Ladies and gentlemen, good day and welcome to Q4 results and investor conference call of Dabur India Limited. 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 this 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 will hand the conference over to Ms. Isha Lamba, Head Investor Relations and M&A. Thank you, and over to you, Ms. Lamba. Good evening, ladies and gentlemen. On behalf of the management of Dabur India Limited, I welcome you to the earnings conference call pertaining to the results for Q4 and year-ended FY2025. Present here with me are Mr. Mohit Malhotra, Chief Executive Officer; Mr. Ankush Jain, Chief Financial Officer; Mr. Ashok Jain, EVP Finance and Group Company Secretary; Mr. Rehan Hassan, Head of Sales; Mr. Raghav Agrawal, VP Corporate Affairs; and Mr. N. Krishnan, General Manager, Finance. We will start with an overview of the company's performance by Mr. Mohit Malhotra, and this will be followed by a Q&A session. I'll now hand over to Mr. Mohit Malhotra. Thank you. Good evening, ladies and gentlemen. We welcome you to Dabur India Limited conference call pertaining to the results for the quarter and year-ended 31st of March 2025. Fiscal year 2024-2025 ended with a consolidated revenue of INR 12,563 crore and PAT of INR 1,768 crore. Consolidated revenue growth was 3.6% in consumer currency terms, which was impacted by one-time inventory collection in India business done in quarter two. Even though it was a challenging year on account of slowdown in urban consumption, high food inflation, and unfavorable seasons, our business fundamentals remained strong, and we gained market shares across 90% of our portfolio. Emerging channels comprising modern trade, e-commerce, quick commerce grew in double digits, although general trade in urban markets remained under pressure. During quarter four, financial year 2025, consolidated revenue grew by 2.1% in consumer currency terms and 0.6% in INR terms. International business exhibited a strong growth of 19.3% in consumer currency, and India business declined by around 3.4%. Within HPC, skin care recorded a strong performance with 8% growth driven by Gulabari franchise. Home care grew in low single digits, with Odonil performing well and gaining 67 basis points market share during the quarter. Odomos was impacted on account of seasonality. However, the brand gained market share of 386 basis points in the MRC category. Oral care was impacted by a high base of 22% in the same quarter last year. However, our CAGR remained strong at 9%-10%. Meswak and Dabur Red portfolio performed well in this quarter. We continued to outpace the category growth and gained market share of 15 basis points. In haircare portfolio, shampoo recorded a growth of around 4%, but Hair Oils were impacted. Hair Oils grew ahead of the category and gained market share of 196 basis points. Coconut Hair Oil portfolio recorded a strong growth of 11%. Within the healthcare portfolio, health supplements recorded a muted performance. Sales in Honey and Chyawanprash were impacted on account of delayed and contracted winters. Albeit, Chyawanprash and honey both gained market shares of 162 basis points and 75 basis points, respectively. Glucose was a strong performer and recorded a growth of 10% with market share gains of 112 basis points. In the digestive portfolio, Hajmola franchise recorded a growth of 3.3% with market share gains of 233 basis points. Recently launched Hajmola Zeera was very well received by the consumers. Extensions and variants now contribute to more than 50% of Hajmola franchise. Within OTC and ethical winter-centric portfolios, Lal Tail, Honitus, etc., were impacted. However, Dabur Health Juices contributed to the growth momentum and grew by 25% year-on-year. The foods business continued to grow, continued its growth momentum with culinary business recording a strong double-digit growth of 14% led by the Homemade brand. Bath shower grew by 6% in the quarter. Institutional sales of bath shower this quarter were impacted due to a cut-down in budgetary spend by CSD. However, business grew by 12% in financial year 2025. Beverage portfolio was impacted due to a slowdown in urban consumption, as 70% of the portfolio is in urban India. While the overall portfolio declined, the premium segment has done well with Real Activ and coconut water recording a robust growth of 11%. We gained market shares of 261 basis points in the J&N category. Coming to international business, we registered a robust growth of 19% in consumer currency terms. This was on back of strong double-digit growth in MENA, Egypt, U.K., U.S.A., Turkey, and Bangladesh markets. International business has been performing well, and we shall continue the momentum going forward as well. As we look ahead to the next phase of our growth journey, we have undertaken a comprehensive refresh of our vision strategy. Our ambition is to achieve a sustainable double-digit CAGR by financial year 2028 in both top line and also bottom line. This renewed strategy builds on our core strengths while pivoting towards future ready levers of value creation. Our strategy is anchored on seven key pillars. I'll take them one by one. First, continued investment in our core portfolio. We have seven nearly INR 500 crore brands which contribute to approximately 70% of our portfolio: Dabur Red, Real, Chyawanprash, Honey, Hajmola, Amla, Odonil, and Vatika. We will continue to add scale to these brands through disproportionate investments, thereby increasing penetrations and driving market share gains. Second, premiumization and contemporization across categories. Few examples of these are serums, conditioners, masks in haircare, benefit-led toothpaste in oral care, active range in beverages, gummies, powders, and effervescent in healthcare. Third, bold bets across healthcare and wellness spaces. We will focus on ramping up Hajmola franchise, health juices, Shilajit, to name a few. Fourth, rationalization of underperforming products and SKUs in order to release capital for bigger bets. Few examples of these are Vedic Tea, diapers, and Vita. Fifth, we will continue to drive GPM 2.0 in the organization for effective expansion across urban and rural India. We will double down on emerging channels like e-commerce, quick commerce, and modern trade. We will also focus on consolidation of stock lists for better ROI, reducing cost to serve with urban GT channels, and enhanced use of digital tools to boost extraction. Sixth, aggressively pursue M&A opportunities for creating a future-fit portfolio, particularly focused on new age healthcare, wellness foods, premium personal care. Seventh, operating model refinement for optimizing costs, driving efficiency, agility, and digitization across value chain in the company. With these initiatives supported by improving macros, aided by income tax cuts in the budget, easing food inflation, and a positive monsoon forecast, we anticipate our business to regain momentum and deliver sustainable, profitable growth going forward. With this, I conclude my address and open the floor to any Q&A. Thank you. Thank you very much. We'll now begin with the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone 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. Participants, you may press star and one to ask a question. The first question is from the line of Abneesh from Nuvama Wealth. Please go ahead. Yeah, thanks. My first question is on McKinsey. You have engaged with McKinsey from a longer time frame in terms of way forward. I do understand these are initial days. I think it will be quite helpful if you can share what are the initial suggestion areas of improvement, focus areas. You did discuss the seven-point agenda. A lot of these seven-point agenda, I think every FMCG company anyway has. Anything specific if you can highlight from a growth expectation from a portfolio transformation perspective and FY 2026 key focus area, what can be those? Given the base is very favorable. Yeah, so Abneesh we've done an elaborate exercise with McKinsey. They've actually gone through all the fine print and all the analysis. The seven points that I mentioned in my address is what broadly that they talked about. The ones which stand out is that we shall weed and feed our portfolio, and portfolio rationalization will happen. A clear exit path for some of the categories which have been non-performers have been identified to release capital, which is what I mentioned. The categories that we will get out from is tea category, it has baby diaper category, the sanitizing category which actually happened, and the Vita category. We will get out of these categories and focus on big, bold equities which we've identified and core portfolio with where we will invest. That is one theme which actually comes out. The second big theme is premiumization and contemporization across the portfolio. If you look at past four to five years, we've generally focused on increasing market share and consolidating our business need of the categories. Premiumization has less been focused. It was a deliberate attempt because we wanted to bring back Dabur Amla, back on growth path, gain market shares. Now that we've done all the gain market shares in Chyawanprash and Honey and Amla and home c are and skin care, now it's a 2.0 journey to embark on premiumization and contemporization. We have identified segments that we will enter for premiumization. Like in haircare, we always focused on gaining market share in Dabur Amla. Going forward, you will see a concerted effort on premiumization of post-bath categories like serums, conditioners, masks, etc. We will focus investment there. Shampoo, alpha ingredients in oral care, plugging white caps, soft whitening, sensitivity, etc. On beverages, invest money on the active portfolio, which will have a halo effect on the entire beverage portfolio because each of these subcategories of nectars, pure juices, and drinks are anchored around the Real brand. We will communicate on zero sugar and no preservative range of beverages, which will have a halo effect on the entire range. Healthcare like Chyawanprash, Honey, Glucose, we will be getting the modern formats which resonate with the new consumers like gummies, powders, and effervescent, etc. You may be right to say it's quite what we attempted in the past, but I think this is the way forward going. Apart from this, M&A is what we will aggressively pursue too. We are two-pronged M&A strategy from our point of view. One will be a revenue equilibrium to us, which will substantially add to the revenue of the company because growth in GT is a little subdued. That is one. The second will be creating a future-fit portfolio which resonates with the new generation. That is what we are looking at. The fourth one is some bigger hold-up bets to be identified in healthcare and to invest behind that, like Shilajit, like health juices, and Hajmola. That is what one will do. That is on the portfolio piece. On the GTM piece, we are wanting to get into increasing ROI to distributor. That is why we rationalized our inventory last year. Apart from that, we will get into stockist consolidation, especially in metros and mini metros, and double down on distribution expansion and extraction in class three, class four, and rural India. That is what we will do. This will happen by way of digitization across the GTM activity to bring in more transparency and consolidation in the GTM. To get cost takeout to invest in our brands, we will be embarking on cost optimization exercise like Samriddhi, which also we did, but there will be a renewed focus behind it. Pretty much this. Thanks. One quick follow-up there. In Q4, almost every FMCG company on FY 2026 demand outlook is sounding reasonably optimistic given softer food inflation, tax rate cut, and interest rate cut, and good monsoons, etc. Companies which are giving guidance are talking about mid to high single-digit kind of volume growth. It may not start with Q1, but that is a full year number they are looking at. In your case, what is the confidence level and what kind of number for India business you think is possible given base is very favorable? Yeah, at least we are seeing green shoots in the business. I think food inflation is kind of moderating, and we are seeing a 2%-2.5% of food inflation. To your point, 20 tax cuts have happened. Urban consumers should have more money in their hands to be now used in the discretionary. We will keep working on our GTM activity. Going forward, sequential improvement is what we are seeing, but it is a gradual sequential improvement. We are not saying that quarter one, and we are sitting on a very high basis for quarter one. The highest base, we had a 9% odd growth in quarter one last year. I think quarter one and then quarter two and quarter three, and I think sequentially we will keep getting better because urban rural is already growing much ahead of urban. Urban green shoots will also come in gradually and slowly. I think sequential recovery is what we are also seeing. We should also end the year with high single-digit, if not double-digit or near double-digit kind of a growth for the full year. That is the guidance that we can give looking at the macroeconomic situation at the moment. Okay, so high single to double-digit for the full year volumes. Yes. Yes. Sure, sure. Value growth. Sure, sure. Last question on your fruit juice business, Campa Cola, I think for every beverage has been a big disruption. Initial days, this year they are aggressive on IPL, putting big factory, INR 1,000 crore in Bihar, and some also reasonable size factory. Now, Tata Consumer has increased the trade commissions in their part of NourishCo business, and they are seeing good recovery post that. If you could discuss on trade commission, what is the initiative you need to do or already have done? FY 2026 on fruit juice business, how do you see that part of the business? Here also, high single-digit volume growth possible or value growth? As far as commissions are concerned, we have not changed any general margins. We have not changed any general margins other than out-of-home portfolio where we have kind of increased our general margins a little bit to compete with this Campa and the Cola war which is being played out. For our out-of-home portfolio, we have increased the margins slightly. What is the growth expectation FY 2026 in this part? Growth expectations actually low to mid single-digit as far as this foods, our beverage portfolio is concerned. Sure, thanks. That's all from my side. Thank you. Thank you. Participants, you may press star and one to ask a question. Next question is from the line of Prakash Kapadia from Spark PMS. Please go ahead. Yeah, thanks for the opportunity. A couple of questions from my end. We've seen a slowdown across most of the categories. Can you help us understand, Mohit, the rural and urban side of the current slowdown which we are seeing? Historically, what we observed earlier cycles, we had a diversified portfolio. That helped us navigate some of the challenges whenever there was a slowdown. Currently, what is hitting us hard? You did mention we would want to increase premiumization and try and do some M&A. Directionally, how are we thinking? Is it going to focus more on the healthcare segment? That is where our leadership would be. Would M&A and premiumization be in that specific segment? Is it younger generation which don't have such habits to some of the products in the healthcare segment? How are we thinking? Is GT channel inventory issues over? We've rationalized some of the inventory in earlier quarters. Is the base now favorable? How are we looking at modern trade, quick commerce, e-commerce, GT? Is the distribution setup now fine? Some thoughts will be very helpful. Right. Prakash, a lot of questions. The first, I'll take your diversification question. I think last quarter was a tough quarter in terms of all the three divisions. Now, I'll take it one by one. One, beverage business was impacted by competitive intensity and season not favoring us. Plus, what we've done is usually what we do is in last year, if you see there's a learning coming from last year, we load before the season which comes in in anticipation of a good season. The stock gets into the market with the stockists, and then the tertiaries and the secondaries happen. This time, we've done less of loading. Around INR 50-60 crore of loading has been less in the season. That's why you see an impact of primary. That's why you see tertiaries and market shares actually moving up because secondaries haven't suffered. It's basically primary, which is what you see in the food and beverage business for us. Number two is the healthcare business. Healthcare business had a problem of the season because I was telling you winter season was truncated and delayed. Therefore, Chyawanprash and honey, both these two pillars of ours were actually impacted. Going forward, now honey is getting into a lower base. We had some crystallization problems also, which is also behind us now. We are seeing good market share gains in honey going forward. That is also sorted in my view. We are embarking on an all-season campaign for Chyawanprash. Hopefully, that should address the issues of healthcare. Our Glucose has done well with a 10%-11% growth. That's one. As far as the HPC business is concerned, we were navigating high bases in HPC. Now, that is why HPC got impacted. We had a growth of around 22%-23% in oral care. And then other businesses also, like in automotive, we had a base of around 20%-25% growth in last year, same quarter. So base effects played out in our HPC portfolio. That is why HPC has not. While I look at the primary, primary is down by around 3% or so, but the secondary has done well, increased by around 5% there. I think business fundamentals in terms of secondary and HPC is okay. This is a base effect came in. That is on the portfolio piece. If you look at the urban and rural, our rural and tertiary is growing by around 13%-14%. That is what Nielsen tells us for the quarter four data. The business fundamentals are fine. We are growing by 14%. Urban is what is flat, which is there with the category. It's in line with the category. Overall, we are growing ahead of the category. What happened is we have kind of rationalized some sort of schemes. I think we've not given the schemes because we did not load. Because we did not load, we did not give extra credit. We did not give extra schemes because of which the little bit of inventory and the wholesale has, I think, gone down. STRs have gone down. Because of those STRs going down, our offtakes are very resilient and doing well. I think it's a little bit of we never wanted to increase the inventory. We corrected the inventory from 30 days to 41 days. Had we loaded once again, then there was no point of doing any kind of inventory correction. We would have gone back to around the same level of unhygienic inventory. We did not do that. Therefore, for long-term sustainable good health of the company, we have actually not loaded and not given schemes. That is why you see the HPC business is a little lower. Therefore, wholesale, which feeds rural. For us, rural decline is more than urban decline in the first quarter. In tertiary sales, Nielsen says rural is still firing, and there is no problem in terms of offtake. I hope I have been able to give you a little bit of color on why all the three divisions did not do well. That is as well the. And. Now, coming to the. Yeah. Sorry, you were saying something, Mohit. Yeah, please. Anyway, what I was trying to understand about the premiumization and M&A piece, you hinted that as being a key. Welcome to those questions. Yes, I hear you. Welcome to those questions. The second question you asked me is premiumization. Premiumization, as I was telling you, is a lever that Dabur hasn't really consciously attempted because we were a little rural. Fewer urban. Now we'll be embarking on premiumization across all the three verticals of the company. In food, we already have active range. We'll be doubling down on active range with functional benefits like slimming, gut health, etc. Our healthcare portfolio of juices is already doing very well. That is what we'll double down on as far as the beverage business is concerned. Homemade, etc., that is doing well. Our premium portfolio is doing well there. Our cold-press juices and ghee and fats and oils is already growing by around 30%. That also we will kind of double down on F&B. Now, in the personal care, Amla should move into premium categories. In home care, we're already into premium portfolio. In skin care also, we'll do premiumization. In healthcare, we'll get into modern formats of existing brands. If it is honey, we'll get into a honey powder. What scale we will get out of this premiumization, I think if I was to hazard a guess, it will be more from personal care that we will gain on premiumization. Healthcare initiatives we have done, but we'll keep attempting those premium healthcare initiatives. Coming to M&A, M&A should come and bolster our initiatives of premiumization. If there is a brand acquisition, a premium brand in healthcare wellness space, we will acquire that. This wellness extends from healthcare to foods also. Wellness foods, wellness healthcare is what we should attempt to get a brand in an inorganic way. In personal care, it should be more organic initiatives. This is where we are, yes. As far as third question, we are on the GT. In GT, we are looking at consolidation of stockists in urban India. Reducing cost to serve, increasing fan of control, increasing digitization in urban India, and rural expand on villages, expand on direct reach, and focusing on the INR 10, INR 20 bundle pack which can ride on a rural go-to-market infrastructure. This is what we are embarking on the GT piece. Understood. Understood. Clear on this. Thank you. All the best. Thank you. Thank you, Prakash. Participants, you may press star and one to ask the question. Next question is from the line of Kunal Vora from BNP Paribas. Please go ahead. Yeah. Thanks for the opportunity. Firstly, you mentioned various initiatives to premiumize, make your products more relevant and future-fit. What is the time frame you are looking at? Would this require investment in the medium term? Would this result in any kind of margin dips? Yeah. Kunal, we are setting up a cadence of looking at monitoring of the strategy that McKinsey has recommended. The journey should begin as we speak from this quarter onwards. Exact timelines, as we are still working on it, the exercise we just finished. I can't give you right now, but we'll start from current year onwards itself. Even the GTM rekindlement should start from the current year itself is what we'll be looking at. Immediately, we will start working on the vision exercise that we've created for vision selling. Especially on the GTM? No, there will not be. We aspire to grow double-digit or near single-digit value growth and also increase our operating margins. Investments will be diverted towards the new initiatives which will come under our core brand itself. That is how we are seeing those initiatives. It is more modernization of formats and not really creating mega new brands which will require separate investments. Also, just to add on this premiumization margin, there will be specific guardrails where every new product launch will have to have an accurate margin to the core product of it. Therefore, it has to have overall, it will lift the overall gross margin profile. Understood. Thank you. Second is, if you can help me understand the longer-term trends in two of your key categories. In healthcare, sales are at the same level as they were in FY 2021. In beverages, you had a very strong FY 2021 to FY 2023 in which sales almost doubled. After that, it went down. If you can help me understand whether the worst is behind, what exactly went wrong in these two categories in the last couple of years? Yeah. I think in healthcare, if you look at the CAGR, CAGR of healthcare are in the range of around 7% and 7-8%. That's what we want to sustain, the CAGR during the past prior to four years. I think it was COVID which actually surged the entire healthcare. After that, we've seen the penetration levels of key brand categories like Chyawanprash and Honey have come down. We are taking initiatives to reduce the sizes and therefore resonating the brand, reducing the price level so that the penetration should increase, embark on new campaigns of all seasons. All those initiatives are being taken. Honey, new variants are coming in for premiumization and powders, etc. We will launch at the bottom of the pyramid sort of market. On back of this, we want to get back on the growth path. In beverage business, our CAGR is again 10% plus levels. There, we've already got a portfolio. The infrastructure is being set. To Rehan's point, we want to go back on the path to make our Koolerz pack of INR 10, INR 20, PET bottles, now coconut water available in rural India and drive the active range for urban India and go back to the path of growth and recovery on beverages. We have also corrected our RPI as compared to the Colas. RPI, related price index, which went up from 2.2 to 2.7, we are bringing it down to INR 99 point. We just introduced a new range, and that's doing reasonably well in the marketplace. Understood. Thank you. Lastly, you mentioned the target to grow at high single-digit volumes. That will require some categories growing even faster, maybe even double digits. Which are the categories in which you're confident that the growth could be even higher compared to high single digits? We talked about high single-digit value growth, looking at the situation of the macro and the category performances there. Within that, I think we are more confident about HPC as we speak, home care, skin care, oral care. We are more confident of these categories. We are on a path of doing corrections in beverages and healthcare. Understood. That's it from me. Thank you. Thank you. Thank you. Next question is from the line of Harit Kapoor from Investec. Please go ahead. Hi, good evening. I had a few questions on the stand-alone business, India business. There is a sharp kind of 250 basis points GM contraction. Do we attribute this largely to mix? Because it does not seem like there has been massive inflation in your portfolio, and this has dropped off from Q3 to Q4. There is obviously some seasonality in the quarters. I just wanted to understand what has been the reason. Is it purely mix? How do we think about this going forward? Is this a gradual buildup, or how do we see it? Yes. I think you see almost 240 basis points of contraction in our stand-alone in quarter four. Inflation is the highest in this quarter in this year. Almost 80% of the inflation of the year has come in this quarter itself, which has impacted this almost 250 basis points itself. Most of the price increases we took, they were by and large negated by certain trade promotion intensities, and hence the gross margin got impacted. Okay. I think to retrace this point, I think it's all inflation linked and not mixed. I think it's inflation, which is a key issue. We had an inflation of around 4.5%-5%, and price increase was to an extent of 3.5%. Because of competitive intensity, we could not take the full inflation into the price increase. That is why this GM contraction of 247 basis points that you see. Going into quarter one, we should see a 4%-5% type of pricing. Is that what you're kind of hinting at? Yes. Already, we've increased the prices by around 3.5%-4%. That flow-through will happen in quarter one also. How much of that, Mohit, was in quarter four? What would have been your weighted average pricing in quarter four? 2%, 1.5%? What would have been that number? We have taken a price increase of around 4.5%-5% in healthcare. In personal care, which is a very competitive category, our price increase is in the range of around 1.5%. In beverages, our price increase is again 1.6% broadly. Overall, it is around 3.5% sort of a price increase that we have taken in quarter four, which will flow through to quarter one. Got it. The second thing was on the premiumization journey. In Hair Oils, it's a bit of a dichotomy because on the others, there is also a competitive intensity at the bottom end of the pyramid. How do we kind of marry both these things? Will you and competition continue to have that aggression at the bottom of the pyramid and still try and populate the top end in haircare? As part of your premiumization agenda, how do I think about that segment? The premiumization, we've not embarked upon. Like in haircare especially, I think we were very busy consolidating our portfolio and trying to gain back market share that we lost to competition in Dabur Amla, especially because you had a competitor who was half at your price point. Now that we've got our strategy in place and we've gained all-time high market share of 19.1% from 14% around three years back, now we've got 19.1% market share. We will start on the journey of premiumization. Premiumization is more urban linked for us. e-commerce, quick commerce, all these channels actually help us to get onto the premiumization journey, which is fairly easy to do. As far as rural is concerned, INR 10, INR 20 price points, and INR 50 or INR 100 price points also in haircare just ride our rural infrastructure. There's not much of brand building that you need to do at the bottom of the pyramid. It is at the top of the pyramid that you need to do that, which we've not done it. Like I was telling you, serums, masks, conditioners, etc., that should come in and help our premiumization journey. I don't see both of them conflicting with each other at all. They are both water tight, almost compartment, and urban more so with e-commerce and modern trade playing very separately. As far as organization structure is also concerned, we have a separate organization for e-com, MT, and a separate organization structure for GT at the lower end. It is not at conflict with each other. One can embark on both the paths. At one end, consolidate at the bottom end of the pyramid, keep continuing gaining share, and embark on premiumization at the top end also. Understood. Last thing, just a clarification on one of the earlier questions. You said growth will gradually improve. Do you expect exit rates to be high single-digit revenue growth, or you said for the full year it will be high single-digit or double-digit type of high single-digit type of revenue growth? I did not quite understand. I'm talking about average of the full year, but it's a guess at the moment. All depends upon how the categories are behaving and how the macros are performing. If I go by the macros now, with MSP increases and with the MGNREGA outlay going up by 40% in rural India, rural India doing around 450 basis points ahead of urban India, and food inflation coming down and more money in the hands of the consumer not taking into account operations, Sindoor, I think everything looks like a green shoe today. How the political and the macroeconomic situation evolves, one has to see. I was talking about average of the full year when I was talking about high single. Okay. Thank you so much. Thank you. Thank you. Next question is from the line of Naveen Trivedi from Motilal Oswal. Please go ahead. Yeah. Good evening, everyone. My question is on the oral care performance. You did mention about the base effect impact on this quarter performance. If I look at this, even sequentially also, I would assume that sequentially it is down close to 70%-80% versus quarter three. Is the understanding right? Typically, this is not a category where the seasonality plays a big role. Any color on that part or any specific markets where we've seen this kind of impact? I think oral care is in a very good state as far as we are concerned. All the four or five vectors of oral care brands are doing well. Dabur Red continues to do well for us. Our market shares, our tertiaries, our secondaries, all are moving up as far as oral care is concerned. We got IDA certification also now. The endorsement by doctors has also started. Our no fluoride campaign also kind of resonated very well with the consumers. We won a court case also in oral care. We are continuing to advertising. I think all guns blazing as far as oral care is concerned. We are betting our bets on oral care going forward also. Dabur Red, this year, this quarter was an anomaly because of the high base effect of 22% is what I said. That is the only reason that I see. Dabur Red is doing well. Swag has grown by around 10%-11%. Dabur herbal toothpaste continues to do well. South India, we are planning to take it in modern trade. The herbal category has got a tailwind, which is at around 31%, which last year was 30%. That is growing at double the rate of the non-herbal category. I think everything is very favorable as far as oral care is concerned for us. Is the understanding right where we have seen sequentially down 70-80% this segment revenue? No, no. We are not down sequentially 70-80%. Not 70-80%. I think it's 10-12% down. Hello? No, no. I think you will see a year-on-year trend. That is how this has to be seen because there is some loading impact of the other categories. Of course, this category is a little subdued in quarter four. I think it is a year-on-year that you should be looking at rather than sequential. Sequential, our market share continued to move up. We have gained around 15-16 basis points in market share in the current quarter also. Yes. That's all from my side. Thanks. Thank you. Thank you. Next question is from the line of Sindhu Jha from Healthcare Advisor. Sindhu Jha? Sindhu Jha, if you can hear us, kindly go ahead with your question, please. Due to no response, we move on to the next participant. Next question is from the line of Akash from UTI Mutual Fund. Please go ahead. Yeah. Hi, sir. Am I audible? Hello? Yes, you are. Go ahead. Sure. Sir, thank you for the opportunity. Sir, during your opening remarks, I mean, during your response to one of the participants' questions, you said while streamlining the portfolio, we will exit some of the segments like, let's say, diaper or tea. I could not hear that completely. Will you please repeat what are the product categories which going forward we will not be focusing on? We mentioned a few examples of the categories. One was tea. Other is baby diapers. And other is Vita, MFD category. Now, these have been margin dilutive for us. That is why we are planning to exit with a limited right to win and also breakfast series. These are the three, four categories that we are planning to get out of. Sir, how much would these products contribute revenue? It would be sort of low single digit? Less than 1% of the overall revenue. Okay. Okay. Sure. Sure, sir. Thank you. Thank you. Thank you. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Senthil from iThought PMS. Please go ahead. Good evening, sir. Thanks for the opportunity. First question is on one of the strategy drivers that you mentioned, please. Can I request you to speak a little louder, please? Is it audible now? Little better. Go ahead. Yeah. Sir, one of your drivers for the strategy point, you mentioned about contemporarily seeing the category. Particularly with respect to the healthcare vertical, if you can throw some insight into how we are pitching the products on the healthcare side to the millennials or Gen Zs. That is my first question. Yeah. In healthcare, one of the key brands for healthcare for us are Chyawanprash. Chyawanprash, we have premiumized in the past and will continue the journey with Ra tanp rash, with Kesarp rash, with Khajurp rash, etc., that we have premiumized. We will be launching modern formats like gummies, powders, etc., which is more targeted towards the new generation. In honey, we have extended ourselves into organic honey and single ingredient honeys, single floral honeys. That is how we will contemporize. Squeezy, we extended ourselves into, which is more amenable to breakfast consumption, so which is also a contemporary format. Also, we will be targeting new target audiences like geriatric, gym goers, etc., with our healthcare portfolio. Okay. In the last analyst team, we were said that you mentioned there is an incremental focus on the therapeutic side. If you can share what has been the development on that side? Therapeutics business continues to be as it is. We've done some organizational changes. Mr. Philipe Haydon has took our hand and waited, and this new gentleman has actually joined instead of Philipe. The focus on advocacy vertical to promote Ayurveda to the modern doctors will continue. The turnover will be taken from INR 100 crore to INR 200 crore. That journey will happen. We are addressing around 100,000 medical practitioners with this vertical. That journey will go on. We will try to do better extraction with better efficiency in that vertical. That initiative will be continued going forward. Okay. Just a last question. Again, coming on the inorganic side, you mentioned about we'll be focusing on the wellness side, foods, and healthcare. Having the heritage from the Ayurvedic side healthcare, going organic will be much better? If you can share some strategy bits on here. Yeah. Here or there, we have organic brands. I think all these organic brands like Chyawanprash, honey, Hajmola, Shilajit, etc., they are, the modernization journey will be all organic because these are our core brands. We will continue to extend them into modern formats organically. If there is a new brand or a new category to be addressed, that is where M&A comes in and supplements our efforts of organic business with inorganic business. That is what one will do. Okay. Thank you. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Manush Trivedi from SP Securities. Please go ahead. Thanks for the opportunity. My question is regarding Dabur's current compliance rate on EPR regulation in terms of use of recycled material in their flexible and hard packaging of plastic products. My query is that, I mean, on the back of that, we know that industry has made a presentation to the ministry and the government and approached them to delay or give some more time to the industry. The fact of the matter is that the ministry or the government has not made any official statement on this post the presentation. At this point of time, what is the view of the industry as well as Dabur? Where does Dabur stand in terms of compliance, in terms of flexible and hard plastic packaging? See, as far as Dabur is concerned, we are recycling more than 100%. We are actually a plastic positive company. In a sense, we are recycling more of plastic than what we are consuming ourselves. We do not have any credits for plastic in India, unlike a carbon credit in the international market. Otherwise, we are ensuring our EPR compliance more than what is actually adequate. Around 40,000. No, I think you got me wrong. My question is that use of recycled material in the plastic packaging for flexibility is 10%. And for hard, it is, I think, 30% from 1st April 2025. I actually asked the question regarding that compliance. No, I got you. Now I got you. As far as recycled plastics is concerned, our use of recycled plastic is fairly limited, like all other players in the industry. Therefore, we have represented to the government also on the same because the recycled plastic today is more dearer in the market as compared to the regular plastic. Moreover, we are a healthcare company. In a healthcare company where 50%-60% of the portfolio is coming from wellness foods and they are coming from healthcare, we are very reluctant to use recycled plastic in food products and also in our Ayurvedic products. Like in the pharmaceutical industry, you do not use recycled plastic. We are reluctant. As far as personal care is concerned, yes, with the 50% of the portfolio, we can use recycled plastic. That is today dearer than the existing packaging material and will have an implication on the gross margins and the operating profit of the company. That is why the representation has happened to the government because the demand of recycled plastic is higher than the supply. As the industry grows of recycled plastic, I think the cost of producing recycled will be cheaper, and then we'll be able to do it. Our stand to the government is to give us more time till the time the recycled material becomes a little more cheaper and capacities go up in the industry. Yeah. I hope I could answer your question. What I understood, if you can confirm, is that currently, Dabur is not planning to be compliant with that because government has not withdrawn the regulation. I believe that that regulation is pretty much in force. We are already, yes, we are already utilizing recycled plastic in our packaging material, but it is still limited because the capacity is not available. Which is what the entire industry has also represented to the government, saying that because the capacity is limited, nobody is able to meet the 30% requirement which has come in. Which is why even the rule is in advance, right? It's not been announced yet. If the government was to mandate the use of, if the government was to mandate the use of the recycled, then we will have no option but to use it. Today, the capacity is limited, and it's difficult for us to do it. It's more cost-expensive in terms of cost, pretty expensive. Are we planning to pass it on to the end consumer at the end of the day? If the government mandates it, we have no other option but to pass it to the consumer, and we will be using it. Yeah. Thank you. All the best. Thank you. Thank you. Participants, you may press star and one to ask the question. Next question is from the line of Anurag Dayal from Philip Capital. Please go ahead. Yeah. Hi. Thank you for the question, sir. I just wanted to get a little more insight on the beverage segment. Anurag, your audio is not clear. Just a second. Sorry. Hello? Is it better now? Yes. Yes. Go ahead. Yes. Yeah. Basically, the question is on beverages. Now, we're sitting on a favorable base. We have done a lot of actions in terms of INR 10, INR 20 price point packs, expanding in rural. Since 70% of, as I understand, the saliency of beverages is in urban, and then we expect the urban market to recover eventually this year. Still, we are a little conservative on low to mid- single digits growth expectation. What could happen, basically, that we can get back to double-digit growth here? What all actions are required from our side? If the competitive intensity is going to be low, what's your view on that? Yeah. See, as I was telling you, that we have a CAGR of almost double digits as far as beverages are concerned. It is going through a cyclical storm, as the imperfect storm happening with competition density going up. We are making all our efforts in terms of GPM, also the portfolio we have already done. I think the efforts are on as far as the go-to-market is concerned and the price points are concerned. That is what we are trying to now fix for us. What we are doing is that we have a two-way down with exclusive distribution of beverages. That is continuing to do well. For rural and semi-urban markets also, we are opening up all the beverages to our existing rural distributors also because we got affordable price points there. That is what. Also, we fixed the price of around INR 99 and INR 100. That said, it's a wait-and-watch situation to see if there's any gradual ramp-up. These distribution initiatives are taking time in the market. That's why a little defensive sort of growth aspiration on it. We are not leaving any stone unturned. Like coconut water, which is coming under the active range, that is firing. Our Hajmola Zeera is actually doing pretty well. Our Koolerz is still not performing. Our active range is also performing very well. Our Koolerz and the nectar range is something that we have to still correct and execute well in the marketplace. That's why. It's a slow gradual recovery, which is happening in beverages. Okay. Yes, sir. Another question is on Odomos. You mentioned there were some seasonality impacts, as I understand. Especially in the HI portfolio, the market leader said that the season was very favorable for them. Could you explain to us where is the seasonality which came for us? I mean, due to product-specific issue or how we define the seasonality, especially for Odomos? No, I think it's a seasonality. Plus, it's coupled with a high base. We had a very high base on Odomos last year also. We are navigating a high base. We look at the CAGR also. It will be in the range of around 8%-10% for us. That's fine. Also, seasonality, sometimes for us, at least, we did not see the mosquito season pan out as much as what it was last year. Relative, it has been low. I think it's gradually, slowly catching up. Okay. Thank you, sir. That's for my side. We have got a market share increase of around more than 386 basis points on Odomos. From a market standpoint, we are pretty much okay. Okay. Thank you, sir. Thank you. Thank you. Thank you very much. As there are no further questions, I would now like to hand the conference to Ms. Isha Lamba for closing comments. Thank you, everyone, for joining the call. The webcast and transcript will be available on our website. Thank you, and have a great evening ahead. Thank you very much. On behalf of Dabur India Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines. Thank you.