U.S. Markets open in 5 hrs 49 mins

Edited Transcript of GSKCONS.NSE earnings conference call or presentation 13-May-19 6:30am GMT

Q4 2019 GlaxoSmithKline Consumer Healthcare Ltd Earnings Call

May 14, 2019 (Thomson StreetEvents) -- Edited Transcript of GlaxoSmithKline Consumer Healthcare Ltd earnings conference call or presentation Monday, May 13, 2019 at 6:30:00am GMT

TEXT version of Transcript

================================================================================

Corporate Participants

================================================================================

* Navneet Saluja

GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director

* Vivek Anand

GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director

================================================================================

Conference Call Participants

================================================================================

* Abneesh Roy

Edelweiss Securities Ltd., Research Division - SVP

* Anand Kumar Shah

Axis Capital Limited, Research Division - SVP of Consumer

* Arnab Mitra

Crédit Suisse AG, Research Division - Research Analyst

* Harit Kapoor

Investec Bank plc, Research Division - Analyst

* Kaustubh Pawaskar

Sharekhan Limited, Research Division - Senior Research Analyst

* Manoj Menon

ICICI Securities Limited - Head of Institutional Equities Research

* Percy Panthaki

IIFL Research - VP

* Shirish Pardeshi

Centrum Broking Limited, Research Division - Senior Analyst of Consumer

* Anand Kumar Shah

Axis Capital Limited, Research Division - SVP of Consumer

================================================================================

Presentation

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

Ladies and gentlemen, good day and welcome to the GlaxoSmithKline Consumer Healthcare Limited Q4 FY '19 Earnings Conference Call hosted by Axis Capital Limited. (Operator Instructions) Please note this conference is being recorded.

I now hand the conference over to Mr. Anand Shah of Axis Capital Limited. Thank you, and over to you, Mr. Shah.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [2]

--------------------------------------------------------------------------------

Yes. Thanks on behalf of Axis Capital, I welcome you all to the GSK Consumer Healthcare Q4 FY '19 Earnings Conference Call. We have with us the senior management of the company represented by Mr. Navneet Saluja, Managing Director; Mr. Vivek Anand, Director Finance; and Ms. Parul Agarwal, Finance Controller.

So I'd like to hand over now the call to the management for opening remarks. Thanks, and over to you.

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [3]

--------------------------------------------------------------------------------

Thanks, Anand. Good morning, everyone, and thank you for joining the conference call today for quarter 4 '18/'19 and full year '18/'19 results.

We continued the journey of being the Fast Moving Consumer Healthcare company delivering a healthy sustainable growth, the quarter business with strong financial performance, which was in line with past few quarters. The revenue from operations increased by 9% to INR 1,286 crores led by robust volume growth of 6.5%, which is broad based and cuts across portfolio and channel.

Gross margin has improved 135 basis points driven by pricing and robust volume growth resulting in better overhead absorption. We are reflecting inflation in commodity prices for the current quarter.

We are investing competitively behind our brands and increased focus on TV and digital media. Spending during the quarter increased by 13% versus last year. PBT for the quarter increased by 34% to INR 426 crores. The underlying PBT has increased by 20% adjusted for one-off largely explained by tax reversals, which had become time bound and clearing off old vendor balances in current quarter sitting in other income.

PBT growth is driven (inaudible) profit partially offset with increase in employee benefit expenses and advertisement and promotional expenses.

Moving to market share. As from recent reports HFD volume market share MAT March '19 stood at 63.8% and value market share at 53.8%. We continue to drive brand-building activities through stepped up investments in our brand's innovation and consumer connect activities that has helped us to sustain HFD market share. Further, we continue to strengthen our business through continuous innovations and brand-building initiatives. Some of the important initiatives during the quarter were 2018 saw Horlicks Protein+ establishing product superiority through The Better Protein launch campaign supported by the Triple Blend Protein story. In this quarter, Horlicks Protein continued its association with Bollywood actor R Madhavan and brought in a new campaign integral to drive relevance of protein for the India consumer.

Driving on the healthier trend, the brand introduced a no-added-sugar variant to the portfolio from March '19 onwards. The brand is being activated in the next quarter with both consumers, TV, digital activation and experts.

A new campaign has been launched for women's Horlicks on Stories of Strength. This is a digital platform which we have created to talk about stories of women who have achieved big in their respective fields on the back of their physical strength. It is a digitally activation partnered with Femina and other influencers and encouraged women to share their own stories. It was widely covered by leading media houses. This was activated on the occasion of Women's Day. Alongside, we also launched our new TVC with our celebrity Taapsee Pannu.

Boost is strongly associated with energy, stamina and winning amongst kids to enable every kid to play a bigger game, we've launched Boost Camp in March '19, a one-of-a-kind platform wherein champions of various sports will train young kids to be next champions. Boost Camp is digital to start with wherein cricket stars like Virat Kohli, MS Dhoni and Rishabh Pant share training videos on various strategies of the sport. The platform also aims to add quality training modules from the champions in various sports, including football, tennis and badminton in the near future. Because of Boost Camp, we truly believe champions make champions.

Summarizing the full year financial results for the year '18/'19. The year has witnessed a strong performance, volume-led profitable growth. We delivered comparable revenue growth of 12% to INR 4,782 crores driven by strong volume growth of 10%. Underlying gross margin improved by 200 basis points driven by pricing, cost-saving initiatives and double-digit volume growth resulting in the better overhead absorption.

PBT for the year increased by 42% to INR 1,512 crores. The underlying PBT has increased by 28% adjusted for one-offs largely explained by tax reversal and clearing of old gender balances in current year sitting in other income. PBT growth is driven by improved gross profit partially offset with increase in employee benefit expenses.

We have also achieved a highest ever HFD distribution in the las 5 years wherein our (inaudible) have 1.96 million outlets in current year as against 1.77 million outlets in previous year indicating a growth of 10%. The Board recommend a dividend of INR 105 per equity share of INR 10 each which is 40% higher versus last year. We maintained dividend payout at 45% in line with last year. We are confident to strengthen our leadership in the HFD category with our focus on high science, innovation and sharp customer insights. The macroeconomic environment continues to be a key watch out and moderate growth in GDP and rising inflation. We understand that in the short term, the market growth is likely to get affected by liquidity currents, lower consumer confidence and lower pharm influence.

On 3rd December 2018, the Board of Directors of GSK Consumer Healthcare Limited approved a scheme of amalgamation between the company and Hindustan Unilever Limited subject to obtaining requisite regulatory and other approvals and being approved by their respective shareholders and creditors.

On 23 January 2019, the Competition Commission of India approved and proposed amalgamation and the company has received no objection letter from Bombay Stock Exchange and National Stock Exchange on 18 Feb 2019. The scheme of amalgamation has been filed by the company at the respective National Company Law Tribunals at Chandigarh and Mumbai, presented the company is in process of seeking requisitory -- requisite approvals.

With this, we end our brief update on quarter 4 and full year and open the call for discussions Q&A. Thank you.

================================================================================

Questions and Answers

--------------------------------------------------------------------------------

Operator [1]

--------------------------------------------------------------------------------

(Operator Instructions) We have our first question from the line of Abneesh Roy from Edelweiss Financial services.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [2]

--------------------------------------------------------------------------------

Yes. Congrats on very strong EBITDA growth. My first question is on the market shares. When I see the long-term market share for both Horlicks and Boost, it has been coming off consistently over the last 2 years. So if you could comment on who is gaining? Second is, recently, in the last 3 days, we have seen this new player enter with a very strong brand ambassador V Naresh. V Naresh is targeting around 5% market share in the first year itself. So in your view, how easy is it for these unknown players backed with high advertising and maybe more on pace in terms of positioning, can they get market share easily?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [3]

--------------------------------------------------------------------------------

Yes. Abneesh, thanks for your question, really appreciate it. So on market share, you're right. But the profits which we really have been backing more strongly in the last couple of years is volume share because value market share we've been facing headwinds about 8, 10 years. And the only way we will solve the value share issue is by the high science portfolio, which we have aggressively launched in the last couple of years. Because now with Protein+ and Growth+ coming to the party and we have seen some gains there, we believe over the long term, we have a good solution on high science portfolio. And we will continue to invest behind the high science portfolio to ensure that we do not erode our value share.

On volume share, we're pretty much stable. We haven't lost too much. And we believe that if we continue (inaudible) the market, we will get some volume share from that particular aspect also. We have some more interesting extensions lined up for launch to ensure that we capture more market share in the coming quarters there.

Who has been gaining? I think the biggest gainer has been Bournvita and then there are some fringe players but Bournvita has gained market shares in the last few quarters, especially in the last 12 weeks, this is the last quarter.

Your question on V Naresh, we really won't like to comment on competition, that doesn't look effective, but my learning is that this is a difficult food, in any case it's a very difficult category to penetrate. A lot of trust has to be built with the consumer. It's a high-ticket value item, right, and it's very, very difficult to get penetration. So we're happy that more players are coming into the category because more the players, the more important this category is going to get. 9 out of 10 kids in India are micronutrient deficient, right. So this is a serious issue of nutrient deficiency. And anybody who comes in, invest a lot in building the category is actually more than welcome from our perspective, yes. But it's tough to get shares.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [4]

--------------------------------------------------------------------------------

Sir, 2 follow-ups here. One, you said Bournvita has been gaining market share. So is it because they have been taking sharper price hike versus you? And second, we have also seen Nestlé kind of player who was not really there in this. They have come out with their own high-protein sachet, targeting the gym and marathon runner kind of consumer and Parag also. So are these companies also cutting down especially on their high science product? So you are doing high science, but now we are seeing in high science new kind of players coming into?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [5]

--------------------------------------------------------------------------------

So yes, I think in the high science, we will see a lot more activity. The reality is that the nutrition category in India is pretty underdeveloped from a high science portfolio perspective. I think the base product, we've had a very good portfolio from last 50, 60 years between various players like Complan, Bournvita and GSK itself. But the high science portfolio has been under, as Anand said, underpenetrated. So I think that you -- we would see as we go forward in the next few years, a lot more activity on the high science portfolio both for kids and across various lead spaces. So we will see brand like PediaSure, Ensure, Nestlé coming in and becoming more and more active in the category. But this is great for the category, honestly. Because if you look at some of the size of the category in terms of health nutrition market, this market can be very, very big whether you pick Milo in Malaysia or you take the combination market in markets like Vietnam. So it's a massive opportunity and it's a very clear lead stage in a country like India where there's massive malnutrition and micronutrient deficiency.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [6]

--------------------------------------------------------------------------------

And sir, my last question is, in this category, clearly e-commerce and modern trade has got resilience. This is especially on the high science. So my question is in e-commerce and modern trade is your market share higher than your Pan-India share? And whenever Unilever takes over in terms of the management control because they have got much higher relationship level with these 2 channels, you -- will you get much higher benefit post that happens?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [7]

--------------------------------------------------------------------------------

Well, my understanding of Unilever sales is absolutely like yours. And I believe their strengths and our strengths can come together and add. One plus one can become three or eleven, whichever you like it. So yes, I think there will be -- the 2 teams coming together would help.

On your earlier question, on e-commerce, yes, our high science portfolio has larger share. If your question is that do we have -- is there a higher share on a high science portfolio and e-commerce? Yes. The answer is yes. Both the modern trade and e-commerce services it's a limited distribution game. So yes, what about a brand like Protein even get over -- double-digit contribution for e-commerce down the year.

--------------------------------------------------------------------------------

Abneesh Roy, Edelweiss Securities Ltd., Research Division - SVP [8]

--------------------------------------------------------------------------------

Sir my question was on its portfolio level not just high science to your portfolio. And I think if your 44% share is there in Horlicks in terms of value, what would be your share in e-commerce and modern trade?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [9]

--------------------------------------------------------------------------------

Yes. It's pretty much in line, but we're a little under compared. And there are different reasons for it, right? And what is the role? So what we go for and I think I talked about in the last call or 2 was that -- for us what is more importantly is the growth of e-commerce and modern trade is going to play in building penetration for our brand there. And in high sciences where we really give a lot of focus on this particular aspect because these major brands like Base Horlicks have a mass distribution and you really don't really need to be best-in-class in e-commerce over there because by and large we can sell a lot more in e-commerce through promoting. That may not be the best thing. What we need is category penetration or category upgradation. So we invest a lot on those who are at stake. And over there with brand like Protein+, we have disproportionate shares there. Having said that, we make sure we're coming in with the strategy where we look at with a great consent, I think they would and we'll wait for that particular chapter to start there.

--------------------------------------------------------------------------------

Operator [10]

--------------------------------------------------------------------------------

Your next question is from line of Sameer Gupta from IIFL.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [11]

--------------------------------------------------------------------------------

This is Percy Panthaki here. My first question is on the 2 variants Protein+ and Growth+. So for Protein+, can you give us an idea what it contributes to your overall top line currently? And what market share does it have within the protein segment? Similarly, for Growth+, what is the contribution to your top line? And relative to PediaSure what would be the top line for Growth+?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [12]

--------------------------------------------------------------------------------

Okay. So for Protein, protein will, if you remember correctly launched in March last year. So there's been about 12-odd months and I'm happy to report that we're doing extremely well. So we are -- we're targeting the 50 crore-plus kind of a number on that brand in this financial year. We already enjoy about 5%, 6% market share of the protein category. So we are doing well, right? And I think we have a right to win on this particular category. On Growth+, the journey is little bit harder and we are growing in that particular brand. But our portfolio right now is we need some modification and we are working on a e-commerce strategy to -- to start accelerating that business. Having said that, the business is doing pretty good at above 35-odd crores. So on an absolute number, it's absolutely fantastic. If we then look at building any business in India in a year, 1.5 years to the level of 35 crores, 40 crores it's tough to be country like India. Having said that, I think we have a science and the requisite expert print to accelerate it even further here. So I'm happy with the Growth+, but I think opportunity does matter, yes.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [13]

--------------------------------------------------------------------------------

So this INR 35 crores for Growth+ is the FY '20 target, right?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [14]

--------------------------------------------------------------------------------

That's right. We are pretty much on to it.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [15]

--------------------------------------------------------------------------------

Okay. Okay. And exactly, I mean, have you found out the reason why it's not up to the mark? What is the reason that you need to fix?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [16]

--------------------------------------------------------------------------------

I think we have a very strong in drinks player. And this is the point that I was even (inaudible) on this particular category, quite easy to win. The good news is once we start winning, right, then you can really build traction here. So we have a very strong in drinks player, in PediaSure. And we'll have to continue to engage with the health care professional which is -- these are serious product in terms of investments from a mother. These are products which are approximately about INR 1,000 a kg, right? And they are expert recommended. So we are expensing our expert capability so that we continue to win in this category here. But it's something which is -- it's not an easy one that you just advertise about more and you start gaining because you got to gain the trust through the science of the expert here.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [17]

--------------------------------------------------------------------------------

Right. And sir, what's the size of that sub-category that INR 1,000 kind of price point what's the size of that?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [18]

--------------------------------------------------------------------------------

Yes. The subcategory must be now -- and don't have it all the times, so I can't let you know. But it's pretty large we can (inaudible) segment is still returning an INR 800 crores, INR 900 crores here. But it's pretty large. I don't have exact but it is large, it is INR 800, INR 900 crores, almost double that -- yes, close to double at times. And the point over here is growing very fast. And it's important that we (inaudible) all of our (inaudible) and there's a lot of opportunity still. So -- and we're part of the trading in it after a long gap in the last 18 to 24 months and we're seeing some very, very good and positive traction there.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [19]

--------------------------------------------------------------------------------

Okay. And can you just give me the volume growth number for Horlicks and Boost separately both for the quarter and for the year?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [20]

--------------------------------------------------------------------------------

Yes. Just a minute, yes.

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [21]

--------------------------------------------------------------------------------

Yes. So of quarter, actually, domestic volume growth was 6%, broadly both Horlicks and Boost was -- at the same level. And full year, HFD volume growth 10%.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [22]

--------------------------------------------------------------------------------

And Horlicks and Boost at around the same level?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [23]

--------------------------------------------------------------------------------

Almost. Almost at the same level.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [24]

--------------------------------------------------------------------------------

Okay, sir. And I would be right in assuming that sachets is growing at a much faster clip?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [25]

--------------------------------------------------------------------------------

That's right.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [26]

--------------------------------------------------------------------------------

Okay. And last question, sir, from my side is, this quarter your other expenses were down 9%. Can you tell us the reason for that?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [27]

--------------------------------------------------------------------------------

So is this for the quarter is it...

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [28]

--------------------------------------------------------------------------------

Yes. For the quarter is what I'm talking about.

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [29]

--------------------------------------------------------------------------------

Okay. There is a 1 point which is sitting in the base, right? So that's the reason you see that this year the expenses have come down, so one of onetime benefits which is in the base.

--------------------------------------------------------------------------------

Percy Panthaki, IIFL Research - VP [30]

--------------------------------------------------------------------------------

Sir, what would be the quantum and approximate -- I mean, nature of that?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [31]

--------------------------------------------------------------------------------

So there are -- there is some provisions, which we are -- we've created in the base to the tune of close to INR 20 crores. And that's what is impacting our other expenses during a quarter.

--------------------------------------------------------------------------------

Operator [32]

--------------------------------------------------------------------------------

(Operator Instructions) We have a next question from the line of Arnab Mitra from Crédit Suisse.

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [33]

--------------------------------------------------------------------------------

My first question was on the sachet business. So wanted to understand what kind of growth have you seen in the year in the sachet business? And what is the salience of sachet now in the overall portfolio? And connected to that is, clearly sachets are means of driving penetration is understandable. Do you think sachets can be a much larger tool than just penetration? Or can this become a much larger segment of consumption? Or do consumers who kind of come into the category then move on to a larger packs in your experience?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [34]

--------------------------------------------------------------------------------

That's should continue to drive penetration, there's no doubt about it. And that's the whole I think intention of the mix. But what's having is do your -- the same question is do you move to -- from sachets to bottles?

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [35]

--------------------------------------------------------------------------------

Yes. I mean in many categories sachet kind of remains the predominant consumption means besides just driving penetration. In this category, your experience, do consumers, once they've come in, do they end up graduating into bottles? Or do they continue to consume sachets as the primary means of consumption, to some extent?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [36]

--------------------------------------------------------------------------------

So. Look, I think the -- I think the public optimism for family health that's the kind of choices we have made. So what sachet does is it makes a product which is loved by the consumer, aspired by the consumer, accessible to them. Because otherwise the price point could be very, very high for them in a bottle layout. So till the time the economic condition really significantly changes, I really believe that they will continue to stick with sachets, buy at a frequency, at which they can afford. So this [jobless] factor is playing and is making sure that the consumers would love your brands, is able to pay only INR 5 and get the drink when he or her child really wants it or desires it. So the second one is a difficult one to answer. I really truly believe as the country will become richer and richer the volume contributions will pick up, you will start seeing that up a little bit, actually at the family level, and as a individual family level.

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [37]

--------------------------------------------------------------------------------

Right. And in terms of the growth in the sachet business this year and the salience that it might be having approximately in the business?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [38]

--------------------------------------------------------------------------------

So sachet has been a growth story for us for some time. So we are seeing consistent high level of growth upwards of 20% quarter-on-quarter basis. And in terms of our contribution, it's close to 10% now.

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [39]

--------------------------------------------------------------------------------

10% would be off value?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [40]

--------------------------------------------------------------------------------

Yes. That's correct.

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [41]

--------------------------------------------------------------------------------

Sure. Then second question was on the related question toward (inaudible) and other expenses. So I was just seeing that not just last year, in most of the previous 4, 5 years, the fourth quarter other expenses have been around 21%, 20% of sales. This quarter as a percentage of revenue is actually significantly lower at 17.5%. So besides that one-off in the base, is there any other cost-saving initiatives which have cleared out this year versus last year?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [42]

--------------------------------------------------------------------------------

Specifically to other expenses, we want to call out (inaudible) to the extent of INR 20 crores. Anything else because of cost initiatives, those are unusual and that continues. But I don't want to comment anything specific to this line.

--------------------------------------------------------------------------------

Arnab Mitra, Crédit Suisse AG, Research Division - Research Analyst [43]

--------------------------------------------------------------------------------

Sure. And my last question is on the ultimate (inaudible) as well. Is there any cost synergies or cost initiatives you're already working on using your combined skill in terms of things like media or any other lines? Or do things kind of only start once the final company merger has happened?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [44]

--------------------------------------------------------------------------------

So at this point in time, we are going through the regulatory approval process, right, and that's expected to complete by year-end. And I think all these synergies, whether it's revenue synergies or cost synergies, we believe (inaudible) post approval.

--------------------------------------------------------------------------------

Operator [45]

--------------------------------------------------------------------------------

We the have next question from the line of Harit Kapoor from Investec.

--------------------------------------------------------------------------------

Harit Kapoor, Investec Bank plc, Research Division - Analyst [46]

--------------------------------------------------------------------------------

I just had one question. You said you are facing a certain level of inflation in raw material, so just wanted to get a sense about where are these pockets of inflation? I assume there more on the SMP side, and whether we have taken any pricing action on this?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [47]

--------------------------------------------------------------------------------

Yes. So 2018 has been a very good year for us because we somehow managed to at least manage the deflation in our commodities during the year. For 2019, as I talked about, we've started to see inflation started (inaudible) itself, and we expect inflation to continue during the full year.

A couple of commodities, especially I'd like to call out 2 of them: barley and dairy. For barley, we are seeing close to a 30% year-on-year inflation, that's largely because of poor monsoon outlook and village in international markets. On dairy, we are, at this point in time, seeing a steep increase in prices close to -- in the last 3, 4 months, we have seen almost a 40% increase. That's largely because of low dairy prices in (inaudible) leading to low production by farmers, and also government has started export subsidies. Now in terms of managing our P&L, right, so these are things which we have enough experience how to handle these situations in the past. So through a combination of selective price increase and taking forward (inaudible) we are confident of managing the P&L for the financial year.

--------------------------------------------------------------------------------

Harit Kapoor, Investec Bank plc, Research Division - Analyst [48]

--------------------------------------------------------------------------------

Just to follow up on that, have you taken any pricing action already that we can talk about?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [49]

--------------------------------------------------------------------------------

Yes. So we have taken a price increase. We've taken a 2.5% price increase starting January 2019. We've taken it selectively. We've not taken it across the full portfolio. And hopefully, that with the combination of all the forward covers we've taken for our key commodities, should help us manage our overall inflation during the year.

--------------------------------------------------------------------------------

Operator [50]

--------------------------------------------------------------------------------

(Operator Instructions) We have the next question from the line of Kaustubh Pawaskar from Sharekhan.

--------------------------------------------------------------------------------

Kaustubh Pawaskar, Sharekhan Limited, Research Division - Senior Research Analyst [51]

--------------------------------------------------------------------------------

So my question is on the rural growth you mentioned, that the rural growth accelerated to double digit in your presentation, which is unlike 2 other FMCG companies who have started seeing a slowdown in the rural segment and the impact of the same could be seen in their research. So can you just throw some light on your views or your (inaudible) rural growth?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [52]

--------------------------------------------------------------------------------

I think that has really contributed to the rural growth. I think that's been the biggest success but we are like other players, (inaudible) rural segment, yes. We're hoping both (inaudible) that things start normalizing, both (inaudible) to start picking up but (inaudible) both sides now.

--------------------------------------------------------------------------------

Kaustubh Pawaskar, Sharekhan Limited, Research Division - Senior Research Analyst [53]

--------------------------------------------------------------------------------

Got you. And can you throw some light on the export markets, how they are appearing for you? And what kind of growth you're seeing in FY 2019 and your view on this one?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [54]

--------------------------------------------------------------------------------

So market export growth has been good for the full year. The total growth for the full year is 24%, of which close to 21% has come from volume growth. And we've added GSK Malaysia as a new customer during the financial year, that has really helped us drive this high 24% growth. But even if I take out the impact of that customer, what we've added on a like-to-like basis, we are still growing our digits close to 6% to 7%

--------------------------------------------------------------------------------

Kaustubh Pawaskar, Sharekhan Limited, Research Division - Senior Research Analyst [55]

--------------------------------------------------------------------------------

Right. And sir, one last one, the business obviously (inaudible) how was growth this quarter?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [56]

--------------------------------------------------------------------------------

So the business (inaudible) income during the quarter has grown by 20%. The OTC and (inaudible) portfolio has grown by 20% during the quarter and that's what is reflected in the income, and the trend is same for the full year basis as well.

--------------------------------------------------------------------------------

Kaustubh Pawaskar, Sharekhan Limited, Research Division - Senior Research Analyst [57]

--------------------------------------------------------------------------------

Sir, one last one, if I may. Sir, other income for this quarter was high at 46% and even for the year. So any one-off in the other income?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [58]

--------------------------------------------------------------------------------

Yes. There's one-off to the extent of INR 114 crores, which are sitting in other income on a full year basis. And that's largely because of two reasons. One, we have some time barred tax erosion, right? And we've also carried out old rental balance and clearance exercise. These are the 2 reasons why we are having these one-offs in the other income.

--------------------------------------------------------------------------------

Kaustubh Pawaskar, Sharekhan Limited, Research Division - Senior Research Analyst [59]

--------------------------------------------------------------------------------

So what could be due for the quarter?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [60]

--------------------------------------------------------------------------------

For the quarter, [performing] number will be INR 44 crores.

--------------------------------------------------------------------------------

Operator [61]

--------------------------------------------------------------------------------

(Operator Instructions) We have the next question from the line of Anand Shah from Axis Capital.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [62]

--------------------------------------------------------------------------------

Sir, just one question we have on the distribution that you did highlight, the (inaudible) by 10% Y-o-Y, did I get it right?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [63]

--------------------------------------------------------------------------------

That is right.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [64]

--------------------------------------------------------------------------------

And that is directly somewhat?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [65]

--------------------------------------------------------------------------------

No, that's was as for the (inaudible)

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [66]

--------------------------------------------------------------------------------

That was (inaudible) number, okay, okay. And what kind of initiative you're taking? I mean, should we continue to expect a 10% increase Y-o-Y even for FY '20, FY '21? Or have you sort of noticed a further downward distribution already?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [67]

--------------------------------------------------------------------------------

Now, I think we continue to -- our endeavor is primarily to drive distribution as much as possible. Our biggest rule on driving distribution is to continue to be [cycling] and that would be the point, but the reason our other distribution is holding good and are strong. So yes, I feel it's going to be a driver of our distribution. And largely (inaudible) because we've got a very nice year. So it is -- I think we have -- if I (inaudible) price points, and if you continue advertising well, you would gain distribution in the months to come. And (inaudible) I think that you can deliver (inaudible) coming right, that could be another area which could be very interesting for the category.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [68]

--------------------------------------------------------------------------------

Sure, sure, sure. And one thing in the margins, I know that you alluded (inaudible) very well this quarter on the volume side, given the context in terms of a slowdown. So have you seen sort of any different trend within months, let's say, Jan, Feb, March or so? When do you think this sort (inaudible) going toward the exit the quarter or so?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [69]

--------------------------------------------------------------------------------

I think the second half of the quarter was a little tougher than the first half of the quarter, yes.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [70]

--------------------------------------------------------------------------------

Okay, okay. So in general, (inaudible) slow down towards the later part of the quarter, and that is the kind of momentum you're seeing?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [71]

--------------------------------------------------------------------------------

Yes. I think that's what earlier was reported. So we are prepared pretty much for the next.

--------------------------------------------------------------------------------

Operator [72]

--------------------------------------------------------------------------------

We have the next question from the line of Manoj Menon on from ICICI Securities.

--------------------------------------------------------------------------------

Manoj Menon, ICICI Securities Limited - Head of Institutional Equities Research [73]

--------------------------------------------------------------------------------

Just a curious question here. We actually had a sachet of 500 (inaudible) 500-gram pack. I've seen some of the smaller packs with 300 grams, if I'm not mistaken, in the category. Just trying to understand that -- I mean, is it not that the consumer needs something (inaudible) during exam (inaudible) you could actually offer underground or something or is it just that it's completely irrelevant for the category?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [74]

--------------------------------------------------------------------------------

That is a great question, Manoj. This is a question we have also in our (inaudible) each and every time because (inaudible) even I think (inaudible) see to it. But (inaudible) gives us another opportunity as we go forward. So it's (inaudible) the time. The category is (inaudible) 200 grams and then goes straight to 500 grams. Then in between about 8, 10 years' time, the other grams like 75 grams is given too before it. So other pack sizes are available right now, but I think a large more work has to be done on distribution and awareness for those pack sizes there. So it's a work in progress. There is an opportunity (inaudible) penetration to those packs, but I don't have it. I'll talk to you as to why it does not happen. I think it largely it has increased but great opportunity here, so well picked up here.

--------------------------------------------------------------------------------

Manoj Menon, ICICI Securities Limited - Head of Institutional Equities Research [75]

--------------------------------------------------------------------------------

Understood. And secondly, just if you can you give an update on the Boost RPD's launch sometime back?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [76]

--------------------------------------------------------------------------------

So Manoj, we're very happy with that launch. We are deliberately not being very aggressive on the launch. I think the learning for us is that keep the product fresh, keep it a little bit more in demand and better to supply less than what is demanded in the market because it's an absolutely (inaudible) and we need to nurture it. And I think we're doing a good job of nurturing it, so we're very happy with what's happening in the (inaudible). We are slowly but steadily inventing the category in the southern part of the (inaudible). So we're happy with the results. We're going to go slow, we're not going to go aggressive on the numbers but I think (inaudible) what we believe is right because it is important that the grounding of the category is stronger. And if we go aggressive, you could go (inaudible) in the fast lane, you should go very, very first. You might cause (inaudible) lose hope and get not a good feedback. We're a little bit late in -- it's not like a degrade but a little bit more like a (inaudible) and we're happy with what is happening here.

--------------------------------------------------------------------------------

Operator [77]

--------------------------------------------------------------------------------

We have the next question from the line of Shirish Pardeshi from Centrum Broking Limited.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [78]

--------------------------------------------------------------------------------

Just 2 questions, if I could correctly. The current distribution or presentation is INR 1.96 million. Is that right?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [79]

--------------------------------------------------------------------------------

Yes, that's right.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [80]

--------------------------------------------------------------------------------

And what's our direct coverage in that?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [81]

--------------------------------------------------------------------------------

Just under INR 1 billion.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [82]

--------------------------------------------------------------------------------

Sorry?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [83]

--------------------------------------------------------------------------------

Our direct coverage is under INR 1 billion, just under INR 1 billion.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [84]

--------------------------------------------------------------------------------

Okay, and within that, if you can give me a broad number, what could be our pharmaceutical or chemist coverage?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [85]

--------------------------------------------------------------------------------

So (inaudible) or direct coverage, yes?

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [86]

--------------------------------------------------------------------------------

Your direct coverage.

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [87]

--------------------------------------------------------------------------------

Direct coverage is what happened when it goes down, the cost got up. It becomes difficult for us to pick up when we go to the next level.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [88]

--------------------------------------------------------------------------------

I understand. Broadly (inaudible). Will it be 60-40 or 50-50?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [89]

--------------------------------------------------------------------------------

Sorry, 50-50 in terms of? You (inaudible) give me the percentage index.

Can you (inaudible) the question again, please? Sorry.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [90]

--------------------------------------------------------------------------------

In your coverage, you mentioned that you direct coverage is INR 1 billion. In that, I'm trying to find out what is pharmaceutical or chemist outlook coverage. Any broad number...

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [91]

--------------------------------------------------------------------------------

When you said 40-60 or 50-50 you're saying and if we could cover 100, how many are direct and how many are indirect, is that's what you're asking?

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [92]

--------------------------------------------------------------------------------

No. In INR 1 billion, I'm trying to understand the chemist outlook coverage would be 60% or it's higher?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [93]

--------------------------------------------------------------------------------

No, no, no. They are not going to give us in India (inaudible) chemist (inaudible) will double (inaudible) automatically. In fact the number...

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [94]

--------------------------------------------------------------------------------

I understand. Yes?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [95]

--------------------------------------------------------------------------------

No, there's not so many chemists in the country. So (inaudible) on the numbers. So we've taken a note of (inaudible) yes?

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [96]

--------------------------------------------------------------------------------

Yes, sure. And this 2.5% price increases you reflected in January, this is largely a Horlicks portfolio or Boost portfolio?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [97]

--------------------------------------------------------------------------------

This is across both Horlicks and Boost.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [98]

--------------------------------------------------------------------------------

Okay. Just one last one, sir.

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [99]

--------------------------------------------------------------------------------

Yes, please go ahead.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [100]

--------------------------------------------------------------------------------

Just one last question. In this actually what you have mentioned, which is roughly about 10% of your sales, what is the grammage in that?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [101]

--------------------------------------------------------------------------------

It's 18 grams.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [102]

--------------------------------------------------------------------------------

Price tag?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [103]

--------------------------------------------------------------------------------

For [INR 45], it is 18 grams.

--------------------------------------------------------------------------------

Operator [104]

--------------------------------------------------------------------------------

(Operator Instructions) We have the next question from the line of Anand Shah from Access Capital.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [105]

--------------------------------------------------------------------------------

Just one more question just on the food side. I mean, you did well, you do (inaudible) leverage portfolio over the years. So are you -- one is, are you done with it? And second, what kind of decline you have seen in the food portfolio revenues for FY '19?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [106]

--------------------------------------------------------------------------------

Yes. By (inaudible) on your first part the question, (inaudible) you the exact number. We have been done with the -- with what we want to sell and how we want to sell, so (inaudible) biscuits for example, of which we were making losses, of which (inaudible). Even on the regular portfolio, what are -- there's the promotional advertising strategy should be I mean, completely (inaudible). So we've handled whatever pressure we need to do so hopefully, the baseline will now start. It took up a bit long time last year actually for us to take all the changes in our strategy. But for next to -- from July onwards quarter, I think you will start seeing absolute (inaudible) on that. The (inaudible) numbers will (inaudible).

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [107]

--------------------------------------------------------------------------------

So on a full year basis, the food business has declined by 16%.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [108]

--------------------------------------------------------------------------------

And what does it contribute in terms of the savings for total revenues now?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [109]

--------------------------------------------------------------------------------

So on the revenue, for our revenue, it will be close to 5% or already less than 5% is what I'd say.

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [110]

--------------------------------------------------------------------------------

Okay, so the level of 5%, a decline about 16% for the year. And come July, essentially, you would have hit the baseline. So baseline, that should start growing and there shouldn't be any more drag?

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [111]

--------------------------------------------------------------------------------

Yes. Yes. (inaudible)

--------------------------------------------------------------------------------

Anand Kumar Shah, Axis Capital Limited, Research Division - SVP of Consumer [112]

--------------------------------------------------------------------------------

Okay, any initiatives planned in foods, essentially accelerate that growth?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [113]

--------------------------------------------------------------------------------

Yes. So we are looking at in terms of the new products during the year on science-based innovation, so very much in term of -- so yes, we'll talk about in our subsequent call.

--------------------------------------------------------------------------------

Operator [114]

--------------------------------------------------------------------------------

(Operator Instructions) We have the next question from the line of Shirish Pardeshi from Centrum Broking Limited.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [115]

--------------------------------------------------------------------------------

Just one follow-up question. We have seen a lot many players are very aggressive in nutritional life and nutritional health. You have spoken something about kids nourishment. Why is certainly this space is growing faster? And then if you can just articulate what are the drivers and what is changing?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [116]

--------------------------------------------------------------------------------

Honestly speaking, my view is that the category always has the underlying momentum and growth. We had a couple of tales of hindrance in the category. And I think the hindrance is gone. Now, what is the hindrance? Only because demonetization, GSP, or a general spiking, some other issues there is in nutrition at the moment. Particularly, if you look at 15-, 20-, 25-year trend, you clearly see this category growing on all aspects whether it's volume, whether it is demonetization or it is absolute penetration here. The category has always had a rupturing and I think as health becomes more and more important and the players like (inaudible) health in the category understand how they could bring science better and management better to the consumers. I think (inaudible) that will all go well for the category and the category will then continue to grow even at an accelerated rate.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [117]

--------------------------------------------------------------------------------

Are we trying to launch...

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [118]

--------------------------------------------------------------------------------

My view on the (inaudible) Indian taking that next year, right? If you go globally (inaudible) is a very, very large category (inaudible) of. This is (inaudible) Indian market only, we see a very large market over there. Indians would like (inaudible) will be taken. So food supplementation is a very, very good payoff, ensuring we get the nourishment that we require.

--------------------------------------------------------------------------------

Shirish Pardeshi, Centrum Broking Limited, Research Division - Senior Analyst of Consumer [119]

--------------------------------------------------------------------------------

Is there any new formats you're trying to do or prototype in terms of nutritional health?

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [120]

--------------------------------------------------------------------------------

Nothing which is coming immediately on the next few quarters over here as well. So but we'll (inaudible) continue to look at how we can fulfill it.

--------------------------------------------------------------------------------

Operator [121]

--------------------------------------------------------------------------------

Ladies and gentlemen, that was the last question. I now hand the conference over to the management for closing comments. Sir, over to you.

--------------------------------------------------------------------------------

Navneet Saluja, GlaxoSmithKline Consumer Healthcare Limited - ISC Area GM, MD & Director [122]

--------------------------------------------------------------------------------

Yes. So thank you very much for the active participation. It is always a pleasure to be back and get an external perspective for the category and our business. It gives us an opportunity to understand what you as analysts expect from us. And as a company, we remain committed to growing the category by bringing in products based on high science and innovation. With that, I would like to thank you once again. Thank you.

--------------------------------------------------------------------------------

Vivek Anand, GlaxoSmithKline Consumer Healthcare Limited - Director of Finance, CFO & Whole-Time Director [123]

--------------------------------------------------------------------------------

Thank you very much.

--------------------------------------------------------------------------------

Operator [124]

--------------------------------------------------------------------------------

Thank you very much. Ladies and gentlemen, on behalf of Axis Capital Limited, that concludes this conference call. Thank you for joining us. You may now disconnect your lines.