Varun Beverages (NSE:VBL) Q1 2027 Earnings Call

0:00 Ladies and gentlemen, good day, and welcome to the Varun Beverages Limited Earnings Conference Call. As a reminder, all participant lines will be in the 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. Anoop Bujjari from CDR India. Thank you, and over to you, sir. Thank you. Good afternoon, everyone, and thank you for joining us on Varun Beverages' Q2 CY twenty twenty six earnings conference call. We have with us Mr. Ravi Jayapuria, Chairman of the company Mr. Varun Jayapuria, Executive Vice Chairman and Hold Time Director and Mr. Raj Gandhi, President and Hold Time Director of the company.

0:58 We will initiate the call with opening remarks from the management, following which we'll have the forum open for a question and answer session. Before we begin, I would like to point out that some statements made in today's call may be forward looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now request Mr. Ravi Jayapuriya to make his opening remarks. Good afternoon, everyone, and thank you for joining us on our earnings conference call. I hope you have had a chance to review our results presentation for the second quarter and a half yearly ended 06/30/2026. We are pleased to report a strong performance during this quarter.

1:47 Across our markets, consolidated sales volume grew by 19.8% and together with improved relations realizations translated into 20.4% increase in net revenue from operations. EBITDA increased by 17.2% to INR 23,430,400,000 in quarter two twenty twenty six. In India, we saw healthy volume growth in 20s since the onset of the season at that is from March onwards, except for the month of April, which was about flat, resulting in overall volume growth for the quarter of 14.4.

2:35 Our expanded manufacturing footprint, extensive distribution network and continued investments in chilling infrastructure continued to drive growth. We also extended our exclusive bottling and trademark license agreement with PepsiCo India PepsiCo in India until April 2049 and removed the earlier restrictions requiring VBL to operate solely as the SVV for PepsiCo business, strengthening our long term partnership and creating greater operational flexibility to pursue opportunities that can deliver scale and synergies.

3:21 We also entered a strategic alliance with Assai Group Holdings to introduce the iconic Calpas brand in India, marking our entry into the value added fermented dairy beverage category. The international business maintained strong momentum. Twiza in South Africa helped overcoming capacity constraints while strengthening our manufacturing footprint and route to market capabilities in South Africa. We also entered into an agreement to acquire the business of Divani Foods Industries Kenya Limited, which will provide us with the ready GTM in Kenya for expansion into carbonated soft drinks and energy drinks.

4:13 In accordance with our dividend policy, the Board of Directors has approved an interim dividend of 25% of face value that is INR 0.50 per share, resulting in total cash outflow of approximately INR $1,691,000,000. Looking forward, we remain looking ahead, we remain confident in the long term growth potential across our markets, supported by favorable demographics, rising disposable incomes and increasing consumption of packaged beverages. With adequate capacities growing and diversified portfolio, strong partnerships and an extensive distribution network, we are all well positioned to deliver sustained and profitable growth and creating long term value for all our stakeholders.

5:13 I would now like to invite Mr. Gandhi to share the key highlights of our operational and financial performance. Thank you. Thank you, Mr. Chairman. Good afternoon and a warm welcome to everyone joining us today. Let me provide an overview of the financial performance for the second quarter and half year ended 06/30/2026. Revenue from operations net of excise and GST stood at INR 84,512 million in Q2 of twenty twenty six, up 20.4% year on year. For H1 twenty twenty six, revenue increased by 19.4% to 150,254 million.

6:00 Growth during the quarter was primarily supported by a 19.8 increase in consolidated sales volume to the level of INR 466,700,000 cases. As mentioned by Chairman in India, we saw healthy volume growth in 'twenty since the onset of the season, the exception of course of April. International markets also delivered a healthy growth with volumes increasing by 38.4%, including the contribution of 11,800,000 cases from Griza in South Africa. Net realization per case, Beverages at the consolidated level improved by 1.2%, supported by better realizations in international territories.

6:46 Gross margin improved by 44 basis points year on year to 50%, supported by a higher mix of international business. In India, early stocking of key raw materials and savings in sugar consumption driven by a higher mix of low sugar, no sugar products helped maintain gross margins despite the inflationary raw material environment affected by this Asian prices. EBITDA stood at INR 23,430 million, registering growth of 17.2% year on year, with the EBITDA margin at 27.7% in Q2 of twenty twenty six. EBITDA margin declined by 76 basis points year on year, primarily due to consolidation of Pizza business, which currently operates at lower margins.

7:36 In India, the EBITDA margins improved by 38 basis points, driven by operational efficiencies arising from healthy volume growth, partially offset by higher other expenses, primarily transportation and distribution costs. PAT grew by 15.1% to the level of INR 15,253 million, supported by strong volume growth across India and international territories. Depreciation increased by 33.6% due to the commissioning of new plants in India last year, which was not part of the base quarter. And the acquisition of Twiza in South Africa, finance cost increased by 55.8%, primarily on account of Twiza acquisition. For H1 twenty twenty six, EBITDA increased by 18.7% to the level of INR 38,719 million, while PAT grew by 16.9% to the level of INR 24,040 million.

8:36 Low sugar, no sugar products contributed approximately 73% of the consolidated volume during the period. VBL India remained net debt free with surplus cash of INR 14,941 million. At the consolidated level, net debt stood at 3,713 million as of 06/30/2026. This was primarily on account of acquisition of Twiza in South Africa. Company's long term rating for its bank loan facilities has been reaffirmed by Crescent at AAA stable. During H1 twenty twenty six, net capitalized CapEx amounted to INR 9,500 million. This included INR 200 crores or INR 2,000 million towards brownfield expansion in India, including value added dairy beverages line at Supa and INR 1,000 million towards snack manufacturing plant in Zimbabwe and INR 4,000 million towards market infrastructure, including busy coolers, glass bottles, pallets and vehicles, etcetera.

9:44 The balance was attributable to foreign exchange fluctuations. As on 06/30/2026, capital work in progress stood at the level of INR 4,900 million, primarily relating to expansion in South Africa and the CST line in Kenya. In addition, inorganic CapEx of INR 11,314 million was incurred towards the acquisition of Twiza Limited in South Africa. Looking ahead, we remain focused on sustaining our growth trajectory by leveraging our expanded capacities, diversified portfolio and extensive distribution network. In India, favorable demand trends, increasing beverage penetration and continued investments in market infrastructure provide a strong foundation for future growth, while the ongoing expansion of our international operations, they broaden our opportunity base across markets.

10:43 We believe our strong execution capabilities will enable us to deliver consistent performance going forward. On that note, I have come to an end of opening remarks and would like to now ask the moderator to open the forum for any questions or questions that you may have. Thank you. Thank you very much. We will now begin the question and answer session. The The first question is from Abnish Roy from Nuvama. Please go ahead.

11:36 So thank you. My first question is on the demand side in India. So if you could tell us on INR 10 price point, is there any further scale up for your business and outlook on that? Second is when I see the quarter number, clearly, was challenging for the category. But if I see Campa Cola's numbers, they claim to have achieved 50% of FY 'twenty six sales in same quarter. So if you could tell us if the rain impact was more in your geographies because that could be the reason. So these... That's my first question. Thank you. So So let me answer that. Hello? Yeah. Go ahead, Varun. Yeah. So let me answer that. We have not scaled up rupees 10 significantly.

12:24 So if you see our growth, right, which is March onwards, we are growing elderly elderly 20% plus. Right? Even, you know, post June, we're looking at a 20% plus growth at least minimum. So the 10 rupee is a nonprofitable category for us. And as long as we're delivering 20% plus growth in most of our markets, we are pretty happy with those growth. And long term sustainability is not there. Yes. Certain markets, we are obviously pushing 10 rupees, but it's not a very big mix for us as yet in our portfolio. So that's the first thing. Sorry. What was your second question? That Canpa is growing and I think Canpa is growing. I think, yeah, the positioning what we've always taken is that, you know, Canpa at that price point will grow because there's a certain population which is not, you know, able to, you know, access or have access to the to the to the price points, right, in terms of consumption.

13:21 So Campa is growing. The rupees 10 is growing. Maybe they're eating our local brands as well at the same time. But in our markets, at least we are seeing that we are growing at the same time as well with our price points. So I'm sure a lot of new people are getting recruited in the category as well at rupees 10. Hence, they could be getting a lot of volume from there. They could be eating a lot of b brands as well, which is significant in a lot of our markets as an industry base. And, you know, we are seeing good growth in terms of where we are apart from April where the MVNO effect was there heavily. Also, I think Kempa is expanding their territory. So I think it's very difficult to analyze the growth is coming from the same territory or for expanding territory. Sure. Thanks. So one follow-up here, essentially.

14:07 So if I see because of Canpa, the entire industry is offering more GramEdge at the same SKU. So even for your SKU at 20, there is more Grammage. So if I manage the the volume growth of, say, 14% or 13% and the and the... This kind of a Grammage growth, could you comment on how much is the pack difference versus earlier? So because that will give us one metric of the consumption because if you add Grammage, your volume growth will be benefiting because of that. If you could comment on pack growth. Yes. But that I think we keep on changing our pack sizes. So we always look at and announce our details are based on eight ounce, and which is what we base it on. And all our territories are all somewhere we downsize, somewhere we upsize.

14:58 So these will continue in the whole business. But overall, we are growing in pack size as well as overall eight ounce. Abhish, as Chairman mentioned, everything is dragged in eight ounce basis. If my realization has not come down per eight ounce case, my EBITDA or the gross margin has not come down. So that's immaterial. Basically, the idea is to give the benefit to the ultimate consumer instead of giving to the trade or otherwise and then utilize the newcomers coming giving the product at cheaper price. So that's why we are continuing from the onset of this with the exception of April growing with the 20% -plus from the beginning.

15:51 So that's the biggest indicator. So thank you. My second and last question is on the Economic Times article, which came four days back. So I wanted more clarity on that article and focus of the group and company on AlcoBev in India. So that article says that the group has hired from Diageo, a very senior person, to head the group's beverage footprint. So I wanted to understand, is Varun also going to participate in this? Because clearly, have expanded your agreement with Pepsi to go beyond soft drinks. So... And this article also says on bidding for Vida. So if you could address this entry in India, what are the long term plans for the company specifically? Yes. Well, at the moment, we are not we are still looking at what are the categories we would expand. We are hiring some people to look at new ventures, new possibilities, but it's too early. We have just got clearance with Pepsi and we are not looking at Beera.

16:55 And Prathamesh is for group or for company? It's for the group. It's for the group. So he will be helping us in lot of other things. It's not alcohol only. Sure. Thank you. That's all from my side. Yes. Thank you. The next question is from Aditya Soman from CLSA. Please go ahead. Yes. Hi. Good afternoon. So two questions. Firstly, can you give us a sense of growth by category, especially some of the new categories that you've launched like nimbos or milk based beverages, how the growth has sort of evolved? And is there any meaningful difference between those categories and carbonated beverages?

17:42 And second, we've seen that post during the GSP changes end of last year, we saw a meaningful change in some of the beverage categories where the GSP has come down, but in carbonated beverages, not so much. So is that leading to any sort of differences in category level growth? Those are my two questions. Our focus... Yeah. I can answer that. I think our focus has been very, very strong to kind of build a differentiated portfolio as well over the last three to four years. It didn't... It just didn't start now. So if you look at other categories, which is, you know, Tropicana juice, it could be value added dairy. We've expanded the range, added a lot of new products at different price points. We've got nimbu, which is a hydration category. So if you look at hydration and dairy particularly and juice, these have been high growth and focused categories for us. So in terms of growth, what I can't give you the specifics here, but at least we're seeing 3x, 4x growth compared to our overall business and we are heavily focusing on driving these categories.

18:52 Hello? Yes. No, that's very clear. And maybe if you can just answer on the GST effect, any sort of the meaningful positive effect on the other businesses? So I can also give you some numbers for your comfort that Varun is growing at over 40% for us and Nimbus is growing at more than 30% for us. Very clear. Thank you. Thank you. What was the other question? Any other question? So just in terms of the GST impact, right? Because one of the areas The we have seen GST in impact was very minimal with certain products, which was like dairy nibble Water and So that was we are seeing growth and we were because of the geopolitical issues, the pricing, some of these categories would have had to be taken up. But because of this, it has helped and we are now sustaining the prices and continuing to be able to sell at the old prices, which is helping us grow the business.

20:11 Very clear. And since you've talked about sort of the geographic ratios, just a follow-up here. In terms of raw materials, last quarter you'd indicated that obviously you had sufficient supplies of input materials to run through sort of 2Q. From here, how do you see that play out? We are still we keep buying, so we don't dry ourselves just because so we have now made sure that we have enough material for quarter three, but obviously there is an impact of cost and which has got mixed with the so we average our cost price and we have taken part of it in the second quarter also and the balance would come in the third quarter. So our pricing would remain same and overall effect would not be large because we have averaged out the pricing.

21:05 Understand. That's very clear. So some of the effect has already come in 2Q? Yes, yes. Reasonable portion because we've averaged it and we have got enough stock for quarter three, so we acquired more goods at higher price, but we averaged out the price of in the second quarter. Aditya, basically the COGS and the inventory valuation is not on FIFO, it's on average costing. So the purchases which were earlier opening stock, which was sufficient to cover for the quarter, although consumption might have happened of that, but the pricing to the P and L goes based upon the average. Because in the last quarter also, kept we purchased and kept sufficiently the inventory for ongoing quarter also.

21:52 As Varun mentioned, we are continuing to grow at the same percentage from the onset of the season, we are growing with the exception of March when healthy '20s. So this inventory is going to be really useful and handy. And at average price, which may be actually lower than the today's price, but it's average price because part of this is booked in the P and L of last quarter is going to be helpful. So there won't be any surprises on that account. Very clear. Thank you. Thank you. The next question is from Anand Shah from Axis Capital. Please go ahead.

22:39 Yes. Hi, sir. Thanks for the opportunity. Just two questions. Firstly, any sense you can share on the industry growth, how it has been this time? I mean, general broader view as to how industry would have grown in volumes. And second, also on international part, I mean, you've seen quite a strong growth. Even if I take out to Itzais, more than 25% growth Y o Y. So, mean, are all geographies firing there or South Africa, Congo are growing much faster and it seems even Morocco, Zimbabwe may have grown well there. So, just wanted some color on international and broader industry growth this quarter. Internationally, all our countries, except Zambia, is slightly slower, but all other countries are in, which is a very small market for us. All our countries are growing at a reasonably fast pace, And there is a huge opportunity in Africa.

23:35 And last year, we had some issue with Zimbabwe, which has also started firing now because of sugar tax and all that. But that now all the countries in the African region are firing for us or international market rather. So we see good potential going forward, and we are expanding in the African Continent. Got it. Varun, anything on the industry growth in India? I mean, this quarter, any sense they will be in line with the industry growth or... Can't give you the exact, but if we are growing at 15%, if you see at the first half And Campa, you're saying it's growing at 50 or doubling. So and I'm sure Coke is also growing. So there's no reason that means the industry has to be growing more than 20%.

24:27 So I don't know the real numbers. In fact, here you also had to see, Anand, the cannibalization of B brands in that Yes. Exact numbers are not there. So but I think all the three main players are all growing. So there's enough growth which is happening in the industry. Please go ahead. Yes. Anand, go ahead, please. Yes. And then last question was on the food distribution manufacturing in Africa. I mean, how is that scaling up? You had shared some numbers in '26. So what are the targets That for is also growing well for us. That is growing well for us.

25:14 What's the numbers? 146 against 199. So about 50%, that is growing at about 50%. Okay. Thanks a lot, sir. Thank you. Thank you. Thank you. The next question is from Satish Deshmukh from IIFL Capital. Please go ahead. Hi, sir. This is Parsi Panjshki here. Sir, just wanted to understand, I mean, in the past, we have said that we should grow the India business at kind of a low double digit kind of a number.

26:01 But at that time, basically, the competitive dynamic was different. Campa was not there or had just entered. And Coca Cola also was probably losing share at that point of time. Now both these players are ramping up sort of quite materially. So even if we assume that the industry grows at, let's say, a low double digit number, would that still mean that we as a company can achieve that kind of a growth? Yes. I don't see any reason. And if you see in the first half, we have grown at close to 15%, 14.4%. And now as we said, the peak season after March is we are growing at 20% plus. And July seems to be continuing at the same trend. So I don't see any reason why we should not be growing in double digit.

26:58 Yes, think if I go ahead Varun. Yes, yes. I'm saying while our growth has been very good, one must also be cognizant that it has come on a very favorable base. If I look at the two year CAGR, the quarter for India has seen a 3% kind of a growth. Even if I look at a three year CAGR, our growth is in single digit this quarter. So the question is just in reference to context of the current calendar for me. See, we can't look at a quarter. This quarter is always can be the rains can be little like July is looking very good now. So maybe because the other part was little heavier rains. So it keeps changing a little bit up and down. So very difficult to base it on quarter. You have Yes.

27:46 To look at the yearly I'll add another thing, Parthi. You see, what's happening with the whole MVNO effect as well, if I tell you 2024 and below right before, right, May used to contribute almost 15% of our business. Now if you see '25, '26 this year as well, because of El Nino effect, May is not contributing 15%. So this is on our overall business is also changing. And if you see April where it heavily rained, even May for us this year, right, we saw some effect of the, know, in May as well, even though maybe grew handsomely. Now each month when the weather impact is not bad, I mean, the kind of growth we are seeing of fabulous high double digit growth is what we are seeing. So essentially, it is the weather impact which is holding it back. The month, are not seeing weather impact.

28:37 And if you compare the last three year CAGR growth or from 'twenty four, we are growing heavy double digits from those months. Understood. Second question on margins, again, for the India business, but also to an extent for the consolidated business as well. If we have to maintain EBITDA margins largely on a Y o Y basis going ahead, up to what level of crude we are confident that we can maintain the margins? No, we can comfortably maintain our margins even in a year which is the worst year in the geopolitical reasons and all the costings have gone up internationally here, transportation cost has gone up. We have still been able to maintain our margins and this so when these the war stops and all these issues come down, our margins cannot get worse, it will only get better. So we are not worried about and we have never said our margins will be higher than X percentage, which we are maintaining and more than comfortably doing that.

29:45 Sure, sir. Understood. That's all from me. Thanks and all the best. Thank you. Thank you. The next question is from Jay Doshi from Kotak. Please go ahead. Yes. Hi. Thanks for the opportunity. I've got two questions. First one is, could you comment a little bit on what's happening at the industry level in energy drinks? How has the industry body responded to? And have you seen any impact at all on... No, I think there's a temporary effect because I think there was a confusion created without giving a clear direction. And now we've got the clear direction.

30:30 In June, it affected June and July, it affected a little bit. But going forward, there is no going to be no effect. They just want the word energy to be taken away, which does not change anything for us. So it was very small. Yeah. I I think what has happened in this is due to the confusion of the category in India since energy was not a category registered with. Hence, they had come after to say that, listen, there is... You cannot use energy and, you know, the positioning of energy, what you guys are doing. Now, like the chairman mentioned, we will remove energy and, you know, the industry has done it. But what we have seen is that even though there's been a temporary dip in the mix of energy, we are seeing all of that volume has shifted to CSD.

31:17 But now as the new labels are out in the market for us, we are seeing the uptick back into energy in terms of... Oh, back into STING as a brand for us, and the volumes are coming back. And you don't foresee any further regulatory challenges or anything. Right? So this is sorted for now? They have come out with a clear guideline that we should have the word energy removed within next thirty... Ninety days. Understood. Second question is, you know, we picked up that Kempa has reduced as, you know, 10 rupee SKU size to one fifty ml from 200 ml, which kind of suggests that they are also, you know, making an attempt to upgrade the consumer to 20 rupee price point because they continue to offer to 500 ml at 20 rupee.

32:02 Now, you know, you have responded with upsizing for the past six, nine months. So what... You know, are you able to sort of see any change in your market share trends, you know, at that INR20 price point after increasing the volumes from INR250 to 400 ml? Because the gap has significantly narrowed versus Kemper now at INR20? No, that's why it's looking positive and that's why we are confident of the growth to continue and we are showing growth and we accept that one month as we are saying, if we can grow healthily 20% and above, there's nothing better we can look at. See, Jay, the way we're looking at the business right now, I know there's been a lot of chatter around, you know, 10 rupee category and, you know, Campos launching it. What should you do? There are already b brands that are selling at 10 rupees, which have been selling for the last ten years.

32:54 What our focus out here is to build a profitable business and deliver the right growth. And the earlier question when somebody asked me that how are you looking at 10 rupees, my answer is that wherever and, you know, at India level, if month on month my growth is exceeding 20% without a 10 rupee category, then I'm not interested to get into it because that's not a category we would like to fight. And today, that's what we are seeing on month on month apart from April, like we mentioned. We are not... Because this is, you know, the MVNO effect, we did not get a growth in April. But other months, we are growing 20% plus. So so... And the 400 ml pack, what we have launched, we are obviously seeing larger recruitment of consumers coming in. And that strategy for us in majority of our markets is working for us, driving growth. And also what is happening is some people want to look at the pricing, then two people are sharing it and two people are sharing it and they are looking at. So we are happy both ways.

33:54 Understood. One last question. I don't know if you can answer that or not. But in PepsiCo's press release, they have indicated that their market share in India was stable or, you know, better for the three months starting March 1 to May 31. How do they look at... Because, you know, you generally meant... Mentioned that it's very difficult to get accurate data of industry. How do they what data do they look at when they make a comment? I think you should ask that question to them. I'll leave it for them to answer this. Understood. Got it. Thank We don't go into market share. Got it. Thank you, sir. Yes. Thank you. Thank you.

34:40 The next question is from Naman from Sangvi Family Office. Please go ahead. Yes. I hope you can hear me. Yes, Naman. We can hear you. Go ahead, please. So, sir, going forward, how do we see the the strategy for us? Would it be singularly focused on ramping up, you know, like, our current businesses, which includes, you know, the the low sugar low sugar? Or you see that right now the proportion of low sugar, no sugar is very high and it may retreat to some bit lower. And then again, some sugar related impact would come in in our overall gross margin. So how are we seeing that, sir?

35:31 No. Our... Largely, our portfolio is mid sugar, low sugar now or low sugar or zero sugar as you call it. Right? So there will be no sugar impact going forward because we've converted the entire portfolio already. Yes. Okay. Yeah. Okay. And the second question was that in April, the impact was majorly driven by El Nino. It was not because of some supply chain issues or mismanages or raw material availability? No. The only minor issue was cans, but there was nothing else, which is a very small portion of our business. Cans were the only affected for the quarter.

36:18 And sir, just if you could highlight what will be the percentage of total in percentage of total that is attributable to cans in the mix? No, CAN is 1% or 2% of our business, so nothing major. Okay. Thank you. That's it. All the best. Thank you. The next question is from the line of Nitin from Green Capital. Please go ahead. Hi, good afternoon. This is Nitin Shakta from the Green Capital Central family office. First of all, congratulations to the management of the Calpas manufacturing distribution agreement. So more on that as an investor, is there any thought process to expand the Assai Group holding lines now whether it comes to Wanda or Wilkinson or whether it comes to Solo?

37:08 Because what we are seeing across the world is certain niche value based line products are increasing volumes. For example, our Schweppes, Manaus Soda is doing very well. So similarly, I'm assuming Caltas is a strategic direction towards trying to identify high volume players. So just wanted to get a sense of future direction with your distribution Yeah. So as it is, is high. Yeah. I'll tell you, Vincent. So what our idea is dairy as a category, we're very bullish You know, we've been doing dairy as a category for many years now in the country, and we're seeing huge growth coming. Assahi is, you know, it's one of the world's leading companies with the best system processes and product quality. CalPERS is a is a great addition to our entire portfolio and to strengthen further our portfolio and our system processes and our manufacturing, you know, capability taking and learning from the Japanese as well. You know, our idea is to build a solid portfolio, but our starting point is CalPERS right now. We wanna stabilize CalPERS. We wanna, you know, structure CalPERS right in the market. So far, our conversation is only here, and, you know, let's see what the future holds.

38:19 So I would assume then ready to drink teas, coffees would also be on the radar at some point in time. Well, we're not sure as yet. We've not decided. So it's pretty much calculus for now. As I said, going forward, we're still figuring out what categories we want to do. Okay. Great. All the best and best of luck. Thank you. Thank you. Thank Thank you very much. We'll take that as the last question. I would now like to hand the conference over to the management team for closing comments. Thank you very much. Thanks for the participation. I hope we have been able to answer all your questions. Respectfully, should you need any further clarifications or would like to know more about the company, please feel free to contact our Investor Relations team.

39:10 Thank you once again for your interest in Sport for taking the time to join us on this call. Look forward to interacting with you soon. Thank you. Thank you very much. On behalf of Varun Beverages Limited, that concludes this conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.