Thank you. Good afternoon everyone, and thank you for joining us on Varun Beverages Q4 and CY 2025 earnings conference call.

We have with us Mr. Ravi Jaipuria, Chairman of the company; Mr.

Varun Jaipuria, Executive Vice Chairman and Whole-Time Director; and Mr. Raj Gandhi, President and Whole-Time Director of the company.

We'll initiate the call with opening remarks from the management, following which we'll have the forum open for a question and answer session. Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier.

I would now request Mr. Ravi Jaipuria to make his opening remarks.

Good afternoon everyone, and thank you for joining us on our earnings conference call. I hope you have had a chance to review our results presentation for the fourth quarter and year ended 31st December 2025.

CY 2025 was marked by steady execution, despite weather-related disruptions in India during the peak summer season. For the full year, consolidated volumes grew by 7.9%, driving revenue growth of 8.4% and EBITDA growth of 7.2%, while PAT increased by 16.2% to ₹30,620.4 million, reflecting the resilience of our business model and the strength of our on-ground execution.

Volume growth in India was impacted during parts of the year due to unprecedented heavy rainfall throughout the year. However, performance improved meaningfully in quarter four, with domestic volumes growing up by 10.5%, reflecting the strength of our wide distribution network and strong brand portfolio.

The greenfield plants and backward integration facilities commissioned during the year are progressively stabilizing and are expected to support higher volumes and operating leverage in the upcoming season. Our international operations continued to scale well, led by Africa.

International volumes grown by 10% in quarter four, with South Africa delivering healthy volume growth supported by expansion in general trade reach, addition to visi-coolers, and continued progress on backward integration and capacity enhancement, strengthening supply chain efficiency and cost competitiveness. During the year, we announced the proposed acquisition of Twizza in South Africa, subject to regulatory and other approvals.

The company has three manufacturing facilities including backward integration, which will significantly enhance our manufacturing footprint and route-to-market capabilities in Africa's largest soft drink market, while offering meaningful synergies with our existing operations. We also continue to expand our product portfolio and categories.

The snacks business in Morocco has ramped up well. Distribution of snacks in Zimbabwe and Zambia is gaining traction.

Our balance sheet remains strong, supported by healthy cash flows, providing flexibility to support organic expansion, invest in cold chain and distribution infrastructure, and pursue value-accretive strategic opportunities in line with our commitment to delivering value to our shareholders. The board has recommended a final dividend of ₹0.50 per equity share, subject to shareholders' approval.

Looking forward, we remain confident in the long-term growth potential across India and our international markets, supported by favorable demographics and rising incomes. Backed by adequate capacities, a diversified portfolio, and a strong distribution network, we believe we are well-positioned to deliver sustained and profitable growth and create long-term value for all stakeholders.

I would now like to invite Mr. Gandhi to share the key highlights of our operational and financial performance.

Thank you.

Thank you, Mr. Chairman.

Good afternoon and a warm welcome to everyone joining us today. Let me provide an overview of the financial performance for the fourth quarter and the year ended 31st December 2025.

Revenue from operations adjusted for excise and GST increased by 8.4% to the level of ₹216,853 million in CY 2025, in line with steady volume growth. Consolidated sales volumes grew by 7.9% to a level of 1,213 million cases as compared to 1,124 million cases in the CY 2024.

In Q4 CY 2025, consolidated sales volumes increased by 10.2% to 237.1 million cases from 215.1 million cases in Q4 CY 2024. The growth was supported by healthy performance across both India and international markets, with India volumes growing by 10.5% and international volumes by 10% during the quarter.

For the full year, CSD contributed 73.9%, non-carbonated beverages 5.9%, and packaged drinking water 20.2% to the total consolidated sales volume. In CY 2025, the mix of low sugar and no sugar products increased to the level of approximately 59% of consolidated volumes, reflecting our continuous focus on healthier beverage offerings.

Net realization per case improved by 3.4% in Q4 CY 2025 to ₹177.3, driven by improved realization in international territories. For CY 2025, net realization per case increased marginally by 0.5% to ₹178.8.

Our gross margin for the full year remained largely stable at 55.2% compared to 55.5% in the previous year. EBITDA for CY 2025 increased by 7.2% to the level of ₹50,493.7 million, with EBITDA margins at 23.3% as against 23.5% in CY 2024.

During the quarter, the Government of India notified the four labour codes consolidating the existing labour laws, resulting in an incremental cost impact of ₹14 crores roughly, which has been recognized under employee benefits expense. This impact was absorbed within our overall operating performance.

In Q4 CY 2025, EBITDA increased by 10.2% to the level of ₹6,329 million, reflecting improved operating leverage as volumes recovered. Profit after tax for CY 2025 grew by 16.5% to the level of ₹30,692.5 million from the earlier level of ₹26,342.8 million in CY 2024.

This is driven by volume growth, lower finance costs, and higher other income, including interest from deposits in India and favorable currency movements in international operations. PAT for Q4 CY 2025 increased by 36.6% to the level of ₹2,672 million.

Depreciation increased by 28.4% during the year primarily on account of commissioning of new greenfield plants in India and brownfield expansion in international territories. Following repayment of debt from QIP proceeds, finance cost in India remains negligible, in international markets finance cost is primarily attributable to South Africa including fair value adjustments of leases under Ind AS 116.

During CY 2025, we capitalized new capex of approximately ₹45,000 million, of which approximately ₹16,500 million was incurred in CY 2024. This primarily included capex of around ₹17,000 million towards setting up four greenfield production facilities in India at Prayagraj in UP, Buxar in Bihar, Damtal in Himachal Pradesh, and Mendipathar in Meghalaya.

We also incurred approximately ₹3,000 million towards brownfield expansion in Silchar and Gorakhpur in India. In international markets, capex of about ₹13,000 million was incurred, which included commissioning of a PET line and backward integration facilities in DRC, setting up of snack manufacturing facilities in Morocco and Zimbabwe, and installation of new can line in South Africa.

The balance capex comprised investment in visi-coolers, glass bottles, pallets, vehicles, right-of-use, and impact of foreign exchange fluctuations. As on December 31st, 2025, capital work-in-progress and capital advances stood at the approximate level of ₹5,500 million, largely pertaining to ongoing phased expansion projects and support infrastructure across domestic and international operations for 2026 or 2027 seasons.

As on 31st December 2025, the India business continued to remain net debt-free, with free cash of approximately ₹12,250 million. At the consolidated level, net debt stood at a very negligible level of ₹256 million at the year-end.

During the year, CRISIL upgraded the company's long-term credit rating to AAA/Stable, reflecting the strength of our balance sheet and cash flow profile. Looking ahead, with the stabilization of newly commissioned capacities, expanding backward integration, strengthening distribution and cold chain infrastructure, and a diversified product portfolio across beverages and snacks, we remain well-positioned to drive sustainable growth, improved operating leverage, and deliver consistent performance across domestic and international markets.

On that note, I come to an end of our opening remarks and would like to now ask the moderator to open the forum for any questions or suggestions that you may have. Thank you.

Thanks. My first question is on the India business.

If I see India volumes has grown double-digit, 10.5%, but India sales has grown around 6%. There's a gap of 4.5%.

If you could explain how was the mix? I do understand the CSD, water and all that, but within those segments, how was the mix?

Second, what will be the outlook, say, in March quarter on this? Do you still expect the pricing mix to be slightly negative?

Because I do see gross margin also being slightly down by around 30-40 bps. That's my first question.

Thanks.

Hi, good afternoon, Abneesh. Abneesh, the margin of 4% lower is because the mix doesn't change that much.

For us, very important is the season was bad, year was bad, and due to competitive scenario, everyone was trying to discount the products. Instead of that, we focused on the market.

We upgraded few of our packs and maintained not only now, and for all times, our past 30 years history of volume growth, which is paramount for us. 3-4% in the off-season in a otherwise weak quarter is not that important.

In a busy season, you will see that increased volume will offset any cost impact.

If you look at it, overall, we have always said each quarter cannot be looked at. If you look at the full year with the worst season this year coming in '25 with the rains and the highest competition coming, if you look at it, we have still gained in overall margins.

With a 2% sales volume growth, our EBITDA margins have not gone down, rather gone up. We have always said that this is high EBITDA margins.

We've always maintained 21-22% margins, but we're still doing much better than that. We believe going forward also, with hopefully this season opening up, there should be much better margins and much better growths coming this year.

Temporarily each quarter cannot be the reflecting point.

Understood. That was my next question.

You said the season seems to be opening up, and last calendar year, we did see most of the summer categories see very unfavorable climate, which could course correct this year. Any initial expectation, how do you see this quarter and next quarter given base is a bit favorable?

I do understand the second quarter of the calendar year, the 15% growth is there, but that was on a very soft base. Next two quarters, you have a very soft base.

Any comments on how you see demand?

The first quarter was a decent base last year also. We grew at 17-18% last year, first quarter the base was not soft.

Yes, the second and third quarter last year were very soft, which are our main quarters. What I'm saying is even after having a very soft two quarters and our volume only growing 2%, we have maintained our EBITDA and margins have gone up, and even after adding four new plants, which have added to our costs considerably.

We have made sure that we have maintained our margins and so hopefully with a little favorable weather, we only see much better projections this year and not weaker.

Thanks. That's all from my side.

Thank you.

Hi, sir. Thanks for the opportunity and congratulations for a good volume growth pick-up.

Sir, as you mentioned, in quarters with low seasonal variations, our volume growth has returned to 10%, which was visible in both Q1 and Q4. Now that the base is comfortable as the peak season was impacted, just checking, would mid-teen kind of volume growth in CY 2026 be a tall ask, or this is an achievable number if the season sort of remains as per the normal trends?

We've always said double-digit growth in India is not looking impossible, and we still stick to that. I think there's no reason why this year we should not get that.

Unfortunately, we've never had a rains like we've had in the last year, if reasonable weather is there, there's no reason why we should not have the double-digit growths which we are anticipating.

Yes, sir. Sir, double-digit you have maintained in normal years, since the base was only 1-2% growth, so that's the reason I was checking, can we improve the outlook towards mid-teen, or we will still like to maintain that double-digit kind of...

We would like to maintain that, but you can pray to the weather gods and hopefully we'll do better.

Sure, sir. Sure.

Secondly, we always used to provide some data around our distribution expansion in the Q4 PPT, but this time around that data is not available. If you could throw some light as in where our distribution network currently stands at and how many visi-coolers we have placed for the year?

We feel that we are compatible to the industry and we are providing as much or more than what the industry requires. The figures we don't feel it is necessary to be given every time, we've not given this time.

Sure, but the expansion would have happened, right?

Unfortunately, gives information to our competition, which we would not like to give. We've been expanding and we are doing what is required for the market, and we have been putting the visi-coolers and expanding our routes as per required in the market.

That's fair. That's fair, Mr.

Jaipuria. Last question, wanted to understand the revenue contribution from snacks in CY 2025, and because we have recently commissioned a plant in Zimbabwe as well, what is the run rate that we are foreseeing for this business in CY 2026?

The snack food revenue has been ₹340 crores for the year 2025. I think 2026 we'll have a much better realization of that because Morocco only started May-June, and by the time it really got commissioned and ramped up was already the fourth quarter.

Zimbabwe actually has just started in December. I think Zimbabwe will have a full year this year, we expect much better and much higher volumes in '26.

Sure. Sir, just a small bookkeeping question.

Whatever the volumes that we report for our international business, this does not have any contribution of snacks, right? I just wanted to check as in from a bookkeeping modeling perspective, how should we...

It has snack volume also in it. Value.

Okay. Excluding that, if you could give us some perspective as in like-to-like, what is the volume for beverages, international beverages in CY 2025?

It will make a very small difference because the total volume is 300 and odd crores.

Value.

In value. It will be very small.

In volume it will not really make any...

Sure, sir. Sure.

Sure. Sure.

Thanks for taking my questions.

Yeah.

Hi, sir. Just trying to get some idea on your India margins.

CY 2025, we have reported all-time high India EBITDA margin or rather standalone EBITDA margin of close to 26%. Now going ahead into CY 2026, there are a couple of opposing forces.

One is the volume-value gap, which might to some extent continue in CY 2026 as well, which will put some downward pressure on the margins. On the other hand, you will have a higher sort of volume growth, which will generate some amount of operating leverage.

How do you see these two forces interacting? Will it be a net positive, net negative, and how do you see margins for next year?

I know you have been earlier stating that India margins are quite healthy and we can maintain 22-23%, but now we are at 26%, and frankly no one takes that 22-23% number seriously. If you can give some realistic sort of guidance for CY 2026, it will be very helpful.

Thank you.

Realistically, if we can maintain anywhere close to this, I think we should be very happy. These are actually much better than any normal numbers in soft drink industry.

We will be very happy if we can maintain anywhere close to this numbers. Our guidance has always been 22-23%, has never been higher than that.

I still hope with the volumes coming this year, we should be able to maintain our margins somewhere close to this.

Very, very helpful, sir. Yes, sir, I must commend you for the great work you have done in terms of bringing up the India margins.

Second question is on the international business. Can you give some kind of idea on the foods business?

While this year is whatever, ₹250-300 crore kind of a number, how do we build in growth here? If you can't give a exact guidance here, at least help us think about how to approach this topic in terms of either market sizes, market shares, or capacities, or any other way as to how to think about this, where this 200 or 300, ₹250 or ₹300 crore, where can this number be over a two to three-year period?

I think first of all, it's a bit too early because there's only one market where we've had at least 6 months of manufacturing. The other one is only maybe 2 weeks, it's too early to really say.

Although we have been in the market distributing, but producing and distributing is two different scenarios. I think give us a couple of quarters to really give you the right feedback.

On a general tone, I think the markets are large enough, and we expect at least high teens or even higher than that growth coming. On a number, couple of years, I think for this to go to close to $100 million is not a unforeseen number.

That's what can happen with two or these three territories. That's what it looks like, but give us little more time to understand the market better, but growth will be very high and good.

Got it, sir. Very helpful.

Thank you and all the best.

Thank you.

Hi. Thank you for the opportunity.

The first question, just wanted to bring the focus back on realization for India business. The purpose was, in the last few months, we did see upsizing of your ₹20 pack, right, from 250 ml to 400.

I think this is assuming this will continue going into the season, do you think this volume-value gap will sustain, or it could even worsen from here? The second bit I wanted to understand was any thoughts on would you like to play the ₹10 price point more aggressively in the coming season?

This upsizing had started in the season itself. The main effect of our marginal difference is because of the seasonality, and because of the low volume growth, and our expenses have gone up because of four new plants coming up by the end of the season this year, in '25.

We have not been able to get any benefit out of those plants. Which we believe we'll start getting this year.

We expect volume growths to be reasonably healthy, and because of that, we don't see any marginal dilution. Even though the upsizing has happened, and because of that, we expect the volumes to be much higher, and that will cover up our marginal issue.

We are quite bullish on this year, because after having going through such a nasty year, which was really the worst year we have seen in the last few years in our industry.

Sure. My question was actually more on realization, maybe your value growth continues to lag volume growth.

That's what I was trying to understand better. EBITDA margin, I take your point.

See,

I think it's been a mix of things, right? Especially if you look at quarter four, it's not only because of upsizing.

Quarter four usually after the year people have had, the discounting in the market has been much higher. It's funny that when the volumes don't come in, people end up discounting and throwing the kitchen sink, right?

There's been a lot of capacity that has been added. Now going forward looking at this year as well, what we're seeing at least is that the discounting isn't as rampant compared to what it was, because a lot of stock build-up which happens, and the stock if it doesn't get liquidated, then people of course put discounts on it.

There's been an impact in quarter four that as well. Balance, yes, we have upsized.

We are hoping that the volume growths come in for next year, and the revenue margins, at least on an absolute basis, we're able to cover up and grow faster. Now how the market reacts and what further pricing happens, that I can't probably answer right now.

That's the first part. The second part of the ₹10 portfolio, we have launched it in some places, which is West Bengal and Northeast.

We'll be very, very surgical with it. We're not planning to make it a pan-India launch.

Wherever it's really necessarily need to launch it, we're going to do that. We're still in early phases right now.

We've just launched what, 15 days back, and we're waiting to see as the season opens up, how it ends up doing.

That's very clear, and thank you for that. The second question I had was if you could share or give some color on broader capex plans for CY 2026, and share how would it look for both India and overseas business?

Thank you.

I think India business, we are not looking for any major capex this year. We are not putting any plants.

We have enough capacity, there'll be very low capex in India. Internationally, there will be capex mainly in South Africa, but not that large.

I think only one brownfield capacity is coming up in South Africa, and it won't be very large. I don't think there'll be major capex this year.

Not Twizza.

Except the acquisition of Twizza, which we've already announced.

Understood. Thank you so much.

Latika, just to add what Chairman has said, the South Africa is going to be a star territory, and to totally avail benefit of that and the branding and the market opportunity, the purpose which is already created, we are going to add 70-80% capacity by the inorganic, that acquisition of Twizza, which on 21st December we have already announced. There total organic, inorganic, we should see the growth something like maybe 80% or higher.

Understood. Thank you.

Thank you for this.

Hi, thanks for the opportunity. Just a small follow-up on the response that you just gave.

In terms of pack upgrades, 250 to 400 ml, is it largely done? Should we assume that for December quarter for the entire portfolio wherever you have plans to increase pack size, that full impact is visible in the realization of December quarter?

Or will there be more during the course of this year? That is one.

Second is, I gather that you've also sort of selectively launched ₹10 price point pack. Any sense you can give us what are your plans for the next year?

Will it by any chance be more than 5% of your portfolio in terms of overall volumes, or will it be consciously restricted to below 5%? That's it from my side.

Thank you.

All the upsizing has been practically done in the quarter. As far as your ₹10 price point, it will be surgical as my son said, and it won't be more than 5-7% of our portfolio.

Thank you very much. That's it.

Hi. Good afternoon.

Just two questions. One was in international.

Any sense you could give us of what constant currency kind of growth would be, because you're seeing just a 10% growth in volume, but optically looks like a 20%+ growth there on the revenue side. Given what's happened with currency, some sense on what would have been the currency impact this quarter, and how we should, I know it's hard to say, but how can we see it going forward?

That's my first question.

The main currency advantages would come starting from next year, because in Africa, we normally carry 3 to 4 months, or even sometimes higher than that, stocks. Those stocks were already paid for at a much higher price, which were bought when the currency was not at that peak.

I think the real currency benefits in operational and cost of operations will start showing from this year onwards. What was your other question, sorry?

The second one was on India business. You spoke about the SKU and pack changes, but I just wanted to understand about going into the summer, are there plans in terms of product innovation as well, some white spaces that you probably would not have filled up, etc.?

Anything to look forward to in the next 2 months going into the summer? Should that also be something we should be watching for?

That's my second question.

Absolutely. No, I think definitely.

We're quite clear on our strategy. A differentiated product portfolio what we have today, which is working well for us, is of course energy.

There will be a newer launches and flavors in energy as a category. You're aware we've launched the mid-pricing energy, which is Adrenaline Rush.

That's only been launched a few months back. Given that it was off-season, we will expand it now, and of course with PepsiCo work on a very strong customer engagement plan as well, including some ATL moneys which will be spent.

Energy, you will see some innovations happening. At the same time, the jeera space has been very exciting, and of course we've been getting a lot of questions that are we doing something with jeera?

About March, we will be launching our Nimbooz jeera range as well. That's the second thing what we're launching in a big way.

Under Nimbooz, which is obviously growing very, very fast for us and doing phenomenally well, we will be launching more flavors and price points in that. There is a lot of exciting stuff which is going to be there in the season.

Great to hear. The last one was on distribution.

While you can't give exact data, but is it fair to understand that CY 2025 was a year where distribution expansion may not have been very sharp as you were obviously dealing with a one-off season, and it could be stronger going into CY 2026? Is that a correct assumption to be made, or that CY 2025 was also okay?

Just sense.

No, CY 2025 was good. See, what happens is that since a large part of our business is still driven through rural markets, those retailers don't end up buying.

Even though you end up creating distribution and creating distributors and creating logistics and infrastructure, the buying pattern doesn't really build up because in rural people don't end up buying. It's not that you've not increased your reach to those outlets, it's just that the throughput from those outlets what you expected hasn't come.

There's been a distribution expansion, and for '26 as well, we have gone through the entire exercise of further adding, because we believe it's going to be a great season this year. You will start seeing the offtakes and the impact as the season picks up.

Excellent. Wish you all the best.

Thank you.

Thank you.

Good afternoon to the team and thanks for giving me the opportunity. Sir, I wanted an understanding regarding your alcoholic beverages MOU.

You have mentioned that alcoholic beverages in the MOU and the concerted distribution agreement in select African markets. Sir, how should we think about capital allocation and management focus between the core non-alcoholic portfolio and these nascent categories over the next 3 years?

Sorry, it's not clear. Can you just repeat yourself?

Am I clear now? Slightly better.

Thank you. Okay.

I wanted a bit understanding regarding your alcoholic beverages MOU. You have mentioned that alcoholic beverages in the MOU and the concerted distribution agreement in select African markets.

Sir, how should we think about capital allocation and management focus between the core non-alcoholic portfolio and these nascent categories over the next 3 years? We're starting with Carlsberg in Africa, but the capital allocation will not be so large.

We'll be starting with one plant this year. The overall capital allocation will be not so large comparatively to the overall, and we don't have much capex this year anyway.

All right, okay. Second is around just one clarification that employee benefit expense is grew by 22% YoY in quarter four, significantly ahead of revenue growth of 14%.

I want to understand how much of this increase is attributable to new plant staffing and international scale-up versus wage inflation, and how should we model employee cost as structurally higher percentage of sales going forward? We're not able to hear you.

Can't hear you properly at all. Am I clear now?

Hello? Yeah.

Better. Yeah.

I was understanding regarding our employee benefit expense, which is grew by 22% YoY in quarter four, significantly ahead of revenue growth of 14%. I want to understand how much of this increase is attributable to new plant staffing and international scale-up versus wage inflation?

How should we model employee cost as structurally higher percentage of sales going forward?

See, this is although single digit, 8-9% employee cost, which was incurred for these four plants last year, while we could not make use of the same. Apart from that, two more things which we mentioned.

One, the labour code which has been implemented, passed, cost of that also has been absorbed in this quarter. Secondly, we had a

VBL 30-year completion celebration, and there's a certain cost built-in only for this quarter for that event, which is a one-time cost which has been built-in. Hence, you're seeing the increase in the employee cost.

Which is only one time.

Which is only one time. Thank you for clarification.

Thanks.

Hi, team. Thank you for taking my questions.

My question is regarding to better understand what is the cost impact with upsizing of our ₹20 pack, and what will be the cost impact if the revenue mix or the volume mix of ₹10 pack increases to 5, 5% of our sales?

Yash, first of all, 250 to 400, the mix of 250 in the base itself is not more than 10-12%. Even if we had to do the 100%, it's going to be 1/10th of the incremental cost.

On the 5 ₹10 pack, what Varun stated, is going to be something which is going to be surgical. However, there our this thing is because it's juice-based, our star performer Nimbooz, it's going to be 5% juice, which will entitle us to a duty instead of 40 to 5%.

It's not going to be that impactful, which others may have. Third is, it's going to be healthier product with sugar-free.

We have all levers with the experience of this industry. Whatever we'll be doing will be absolutely profitable, that, and having said, the focus is going to be a volume growth like in the past with maintaining the bottom line.

However, little bit here and there can always happen, but broadly is to sail through the way we have been doing in last 30-body years.

Understood, sir. Just for general understanding, on the 10% portfolio also increasing our upscaling from 250 to 400 has 10-20% impact on profitability on that part of portfolio, or my understanding is wrong?

The one, it gives the volume increase and operating leverage. Second, see what happens is there are a lot of costs which are variable.

The GST, which is 40%, is variable based upon the selling price. My concentrate price is variable.

Then my preparedness on the zero sugar or low sugar is much better than others. It's going to be lesser than 10%.

Also the discounting varies, it's not that big a impact technically.

Got it. Thank you for taking my question.

Good afternoon, sir. My question is related to the international margins.

If you can share the EBITDA margin of Twizza, it would be helpful. Also that the June quarter and September quarter, the EBITDA margins declined in the international or ex-India operations.

This quarter has been somewhat stable. How do you see that panning out in the next 1 year also?

With the increasing contribution of international ops, the consolidated margins will go down. Or do you still see that the impact not being so much?

If you can just help me understand that the movement in margins,

sir. Twizza is to be consummated after the Competition Commission approval.

Second, in South Africa, our struggle is more on the capacity side. Once we get the capacity, margins you can take what we are doing today in South Africa, same we will have from three additional locations.

It will help me, one, the freight inward and freight outward because I will be near the market. Secondly, in Twizza, the land and building are owned by Twizza as against in BevCo, as we have stated in the past, land, building are on rent.

Third, this company has got own vehicles as against BevCo, which didn't have. Next, Twizza plants are enabled or equipped with solar energy power, which BevCo plants were not there.

Margins there, what you can do is, as a guidance, will be even it will be margin-accretive for BevCo, capacity-accretive, and freight-reducing because we'll be nearer the market. Instead of 5, we'll be reaching the market from 8 different locations.

With batch size and other things going up, the economies of scale will start accruing to us. Then we'll become little larger player in that market.

Sir, overall international margins will still be at similar levels of 16, 16.5%, or we can expect them to inch more towards the Indian margins?

Towards Indian margin, ultimately it has to go because backward integration and other initiatives which we are doing should contribute towards that. Yes.

That will be more like a 4 to 5-year kind of a horizon, or it can be sooner as well?

No, it'll be sooner, but not 4-5 years, but not everything will not take effect immediately. I would say in the next couple of years.

Right, sir. Thank you.

A quick clarification on the taxes. The taxes of ex-India operations seem to have gone up in this quarter.

Can you just help me understand that? If you have a PBT of ex-India around ₹17 crores, the taxes are similar.

How does that work?

Your question is ex-India has gone up. If that is the question, then yes, because of Zimbabwe has come in the tax bracket.

Earlier we were availing the tax break.

Right. Your ex-India PBT is around ₹17 crores, if I'm right in Q4, and similar amount is the taxes.

Is this going to be similar trajectory, or is it going to be a certain percentage of a PBT going forward?

Here what happens is there some country may have the same profit, and some may have one country to another, set-off is not available. Slight mismatch is always quite likely, but overall percentage is in international is lower than that of India.

Okay. All right.

Thank you, sir.

Thank you.

My question is you have added alcoholic beverages as a category. Can you talk a bit more about that, when you want to enter what products and when you can start?

We have just said that we are starting with Carlsberg in Africa. We are putting our first greenfield plant starting this year, which will hopefully be ready by the end of next year.

Okay. This is strictly for out of India, right?

This is not for India.

For the time being, we're starting Carlsberg, and we are still looking for other things, but at the moment it's Carlsberg for Africa.

What was the capacity utilization this quarter with the added capacity?

You're talking of non-alcoholic or...

Non-alcoholic one.

No, no. Quarter last quarter has no capacity issues, because our capacities are based for the second quarter of the year, and we have adequate capacity available.

I would say we have 50% more capacity available than what we have done this year.

From last year Q2, this year Q2, how much capacity you have added?

Four plants, I think 20-something. It's a 20%+ capacity is added in this year, which could not be used.

Last year also we have added the capacity. We have...

Between the last 2 years, we have added close to 40-45% capacity. That capacity is available for us.

That should be hopefully used in the Q2 of next financial year, right?

I hope so. It won't be that much, but there is enough capacity available, if need be.

With the cash on the books you're sitting at and no major capex coming in, as you have said, and you haven't even increased the dividend payout, what's the strategy on that? How do you plan to use the cash then?

Partly we have just acquired a company in Africa, which will be paid for, and we are putting up brewery also in Africa. Balance, we have to see.

We want to wait and see the season how it goes. In case the volumes become larger, then we have to always keep on looking at expansion.

In certain territories, even though overall volume doesn't grow to that level, certain territories grow faster, then we have to increase the capacity in those territories. If everything goes well, maybe we will increase the dividend.

You're sticking to the double-digit growth target for the current year as well.

For the time being, that's what we are saying, because till the weather opens up and till we see what's happening, and it's the second quarter which really makes the big difference.

Okay. All right.

Thank you, sir.

Thank you.

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