Fourth Quarter/Full Year - Dabur India Limited

core portfolio, two brands, Lal Dantmanjan and chyawanparash, don’t seem to be doing aswell as you would have possibly like them to…Sunil Duggal :That is right, Chyawanparash only in the current year. Even LDM for thematter, only the current year. But I think the issues with regard to LDM are more structural,more environmental, basically lower growth in tooth powders, shift of consumer preferencesto toothpaste. We are well prepared for that because of its expansion in toothpastefranchise. The issues with regards to chyawanparash I think are more one off, partly onaccount of environmental factors, partly on account of things within our control. Sochyawanparash we expect to put quickly back on rails. In the case of LDM, while notbudgeting or really expecting a decline to happen, we would be prepared for a decline byscaling up toothpastes to counter that.Harish Zaveri :In your opening remarks at the end of your opening remarks you hadmentioned that you would be looking crossing the 2000 crore mark, that was what, by FY06.Sunil Duggal : 06-07. We have come pretty close to that, but crossing it, I think the milestonewould be crossed in 07.Harish Zaveri : Fair enough. Thanks a lot sir.Sunil Duggal : Thanks.Balaji (Sundaram Mutual Fund) :Yeah sir, just one small question. Any of the sales that wasmade during this quarter, was it on a returnable basis?Sunil Duggal : No, no… We don’t do any such sale. Nothing was on returnable basis. Like Isaid we took a hit on sale, we could have sold more if we had given in to demands of thetrade that we treat it as returnable basis or consignment sales or whatever, but we didn’t gointo the temptation. That is why you would see little bit lower growth in top line in quarterfour. Our trade channels are very clean, you can see it if you go to the market. We havevery high levels of hygiene on the ground and that is one of the reasons our business hasgrown progressively over the years.Balalji. :Okay. Thank you.Madhusudan (Citi Group) : Congratulations to the team. Actually I had a small question,since you are making the saving on excise, how much of it is being re-ploughed in thebusiness?Sunil Duggal : Well it is hard to answer the question, but I would say part of it beingdeployed. Part of it is flowing down into the bottom line, part of it is being deployed in adpro,and also to capture these excise benefits, we have incurred some costs, but that was onetime. But substantial amount of these benefits would go down to the bottomlineMadhusudan :Okay, and just to get this number ahead, you said Rs. 33 crores is the savingyou had on excise right?Sunil Duggal : Rs. 20 crores. See excise savings, you have to look at it a bit more carefully.There is gross excise, which come to a very high number. But there are some costs such asloss of first point sales tax, freight disadvantage, and very importantly loss of MODVAT, sothey scrape away around half of the gross gain. So what you see is around half of what thegross excise benefits are. While the benefits are substantial, they are not as much as theyappear on paper for excise.Page 7 of 7