage with them in terms of quality, in terms of service, in terms of superior technical support, and increase the share of wallet. So that's the second lever. The third lever is what we are examining and wanting to use is when we now corrected our capacity base and cost restructuring, the businesses which were not attractive in the past and which we had to let go, I mean, two years or three years ago, could be also there on the cards. So that's the third lever which we are using. And then the last lever is a fourth lever is also expanding to the newer categories or to the newer customers, region-agnostic, not only in India but elsewhere. So these are the four areas which we are working, three areas apart from the Blueloop. Okay. And sir, whom you would be taking wallet share from as of now? Who would be the key competitors you have where you are aiming to take wallet share as well? So the packaging industry is largely a fragmented industry, Khush. So it's really; we cannot say that from whom you would be taking the share. As you can imagine, we are into a flexible packaging where the target market is basically consumer packaging goods companies. And they are basically varied from foods to personal care to the home care to healthcare and industrial and so on, right? So essentially, the product which we will be successful with will be on all these categories. And then really speaking, mapping because top 10, if you ask me, top 10 or 15 competition, they are in various geographies. And monitoring them or measuring whom the market is coming in from is, I would say, not really our interest also. Our focus is basically to grow the volumes and increase the wallet share. Sure. And you would have received client approvals for Blueloop as well? Yeah. So this is a long process, right? So that's where we have started already. In last investor call, we also responded that the gestation period of a customer trial is longer. So as we have invested in 5 locations across the world, so in fact, we had started very early. So the different products are in different stages of the approval process in our customer houses. Sure. And last question, sir. How easy or difficult is it for a customer to shift from now a conventional product to a Blueloop product? So it depends upon the product to product. But at the same time, all the customers definitely follow their protocols in terms of product validations. So that is for sure. At the same time, if you can refer my commentary, that what we are offering in the Blueloop, basically, three distinct advantages, right? So one, what we say, power of three. Product are sustainable. Second, they are affordable. And then they are adaptable. Now, in the adaptability, what happens? Our sustainability, they need to contain protection is one of the important areas. That is the barrier properties. And typically, they are called OTR, oxygen transmission rate, or WVTR, basically, a water vapor transmission rate. So this has to be fundamentally met. That is one first expectation. The second expectation is this product needs to run on the customer machines or packaging lines at the same productivity as the existing product. That's the second one. And then third one, it needs to also meet some price expectations. Now, here is where rubber meets the road, that some customers' places, these are the premium products. So some customers are willing to transition for the premium product because their products also enter in the end premium. So that is where so it depends upon the customer's sense of urgency and their commitment to their sustainability commitments. And I think we are seeing some traction coming in and a lot of interest coming in from the various customers. And that is where we are really optimistic about that the conversion rate going forward would be higher than what we have seen in the last six months. That's one a nd second, as I said, we also are coming up with some other variants, variants of the Blueloop. We call it Blueloop Light or Project Zebra, wherein there are some interim solutions also we are offering to the customers. So that is also helping our customers to transition to the Blueloop products. Got it. So got it. I'll get back in a bit. Thank you for patience, sir. Thank you. The next question is from the line of Saurabh Patwa from Quest Investment Advisors. Please go ahead. Thanks, sir, a lot for giving me this opportunity. Congratulations on delivering on all the key variables which you have been highlighting in the last four quarterly calls. So just on Blueloop, I have one question which is basically, while you have highlighted the strategy for 2030, you also highlighted the kind of varied products which you would want to work on. Just wanted to understand where we are on the implementation compared to the parent or have the parent been able to get many of these approvals already done? Or are they also on similar lines with us with respect to the acceptability of these products with their customers? Because the ideal reason of this question is that many of these products, when they are sold to large FMCG companies, if the parent product is approved, it would be relatively easier for them in terms of acceptance and usability. Yeah. So this is, again, a good question, Saurabh. So as we are introducing this as a global umbrella and our other subsidiaries are in various stages of the equipment installation or commissioning. So as this is the public information I can share, in Europe, we are already installed on equipment. In Middle East also, we have installed. In India, we are just waiting for regulatory clearances. Whereas in Southeast Asia, in one location, we have installed, whereas in other locations, it's still in the process of installation. So this is on the equipment side. On the customer side, acceptance of this product also, it varies. So we are offering the products in these four areas, right, if you would have seen in the past. We are offering mono-material. We are offering the polyolefin base. Then we are offering also in the paper base and then the intermediate structures. So in some European continent, there is a traction for the paper base at a very high premium. So there is attraction. Mono-material is getting traction in there. In certain, I would say, the Commonwealth countries where the regulation is kind of getting accelerated towards the recyclability, we are seeing the attraction on the mono-material. So it depends upon the country to country. And I think good news is that we are also aligned our equipment and installation according to that country requirement. And the third point helping us is basically, we are also learning from each other. So we have a very good platform now internally wherein we meet frequently along with our other country counterparts wherein we share with each other the challenges as well as the opportunities those challenges bring with it. So it's exciting progress. Okay. So can you give some so in terms of volumes, how much would be the parent's volume coming from Blueloop? Or what is any expectation there? And similar to that, how are we placed? Yeah. So when giving a square meters or tonnages might not be possible at this point of time, but our intention and aspiration and the plan is to introduce all this Blueloop or recyclable structure in excess of 90% by 2023. Today, we are somewhere around 26%. And that's where the improvement will be there, right? Yeah, by 2030. By 2030. Just last one question, just a little bit. So I think in the past, you answered this question. So I think a large part of your restructure in terms of product and customers have been done, which has led to a volume decline in the last one year or so. And consequent to that, you've also worked on the cost side of it and done a lot of cost plan consolidation, labor consolidation, etc. So from here on, your revenue growth would be driven by volume. And how has been the realization? So what kind of volume growth over the next three years you would expect? And any realization decline which you have seen in the last one year? And how do you see that? I'm not asking for a guidance, sir. It's just from a trend basis, anything you can share. Fair enough. Fair enough. So of course, our idea also is not to give, by the way, in my presentation, the first slide probably was the red herring, the safe harbor statement wherein we do not intend to give any guidance at all. So probably that was one of the what I would have started my presentation with. But here, coming to your question, so look, we have definitely by improving our cost structures and the footprint, we are becoming more agile and responsive company. And that's where we are looking at volumes we'll start picking up because of the efforts which we are taking, as I said in the last question, the four vectors of our volume growth. While with this revitalized cost structure and the base, any volume improvement will be having a positive impact in terms of our productivities, vestiges, and then realizations will be clearly improving going forward. Just to clarify, sir, so in the last one year, have we seen any realization decline because of raw material coming down? See, raw material per se, to say, we are into a business wherein we have certain contracts with our end customers also. So per se, both sides are the and then definitely, the raw materials were stable in 2023. So I would say there was no benefit per se. But at the same time, there was no stress also as if it was in 2022 because 2022 was an unprecedented year in terms of price volatility. Thanks a lot, sir. I'll get back in a bit. Have the best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. The next question is from the line of Vipul Kumar Shah from Sumangal Investments. Please go ahead. Hi, sir. Thanks for the opportunity. Congratulations for a very good set of numbers. Sir, my question is, do we still have any unprofitable portfolio which we would like to share over a period of time? And if yes, can you quantify it? So Vipul, see, nothing is profitable or unprofitable if we put into the context, right? Even sometimes, unprofitable part of a business also might be taking also some of your unabsorbed cost. So it's basically an evolution of the overall P&L and balance it, how we see it, right? So we took this view. And I think I covered this in one of the last questions wherein why we are also looking at one of the leverages going back to the businesses which we had lost in the last 2, 3 years ago also maybe because of the cost structure. So now we have an improved cost structure. So we will definitely have certain opportunities. So at this moment, what we see is now as the overall basket of the opportunities in front of us. And then what do you push in which quarter or which time of the which time would be also important? So I don't think we have right now such a kind of thing what we had in 2023. So everything is now, I would say, contributing. And here on, whatever happens, it's better in terms of volume, in terms of productivity, and in terms of what we have carrying on our balance sheet, which is basically a very good, healthy yeah, liquidity. And sir, my last question is, so what will be the contribution of this Blueloop range to our turnover, say, 2-3 years down the line in terms of percentage of our overall turnover? Yeah. So I answered this in the last question that today, we are at around 26% of our contribution in terms of our sales from Blueloop products. And by 2030, we want to take this to beyond 90%. So essentially, today, say, we are at 26 and 90, so a gap of 65%. And we have a, let's say, six years or seven years. So we can say 10% delta every year. Sustainable product. Sustainable product. Margin for Blueloop and other conventional products are the same, or they differ? These are all price-sensitive information, I could imagine. At the same time, you can imagine that the Blueloop is a sustainable product. Yeah. It is going to help Mother Earth. Okay, sir. Thank you. All the best. Thank you. The next question is from the line of Lakshmi Narayanan from Tunga Investments. Please go ahead. Mr. Lakshmi Narayanan, you're sounding a little low. Is it better now? No, no. Could you please hold your device closer to you? Hello? Yes, Mr. Lakshmi Narayanan. Is it better now? Yes, yes. Please go ahead. Yeah. Two questions. First is that if I look at the packaging material cost of the top-line FMCG companies that are listed and if I compare over the last five years, the revenues have actually been I mean, or the packaging material costs have been continuously coming down. And they actually enter into reverse auctions with players like you. So my question is that on a long-term basis, how do you look at it? How much of your currently the business comes through these reverse auctions where there's always a you're calibrated on per-ton basis of the films or how do you think about that? Yeah. Thanks for the question. It's a very good question. So I mean, you are going through a lot of other financials of FMCG and also. I mean, your observations through that the packaging cost for these companies are coming down and all their challenges in terms of the reverse auction and all. So having said that, even when we look at the Huhtamaki materials, we are doing everything possible at our end. We are working on even to cost competitiveness in terms of improving our efficiencies, working on our overhead, and all other things. So it will be very difficult to say that how much is coming through reverse auction, how much is coming through normal other channels and all. I think one thing we have to communicate is that as the market is getting more and more and the competition is increasing day by day and becoming more and more intense, at the same time, we do have responsibilities that we have to look into that or way of working operations and all and try to improve our operational efficiency so that we can continue to compete and be relevant in the market, at the same time, focus on innovation to make sure that how we're going to drive the sustainability being a market leader. Got it. So earlier, you used to give this information related to either the products introduced in the last couple of years or value-added packaging. That's a metric you used to push innovation. So do you still—I mean, I'm sure you track it. But what is that number now? And how is it trending? And what do you think it will trend over the next five years or even longer? At this point of time, from last two or three quarters, we are talking about a Blueloop. And I'm sure in the near future, we'll be in a better position to talk about those numbers and all. I'll say that it's very initially stable now. But definitely, when we talk about overall New Product Vitality Index and all, we are pretty good in that. I believe it should be somewhere between 25%-30% kind of not very specific, but in range. You are developing this design competency. For example, a couple of years back, you developed these features for soft drinks. That kind of design innovation, if you can just touch upon how much of your products are actually built to print and how much you're actually working not only with the creative but also the manufacturing of your customers? I'm not very clear. Can you repeat? What was that? Yeah. So there are two parts, right? One is that you just make it as per the reverse auction. And then there is another thing where you actually work with the design team trying to innovate on packaging. So how much is what percentage of revenue comes from places where you have almost a full market leadership or market presence in that particular product line? Yeah. This is actually a good question from a I think you are really a very good observer of the industry, it looks like. So look, we talk about innovation. So one is the structural innovation. And that is where we talk about the Blueloop. The second one, what you referred is basically a format innovation or easiness for printing. So these are the two areas where we keep on working along with our customers so that we get some first-mover advantage, okay? But the irony of our overall industry is basically the catch-up happens very quickly. So in other industries, if, let's say, someone introduces, and then there is at least one or two years of first-mover advantage. Here, that advantage is probably in a month's time. So that is where the competition catches up. And even forget about competition. But c ustomers also have their own policies like two suppliers or three suppliers because they are the large conglomerates. So that's where the so we keep on improving on that. And we are the company where we introduce a lot of packaging innovation in terms of printing, in terms of formats. So if you'd ever heard in the market, we were the first one to come in with the variable code printing or the bag-in-box kind of things. And then there is a so if you see a lot of new innovations coming in market, I mean, it will be from the house of Huhtamaki. And this one is just edge. This is just edge. This gives you the edge in the market for some time, yes, for sure. Got it. One last question. What is your mix of exports and domestic for the full year? And how it compares with the last year? It's more or less remaining in the same range what it was last year. We typically had 70/30 kind of a ratio. We will take 1 or 2. Thank you so much. Thank you. The next question is from the line of Aditya Khetan from SMIFS Institutional Equities. Please go ahead. Yeah. Thank you, sir, for the opportunity. Sir, my question was, sir, for this full calendar year, so there is a dip of almost 14.5%-15% in top line. Sir, is it possible to give the mix of volumes and realization? I mean, like we have said easily when we started our commentary, that majority is driven through our volume. We had some strategic intent as well. That's a focus area what we have in 2024. So majority driven through volume only. Okay. And sir, for the next two years, so we are expecting our volumes to go up. So that is largely because of this Blueloop segment. So how much growth in volumes we can take for the next two years? We cannot give any forward-looking discussion. Definitely, each country would like to grow. That is where we also would like to grow, definitely through innovation, new product, and in general also, the aspirations is to grow. Sir, continuing with the earlier participant question, you had mentioned that this Blueloop is contributing around 25% to the top line. Similarly, how much is it contributing to at the top? So first of all, when we talk about a Blueloop contributing, which we say is a sustainable product so what we are supplying today is a sustainable product, which is kind of a category we club right now into the umbrella of Blueloop. So that's a percentage of a top line. But we generally don't go to that finest level of detailing about which product and what kind of a margin and all. So I think overall, we look at our margins, what kind of margins we are delivering in the fourth quarter and the full year. That's probably be more relevant for the looking into the overall margin analysis. Okay. So just one more question adding on to this. So this Blueloop so coming to the raw material part, so does it require the similar raw materials as compared to the commoditized plastics like PET, MOPET, BOPP? Or is it a newer set of raw materials which is required? So the Blueloop products or structures will require some specific resins which are not used in these regular products. But they are not so different, okay? So some formulations. And that's actually going to be Huhtamaki India's proprietary or we call it as intellectual property. It is more or less a similar resin into this as compared to our traditional products? Input raw materials in terms of resins won't change too much. But there are some ingredients that would change. And that creates a differentiator. And that input ingredients would be a Huhtamaki proprietary knowledge. And sir, we are maintaining our double-digit margin guidance? So we'll be so going up to there for the next few years? We don't give any guidance per se. Definitely, we talk about 2030. We have a very aspirational goal to go to 2030, which we are communicating over time and again. If you want to know one and two and three years, so we don't give any such guidance. Okay, sir. Thank you, sir. Thank you. Thank you. Thank you. The next question is from the line of Saket Kapoor from Kapoor & Company. Please go ahead. Yeah. Namaskar, Dhananjay Salunkhe. And thank you, sir, for this opportunity. Just to put this sum and substance of our discussion, is it correct to assume that the course correction exercise which we carried out, say, 1.5 years ago, is now culminating? And And now going ahead, the company will be bearing the fruits of the corrective steps, whether it is rationalization in the plant and product profile, that everything will start now appearing going ahead? This would be the likelihood barring the exaggeration in the raw material prices. Can we now target towards a consistent set of earnings going ahead? I mean, Mr. Saket, first thing, we are maintaining that we normally don't talk about any forward-looking statement. And if we are talking about what we're targeting at all, it would lead into that kind of statement. But yes, I mean, we did a lot in 2023. And we had a benefit of that in 2023. And as I said earlier, it's a continuous improvement journey. And we keep continuing doing and looking for opportunities wherever we can in terms of overall efficiency and cost competitiveness. Sir, my question is simple. The steps taken by you, are we done with that exercise? And the benefits of the same will start now flowing into our number. This is what I'm not looking for any margin expansion guidance. I'm not looking for any margin number also. Only the exercise undertaken by the management to rationalize things and to put the house in order, if I may use the term, has that exercise been over? And now is the time for the company to bear the fruit of the same? So we did a lot. That's what I said, Mr. Saket, in 2023, we had certain targets which we had done in 2023. So if we talk about immediate short term, yes, we are done with that. But others are opportunities in the company. So we cannot say open our doors or anything like that. In short, yes, we have done what we wanted to do in the short term. So let me put it in his own language. If we have put our house in order, that means major repair and maintenance has been done. But then every day, you also need to maintain your house, right? So that's how I will put it. Yeah? Sir, we have also spoken about investing in our workforce, investing in our team. So if you could just elaborate exactly what have been our attrition rates? And I have also read somewhere that an old permanent person belonging to the KMP team, I think our learned company secretary is also now relinquishing his post. So just wanted to understand when you said that we are working on the team, if you could explain to us what steps? Okay. Good. I think so. So So when we keep on looking at the team, it is, again, an evolution, right? So first of all, our attrition rates, we keep on benchmarking our attrition in terms of industry benchmark and our peer benchmarking. And I can say we are better there. We also keep monitoring the high-potential employee attrition. That's also better than the regular attrition. And third point, you made a statement about some key positions and all. This is, again, an evolution. And we definitely review this ongoing basis. And I would also or we keep that as an opportunity to actually reset or onboard a fresh talent in the company. So we use this. Attrition definitely should not happen. And high-potential attrition or a talent which is required to run the company. At the same time, if someone has some other plans for his or her future, we see that also as an opportunity to also put the right people in the right places. So on that front, I think we are really doing very well. Correct. Thank you, sir. All the best to you and the team, sir. Thank you. Thank you. Thank you. Due to time constraints, that was the last question for today. I would now like to hand the conference over to Mr. Dhananjay Salunkhe for closing comments. Thank you. And over to you, sir. Yeah. So So thank you, everyone. I think the questions coming in here are really reflective of the fact that all our ecosystem and the investors are taking a lot of efforts to go through the company financials, all past investor calls, and keeping that in mind. They're asking questions which are also giving some reflections to us as well while we are answering them, whether it is on the cost restructuring or growth or on the Blueloop or on long-term profitability or even on the talent and also the innovations, what we do, format innovations or packaging innovations. So very good reflecting questions. And we try to also answer them to the best of our capabilities and capacities and also keeping in mind that there are some guidance which is in terms of not giving any forward-looking statements. I fully expect that the people who are on the call will also understand the limitations and accept that. Lastly, I really thank everyone involved here to have a continued interest in Huhtamaki India, and looking forward for your ongoing support. Before we close, I would like to thank you, Anil and Sumit, and Jagdish for keeping this in the context every quarter and ensuring that we have engagement with the investors. Thank you very much. On behalf of ICICI Securities, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you.