Second Quarter - Dabur India Limited

Dabur India LimitedOctober 28, 2010Shirish Pardeshi:Just one last question, on presentation page #19 you have mentioned the various growth incategories where I am reading from the presentation if shampoos are grown at 190%, that may bebecause of last year the base was low ?Sunil Duggal:This is in International business. Off a low base of course, but I think what has happened ininternational business is that we have now started focusing on both toothpaste and shampoos asbeing really what will fuel the next wave of growth in the GCC and MENA markets. So we haveput a lot of investment and effort into marketing of shampoos portfolio. We have enjoyed a greatdeal of success in this and we believe that a lot of growth will come from shampoos andtoothpaste in this part of world.Shirish Pardeshi:Very lastly, in the same slide we are reading something by the name Meswak that I guess is atoothpaste. Thanks all the best.Kunal Bhatia from Dalal & BroachaKunal Bhatia:Thanks for taking my question. Sunil just one thing you mentioned before in the call that yourwill be continuing with the debt for acquisition I just wanted to get your sense on like goingforward what line of business would you like to expand into with this?Sunil Duggal:We will continue with our existing lines of health and personal care, we are not totally looking atacquisition in the food and beverage space because we believe the margins there will never bethat attractive, now personal care is really the focus of attention as far as M&A activities areconcerned, but we will also I think at a point in time will start looking at healthcare opportunities.Kunal Bhatia:You are looking more at domestic or overseas?Sunil Duggal:We would like to do domestic acquisitions, but we believe that valuations in India do not justifyany kind of value proposition which the acquirees bring on to the table so the prospects of doingacquisitions in this kind of environment in India I would rate as pretty dim. On the other hand wefind great value overseas and if we considerthe Middle East region as being of equal significancein our scheme of things as India, we would prefer to do M&A activity in that part of the worldwhere valuations make acquisitions accretive almost immediately so it makes much more senseto do some buying there.Kunal Bhatia:Secondly, my question was on price increases, FMCG companies are facing competition in thecurrent scenario, but just wanted to understand when the price increases which has been takenacross, are you all facing any sort of pressure regarding volume growth or are you observing anykind of shifts?Sunil Duggal:The price increases which we have done are pretty moderate so we have always been veryconservative even in the past in taking price increases and we are also pretty conservative indecreasing prices. So we have not seen any impact in terms of growth consequent to these 2%-3% price increases which we have taken.Page 22 of 25