Video Conference of Emami Ltd’s 39th Annual General Meeting 2022

Dear members, good morning. Welcome to the 39th AGM of Emami Limited. This annual general meeting is being held through video conferencing or other audio visual means. For the smooth conduct of the meeting, members will be kept on mute mode. With regard to the members who have pre-registered as speaker shareholders to speak at the AGM, the audio and video will be enabled when the question answer session begins on the instruction of the chairman. Speaker shareholders are requested to speak as per the sequence that is set for and keep their speech limited to three minutes and cooperate. If any speaker cannot be reached due to any connectivity issues, we will call him or her again at the end of the question answer session. Thank you. Now I will hand over the stage to Sri R. Goenka, Chairman of the company. Over to you, sir.

Good morning. I am Harsh Vardhan Agarwal, Vice Chairman and Managing Director of the company. I am attending the AGM along with Mr. R.S. Agarwal, the Chairman and Editor of the company, through our residence. Thank you.

I'm attending this meeting from Europe and I am the Director and Chairman of this Stakeholders Committee. Thank you all of you.

Good morning. Deborah Brutus, Independent Director on the board of the company. I am attending this annual meeting from Mumbai through VC. Thank you.

Director of the company and I'm attending the meeting through VC from Calcutta location.

Good morning all the shareholders. I am Independent Director of the company and also the Chairman of the Audit Committee and the Nomination and Remuneration Committee of the company. I'm attending this AGM on VC from Mumbai.

Attending this AGM through VC from my office in Mumbai. I am Independent Director of the company. Thank you.

Morning ladies and gentlemen. My name is Anjan Chatterjee and I am attending the 39th AGM of Emami Limited through VC from Mumbai.

Good morning. My name is Avni Vishal Davda and I'm an Independent Director of Emami. It's an honor to serve on the board. I'm attending this AGM from Mumbai via VC. Thank you.

Good morning. I'm Rajiv Ketan. I'm also an Independent Director and Chairman of the Corporate Governance Committee of the company. I am attending the AGM from my home at Bangalore on VC.

Good morning. I am S.K. Goenka, full-time Director and Chairman of the CSR Committee of the company. I am attending the AGM from Calcutta through VC.

Morning everyone. I am Mohan Goenka, Vice Chairman and Whole Time Director of the company, and also Chairman of the Share Transfer Committee of the company. I am attending the AGM from Calcutta through VC. Thank you.

Non-Executive Director of the company and I am attending the AGM from Emami Towers, Calcutta through VC. Thank you.

Good morning ladies and gentlemen. I'm Priti Sureka. I'm an Executive Director of the company. I'm attending the AGM through VC from Kolkata.

Good morning everyone. I am Prashant Goenka, Whole Time Director of the company and I am attending this meeting from Cairo through VC. Thank you.

Thank you, sir. Members may please note that there will be no voting by show of hands as this meeting is being conducted virtually. The remote voting had commenced from 9:00 AM on Monday, 5th September 2022 and closed at 5 PM on Thursday, 8th September 2022. The company had provided the facility to cast the vote electronically on all the resolutions set forth in the notice. Members who have not cast their vote yet electronically and who are participating in this meeting will have an opportunity to cast the vote during the meeting through e-voting system provided by CDSL. Members can click on the vote tab on the video conference screen to avail these features. Now I am reading out the subject matter of resolutions proposed to be transacted at this meeting. Resolution number one: Adoption of audited financial statement of company for financial year ended on March 31, 2022 together with the report of board of directors and auditors thereon and the consolidated audited financial statement of company for financial year ended March 31, 2022. Resolution number two: Confirmation of payment of two interim dividends aggregating to rupees eight per equity share for financial year 2021-22. Resolution number three: To appoint a director in place of Srimati Priti Sureka who retires by rotation and being eligible offers herself for reappointment. Resolution number four: To appoint a director in place of Sri Prashant Goenka who retires by rotation and being eligible offers himself for reappointment. Resolution number five: To appoint a director in place of Sri Mohan Goenka who retires by rotation and being eligible offers himself for reappointment. Resolution number six: Reappointment of M/s S.R. Batliboi & Company LLP, Chartered Accountants as statutory auditors of the company and to fix their remuneration. Resolution number seven: Appointment of Sri Ananda Nandi Kishorati as an independent director of company not liable to retire by rotation and to hold office for a term of five years from 2nd August 2022 to 1st August 2027. Resolution number eight: Appointment of Sri Anjani Kumar Agrawal as an independent director of company not liable to retire by rotation and to hold office for term of five years from 2nd August 2022 to 1st August 2027. Resolution number nine: Appointment of Sri Anjan Salmah Chatterjee as an independent director of company not liable to retire by rotation and to hold office for a term of two years from 2nd August 2022 to 1st August 2024. Resolution number ten: Appointment of Srimati Avni Vishal Davda as an independent director of company not liable to retire by rotation and to hold office for term of two years from 2nd August 2022 to 1st August 2024. Resolution number eleven: Appointment of Sri Rajiv Ketan as an independent director of company not liable to retire by rotation and to hold office for a term of two years from 2nd August 2022 to 1st August 2024. Resolution number twelve: For ratification of payment of remuneration payable to M/s VKG and Company, Cost Auditors of the company for sum of rupees 1,65,000 excluding taxes and out of pocket expenses for conducting audit of cost accounting record for the financial year 2022-23. Resolution number thirteen: Approval of payment of commission under Section 197 of Companies Act 2013 up to one percent of profit of company for each year to the non-executive directors including independent directors for a period of five years commencing from April 1, 2023. As the voting on these businesses have already begun, there is no requirement to proposing and seconding the resolution. The objective of special business of resolution number six to thirteen are explained in the explanatory statement to the notice. I now request the Chairman to continue with the proceedings of the meeting.

Thank you, sir. Ladies and gentlemen, we will now begin the question and answer session. We would like to invite our first speaker member, Mr. Rajesh. Request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question.

Respected Chairman sir, board of directors, dignitaries on the dais, my fellow shareholders, a very good morning to all of you. Myself Rajesh Pradhav, my profession company secretary, ACS and a shareholder of the company. I have joined this via VC from my Kolkata office. Firstly, I would like to congratulate Chairman sir for getting prestigious award from the honorable Chief Minister of West Bengal. I would also like to...

Congratulate you, so project and team for bringing out very colorful, transparent, informative annual report, and being very accessible and supporting the shareholders. I also want to congratulate entire management and excellent for the excellent result in a strong financial presentations. Sir, respecting to the time frame allotted and straight forward coming to my observations and queries. So what are the compliance followed by the company under the plastic waste management law? Sir, during buyback, approx 200 crores outflow was done cash out, during dividend approx 355 crores, and during acquisition 432 crores out cash out. Lower than the approx thousand crore cash out has been done, still no significant debt 30 years. Congratulations. Sir, kindly update on the present cash reserves of the company. Sir, as mentioned by you in the welcome speech, the Nicole Derby pool has been purchased. So so what is the and this is being contributing to eight percent close? What is not? Company available. So I am very happy to say that CSR activities are going on very nicely. CSR centers set up are very helpful for the needy people, especially the medical services being provided to the diabetic presence. Sir, lastly my question: the bonus issues by the bonus companies issued the bonus shares in the ratio of one is to two in 2013 and the ratio of one is to one in 2018. So I'm expecting the management will surely consider the bonus in 2023 also. Thank you very much sir.

Thank you. Thank you we now invite our next speaker member Mr. Ashit Kumar Pathak. You requested to please accept the prompt on your screen and turn on your audio and video and proceed with your question.

hello hello

we can hear you

Yes yes. Very good known respected chairman, vice chairman, board of directors, company secretary, fellow members joining at 39th AGM of Emami Limited. My name is Ashit Kumar Pathak joining from Kolkata. My esteemed gratitude to our company secretary and legal, Mr. A.K. Joshi, for sending me the hard copy of annual report very well in advance and allow me to speak. Also my esteemed gratitude to my company's secretarial department for their enhanced cooperation to me, mostly Mr. Ashokuro and others. The excellent representation from our respected chairman, I have noted all the valid points and most welcome our next new second generation team in our management team. I pray to God for everybody good health and the retired directors also. So the financial performance very nice. EPS has gone 18.88 and adjusted that 854.41 crore visible in the balance sheet, and rewarding with good dividend rupees 8 per share and share buyback. Sir, my view is that any impact in our debt cost by hike of interest rate? If possible through some highlights: debt equity ratio increase 0.15. And sir, we spend 200 crores buyback, so what about working capital for this? If possible through some highlights. And for cost optimization, what step my company is taking? Advertisement and loss of impairment of investment in page it mentioned. And also sir, commission is very higher than previous year, and it mentioned expense were high as the company spent on the pushing new launches as well as crore. If possible through some highlights. And sudden increase of prices of raw materials, any impact in our operations? Because in first quarter, our net profit down seven percent. Seven percent! If possible through some highlights. Sorry, in the media report, my company 90 percent stake acquisition in True Nature F&B Private Limited, D2C, but not consideration mentioned. And if possible, some highlight the future perspectives in this D2C nutrition business and this investment also internal equals if possible through some highlights. Answer it mentioned. My company is continuation core business strategies, but another by company open to growth through inorganic route. But I have noticed in Centrum report, amortization in financial year 23 would be 0.8 billion. After quarter 2, K-Skin will be amortized, and post amortization will include Dermacol and some other brands. If possible through some highlights about this. And sir, sir, international business also grew 4.5 percent, but some impact in Sri Lanka, Russia, Uzbekistan is difficult position. If possible for some highlights our international business perspectives at present situation. And what steps taken? Because pain management is declined, proper sales also flat, and healthcare range declined, but also Navratna sales grew up by 29 percent, SK is 20 percent. If possible for some highlights. What steps my company has taken for this core business? And India is at present fifth largest economy, projected GDP growth 8.5 percent, and various initiatives taken. Our respected chairman also mentioned e-commerce channel, model trade growth, and 8,000 rural towns being added in project coach. Various anything. My view is that because India is a very dense population country and with rising economies, so business prospect is in domestic market is more better than international business. This is my view which I like to share. Nothing to say more. I pray to God everybody good health and mind. Thanking you sir.

Thank you. We will now invite our next speaker member Mr. Tarak Chakrabarti. Request you to please accept the prompt on your screen, turn on your audio and webcam, and proceed with your question. Could you please unmute your audio and video and proceed with your question? We've allowed you to speak. It looks like Mr. Chakraborty is unable to speak in the meanwhile. We will move to our next speaker member that would be Mr. Gautam Nandi. Mr. Nandi, request you to please unmute your accept the prompt and unmute your audio and video and proceed with your question, please. Please unmute your microphone and proceed with your question.

hello hello am i audible

yes we can hear you

Thank you, start, yes. Good noon and namaste. Respected chairman, board of directors, and my online fellow shareholders. Myself Gautam Nandi, residence at Kakura, speaking. Very old equity shareholder of your company. So firstly I'd like to give thanks to your secretary of department for sending me annual report and other necessary deliverance papers through email well in advance, and also thanks for connecting me in this PC platform in a very smooth manner. So specially thanks to our respected company secretary Mr. A.K. Joshi, very sober, well, and most dynamic person, and his whole team including Mr. Ashwith, for rendering very good services to our minority service. Thank you sir. Sir, you are organizing your annual general meeting through video conference for the third time, which is a grand success like the previous years, so thanks again. Sir, your annual report is very attractive and also very informative, which is self-explanatory. Sir, in this context I like to suggest: please issue hard copy of annual report at least to the speaker's shareholders, and also mention the speaker's serial number with your link, though you have provided in this year. Sir, we are passing through a very tough and pandemic situation, COVID-19, Russia-Ukraine war, etc. Every company is suffering very much, but I find in this challenging year our company's performance is excellent, and you are also giving very good dividend to our minority shareholders. Sir, so thanks for your very nice dividend in this tough market scenario. Sir, I like to ask: what is your roadmap for the next three to four years? Sir, your CSR activities are remarkable, so please keep it up. Sir, what about our bonus share? A few years have elapsed, we got bonus shares from you, so please consider it itself. Sir, are you going to launch any new product in this year? Sir, please tell us. Sir, in this year if situation permits, please arrange factory visit. Sir, we are very proud to be a shareholder of your company, and we are I am already I have casted through my e-voting along with my family in favor of you. I have full trust with our strong foreign... so... and I must give my hearty thanks to each and every employee of your company for their good gesture, good behavior, and good hospitality. So nothing to say more, today time is very precious. Looking forward with a positive outlook towards our company with higher profit margin, handsome dividend, one is to one bonus, and return. May God bless you sir, stay safe, stay healthy. Thank you very much sir. Myself.

Thank you. We now invite our next speaker member Mr. Jaydee Bakshi. Request you to please unmute yourself and proceed with your question. Message ID Bakshi, could you please unmute yourself and quickly? Good no. Am I audible? Yes sir. Secretary Mr. If you can just hold the microphone closer to you and speak because you were sounding a bit feeble to us. Okay now is it audible? It is audible now. You have another connection, please disconnect that if I mean it's causing echo sir. Yes, go ahead with your question. So thank you, okay.

Thank you, okay. Thanks to our company secretary Mr. Jose for giving me an opportunity to express my views and presenting a detailed annual report and also to prove Mr. Puruit for maintaining good investor friendly relations with the shareholders and to the entire secretary team and our registers for conducting this video conference in a smooth manner. Sir, chairman sir, in your initial presentation with the slides which depicted our multi-product presence in every field, so our revenue and also the path has increased in this difficult scenario. So what has been the revenue earned from each sector of ayurvedic and the healthcare? Can we just know the details of it? And thanks once again for the dividend. And also the performance depicts of our organization's upward journey depicted in pages 10 and 11 is well explained. So our presence in global environment and cost inflation is pinching in every sector, so how we foresee ourselves to combat all these things? And what regarding the products manufactured locally in Bangladesh and also with third-party engagement in Germany, Sri Lanka, and UAE? What is the performance of these units? Can we highlight? So our products are sold in 60 plus countries, can we know the regions which we covered? So we have 26 storage reports and seven manufacturing. Regarding the digitalization for trapping for better and smooth logistic movement, can we have some news of this? So we have new brands and domestic business grow. What are the brands which have outperformed the most? Regarding the section of the Indian consumer, we are well and lots of our disposable income and this post-pandemic there is a trend to spend on healthcare and natural products has gained a lot. What are plans to trap this segment? So any new acquisition plans and new product launch? As three percent of the revenue growth in domestic market was due to these recent launches. So for all product availability, can we go for stores under one group where consumers have benefit of physically impact of each of the items? So personally I'm using the many products, to name a few: the Navaratna, the Fair and Handsome, the Zandu Pancharis seven involvers, and they are I'm really satisfied with these products. So any new concept for packaging towards this single-use plastics? So what is the news of other big organizations? There was a news regarding entering the FMCG sector. What is our thought process regarding this? So the inflation is affecting the sachet economy. What are we going for this grammage reduction to maintain the price point for our products? So in page one, the photograph of Sri R.S. Goenka and Sri Goenka ji is really well explained, captioned, and is beautifully projected sir. And also our CSR activities where we are spending education and healthcare has always been good as ever. So nothing to add more. I've supported all the resolutions and so hope sir under your guidance and the next generation directors and able team of professionals and staff, our company will continue its accelerating growth trajectory and remain a part of everyone's every home in the country. Thank you sir for giving this opportunity. Happy festive greetings to everyone sir. Thank you sir.

Thank you. We now invite our next speaker member Mr. Amit Kumar. We request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question. I think, yes sir, we can see you and hear you. Please proceed.

A very good afternoon to all of you. Respected chairman of the meeting, other board members present. I am Amit Kumar Banerjee from city of Kolkata. Thank you for getting me an opportunity to speak such a wonderful meeting today organized by our company, Emami Limited. It is our 39th annual meeting of the company. So I'm a very long-standing shareholder and I have a faith with this company, Emami brand. Yes, I like the product also very much: no oil, cream, lotion, Fair and Lovely cream, Jandu Balm, Chyawanprash, health powder, and salt is very lovely products presented by your management group, Emami. As because the performance is concerned, as visible on the balance sheet and the review, it is very nice, good growth, steady financial presentation. Total revenue achieved 2,990 crores, profit after tax stood with the tune around 851 crores, last year it was only 475 crores, an excellent result. Dividend yes, there is 8 rupees at the rate of face value of rupees 1. Buyback options during this year in the month of March also matched. CSR activities well, very good more than that tax paid for the welfare measures. Sir, as regards the company's performance, I consider planned visit so that we could absorb infrastructure development gradually over there. What is your key challenges for sustainable growth of the company? Risk management issue, vision? Kindly discuss and share your views. Research and development costs to sales for last two years, kindly share your views. About dividend this concern, last year we got rupees 8. During this year the company made profit almost double, so consider interim dividend also. I hope our company will perform much better profitability near future. We label to maintain prestigious brand Emami. I thank also our company secretary Mr. Jose, secretary team member Mr. Balaram, all our cordial, experienced, sincere, level best tried to resolve the issue as and when required. Also to all team members, I specifically thank for conducting today such a beautiful smooth conference meeting. Thank you Mr. Chairman, I am Amit Kumar Banerjee from here. Over to you sir. Thank you, thank you.

Thank you. We now invite our next speaker member Mr. Manoj Gupta. Mr. Gupta, we request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question. Yeah, Mr. Gupta, can you? Yes, please go ahead. Hello, we can hear you and see you. Go ahead.

Good afternoon respected chairman, board of directors, fellow shareholders. My name is Manoj Gupta, I'm a criticism. So first of all, I'd like to thanks to you and your board for the good result of the company for the year 21-22. And I am thanks to the company secretary and his entire team to help us to join this meeting through VC, and also thanks to our CFO Mr. Bansali who always take care of the investors. And thanks for your 800 percent dividend. And sir, what's your future plan for the company for next two to three years? Answer. I thanks to you for a good CSR, but now the CSR system has changed, that there will be audit of CSR and you should keep all the papers of utilization report where you made donation. So take care of this in future. And I want to welcome to our new directors Mr. Anand Rathi, he is a wealth management guru in the country and he runs his own big company. Such type of people are there, so they will help you to take the company on new heights and investors will get profit through his advice in the stock market of Emami. And I also welcome Mr. Agarwal, he has also vast experience of the company. And sir, you should consider to issue the discount coupons up to 30 with a discount of 30 to 35, so that investors can also purchase your products. That issue because from last four years you are not issuing the discount coupon. You should consider to issue the discount coupon. Answer: how you resolve the issues of disputed cases? There is a lot of disputed cases in your balance sheet from long pending disputed cases at various platforms, so how you will resolve? And try to reduce the expenses. And unclaimed dividend before sending this to the central government investor education protection fund, sent a notice to the shareholders that they can collect their dividends because the law has changed. If you will send their dividend, you have to transfer their entire equity to the investor education fund and there will be a lot of problem to get back the share and money from the government, you know very well. So you should also think about for the bonus shares, issue bonus debentures instead of bonus shares. Now the time has changed, just see the Godrej, the Tatas, the Wadias, they are bringing professional people on the board as executive power. So you should also think about in that direction to bring one or two people in the field of your business who are masters and they can be the executive director or whole time director. So you should also try in that regard. Godrej and Daver has given all powers to the professionals. You should also consider. And sir, healthcare products are your very good, and try to expand that because now Prime Minister is our beloved Prime Minister also focusing on Ayurveda and Unani and Homeopathy, so you should also consider to increase and inspire your healthcare product. And sir, you should also think how much amount you have spent to acquire the increase your holding in Brilliant, Alternative, and the main company and for the pet feeding, so how much amount you expect to increase your holding in these four companies? And sir, East Bengal, how much amount you have explained to take over the Eastern Alkala? And what will be the impact on our company directly or indirectly from this single huge plastic bank? And sir, just see the Dauar Tower one rupees share, cross once 600, and our six year back, seven years back our share was also near to 800. I will not ask you to issue the bonus, bonus issue will increase the equity and burden the equity burden. Instead of bonus equity, you issue the bonus debentures. Now the several companies are issuing the bonus debenture at a rate of eight percent, nine percent for three years. After the three years they can redeem that bonus debenture like Britannia has issued three times, Hindustan Unilever has issued, Doctor Reddy's has issued. This is a new concept in the country but you can think about. Instead of bonus shares, issue the bonus debenture that will be like as a bonus and see the shareholders what you can do, the shareholders how they can get return. And I have a great respect and regards to you, your family says.

Thank you. We will now invite our next speaker member that is Mr. Santosh Kumar Saraf. Mr. Saraf, request you to please accept the prompt on your screen, unmute your audio and video and go ahead with your question. Yes sir, we can see you.

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Thank you. We will now invite our next speaker member that is Miss Lily Pradhan. Mr. Pradhan, request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question. Yes, Pradhan, could you please unmute your microphone and your webcam? Yeah, your mic needs to be unmuted ma'am from your screen. Yes, we can hear you now.

Very good afternoon respected all cheer persons and all viewers. I am very happy to know that the company's performance is developing a lot in our days after COVID-19 pandemic situation. I have some specific question in present situation. What is the aim and object of the future development in all of our country? And what is the byproduct plan? What is planning for CSR activities on challenging persons? What is the vision and mission? Thank you, thank you so much. All the best. Thank you.

Thank you. We will now invite our next speaker member that is Mr. Kaushik Sahukar. Mr. Sahukar, you're requested to please accept the prompt on your screen and mute your audio and video and proceed with your question. Inaudible? Your audible sir, you can also turn on your webcam. Thank you. Yeah.

Yeah, good afternoon everyone. First off, I would like to thank the board of directors for giving me an opportunity to speak in this forum. Many of you would remember me from the conversational past, so I will keep both my ask and introduction brief. I hope I'm clearly audible. So you're audible, thank you. Myself, a qualified chartered accountant from Mumbai. I have been suffering from dystonia which has rendered 55 percent of the body paralysed, impacting my right hand, my right leg, and the speech. While I have not let that come in my way of becoming a chartered accountant and practicing, I do request support and helping me to continue to self-client. I hope I'm clearly audible now. Thank you, thank you sir. I was optimistic after the conversation we had last year about me working for our organization on certification work including Form 15CB. However, nothing has progressed. While I understand things have not progressed due to pandemic situation last year, I do request your support in helping me. I do hope that after my conversation today, our organization would start engaging me in seriousness possible. So here I would like to acknowledge the effort taken by Mr. A.K. Joshi in providing us the link to join AGM. Thank you Mr. A.K. Joshi. So I also once again I thank you for the opportunity to speak today and hope to see a positive movement for the ask. I support all the resolutions. I would appreciate it if company can support with at least some small activities to help me to control myself through self-lying. So I'm also aware that this doesn't form to speak all this thing, but how else can I? Please throw some light. Emami is well known for its CSR activities. You have transformed the life of various persons. I require similar support from Emami so I need to be self-independent and self-reliant. Also, how is the company fulfilled our premium stream of partner? Secondly sir, is there an impact of the complete channel plus one policy? Finally, I believe company has strong enough brand including O2C products and I also believe it does not require any further advertisement. Instead, company can distribute samples among shareholders, it will serve both the needs. So company should consider this option as alternative to advertisement which is more effective and beneficial. So I also welcome all the directors including Mr. Anand Rathi, whom I am a great admirer and I also follow him in building my portfolio. I am sure the company will immensely benefit from the inclusion of all the new directors and more particularly to the experience of Mr. Anand Rathi. Thank you, thank you so much.

Thank you. We will now invite our next speaker member that is Mr. Manas Banerjee. Mr. Banerjee, we request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question. Yeah, could you please unmute your audio and video? We've given you the permission to unmute. You will get a prompt on your screen, could you please accept it to unmute your microphone and your webcam? Yeah, could you say something Mr. Banerjee? We can we it looks like your microphone is unmuted.

Yes sir, it is. Good afternoon everybody. Respected chairman, present board of directors, and my fellow online shareholders. Myself Manas Banerjee, attending the AGM through VC from Kolkata. I already cast my e-voting all in favors of the resolutions. Thanks to secretary of department for sending soft copy of annual report and notices well in advance. As per financial data, our company has shown a good profit growth of 15.36 percent for past years, and our company has significantly decreased its debt. Debt is 111.72 now, our company is virtually debt free. For the financial year 2021 to 2022, our company's EPS was 18.88, of which rupees 8 is distributed as dividend which is healthy. Now come to my queries: the company has a growth of net profit which is declining. I would like to know what initiatives are you taking for sustained growth and profitability? Has the company minimized or managed possible exchange rate fluctuations? How much your R&D is spent in percentage terms? Normal monsoon, government initiatives to boost the rural economy, healthy economic growth, favorable demographic profile, increasing disposable income, and changing customer tastes will support the FMCG sector's growth. That's from my end. Thank you sir.

Thank you. We now invite our next speaker member that is Mr. Mukesh Chandiramani. However, he had registered but now not connected to the meeting. We will therefore move to our next speaker member that's Sujan Modak. Request you to please unmute your audio and video and proceed with your question. Yeah, you can hear me? Yes sir, thank you. Yeah.

Good afternoon respected chairman, other board of directors, and my online fellow shareholders. Sir, I'm Sujan Modak. I'm attending this meeting from my residency in Kolkata. So if we see the performance of our company, this is very good, really remarkable sir. Operating income has gone up, profit before taxes increased, profit after tax has also jumped up sir. We got nice dividend and CSR activity is very fine sir. Namaste. Thank you, thank you, thank you very much.

Thank you. Our next speaker member Mr. Tapas Kumar had registered, however has not connected. We will therefore move with our next speaker member that is Mr. Atano Saha. He's connected via an audio call. Yes, you are audible. Yes yes sir, please go ahead.

Yes yes good morning, good morning. Whether it is time is noon. Good morning sir. Which are making people healthy and beautiful literally. I respected my chairman and board of directors and company secretary and his team and CFO and all present shareholders present in this VC meeting. So our company organizing its 39th AGM on Friday, 9th September 2022, whether it is a holy day of Hinduism. So it's my pride that if I get a chance to attend this AGM today. So our company presented a beautiful, bold, and individual year balance sheet. I said I already cast my votes. And my question is that I agree with all my previous shareholders' queries, so not necessary to repeat the same question. Sir, what is our company's future business plan on the new brand production? And what is our company's shareholder reward policies? And sir, our company is promoting football as a CSR, why not swimming, why not cycling, why not walking on man-made council? But in India, playing is a part of our right now, it's education now. Sir, okay sir, thank you. Wish you happy here, good dividend, and good health to everybody and all field workers. Now I hand over to our moderator, because helping me to provide me an audio system. Thank you, thank you to everybody. I hand over to our moderator. Thank you.

Thank you, thank you. We will move to our next speaker member that's Mr. Bimal Sarkar. Mr. Sarkar, request you to please accept the prompt on your screen, unmute your audio and video and proceed with your question. Could you please unmute your audio and video? Hello? Yes sir, you need to unmute your audio. Hello? We can't hear you. Mr. Sarkar, we can't hear you clearly sir. So I think you're traveling, if you're traveling maybe we can take you on an audio call instead of a VoIP call. Members of the board, it looks like there is some problem with Mr. Sarkar's connection. Members of the board, we will try to get the connection for Mr. Sarkar, there seems to be some issue with his connection. In the meanwhile, we'll proceed with our next speaker member that is Mr. Aloo Kumar Pal. Request you to please unmute your audio and video and proceed with your question. We request you to please accept the prompt on your screen and go ahead with your question.

Hello, good afternoon. Myself A.K. Pal. At the outset, I express my sincere gratitude to our beloved company secretary Mr. Jose and Mr. Prohibits. I am profoundly touched by their currency, kindness, and generosity. My special thanks also go to our secretarial team for their remarkable and speedy investor service. It is truly trustworthy. I also give my heartfelt thanks to our board of directors for studying performance and higher profit. Sir, I have two or three questions. Have you done energy audit and fire safety audit regularly? And your IT system, is 27000 complied or not? As well as your energy system, 50 1000 is complied or not? And what is your future roadmap? Please explain. Thank you sir for patient hearing. Hope next year we will again meet with higher dividend and better performance. Thank you sir.

Thank you. We will now invite our next speaker member. Uh, that was Mr. Vinay Bhidei. It looks like he's disconnected. We'll try to get him back in the call. We'll move to our next speaker member. That's Mr. Tarak Na Chakrabarty. We've been able to reconnect him on an audio call. Mr. Tarak, could you please go ahead?

Yes, speaking. Speaking.

Hello, so you can go ahead so we can hear you.

Hello, I, I good afternoon. Good afternoon Mr. Old is Gold Chairman, Mr. Agarwal and Mr. Goenka, Emami Limited. 39 AGM started now Friday and really we are very proud. Emami is one of the oldest gold herbal company in all over, not only India, all over world. And companies every limited every year is purchasing the medicine group one by one takeover. I am very proud. Really recently is one company takeover is SBL of Homeopathy. This product I used is very dynamic action this product. And not only that, Emami is a very good brand ambassador. I personally feel location our company joint chairman Mr. Goenka and Mr. Jaiswal, all of board of directors and senior valuable most director, finance and CFO Mr. Bantali, and our company very nearest and good connected. Our minority shareholder Mr. Secretary Company A.K. Josie, Assistant Secretary Mr. Ashok, and Mr. Vimal is a really very good coordinator for minority shareholder. And today we are overall 15 speakers joining the AGM over VC, but you all are fully responsible and due to proper time delivered with hard copy in my particular residence, and I personally thank us their department Mr. Joshua. Your annual report is very dynamic, monumental pillar of full of dreams and all color picturing mission vision. And not only that, your Bollywood twenties third dynamic men's women's actor or your control or mummy group is really very proud. We are this is one of the best companies. Bombay all the leading part of actor is joining in our company, and personally this thanks to our advertisement department and our company management team and newcomer our management board. This year your expected nine of monumental pillars accounting standard, account standard is 100 percent benchmark finance pop-up guideline you have to maintain for your standard accounting file. And not only that, minority shareholder tried to best support up three parts: one part of good, second part is good profitability, and third part is good dividend. All these things keep up maintained in this dynamic and dry season. Already 2-3 hours we are very difficult time is arise that COVID-19, and in this time companies to the pace continue dividend, it is a handsome thing. Sir, one thing I question: our company's standard, our company status, our company pays our minority shareholder dividend. All of these things not only you are 13 2013 which one 2018 is one is to one and your research capital use it is my expected 22 or 23 you are announcing your bonus share. But our says secondary market NSE and BSE, and one rupees share is very poor. Very recent is touch around 380 to 430 now. Is my least 500 our conception at least your our company this share price more than five thousand per one share. Parallel that branded limited company share price is high because we are not. It's really I am very unhappy but it is another matter. I know briefly discussion or speech that I. And your annual report is 100 percent benchmark point. One thing I request: for coming here you have joining the physical but video is them too much discard and audio is not super good. Victory organic person and even too much gifter third number I call it to you and there is no sufficient link in my mobile showing, so naturally is a very disturbed point that I request you coming here at least all of these things is very normal. Why so? Why no every guideline is follow up? Physical meeting a lot of some big and small company arranges physical. So sir, I request to you. I know briefly discussion. Thank you our company chairman, we have prayed our god long health. Our connection is very good and he is good coordinate maintained to this, and at lastly thanks for all our members participating minority shareholders. Speaking to Calcutta, my GPID is 773, client ID 1016732. Thank you, thank you, thank you.

We now invite our next speaker member, Abhiroop Nandi. Request you to please accept the prompt on your screen, unmute your audio and video, and proceed with your question.

Good afternoon everyone, I am Abhiroop Nandi, an equity shareholder of the company. Excellent opening speech by our management. I am very confident with this current performance and future performance. Sir, the annual report I had requested a physical copy and I have got it, and it is very well presented. The entire whether it is disclosure or presentation, both are very well done in the annual report, so I'm really happy with this presentation towards the shareholders. So in the financial perspective, in every perspective, the company has done a very strong financial result irrespective of such turbulent economic conditions, so I'm very happy and glad to see such performance by the management. The same is also reflected in the stock price, it is continuously growing, so it shows the shareholders are in all perspective happy. Sir, there has been no compromising quality, whether in the product or towards the attention towards set of shareholders, so the company is totally doing no compromise in quality, they are maintaining top quality, excellent corporate governance led by our CS and its team. We have 13 items and it has been well presented in the explanatory statement. I support all of the 13 items because all of those are for the positive future of the company, so I absolutely support the items in the annual report. The organic and inorganic growth in the company is very good, and I'm very futuristic and very positive regarding the future of this company. That's all from my side, and this is a very transparent and smooth AGM that is being conducted by the company, and it's and chorus call they are doing it very nicely, they have sent multiple reminders and they have given all the support that is required for the shareholders, so thank you for conducting this transparent and smooth AGM. That's all from my side, this is Abhiroop Nandi signing off, thank you.

Thank you. We will now invite our next speaker member. Uh, that was Mr. Bimal Sarkar. We were unable to hear him earlier, we have therefore connected him on an audio call. Your audio is unmuted, yes we can hear you now, so you will have to repeat your question. Hello?

Hey. Thank you very much. Thank you.

Ladies and gentlemen, with this we conclude the question session from the speaker members. I now hand over the proceeding to Mr. R.S. Goenka. Over to you, sir.

Thank you. Dear members, thank you for your patience. I now hand over the proceedings to Mr. N.H. Bin Sally. Over to you, sir.

Thank you, thank you Venkaji. Thank you for allowing me to provide my responses to the shareholders' queries. But before that, I would like to thank all the shareholders for joining the AGM virtually and for extending their unstinted support and encouragement as always. Around 16 shareholders have already spoken on various issues of the company. We are thankful to the shareholders for taking such keen interest in Emami and would now address the issues raised by the respective shareholders in the same chronology. So we'll start with the first shareholder, Mr. Rajesh Godawat. He had a lot of appreciation for the team, for the chairman, and he also congratulated Sri Goenkaji for his award. As a bank republican, it is indeed a great honor for the Emami family to have such a great accolade for Goenkaji and for the Emami family. Thanks. He asked about the compliances followed under Vedias waste management laws. In fact, we are very conscious on waste management since the early days. We have reduced over 1500 metric tons of plastics usage over a period of five years, and we have complied fully with the EPI regulations. Last year in FY22, 25% of our collection and recycling compliance has already been met, and in FY23 the current year also we expect to do a compliance level of 70% in terms of APR responsibilities, and we expect to do full compliance in the next one or two years. Apart from these compliances, we are also taking many steps in terms of recycling the water, increasing the renewable energy consumption. In fact, our renewable energy consumption has increased from 1% to 5% in just two years from FY20. So taking many steps, and the detailed report has been mentioned in our annual report also. Shareholders may kindly refer that, and we are very proud that we are taking all the steps to keep the environment also agile as our products are. He rightly said, Mr. Godawat, that we have spent around 1000 crore on acquisitions, on dividend, and also on the buyback option, and despite this there is no debt. That's a remarkable truth for us because our cash flow is very good. In fact, we beat off over 900 crore via EBITDA, and currently despite making acquisitions regularly, we are still a debt-free company on a net basis with a net cash reserve of around 90 crore as on 30 June. He asked about the future prospect of Dermacol and how much contribution it may have on the overall turnover of the company. Dermacol is a very renowned brand from the house of Paras which had been acquired by the rackets and which we have now acquired in the last financial year. We expect around 3 to 4 percent of our turnover to come from this Dermacol. It is a very prominent product in prickly heat and cool talc category, and it gives along with our existing brand it gives us a leadership position in this category. And we are off to taking it to new heights. He also asked about the future plan for the main company. Emami is a premium product company in the male grooming segment. It has now become a subsidiary of Emami from 1st of July, and it has a great future. It is increasing, the growth is very phenomenal, and we expect good growth to come from this brand. He was insisting and asking for bonus shares. In fact, it's not just the bonus shares, we are looking at the overall growth of the business and the wealth accretion to the shareholders. In line with that, we have rolled out a dividend payout of around 40%, we have also resorted to buyback of shares, and we are also putting money back into the business by doing acquisitions. So all these are wealth creation initiatives for the shareholders, and I hope these are in line with the expectation of the shareholders. The next in line was Mr. Ashit Kumar Pathak. He had all the appreciation for the management team. He rightly pointed out that the debt equity ratio as on 31st March was very low and we were almost debt free at that time itself. We did a buyback of shares and the quantum was 200 crores. He wanted to understand the new launches planned and spend on it. We aggressively spend on the new launches and make the brands successful. For example, Boroplus Ayurvedic cream, then we also launched Kesh King anti-dandruff shampoo, we came out with Chyawanprash with jaggery under the Zandu brand. All are doing extremely well. Navratna therapy was also introduced last year, and there were more than 20 new launches on the Zandukar platform in the last year, and there are many more new launches expected to come in the times to come. He wanted to understand the impact of increasing prices, the COGS in the last year. FY22 on an annualized basis, that increased by 150 basis points, and the trend was increasing further in the first quarter for the current year also where our COGS had increased by 350 basis points. But now we have taken many steps. In fact, we have resorted to judicious price increases and also taken many steps in terms of cost reduction, optimization of course, so we expect the second half there would be substantial pulling off in terms of the increase which has happened. We are handling it very efficiently. He wanted to understand the price paid for True Native for acquisition of 19% sales. The price has not been disclosed and it is not very substantial, and inorganic route as a growth is very much on the cards for us. We want to grow from organic as well as inorganic routes as well. Yes, we have a substantial free cash flow as has been discussed earlier, and so we are always on the lookout for good inorganic opportunities. He wanted to understand the impact on the international business, particularly the turmoil in Sri Lanka, Russia. Well, yes there are challenges, and our teams are relentlessly working on the business plans, and despite these challenges we expect to deliver a double-digit growth in FY23 as well, and that growth would again be a profitable growth. So yes, there are challenges in Sri Lanka also. Some other shareholders also wanted to understand the status of business in Sri Lanka, particularly the forex impact. The impact though there is an impact but it is not great in an overall size of the business, and we expect this to be a shorter term and over a period there are good opportunities in these countries and we are all there to grab the opportunity at the right time. The next was there were questions from appreciation a lot of appreciation by Mr. Tarakana Chakravarthy and also we reconnected with him at the end. He had appreciated the acquisitions by the Emami group. He had all the appreciation for the Emami brands and he is an excellent user of Emami products. Good annual report, he had all the appreciation for the compliances, accounting and disclosures. So all the appreciation he had, we thankfully acknowledged his appreciation. He also had an expectation on the bonus which I already covered. We are looking at growing the business and delivering good value growth to the shareholders. Last year we rolled out more than 350 crores on dividend, we did the buyback of 200 crore, and around 500 crore of kind of an acquisition, so almost 1000 crore has been spent on these initiatives, and we would continue to do good buyback, good dividend payouts, and also keep on looking out for acquisitions. He insisted for the physical meeting for the AGM. Majority of shareholders in a few of the shareholders here also on those who interacted, particularly Mr. Santos Sarkar and other members, they all are willing to conduct the and to join the meeting virtually because it gives lot of convenience. So though we have noted the suggestion, we will discuss and see what is broadly acceptable and useful for all the shareholders. The next appreciation questions were from Mr. Gotham Nandi. He had all the things and appreciation for secretary department and all the team members. He appreciated some dividends during the tough times and also our CSR initiatives. On the bonus also yet a few questions I've already responded to them, and also wanted to understand the new launches plan and the new launches which has been already done I've covered it earlier. And he had a request for factory visit. We had conducted it earlier, and now since the factories have been so fragmented across the country, it is not that easy and advisable also, but though it is a suggestion we will see if it is anyways anything possible there. And we truly acknowledge the kind of emotional loyal customer since he is a loyal customer and despite this our pandemic support he became emotional while remembering that, and we the whole board acknowledge his gesture on this. The next was the questions were from Mr. Jaydee Bakshi. He had all the appreciation again for the secretarial team and the board and the management team. He wanted to understand how are we handling the cost pressure. We have initiated since many years, in fact last three four years we are very vigorously working on cross cost reduction across each head of expense across the organization. We are also taking very judicious price increases to handle the cost pressure, and despite this our margins in terms of gross margins and EBITDA margins are one of the highest in the industry, and we are managing it very well. He wanted to understand the status of units in Bangladesh, Sri Lanka and other international units. All the units are doing very well on the ground. Even the Sri Lanka unit is doing good, Bangladesh unit is doing exceedingly well and is helping us to increase our edge in the business in those countries. He had a bias towards natural products and it's going important, so what are our plans? In fact, if you look at all our products are Ayurveda based, and that's the strength of your company, and we will build further products and our overall business is on this strength only. He is a user of many brands of Emami, we appreciate that, and also he appreciated the nice pictures of our chairman and both the chairmen. Thanks for the compliment. Then Mr. Amit Kumar Banerjee, he had all the appreciation for Emami's products, nice business balance sheet presentation and excellent results. We are appreciation for good dividend and buyback. He was wanting to understand our plans for sustainable growth and also the plans in terms of risk management. These have been captured in a very detailed manner in the balance sheet and would request you to kindly refer to them in detail. And he also insisted for increasing the dividend payout which is presently at 40%. We feel that it is highly reasonable looking at the payout and also the growth money which might be required. The next were the questions and appreciation by Mr. Manoj Gupta. He wanted to understand whether we are compliant with the CSR regulations which have changed over time in the very recently also. We are in fact we take CSR as a religion and not as a compliance. We are fully compliant in terms of the statutory requirements, and apart from that we do it for the benefit of the community, so we take it very religiously. He appreciated the new board and RTG engineer grazie and all of the whole new board. We are thankful for that. Disputed cases, he wanted to understand whether you can reduce it further. Our endeavor is always to reduce the litigations and we take advantage of whenever the opportunity arises, but wherever we are confident and there are cases which are not sustainable, we keep them as this, we fight it out, and we have a very good track record there. He wanted to understand the process of unclaimed dividend. We send the unclaimed dividends before they are transferred to the government fund. The notices are given to the shareholders, notices are also placed on the website, and as far as possible we also try to connect with the shareholders personally and guide them if they are available or contactable. So we take all the steps before we ensure that we properly transfer the funds to the government funds or the equity to the government. Suggestions on the brand ambassadors are noted. He had a question on acquisition of East Bengal Club. Those it's not an endeavor of Emami Limited, it is something for the group, and there is no direct linkage of Emami Limited with East Bengal Club that way, though it is a part of the group and we are proud to remain associated as a group with East Bengal Club. Then Mr. Santos had a lot of appreciation for the board, for the chairman, and for the management team, the presentation, and also the dividend of rupees 8 during the tough times. We sincerely acknowledge his gestures and kind words. He asked whether the further fundraising plan for the acquisitions. We do in fact as I discussed earlier, we have a very substantial cash flow on the balance sheet year after year, over 900 crore kind of EBITDA is being generated, and we are always on the lookout for acquisitions, and despite these acquisitions we are generally debt free. So if there is an opportunity which is of a big size and if we need funds, we definitely would come to the shareholders for any day when it would be required. Audit of CSR initiatives as I discussed earlier, we take CSR very sincerely and we are very meticulous in terms of the impact it is making to the society. It is not just a compliance. In fact, our Sir Sushil Goenkaji, he heads the CSR, he's the old-time director, and he does it very religiously, and we all take active interest in CSR activities. On the renewable energy, the plants we already have increased our contribution, our utilization of renewable energy from 1% to 5%, and we also have solar energy plants as captive consumption at our manufacturing units. East Bengal Club whether benefit to Emami, it is a part of the group as I said, and it is independent, so as and when required we can always take assistance or do our activities on their wherever as an independent entity. The suggestion and recommendation for booster dose, we also do and recommend to our employees wherever whosoever requires, and then we facilitate our HR and admin department facilitates that also, we recommend them to take the booster doses. He had a view on the participation of female employees. Female employees are around 13%, and including the contractual female employees the contribution is around 19%. We encourage efficiencies and also encourage the female to take active interest. We provide equal opportunity to all and there is no gender bias. He preferred VC in the AGM rather even if the physical in the future. We take note of his suggestions. There are suggestions from Miss Lily Pradhan on good performance. He wants she wanted to understand plan any plan for handicapped or challenged persons. We treat people with a lot of respect, and if there are people who need any assistance, we are always there to help. Mr. Kaushik Saukar also had some requests and for the support CSR and other things on Atma work. We take appropriate steps wherever we feel that there is something which we can do in terms of the business or in terms of the CSR guidelines, we always do to the people whom we can help. The next in line was Mr. Manas Banerjee. He informed he was off, he supported all the resolutions overwhelmingly. We are thankful. He had all the appreciation for the good financials, good growth, and the debt-free status of the company. Dividend payout also of rupees 8 on an earning of 18 was his observation. It is a good observation, we appreciate that. And he asked about our initiatives for sustained growth for the future. We go for growth organically, we take all the initiatives for organic growth, increasing our market shares of existing brands, coming out with brand extensions in the organic business. We are always also on the lookout for inorganic opportunities, and recently since few years we are also on the lookout for growing our business through startups. So all the three growth levels are being applied, and we are consistently putting all our energies on all the three levels. He wanted to understand R&D spend as a percentage term. It is around 1% in terms of the specific people and other costs, but apart from this there are not many expenses which are being incurred on R&D in every other area which cannot be found which is much more than the 1% amount which is being told here. Then Mr. Sujan Modak, he appreciated good action of relay on leadership transition. He had a concern on Emami Lanka current status. I already narrated it earlier. Yes, there are challenges there in that country, but the stakes are not big, and we feel that there is a good opportunity for business in the times to come, and we are always to take benefit of the emerging opportunity when it comes. Next, the views and suggestions we have from Mr. Saha. He also wanted to understand future plans for growth, all the appreciation for board and balance sheet. He on CSR is here, he suggested whether walking and cycling can also be included. We note the suggestion and will forward it to our CSR team if there is anything which could be helpful. Then we had Mr. Bimal Sarkar, he had an appreciation for the good results all through, though we could not hear him very clearly, but we understand and acknowledge his appreciation for Goenkaji's presentation also and appreciation for the management team. Then we had Mr. Pal. He asked whether we do the energy audit and fire safety audit. We regularly conduct them as and when it is planned or wherever it is felt necessary. He also wanted to understand IT system compliances and certification. They are all in place in a very structured manner. Then we had questions from Mr. Abhiroop Nandi. He was happy to see the good performance, he got that physical copy of the annual report from the secretary department, he was very happy about it, and we had all the appreciation for the smooth conduction of the AGM and for our agency on this. He appreciated for top quality and products and presentations. We are thankful, we acknowledge the gestures Mr. Nandi has made. So these were around 16 shareholders who had not many suggestions and well wishes for us. We are thankful to each one of them. I think with this I've been able to answer all your questions. And before I request Goenkaji to preside over the meeting again, I would like to thank all our shareholders for their unstinted support all these years. You are a part of our extended family, and it is your trust and confidence that drives us to deliver superior performance despite challenging times. Thank you once again. Now I would request Goenkaji to take over and guide further on this. Thank you.