Ladies and gentlemen, good day and welcome to the Bikaji Foods International Limited Q3 FY25 Earnings Conference Call. As a reminder, all participant lines will remain 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 the operator by pressing star, then zero on your touch-tone telephone. Please note that this Conference is being recorded. I now hand the Conference over to Ms. Hazel Rathod. Thank you, and over to you, ma'am. Thank you. Good afternoon, everyone. Thank you for joining us for Bikaji Foods International Quarter 3 and 9 Months FY25 Earnings Conference Call. From the management, we have with us Mr. Rishabh Jain, CFO, and Mr. Manoj Verma, COO. I now request Mr. Rishabh Jain to take us through the key opening remarks, after which we can open the floor for the question-and-answer session. Thank you, and over to you, sir. Hello, hello to all investors. Thank you for joining the Investor Call. So overall, it's a very challenging quarter for all FMCG, where we've seen consumption trends are moving up in the fourth quarter, January. Also, we've seen some positive signs in budget middle class, in reducing income tax and other factors, which will also have some positive signs for the economy next year. So this year, this quarter, it grows 12% in sales, and overall revenue from operations grows 14.5% compared to last year. From a different lens, of course, the operating margin was at pressure in third quarter. And from September onwards, we've seen oil prices have started moving up, and sudden increase in palm oil taxes from government has impacted overall pricing of palm oil and overall all the edible oil, largely. It has impacted overall gross margin in fourth quarter. Gross margin pressure was we tried to pass on the prices to consumers, and we didn't see some price hike in third quarter, as well as we're also evaluating price hike in fourth quarter. Also, there was a key pressure of potato. Like you will see that our Western snack sales have grown at a subdued percentage, 0%, largely. This was a conscious call which we as a management have taken, largely because potato prices increased substantially, and in Western snack chips like the potato and oil, that's a two-key commodity, and both the prices have increased substantially, so we have subdued the production in third quarter, which has also impacted revenue to close to 1.5%. It's good to see your YTD numbers as we got sweets because sweets is largely this year. Diwali was in end of October versus last year, Diwali was in 10th of November. There were some pre-festive sales in second quarter this year. Overall, our revenue growth in YTD numbers is close to 17%, and overall revenue growth year-over-year is close to 15% versus 11% volume growth. Our EBITDA margin stands at close to 11.1%, gross margin 32%. From a manufacturing lens, it's the same. We have not increased any major capacity and trying to utilize the capacity as soon as possible to close to 65%-70% so that operational efficiency comes in at overall level. From pan-India distribution level, so largely that's the core of distribution. We have also started to increase the direct reach, and we have further gained the distribution and have reached close to 11,5 00,000 outlets in total. As a direct reach perspective, we are close to INR 3 lakh outlets, close to INR 2.88 lakh outlets this year, which is fundamental for any FMCG, and that's what we are targeting. From marketing lens, Manoj, you can say. Yeah. So, marketing campaign, what we did, and which was a big one, Bikaji Foods London Jao, which ended on 31st of December, did pretty well for us, and that was a savior. Because if you look at when you go to the presentation, you would see that volume growth is just 3%, but actually speaking, if we look at revenue volume growth is 8%, that's the right number. It is because on the back of last year's quarter 3, within 10% extra was going, so 10% was non-revenue volume, but then that sits in the way, so therefore it looks cheap to us, so this promo indeed helped us do better. We got very good penetration, able to increase our weighted distribution with this kind of campaign, what we did. We used all communication vehicles. We used a few celebrities like Diljit Dosanjh and all, and this expanded across countries, so all the states and about 3,600 cities. The winners who benefited of this promo is to the tune of 634,000 winners who got something or the other out of this promotion. Festive campaign we did, so our gift packs did very well. However, quarter 3, as I'm talking, overall, so the right way to look at gifting and sweets is some total of quarter 3 and quarter 2 because of Diwali being a little here and there kind of a stuff. But overall, it was a good business on gifting for Bikaji Foods. Talking about volume growth, and as we look at quarter 3, so the reported growth is 3%, but if we look at revenue volume growth, it's 8% for this quarter. Ethnic snacks growing at 10.5%, packaged sweets at 11.2% revenue growth. Western snacks, where the growth is flat, is just 0.8%. But that was the conscious call which we took, and as Rishabh just spoke about, because there it was bottom line erosion as we sell more. Both potato and oil, which are the key ingredients for this product, were on the peak of it, and it was not practically possible to pass as much prices. And this is one reason that if you see the results of any of the listed companies in this category, would have certainly bled for that stuff. Papad, again, no other 9.6% growth in this quarter. It's more relevant to see, look at the continuity that YTD, so last 9 months, volume growth is 11%. But here, again, if I just look at revenue volume, so it's 13.3%, which is in line with what we have been talking. Our overall revenue from operations is 17.1%. Ethnic snacks sitting at 12.2% growth. Packaged sweets, as I said, that it's the right way to look at quarter 3 and quarter 2 together. So at a YTD basis, packaged sweets is 17.5% growth. Western snacks, which if you look at just quarter 3 in isolation, is at a 0% growth. However, at a YTD number, it's 16.5% growth. So which speaks about the kind of demand which exists for the call we took, and we did not do that. In fact, H1, if I look at it, is a 28% plus growth kind of. So this is what now, with the softening of prices in potato and also the oil, you will see this in the coming quarter. This will all be made up. Papad at a 15.3% growth on a YTD basis. So it has a strong momentum going forward. In terms of if we look at our product mix, so it is broadly in line with what it was last year, so 62.9% it was last year quarter 4 for namkeen and bhujia together, which is now at 62.1%. So only thing if I refer to this sheet of ours is the western snacks contribution. So last year, if we look at it quarterly, it was 7.5%, which has come down to 6.8%, and this is what I spoke about, that that was a conscious call. Rest all categories are in lin In terms of if we talk about that our core focus and other markets plus exports, if we look at in this quarter, four states' revenue growth is 11%, 10.8%, focus states growing at 14.7%, other states 8.7%, and exports has done good, is at 32.6% growth. On a YTD basis, four states have grown at 11.9%, focus states at 17.1%, and others at 23.7%, exports sitting at close to 21% growth. Our flagship of the continuity on the large pack continues, so the mix of product between Impulse and the large pack is 61% from large pack and 35% coming from Impulse pack. Both the family pack and Impulse pack have done well in the quarter, so family pack growing at 11.6%, Impulse slightly higher at 12.9% growth. Rishabh, overall. So overall, from revenue lens, we grow at close to 14.5%. Yeah, overall quarter and quarter is largely flat. As you see last quarter, from EBITDA lens, our EBITDA is close to 8%. So from raw material lens, of course, edible oil has substantially hit us, all the FMCG brand, and close to the price has been increased from close to INR 140 level. And currently, it's at close to INR 130, but yeah, overall, it's at the peak currently. But yeah, from this quarter, what we see, it's a good growth. This is a good growth this year. We're seeing good growth in all the commodities, and we've seen that that will support overall. In In fourth quarter, we've seen good pricing. We've done a good pricing support. Taken good long-term PO for all the key commodities, what we already started doing, and that will support the margin in coming quarters. Be it perishables, be it vegetables, or be it anything and everything. So we've seen good quality, strong this year, in each and every commodity. So that's all from presentation. We're happy to answer all the questions and take all the questions you have. Thank you. Thank you, ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touch-tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use their handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question comes from the line of Abneesh Roy from Nuvama Wealth Management Limited. Please go ahead. Yeah, thanks. My first question is on the segment-wise growth numbers, so I see a big divergence between, say, Q3 and nine months when I see the data. The bigger divergence is between sweets, where there is a 17% growth in 9 months, which drops to 11% in Q3, which means first half, obviously, we're already given that number. It's almost 20%, so 20% drops to 11%, and similarly, Western snacks from 16% become 0%. So here, specific question is, I understand Western snacks, you did call out that conscious call was there because of very low margins, but what happened in sweets? So sweets, essentially, marriage season, always there is a big benefit because of the gifting, and Q3, we have seen whichever category has a high marriage demand, those have done really well, so in your case, if you could discuss in sweets, what is the issue here? Would you expect sweets and Western snacks, even in Q4, to underperform the other two categories for you? Yeah, I agree. See, packaged sweets, the role of wedding season, of course, is there. But the quantum of gifting in Diwali is by far high. So it's a very small percentage. We're having the Diwali gifting kind of numbers, what we do. Now, what happens is that last year, Diwali was on around 23rd of November. Yeah. So later part, when this year, it was on 1st of November itself. So this got preponed in quarter 2 itself because modern trade, which is the very big account for us, our other states and also where sweets is very big. So all these stuff goes, the preloading starts happening. So this is what is always the case that quarter 2 and quarter 3 put together is the right number. Wedding season. Also, if you look at the wedding season, number of wedding dates are more in quarter 1, quarter 4, with a weak quarter 3 if we compare over last year. But again, I'm reiterating on the fact that, yes, wedding season plays a role, but it is nowhere close to what gifting and Diwali means for this category for us. Also, Abnesh, so your last question was, so for fourth quarter, like western snacks is again on track, and so the fresh crop is remaining for end of, and so it's on track, and we have again started full peak production in western snacks, and sweets will be also in the same range in fourth quarter, but yeah, fourth quarter, sweets will be in a very low because major sweets production is happening in second and third quarter. Understood. My second question is on the demand side. So again, here, 3% volume growth versus first half, 18% growth. It's a dramatic slowdown. And when I see, even in Q3, India's largest biscuit company is seeing 6.5% volume growth, and you are seeing 3% volume growth. So could you tell us, is there some market share loss? And here, I'm not referring to the official market share data. It may or may not be relevant. My question here is, what really happened? How much is the impact of the gramage cut, for example, at INR 5, INR 10 price point? If you could take us through that because there you can't take a pricing growth. When you compare your 3% growth to India's largest biscuit company at 6.5% in the same quarter, we are living in the same quarter, same India. Why there is so much of a divergence here? Both are in the snacks category, so if you could tell us how you see near-term volume growth coming back. Sure, Abnesh. So one is that 3% is not a right number to look at it. If we speak about our revenue volume growth, so it's 8%. And this somehow connects with your gramage cut. So last year, in this quarter, all our large pack had 10% extra, which was not the case because of the prices. And anyway, that was a time-bound promo, what we had done. So if I look at revenue volume growth, it is 8%. That is one. Second is that Western snacks, the category which contributes about 8% to our business, and is at zero growth, right? That's the second reason. So therefore, other than this, if you look at the ethnic snacks, the other categories are well on track. So there's nothing to which really is concerning or worrying for that stuff. So this is where we are. This number looks low because last year, it was 10% extra, which was going, which has not gone this year. 10% extra is there in Q4 also? End of the base? Last year, yes, it was. So this was there till Q4. So that's when we ran this promo last year for 6 months. Okay, understood. So last follow-up here, essentially, at INR 5, INR 10, what has happened in terms of gramage cut there? And Q4, you expect some recovery because you have said that western snacks, there is a recovery. So in terms of volume growth? Abnesh, largely, we have taken some gramage cut in INR 5, INR 10 in last week of December. That's what we've done. Q4 also, we've seen good growth coming in, good pricing support from raw material side. We see again good recovery in margin from that time. One follow-up. Where have you seen softness? Because other companies are not seeing any big softness in palm oil till now. It may have corrected. So we have seen softness in palm oil, but we have seen softness in key commodities, all key commodities. Okay. Thanks. That's all from me. Thank you. Thank you. Thank you. The next question comes from the line of Percy from IIFL Securities. Please go ahead. Hi, sir. So this quarter, if I look at your ASP, it is around 9% YY. If the volume is 3% and the price is, sorry, sales is 12%, it means that the average selling price, either because of reduction of promotion or the price increase itself, whatever be the route or path, but effectively, the average selling price has increased by 9%. So given the actions that you've already put in the market, including some changes in December, etc., how much YY growth in the ASP you expect in Q4? YY, if we look at, would be around, say, 3% kind of a stuff. 1.5% we have already done. Now, 3-3.5% kind of a growth you will see, ASP growth. No, no, sir. 9% is already there in third quarter. So fourth quarter has to be more than 9%, right? No, no. So again, Percy, let me explain it to you. While it looks 3%, actually, it is 8% growth, revenue volume growth. Sir, I understand that. I am saying reduction of promotion is also pricing in a way, right? So the average selling price per kilo has gone up by 9% YY this quarter. I'm saying that some initiatives have happened probably in December and January, which have not fully affected the 3Q. So what would be the ASP growth for Q4, given whatever actions already taken? That is my question. So more than 1.5% in Q4, what will it be? Okay. So around 10%-11%. And given the inflation that you have seen, would that be enough for you to recover the hit on the margins that have happened this quarter, or there would still be some sort of partial hit, which would still come in Q4 and maybe can be recovered only in Q1 or Q2? Largely, that's what we'll do. We'll do more than 1.5% price increase in February and March first week. That's what we'll do, number one. Number two, we are hopeful that we'll again come at gross margin of close to 30% plus or 31%. And that's what we are. And in the next three to four months, again, we'll plan it. We are working on to come at gross margin of roughly gross margin 30%. That's what we plan. Yeah, in this quarter, good quality gross margin is plus 30%. Got it,m y second question is on the cost under the gross margin, which is the employee cost and the other expenses, so the employee cost is up around 30%, and other expenses is also up like 21% or so on a sales of 12% growth, so what are the reasons that the growth here is higher than the sales growth in both these line items, and when do we see this normalizing and coming in line with the sales growth, by which quarter that will happen? So two things, basically. In this quarter, third quarter, the ad cost in other expenses, which is highly largely compared to second quarter. And that's what's increasing. That's the major spend, which was in ad because it's already booked. There was big sweets and festive season. So we need to do the ad. That's what our business is. So that's the one cost, which is increasing this quarter. From employee lens, there is the ESOP cost, and there is other factories, which is getting underutilized, and people cost will spike. So that's why any factory which has started in the last 12 months, the people cost is high increase. But yeah, once we see utilization up, this will again come at a normal level. But to the point, from next year, first quarter, we'll see again normalized growth in employee cost. That's what we see. Okay. So by Q1 next year, both other expenses as well as employee cost should grow more or less in line with sales, right? Right, right, right. Okay, okay, sir. Thank you so much. That's all from me. All the best. Thank you. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Darshit Vora from Asit C. Mehta Investments. Please go ahead. Yeah, hi. Am I audible? Yeah, please go on. Yeah. Thank you for the opportunity. So my first question was that we are having this roadmap of ramping up our capacity to 70% utilization, right? So could you give me some kind of a roadmap or some internal targets wherein how and by what timeline would you be able to achieve this kind of utilization together? So largely, our target is to grow volume by 10%-14%. That's our target is. This quarter was an exception, but our target is to grow volume in 10% at least. And that's what we have built a capacity in the last four years. And that's what our target is for next four years. Okay. Next, how much time did you say? So next four years' target, at least we want to grow capacity, volume by 10%. All right. Okay. And with respect to margins, so this time we've seen quite a fall. How do you see the raw material prices move from here? And also, by when do you think the margins will be back to our usual numbers? So in both quarters, we'll see improvement from here because this was an exception. Oil prices have increased readily in a month's time. So that's how we're passing the prices substantially in a turning time. But yeah, overall, we see in the next two quarters, we'll again at our normal. That's our target. All right. Okay. And finally, just to close, would it be possible to either give a range or relatively speak about gross margins across product categories? Yeah, it's difficult. We can't speak on one-on-one only. All right. All right. Yeah. Thank you so much. Thank you. The next question comes from the line of Disha Giriya from Ashika Institutional Equity. Please go ahead. Hello. Yes, Disha, please go ahead. Yeah, hi. So if I see your third quarter FY25 Presentation in terms of core and focus market mix, it clearly states that the focus market has gained year on year in terms of revenue contribution. So can you specify any such particular market where you have gained market share? So we have gained market share across focus states, if you look at, right? So be it the smaller one like Chhattisgarh, Karnataka, or you look at the large states like UP also for that stuff. This is where it is. So there is a positive movement across these focus states. Can you specify any quantum of market share increase? So quantum, see, it's for a large state like the UP. It's a 30 basis point, 60 basis point increase over last year. Whereas if I speak about smaller state like Chhattisgarh, there is a 300 basis point movement which has happened. But it's a small size, the price is not as big kind of a stuff. So it's a varied stuff. Okay. And then your other states' contribution has slightly declined. So what is the reason behind that? So two things. One is that other states, if you look at now in terms of nine months, you will not see this now. Stuff, this question would not come up, or rather the reverse question would come. But let me tell you, the other states' contribution of sweet and gifting is very high because there we play on the back of modern trade. That's our largest business there, right? And quarter three and quarter two, as I was talking about, that there is a shift from quarter three to quarter two which has happened on this stuff. So other states, if you look at on a 9-month YTD basis stuff, they've grown at 23.7%. Okay. My next question is, I just wanted a clarification. In your presentation, the volume growth is around 3%, and you have mentioned it over the call that the revenue volume growth grew by 8%. So I'm assuming the difference is only, I mean, in terms of the grammage changes in your packaging. Is my understanding correct? Yes, that's correct. Yeah. All right. Okay. Yeah, that is it from my end. Thank you. The next question comes from the line of Mehul Desai from JM Financial. Please go ahead. Hi, sir. My first question is on the recently acquired The Hazelnut Factory. How do you see sales growth panning out for this entity in FY26-27? And what is the kind of CapEx that you would look at in FY26-27? Yeah, so this Hazelnut currently is very small, and it's just added in the end of last quarter. So largely, we see that in next year, it will be close to INR 90- INR 100 crore rupees stock line. That brand can be growing very good. And number two, from CapEx lens, from overall Bikaji lens, we see close to INR 40- INR 50 crore of CapEx, largely to do some to build efficiency in the system. That's what we will do next year. INR 45- INR 50 crore? Yeah. Will Hazelnut require CapEx? No, no. So that will not fund from BKG because we already funded largely. So that will be very minimal CapEx because they already have good backend facility. They just need to open outlets. That's what they need to do, and not major CapEx in that plan. Understood, and broadly, this acquisition, I mean, it won't be the margins are better than our current company level margins? Margins are better than current company, yeah. Understood. And lastly, in your core markets, the growths are also, I mean, the ethnic snack growth would have been in double digits. Or is the trend different in terms of segmental growth within core and focus? No, no. So it's in line with this stuff. And core is relatively even better in this case. So ethnic snack is done even better there. Understood. Got it. Thank you so much. That's all from my side. Thank you. Ladies and gentlemen, if you wish to ask a question, please press star and one. The next question comes from the line of Harshit Jain, an individual investor. Please go ahead. Yeah. Hello and thanks for the opportunity today so my question was regarding Delhi, being a Delhi resident, I can say you were quite there in Diwali season but I think you kind of trailed off after that so I want to hear your story, Manohar, and also, I believe BKG's quick commerce and departmental stores presence have been quite low so I want to hear your commentary. Thank you. No, no. Certainly, yes. I think your observation and what you are talking is in line exactly where we stand. So Delhi, if you look at all modern trade stores which is, say, be it any Reliance, be it DMart, or the large existing stuff, you will see our good presence during Diwali, gifting and all. But yes, in terms of traditional trade coverage, it is by far low, and that's where we are working on. So very soon, when I say very soon, in a couple of quarters from now, you will see a changing trend in Delhi as well. Yeah, yeah. Sirs, one more question if I may. So when we see further acquisitions in Delhi area? It's along the lines, we don't see any major acquisition in the coming year. That's what our plan is to grow organically and to utilize the capacity that we have already built. Delhi is very near to Bikaner. Logistics was not so big in Delhi. We'll majorly focus in the next year on going organically. That's what we'll do. One more question, please. Wouldn't it be better to open QSRs in Delhi for more customer engagement and all? Yeah, you are right. But our major focus is currently in Rajasthan. We'll be opening in Rajasthan to QSR outlets. That's what we'll do. Delhi is maybe next 1.5,2 years,4.5 years. Not immediately. Yeah, yeah, yeah. Sure. Thank you. Thank you. Thank you. Thank you. The next question comes from the line of Naitik from NV Alpha Fund. Please go ahead. Hi, sir. Thanks for taking my question. So my question is, can you call out any PLI incentive that we have received in this quarter? And what was it in the last quarter? So basically, currently, we are booking PLI income of close to this year. We'll book PLI in close to INR 14 crore per quarter. And we'll receive PLI from government maybe in this quarter, third quarter by March. And government is very proactive to do all the audits and to release the fund. So by March, we'll receive PLI of last year, FY 2024. There's normally a one-year lag, filing of claims, audits, and everything. So normally, there's a one-year lag. So we'll receive PLI for last year, and for this year, we'll receive next year. That's the process. During this quarter, we have not booked any PLI income in the same quarter this year? We have booked PLI income. We have booked INR 14 crore, right? Yeah, yeah, yeah. What was this last year, same quarter? Same. Same, INR 14 crore. Okay. Yeah, yeah, yeah. Also, if you could talk about, you mentioned that you've seen some softness in the raw materials, so if you could give a little more color on the same, which raw material exactly have you seen softness? That would be helpful. All key commodities, be it our key commodity like Moong dal or potato or peanut, Moong dal, all key commodities, we've seen softening of prices because the fresh crop time. Normally December is the time when fresh crop comes in, and we see a good softening of price in this. Got it. That's it from my side. Thank you. Thank you. Thank you. The next question comes from the line of Nithin from Emkay Global. Please go ahead. Yeah. Thanks for the opportunity. Just wanted to check on the QSR initiative. So have you rolled out in stores for the pilot which we were planning to do? Yeah. So the first QSR coming in next week, by next week mostly, so in Rajasthan. Can you help me with where exactly this would be? Sikar. In Rajasthan? Sikar, Sikar. And the second question is with respect to moong dal. So we were hopeful of some benefit coming in here. So any sense you can provide what is the deflation we see with the new arrival of moong dal? So normally, we've seen close to 14%-15% reduction in prices of moong dal compared to last year. And what is the contribution of moong dal now? Moong dal contribution is close to INR 10 lakh%. But I'll come back with the number. Sure, sure. Thank you. And lastly, are we looking for any commodity covers in terms of the volatile raw material setting? Other than edible oil, we do major cover of most of the commodity, key commodity. Okay. Thank you. Thank you so much. Thank you. Thank you. The next question comes from the line of Abhishek Kumar from Centrum Wealth. Please go ahead. Hello. Good afternoon. So my question is partly in continuation with the previous participant's question. So as a policy, do you guys have any mitigating policies with respect to such wild swings in the raw material prices, especially our key materials like palm oil, potatoes, and dals? So do we have a stated policy wherein if we do keep such raw material inventories for a few months or anything along those lines, it would be great if you could share? So normally, we do, for key commodity other than edible oil, we do long-term contracts with the vendors to hedge the price. And that's what we started one and a half, two years back, largely. And this has helped us in protecting the margin. But yeah, edible oil, we normally do over a very, very short time. And normally, industry also do the same. So other than edible oil, we normally protect the margin and hedge all the raw materials. Okay. Thanks. And could you give a rough split of our raw material basket, as in how much oil or moong dal, potatoes that would constitute as a percentage? Any rough figure? I can come back with the numbers for these commodities. Okay. Cool. Thank you. Thank you. The next question comes from the line of Varun Singh from Alf Accurate Advisors. Please go ahead. Yeah, thank you for the opportunity. Sir, sorry, I missed your commentary on raw material cost, especially when the palm oil prices. So what is the expectation and outlook over here? And palm oil is what percentage of our total raw material cost basket? If you can help us understand that. So palm oil currently is also at peak. It's not its peak was 140. Currently, it's close to 130, 132. It's at a peak at now. We see some reduction in import taxes from government, of course. But in budget, it has not came. But yeah, that's what we are hoping. But yeah, overall, palm oil, we see next 2 quarters at the same level, 120, 130. And it's a big overall, its contribution is big in our overall purchase. Of our total raw material basket, palm oil would be what? Almost 50%-60% of the total cost? Not 50%, 60%, but yeah, overall close to between 20%-27%. Okay. Understood. And what is the quantum of price hike that we need to maybe take from here onwards to offset the impact? And can we expect maybe by next quarter kind of or when can we expect the margins to be reflecting our I mean, given that we have the ability and power to take such kind of price hike, if you can give some understanding on that, sir? So, largely, next 2 quarters, that's what we are working on, that we came on the margin what we were doing in last two quarters. That's what we are working on. Okay. So in October, you already took 2%-2.5% price hike. And more price hikes expected? You want to call out anything on that part? Yeah. Largely, one price hike is expected, and that's what we will do. Look at all the business scenarios, sales scenario, but yeah, one price hike is expected in this quarter. Okay. Sure, sure. Understood, and sir, last question is on volume growth overall recovery. You highlighted 13%-15% is the aspiration. So that number is very much on the track. I mean, looking at the January month, how the business has gone for us? Yeah, that's right. So this is well on track. And I mean, it should be in line with what we have said. Okay, sir. Sure. Thank you very much. Thank you. Thank you. The next question comes from the line of Aditya Tambi from Habrok Capital. Please go ahead. Hi. Thank you for taking my question. Could you please provide me a split of how much of our sales are coming through general trade versus modern trade? Sorry, say again? So can you please provide us the split of how much of the sale is coming from general trade versus modern trade? General trade is the largest contribution for us, which is about 84%-85% come from. Modern trade is about 8%. Okay. Got it. And can you also tell us how the price hikes being taken up by the customer? Do you see them going for an inferior product or slightly cheaper product, or they are embracing the price increase or the gramage decrease that is being done? See, I think this is what we spoke about, that we have taken a price increase, and in this coming quarter, on this running quarter, there's a likelihood or there's a plan to take one more price hike which would offset the price increase what we have witnessed on the commodity stuff. Right. I'm going to ask that, how is the customer reacting to it? Do you see that maybe they are switching to a slightly inferior or slightly cheaper product that is available in the market? No, see, yeah, yeah, so inflation is, I think, very well spoken and very well embodied by all the quality consumers, right, and even if you look at anyone using edible oils in their houses, they also know the kind of prices what they're doing, so yes, quality customer does not look at it as much, but yes, I think the aspirants or the A, B, C, or D, certainly consumption at that standpoint would have definitely impacted, but not as much because when you sell a brand, the price and that couple of percentage price here and there does not matter as much as long as it's competitive with the peer group. Right. Thank you. And could you also give us some flavor on if there are any new products which are being planned on launching, like in sweets or in snacks or maybe something in slightly healthier segment, like many consumers are talking about maybe not going with the palm oils and food? So that's the game in this category. You keep launching. So let's say, and again, market specific. So for Northeast, we launched a variant called Tikha Toofan, right, doing extremely well. But I think till such time, it sustained for, say, 6, 8 months. I mean, it doesn't have as much merit to talk about. But yes, these kind of NPDs across states, we keep doing. And that's what energizes the category and keeps the monotony out of it. Right. Okay. And just some extra comment, if you can give about how is the growth in quick commerce? Because I think last quarter you mentioned it's around 160% growth. So how is it looking like this quarter? So yeah, e-com, because of small base what we have, so yes, this quarter, again, it has grown about 86% growth. Right. Thank you. I think these are all the questions I have. Thank you. Thank you. The next question comes from the line of Dharmil Shah from Dolat Capital Management. Please go ahead. Hi. Thank you for taking my question. Just a follow-up on the previous participant questions. Whenever there is a sudden price hike in raw materials, what is usually the policy that company follows? I mean, is it immediately increasing the prices for all the products for the family packs, or is it like taking a short-term loss but maybe gaining some market share? What is the broad policy that company follows? So see, the first and foremost, which is that one should not lose market share, right? So to protect market share is the biggest one because if you lose share, regaining shares is even a more expensive proposition to do. That's one. But the approach what we follow is that as we see commodity prices going up, so first is that if there are any kind of schemes running, trade schemes, incentives, all that stuff, so we try and knock it off. That's the first one. Then if we look at how further we can improve our efficiency, so consumer hit is the last one to take. But trying everything when it comes, and then if we are not able to make up the threshold, we pass these prices to the consumer. This is how it happens. But this process takes about a month and a half. And also, as my colleague just spoke about, that we have some advance booking with us. So we can foresee that these price increases are coming, and that leaves us with as much time to prepare. Unless eventually the price increased like what we witnessed in the oil, which is much, much beyond what one would have expected. Understood. So suppose when there is a price increase or a decrease in the underlying base raw material prices, the price changes that you do in your products, be it price increase or decrease, is it based on the competitors' prices, or it is more based on the raw material prices? So both, basically. Of course, we look at competitor prices, but normally it takes close to 30days-45 days to pass on the prices. That's what we as a policy. We see the prices, and then we eventually pass on the prices. But yeah, we also see the competitors because that's important for us to review. So is there a policy to be offered better prices than competition or at par or some any sense there? Largely at par with the competitors. Understood. And lastly, I mean, some of the previous participants also asked, but what would be the raw material mix? How much would be palm oil you mentioned 2025? What would be the other key raw materials and their mix? Overall total purchase, it's close to between 25% to 30% overall purchase. All the purchases combined. Palm oil, right? Yeah. But I can get back to you with the exact numbers. But yeah, that's overall purchase is between 25%-30%. And there are a lot of materials because we are into multi-category. That's overall the benefit that anyone edible oil is exception. But yeah, if anyone covered it increase, that doesn't impact much on gross margin. We are into sweets, so milk is a big product. Sugar is a big product. Papad, vegetable snacks. So complete, we have 5, 6, 6 categories. Understood. Thank you so much. Thank you. Thank you. The next question comes from the line of Manish Podar from Invesco Asset Management. Please go ahead. Yeah. Hi. Thanks for giving me the opportunity. So just two questions. First is, let's say if I take these impulse packs, which are roughly, let's say, give or take 38%-40% of sales salience, would it be right? They're largely at, let's say, INR 10. And if that is so, what is the sort of how much is the average gramage, let's say, because there will be multiple categories? What is the average gramage which is now available in a particular product, let's say, a INR 5 or INR 10 pack? Yeah. So first is the small pack of the impulse. What we speak about is INR 5 and INR 10, right? That's what it is. And the average gramage, if you look at it in a INR 5 pack, it would be about 16%-18% average if we look at. And for INR 10, it would be 2x of that. So that's how it works. And how does it stack versus the other categories in that same lens? Because I'm not sure how inflation is impacting because there's a basket of products. But let's say at this price point, just because you are in the market, and so you'll have much better understanding in terms of consumption per occasion, is 15g, 18g a good number versus the other categories in terms of this inflation context? I think it's sort of like-to-like comparison. When you look at the wafers, right? So wafers would be even lower volume for that stuff, gramage if you look at. But then again, the namkeens cannot replace the western snacks or chips or the Kurkure kind of stuff and vice versa. So it is more when you look at that, is it a one-serving kind of stuff or not? So what we believe is that 15g beyond going below, say, 13g, 14g in a pack will not suffice even one-time serving. So that's where we look at, and we compare within our category space itself, so not with different categories in this space. Okay, so you're at 16g-18g? Yeah. That is what you're trying to say. Okay. Okay. And the second one is, let's say, in terms of this direct reach. So let's say in the last trailing 12 months, you've added roughly 60,000 outlets. How much of this would be, let's say, in the state of, let's say, Rajasthan, and how much of it will be ballparked in the state of Uttar Pradesh? That will be helpful, these 2 data points. So I think Uttar Pradesh would be in line of about 15,000, 15, 20,000. And Rajasthan would be about 6,000 kind of a number. Well, I can get back to you state-wise. So offer will not be ending, but. No, this is useful. This is useful. Thank you so much. Thank you. The next question comes from the line of Ashish, an individual investor. Please go ahead. Ashish, if you can please unmute your line and ask your question. Yes. Hi. Thank you for the opportunity. I have one question. Your qualitative comments on the shift from unorganized to organized sector, especially in light of the inflationary scenario which is happening right now. So does the shift slow down, or how do you think this movement going forward? So see, this would be purely anecdotal out of what we observe in the marketplace because you don't have any authentic data on the size of unorganized players and all. But movement. Of course, what has happened is that this shift would continue as the consumer and brand awareness goes up. However, what we also realize sometimes that when these oil pressures go up, so a branded company cannot compromise on quality of product. So the right oil, not used oil beyond the point. However, when we see the local players and organized stuff, so they do not get as impacted as on this stuff. So that's the only stuff and would vary from state to state. But yes, if you look at on a trajectory of shifting from unorganized to organized, yes, that is also helping this category to deliver these kind of numbers. Sure, sir. Thanks. Thank you. The next question comes from the line of Dharmil Shah from Dolat Capital Management. Please go ahead. Hi, sorry. Follow-up question on the price increase again. When you are taking price increase or decrease, is it at pan-India level, or is it based on the regions where maybe a region where you have a better brand, you can take more price increase? How is it decided? So normally, based on region. So normally, we see which region is having much impacted because product makes a difference in every region. So we see region-wise, and eventually, we take the price side. Like MRP increase in Tamil Nadu nationally. That's what we do. Okay. And would it be fair to assume that courts that would have maybe slightly higher price increase than the focused states? No, it will not be that. See, we get governed with UECP, which is Uniform End Consumer Price. If, let's say, a pack is INR 100 MRP, it would be for consumer both under there and anywhere in that stuff, right? However, what we do, as I was talking about, that price increase is also controlled by that if I was running 5% trade scheme, right, and which is withdrawn, so it's a kind of realization goes up by as much percentage, and which is what varies from state to state, looking at competitive pressure, looking at our ambition, and the strategic objective of why are we giving it. Is it a tactical or a strategic investment, so those differ from state to state. Rest price to consumer continues the same. There's an MRP increase. It will not be the case that it goes up in one state and does not happen in the other state. Understood. Thank you so much. Thank you. The next question comes from the line of Abhishek Kumar from Centrum Wealth. Please go ahead. Hi. I have a question. So we basically categorize markets into core, focus, and others. So I have a question. When does the shift from others to focus happen? So do we have a revenue threshold or a market share threshold when we start maybe counting other states into a focus group? And once we start doing that, what all changes? Yeah. So I think that's a very good question. And we have spoken about it earlier also, but let me explain again. See, what we see is it's not about our internal stuff. It is purely external and from a consumer standpoint, from our shopper standpoint, right? So what we believe is that wherever when we are in the high single-digit market share is what we can call that can move upwards in the core state. And say somewhere around 3-5, 3-7, will be the focus state kind of a stuff. Now, the logic of cutting these geographies into three parts is that there, in the states where our brand equity strong market share is relatively better, we do different kind of marketing initiatives there. In the states where we hardly are present or we have very poor presence, which is what's currently parked in our other states, there it's less of marketing. It's more of route to market that you make your products available in the stores kind of a stuff. So these changes would not happen very random or very fast, but yes, it's a journey of 3-5 years. That's where you see that states would be moving up. So what we believe is that in the next couple of years is what a few states from focus, we would shift it to core, and we'll pick a few states from others who are doing better or where we have our plans to invest there. We'll shift to focus. To your question, what will we do differently is what we will start deploying people, investment on brands and all this stuff would start happening in those states. Okay. Got it. Thank you. All the best for the future. Thank you, the next question comes from the line of Shirish Pardeshi from Motilal Oswal Financial Services. Please go ahead. Very high. Manoj, Rishabh, thank you for the opportunity. Just 2 quick questions. Fundamentally, in the times where the food inflation is high, consumers generally do the down trading. I'm just looking at slide 22, where you have been able to maintain your feedback. The person I'm speaking with has put your call on hold. Please stay on the. Hello? Yes, please go ahead. Sorry, she was lost too. So you left the speaker. Yeah. So on slide 22, I'm referring. You have been able to maintain the family pack contribution around 59%-60%. I sense most of the consumer companies are saying there's a down trading, there is a pack gramage which will come down. Just tell me how you have been able to manage because there is a competition angle also because the competition scale has been going up and up in the snacking. And generally, my reference point is that in the snacking business, the small pack contribution would be about 45%-50%. But you have been able to manage between 35%-36%. So tell me what's happening particularly about your company. Yeah. So Shirish, one is that when we say here that it's a down trading kind of a stuff happening. For our products, if you look at any consumer who's been buying one kg pack, or say for that reason, 400g pack will not move to a 13g or a 30g pack kind of a stuff. Also, the impulse packs, what we speak is more on the go kind of stuff, family package in-home consumption. So that's what we have not seen those kind of shift Of course, another thing what we attribute when we were doing this analysis ourselves, so we did one campaign because we Khao London Jao. So maybe to a certain extent, that has also helped protecting the family share pack. And this is where we are. Okay, m y second question is that in the context where e-commerce, quick commerce, these channels are penetrating faster. In the current context, snacking is a big segment, and wholesale does give a lot of lift in terms of distribution and scale. Now, in your assessment, does wholesale channel is still relevant to you, and how does it help, and what are the activities you are doing to scale up the distribution? Yeah. So certainly, wholesale would always be a very, very integral part of our route to market structure. Because if you look at these categories available in about 9,2 00,000 outlets, right, and the source to reach to these outlets, the medium is wholesale or off-take only. No company can afford to make their direct reach to anywhere close to these numbers. So that's where the role of wholesalers is. Now, kind of activations, what we do, we do some wholesale beats, some extra discounting to wholesale. In certain cases, where the throughput of wholesale is very high, so there is an alternate day replenishment to the wholesale. So those are the things we do in that self-separate wholesale beats. So yes, wholesalers get disproportionate focus in this stuff. What would be our wholesale contribution to net sales? So our wholesale contribution would be upwards of about 50%-55%. Okay, but for the industry, it's very high, about 70%. As you, Shirish, spoke about that, our contribution of large pack is by far high. Yes, the companies who are purely into INR 5 and INR 10 rupees, there this would be even higher in that stuff. Our coverage, if you look at our reach, is also not as high. I mean, I think once we reach, say, about INR 20 lakh outlets, perhaps that's where the wholesale contribution will also go up and will also drive our reach in that case. Okay, and last question. When I look back, say sometime September, October, and then compare November, December, the promotion intensity discounting, which has gone up because the sales was not happening. In fact, Diwali has not met the expectation of most of the companies. Now, is that promotion intensity and discounting, which you have seen in the market, some places, say maybe in the wholesale dominant places, is that intensity has come down because parallelly, the commodity inflation is also inching up? Or things are status quo in the month of Jan-Feb? No, no. It has certainly come down in that stuff. So the companies are looking at increasing prices and all that stuff. So that's where it is. Okay. Thank you and all the best. Yeah. Thank you. Thank you. T he next question comes from the line of Sunil Shah from SRE PMS. Please go ahead. Yeah. Sir, just to share the numbers, and the fourth quarter of last year has been one of the best ever for us. And we are stepping into this fourth quarter right now. So clearly, we have burden of our own overachievement of last year's fourth quarter. FY25, we grew over FY24 in terms of the numbers. So my point here is to understand from you, is there any strategic hot pursuit which you are revisiting or relooking? We have targets of rolling out about 350,000 outlets by next year or so. So are we revisiting any of the fundamental structural things that we have thought of at the start of the year? And because this year has been tough and challenging, specifically the third quarter, so is there any revisit on the broader thoughts that you have in the company, or is it like a cyclical factor, and then in the next three to 6 months, we'll be back on track? So just wanted to understand, is there any change in the thought process, broader terms, from the company's point of view? No, no. There is no change in the thought. Largely, our focus is to drive direct reach. That's what our focus is. This year also, from day one, we started talking that this year we'll lay close to 50,000 new outlets, and we are on track. We have added close to 38,000 outlets, and in this quarter also, our target is on track. So that's what our drive is, to have close to INR 3 lakh outlets this year. That's what our target was in this year. So even on the product side, Western Snacks or something which is perhaps not doing well, are we revisiting any of those as well? No, no. It's not doing well. Till quarter two, you'll see that traditional sectors are doing very good. Third quarter, as I mentioned earlier also, so largely third quarter due to palm oil and potato price increase and non-availability of potato also for a few days. So we have stopped, reduced manufacturing of Western Snacks specifically. And that's what has resulted in 0% growth. But yeah, overall, end of December, again, potato prices came in at normal level, and we started production at peak. So this quarter, you'll again see the Western Snacks running at the same level what we are doing. So this challenging environment, do we see any kind of elimination of competition from the smaller players or anything, or it won't gain substantially? Can you repeat me? Hello? May I request you to repeat the question, please? Sure. So this challenging environment, do we see elimination of competition from any small unorganized players, or this is too small a period in which we can see elimination of competition? So, competition in small players, if you look at, so that's the cycle. These will come, few will go. That will always be happening kind of a stuff. Because certain companies not able to sustain, not able to even survive in the kind of environment of inflation and all this stuff. So that always will be the story. If you look at the Nielsen report, any of the state would have at least 200 reported companies who existed. And now a few of them have weeded out. So there's an ongoing cycle. Okay, sir. All the best. Thank you. Thank you. Ladies and gentlemen, that was the last question. I now hand the Conference over to the management for their closing comments. Thank you, everyone. Thank you, all the investors, for taking time out. Hopefully, we met your expectations in terms of answering the questions, whatever came up. We'll be happy to reach out to you, or you guys can reach out to us for any clarification you wish to seek. Thank you, organizers, for being patient and organizing for this call. Thanks again on behalf of Bikaji. Thank you. On behalf of Bikaji Foods International Limited, that concludes this Conference. Thank you for joining us, and you may now disconnect your lines.