My first question is on the cultural integration, frankly, and on the software integration and dealer integration, is it largely done? And any impact adverse you have seen till now because of these 3 aspects of the business because there is still some EBITDA margin…

Abneesh, could you repeat the question?

Am I not audible?

Abneesh, could you kind -- I think your early part of the question we missed, can you kindly repeat?

Sure, sure. I'll do that. I wanted to check on cultural integration, dealer integration and the systems and software integration. Is it done? And was there any adverse impact? Because when I see the P&L, the EBITDA margins are still down on a like-to -like basis, when I see Burger Paint results, there is a margin expansion, and we expect the same for Asian Paint also. Pidilite also saw that. So broadly these 3 targets will be in the broader home decor space. So if you could discuss these 3 aspects?

So thank you, Abneesh. Thank you for the question. First and foremost, on the culture integration, look, I think the teams have come together and now currently based out of Mumbai. So yes, the cultural integration, to my mind, so far, early days, is going well. On the second part, which is on the dealer integration, we've only integrated our projects business. Starting in Mumbai and then now in 7 metros in the later of this month, will be integrated teams selling both JSW Dulux and JSW Paints. As far as retail is concerned, that plan is envisaged only early next year because we want to keep the teams at this point of time separate because we have been selling both the brands separately. And also from a governance perspective, the 2 companies will run separately. So we are obviously watching it. On the back end, as all of you may have read, we've integrated the HR function to start with. So HR integration and Ritika Chopra has assumed the Head of HR for JSW Dulux. She's also heading the JSW Paint. So that's on the -- on where we are. On the EBITDA margin to -- and so dealers at this point of time are not impacted, Abneesh. As we said, we will be doing a few pilots in the next months to test various hypothesis. Remember the 2 business are 2 very distinct business ones. JSW Paints is a direct model like many parts in the industry, but we have to model. And I think we'll have -- we are working on looking at what are the strengths and weaknesses and before making a step. So that's why we need a bit of time. We are not rushing it. Projects was easy. Projects was a direct model, so it was easier to sort of shift into it. On the EBITDA margin, as I explained to you, there is -- as I said in the earlier part of the meeting, the price because of the price drops that we have taken in the quarter -- quarter 3 and quarter 4, September October, and a little in January because at that point of time, as you know, Abneesh crude was operating at a very different level. It was $70, right? So our message was to really say that, look, how do we get more competitive and really drive volume growth across our segments. So that is what has done it also because Dulux, as you are aware, a higher share of premium. So premium contribution to our ove rall business is in mid- 40s. And as a result, whereas the market premium contribution is 22, right? So obviously, there is going to be at the end play the other segments, which is where the others are very strong. There's going to be slight changes in the mix and which is what was anticipated and that's what's happened. And that is the shift. So that is why you see a bit of it. As I mentioned to you, some of this correction will be there in the coming quarters in the quarter ahead. But by September, this will all get neutralized between August and September, this will get neutralized because the impact will be very low. Yes. I hope I've answered your question, Abneesh.

Absolutely. My last question is on pricing. So your over -indexed in terms of premium at 40% versus 22% for industry. So if you could tell us now with the reduced prices in premium, are you at the market leader in premium? And in the mass end, clearly, there's a very big opportunity for you? Would you be at a now similar pricing with number 2 player Berger? Why I'm asking is the pricing is now very similar to B erger. And given this is an opportunity for you, would you operate at a lower pricing versus budget or a similar Berger.

So first part to your first part of question, we -- at premium levels in certain brands, we still have about a 2% sort of, which is the desired premiums for the sort of the brands have and that's one thing. On the mid-market, we are pretty much now almost equal to Berger. Of course, some of our competitors are operating higher discounts. That's something that we are cognizant of and higher inputs. But other than that, it's not benched, right? So I believe that, look, I think with this, we have -- as you rightly say, we got a stronger area to grow. And that's the reason why in some of these segments also, we've introduced or are making some reductio ns to make sure that we are competitive Abneesh.

So I just wanted to get a sense that we had this target of retail overall market share of somewhere about 8%. How is the ramp-up going on? And have you been able to be on track to achieve that?

Yes. So the 8% is a blended number between d ecorative and industrial. So let me start with we've discussed a lot in decorative and decorative, yes. But we are on the journey. We've got a way to go. I don't think it's a 1 -quarter journey because price actions will take a period of time for consumers to get the confidence that JSW Dulux, what we are now doing is sustainable. The challenge in the earlier tenure was because obviously, being a part of a global company, the EBITDA percent pressures were very high. So some of the actions were not sustained, and that was the feedback we got from our channel partners, etc. And hopefully, in this part of the journey, we have seen it. So that's to the first part on decorative. It will take a while. But yes, we are on the journey towards building consumer confidence. At least becoming a strong number 3 player to start with from 4 and then move the journey up. On industrials, very clearly, we are gaining traction. Automotive and Specialty Coatings, there are tie-ups with some of the marquee OEMs, etc., We do not have a play, as you know, in Auto OEM space. That's a technology that we are working on. In the past, the global parent not bothered about it, but with new ownership, we are very clear that something that we want to play and we are going to work on it. It will take some time, but we believe that towards the later part of the fiscal, we should be in a position, at least by the last quarter to have serious play. On the Marine protective and industrial side and marine protective, I believe that, look, we are on the journey. Again, we are winning a good number of projects. And hopefully, on that journey on industrials per se, we should be able to inch our market share in the coming year itself.

All right. Got it. Got that. If you can quantify in terms of if that's what a some kind of a relative play between the rest of the income groups?

If you can quantify the relative play between the rest of the income groups?

Yes, I think the market share, if you can quantify in terms of…

Would you like me to comment on. Look, I think in terms of -- and are you talking about absolutes or you're talking about incremental?

Incrementally.

I mean are you talking about the quarter incremental. So look, in May as far as the market share is -- see, look, I think the market share is for different players, you already covered very well. So I don't think it's a bit of a surprise. But what we see, and I think directionally, what you're asking me is how is the play going on? We believe that, look, we are gaining at the cost of suppliers. I don't think it's fair for me to comment on the names, et c., but I'm sure when you're doing your market in channel checks, you're picking it up, right? My belief I think between the market leader and the challenger, there's tussle. I think the number 2 player has also announced its results. I think after that, there is going to be a serious play between the various players. And I think we are well positioned between as JSW Dulux will play a key role in trying to fortify market share at the cost of some players . Sir, does that cover it?

Yes, yes. And secondly, just my final question is that just to develop sense on how the upcoming fiscal is going to be FY '27. Any guidance or some kind of just picking a brain how the volume...

That's the toughest question for me to answer now because let's understand what's happening today is very unpredictable. We are seeing a lot of message coming from the countries -- the country leadership. So very, very difficult for me to say exactly how this will navigate. We had assumed that the entire war would sort of end, but obviously, correct. We need to do a bit of scenario planning, Darshit, in terms of now assuming that things are going to remain at this level. It's going to be quite tough because I think the journey ahead, if it continues at these elevated levels, we'll see a bit of compression maybe for a quarter on the margins. But structurally, I don't think there is any issue. I think once that is sorted, I think things will really bounce back from the -- from an industry perspective itself.

Rajiv sir, we can't see you right now. I mean your video is off?

Actually, my camera is on. So I don't know why I'm not being able to be seen.

Now you are visible. Thank you so much. Ladies and gentlemen, we'll take the next question from the line of Pratik Gothi from HSBC.

Sir, my first question is, so 23% volume growth, just a clarification on that. Is that entirely in the Deco business or is that a blended figure?

It's a blended figure. It's not decorative. When we report our numbers, both volume and revenue is for both the verticals.

Great. So any color on the Deco business itself? And also, did you see any…

No, look, it's similar. So there's no major difference in both the business have had very strong volume growth to start with. In terms of pre -buy, yes, I mean, look, at the end of the day, the dealer pre-buy is to an extent of some times a week to 10 days because remember, the shops are not the sort of shops where you can stock. So yes, there is a bit of pre-buy. That's happened. So really from a March perspective, obviously, there has been a bit of a pre-buy, but we need to wait and see how this shapes up.

Yes. So Rohit, who looks after our decorative business, I'll invite him to say a few words. And after that, I can say it. Rohit?

Pratik, thank you for the question. Basically, we see offtake also on the similar line. And as a result, yes, though there is a little bit of pre-buy, but offtake which we capture through is also on the similar lines.

Yes, I hear -- that helps. Last question from my end -- sorry, please go ahead.

No, I was just adding to Rohit. I said in this, you can't do a huge difference between -- remember that we are -- in decorative, we've got about 20% of our retail business, which is direct and 80% is distributor, 75%, 25%. So project is direct, right, whi ch is 20% of the overall business. So within that 80%, almost 75% is distributor. So you can't really sell in if you really don't sell out. So hopefully, that answers your question. Yes, please go ahead with the next question.

Yes. And my last question would be any more color on the competitive dynamics in the sector? How are you seeing dealer incentives being reduced by everyone?

It is very competitive. There's no doubt. The situation is extremely competitive. I think the difference we see is obviously the fact that different players would have different stock levels, which is going to impact the margins. People who had elevated stock levels at lower prices would see a little more margin pressure coming a little later than those of us who had relatively lower stock level. But other than that, competitive pressures will continue in the industry...

Excuse me, sir, we are not able to hear you now.

Are you able to hear me?

Yes. Please proceed.

So the industry will obviously see a lot of aggression from all the players in the market for the coming few quarters. I think this is a year where clarity will emerge in terms of market positions towards the end of the year, towards the end of the fiscal.

We'll take the next question from Aniruddha Joshi from ICICI Securities.

Sir, congrats for a great set of numbers as far as volume growth, 23%. So 2, 3 things. One, if you can indicate, is there any channel check filling in that, one at March end? And secondly, there was some issue with the dealers when the merger was announced, and we had seen probably some destocking happening at that end. So I guess those worries are behind us and those dealers have also come back on to upload the inventory. So is that also a reason for such a strong volume growth? Secondly, how should we think about volume growth on a normalized basis over next 1 year, FY '27? Question number one. Question number two, considering the price cuts, price hikes and maybe trade spend restructuring. So how should we think about the effective adjusted price hike? Question number two. And third, is the paint industry also completely out of the woods now? I mean last 3 years have been really tough for the entire industry as far as revenues or margins are concerned. So do you see both the things...

Aniruddha, quite a lot of questions loaded into one. Let me start with...

Yes.

That's quite a lot questions you've loaded into you've loaded a lot of questions into one question. But suffice to say on the volume growth first. Look, the volume growth, firstly, has been in both the businesses, and it's very secular. We do see, obviously, as we move ahead, that this would come to a double -digit sort of a growth from a long-term perspective to answer your first question. Yes. On your -- and really, the volume growth has been led, as I mentioned a couple of times before, that we've taken some price corrections, which is long overdue because we believe that it's important to have the right pricing strategy for our brands. And once that has got done, we are able to see a little bit of a bounce back and the confidence is seen in the dealer channels. On the dealer channels per se, look, there's been no -- yes, there was a lot of challenges when the strategic review got announ ced. There was a lot of pushback, both on the retail and the project side in decorative, where a lot of societies, etc., were asking us and the team in terms of whether the warranties would get altered. I think all that is behind us. So obviously, now we are seeing a bit of a stronger uptick coming in. Obviously, Dulux being the best quality paint in the market always helps, right? And that's something that consumers are always aware of. Painters are also aware of. I think our work in terms of making sure that consumers are able to -- we are able to beat that into the consumer story is the most critical element. On the adjusted price hike, yes, the 9.7% that I talked about is not the -- is the price hike without the adjustments. The adjustment, as I mentioned to you, there is a price correction. Now obviously, in the quarter that the price drop impact was about 1.5% to 2%, and that would be in the quarter ahead too. So that would need to be taken up from the price increase that we've taken, and that's the only difference that we see, right? In terms of volume growth for the coming quarters, I do -- as I mentioned earlier, it will be -- we are looking and targeting a double-digit growth. Aniruddha, have I missed anything? On the paint industry, sorry, I think -- look, I think on the paint industry, I think the demand is coming back. What is going to be a challenge for the paint industry is the 2 biggest variables are crude and forex. So that needs to be studied very closely. What we are seeing is, obviously, the larger players' ability to be able to manage this entire game g iven the sort of cash flows, et c., is a little better than the smaller players. But look, players with deep pockets would be able to manage this a little better. Aniruddha hope I answered the question.

Yes, sir.

We will take the next text question from Abneesh Roy from Nuvama, and the question is how is company dealing with aspects like cultural and system integration are these over?

So I mentioned on the cultural integration that a lot of work is in progress. The teams are -- we've already -- I've already indicated that that work is on. And I think it's positive so far. So I don't see any issue on the systems integration. I think tha t work is being done. We are working with industry experts to work on it. And that will something that will be more seen towards the end of the year. We are planning to have an integrated SAP, etc. , being done post -- around post Diwali just to make sure that because it takes time. We ar e studying both the systems, et c. It's not like the system of the erstwhile Akzo Nobel India, JSW Dulux is cut off and moved in. The systems are slightly different in terms of -- even within SAP what's getting used. So that's planned towards end of the year, Abneesh.

Thank you, sir. We will take the next text question from Darshit Vora from Asit C. Mehta Institutional Equities. And the question is any capex client and if you can give a sense on capacity utilization?

Yes. Good point. So two things that is happening is as a part of the integration, we are looking at working on cross manufacturing, right? So we -- as you are aware that the JSW Paints was only made in in Vijayanagar now we are going to manufacture it across our plants. And similarly, vice versa, some of the products or some of the southern states, which were manufactured in Hyderabad and Thane will start moving into Vijayanagar. So we are doing working on that and some early work has been done on product trials and the first set of batches have got sort of made. So to that extent, the capacity utilization that is going to talk about does not consider it. Currently, we operate anywhere between 55% to 60% on decorative paints and on performance on our industrial products, we are even as high as 70%, 80%. We've added some additional capacity. And the capex is -- we are going to be see investing in the capex . Again, other things being equal, we are to sort of look at capacity expansion and localization as a part of our agenda moving forward. Hopefully, I answered your question.

So my question will, what are the future upcoming projects and brand activation like marketing spends or brand collaborations?

So, thank you for the question. I mean, look, this is a little competitive. So I'm sorry, I'm not in a position to disclose. But at high level, I think what we are trying to do is to -- the challenge on Dulux is really and I assume you're speaking decorative now. So the challenge in Dulux is really we've got a very high how do you really convert it to making sure that we are able to get higher purchase into it. So the communication and all other programs are really working towards it. And our campaign is something that we'll work out, which will be seen perhaps around the Diwali time. So that's really on the first slide. In terms of product launches, obviously, look, Dulux, we work on what we call feel the difference in terms of the fact that we like to show demonstrable superiority versus other players in the market. And that's what the marketing and R&D team and business teams are currently working on.

We will take the next question from Manoj Menon from ICICI Securities.

So only one question that you actually from a brand point of view in the last few years, at least in a couple of years, you've tried to reposition as a younger brand, Yash as an ambassador, etc. Do you think there's more work to be done or you kind of done that and just a bit of on the brand where it is and the relevance for the current audience?

Yes. Look, I think the positioning of Dulux and remember now we have 2 brands to work for in a larger scheme of things. But really, the positioning of Dulux is really in terms of best-in-class quality international, etc. So that's something that we are consistently working on, right? And to your question, there is lots more to do. I think the idea is to really have campaigns that are memorable to really make sure that we get the higher amount of new users and ties to adopting the brand. When we did a brand equity study Manoj, the brand equity study clearly shows that we've got a long way in terms of making the brand more contemporary, useful. I think in terms of product quality, clearly, it came out that amongst all the players. Even if you ask painters who've sort of done it they perhaps because of slightly lower incentives that we gave are not really driving conversions. But when you ask the painter and we've had this -- it was -- while it may sound anecdotal, the reality is when you really approach the painters and ask them, which is the best brand, they will tell you perhaps Dulux is in the forefront of it. So I think that's the trick. The trick is you've got a brand, which is now over the years really build quality. I remember when I joined this company in 2013, there was an issue coming the ICI legacy into Akzo Nobel and the quality is the biggest. I'm glad that the team, R&D, the marketing teams, etc., have corrected it. We've still got a long way to go. And that's what the t eams -- the marketing teams, et c., are working upon. Can we take 1 last question, and then we can close?

Sure, sir. Ladies and gentlemen, this will be the last question for today from the line -- the text question is from Anuj Sehgal from Manas Capital. The question is, is the decorative paint industry expected to see double-digit volume growth this year with the inflation we have? And how is it that every player will gain market share?

Look, two things we are right now, as we speak, I think the situation is slightly different from the last quarter because what we are seeing is elevated raw material and Krishna, Rohit, please feel free to add if you have by the end of what I see. I think my view is, look, I think the players with deeper pockets players who got the right strategic intent and the ability to win and execute will be the people who deliver higher market shares, right? We want to be on the forefront of it. I think this is a huge transformation as far as JSW Dulux. I'm glad that I'm part of the journey and really look forward to at an appropriate time next year this time, really feeling proud that the team has very pulle d off a solid market share gain. Yes. Krishna or Rohit, do you want to add any? Yes. So that's it. So I really want to thank all our investors, again, once again, for all the support they've given us. Thank you. Wish you good luck and do stay in touch. We will -- you can do get in touch with Rajiv Jha, if you would like to sort of have any further questions or meet up. Till then, thank you. Stay safe. All the very best. Good luck. Thank you very much.

Thank you, members of the management. Ladies and gentlemen, on behalf of ICICI Securities, that concludes this conference. We thank you for joining us, and you may exit the meeting now. Thank you.