Thank you. Good afternoon everyone, and thank you for joining the Bikaji Foods International Q4 FY26 earnings conference call.

From the management team, we have with us Mr. Rishabh Jain, CFO, and Mr.

Manoj Verma, COO. I now request Mr.

Rishabh Jain to take us through the key opening remarks, after which we will have the floor open for question-and-answer session. Thank you, and over to you, sir.

Hello. Thank, thank you, all, for joining investors' call of Bikaji Foods International Limited.

Before starting this, one thing which, we recently lost our chairman on 23rd of April. This was a great loss, great loss for the company, as well as for the family.

He was a great visionary and a bold leader and was influential figure for the company as well as complete Bikaner, all this snacks fraternity. Now we can start.

Largely, this quarter has been a great quarter from many perspectives, be it top line where our top-line growth was close to 18% plus, and in top line also, our core market has been grown at upward of 15%, which is last from last many quarters it was growing at 10% to 12%, but yeah, in this quarter it has grown at good growth. Export has to has been doing very well from last 4-5 quarters.

Family Pack, which is our key, and for this we also started two campaigns: "Bhujia ho toh Bikaji" after September and "Kya Baat Hai Ji". Family Pack has grown upward 20%.

E-com, Q-com has now became 3% of overall business, which is significant, and growth at grown at over over close to 100%, and that's the target what we're taking for next this year also. From campaign perspective, of course, these two campaigns, this year has been two halves, where in first half, six months, our core namkeen snacks growth was slow, but after this GST reduction from government and the two campaigns what we started, next six last six months, our momentum in overall snacks category snacking has been very significant and grown into a good growth.

That's what we continue want to continue for this year. From bottom-line perspective, from bottom-line perspective, largely from conso consolidated conso financials, our gross margin is at 35.6%.

This also includes PLI, but yeah, overall this a 240 basis points year on year because PLI was included last year also. From EBITDA perspective, EBITDA is close to 12.2%.

Largely in this quarter, we started two campaigns end of last quarter, mid of last quarter largely. We continued the same campaign this year also.

Our ad cost is having increased this quarter compared to last year to tune of 1 1 1.2%. From EBITDA, EBITDA overall we've crossed close close to ₹88 crore of EBITDA, with PAT of PAT margin of close to 8%.

Overall from year perspective, largely our overall year yearly revenue from operations is close to ₹2,194 crore at 9.5% volume growth. In this quarter, in last quarter, volume growth was upward of 16%, which was highest in many quarters.

Overall GM at a full-year level is 35 plus 35%, 35.1%, and EBITDA margin is 13.7%, upward of 120 basis points compared to last year. From capacity perspective, largely we not added much capacity last year, but yeah, this year we have we have planned to increase capacity in sweets, which is which is an going on.

From distribution perspective, I request Manoj sir to

Thanks, Rishabh. One of the key growth driver what we had called out was the continuous increase of footprint, which is distribution.

We delivered the target what we had taken for ourselves, was to cross 3.5 lakh outlets, which is what team has done. This increase has come across all our core, focus, and others geography.

These campaigns what Rishabh just spoke about did extremely well, and that was one of the reason for our higher growth in the large pack. Large pack has outperformed, and these marketing campaigns have worked very well.

From core geography standpoint, "Bhujia ho toh Bikaji" was a major and a great success. The number speaks louder than what I would say.

It is that if one is to look H1 versus H2, there is a multiple growth in that stuff. In UP, we did the campaign "Kya Baat Hai Ji" while looping in Pankaj Tripathi in that.

This campaign also did very well for us. That's what is the reason that we look at quarter four, our Family Pack has grown at 20%, while Impulse grew at 14%.

There certainly is room of improvement on Impulse, but Family Pack outperformed this. From number

From key initiative perspective, this year also has been very significant for us as we've gone SAP go-live this year in December. We also gone Darwinbox go-live.

There was new logo launch in January this year. We completely changed our packaging, revamped our complete packaging, changed logo.

Our investment in the hazelnut factory last year, this has this year has been very good for for the brand. They they crossed ₹100 crore revenue this year, and target is to grow 50%-60% year on year for next 2-3 years.

Our annual report has been ranked 42 42nd in American Communication Professionals. From export perspective also, we've crossed ₹100 crore first time this year.

From revenue from operation perspective, in quarter quarter four we've we've crossed close to ₹720 crore of revenue, with EBITDA of ₹88 crore and PAT of ₹56 crore. From working capital perspective, our working capital cycle is largely same compared to last year, largely same, there's not much increase in working capital cycle.

From raw material perspective, this war from war this war which which was started in Feb and March, we have seen increase significant increase in our packing material and and edible oil. Largely, edible oil has increased to tune of close to 12 12-13%, 14% in fact, and packaging material has increased to tune of close to 25%-30%.

Overall we've taken price rise in April 1st like April this this year. Which which will suffice largely for the current price hike what we're seeing in raw material and packing material.

We'll see how the how this war goes and we need to take either another price rise or not, but yeah, as of now we have we have taken we've taken a price rise which will manage our overall gross margin and PAT and EBITDA. Thank you very much.

We're happy to take all the questions.

Thanks, and congrats on a good performance. My question was now Q1 almost 50 days are gone.

Are you seeing good momentum continue in Q1 also based on the sales and volume trajectory in Q4? Any divergence you're seeing in Q1?

Hi, Abneesh. Momentum what we've seen is it's a continued momentum.

Post November, the way or the trajectory we are on, this continues. This also is the outcome of the kind of investment in demand generation what we have done thus far, and is giving us and keeping us on the same trajectory.

In spite of certain price being passed to consumer, yet we haven't seen any slowdown in terms of the demand. Also,

we've seen few turbulence in this last 50 days. One largely Bengal election, and our factory, most of the laborers are Bengali.

Largely some of the laborers have moved to Bengal for elections and all, and we've seen some production loss, but yeah, overall momentum seems very strong. Of course, our chairman loss, the factory was shut for 2 2.5 2.5-3 days.

That was also, but yeah, overall from momentum side what we are seeing, we're seeing good momentum.

Just to get clarification on these two points, 2.5 days factory shut and Bengal the workforce had gone, did it lead to sales loss also, or you had preplanned, in terms of sales there's no impact, could you clarify on that?

Demand we were talking of, that's where you started off, there's no issue in demand, very well created and that's on. Yes, from supply end, yes, there were some disruptions because ours is not a phasing wherein that most of the billing happens in last few days.

It's a daily progression, a very seamless day on day what we do, right? We have been talking in our earlier calls as well that we work on two days FG kind of a stuff or even less than two, a day.

The production impact has certainly resulted in some sales, the quarter could have been even better. Yet, overall if you look at, this quarter will be well in line to what we've said.

The Bengal workforce impact, that will come in Q1, right?

Q1 Q1, yeah. See, Bengal election first phase was on 23rd of April.

These people, and after SIR and all that stuff, there were no choice to hold them, or no way one could have hold them, and so majority of them went on leave. From 20th of April till, say, 15th, 10th of May, these people started coming back, there was disruption or the manpower problem in that stuff.

We managed it somehow, certain there was some impact.

Just to close this point, 2.5 days because of the loss which had happened, unfortunate, plus the election related, can we say around four days of impact overall?

Yes,

yes.

Second question is on the inflation. You said palm oil and edible oil inflation is around say 13%-14%.

I wanted to understand packaging inflation, because it's linked to the crude oil, and crude oil inflation is much more than the 24%-25% which you mentioned. If you could clarify on that, and have you taken a shrinkflation, grammage cut or in the larger packs it's more of a price hike, if you could clarify on those two?

From packaging material inflation, we're seeing that the average packaging material cost was close to ₹190-₹200. It has gone up to ₹260-₹270, but it has again came down to ₹220-₹225.

It's not on high side as of now, it's manageable. Overall what we've done is we have increased price in our Family Pack, and we have reduced grammage in Impulse pack.

That's what we can do largely in Impulse.

Understood. That's

Overall, the price rise was close to 3%, which will be manageable, which can manage this increased RM and PM price.

Thank you. That's all from my side.

Hi, this is Percy Panthaki here. Sir, what is the quantum of price hikes that you have taken?

The price hike was close to 3%.

Do you think you will have to take more given where the commodity costs are currently?

Currently as of now, this is manageable for us. We can manage the same GM largely at this current increase what we've taken.

We had good amount of packing material orders which we blocked, and what we see that this PM prices came down from increase what we've seen in early days of war. It has came down significantly, it's manageable.

Okay. Secondly, wanted to ask if I look at your EBITDA margins first half of the year versus second half, there is a sort of lower second half margin versus first half.

Is this something normal seasonality, or is there some other reason behind that?

Largely, our major ad cost which comes during festivity. Normally in every year, our major ad cost comes from August to December, but this year we continued two campaigns in fourth quarter also.

Fourth quarter ad cost was a little significant higher compared to last year quarter. Overall ad cost was close to 2%, which was last year 1.6% on yearly basis.

Okay. That 40 basis points YoY, I understand, and YoY the margins are not a problem, but I was looking at more versus the first half margins are close to 13.5%, 14% and the second half margins are close to 11%.

I was trying to understand that, because the movement is 280 basis points between first half and second half. Is the ad spend the explanation fully, or is there some other reason?

Majorly ad spend. There was 50 basis points some provision for doubtful debt which we've taken in last two last two quarters, last quarter in fact, which was one-time.

Understood. Can you just tell me what is the ad spend as a percentage of sales in 3Q and 4Q?

So

3Q and 4Q ad cost was close to average 3 3 3.2%, 3.3%.

Okay. In first half, it was 1% or something, is it?

1%.

Hello?

Yeah, 1%.

Oh, got it, got it. Secondly, sir, just wanted to understand this difference between consol growth of 19% and standalone growth of 15%.

Is there any inorganic remaining now, or it's just that the subsidiaries are growing at 70%-80%, which is giving this kind of growth?

From consol to standalone, largely we have Bikaji USA, which is a core ethnic snacks business, which is doing good. We have Ariba Foods, which works for us for frozen segment.

Of course, this THF. THF is growing on very well.

They this year they've grown at close to 100% 130% to cross ₹100 crore. Retail business going on very well.

The difference between ethnic snacks and overall is close to 2 2.2%, which is THF retail. Understood,

understood. There is no sort of inorganic portion this year on a YoY basis, right?

Everything is annualized.

Yes, yes, yes.

Got it, sir, got it. That's all from me.

Thanks and all the best.

Hi, good afternoon. Am I audible?

You are.

Yeah. Sending congrats on the good set of numbers.

Just wanted to firstly understand if you could quantify the capex amount that you alluded in your opening remarks.

What amount?

Capex amount.

Capex largely what we'll be doing, there two capex, one the sweet factory which is coming in Bikaner. This year, we'll be doing close to ₹100 crore of capex, that's the plan.

Less than or close to ₹100 crore capex.

That

is big warehouse which is came in, the capex has been done. It will came install in, I think, in next 15-20 days.

That will solve lot of supply chain problems.

All right, all right. Secondly, just wanted to get a sense on the Western snacks portfolio.

This quarter we saw about an 8% kind of a increase year on year. If you look at the entire year also, we've seen kind of 7% kind of YoY increase.

How do we see this moving forward in terms of

Yeah. Generally if you look at, just not Western snacks, holistically if we look at, quarter four has been a 16% volume growth, wherein the ethnic snacks is in line with overall volume growth, which is 16.1 value growth.

Packaged sweets did well. Western snacks, one of course now the ₹5 pack, as I spoke in my earlier statement as well, that the trajectory what moved was more on the Family Pack, and the Family Pack is more on the ethnic side.

Perhaps that's what could have been better. To your question that now going forward, if we look at the quarter three, there it was 25% growth in Western snacks itself.

We will get back to that stuff, and Western snacks will grow 20% plus if you look at going forward. At an annualized level as well if we look at, the annualized level first half and second half was a major contrast in terms of growth across category.

Even here if we look at ethnic snacks is at 11% in that stuff, and while Western snacks was better off, but then because of this poor quarter four, this has come down in this. Going forward, this will fall in place.

Okay. Are we taking to consideration the grammage cut impact?

Despite that, we'll be seeing that 20% kind of a growth? See,

I think that's now a new normal in terms of as the inflation comes in, grammage start coming down, and as there's deflation or there's cooling of commodity prices, companies do pass it back to the consumers, which is what we saw that during this GST changes. Most of the companies, and so did we, pass back these extra grammages to the consumer, which now again with post-war aftereffects, maybe we'll cut down.

This will keep going and coming. We don't see much of a difference in that stuff.

One thing I want to bring it to the table that overall if you look at the Western snacks growth in the last quarter for the category has also not been very bright in that stuff. Relatively if you look at 8.5% growth, while certainly we could have done better and we know how we have to press on, but overall Western snacks was also on a little slowdown.

All right,

all right. That will be all.

Thanks so much, and all the best.

Thank you.

Yeah. Hi, sir.

Thanks for the opportunity. My first question is Am I audible?

Yeah. My, sir, first question is regarding the core versus focus market.

Ideally, the long-term aspiration of the business is to grow the focus market at least by 1.3 to 1.5 times. However, if we see the fourth quarter or FY26 as a whole, the growth rates are not that different.

What is holding us back from getting those sort of growth rates into the focus market? See

if we look at in terms of the growth of focus markets vis-a-vis category is overindexed in that stuff, which means Bikaji's performance of whatever we are doing now is ahead of category. However, to your question and for what we intend to do is of our, say, 1.5x growth to stuff.

There have been certain challenges which keeps coming and we keep addressing. I just spoke about that in UP, a large focus market, we made those investment and results started coming in.

Going forward what we see and what we've been saying would continue that these focus states has to grow faster. This four states did extremely well in quarter four is on the back of the mega campaign what we did, Gujiya, and the biggest consumption happens in these four states as well, and Gujiya outperformed.

That's what helped these four states overdeliver. In fact, going forward, if one was to give some guidance for next year, 15% growth would not be sustainable, what we look at it is, that's about 13% plus-minus kind of a growth we look at from core states, and from focus state would be upwards of 20% only.

Understood. When we see the EBITDA margin profile ex of your PLI benefit in FY27, considering the price hikes plus the inflationary trajectory which we are sensing, how we are expecting the margins to flow in?

On top of that, we are having a higher focus on A&P as well. Overall how you are sensing your FY27 EBITDA margins?

From ad perspective, our ad budget this year will be close to 2%, which is same from last year. We're not increasing our ad budget, number one.

Number two, from EBITDA lens, we've taken one price rise in April, what we've seen the price increase of raw material, packing material. That will suffice overall cost pressure what we got largely.

From that perspective, gross margin, the target of gross margin at consol is same for us. We need to maintain the gross margin this year.

That's important. That's challenging also because that's a very fluctuating year as of now.

It started with a very fluctuating year where we're seeing daily fluctuation in edible oil, as well as raw material depending on how war react. Overall our target is to maintain same gross margin.

EBITDA lens largely, if we maintain the same gross margin, EBITDA will improve, because there will be lot of fixed cost which will be fixed and there will lot of production from outside Bikaner, which is CMU, will also increase. There will be lot of operational efficiency which will come in this year.

Understood. Lastly on the retail business front, we are seeing very good traction over there.

Over a period, how we are sensing to open the newer stores? On top of that, how the overall opex and all are looking like?

From

from retail lens largely, our major focus investment was on THF last year, and THF is doing extremely well. They have close to 19-20 stores.

Intent is to open 8-10 stores every year for next three years next three years, and to grow business at 50%-55% top-line growth. That's the target.

That's the best part of that is they are profitable, so that's they are not EBITDA dilutive. That's important for us, and and at that same speed they want they want to grow for next 2-3 years.

From Bikaji lens also, we opened we opened outlet, two outlets will open in next six months. We'll we'll see how we grow our own retail business.

Understood. That's it from my side.

Thank you.

Thank you.

Yes, hi, team. Thank you for the opportunity.

Just wanted to check out of our direct reach of about 3.5 lakh outlets, what would be the split in terms of how much is in focus markets, how much is in core, etc.? Also, we have a target of about 5 lakh in three years, about 50,000 per annum.

Of that 5 lakh, what is our target split in terms of how much would be in focus and core and the others?

Currently if you look at out of 3.5 lakh outlets, about 120,000 outlets is in core states. Here the distribution is more led through the wholesalers.

Whereas if you look at indirect reach is about 8.2 lakh. Coming on to focus states, we cover about 1.7 lakh outlets in the focus states.

Here our indirect reach, the wholesale channel and the other stuff, our overall reach here is 3.5 lakh outlets. In the other states, we cover about 60,000 outlets.

This all adds up to 3.5 lakh outlets. Going forward, the increase is to come from core as well, because that's where now we're going down pop strata, instead of keeping our dependence on wholesaler, we are trying and we are getting in directly there, so as to sell range, so as to establish NPDs, and the stock weight in the store.

That's what will help us drive same-store growth in core state, whereas the key driver would be distribution reach in the focus state, so that's where the majority of the new stores would come in.

Right, sir. If I hear you correctly, the delta of 150,000 in the next three years, most of it will be in the focus states, is that right?

Right, this would be from core and focus states. Other states would be incidental because that's where we do not have as much priority in general trade.

There we do need-based kind of a stuff. The growth what we take pride on is on the basis of the other channels, such as modern trade, e-com, institutions, on and so forth, doing extremely well in all that stuff, and which is what is getting the brand recall.

There also if you look at the indirect reach in the other states is also about 1.8 lakh outlets we are there.

Right, sir. Secondly, on the raw material inflation front, you have talked about the packaging material and the edible oils, but in terms of our pulses and flour, that part of our basket, what is the trend that you're seeing on inflation, or is it benign as of now?

We're not seen any major price rise in all pulses and flour.

All right, great, sir. Thanks and all the best.

Thanks.

Thank you.

Thanks for the opportunity. Just wanted to check on focus market, last time you called out that Delhi market was not performing well while UP has been doing good.

On a full-year basis, how these two major markets have been doing in the focus market, UP and Delhi?

Sorry, Delhi and which one?

UP.

UP if you look at in terms of TAM, out of six markets, UP is equal to rest of the five the focus states. That's the size of prize for UP.

Delhi is not as big, however it has a weight, but not as big the TAM there. In terms of our performance, UP has outperformed, has brought in the overall numbers, whereas Delhi, as we said last time, that has not done well, and we have not invested also behind Delhi as much in this stuff.

Delhi has brought the growth numbers down only.

In UP, what kind of growth we're expecting, 20%-25% kind of growth or it's higher than that?

Upwards of 20% growth, yes.

Okay. If we want to maintain that 15% kind of top-line growth, in that case on product-wise, how you're looking like ethnic versus packaged sweets, as you mentioned that Western snacks would be a little bit higher growth category, 30%-40%, but ethnic and packaged sweets, how we're looking for next couple of years?

If you look at for your question that if one is to deliver 15% year-on-year growth, one category you cannot choose to ignore is the traditional snacks, which is about 70% of our business. That has to take lead, followed by the second largest category is sweets, which is about 12.5% to our business, right?

This is where when we are on our strat plans, this is one category where the shift from unorganized to organized is going to happen. For the category, this growth is going to be large, and we cannot miss the opportunity, therefore this would be second one.

Third is Western snacks, our base is very small, even 20%, 25% will not add as much value to our overall consol growth of that stuff, but yes, Western snacks will continue to grow double-digit, say 20% plus kind of a growth year on year Western should do. Which is what we are talking of also that in next three years, currently what it is 8 8.5% Western contribution should move to about 11% in say next three years' time.

Sir, one last question from my side, in core market like Bihar, Assam, and Rajasthan, within three markets, what is the most growth driver as of now? Or how do you look each market?

Say again. What is the

Basically, what is the fastest growth driver within these three markets?

Rajasthan in fact is our homeland in terms of closest to Bikaner and all that stuff and is very large. Put together, Bihar and Assam is equal or less than what the Rajasthan market is.

The growth what comes, Rajasthan is the largest. This year if you look at when we report number as core, and core delivered 15%, it's not just one state, it's a holistic performance, wherein all these states have done extremely well, and I think all are inputting.

The team, the sweat behind this growth, I think this has paid us dividend, I'd say. The campaigns what we did, when we say "Bhujia ho toh Bikaji", that was a very straight campaign because we witnessed in first half that there was a slowdown in bhujia category per se.

I'm not talking Bikaji, I'm talking of overall bhujia as a subcategory. We being market leaders, it was our responsibility to spike up this growth, build this category further, and hence these campaigns were done, rolled out, and worked very well for all four states.

Thank you, sir.

Hi, Manoj, Rishabh. Thank you for the opportunity.

Shirish.

Yes. Just two, three question.

About 3-4 months before, there was lot of noise around GST rationalization, unorganized player will exit, there is a lot of momentum which is said that the unorganized player will not be able to compete at ₹5, ₹10 or maybe compliance burden will happen. In your experience, given this framework which is now implemented, which are the states you have seen this has been beneficiary to us, or is there realistically anything has happened?

Because squarely you might have got the benefit of 5%, but inflation is also inching up.

I think a very nice question, Shirish. If you look at what we did, the Family Pack, there this was impacted more in that stuff, and as our numbers are, I'm sure for other companies also would have done better.

In this ₹5 and ₹10 play, the regional and local nuances are also very, very high. Few new players get in and few get needed of kind of a stuff.

That's what is the phenomena and the trends what we see. Going forward if you look at, and this is what we always have been calling it out on our calls, that over two to four quarters you will see the impact in this stuff.

Certainly this GST regime change would benefit the organized players or the larger players largely.

Really is there any trend you are picking up that the national branded players are getting this sales and unorganized are tapering down, or it's too early to judge? Because squarely again I'm using the word inflation is inching up.

See, unorganized when you say, unorganized you don't track, because you don't get data. When you do market visits, you get some sense and trends.

Yes, if you talk about the local and regional players, yes, this is where certain players we have seen that the kind of traction what they had has slowed down, is not as much. The kind of trade investments they were doing is a little muted stuff.

For their survival, they will certainly do for two quarters at least. I think the right time, maybe next quarter onwards, and as the year will pass by, you will see those impacts coming in.

Okay. Sorry, I'm stretching.

Let's pick up a UP as an example. What happens to Avon, Apricot, Evita?

These brands are still existing, but if I check on the ground, they're still growing. See,

Evita and Apricot is not a small brand for that reason. If you look at the kind of players, in UP itself there are 200 listed brands there, right?

Top 10 brands if you look at, after that any brand is less than 1% market share. That's the fragmentation in this UP, though which actually is not a state, it's a country in itself.

That's what it is. Morano, another brand, if you look at on account of its UP sales, it's amongst top 10 players in the country for that stuff.

I'm talking of the players which were pure regional and local likes and Jain, Popat, Mahesh Namkeen, which is only in the geography of 100 or 150 km, like PK Namkeen in West UP. Those are the ones I'm talking about.

Likes of Adarsh and all what you're saying.

Exactly, you got it.

Got it. Second, on slides and you have given a certain promotions which we ran, consumer offer, Bikaji campaign, UP campaign with Mr.

Tripathi, and the other packaging, what. On a broader terms, if I split tangibly you may not be able to quantify, but in the current era of packaging or maybe packaged food industry itself is so complex, such kind of measures has brought any benefit to the company in terms of quantitatively if you can say that we got distribution expansion or volume growth, or maybe some percentage of sales would have happened, just ballpark number?

Shirish, you come from a FMCG background, and so whensoever company plans any consumer offer, this is not just to subsidize sales, it's always with the objective of that whether this gives you 20% extra, 30%. This again is on kind of investment you're doing.

For example, Paytm if you look at it this comes at negligible cost to us. Hence if my sales team is to plan, I cannot have very bullish number on this stuff.

Yes, certainly delta will come in, and the investment what we do, the kind of focus what we bring in, are the larger or the big ingredients to get a good results out of it, which is in terms of that, the motivation, the team, the posters, the retail activation around that, buzz what you create. There is more power of execution on ground, and which is what gives us delta for sure.

The number speaks more louder than what I can speak on this stuff, that you look at what was quarter one or quarter two, and then when these campaigns were up on air or was on ground, this has certainly given this stuff. Any company when they do these kind of offers, there could be two objectives: one is that if they are seeing decline, they say that I want to hold it, and holding on those numbers in itself is a achievement, because then the relative is that at what rate they were falling down; and the other is that what growth are they on next trajectory you want to go on.

Those are the measures what we see, what we track, and basis this, will call out for our next promotion and campaigns. No,

I understand, Manoj. We both are from the same background.

My worry is that these are all routine activities. We need to do promotion, we need to excite the consumer.

Then we are creating a benchmark. It becomes more challenging that the next promotion has to be better than the previous one, so that's why I was worrying, because we are building a base.

You will see the next campaign will be phase two of it. Certainly we'll not repeat the exact stuff.

Let's say last year in UP what we did was that trying to establish Bikaji. Now the part two would be a different communication, identify challenge statement of opportunity, we will try and address with the campaign.

It will not be airing of the same film what we did last year. That's what is certainly I think you have a very good point, and we work in the same way still, not to repeat, to build on that.

All right. My last question, Rishabh, on Ariba, THF, can you give us how the momentum is picking up?

We also given some press release last time saying that we are looking for JV in Nepal. In terms of scale-up, in terms of our 100% acquisition, path to profitability, something if you can tell?

Yeah. From THF lens, THF when we acquired the last year top line was close to ₹50 crore.

This year they doubled the top line. What we see that THF will grow at 50% to 60% year on year for next three years at least.

They have a strong plan. In largely they are focusing on northern part of India: UP, Haryana, Punjab, and they can go towards Bihar in that part, largely that part.

They will target on for next three years. From THF lens, the retail investment is going on very well.

Ariba is just a manufacturing capability, and they are just solving our export problem, which was there before Ariba, when we were dependent on other vendor. During the peak time, we were not able to supply, there was always supply chain issue.

You're seeing that after Ariba our export growth has upward of growing at 50%-60%. This year also with this we'll see the same momentum what we see this year.

Ariba is largely manufacturing facility. Of course, profitability is a focus because they cannot be EBITDA dilutive to us, and that's why we are working on.

Currently they are at low utilization. This year we'll be at close to 55%-60% utilization, and that will solve this EBITDA issue also.

Okay. Just last question on the warehouse what we were trying to build into the adjacent location.

Is

it fully covered operational, is it beneficial, you started using that?

Trials have started two weeks back, two weeks back largely. It will completely it will start completely in by 15th of June.

By end of this quarter, it's so by next quarter we'll see a benefit in this. Of course, we'll see benefit because currently we have space space of keeping finished goods less than two days, and this this warehouse have capacity to keep storage of of around 6-8 days.

Of course, we'll see a momentum, we'll see production running seamless and all. We'll see momentum in second quarter.

All right. Thank you and all the best.

Thank you.

Thank you.

Thanks for taking my question. My first question pertains to the very first question around people movement from our factory.

You have highlighted for West Bengal laborers have moved from 20th April to 10th May. I just wanted to reconfirm how many days of sales got impacted.

That time, answering to that, you had confirmed four days. I just want to double-check on that.

Largely there are two things: one overall few labor movements from Bikaner to Bengal, and there was a loss of our chairman where a factory got closed for 2.5 days. Overall close to 4 to 5 days, 4-4.5 days loss of production was there in and now it's close around 16 17, from 16-17, from this Monday, all the other laborers have came back and our production is in full swing.

We'll try to cover this, but yeah, till now the loss is close to 4-4.5 days.

So 4 to 5 days. It's more of a scattered impact, not a continuous impact, theek hai.

It's fine. Second, just wanted to understand at a consol level how do you see the growth for FY27, and also wanted to sort of understand how we are placed with sweets.

Was there a capacity constraint, that's where the growth in last two years was around 6% CAGR, or any other reasons you wanted to cite for the sweets business slowdown?

From sweets lens largely, of course, that's more of manual, capacity was constraining. In sweets, there are different challenges.

Like during festivity, we have a capacity constraint, and during non-festivity, we have a very surplus capacity, because during festivity we work at 100% utilization. We are building a sweet factory in Bikaner which will solve this sweets production issue.

Also we are trying to build all-season sweets, small pack, ₹5, ₹10 pack in sweets in Soan Papdi and everything. That can be all-season, that can improve overall growth of sweets category.

From sweets lens largely, this year growth was close to 9%, and our target is to be at to 11% or 12%. That's the target what we're taking on.

On sweets 11%-12% our major focus will be on our ethnic snacks and Western snacks.

Thanks for the answer, but the way Manoj ji has highlighted big part of formalization is pending on sweet side, don't you think we should target higher growth, or is there a genuine sort of a constraint in terms of driving this formalization and the growth?

No, Nitin, talking on sweets business if you look at, these four months, the festive from, say, Rakhi till Diwali, 80% of our sweets business comes in these four months, and then balance 25% 20%-25% comes in eight months. In these four months, our output exceeds 100%, overtimes and all that stuff starts happening, whereas in rest of the time, it is very poor utilization.

Now that's the dichotomy we are in. If we increase capacity, which means that in off-season time, we will be further underutilizing our capacities for this stuff.

That's the stuff, and which is what we are trying now that how do we make sweets a round-the-year kind of a category leveraging on our e-com, modern trade stuff. That's the work which is on.

What Rishabh spoke about is that when we build budgets in our annual operating plan and all that stuff, we have kept sweets as of 12.5% growth. However, the working is on that how is that we can exceed these numbers, because that's where the opportunity is.

Now how soon and how much we explore on that stuff would be on our capability and speed to act.

Sure. Thanks for the detailed answer.

Now this is very clear. Last question pertains to how we are placed with e-com, and particularly quick com, and any thoughts around quick com seeing a faster growth, convenience channel.

In terms of the portfolio expansion, maybe leveraging the third party, we wanted to do something for the quick commerce to ride on the faster growth wave? Thank you.

E-com certainly as a channel is doing well for the entire FMCG or even other categories as well, and so is true for Bikaji. If you look at, last year our e-com contribution to overall business was 2%, which now has moved to 3%.

That's the kind of business shift or the importance this channel is gaining. This channel has delivered about upwards of 75% of growth, whereas against company's growth of far less, 11%, 12%, that's the kind of overindexed growth.

We are present across all players, and have a strong JBP, joint business planning for the year, quarter, and so forth. The growth drivers are, of course, one is that inorganic growth, which is that as these accounts are getting from, say, metro to Tier 1, Tier 1 to Tier 2, and further below.

That's the inorganic growth how we look at it is. Also what we doing is that and the increase of number of SKUs range on these platform.

Now when we speak to e-com platforms or quick-com platforms, what they're saying is that their growth in the metro towns is getting stagnated, because they've explored for what they could. Even they are looking at the out-of-the-box thinking that how do we grow metro, and therefore new categories, premium stuff, let's say introduction of sweets range and all that stuff, which is what would certainly benefit us and these channels as well.

This is what it is. We see a huge growth, continued growth in this channel for us next year as well.

Sure, thanks a lot, and all the very best.

Thank you so much.

Hello, am I audible?

You are.

Thank you for this opportunity, and congratulations for your results. I was asking that as lifestyle changes, are you planning to enter into a healthy snack segment?

See frankly speaking, there is nothing called healthy snack, there could be less unhealthy snacking, right? In our portfolio also, there's long list of SKUs which fall in that space.

In terms of future ready, we are, right? There's a wait.

Today if you look at, now the contribution of these category is by far low. Today the companies which are surviving is purely on the quick-com platform, you will still see the clean-label products kind of a stuff.

When you speak on the masses, this is not true for now. We perhaps are 5-6 years behind time, in say next as many years you will see that these things will start picking up even faster.

From our readiness standpoint, yes, we have the entire range with us. All right,

all right. Thank you so much and all the best.

Thank you.

Yes, hello. Thank you for taking my questions.

I'd like to pay my heartfelt tribute to the founder chairman of Shivratan Agarwal ji. I have actually two short questions.

The first one is, as a company is trying to build consumption habit of bhujia and other Indian snacks in the Western countries, how are the consumers' behavior evolving? Are we seeing a good momentum?

The consumer in the Western market, primarily of the Indian origin, or are we also attracting mainstream Western consumers?

This you're talking from the exports standpoint, right?

Hello?

Hello, this question is more from exports lens or from domestic? If you can clarify, I'll answer accordingly.

No, it is for export oriented.

Thank you. One is that there's huge Indian diaspora, right?

That is our primary TG, which is what we focus on. There if you look at the two approach of growing business: one is that you grow category, for the category leaders or if we were 50% market share, then our task would be that how do I grow consumption, grow users, right, through courts, occasions of consumption, right?

That was if I was major player. When I'm not a major player, then my job is not to build category, then I'm not looking at that how many more people have started eating bhujia there.

I will look at that how do I eat share, that today if they're eating of competition or some other players, other category, how do I get them to my fold? This is what we are working on for overall namkeens, the what you call the frozen items, because there we are gaining share from the competition, we are not building category.

For our bhujia, which is our hero product, and if you look at across place, Bikaji bhujia is number one in the bhujia segment. That's where we build consumption, and our consumers to your question is not just Indians.

What we see when we travel to these places, when we interact to our consumers there, there are lots of foreign-origin guys as well that who like this snacking. Something is very famous about India is one is tourism and second is food, and India's food is appreciated across.

We are taking this food, this snacking stuff to their country. This is gradually shifting.

It's not a major shift, but it is not just stuck to Indian diaspora, it is the foreigners as well who consume our products.

Thank you. Thank you so much.

Hi, thanks for the follow-up. Am I audible now?

You are audible.

Yeah. Just wanted to picture again on this Western snacks portfolio again.

Just wanted to understand why do you think the industry's growth is coming low for the Western snacks line? The other part to this question is that if the industry growth is kind of moderated, then lower than ethnic snacks, how do we plan to grow higher?

Is it a distribution expansion or innovation in products, what else?

I'll take your latter question first. See, one is that we are very small share if we look at at a all-India level, at Western snacks is 1.1% market share.

It's a drop in the ocean. That leaves us with the opportunity of disproportionately high growth theoretically.

This is one. Now to your first question when we say relatively, these growth trends keep changing.

If it is down does not mean that it is, the right takeaway would be when you see the declining trend that over last four quarters this is coming down, then you can extrapolate and come to some conclusions or correlation of that stuff. One quarter in particular leaves us with it is just a reference point.

Please consider that if Western snacks has not done well is a reference point only.

Got it. Secondly, just wanted to clarify on the gross margin front.

You said that you're going to maintain margins on the gross margin front. Is it that margins or absolute gross profit you are talking about?

Gross margin

in Because we've taken

Sorry, can you repeat?

You earlier alluded that we will be maintaining gross margins. You mean gross margins or absolute gross profit?

Just wanted to Okay, I said that.

Gross margin in term of percentage.

All right. That'll be all from my side.

Thank you so much for taking time out for the call. It was a good interaction, and we tried and answered most of the questions.

Still, anyone who felt left out, happy to get connected separately or through our relation manager. With this, thank you so much, and look forward to connect again.