Sorry I'm getting a bit confused. So, can you give me exact inventory number on balance sheet as on 31st of December? V. Lakshmi Narayana: On finished goods it was 135 crores. Kashyap Javeri: And other inventory raw material as well as finished goods? V. Lakshmi Narayana Raw material we have almost around 400 crores at Group level. Moderator: Thank you very much. The next question is from the line of Amol Rao from Kitara Capital Private Limited. Please go ahead. Amol Rao: Sir just I mean couple of questions on the outward freight side now as the previous participant asked that we might incur some additional expenses for the freight for our CIF contracts. Does the export time also elongate. So, should that reflect a little bit in our receivables also because I want to take a longer route, right? Praveen Jaipuriar: So, it’s around 4 days or 5 days. It's not really needle changing yes, but there will be a little bit of a delay. So, 5 days of more delay if they go through the Cape of Good Hope that could impact a little bit, but these are little impacts we're not showing at a larger level things will change drastically for us. Amol Rao: And sir another question which is has a larger scope, there's no deferral of demand the demand remains intact it’s just meeting that demand that is taking little longer from our side? Praveen Jaipuriar: Yes there isn't any issue with the demand and the demand remains intact and it looks like there is in fact a more pent-up demand which is getting reflected in the coffee prices as well. So, we are not seeing any sort of issue with the demand side being more of our supply constraints that we had been internally otherwise demand is intact. Amol Rao: Sir, if I may just squeeze in one more question. So, the last time we spoke in December I mean you alluded to coffee prices being at 3-decade highs I mean what's the sense you're getting on the Vietnam crop, are the prices still elevated in anticipation of the poor rains or I mean anything you are seeing on that, anything that you could help us? Praveen Jaipuriar: So, in fact, this is the time we last for the coffee prices have gone up quite a bit. It is almost at an all time high and unexpectedly high because nobody expected these kinds of prices. So, yes there are two things. One is as we spoke earlier the demand remains robust. So, there is a huge demand of coffee which remains intact, but yes there are issues in terms of supplies because of probably poor output of the crop or at least there is a perception that there are poor output and there are fund guys playing into this. The coffee farmers are wanting to hold stocks because everybody is more of a upward trajectory mode. So, all that is leading to high coffee prices, future outlook all our outlook has gone wrong for the last 2 years. So, very difficult to predict which way it would turnaround. Probably it's a trigger to turn things around. But as of now in the short term we don't see any sort of price indication that which side it will go, looks like it will remain at these levels for some time. Amol Rao: And in the middle of all this chaos our business model remains intact that is we book the coffee back-to-back when we get? Praveen Jaipuriar: Yes there is no change in our business model. We kind of book back-to-back and we don't kind of buy coffee unless, until we have orders. Amol Rao: Sir on the expansion side are we on track with our expansion in India which is basically going to come in probably in October, November of this year? Praveen Jaipuriar: No India expansion is not in October or November it will be in March. So, that is that is on track. The Vietnam of expansion was July, September quarter that is also on track. So, we are on track for both the expansions. Moderator: Thank you very much. The next question is from the line of Shirish Pardeshi from Centrum Broking. Please go ahead. Shirish Pardeshi: I have a few questions you mentioned that 14% volume growth. Can you break that growth for India and Vietnam and the second question is that if you could talk something about India branded business and the institutional part of the business and modern trade so maybe segmental what kind of growth you have seen in demand? Praveen Jaipuriar: So, first of all answering your first question India volume growths impact be declined because if you remember last year we were doing third party buying and all that and also had to hit the deferment that happened at the end of the month. So, there was almost a 10 odd percent decline and Vietnam capacity is almost at a 40%, 50% upside because of the new capacity and the aggressive selling that we are doing. So, this is the breakup of these two segments. As far as India domestic business is concerned, India's domestic business for the 9 months we almost did run approximately 230 crores to 235 crores out of which the branded business itself is approximately 145 crores. If you remember for the last year we had done full year of 150 crores of branded mix and we were able to touch in 9 months projection wise this year we are we are looking to touch the 200 crores mark for the brand alone and 320 crores or so for the full domestic business. As far as channel growth I think most of the channels are growing at the same momentum the brands currently are on a 40%, 50% kind of a growth moment after a bit of correction in quarter 1, Quarter 2 and we are seeing this kind of momentum happening from all the channels both all GPMT as well as e-commerce. So, yes, it's been an all-around growth for us. Shirish Pardeshi: I think last time you mentioned that our touch points is somewhere around 1.2 lakh and 80% is residing in South. So, date as of December how it is planning out? Praveen Jaipuriar: Every quarter we kind of add around 2,000, 3000 outlets that we are continuing to do and we are now kind of last time we had given an update that we are now aggressively trying to expand in other parts of the geography beyond South. So, as of now today in almost all 10 lakh plus population town we have our distributors set up so that expansion we are taking and we are building on some of the other brands. So, in South we sell continental extra. We are building special in other parts of the country. So, all that is happening and it's an even all-around kind of growth happening. So, in the South we are trying to penetrate deeper. So, we are now probably touching almost all towns above 50,000 population. So, that's been our strategy go deeper in South and kind of expand to key geographies in north and key towns because in other parts of India coffee where we are doing phenomena so that that expansion is an ongoing process, and we are taking it now. Shirish Pardeshi: My second last question on the UK acquisition lock down, any update at this time which is you can quantify how it is panning out? Praveen Jaipuriar: In terms of numbers, in fact we know there was a period of changeover and which happens in any acquisition. So, from July onwards we started taking things on to us and then we started reworking on the product packaging and all the promotions with our UK partners and we took around 4 months, 5 months to kind of stitch everything together. We are now good to relaunch March end with our new packaging, new product and new strategy at all stores in the UK. So, this year numbers will not be much it will be approximately 15 crores or so, but then after March we launch, we'll be able to update that how the relaunch has been appreciated in the market going forward, but yes a lot of work happened during this interim time in terms of relaunching the whole proposition.
Questions across 1 call
Kashyap Javeri
Emkay Investment Managers Limited