CCL CCL PRODUCTS (INDIA) LIMITED

Corporate Office : 7-1-24/2/D, "Greendale", Ameerpel, Hyderabad » 500016, T.Si, India. TEL: +9i - 40 - 23732455 FAX : +91 - 40 - 23732499 [email protected] Website : www.cclproductscom

29th October, 2018

To

The Listing Department National Stock Exchange of India Limited Exchange Plaza, 5th Floor, Plot No. C/1 ^G Block, Bandra-Kurla Complex, Bandra East, MUMBAI — 400051.

Dear Sir,

Ref: Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 Sub: Transcript of the conference call held on 22"d October, 2018 Scrip Code: CCL

With reference to our intimation dated 20th October, 2018, informing you about the conference call with Analyst/Investor to be held on 22"d October, 2018 above, please find enclosed herewith the transcript of the aforesaid conference call.

This is for your information and necessary records.

Regards,

For CCL Products (India) Limited

\$045))?-

Sridevi Dasari Company Secretary & Compliance Officer

Encl: as above

"CCL Products (India) Limited Q2 FY2019 Earnings Conference Call"

October 22, 2018

• Moderator: Ladies and gen11emen, good day and we1come1o CC1_ Rrodncrs 1ndia Limired Q2 Fy2019 Earnings Cmference Call hasten by Nmnal Bang Equities As ^a reminder» all partlmpants' 1ines wi11 be in me listenrcmly mode and mere wi11 be an opporrnniry for you 1o ask onesrions afler me presenrarion conc1ndes snon1d you need assisrance dnring me :anerence ca11p1ease sigrra1 an operaior by pressing W and men "0' on yonr1onch1one 1e1epnone Please nore mar mis conference is being recorded ¹ now hand me canference oyer 1o Mr Abhishek Naya1gnnd from Ninna1 Bang Eoniries Thank you and over 1o you Sir'
• Ahhishek Navalgund Good aflemuun eyeryone On behalfuf Ninna1 Bang 1ns1i1n1iona1 Eoniries ¹ we1come you an on mis Q2 Fy2019 earnings ca11 quCL Rrodncrs 1ndia Limired so from managemenr side, we have wim us Mr Cnana Srisnam, me Managing Director, Mr v Lakshmi Narayana, me CFO uflhe Company, Ms Srideyi, Company Secrerary and Mr ^P s Rao, Consn11an1 Company Secrerary of me company so we wi11 being me can wirn me opening remarks on me managemenr and men wi11 open me floor for Q04 so over 1o you Sir
• Chaua Srisham: Thank you for me inrrodncrion The group has achieved rurnoyer of Rs 292 ¹¹ Crores for me second onarrer of ^201872019 as compared 1o Rs 29s ⁵³ Crores for me corresponding quaneruflhe previous year and me nerprom is Rs 47 ¹⁸ Crores as againsr Rs 33 42 Crores

The EBITDA is Rs ^{77 62} Cmres and the profit before tax is Rs 65 59 Cmres For the half: year ended 201872019, me group has achieved ^a rumoyer of Rs ^{586 89} Crores as againsr Rs ^{545 94} Crores for me corresponding period of financial year ^201772018 and ner prom is Rs as 54 Crores as againsr Rs 50 4s Crores

During mis onarrer, me company has ekecnred some more promap1e conrracrs from viernam, which has a1so conrripnred, significanuy 1o me porrom1ine Regarding me 512 p1an1, we have commenced 1ria1prodnc1ion in mis Q3 and we are app1ying for me necessary permissions for me cerrificarion by me end of mis onarrer and by Q4 we are ekcepring 1o receiye a111nenecessary c1ien1 approya1 as we11 as cerrificarions and we arerargering 1o srarr commercia1prodnc1ion from April 1, 2019

in 1ign1onne apoye, we are a1so reyising guidance for mis year from ear1ier 10% 1o 20% porrom1ine where increasing i1 1o 15%1o 20% porrom1ine, 1op1ine has s1i11 expecred 1o be in me rangeuf 5% 1o 10% Thar ⁵ i1 we can go oyer 1o me onesrions

Moderator Thank you yery much Sir We wi11 now begin me onesrion and answer session The firsr ones rion is from 1ne1ineo€1ignesn Ramani from GMO Group Please go ahead

• .vignesh Kansani iusr so have ^a view on he voiume growrh borh in india and viernam i rhink in india we were running aimosr full capaciry despire ufuur EBITDA grew by around 20% so voiume growrh was very heairhy urproducliun was far superiorv
• Chauu Srishum- Acruaiiy in india, we were aperaling as full capaciry bur yes, we srarred doing ^a iime bir more of smaii pack orders in rhis year, which is aiso conhiburing ro furrher vaiue addirion so here is aiso ^a iime bilufmargin expansion has we are seeing because uflhal Nexlyear onwards we are aiso pianning for anew packaging faciiiry and we are going for more vaiue addirion predominanriy roday we are seiiing mosriy buik coffee rhar is he maroriry ufuur business, bur we are moving more in more so smaii packs and his makes rhe business aiso more sricky because we are suppiying ro supen'narkels and brand owners in rhar brand name
• .vignesh Kansani Same ciieru is shifled so more or you can say smaii pack order or we are gening new ciienr which lead {a better"
• Chauu Srishum: We are geuing new ciierus in some business rhar we are rrying so get for ^a coupie ufyears has has hansiared inro orders now and some ufuurexisling cusromers are aiso buying some more addirionai smaii packs from us

.vignesh Kansani Undersrood so rhar can do promabiiiry more susrainabiev

• Chaua Srisham: Yes that is Correct
• .vignesh Kansani How is the volume growih in viehramv
• C halls Srishu Viehram we are on track n is almost about 15% or so was the volume growih that we have seen
• .vignesh Kansani Okay and Just on the new freezerdried unit based on the interaction with the client what kind ufulilisaliun we can achieve in he nekr yearv
• C halls Srishu Nekr year we are rargering around 50% uriiizarion
• .vignesh Kansani wirh whar abour rhe margin we used so reporr in pass on he baseiine or {here is diiurion is {he marginv
• Chauu Srishum: No he same simiiar margin
• .vignesh Kansani Thanks alul

• Mederarer Thank yeu The nekr quesrien is frem rhe line ef Nirin Gesar frem lnyesce Murual Fund Please ge ahead
• Nirin Cesar Cengrars en ^a geed ser ufnumbers The guidance en rhe underlying cemmercial ecenemics uflhe business ceuple ufquaners back we were srruggling re see prefirabiliry visVérvis wirh rhe expecrarien rhar we had ser, rhis year rhe firsr half we have seen rhe prefirabiliry has sharply inpreyed versus rhe expectation l was rrying re undersrand is ir rhe underlying business for freeze, which has impreyed wherein we had seme cencenr rhar glebally mere capaciries are ceming and which weuld be ekerring seme bir ufpmfilabilily pressurev
• Chaua Srishanr: ^l undersreed rhe euesrien If yeu ge re rhe earlier rranscriprs alse ene of rhe rhing is lasr year and rhe year before rhar we were focusing mainly en rhe yelume grewrh and especially in rhe lasr financial year, we were focusing mainly en rhe yelume grewrh and we were adding new cusremers as well and rhar was suppesed re be rhe faundalicm fur gerring new cusremers en beard and reday new we are realizing rhar whareyer srraregic decisien we have raken lasr year we are reaping rhe benefirs from rhis year enwards Seme of rhese cusremers whem we supplied in bulk lasr year, rhey have esrablished us as ^a censisrenr supplier and rhey have srarred giving erders for small packs as well, which is alse ene of rhe reasens why we are seeing grewrh rhis year enwards
• Nirin Cesar On rhis same is rhere ^a way re undersrand hew much percenrage of businesses righr new srill in bulk and hew much is in small packsv
• Chaua Srishanr-Areund 70% will be rhe bulk business in lndia and abeur 30% efrhe lndia business is righr new in small packs viernam almesreyeryrhing is in bulk
• Nirin Cesar There is high degree of prefirabiliry, which can be expected if mere clienrs ger skewed rewards rhe smaller packsv
• Chaua Srishanr-Thai is Correct

Fer rhem re shifl small packs whar is rhe advanrage rhey gerv

Fer rhem rhey are buying from enly ene single persen Earlier rhey used re buy from resellers, we used re supply re resellers in differenr geegraphies, rhey used re pack rhe preducr ar rheir margin and rhen supply By buying direcrly from us rhey are gerring an advanrage of buying direcrly from rhe manufacrurer se depending en rhe yelumes rhar rhey are buying rhey will ger rhe price adyanrage alse, as eppesed re buying from many of rhe resellers er rhird parries

• N n Gasar One lasrauesrien en freezerdried faciliry, which is ceming up farcummarcialisaliun ln pasr wheneyer rhe new fac ry used re ceme up, we used re see ^a Jump in yelume, bur ^a dip in margins er rhe premabiliry Sheuld we ekpeer ^a similar kind ufuulcume for rhe nekr rwe years when lhefacilily will be ayailablev
• Cnua Srisnm: Ner really Ner ^a significanr dip in margins er anyrhing like rhar Ifyuu leek ar viernam alse when we srarred umi ng rhe planr inirially we had less rhan 50% urilizarien because we had inheduced Spray Dried Coffee in viernam where rhere was already ^a ler of cenperirien New in lndia we are selling up Freeze Drying plan where rhedemand is much mere and Freeze Dried is ^a significanrly mere premium preducr and we are inrreducing preduers, which are in Freeze Dried caregeries, rhere are several subearegeries of mere premium preducrs rhar we are inrreducing Se rhe main purpese of selling up rhis planr alse was re expand eur offerings in Freeze Dried, ner Just rhe plain yanilla rype Bulk Freeze Dried rhar we used re manufacrure, bur new we can de ^a wider range ufpruducls as well, which is ene of lhe reasens why we are quire cenfidenr rhar we can mainrain rhe same margins
• Nitin Gasar Ger ir Sir Thank yeu
• Madantar: Thank yeu The nekr auesrien is fram rhe line of Renak Menaria from Edelweiss Asser Managemenl Please ge ahead
• Rank Marjaria Geed aflermun Cengrarularieus en ^a geed ser of numbers Sir, if yeu ceuld rhrew seme lighren eur rerail demesric eperariensv Whar has been rhe reyenue rhisauarrerv
• Cnua Srisnm: Fer rhe firsr half new, i we have dene abeur Rs 40 Creres as reyenue from rhe demesric marker Lasr menrh we have launched Malgudi and THls brand for ^{a 3} IN l premix, we have srarred placing rhe preducrs in rhe marker and enline Our preyeerien for rhis year is abeur Rs ¹⁰⁰ Creres and rhis Q3 and Q4 will give us ^a clearer picrure as re rhe respeuse of lhe preduers in rhe marker Currenr preyeeriens are ar Rs ¹⁰⁰ Creres, se we will knew rewards rhe end qu4 whar we are really able re achieve eurenhis
• Rank Marjaria Duluf lhis Rs ⁴⁰ Creres like reughly 50% weuld be direclly lhe 32C and balance weuld be {a 323"
• Cnua Srisnm Yes lhal is cerrecl
• Rank Marjaria Sir, are we haying any plans for any furrher expansion en viehram side in rhe nekr ene year er lwev

• Challa Srisham viehram we are daing ^a lillle bilufline balancing la enhance lhe capacily becaase lhis year we will be reaching lhal aplimal alilizalian in viehram, sa we need same addilianal capacily ayer lhere, sa wilh lhe minimam amaanl of inyeshnenls we can da same line balancing and increase lhe capacily la araand addilianal 3500 lannes by nekl year
• Ranak Marjaria Okay sa lhal waald be ready by lhe end ale2020 yaa are sayingv
• c halla Srishanl Yes
• Ranak Marjaria And raaghly haw mach waald ilcasl for "5'7

c halla Srishanl Araand \$8 millian is whal we are prarecling an lhe higher side

• Ranak Marjaria Thank yaa and all lhe besl Sir
• Maderalar Thank yaa The nekldaeslian is fram lhe line afRahal Ranade fram Galdman Sachs Assel Managemenl Please ga ahead
• Rahal Rande Thanks for lhe apparlanily IJusl wanled la andersland lhis praparlian of balk yersas small pack whal was lhis say ayear aga in lhe lndia basinessv
• Challa Srisham A year aga, l will say may be araand belween 20% and 25% in lndiawas in small packs
• Rahal Rande Which has maved ap la 30% lhenv
• Challa Srisham Ves. araand 30% and naw wilh lhe dameslic markel valames alsa increasing, bal likely la ga ap eyen larlher gaing forward
• Rahal Rande lasl lunklng al same hlslarlcal dala {ram lhe campany's quarlerlyc lhe lasl lwa years aclaally saw yery significanl spike ap in lhe EBITDA margins daring lhe December aaarler, which has kind of happened in lhe Seplember aaarler lhis lime araand, sa l yasl wanled la andersland whelher lhere is any seasanalily inward lhal we shaald kind ufknuw aw
• Challa Srisham Aclaally forum lype ufbusiness yaa haye la leak al il an ayearrmryear basis anly becaase caslamer samelimes lhey may wanl la place arders in ane parlicalar aaarler as appased la analher aaarler, sa in Q2 lhis lime we have aclaally ekecaled same mare prafilable canlracls lhal we waald haye alherwise ekecaled in Q3 ar Q4 Thal is ane of lhe main reasans why we have seen ^a sabslanlial hike lhis year

• Akhil Parekh My second question is on the utilization level for first half at lndia and Vietnam so should we able to continue with 95% in lndia, around 75% to 80% in Vietnam by the end of the calendar yearv
• Chaua Srisham-Between 90% and 95% l am factoring shut down period for maintenance and everything, 90% to 95% is what we are doing in lndia, and we are going to continue with the same thing, Viehram we are seeing an increase in utilization around 75% to 80% as what we are targeting this year
• Akhil Parekh The maintenance shutdown you are saying it is going to happen in the second halfv
• Chaua Srisham: The maintenance shutdown has already conpleted in the first half itself
• Akhil Parekh Okay How many days it wasv
• Chaua Srisham: Ahout20 days
• Akhil Parekh My question is on the priyate label side So we have seen some TV commercial in the south right, so are we planning anything on ad spend in Hindi mediumv
• Actually we are l think not in Hindi medium We are now doing in the south only in the four states Tamil Nadu, Kamataka Telangana and AP in Tamil, Kannada and Telugu , three languages that we are doing the ads, we are targeting only the southeni states because this is where we are selling Malgudi Filter Coffee North lndia the filter coffee itself is negligible, so we are not targeting that market if we start targeting that market our ad spent amount also will increase substantially, which did make sense at this point in time
• Akhil Parekh Got it So we should not ekpect Malgudi in Deman, Big Bazaar in Mumbai mayhev

Chaua Srisham: That l am not too sure because most of the biggest chains they are asking us to keep the product there, and our ufflake in the Demans and all is actually quite good, the response has been so good, they are asking us to do the priyate label as well

• Akhil Parekh Just last question, in terms of expense last time we have maintained at whatever we are going to earn from Continental Coffee private Limited is going to go in the ad spent, ad in promotion plus ¹⁰ Crores from the CCl. right, do we stay with the guidancev
• Chaua Srisham: Right We are 100% on track for that There is no change

• Akhil Parekh Serry ene mere duesiien if ⁱ can squeeze in, in ierms ufmargin ebyieusiy mere has been ^a sharp impreyemeni for firsi half new aimesi 24% of the margins were uiuing yersus 21% iasi year, se any ceieur en the margin guidance Sirv
• Chauu Srishum-Ne, se frankly, {his is eniy ii appears {a have increased Our per kg reaiizaiien is still the same n is eniy because of the raw maieriai prices ceming dewn en ^a perceniage basis is appears that we are geuing ^a highermargin Se {his as yeu knew when coffee green prices ge up men {his margin perceniage as such will aise ceme dewn
• Akhil Parekh Thank yeu se much for answering my duesiiens
• Mederater: Thank yeu The neki queslicm is ^a followup from {he iine of Niki" Gesar from inyesce Muiuai Fund Please ge ahead
• Nitin Cesar: My followup duesiien is en the smaii pack iine, i guess in yeur siariing cammemary yeu made ^a nuke en the packaging iines, which we were geing {a pui en addiiienai, ceuid yeu niguiigui bew much is {he capek, which will be inyeiyed en mere and new is will change {he reyenue preme er the earnings pmfi le'7
• Chauu Srishum: yes, we are seuing up an aggiemeraiien and packing unii by neki financial year, {he inyessmeni is apprekimaieiy areund mmiiiien
• Okay This is in indiav
• in india This is euiside {he SEZ in Sullurpel The SE is ³⁰ acres of iand We aiready purcuased seme addiiienai iand aise four years age, se in max baiance periien we are seuing up {his unii
• Serry iei me pui ii in {his way se wuaieyer reyenue er the euapui iuai we generaie eui of cuiueer piani, we will push ii inreugu the new unii for agglumaralicm and packaging and may garner mere yaiueadded preduci sen for max faciiiiyv
• The SE plant is ^a separaie unit that is catering to me expen market The unit that we are prepesing {a sex up is ^a DTA unii because cf the increased yeiume in {he demesiic market mainiy New me numberuf SKU: that we have inireduced in {he demesiic market aise has increased subsianiiaiiy apari from this, even eur ekperi erders for smaii pans have been increasing, se keeping ibese {we requiremerus in mind, we are seuing up ^a DTA unii outside me SE unit

• N n Cesar: This ⁵¹² millien capex rhar we are geing re de, rhis will be able re suffice whar kind ef euanriry rhar yeu preduce in lndia like say 20000 renne is rhe capaciryv
• Chaua Srisham: Whar we are geing re de is we are serring up an agglemerarien capaciry of abeur ⁵⁰⁰⁰ rennes and rhe packing capaciry alse will be similar areund berween 3000 and 5000 rennes is rhe packing capabiliry rhar we are geing re serup, se rhere is ne addirienal preducr rhar will ceme, bur we see yalue addirien rhar cemes in because of rhis inyesrmenr lr will be mere er less fully auremared packing line
• Nitin Cesar: Okay and whar weuld be rhe incremenral realizarierr rhar we sheuld be expecring for rhisv
• Chaua Srisham: There sheuld be an incremenral realizarien maybe areund addirierrally maybe 5% mere ar leasr we sheuld ger becauseuf rhe small packs
• Nitin Cesar: Okay and for addirierral 2% er 3% expense is rhar rhe wayv
• yes, semerhing like rhar
• Lasr euesrien is wirh regard re [NR depreciarien, new rhe exisring numbers rhar we are seeing, are we haying any kind of [NR depreciarien benefirs in rerms of berrer realizarien and berrerprefirabiliryv
• One because we are buying eur raw marerial in dellars and we are selling eur finished preducr in dellar, rhere is ^a narural hedge, for ar leasr 70% of eur preducr cesr is raw marerial, because rhere is ^a narural hedge eyer here, auremarically, enly in rhe balance 30% where we are deing rhe cenyersien aspecr eyer rhere, rhere will be ^a marginal benefir rhar we are gerring
• Ger ir Serry l have ene mere euesrien Glebally aceuple ufquaners back when we used re discuss rhere used re be ^a werry abeur rhe incremenral capaciries, which are ceming up en Sprayed Dried where we are purring up pressure en rhe realizarien, as rhar scenarie changed, mederared er has wersened any kind of updare en rharv
• Chaua Srisham: Addirienal capaciries were always rhere There was mere rhan 50% excess capaciry in rhe pasr and eyen new rhar is rhe same siruarierr There are new capaciries censranrl y ceming en bread as well, bur ene rhing whareyen rhe peeple whe are building new capaciries realizing is rhar rusr haying ^a preducrien faciliry is ner sufficienr re generare sales When yeu are werking wirh coffee brands, rhere is ^a ler of RKLDS rhar required, rhere is ^a ler ufpmducl deyelepmenr rhar is required all rhis is quire expensive and rime censuming, en rep of all

rhis, yeu need rhe righr parhrers and mulriple geegraphies whe can help inrreeuce yeur preeucr in rhese markers, whar we have in areal mere rhan 20 years age, rhe relarienships rhar we have builr mere rhan 20 years age, we have been able re ger censisrenr repear business because of rhar Se whareyer we ee like eyen lasr year whar we had eene was in lighr of rhe acleirienal cernperirien and all we were rrying re be mere aggressive in rhe marker and we were successful in adding mere yelurne re eur business New we are able re rake rhar relarienship re rhe nekr leyel as well Se rhis is an engeing precess rhar is geing re be rhere and geing forward alse we are ner ekpecring rhe cernperirien re reduce We have mulriple aeyanrages because uflhe planr being ²⁰ years ele and we alse haye ler ufpruducl eeyeleprnenr rhar we have eene, we have ecenernies of sale, se rhere are mulriple aeyanrages rhar we have, rhar is enabling us re be cernpeririye Geing forward alse because we are censranrly expanding eur capaciries, we ee ner see any preblern in selling mere yelurnes in rhe furure as well

• R ka Garg: Geed aflemuun Sir Sirl wanred re knew regarding yeur 32c business, se we are planning re grew ar l00% in mama and whar will we prerecr fur Fy2020v
• Chaua Srisham: End of Q4, we will be able re answer rhar euesrien because reday we havejusl dene rhe preducr launch We are placing rhe preducr in rhe markers and all, rhe inirial censumer panel resrs, we ger pesirive respense, acrual censumer emake whar we will be able re achieve, will enly knew ar rhe end of Q4 and rhar peinr in rime, we will be able re give ^a mere realisric preyecrien fur nekr year
• Ririka Gar Fer Freeze Dried rhemargins are berrer in viernam er in lndiav
• Chaua Srisham: Freeze Dried we have enly in lndia The Freeze Dried manufacruring is rhere enly in lndia and viernam we have enly Spray Dried manufacruring
• Ririka aarg: The margins are berrer in viernam er in lndiav
• C halls Srisha ln viernam because rhe rechnelegy rhar we incerperared in viernam alse is slalerufrlheran rechnelegy and we are able re offer ^a much wider range of premium preducrs from viernam, se srraregically we serup rhe planr ever rhere alse, we had dene subsranrially higher invesrmenr in viernam alse en day ene, se rhar we can ger berrer realizariens ever rhere
• Okay and se eurcurrenr viernam capaciry uri zarien is 75% re 80%v
• This year we are rargering 75% re 80%
• Ririka aarg: And whar was ir in Fy20l8v
• Chaua Srisham: Thar was 50% re 70%
• Ceuld yeu alse rhrew seme lighr en like rhe glebal preducrien ufRubusla and Arabica and rheir pricesv
• Chaua Srisham: Glebal preducrien wise, reday rhere are number cf €acrers, which are rhere, which is resulring in rhe flucruarien in prices There is ^a bumper crep rhis year in Brazil as well as viernam, which is why rhe coffee prices have been under pressure for rhe lasr ceuple cf menrhs, bur in rhe lasr week er se, rhe marker srarred recevering mainly because cf rhe Brazilian elecriens And rhe parry is ekpecred re ceme inre pewer ir is suppesed re be mere prebe business and rhar is why rhe Rial srarred srrengrhening as well because ef which rhe green coffee prices have alse srarred geing up, Brazil being rhe largesr preducer ufcuffee in

rue worid So rue green coffee prices now mere is new news in me marker saying ruar mere is ^a coffee rusr ruar is impacring rue crop, ground ievei reaiiry is ^a differenr srory an rogeruer, so ar ruis poinr in rime rue coffee prices are under pressure, nexr year we will know oniy afler November when me new crop comes, wuar is me reaiisric siruarion is going [a be

• Ririka aarg: Do we sen our producrs on oniine channels aiso rurougu Amazon and so who are our conperirors because our price poinrs are preuy iow compared ro rue oruersv
• Challis Srishum-Acruaiiy if is comparabie because our MRP is aimosr in facr in some cases higher ruan rue conperirion aiso, and as far as me producrs are concerned, end ofrue day as far as coffee is concerned, our ouaiiry is someruing, which is significanriy differenr from wuar our conperirors are seiiing Ourproducrs are avaiiabie oniine
• Ritika Gar yes, i have acruaiiy ordered your coffee
• Challis Srishum: wueruer if is beuer or worse is someruing i cannor commenr on because if is an individuai choice, so wuar we have seen is ior of peopie have given us posirive feedback: saying ruar ruey have liked our coffee as ^a good airernarive
• Ritika Gar So who will be our direcr comperirorsv
• Challis Srishum: In India you have ^a duopoiy max is mainly Nescafe and HLL So max is Bru, so mese are rwo brands. which are seiiing in india righlnuw significanr ruird comperirion in me marker is basicaiiy us
• Rmka Gar So we pian ro rake marker share from ruemv

Challis Srishum: Acruaiiy we were pianning and growing rue marker aiso We are inrroducing ^a ior ofnew producrs There is aimosr ^a 15% ro 20% growru of coffee consumprion wiruin india india roday oniy in iess ruan ²⁰⁰⁰⁰ ronnes is being consumed in india roday if you look ar 0 s, ruey areconsuming 80000 ronnes, Japan consumes 35000 ronnes so me porenriai for growru and coffee consunprion is huge in india provided, we can aiso inrroduce producrs ar ^a rigur price poinr We have recenriy inrroduced ruis coffee, which is ^{a 3} in ^I premix ar ^a Rs ¹⁰ price poinr, so ruar is ^a good airernarive ar me nor beverage ro even rea So we are rusr rargering coffee as ^a comperirion, we are iooking ar ^a nor beverage marker

Okay, and where do we see me business as ^a percenrage ofour rorai revenuesv

• Chaua Srishum: BZC business reday wi11be1ess1nan 1% 2%, bur we are neping mar is re grew censisren11y like ifyuu luck aluur deniesric business from 1as1 year 1e new, eur BZC business has grewn mere man 100% in me firsr six menrnsi1se1€cernpared1e1as1year,i1nas grewn mere man 100%, se fram where semerning as we seem 1e be deing rignr, se hopefully rue 1rend wi11 cennnue
• Ririka aarg: wnar is eur adverrising spend for Fyz01gv
• Chalk! Srishzm: This year, we are 1arge1ing areund Rs 20 Creres fur adverrising

Ritika Gar - ²⁰ Creres, and me esrirnares mar yeu gave for name, yeu revised rue dewnwards for packs 1e 15% 1e 20%1

• Chalk! Srishzm: Ne, upwards ear1ier ¹ said 10% 1e 20%
• Ririka aarg: Okay New iris 15% 1e 20%
• C halls Srisha 15% 1e 20%
• R kn Garg: All rignr Thank yeu se much

Medemer: Thank yeu The nexr euesrien is from me 1ine of Nikhil Upadhyay from Securiries 1nves mieni Management Please ge ahead

• Nikhil Upadhyay: Thanks for me epperruniry and cengrars en ^a geed Sal ufnumbers Sir ruree euesriens, ene is en rue currency benem, which yeu said like areund 30% of i1 is epen, se when we ge for me contracts fer me nexi year, de we need 1e pass en that Complete benem {a me customer er new dees rue pricing worked inv
• Chaua Srishum: ¹¹ is not necessary that we have re pass en, but depending en wnem we are 1arge1ing If mere is anerber 1ndian supp1ier wne is supp1yingre1na1parricu1ar cempany and ifyuu wanr 1e be mere aggressive, {hey are passing en me benefii, we may a1se have {a pass en, but usua11y mar wi11 ner a1ways be me case because we are deing 1arge veiumes acress me wer1d, rue perrien of ruese mar we win be cempering from 1ndia is again very sma11 ¹¹ is g1eba1cernpe1i en mar we sneu1d be mere cencerned abeur And this has rea11y emean me currency deva1ua1ien is ene ruing ¹ weu1d ner say is rea11y helping us mar much a1se because currency has deva1ued in erner ceunrries as we11 Because rue de11ar has s1reng1bened,i1is ner en1y us geuing rue benem, i1 is emers wne are geuing mar benem as well Se lhalcumpleliun as such is smi mere

• Nikhil Upadbyay: sd nelrnel basica11y ibai means , sd my pdini was ibai ii is mdre driven by ibe markei pricing based dn wbicb dnr decisidn ufpassing dn dr ndi depends as we11 as ibe cnsidmer pnsbingv
• Challis Srisbamyes, ibai is cdrreci

Nikhil Upadbyay: Okay Secdnd1y, if! 1ddk ai dnr sedneniia1 nnmbers dn ibe sianda1dne, and sd ¹ am ynsi irying id infer if ¹ 1ddk ai June dnarier and Sepiember dnarier, dnr sa1es was ²¹⁸ id ²¹⁴ Crdres and in 1ddk ai ibe coffee prices, ibe coffee prices sedneniia11y were dn an average ddwn by 10%, wbicb means ibai we gdi ^a bmefilufamund 8% id 9% wbicb iben sbdn1d be basica11y ibe imprdyemeni, wbicb we gdi from ibe sma11er packs a1dng wiib ibe yd1nmes, wdn1d ibai be a cdrreci infdnnaiidnv

Chaua Srisbani: Yes that is Correct

Nikhil Upadbyay: Oiber iban ibis ¹³⁰ Crdres ufcapex, dd ydn foresee any diber capex for 20211

• Challis Srisbam: Nd, ndi rigbi ndw 2021 is ^a differeni sidry a11 idgeiber We are focusing dn ceriain cnsidmers ai ibis pdini in iime, if ibdse yd1nmes cdme ibrdngb and ibe demand for Spray Dried increases snbsianiia11y, iben we migbi gd in for addiiidna1 expansion in viebram for andiber 10000 idnnes, bni ai ibis pdini in iime we are p1anning maybe iwd years id ibree years ddwn ibe1ine
• Nikhil Upadbyay: Okay, sd ibis s20 mi11idn is ibe immediaie capex, wbicb we bayev

Chaua Srisbani: yes, by nexi financial year we win be spending ibis

Nikhil Upadbyay: 1_asi1y wben we say we are gding sma11er packs, ¹ am ynsi irying id nndersiand sd ibe lhruughuulufme cdre p1ani, wbicb is 20000 idnnesv

• Tbai remains ibe same and by dding agg1dmeraiidn a1 sd ii is ynsi cdnyersidn d6 ibe prddnci inid grann1es, sd dni d6 ibai 20000 idnnes approximately ardnnd 14000 idnnes is Spray Dried coffee, dni uflhak 14000 as spray we are a1ready agg1dmeraiing ardnnd 3500 idnnes bni ndw ibai ibe demand for agg1dmeraied coffee is a1sd increasing We are enbancing ibe agg1dmeraiidn capaciiy by andiber 5000 idnnes, sd ii is valueraddiliun ibai we are geiiing ndw
• Nikhil Upadbyay: Bui ibe number dfcycie cbanges in drder id creaie ibe blend and an ibai will remain ibe same, and ii is ynsi ibe ya1ne addiiidn and ibere is nd capaciiy addiiidn in ibis, rigbiv

margins alse we are expecting re cenrinue wirh rhe same margins rhar we have rhis year because rhe cerrecrien has already raken place from lasr year re rhis year

• Ahhijeet Akel . Thar is grear re hear lusr lasr rhing was in renns uflhe reral dehr raken en for rhe Chirreer prerecr, hew much is iruuruhhis Rs ³⁵⁰ Creres capekv
• Chaua Srishanr: Rs 180 Creres is rhe lean cempenenr
• AhhijeetAkel . The resr is all funded inrernallyv
• Chaua Srishanr: Thai is Correct
• A hhijeet A kela: Righr and lasr ene quick rhing, rhe PAT guidance change we have made, we have increased rhe PAT guidance re 15% re 20%, se rhar is largely because of ^a higher percenrage of value added preducrs, is rhar rhereasenv
• Chaua Srishanr: Yes, that is Correct
• A hhijeet A kela: Thank yeu se much and wish yeu all rhe hesr
• Mederarer: Thank yeu The nekr euesrien is from rhe linequkhil Parekh from Elara Capiral Please ge ahead
• Akhil Parekh: lusr rwe euesriens, ene is en rhe us FMCG cempany, lasr euarrer we were speaking aheur, we were expecring seme kind of rracrien eyer rhere, se because rhe Ecum rrader has shurdewn irs faciliry, are we seeing any pesiriye rracrien from rhar cenpanyv
• Ghana Srishum: We have already srarred supplying re rhern, hur again small yelurnes as of new Geing forward ceuld ge up hur ene of rhe rhing is rhar rhey are asking for is again small packs, se we wanred re build seme addirienal capaciry ufsmall packs before geing afler rhar business
• Akhil Parekh: is rhar rhereasen why we are building up rhe packaging faciliry in lndiav
• Ghana Srishum: Ner enly because ef rhar, bur rhar is alse ene ef rhe reasens
• Akhil Parekh: Okay Se we will be supplying irs from lndia for rharparricular us based clienrv
• Ghana Srishum: Yes

Akhil Parekh: Chaua Srishnm: Akhil Parekh: Chaua Srishnm: Akhil Parekh: Chaua Srishnm: Akhil Parekh: Chaua Srishnm: Akhil Parekh: Mederarer: Dhiral Shah: Chaua Srishnm: Dhiral Shah: Chaua Srishnm: Dhiral Shah: in rennage wenid yen be abie re share iike new much maybe iike in percenrage wise, new much yen are snppiying rigbr rrewv See me rennage ef wbar yen meanv Fer rbarparrieniar u s , ciienr, fur rbarparrieniar u s eiienrv Ne rigbrnew we are deing again smaii yeinmes, iess rban abenr 300 er sou rennes Tbar weexpecl arennd maybe 2000 rbar is wbar i rbink yen menrienedv yes, ir has ^a perenriai of grewing np re 2000, bnr rbar again depends err mniripie factors, se berrer ner re cemmenr err rbar rigbr new insr one iasr enesrien in rerms of rbe margin differenriai er rbe per renne differenriai berween rbe aggiemerared yersns SprayrDried, bew much rbar wenid bev iwenid say abenr 4% re 5% mere we will ger fur rbe aggiemerared cempared re rbe Spray Dried Ger ir Thank yen se much Thank yen The nexlqueslicm is irem rbe iirre uthiral Shah from Asirc Mebra Please ge ahead Geed aflemuun Sir Cengrarniariens for rbe geed ser ufnumbers Sir wbar is rbe margin gap berween smaii package and bnik packagev Frankiy rbar is rbe dimenir enesrien re answer beeanse ir depends err cnsremer re cnsremer, nsnaiiy i can range berween 5% re eyen 20%ezs% Tbarmneb ufdifference yes, ir is ^a huge yariarien depending err ensremer re cnsremer, depending err rbe markers rbar we are rargering, if we are eirber raking parr in renders, ir will be ^a differenr eesring, if ir is brand ewner, ir will be adifferenrcesring, se an rhese facrers are mere Okay and Sir secondly we are spending arennd siz miiiien for adding ⁵⁰⁰⁰ rennes of aggiemerarien capaciry, rigbrv

C halls Srisham New cusromers, we consranrly add ar leasr abour maybe IO lo IS cusromers every year our of which yolume guys will be may be rwo lo rnree people rnar we keep adding every year

Anuj .lain: How is our sales efforr is broken berween rue ekisring clienr as well as me new clienrsv

• Chauu Srishum-Ekisling clierus also keep increasing rneir yolumes wirn us in some cases, ifyou are adding ^a new cuslomer in one year, rue second or me rnird year, rue yolumes wirn mar parricular cuslomer can go up by eyen worsen/a because inirially ruey will rusl wanl lo lesr us our like lasr year me new cusromers mar we added we did some basic bulk producrs wirn rnem yanilla lype producls, which was nor yery complicaled Now mar ruey have mar rrusl and confidence mar we can supply whalever mey wanl wimin me limeframe mey wanl, mey will increase rue orders lo small packs and olner producrs wirn us now They are going up me value chain
• Anuj .lain: One lasr book keeping ouesrion, any parricular reason for increase in personal expenses in mis duanerv

Chauu Srishum: personal expenses, l ruink our CFO can answer rnar

Lakshmi Narayana: Tnar is essenrially rue commissions rnar have been accounred for The proporrionare commission payable lo rue whole time direcrors, we have made ^a provision on consranr basis insread of raking ir upon approval, we are spreading ir lo oyer ^a period ufmunlh on month basis

Anuj .lain: Thank you That's if from my end and besrofluck

Moderator: Thank you We have moved lo rue nekr from me line of Laksnminarayana Gami from SBICAP Securiries Limired Please go ahead

Lakshminarayana 6: lusr one ouesrion on wnar explain: me increase in demand for agglomerarion based coffeev

Ghana Srisham: Pardcm"

Lakshminarayana 6: wny demand for agglomerared coffee is risingv

Ghana Srishum: wny if is increasing is, in lndia ifyou look armosrofrneproducrs mar are being sold roday, like you have rwo main producrs, one is me pure coffee, which is being sold in agglomerared form by Nesrle and me second is SprayrDried powder, which is being sold in cnicory coffee blend by Bru wnar we are doing is we have inrroduced our conrinenral ekrra, which is an agglomerared SprayrDried coffee and our volumes of rnis producr has

aise been increasing as she demessic markes Based en sue prerecsiens snas eur demessic seam has giyen us, we needed se deubie sue capacisy by neks year Se snas is ene significans reasen, apars from snas we have eur esner ekpers cussemers aise snere are cersain specific markess, ence we ssarsed deing mere er smaii packs, mess of she smaii pack sue cussemers are asking sue suppiy wisn aggiemerased coffee Eariier when we used de in buik, we used se giye SprayrDried pewder, aggiemerasien used se be dene by sue repacker er reseiier, and snen sney used se seii se sue cussemer New we are eniy deing snas aggiemerasien as eur end and deing sue smaii packs and suppiying se cussemers as weii One suing yeu need se underssand is giebai markes if yeu ieek as eus of she ⁷⁵⁰⁰⁰⁰ sennes inssans coffee markes snas is suere, areund 250000 sennes se 300000 sennes wiii be Nessie and sney are rigns new seiiing eyerysning in aggiemerased coffee eniy Anycme wne is cempesing againss Nessie aise in she smaii pack business, suey prefer se have aggiemerased coffee

Lakshminarayana 6: is is suas sue cussemer perceives suem se be besser euaiisyv

• Ghana Srisham: yes, is is russ ^a pnysicai change in appearance, bus while making aggiemerased coffee, we aise de cersain precesses se enhance sue arema, se have besser binding of she granuies, se we de seme siignsiy yaiue addisiens is giyes sue premiumness Aggiemerased coffee is aise caiied me peer man's Freeszried coffee se sue percepsien snas is is mere premium has aiways been suere
• Lakshminarayana 6: i_ass euessien, new much is yeuressimase ufglubal FreezeDried capacisy and new much in senns ufsupplies ceming sureugn in she neks swe yearsv
• Ghana Srisham: My sninking maybe besween i50000 sennes and 200,000 sennes weuid be she FreezerDriad censumpsien seday in she werid and as snis peins in sime snere is yuss suificiens capacisy se mees sue demand If she Freeze Dried mix is increasing, snen ausemasicaiiy sue capacisy aise has se increase because ef sue high capisai cess, suere are nes many peepie who have ceme inse snis fieid, bus new sney are siewiy ensering
• Lakshminarayana 6: Bus yeu senseadifferemial grewsn rase for siignsiy besser grewsn rase for FreezerDriedV
• Ghana Srisham: Yes. we are seeing ^a much besser grewsu rase, because peepie acress sue werid aise suey wans mere premium preducss inciuding in freeze dried aise in freeze, we have ^a ies cf subs cnaracserizasiens, which are snere, mere premium preducs under sue FreezeDried end Se suese are sue areas where we have seen mere grewsu acsuaiiy

Lakshminarayana c: Thank yen and geed iuck

• Mnderntar: Thank yeu The nekr euesrien is frem rhe line ef Nidhi Agarwal frem Angel Braking Please ge ahead
• Nidhi Agarwal: Thanks fer raking my euesrien l have Just ^a euesrien en secend half, we have seen a40% increase in prems in firsr half, and se are we seeing any slew dewn in secend halfv
• Chaua Srishnm: Secend half, ene rhing we have been ^a liule mere censeryariye because we have ekecured like nennally like we de eyeryrime, cusremers decide when rhey wanr us re ekecure cerrain cenrracrs, se seme efrhe mere premable cenrracrs have been ekecured in Q2 irself, which is alse ene ef rhe reasens why we are expecting mere er less similar rrend as whar we have dene lasr year, Q3 and Q4, we are fecusing en cerrain cenrracrs, which we will get ^a liule bir mere clariry en ar rhe nekr couple ef menrhs lf rhe rhings pan eur, rhen eur guidance will be hiuing rhe higher number basically cleser re rhezov/a
• Nidhi Agarwal: Anulherquesliun en BZC business, we are seeing ^a ler ufdiscuums in cenrinenral preducrs, is rhis Asiaphase er are yeu selling ar less er we will stop seeing such one/unrune free kind efdealsv
• Chaua Srishnm: The reasen why we are giying rhar inirially buy ene gel ene free effers are as an inrreducrery effer We wanred rhe peeple re rry rhe preducr ar leasr ence, which is why we have inheduced wirh rhese kind efeffers These effers are gradually being phased eff, eyen buy ene gel ene free rhere is ne less as such, rhere is ne significanr margin rhar we may have bur we are ner facing any less eyer rhere Geing ferward, rhe effers are alse geuing reyised in facr frem rhis euarrer enwards we will be seeing rhe reyised packs in he supem'larkel shelyes as well
• Nidhi Agarwal: Thanks fer raking my euesriens

Mederater: Thank yeu The nekl dueslien is frem lhe line ef vikas Kasluri, an Individual lnyesler Please ge ahead

• My euesrien is abeur rwe years back, rhe Annual Repunmemiuned rhar we have abuulZOO blends, new yeu say rhar we have abeur 1000 blends, se is if possible re ceme up wirh an addilienal abeul ⁸⁰⁰ blends in such ^a shunperiod eflimev
• yes, because we have increased eur perrfelie ef efferings, we have added rhree in ene preducrs inre eur preducr mix as well There are se many permurariens and cembinariens, which are possible We have srarred effering rhese preducrs re differenr cusremers eyen , like cuslemer wanl a sweeler ceffee erdarker ceffee er a lighlerceffee if ceuld be any kind

cf requiremans lhal lhe cnsldrner giyes, lhal has resnlled in us crealing new prddncls for lhdse cnsldmers 5.: we have crealed lhese prddncls ndl nrsl like previous yanilla lype d6 Spray Dried coffee or FreezerDriad coffee Tdday aparl from lhe nsnal Arahica, Rdhnsla hlends, we have specially coffee, we have drganic, Fair Trade, Rainfuresl, we have lhree in dne lwd in dne, we have micrugmmm coffees, we have edld coffees, edld brews The lisl goes on and new we have also inlrddnced same lea prddncls as well There is nd prddncl in coffee lhal we canndl manniaclnre ldday There is nd dlher manufacturer in lhe wdrld you name il eyen lhe higgesl brand in lhe wdrld has lhe kind d6 flexibility ld make lhe number d6 prddncls lhal we are cnrrenlly making 5.: we can basically malch any prddncl manufactured by any manufacturer anywhere acrdss lhe wdrld sd lhal is lhe Capab ily lhal we are hnill up dyer lhe lasl 25 years

villas Kasum. Thank you Srisham Thai is all ^I had

Maderamr: Thank you The nekl dneslidn is from lhe line d6 Nikhil Upadhyay from Securilies lnveslmenl Managemenl Please gd ahead

• Nikhil Upadhyay: Thanks for lhe followup lnsl clue dneslidn an vielnarn like l lhink in one or lwd calls hack, you had menlidned lhal lhis lax holiday which we were gelling il ednld be eklended for nekl five years, so any npdales dyer lherev
• Chaua Srisham: yes, as dindw we did receiye an eklensidn, sd lhal same lax holiday is ednlinning new A: per lhe cnrrenl guvemmenlpulicy we gel lhis eklensidn, sd eyery year l lhink we will have ld keep applying for lhis
• Nikhil Upadhyay: Okay and deadline l am ndl snrev
• Chaua Srisham: They have ndl giyen lhe deadline yel
• Nikhil Upadhyay: Okay Thanks ^a ldl Sir
• Maderamr: Thank you The nekl dneslidn is from lhe line d6 Ann] Jain fram Value Onesl Capilal Please go ahead

Annj .lain: One lasl dneslien, in lhe lasl call, you have spoken ahdnl lhe new dyerseas clienl, whd is buying cenlinenlal coffee from us and selling dyerseas, any npdale an lhal relalienshipv

yes, lhal is whaleyer volumes have lhey laken lhal ydlrnne is slill being sdld in lhese markels, l dd ndl wanl ld gel inld delails aberrl lhis specifics here, we are seeing ^a grand relalidnship gelling builluver lhere as well

inceme cemes re Rsllz Creres and ir has rhar Rs2544 Creres ef rerai erher cemprehensiye inceme, whar is rharv

Lakshmi Narayana: The cemprehensiye inceme ir is rhe censeiidared, which yeu are seeing rhe number, number ene and rwe is rhar we have rhe inyesrmenr in viernam subsidiary and Swirzeriand subsidiary and rhe Singapere subsidiary wherein ar rhe rime of inyesrmenr rhe rupee yersus rhe presenr rupee which ameuurs re an appreciarien, se rhar ameunrs re 25 44 Creres as of Seprember 30

Arranuain: That's irmy side Thank yeu

Mederarer Thank yeu Ladies and genriemen, wirh rhis ^I new hand rhe cenference eyer re Mr Abhishek Navalgund Please ge ahead wirh yeur ciesing cemmenrs Sir

Abhishek Navalgund: Thank yeu re an rhe parricipanrs and managemeur of rhe CCL preduers for answering all rhe duesrieus parienriy ^I winrusr handeyer rhe can re yeu for yeur ciesing remarks Thank yeu

Chaua Shrisham-On behalf ef CCL, i weuid iike re rhank Nirmai Bang ream and an rhe parricipanrs fer raking parr in rhis canference irhiuk we will raik re yeu again nekr duarrer Thank yeu

Mederarer Thank yeu yery much Sir Ladies and genriemen, err behalfuf Nirmal Bang Eduiries rhar ceneiudes rhis conference call Thank yeu for Joining us yeu may new disceuneer yeur lines