Just one follow-up to one of the participant's question on market share with respect to Nielsen data. So what I understand Sudhir, you mentioned that Nielsen doesn't capture the e-commerce market share. And I believe for all companies, the e -commerce growth has been the fastest in the last many quarters. Is there a means to start capturing the e-commerce market share also over time? I mean how is the company thinking about it on this aspect?
So are we already doing something?
Thanks for taking my question. Just a follow up to one of the questions earlier, Investor Relations - investor.relations@pidilite.co.in CIN: L24100MH1969PLC014336 Mr. Puri, where you mentioned that for lot of your categories you need to really train the people to understand the category and that's why this distribution expansion will continue for a long period of time. From your overall portfolio, will you be able to call out what is the competitive landscape for you because it feels like that there is limited competition in most of your categories? I mean, how will you define the competitive landscape for your categories?
Mr. Puri, will you be able to quantify this because in your category it's possible that you would want competition to enter but it's not the case. I mean, most of the companies would not like competition.
Actually, I was very intrigued with the comment, which Mr. Puri made about operating in 37 verticals. And then obviously, you gave the details around the categories. And the question I have is, seeing the success in terms of so many categories we have done over the years, what are the key synergies you see when you think of getting into different spaces or categories or even into adjacencies? And what according to you is the biggest challenge when we are managing so many categories?
And anything around the challenges which we face because I am sure there would be some?
My first question was with respect to the Beauty & Wellbeing margins. For last few quarters, we have been seeing a decelerating trend. So just wanted to understand -- and I understand that we are making investments here, but just wanted to understand where the margins should stabilize? 38/40
Understood. My second question was on Minimalist. I think it's a very interesting acquisition, and it ticks the boxes on a lot of things. It's a sizable business, online business, even profitable business. My question here is, at the CMD, we had called out that we'll be making disproportionate investments in the Beauty & Wellbeing category? Is this going to be a continuous thing that is we will look for more synergistic investments going ahead? Or we'll wait for some more time for this particular business scales up and then we look for more opportunity?
My first question was -- you talked about a gradual rural recovery. And let's assume that after the winter crop, there is a rural recovery. So, the question here is that which part of the portfolio do you see will see the accelerated growth because Ritesh talked about we're already seeing mid -single-digit volume growth in the Home Care as well as the BPC business.
Understood. The bigger problem at hand is the rural slowdown and not the competitive landscape. Is it a fair assessment to make here?
My first question was probably continue to the previous question with the Paints division. Now you just mentioned that the demand conditions are not as bad as it's been called out. If you could just elaborate more in terms of how it's working in favor for you when you're adding distribution at this point of time? And if there is more color you can add in terms of why you're saying the demand conditions are not as bad.
Very clear. Just a follow -up to that. The competitive intensity for sure has gone up from the existing players. Is there anything you are witnessing from your end, which is making you make changes to your strategy going ahead? And my second question is also connected to that, is that as we have all our capacity on board by the end of this year, this calendar year, what will be the focus area? I'm not asking for numbers here, but from brand building, distribution building. Where would we want to be ahead in the next 6 months in terms of focus area?
Sir, as we are 1 month into 3Q, I just wanted to understand the trends we are seeing with respect to demand, primary or secondary trend?
Sure. The second question was with respect to the e-commerce growth. What was the growth rate this quarter? And where is the mix now for e-commerce?
Thank you for giving this idea that there are green shoots emerging, secondary and tertiary doing better than primary, premium doing better. So, just wanted to understand, if there are any specific markets where we are seeing these green shoots emerging. Is it the metro cities or the smaller towns, so if you could give more details around that, that will be very helpful.
Understood. So, Karthik just a follow up here, is there a change versus what we have been observing for the last four to six quarters?
My first question was with respect to the salience of online sales has been strong this quarter at 30%. Is it fair to say that we were under -indexed on the online side, and that's why the growth number seems to be stronger on online vs. off-line? And are there any particular categories which are actually doing well for us on the online side of things? If you could give us some more idea as to what's happening there?
How should we think about you in general the growth road map for the overall business, will the online be a much superior growth business for us going ahead. What I mean to say is that in the next five years, should we think that online will be 20% of revenues or something versus where we are today?
Sir, first question was actually just in connection to the previous question. So, what was the key reason for the EBIT margin improvement for CaratLane this quarter? And should we expect the trend to continue to improve?
And second, Ajoy, for you, historically, you have guided us in terms of what the gold exchange for Tanishq jewellery as well as non-Tanishq jewellery has been. So, if you could update us on that number for this quarter and additionally, if you can tell us if there is a similar number which we have with respect to diamond exchange and if we have that number for this q uarter, it will be very helpful?
Just extending to the previous participant's question, as we're opening more L2, L3 stores right now, is it fair to believe that the payback period, including the working capital, would have improved in a positive manner in the recent years and if you coul d remind us what that would be?
Understood. And Ajoy, again, a second question on the Jewellery business only. Just to get a better perspective on the demand conditions right now, especially you said that January seems to be better than where we were in December. Now when we look at the gold prices, they have not really come down. They are at the same levels broadly versus where they were -- where they ended in December. So is it fair to say that -- I mean, is it one of these three that either the customer has accepted this high gold price and is coming back to the stores or the customers are very excited about the upcoming wedding season and they're coming back to the store? Or is it that we are making necessary investments like we did in the previous quarters in terms of getting the customer back to the stores and it is much higher than where we were earlier?
Yes. So my first question was with respect to the comment on the new and repeat buyer ratio. What I understand is last 2 quarters, the repeat buyer ratio is on the higher side versus new buyer ratio. So Ajoy, the question is what do you prefer, I mean, in terms of how do you want this ratio to look like from a medium-term perspective? Because I would understand that new buyer means you have a higher customer growth, whereas repeat would result in higher bill value growth. But ideally, what is the balance you would like to maintain or how should we look at these numbers when you share these numbers?
Understood. And Aj oy, you mentioned about how the repeat customer in a Tanishq store over 3 to 4 years spends INR 150,000 to INR 200,000 versus the first -time purchase, which is less than INR 75,000. How does the repeat behavior in CaratLane or Mia pan out in terms of the spends?
Thanks for the update on how you think about the recovery. Just one question. Going into the second half, which part of the portfolio you think that can surprise positively? Because from beverage portfolio point o f view, Gluco Plus, you said, NourishCo. But we're getting into a season which will be more on the cooler side, so probably there could be some -- and then we have tea inflation and volumes have been dipping. So how should we think about the growth outlook going into the second half? And obviously, there is a wall of worry to climb, but still, how are you positioning yourself?
Sunil, if you could guide us how large would be Tata Copper for us now?
My first question, again, was on coffee business. So, Sunil, if you would like to call out what kind of distribution i nnovation plan, we have with respect to taking up our coffee branded business higher from where we are today? Sunil D’Souza: So let me say, we've got significant opportunity ou t there. I'll point back to one of the reasons why now we have done a split rout es at the front end, is primarily because that was becoming the blockage for us to expand our portfolio and expand different SKUs. Coffee did grow 29% for the year and 45% for the quarter, but I think we're still scratching the surface. We've still got a significant amo unt of runway out there. This year, that remains a focus, especially with, a, the innovation s that we have planned; b, the amount of media spend that we are putt ing behind it; and c, between the enabling infrastructure that has been put into place.
And what kind of distribution the coffee business would have currently versus say our tea business? And if there is any difference here in terms of B2B or B2C strategy? Sunil D’Souza: So, it's primarily a B2C strategy. We are significantly be hind. I think we've got still a way to go. In the southern markets is where we had initially focused. There, the gaps are -- they're still large, but relatively sma ller compared to the rest of the country. We've still got -- we're not there by a mile.
My first question was again with respect to the growth businesses. If I see from FY22 to FY24 we have almost doubled the share of growth businesses from 10% to 18% now. So, Sunil should we see a similar trajectory to play out say in the next 2 years that the share of these businesses could be circa 40% or say 50% in the next 3 years. Sunil D’Souza: So, fundamentally we've said Tata Consumer will deliver double digit growth and EBITDA ahead of that double digit growth. So, if I peel back, if I take my base categories of tea and salt we've always said mid-single digit volume and a few basis points on that of price which will not get me to the double digit growth and therefore the growth businesses have to be delivering substantially more than the base businesses. All I can say is I think we've made our aspirations for this year at least very clear with Sampan n 900 to 1000 crores, for NourishCo we've already said the aspirational target for this year is 1000 crores and we do seem to be on track to deliver that. Soulfull is on a very strong trajectory. We are moving from now breakfast into the larger snacking occasions which should deliver us more. So yes, the short answer to your question is I think you will see substantially faster growth in the growth businesses compared to our base business.
And the second part to the same question is how we should think about the growth businesses in terms of, you talked about tea, we are more on the mass and mass premium side, mid premium side. How would you categorize your growth businesses? Will it be mid -premium or will there be a share of mass in this growth business also because we are also doing pulses? Sunil D’Souza: Sheela, I would split the businesses and talk about it. If I talk about Soulfu ll I would say it is mass premium to premium. If I talk about NourishCo, it is more I would say 90% mass and 10% premium. Because we do have Himalayan out there. We've launched Himalayan Saffron. We've launched Ready to Drink Coffee which is again premium this thing. But as a percentage of the mix, it will be relatively smaller. Sampan n largely would be a mass. But again , I would put a fine rider out there. In whichever category we play , we do command a premium on the base portfolio. For example, our pulses would be roughly a 10 to 15% premium over every regional competitor if I may. Similarly , our spices would be benchmarked to the national players and more or less in that ballpark on the pricing. So , it depends by category it's where we've defined and even within that category it depends on who is the benchmark and what are we going for. The big play would be Sampan n. The big play would be the NourishCo mass. These would be probably like I said Sampann would be at 10% to 15% if you take pulses NourishCo would be in the mass pricing range.
My first question was, sir, if you could give some flavour on the market share which we have in Africa for the Beverages business, we understand South Africa, it's low single digit, but if you could remind us what is our market share across the markets we are present here?
Just a follow -up on the question asked earlier on working capital days. So you mentioned that this will be resolved in the next couple of months. Does that also mean for the consolidated changes also, which we are seeing because of BevCo? Because you know inventory days are higher, debtor days are higher as well as the receivable days are higher. So I just want to understand whether all this will improve in the coming months.
Yeah, thanks for taking my question. Hi, Neville. My first question was to do with your opening remarks, Neville, that since the second half of last year, we are seeing a smart recovery in the GMA portfolio. And you also said that we will maintain the current levels of 23% and not going back to 27%, 28%. Now, how should we understand this from going forward perspective, that where will these improvements get reflected in terms of the Company's P&L going ahead?
Actually, my question was not to do with the margins actually. My question was, GMA is coming back. The shares are maintained at 23% level. Will it get reflected in the top line growth then? I mean, how should we capture it apart from your commentary that GMA is coming back? Will there be a way to capture it? Because, like you're saying margins will be maintained. It will get more and more challenging for us to analyze that in terms of share.
Just a follow -on the margins question. Would it be fair to say that near term, there could be some negative impact coming on margins, given the RTM 2.0, which we would be initiating, which could have some upfront cost versus the cost savings, which we could have in future years? Second part of this is, the NPD sales number, is that correct that INR275 crores is the NPD number, which is about 2% of the overall sales. This, I would believe, is much lower than where we want it to be. And third is the focus around the adjacent portfolio. So how should we think of margins on that aspect, especially over the next 12 months or so?
Understood. And just a bookkeeping question. When you talked about the adjacent portfolio at 25%, where would dairy be right now? And where do you expect that to be, say, in the next 2 to 3 years?
Thank you for taking my question, just in continuity to the previous participant question. Is it fair to say that the urban growth is far better for us versus the rural growth on the basis of the comments you made that premium portfolio is doing well?
Understood. Just taking up on the distribution reach, Varun, if I look at Slide 8, and when I look the direct distribution reach, it feels like the pace of increase in distribution has slowed down about 5% on a year -on-year basis. Is there anything else to read on to it? Or are we building more distribution around our dairy business and that's why this number looks much lower?
So, my first question was with respect to your comment on the GT decline of low single digit. I just wanted to understand here, is it any specific category or specific market where we are seeing this decline? And what is our expectation in terms of the trend going ahead , especially in this quarter? Marico Information classification: Official
So, will it be fair to say that the GT growth is worse off in rural India versus the last quarter?