Fourth Quarter/Full Year - Dabur India Limited

Sunil Duggal : Absolute excise numbers, okay, just hang on for a minute, we will give themto you. I have the percentages but not the absolute numbers. The net saving, just toanswer your question in a different way, has been 20 crores.Princy :Okay. No problem. And also on the, given that you have a very aggressive pipelinefor new products, what would be the guidance in advertising revenue, I mean, would they bestable or could we see them going up as a percentage of sales.Sunil Duggal : We would look at growth from 14.5% going up to around 15%.Princy :Thanks very much Sunil. Thanks a lot.Harish Zaveri (Edelweiss Capital) : Hi Sunil. Just a call on Balsara’s revenues, last quarterwhen you acquired the company, at that point in time we were told that Balsara hadrevenues of around 176 crores a year ago, but they were declining. So, what sort ofamalgamated Balsara will you take into account from 1st of April, that is one question. Andthe second part is, we do seem to be seeing a stronger demand happening across FMCGactually, and I just want to know the dynamics, the underlying dynamics of what has actuallychanged. Is it really buoyancy of the economy, is it people wanting to upgrade, what hasactually changed, within your product portfolio are you actually seeing people move up thechain say to your higher end products or is it basically new products which are driving overallsales?Sunil Duggal : To answer your first question, we would be looking at revenue base fromBalsara, both overseas sales and domestic sales, in the region of 200 crores next fiscal, justto give you a feel for Balsara numbers. Current year (2004-05), they would be more in theregion of around 150, but then there was substantial amount of clean up obviously in the lastpart of the year and pressure on the Balsara business because of the consolidation process.We do not see any great deal of movement in terms of people going up the value chain, thatdoes not seem to be visible. What is happening is that the value proposition at the economylevel is improving dramatically. So you have better products coming at lower price points,with this for example in toothpaste, in shampoos, etc., so people are buying more of thoseproducts. The economy segment is today the fastest growing, and hopefully we will seepeople go up the value chain over a period of time, but it is not very visible now.Harish Zaveri : Okay. I missed last part of your answer to Nikhil actually, in which you werementioning that home care enjoys better margins within Balsara’s product portfolio. Butwithin the portfolio itself you would be taking a call on within three months on a particularproduct line, I missed the last part of your answer…Sunil Duggal : There is a comparatively minor product called Odopic which is a scourerwhich has got strong franchise in West, but not much elsewhere. So we have to take a callon that whether we would like to scale up the product, maintain it, or scale it down. Andother than that, in terms of the other three brands, Odomos, Odonil, and Sanifresh, wewould invest behind them substantially.Harish Zaveri : Okay. Overall in terms of your own product portfolio, we have seen healthsupplements actually decline…Sunil Duggal :The Chyawanparash, yes, honey has actually grown…Harish Zaveri :And clearly it was like one of your, if I were to look at the erstwhile Daburportfolio, it would be like 2/3rd of your portfolio, this would be like almost 13-14% ofrevenues, maybe it has gone down over this period of 12 months or so, but clearly in yourPage 6 of 6