Som Distilleries & Breweries (NSE:SDBL) Q1 2026 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Som Distilleries and Breweries Limited Q1 FY 'twenty seven Earnings Conference Call. As a reminder, all participant lines will be in a listen only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Please note that this conference is being recorded. I now hand the conference over to Mr. Divakaran. Thank you, and over to you, sir. Thank you. Good afternoon, everyone. My name is Divakaran, and I'm the Chief Operating Officer of Som Distilleries and Thank you very much for joining us for the Q1 'twenty six, 'twenty seven earnings call of Som Distilleries and Poories Limited.

0:48 Let me begin by acknowledging that Q1 was an extremely difficult quarter for the company. The operational and regulatory disruption in Madhya Pradesh had a significant impact on our volumes and consequently on our financial performance. Despite the disruption in Madhya Pradesh, there are some positives, which is which is very good. We saw a strong rebound in Karnataka with improving demand and market share. Bodhisatt also delivered a strong recovery, demonstrating the resilience of our brands and distribution network. These trends are encouraging and give us confidence that the underlying business remains strong as market conditions normalize. A major milestone during the quarter was the successful commissioning and commencement of commercial production at our Uttar Pradesh unit, Gururi.

1:41 The facility adds approximately 10,000,000 cases of annual beer capacity, giving us a significant new manufacturing and marketing market access platform. Our focus now shifts from commissioning to ramp up capacity utilization and market penetration. From an operating perspective, beer continues to be our core earnings engine with 45 lakh beer cases sold during the quarter. Beer represented approximately 98.9% of our total volume and 93% of our revenue. On the IMO side, realization improved by approximately 3% year on year to INR $10.47 per case, reflecting the increasing focus on higher value products. So while Q1 was undoubtedly the challenging phase, we believe there are several positive indicators beneath the reported numbers.

2:32 The recovery in Karnataka and Odisha, the successful commissioning of UP, disciplined leverage and continued investment in our brands and premiumization strategy. Our priorities for the balance of year 'twenty six, 'twenty seven are clear, restore normal operations at Madhya Pradesh, sustain the recovery in Karnataka and Odisha, ramp up the UP facility, improve capacity utilization, strengthen our premium portfolio and convert the early signs of recovery into sustainable volume and profitable growth. We remain confident in the underlying strength of the business with our expanded manufacturing footprint, improving market conditions and a disciplined balance sheet. We believe Som is well positioned for a meaningful revival as we move through full year 'twenty six'twenty seven.

3:19 With this, I will hand over to Nakul to take you through the financial and operational performance in greater detail. Over to Nakul. Consolidated volumes for the quarter stood at INR 45.79 lakh basis with a total income of 268.8 crores and EBITDA stood at INR 15.2 crores. However, we believe these numbers need to be viewed in the context of the specific challenges faced during the quarter and not as a reflection of the underlying potential of the business. I would also like to highlight the strength and resilience of our balance sheet.

4:04 Despite the commissioning of the UP facility and the difficult operating environment, gross debt increased by only 10 crores during the quarter, with gross debt to its equity ratio moving marginally from 0.3x in March 26 to 0.31x in June 26. We have, therefore, added significant manufacturing capacity without any material increase in our leverage. More importantly, cash generation remains healthy. We generated close to 28 crores of cash from operations during the quarter. This is an important indicator of the underlying financial strength of our business. Even in a challenging quarter, we have continued to generate operating cash while maintaining disciplined leverage and investing in our future capacity.

4:55 Despite the disruption in Madhya Pradesh, our other operating businesses continued to demonstrate resilience. The Hassan facility operated at approximately 60% capacity utilization, while the Orissa facility operated at around 70% capacity utilization. As we speak, we have invested close to INR 300 crores in the UP brewery. And importantly, this investment has been made without taking any external debt. We have therefore created a substantial new manufacturing platform and expanded the capacity by maintaining a disciplined approach to leverage. With this, we would like to now move on to the q and a session.

5:42 Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Supratty Patil from EyeSight FinFET Private Limited. Good afternoon to the team. I have two questions. My first question to Mr. Diva Karan. Just want to understand on the operational side, what are the key priorities you're focusing in terms of manufacturing efficiency, supply chain growth and compliance?

6:30 And what risk do you see in raw material sourcing, regulatory frameworks or demand volatility? And how are you preparing to mitigate this? I just want to understand the forward guidance on this. I think this I think the question is a little long. Can you briefly tell me one after the other? Yes. I just want to understand forward guidance on how are you going to on the operational playbook thing? And how are you going to sell them the production, improve efficiency and ensure compliance while preparing for risks in raw material challenges, regulation and demand shift. Just want to understand the forward guidance on this.

7:21 Yes. You're talking about '26, '27? Yes. Yeah. Okay. So as you know, I know we have four capacities in all in terms of year. And out of the four NP is is as of now suspended. So the remaining three capacities are there. And out of that, one is started just recently at the end of quarter quarter one. The two other facilities that we have is in Hassan and Orissa. Both are... Both these facilities are, you know, quite, you know, quite large, and it's been operational for very long years. And we have all the best practices in terms of procurement, in terms of quality management, etcetera, which is already there, and we continue to focus on that through with rigor.

8:10 Right? And I don't see any new addition to it except for managing the... With the the, you know, availability of packaging materials, which is dependent upon particularly the can part of it, which is dependent upon a single supplier of all corporation for the entire industry, and we are also dependent on that. So if we manage that properly, I think we have sufficient, you know, scope and scope to leverage during the coming quarters in terms of supply. As far as raw material pricing is concerned and whatever is the whatever is the market volatility and whatever is being faced by others, we also are vulnerable to that. We are not completely, you know you know, away from it. And also we are playing in the same market and same kind of, you know, vendors from whom we purchase, whether it is imported or local.

9:06 So we are we are we are vulnerable to that. But, anyway, we we can safeguard that through, you know, various measures that we adopt, you know, on a ongoing basis to keep our costs on check. And we are focusing on reducing our costs a lot more now considering that we have to deliver better results in the coming quarters. You. My second question to Mr. Sethi is, what key risk or challenges do you see in the coming quarters? And what specific measures have been taken to manage margins, cash flow and strengthen the balance sheet, especially in areas like excise duties, receivables or competitive pressure? I think our first priority is that we should we are focusing on restarting of the MP plant as soon as possible because it's been six months, and we are mindful of that fact.

10:10 Receivables, we normally operate in all or most of the markets which are where the wholesaler is the government. So I don't think that we have got receivable risk as such. And nowadays, the government also very pro industry or you can say in terms of the payouts or receivables. So that is fine. Normally, I think the key is obviously the margins. I think we have been in the past operating in the industry where I think our margins in the beer industry are amongst the topmost.

10:56 So I don't think we have an issue on that. Liquidity also, I mean, if you look at our results which we have quoted for this quarter in spite of NP plant being that I think all the other two facilities have done very well. We have seen a 30% increase in the cases sold in Karnataka in Q1. And similarly, I think in Orita also, we have seen about close to about 40% increase. So I think once we get over with the NPE issue, I think we are on track again as compared to the previous year.

11:54 The next question is from the line of Mano Pal, an individual investor. My question is that since our Bhopal operations are closed, so it means that already we have lost the market share. So what's the strategy that when we'll come back for the Bhopal operation to gain that market share? Because the consumer is like a consumer mentality. If, say, if the one person who used to some one brand, if that brand is not available, he will go for another brand. So how to bring that consumer to his or her original brand? So have you thought of anything on that?

12:43 Yeah. I mean, it's a good question, and thank you for that. What I can tell you is that, you know,, of course, is a is a is a is a problem and that we are fixing, and we have been working on it for quite some time. And we hope that it'll be fixed very soon. A consumer is not easy to get, and once we get them, it is important that we retain them. Some noise is happening. I'm not able to... Some noise is happening. Hello? Some background noise. Hello? Yes, sir. This would be better. You may please go ahead. Yeah. So, of course, I mean, the consumer moves away to a different brand, particularly for reasons of nonavailability for a for a considerable period of time, it's not a very easy task to get them back. But what we are seeing in the markets where we are we are we are available, there is where we have been available for the first quarter of this year, except for Madhya Pradesh where we weren't available, and Delhi to some extent.

13:48 In those markets, our market share has been either retained or we are growing. And also that actually speaks about the strength of our brands and our distribution network. And therefore, we are confident that, you know, once we are able to sort out issues in terms of the license in Madhya Pradesh, it's a matter of time, you know, when consumers would... Our consumers would return when they see the brands available in the sales. It is it is a long haul. It is not easy. You're right. But we have our plans, and we have been in the business for quite some time to understand how this works and how the consumers move from one brand to another, and then they come back, how to get them back. It's a it's a... It's something that we have learned, and we have tried in many markets. So when... Particularly when there are supply gaps and we kind of resume after one or two months, you know, we kind of recover quickly. But with a long period of time, it will take some time to come back, but we are confident that we can get back because our brands have that inherent strength because they've liked the brand not just for being a brand brand, but it is also for the taste and the the quality that we provide to the consumer and also the the advantage of various pricing, etcetera, etcetera. So I think we are confident that that the consumers will come back, but it will take a little time. Mean, the markets will be closed for a long time.

15:12 Okay, sir. I I also wish for the best wishes that all of our consumers should come back to Thank you, sir. Thank you. When... Whenever our operations get started. Sir, in last phone call, the... It was my question only you answered that that within the fifteen days, we are going to start the operation of. So I want to know what went wrong. You... Means after three months, that matter... The license is not yet restored. So, see, this is not completely in our hands because it is in the hands of the courts and in the hands of the authorities. And therefore... And most most of the matter is in the court, and therefore, it is, you know, subjudice for us to discuss the...

16:01 On the on the phone and give our views. But Yeah. I understand. Just happened it just happened that, you know, that it is taking longer than what we had anticipated. And, hopefully, we're all working on it. I mean, our chairman, our our entire team, leadership team is working on it, and we hope to fix it very soon. The next question is from the line of Nagaraj Pipali from Anandusal Investor. Good afternoon. Question is how much of CapEx is already done on UP phase one project and what is the pending CapEx for this phase one project? And when did we start commercial production And what is the capacity utilization at present? And what are the plans for phase two and its CapEx?

16:57 Hi, sir. So we have spent close to about INR 300 crores for the phase one of the project. And any pending CapEx is there on that? No. There's no pending CapEx, I mean, on the phase one as such. And commercial production started in, I think, about June 9. So currently, I think it is not meaningful to talk about the capacity utilization of the U... UP plant as of now. Maybe I think after one or two months, we'll be able to get you a... Give you a tailored picture of that. What about phase two?

17:44 Phase two, we'll... I think, sir, we have applied for the permissions because Phase II is about the distillery. I think we'll have more formal idea about the execution maybe three to four months down the line, sir. Sir, my question is, like, it was very great for management to convert plant as 100% subsidiary. What is stopping management to convert plant also to 100% subsidiary from the present 78%, so that we can improve the corporate governance as was done in UP subsidy. Sir, we have So this is like you, a lot of people have also commented on this. Let us evaluate, and we'll get back to you on that pretty soon, sir.

18:44 Okay. Thank you very much. And one more question is, how much of unsold stock is still held inside Gopal plant and what is it shelf life? So we have got about INR 25 crores of finished goods. What about shelf life? Satellite, that stock is undergoing verification as of now. And I think we'll have about a month sales life remaining. Okay. Okay. And a quick question from my side. Can you please clarify the increase in expense you'll paid in Q1 this year against much reduced sales?

19:33 So, excise duty is because we have sold more in Karnataka and Odisha, where the excise duty has to be paid by the manufacturer before the dispatch of the finished goods, which is unlike in Madhya Pradesh. Okay. Okay. That is good. And one small suggestion I got from my side to management. Once this go fund issue is resolved, I request management to go for a right issue to fund UP's plan to do CapEx and keep the balance sheet strong and use the cash flow from operations for funding working capital and improve credit ratings against existing loans. This is my suggestion, please. Okay, sir. Thank you so much. That's a very valid question, sir.

20:24 And wish you all the best in the future. Thank you so much, sir. Thank you. The next question is from the line of Chitax Gupta from Pickering Investments. Please go ahead. Hi, sir. Thank you for your time. I have a couple of questions. So sir, first question, how much revenue we lost due to closure of MP plant in Q1, if you can give any number? I think we lost about INR $2.50 crores of revenue. $1.50 to $2.50 crore. Two fifty crore. Okay. And, sir, our plan was to go live in Andhra Pradesh after the end of q four you had mentioned. So did we go live in Andhra Pradesh? If yes, then how many cases we sold or how much revenue we made from Andhra Pradesh?

21:22 No. We were not setting up any plant in Andhra Pradesh, I think. No. Not about plants, sir. Like, we were entering Andhra Pradesh, just the direct sales. Yeah. Yeah. The US is Yeah. I'm answering that. Yes, we had said that, you know, q one, we were supposed to start. Mhmm. But, unfortunately, the the permissions from the state authorities, excise and the corporation have got delayed, and we received that by by end of July. Right? So you're saying And after that, we after that, we need to kind of take permissions from the exporting state, which is Karnataka, to start up...

22:07 To export from here. All the export permissions needs to be taken. That process is on. And I think it should get over in about two weeks' time. So by q three By by first week of August by first week of August, I think we should be able to see our brands in... I mean, September, sir. First week of September. First week of September. Okay. Yes. Sure. Thank you. Thank you. The next question is from the line of from Sequent Investments. Please go ahead. Hello. Yes. Am I audible, sir? Yes. Yes. Very much.

22:56 Yeah. Yeah. So thank you for the opportunity. Sir, as you mentioned, like, the matter of Bhopal is currently in the court, so we cannot comment. But is it possible, like, you just mentioned my... One of my colleague that we are, like, taking the permission from export from Karnataka to a AP. So is it possible, like, we can do similar kind of practices to export from Karnataka or the plant to Bhopal because the hotel capacity is running at 45, 50% Just to increase the capacity and increase our capacity utilization and... Yeah. Yeah. Yeah. Yeah. This thing was evaluated. Mhmm. The cost the cost of importing from any other state, whether from Modi sir, UP plant.

23:44 Mhmm. Right? You know, is exorbitant, and it'll erode our erode our margin. Not even erode, it will be at a loss into Okay. Particularly because of the import fee, very huge import fee that Madhya Pradesh had. Okay. Yep. Understood. Understood. So, if you can mention, like, currently, Bhopal plant is closed, it's not running. So what kind of fixed cost we are getting for quarterly as of now because of that plant? Because we are I think about including everything, interest cost, salaries and electricity, what we are incurring about close to six to seven growth per quarter.

24:32 Per quarter. And what is the plan? Like, are we doing anything to reduce that cost? Because our employee cost and everything remains stable. Are we taking any measures to reduce this cost? No. No. We are obviously, you know, minimized this cost because we have been trying to work on reducing the overhead as such. Mhmm. But we have not done away with any salary cuts for employees as such. But what we have done is that we have No. Division in line, sir. We have tried to absorb the excess manpower in our other units.

25:20 Okay. Because, for example, we have shifted some people from Bhopal to to our UP plant because we needed to do some hiring there. So obviously, we shifted some people there. Some people have also been shifted to Hassan or to Ulika. Understood. Understood. So like just a follow on, right, follow-up on this. So if you can give, is it possible to give a breakout on the employee cost from that particular plan? Because we have INR 13 crore employee cost per quarter. Is it possible to give that? I can give it to you. Think it should be there in the stand alone. You want to pay SDBL stand alone?

26:17 Yes, sir. So I have that. It's 5 crore. Right? Yeah. Yeah. Okay. Okay. This 5 crore is attributed to this Bhopal employee cost. Yes. Understood. Understood. No problem, sir. Yes. Sir, any time line when this plant is going to start? Any comment on that, sir? I think we are very hopeful that the solution to this problem should be done in this month as well. Understood, sir. Understood. Thank you. And all the time. Thank you. The next question is from the line of Jayaraman, an industrial investor. Please go ahead.

27:06 Good afternoon, everyone. Afternoon. My question Yeah. My my question is that the UP plant, the phase one we we have put up and then we start running at 3,000,000, I think, cases. Right? So so the the total capacity is supposed to be 10,000,000 cases. Right? Then that is the. I think it will take us another three to four years to achieve that, you know, the peak capacity utilization of the UP plant. Okay. But but I mean, as far from the... Mean, the overall, the... We have the sales in UP, it's astronomically growing at a faster rate. Right?

27:53 So I think currently, the other plan should be running more than 60,000%. Right? Sir, we only commissioned the plant in June. Yeah. Correct. So... And right now, we are in the lean season. It's not the main season for consumption of beer. Correct. So it can't be at 60, 70% capacity utilization. It's such a big plant, sir. Oh, 3,000,000 cases itself. No. I I assume that 3,000,000 cases, sir. It's 10,000,000 cases, sir. Current capacities? Yeah. Yeah. 10,000,000. Oh, fully set up is done? Yes, sir.

28:41 Okay. Okay. But but what are under... I mean, what what are my understanding, if I'm wrong, you just correct me. Earlier, we used to supply our brands to UP, right, from. So the... Our brand acceptability are... The the recognition is already there. Right? Yes, sir. Yes. Is there. It is there. Okay. It is there, and that's exactly the reason why we we have put up a plan because our brands are well accepted. It is a matter of making it available during peak season. Particularly, through peak season, it was unavailable for UP in... To a large extent because of capacity utilization and demand in Madhya Pradesh market itself. And therefore, we could not do much at that time. That is the reason why we put up a plan. And also your your...

29:31 Right? That the UP has got huge growth opportunities, and it has been growing for the last five, six years. And we expect that to happen in the next two two to three years as well. You know, the growth will continue to be there because it's such a huge population of consumption. So, obviously, there is there is an opportunity. And like Nepal said, you know, it will take at least... I mean, the market is not death of capacity now. I mean, the other other players are there. We have to we have to now build on our brand franchise in that market and keep on pushing the brand and increasing our availability throughout the off season so that the coming season in, say, February, March, we'll have... We'll be in a better position than what we are today. Yes. That's my decision. Right. But but but strategic thinking...

30:26 See, I have just gone through one of our peer. I I would say complete UBL transcript. They they have a strategy like, whichever state has got lower capacity, they don't want to build a brewery over there. That's what their CEO, mister Gupta said. So what he was saying is that whenever the whichever state has got more capacity, we'll try to do contract manufacturing or licensing part. In the similar patient, if... UBL is also coming head on with with us in in UP. I think they are also planning seven or 800 brewery over there in UP state. So it means that the demand is that they are also projecting, you there'll be huge demand. But but my general question or strategy question is that, should we... I mean, is it a is it good for us to build a brewery in each and every state?

31:12 Or, for example, if some states have got lower capacity, then should we not use, you know, other players or or neutral breweries, independent breweries capacity, and then contract manufacturing, we can do. Right? No. It is brand deal. Yeah. Yeah. Carry on. Carry on. Yeah. That... That's it. My strategy could be... I'm I'm asking what kind of strategy we should go ahead to have, you know, because if if the SDBL becomes Pan Indian player, then that is the best thing to happen. Right? That is what my objective of this Absolutely. Absolutely. That's how that's how we have also mapped our capacity footprint. And if you see... If you look at our SDBL plan, it was completely supplying to the entire Northern state. Right? And now you... I mean, is the plan supplies to the Eastern states, including West Bengal, Japkad, and the Northeastern states.

32:02 Right? And similarly, we have a Karnataka capacity supplying to the entire Southern states. Right? And UP... But with that available capacity in Madhya Pradesh, we were not able to service the UP. Plus, UP is growing, and we are... We don't put capacity for one year. We put... We plan capacity for next five to ten years. Mhmm. Yeah. So that's how the plan has been designed. So you're saying that the neighboring ships, there was a import is possible without a huge cost to import the duty or something. And then we we can sell from the neighboring Breweries. Of course. So what... To just give you a idea that Delhi was being serviced from Madhya Pradesh plant. Now it is getting serviced from UP plant because Madhya Pradesh is unable to serve.

32:50 So only few states, don't want imported items because they have high import duty like Maharashtra where we have we have to... If we want to penetrate the Maharashtra market, we have to put a brewery in the in the place. Right? In their place. Yeah. They just... I mean, we we also export to Maharashtra from our. But minimal, I'm saying that if you really want to have, you know, sales Of course. For the long term, it is better because such a large market and such growth opportunities are there. Right? We'll have to plan that. I mean, the fact we'll have to prioritize where to play first. But my question is that in Maharashtra, in, for example, Punjab, in Jammu, Kashmir, even in, for example, Sikkim or another, there is an independent brewery. I forgot... Forgot. There is a...

33:38 Is taken out. That was taken out by somebody. They need... Even the company has Asgard Breweries. They have a nice brand. They have that. So why am I not? They did comedy there. There are neutral breweries. They do contract working. Why can't we use... For example, Punjab got a lot of new... Neutral breweries. So instead of exporting from neighboring states, it will be easier to, you do contract matter, but this is our brands that visible very highly. Right? Yeah. Yeah. Mister chairman, we get the point. Wherever there is a possibility of keeping our cost low by taking a local contract brewing facility, we do that. I mean, there is an opportunity, right? If wherever it is not, I mean, we compare the options between importing and doing it locally. And what are the best for the margin wise, do we go with that, margin and quality also.

34:31 Okay. Regarding MIG P plan, I don't want comment on it because our industry, I know that it is very highly regulated industry. I think as a management, I mean, you would do our best for our stakeholders. Thank you so much. You. You. Thank you so much. Thank you. The next question is from the line of Sunil Chattakia from Beef Law India Opportunity Funds. Please go ahead. Yes. Thank you for the opportunity. Am I audible? Yeah. Okay. So can you provide the state wise or plant wise volume and sales breakup quarterly and? You have four plan. Right? You see, you just started. So basically, the three plans, what are the data like just to figure out what's the growth with the demand and what's the impact of a closure of.

35:28 The volume data, you wanted plant wise? Yes. We've already shared the capacity utilization. You can take off the volume data based on that. Okay. I'll I'll take it offline if you don't mind. Yeah. But next question, say, for example, hypothetically, if in f twenty seven, you don't get a approval for the MT plan. So where do you see the revenue and volume and margin for the FY '27? I think, first of all, we'll not work on that assumption. Okay.

36:13 Right now, I'm not prepared to share any number based on that empty plan. Should I imagine that? I mean, we are very hopeful that it should get resolved as soon as possible. So I understand. I mean, one has to be positive about it, but if that doesn't happen, there has to be plan b. Right? I mean, it's in the So we have a plan b. I think it is... It's not appropriate to discuss plan b right now. Okay. That's what I'm seeing. We are very optimistic that we shall soon be back on track. Okay. With that, what sort of a revenue and EBITDA margin you expect for FY 2027?

37:02 I think I stay with my guidance of 1,000 crores of revenue. Our guidance is, I think, 1,200 of INR 1,500 crores. So you're saying INR 1,000 now, right? I mean, I mean, as of now, say, let's keep it thousand, 1,100 crores. Margin and all, I think we have better idea by the next call which we have. Okay. Right. Fine. Sir, this particular brand, Sunny Deep, is in really long this quarter only because I didn't see the audio. Sorry? The new one, Sunny Deep, is the last Yeah. Last quarter is I think has done very well in.

37:51 Okay. Okay. Sir, how many guys we are in here into this? As of now, we have got Hunter, Blackfoot, Powercool, Sunny Beaches, Legend. Five brands. Five brands. Okay. And so what are writing behind? Is it all clear now, sir? Is it better? Yeah. I am much better now. Okay. Sorry for that. Sir, I'm just trying to understand. You have a you have a big brand in beer category.

38:42 So what is the rationale behind having so many brands like, you know, what is the strategy company that opted, and why do we have a six brands in the beer category?, sir, can you answer that, please? Yes. Yeah. Yeah. So, I mean, it depends. I mean, I I, you know, personally believe that, you know, port... Having a good portfolio and having, you know, each brand doing its own work, each market depending on that market segment and the kind of consumers that we are we are addressing. You know, I just... Playing a portfolio game is better than having one brand and trying to fit it into consumer trade everywhere across the country.

39:29 So we've always been a portfolio company. Right? And our one brand is a national brand in Hunter, and we want to make also a national brand. But there are regional brands like this, like, you know, PowerPool and Power ten thousand, and we have Black Fort and Sunny Beaches now, which are accepted by consumers. I mean, so depending on the market opportunity and depending on what the consumer wants, the pricing opportunity that we have, we play those kind of markets, I mean, with with the brands. I mean, we cannot we cannot... For example, in Karnataka, the size of the market has is, you know, is is a mix of affordable beers and mainstream beers and and premium beer.

40:15 So Okay. Well, if I have portfolio, I can play. If I cannot reduce my 100 beer price to the level of affordable beer. Right? So I play with different brands, so in different markets. Okay. Okay. Okay. Yeah. Fair fair enough, sir. Fair enough. Sir, the next question is on the on the private company, Som Distilleries Private Limited. Can you, sir, explain what it does, which are brand it holds, and can you give some brief about the private company? I think, sir, on this call, let's not discuss about the private company. So are the license common for both the lecture one and What you can do is you can connect with us separately, then maybe we'll give you a more detailed understanding.

41:05 Okay? Sure. I'll I'll I'll I'll connect with you later on. Sure. Sure. Sure. Yeah. Yeah. Sure. Thank you. Sir, one last question, All the brands what you discussed and what you mentioned, all belongs to the listed entity only. Right? The brands of six, seven brands plus and all belongs to the listed entity. Right? Brand. Yes. I get to. Yes. I get... I mean, it's all with the... I'm just repeating the question again. It's all belongs to the listed entity, right, not the private company? Company? I don't know why I told you, let's discuss it one to one, whatever you have got queries on.

41:51 Okay, fine. Thank you. Thank you. Thank you. The next question is from the line of Chitash Gupta from Synchrony Investments. Please go ahead. Hi, sir. Thank you for taking my question again. So my question is regarding the raw material. So how was the situation of raw material and bottling cost in Q1? And did we take any price hike? No, sir. I think we have seen an increase in the price of can mold bottles during the first quarter as compared to quarter one last year. Average increase has been about 7.5% to 8%.

42:43 And sir, how many new product are we planning to launch in for the financial year, either in beer or in whiskey category, INFL category? Leo, sir, can you please answer that? Yes. Yes. So we from the in the peer category, I think we'll continue to focus on the existing portfolio of brands. Maybe maybe we'll evaluate one or two extension of the existing brands in some market. As far as... I'm a bit concerned, I think has been launched in Bhopal, Delhi, and UP. I think once we resume supplies from Bhopal, think that will be a big focus for this year.

43:31 And probably, we'll step into the the Indian single mode category before the end of this year, The final. As a single mode will be completely in house developed by us only? Yes. Okay, sir. Understood. Thank you so much. Thank you. Ladies and gentlemen, we will take that as the last question of the day. And now I would like to hand over the conference to mister for closing comments. Thank you so much for taking your time and being with us. We always value your feedback, and we value our relationship.

44:18 And we are always pleased to clarify any doubt that you have, and thank you once again for being with us today. Thank you. On behalf of Som Distilleries and Breweries Limited, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.