DFM Food Ltd Q2 FY14 Results Conference Call

October 31, 2013

MANAGEMENT: MR. ROHAN JAIN EXECUTIVE DIRECTOR,

MR. MOHIT SATYANAND INDEPENDENT DIRECTOR.

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Raghavendra Jaipuria

Thank you for joining us on DFM Foods Limited Quarter 2 Results Conference Call. Today we
have with us, Mr. Rohan Jain Executive Director, Mr. Mohit Satyanand Independent
Director. Before we begin the call, I would like to add, some of the statements that we make in
todays discussion may be forward looking in nature. I would now request Mr. Satyanand to
make his opening remarks.

Mohit Satyanand

Thank you all for joining us on the DFM Foods Quarter 2 FY14 Results Con Call. It is
especially great for me to have Rohan sitting here and I hope he will be answering most of the
questions. I trust you have all received and reviewed our results presentation. I will start my
opening remarks with the operational highlights and then briefly touch upon the financial
numbers for the quarter and then go on to the Q&A. As I mentioned to those who have been on
earlier calls, the second quarter is traditionally a strong one for our snack food business. This
year, we saw the seasonal recovery in sales, though it was somewhat dampened by the
economic slowdown: something which all of you who cover the sector are more than familiar
with.
Our move to distribute in Kolkata and other parts of West Bengal continues and has generated
robust sales. The push into other States in the region has been slowed by procedural issues but
the product is now in place in Jharkhand and Orissa. And this quarter will see a significant
expansion in coverage in Eastern India. Our exercise of consolidating distribution in the West
is complete, though sales were affected by local business agitation over taxation issues. In the
North, sales have been in line with expectations.
On the product side, we continue to see strong growth in demand for our wheat based product
Natkhat, which is priced at Rs.2. This product helps take our line into smaller markets and to
new localities in North India. At its current price and margins, distribution is restricted to the
Northern States. This brings me to the new wheat based student snack food Krunchoids at Rs.5
price point, which we launched across all markets this quarter. With 4 high impact flavors and
launch advertising on several TV channels, we are generating trials and favorable feedback
across markets. Obviously 2 months is much too early to talk about its ongoing success but
feedback has been extremely positive.
A few comments on the companys financial performance. Our total sales grew impressively to
Rs. 71 crores this quarter, with an increase 15.4% versus the same quarter last year and 20.6%
on sequential basis. As shared on our last call, we took measures to improve realizations in
June of this year. This shielded us from the impact of higher raw material cost, especially on
the packaging front. Our gross margins are higher than last year and the same as last quarter.
With an enhanced A&P spend (Advertising and Promotions); both on Crax and on the
Krunchoids launch, operating margins were impacted. EBITDA with the quarter was 6.5
crores, a growth of 7.7% versus Q2 FY13. This was lower than sales growth, and margins have
thus decreased by over 200 basis points versus Q1 of FY14 and 65 basis points versus Q2 of
FY 13. The dip compared to last quarter is accentuated by the fact that we do not invest in

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adverting in the June quarter. Finally our tax rate has effectively gone up and hence PAT has
dropped. This is due to the 33 lakh increase in deferred tax liability and a 4 lakh increase in
current tax. Both of these are on account of the same issue, which is an increase in income tax
surcharge from 5 10%.
In summary, I would say that the quarter has been a positive one for us. We have lots to look
forward to both in terms of expanding distribution in the East and the progress of both Natkhat
and Krunchoids. We are as ever concerned with preserving our margins and will need
particularly to protect ourselves from cost pressures on packaging material, which has been
quite bullish for a few months now; but we have an extremely active and dynamic program in
place to ensure that protection takes place. With these opening remarks I would request the
moderator to open the floor for Q&A. Thanks very much.
Moderator

Thank you sir. We will now begin with the question and answer session. The first question is
from the line of Shariq Merchant from Ambit Capital. Please go ahead.

Shariq Merchant

Just couple of questions. One on the revenue growth, if I were to break up the overall revenue
growth into the distribution, expansion and the core market growth, how would the numbers
stack up? I am trying to understand is how the segment is growing actually?

Mohit Satyanand

You mean over the 3 regions, the East, West and the North?

Shariq Merchant

Yes

Rohan Jain

The expansion during the quarter has only taken place primarily in the Eastern zone of the
country. If we are looking at sales against first quarter, there has been a growth of 20.6% and
on an annual basis we are overall growing at about 16%. Of the 16%, approximately 13% is on
account of the Western and Northern zone of the country. East has grown much more rapidly
but because it is still a small share of the total sales, currently in Q2 it constitutes around little
over 7% of total sales revenue. So therefore, the impact of the East zone growing at a much
faster rate on the total growth rate is still small.

Shariq Merchant

It would be fair to say that around 10% of overall revenue growth will be distribution led and
the balance would be market growth cum market share changes?

Rohan Jain

No, 10% would not be on account of the expansion or distribution. As I said the overall growth
number in the East zone is much higher in terms of growth but in overall contribution East zone
is the only zone that has expanded in terms of distribution. As Mr. Satyanand pointed out in his
earlier remarks, in the West zone, we have consolidated our position. In the North zone, there is
very little expansion that has taken place; we have opened a few small towns. Basically, if you
look at 16% growth or if you look at against Q1 20% growth, its only 5% growth has taken
place on account of East zone coming in.

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Mohit Satyanand

Also Shariq, if you look at our coverage, our coverage has increased on a national basis. The
number of retail outlets has grown by 5% in this quarter.

Shariq Merchant

And this would grow by how much more, going forward from FY14 FY15 perspective?

Mohit Satyanand

This would grow by potentially another 10%.

Shariq Merchant

Over the next year and a half?

Rohan Jain

By the end of this year, FY14

Shariq Merchant

Secondly, any update on the loans and advances?

Mohit Satyanand

You mean the ICD?

Shariq Merchant

Yes

Mohit Satyanand

That figure now stands at Rs. 31 crore.

Shariq Merchant

And this was earlier?

Mohit Satyanand

If you look at the last balance sheet end of the FY13, it was Rs. 21 crore and at the last quarter,
it was Rs. 24 crore.

Shariq Merchant

And do you see this rising further over the next?

Mohit Satyanand

No, we dont see it rising any further.

Moderator

The next question is from the line of Kunal Bhatia from Dalal and Broacha.

Kunal Bhatia

Just a continuation, on the previous question, we were talking about distribution network, could
you please specify currently how many retail outlets are we covering?

Mohit Satyanand

We are currently covering 206,500 outlets. Thats a growth of about 10,000 compared to the
last quarter. As Rohan mentioned, this last quarter in fact we continued and we have now
concluded our consolidation in the West zone, which is a normal process when you go into a
new zone, so the total number of outlets was actually shrunk by about 3000. In North India, the
growth has been very marginal; we have grown only by about 2000 outlets as we have covered
few small towns. The growth has entirely been in the East zone where we have gone from just
under 17,000 to over 27,000 outlets.

Kunal Bhatia

And as you mentioned that East now contributes about 7% of the overall revenues. How about
the same in regards to the West and the North zone?

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Rohan Jain

West is over 9%, so the balance 83% odd is contributed by the North.

Kunal Bhatia

This time our margins were impacted due to launches. So what was the advertisement and sales
promotion cost as a percentage to sales this year vis--vis last year?

Rohan Jain

In the current year we spent about Rs. 2 crore in media on TV advertising. We can get back to
you on the number of last year, but its a little bit higher than last year. It is Rs. 2 crore that we
have spent in the current year, all of which has been spent in the current quarter. Majority of
this Rs. 2 crore of expense is on account of Rings, but there is some portion of the advertising
that has taken place on the new product Krunchoids. Part of that advertising campaign has been
booked in the last quarter and the balance will be booked in the current quarter as the
advertising started sometime towards the last week of September and is going to continue till
the 31st of October.

Kunal Bhatia

And price point wise if we look at your portfolio on the Rs.5 pack, would be what percentage
of the portfolio?

Rohan Jain

If you look at Crax, Crax is 95% of the Rs.5 pack. The Rs.10 pack is only 5%. And then we
have Natkhat of course which is entirely an Rs.2 product. And that is already 5% of total
revenue.

Moderator

The next question is from the line of Rajesh S, an individual investor. Please go ahead.

Rajesh S

Just wanted to check in spite of expanding in to new geographical areas and introduction of
new product, the growth is around 16% only. Now you have mentioned in you introduction call
that there has been a tapering of the demand.

Mohit Satyanand

Its not tapering, I said slowing of growth and we are seeing that across FMCG, 21%
sequentially, 16% over 1 year, is not tapering. What we are seeing really is that we are not
seeing the same dynamic growth that we saw couple of years ago. As Rohan mentioned, the
growth in distribution in this quarter has been pretty small in terms of absolute numbers.
Distribution has only gone from 196 to 206,000 outlets. So if you look at the raw number of
outlets, the increase is only 5%. Because the push into the East zone over the last quarter has
only been in Kolkata and a few other towns in West Bengal, the substantive distribution into
the rest of East (which was held up because of many procedural issues) is now beginning.
Which is why we see another 10% expansion in our retail coverage over the rest of this
financial year and I think at that point in time, if we still dont see that kind of growth in
volume, then it will be a moot question to ask. At this point in time, since the growth in retail
outlets have been quite limited I think this 16% growth year on year is quite healthy.

Rajesh S

So are you saying that now we have distribution in our outlets 206,000 outlets, may be by year
end we will be touching 230,000?

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Mohit Satyanand
Rajesh S

Certainly 225,000
We have been concentrating more in Eastern region, consolidating in the West. As mentioned
by you consolidation is over in West, is it fair to say that no more outlets or distributors would
be closed in the West?

Mohit Satyanand

We dont see that need. This consolidation is not something you do every month or every
quarter. Its an exercise you do at the end of a long period of review. I think this is the kind of
exercise you do once in a year. So any exigency apart, we dont see that happening suddenly
tomorrow, announcing that we drop another 10 or 15000 outlets in the West. There are no signs
of that and there is no intention at this point in time.

Rajesh S

What are the latest plans on entering Southern India?

Mohit Satyanand

There is no latest plan; our focus over the next 6 8 months is going to be entirely in the
Eastern zone which is a huge territory. We are receiving exceedingly good traction, both for
our existing products as well as our new launch. It would be very prudent for us to continue
that drive and postpone any thought of entering the South till we feel we have done justice to
Eastern India.

Rajesh S

So is it fair to say it may happen only next year?

Mohit Satyanand

Yes its absolutely fair to say that.

Rajesh S

What is the current capacity utilization?

Mohit Satyanand

80% as far as the extruded snack is concerned.

Rajesh S

That would be if you compare both the clients together, is it 80%?

Mohit Satyanand

Yes

Rajesh S

Another question is about Northern market, you have mentioned in the earlier call that you
have fairly covered in the Northern region and have around 2 3% of market share. So is there
any opportunity to increase it further?

Rohan Jain

There are always opportunities to increase market share. The market share of 2 3% is the
market share of the total salted snack food market, which includes your bridge snacks, your
potato chips, you traditional Indian Namkeens, as well as your extruded snacks. If we look at
the share of rings, Crax corn rings, which is an extruded snack purely as a percentage of the
extruded snack food market in the North zone, that would be in the region of 10%; if you look
at the percentage of the extruded plus the bridge snacks, which is a pretty much a direct
competition, such as Kurkure, it will be in the region of 5 6%. Now clearly one of the key

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tasks that lie ahead for us is to grow our business, and part of that growth is naturally going to
come from increased market share. As what we have done in over the last few years and we
will continue to do that in the future quarters.
Rajesh S

Natkhat has always been receiving not much focus in the earlier year due to capacity constraint
and other reasons, now that we have good capacity for the last 2 years or so, first question is
how is the product received in the market? What are the plans for this product and when are
you planning to launch it in the new markets like West and East?

Rohan Jain

Our focus has been back on Natkhat not just for the last 6 months but actually since January
2012, after we commissioned our greater Noida manufacturing facility in November 2011. A
couple of months after that, we decided to bring back the focus on Natkhat, with the capacity
becoming available at that time. The product has been received extremely well in the market.
Its at a price point of Rs.2, and not many branded players that operate in that space at Rs.2
price point. If you look at the growth rate that we have recorded in Natkhat in the current year
vis--vis last year, where also full supplies were made available, we are looking at a 34%
increase in Natkhat sales which is higher than some of our other products, which seems to
suggest that there is potential in this category. As far as the plans of Natkhat, given now that we
have capacity - as you rightly mentioned - we would be focusing on this product. We will look
at pushing sales of Natkhat through trade schemes, ongoing trade schemes; we are also looking
at potentially considering and working on possibilities of adding additional flavors. It has posed
a challenge because it is at a Rs.2 price point and cost considerations have to be kept in mind.
We will always look to push Natkhat into many of the small towns that we have opened up in
the last 1 year or year and a half. We have opened up a significant number of small towns; we
term them as supply towns, which basically consist of populations less than 1lakh. Natkhat
would be a great fit for those markets as they are small and lower income towns where Rs.2
product would have a lot of traction, we would look to push Natkhat in the North zone in those
towns. These are some of the growth areas. As far as your question regarding the extension of
Natkhat to other zones, given that it is currently available in the Rs.2 price point and the
margins are not as high as in some of our other product categories, given the higher freight cost
of the Western and Eastern zone that we are incurring by servicing those zones from the facility
in the North. In the current context we are not looking expansion of Natkhat in the Rs.2 price
point in the other zones. We may have to consider the launch of Natkhat in a higher price point,
and if that works, that is something which can be considered for extension into the other zones.

Rajesh S

Since you are giving 12 grams for a packet of Rs.2, in Northern regions atleast, are we making
money out of this product?

Rohan Jain

Yes. We clearly would not be selling this product, if we felt it was not viable. It was about 3 4
years ago where we used to sell Natkhat in 1 rupee pack, also in the Rs.2, but the Rs.1 pack of
Natkhat was the majority contributor of Natkhat sales. And given the inflation and cost, we
realized that it was becoming unviable to sort of sell in the Re.1 price point and it was
discontinued. And ever since then, we have focusing on Rs.2 price point and clearly we make

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money. The margins are not as high as they are on rings. But they are adequate to give us
returns of investment that we need even if we have to expand capacity.
Rajesh S

So as of now you would be concentrating in the Northern region, in the cities where population
is less than 1lakh.

Rohan Jain

Over and above also the other markets, but that would be a growth avenue. Currently we are
perhaps not selling as much.

Rajesh S

And plus you would have some more trade schemes as well as adding additional flavors.

Rohan Jain

Trade scheme is an ongoing feature. We have given only 1 trade scheme in the current year.
We will look to give more in the balance half of the year. And absolutely we will look at
developing new flavors; as I said it is a challenge. But in case we are able to, that would
definitely help us sales growth.

Rajesh S

So is it fair to say that for the company the future focus would be Natkhat, because Crax we
have launched few new flavors during last year. So is our focus for our coming quarters or the
years would be Natkhat?

Rohan Jain

In terms of flavor development, possibly, but in terms of overall sales, clearly Crax corn rings
today makes up 76% of our turnover and one has to always focus on Crax corn rings because
that clearly is a major seller as far as our business is concerned. Product development in terms
of new flavor additions, yes, in the near future we dont foresee the launch of any additional
flavors in the Crax corn rings while we maybe considering some in Natkhat.

Moderator

The next question is from the line of Manish Jain from Axis Holding.

Manish Jain

Can you give some insight on the progress made in Lucknow and Ludhiana? And second is the
macro question, the kind of product and the kind of market share that you have in North,
wouldnt it be preferable do a little bit of intensive marketing rather than go extensive in to
West and East.

Mohit Satyanand

What is about Lucknow and Ludhiana?

Manish Jain

They are essentially, our understanding was that your per capita sales tend to be far superior to
other markets.

Mohit Satyanand

We havent lost any of our strengths in our good markets. Thats certainly very reassuring. As
far as going in depth into existing markets versus going into new markets, there is actually no
trade-off, because as far as our existing Northern markets are concerned, we do feel that we
have done a fair amount as far as distribution is concerned, but when it comes to media
advertising, all the money that is going into media advertising is going into national channels.

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And therefore the products theme advertising is being carried nationally, whether it is Kolkata
or Jamshedpur or its in Hubli, and therefore it doesnt make sense for us to let that money go
waste and not to make the product available. So its not an either/or situation; we have to do
both.
Moderator

We have a follow on question from the line of Kunal Bhatia from Dalal & Broacha.

Kunal Bhatia

Wanted to know in regards, currently we had debt to equity of 1.45. Any plans on reducing the
same?

Mohit Satyanand

Thats an ongoing exercise. There is a debt repayment which is around 2.68 crore per quarter.
So its automatically coming down. It will keep coming down every quarter.

Moderator

The next question is from the line of Jatin Khemani from Aadhar Securities.

Jatin Khemani

We are already running at 80% capacity utilization. So what is the capacity addition plan for
current year and next year and also if you could give CAPEX guidance?

Mohit Satyanand

This is a question which keeps coming up, and its a very relevant question for a company
which has been growing so dynamically for 5 years now. We had indicated that we see at least
3 opportunities for CAPEX. One would be to add to our capacity in our existing site in Greater
Noida where we already catered for the opportunity, it should happen at minimal cost and very
minimal time horizon. Second is to follow through on the markets where we are already
operating, namely the West and the East. And third is of course the question which everybody
asks, What the plan for the South?. Its very clear we cant expand in the South based on
production in the North. We would need to have a site there. Its a moving target. Its a picture
with a lot of moving parts in it. And internally the decision that we have taken is that at the end
of the calendar year (end of this quarter), we will create a very clear road map in terms of
where the next expansion is going to happen and what the CAPEX is going to be and I
repeatedly made the commitment to the investor community that they will hear about this on
the con call, the con call immediately after we have decided what is it going to be.

Jatin Khemani

If we were to increase capacity in our existing plant only in Greater Noida, what would that
number be, if you could share?

Mohit Satyanand

Most likely it would be that we increase capacity by about 5000 tonnes taking our exceeding
capacity from 15000 20000. And that would cost in the ballpark of Rs.18 20 crores.

Jatin Khemani

You also mentioned 76% of our top line comes from corn rings and 5% from Natkhat. So
remaining I believe is Namkeen?

Rohan Jain

For the current quarter we also had a 5% contribution from Krunchoids as it was launched and
the balance was Namkeens.

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Jatin Khemani

How is Namkeen doing? Is that a focus area?

Rohan Jain

We have 4 product categories as you are now aware. All of them are focus areas. Namkeen is
also been growing as a business. This year demand has been a little sluggish but we still
recorded about 7 8% growth in the Namkeen business over last year.

Moderator

We have a follow on question from the line of Rajesh S, the individual investor.

Rajesh S

Now that you are concentrating on Natkhat, do you see the potential similar to Crax?

Rohan Jain

It is difficult to comment on what the potential can be. But Crax is clearly on money terms,
probably 20 times the sales of Natkhat. So at this point to say the potential would be similar to
Rings is probably a difficult statement to make. But yes, there is potential for growth, and we
will continuously look to capitalize on that potential.

Mohit Satyanand

I think there is another point here Rajesh, to some extent potential is also the extent to which
you create that potential and we must remember that current sales of Crax are based on several
years of continued media support. So I think the fundamental question before us is the extent to
which we support Natkhat with other kind of A&P inputs that Crax has had. That is something
which we will actively examine in the coming quarters. So yes, we are convinced with that
potential and we will do what we can to exploit that potential.

Rajesh S

Regarding your new product Krunchoids, do we have any competitor for this product in the
market?

Mohit Satyanand

Well competition is there - these are not hard and fast categories. It depends entirely on how
you define it. I would say that competitors for Crax could be anything from Natkhat to Bhujia
to Lays and its a definitional issue - what you define as your competition. There is no identical
product. We have not created Krunchoids to say Oh somebody is successful, lets launch me
too. So in that sense there is no obvious competitor. But, at the end of the day, you are
competing for the Rs.5 10 that is in a child pocket when he goes to a shop and says Ah I
know about this product, it looks nice. I will buy it. So, yes, we are in a competitive scenario.

Rajesh S

You had mentioned in the earlier con calls that instead of launching a new product, it makes
sense to expand your distribution particularly Crax in the other regions of the country. But there
was some change wherein now you have launched a new product where you are still to expand
in Eastern and enter in South. So what made these to change the policy?

Mohit Satyanand

Well I think it is a hallmark of a good and well run business that you can change your strategy
based on the market reality, and the fact is we did have this large investment in a new plant and
given the softening macro economic environment of the last year and a half or two, we have
seen the companies which didnt make strong dynamic steps in terms of product innovation,
saw their sales stagnating. We wouldnt like to push ahead with the expanded distribution just

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because we need to; it must be done on a strong footing - you have to make sure your
distributors are the right people; the sales folks you hire are the right people. So attacking and
becoming too aggressive would be very bad from on organizational point of view. And it
makes much more sense to say that we do have identified product opportunities which we
thought that we could probably put in little bit later, and press the accelerator on those. Because
we think its great for an organization to be able to set a target and put a relevant product out
there within that finite target, and I think it has been a great exercise for us to be able to do this
within the time target and we have done it very well.
Rohan Jain

The only thing I would like to add to Mr. Satyanands point here is that, if there were to be a
trade-off - if there were limitations on capacity being available, and there came a choice where
we had to either choose between extension of an existing product in other markets versus
launch of new product then, yes, we would have given preference to launching of an existing
successful product into other markets. But given that capacity is available, in the current
context there is actually no trade-off. So, we are continuing to expand distribution wherever
opportunities are available, while at the same time having launched a new product.

Rajesh S

Just for information do we have any other product which can be launched if required other than
whatever you have done till now?

Mohit Satyanand

What we decided as an organization a couple of years ago was that we must have a pipeline of
products to introduce. So we are extremely enthused by the ability that we now have in this
regard and this should not be a constraint going forward.

Rajesh S

Do we have anything to learn, lets say in a year or so in our pipeline? Its a very fluid
situation, depends on lot of factors. But if the company wants to launch a new product, can we
say it can do it within a period of one year.

Mohit Satyanand

Yes, Absolutely.

Moderator

We have a follow on question from the line of Jatin Khemani from the line of Adhar Securities.

Jatin Khemani

On Krunchoids, do we have similar gross margin profile as that of Corn rings?

Rohan Jain

It is slightly better than that of Corn rings in terms of gross margins.

Moderator

We have a follow on question from the line of Mr. Rajesh S.

Rajesh S

I just missed one or two book keeping questions, one is company has lost around Rs.1.33crores
on foreign transaction during last year. Could you give an idea on what is this for?

Rohan Jain

We have loans that we have taken for the financing of the greater Noida facility. Part of the
loan was taken in foreign currency, but we have actually hedged for that by taking a forward

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cover. That is only a mark-to-market issue; in terms of the actual net cost to us, we are hedged
on the foreign exchange rate because we have taken a forward cover before the repayment of
the loan.
Rajesh S

So it is basically a notional loss?

Rohan Jain

Yes

Rajesh S

Second thing, whatever the increase in the income tax that would be effective from first of
April this year 13?

Rohan Jain

Yes.

Rajesh S

And it would be there for rest of the quarters also?

Rohan Jain

Yes, it will be there for balance of the quarters but the deferred tax, Rs.33 lakh increment that
has come in, thats a onetime upward change in the deferred tax liability. So while there has
been a Rs. 4 lakh provision incrementally, on account of change of surcharge, the Rs. 33 lakh
expense is a one time change on the deferred tax liability amount that is being carried forward.
So our deferred tax liability has been increased to the tune of Rs.33 lakh which has been
booked as a tax expense during the current quarter. Going forward, the tax would be
provisioned at higher rate but the impact will not be Rs.33 lakh because thats a one-time
adjustment on all the deferred tax liability that has already taken place up till date.

Rajesh S

What would be the net tax rate?

Rohan Jain

The surcharge has gone up from 5% to 10% for all companies that have a profit of over Rs.10
crore; there is a cess as well. So if there is 30% as a tax rate, then there is another 5% surcharge
on the 30% which was there earlier also, that would be 31.5%. Now given that the surcharge is
10%, it will be another 1.5% of the tax rate of 30% which would be from 31.5% to 33%. Of
course there is a cess component, which is education cess which is there additionally.

Rajesh S

Okay if you put it together what will be the net, will it be 33.33%?

Mohit Satyanand

33.6%

Rajesh S

Last question is the stock is under PC auctioning system. I know Mr. Mohit Satyanand has
mentioned during earlier con call that management would not be taking any action. Just from
the shareholders and the investors point of view, it has always been relatively very difficult to
buy and sell.

Mohit Satyanand

As far as the management is concerned; this is not something where management can do
anything about. This is a slight misunderstanding. The decision to put well over 2000 shares on

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the call auction mechanism was taken by the regulators, and they have very well defined
standards for doing that. It has severely affected the liquidity of, as I said, over 2000
companies; this is not something which on an individual basis any company can do anything
about. I think it affects small investors and promoters of the companies which are not heavily
traded equally - and its something which has to be done on a collective basis. Management or
promoters of DFM Foods simply would not be able to achieve anything in this regard. I think it
is a very retrograde step for the markets in general and for the ability for smaller promoters and
new businesses to raise capital. But these are decisions taken at a much higher level which we
cannot influence in any significant way.
Rajesh S

You had mentioned earlier also that management would not be interested or will not take any
actions, you had mentioned very clearly.

Mohit Satyanand

Interest and being able to are 2 very different things. I never said we are not interested.

Rajesh S

Last question, Kurkure has come out with this Popcorn and Monster paws, are they in direct
competition to Crax?

Mohit Satyanand

Yes they are.

Rajesh S

So how are they fairing? Any inputs from the field level?

Rohan Jain

They are doing okay. But I wouldnt say they would have impacted our share in any significant
way.

Moderator

As there are no further questions I would like to hand the conference over to the management
for closing comments.

Mohit Satyanand

Thank you all for listening in and above all, with the Diwali weekend coming up have a Happy
and Prosperous Diwali and a great financial year ahead.

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