Fourth Quarter/Full Year - Dabur India Limited

ecause of the combined businesses. For example, buying media would be under onegroup and the combined business would be able to extract better leverage from the mediavendor. Similarly, for all procurement issues, we have to manage supply chain better, moreefficiently, we have disbanded in fact the entire Balsara clearing and forwarding agentnetwork. We would be better able to manage sales and distribution very importantly. Wehave integrated the entire S&D in the last couple of months of Balsara and Dabur, so a lot ofwork has been done in terms of the synergies part. I think most importantly and hardest toquantify would be the better skills and capabilities, which the Dabur management wouldbring on to the Balsara business, which would enable it to grow faster.Janesh :And what it the timeframe by which you will be matching the margin.Sunil Duggal : Well I would say two to three years, we should arrive at the same marginslevels for the Balsara business.Janesh :Okay, and how much was the growth you had in FY-05 for Balsara?Sunil Duggal : FY-05 it is not growth, because it was the year of consolidation and also inFY-05, the numbers were not did not flow into the Dabur books, so we were able to clean upall the Balsara system and the business. While the numbers are still being audited, it wouldshow some decline in terms of the revenues, but we are looking at very aggressive growthnow going forward for the Balsara brands.Janesh :And sir for the exports, there was a robust growth of 43% in FY-05, what kind ofgrowth do you foresee for FY-06 and what are the markets you are looking at beyond theexisting presence what you have?Sunil Duggal : We are looking at a very strong growth, not much lower than what we saw lastyear. Last year, in a sense, the growth was little bit exaggerated on account of theacquisition which we did in the fag end of FY-04, the full numbers of which came in FY-05and only part of which flowed into the previous year. You can expect very strong growth,much in excess of the domestic business coming from international, and the key drivers ofgrowth as far as current business plans would be markets like Russia and CIS, Nigeriawhere we are setting up a local subsidiary, Bangladesh which would now be scaled upsubstantially in addition to the core markets of Gulf. And UK would be another market, whichwould provide us with substantial growth.Janesh :Thank you sir.Sunil Duggal :You are welcome.Abhijit Kundu (Angel Brokings) :Congrats for a good set of numbers. I just had a singlequestion on your quarterly performance. I just lost the first part of presentation, that’s why.What was the reason behind your lower raw material costs?Sunil Duggal :Just give us a minute to get the numbers. We did save substantial amount onaccounting on raw honey, groundnut oil, amla etc. These were the key raw material itemswhere we realized substantial savings and that meant a decrease of 5.7% of material costduring the fourth quarter. Honey was a big upside, a very big upside, and also groundnut oil,which showed a marked softeningAbhijit :Okay thanks a lot.Page 10 of 10