00:00 We've been talking about the economic impact of what we're seeing in Ayodhya today.
00:06 And I want to understand from you, especially when you have a tier one city move to a tier
00:13 two, what is the kind of increase you see in demand from a staples point of view?
00:18 See, I'll give you an example of Kashi.
00:22 You have seen how Kashi has transformed in the last two, three years.
00:28 Last one month in Kashi, there has been so much of rush because the Ayodhya thing coming
00:34 up.
00:35 So people visiting Kashi first and in Kashi, I can tell you our sales are up by more than
00:40 30 percent in the last one month.
00:43 That is because principally the dhabas, hotels, restaurants, they are picking up our basmati
00:49 rice, small local rice.
00:52 And then we have the oil demand coming up.
00:56 So Kashi is an example where we have seen floating population, at least three to five
01:04 lakh people there every day coming and going.
01:08 So Kashi's population has increased by almost five lakhs.
01:10 Similarly, Ayodhya is three and a half only, but we will see seven lakh people moving here.
01:15 So that means whatever is my sale should double actually.
01:18 And that we are finding that these are essential products.
01:21 You know, most important is supply chain.
01:25 If you are available, people pick up.
01:27 The brand is known, but it should be available.
01:29 So we are working more on the supply chain so that there is no stock out.
01:33 And we have more number of restitutors and more number of depots or the stock points,
01:37 fulfillment centers to ensure that there is no problem because traffic can there be a
01:42 problem of the road, say in Allahabad, many times the roads are closed for any such occasions.
01:47 So we need alternate arrangement to dispatch.
01:50 Mr. Malik, just a broader question over here, and we've been seeing this with consumer staples
01:56 as we go into results season, the focus also on FMCG companies.
02:02 And I just want to get a sense from you on what you're seeing in demand.
02:06 The initial commentary coming in is showing some troubles of pocket, some pockets of trouble,
02:12 especially in rural areas, you know, bottom of the pyramid in terms of demand for staples.
02:20 Are you seeing signs of that?
02:21 Anything that you can share, any insight you can share on this?
02:24 See, to some extent, we have seen a small impact.
02:28 I can tell you our sales from rural edible oil is around 30 percent and 70 percent comes
02:33 from the urban areas.
02:34 This 30 percent has become 29 percent in the last six months, indicating that there is
02:40 some pressure in the rural market, but not great significance.
02:45 We have seen some pockets can be a little slow, but otherwise, by and large, rural has
02:49 supported us because we are in essentials.
02:52 And you will agree that every individual, whether in the rural or in the urban, requires
02:58 staples, whether in loose or in packed form.
03:02 But packed staples are increasing consumption.
03:05 We have seen Atta doing very well in rural markets.
03:09 We have seen even Basmati rice doing well.
03:12 People won't imagine, but branded sugar, we sell 25 percent in rural market.
03:17 So that's an indication that rural market is growing.
03:20 Although there has been a little stress, but I feel it has not impacted us to that extent.
03:28 Coming March, once the harvest is through of wheat, which is a bumper crop, mustard,
03:32 which is going to be a very good crop, and chana is also there, dal is there.
03:36 So I think the rural income will increase after March.
03:40 Do you also see prices then coming down of staples, which would have a positive impact
03:46 on margins?
03:47 See, one is wheat prices will surely come down, but the harvest is there in March, April.
03:53 So obviously from there it will come down.
03:55 That is one.
03:56 Two, pulses, chana is coming in the market, so chana will stabilize.
04:00 Oil is already at a very reasonable level.
04:04 One can't say it is high or low, but it is very reasonable and affordable price of less
04:09 than 100 rupees.
04:11 So to take everything together, I think the staples prices are very well positioned as
04:18 of now.
04:19 And going forward also, I don't see any high kid prices and all that.
04:24 Just one last question.
04:27 I know that nothing much is being said on this publicly right now, Mr. Malik, but I
04:31 can't help it.
04:32 I'm tempted to ask you since I have you here.
04:34 Anything you can share on a timeline for divestment or what the plans are there?
04:39 Any clarity you can give us?
04:41 See, we went public in February 22 and we diluted around 12%.
04:48 As per the norms, we are supposed to dilute up to 25%.
04:52 So another 13% dilution is awaited.
04:55 And we have time till next February 25.
04:59 So obviously we will have to work on it and there will be discussions how to dilute it
05:08 to further 25%.
05:09 That much I can say.
05:11 [Music]
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