Second Quarter - Dabur India Limited

Percy PanthakiDabur India Limited Q2/H1Earnings Conference CallOctober 31 st , 2008What would be your approximate split of revenues between modern trade and general tradefor the juices?Sunil Duggal: 80:20,Percy Panthaki80% is in the general trade.Sunil Duggal:But the modern trade should have been showing better growth than what we had expected itto be. I think one thing which perhaps goes in our favor near term at least is that moderntrade is tapering off very rapidly because the huge acceleration which you saw last year hascome to a completely grinding halt, so the dependency on modern trade would reduce goingforward and I think that would add to our advantage because our strength ultimately is morein traditional trade than in modern trade vis-à-vis the smaller competitors.Percy PanthakiBut this Rs.50 price point that others are offering is it sustainable price point or are theyrunning losses and therefore not sustainable or is there cost structure aligned so that theycan keep offering this price point?Sunil Duggal:Well it all depends what they are putting inside the box. We do not know what they are.Percy PanthakiThere is no right now requirement, legal requirement to state the percentage of juice in thecartons.Sunil Duggal:We are expecting a legislation to happen which will stipulate at least some declaration ofjuice content and that I think would be good for the industry as a whole.Percy PanthakiAnd secondly sir on your retail business can you just run us through the philosophy as itstands today and what are the changes as compared to the plan you had a year back.Sunil Duggal:See obviously the whole landscape has changed, so we need to reorient our retail strategy,so going forward, it is to get into much lower cost real estate and visibility of that is alreadyappearing, so we are looking at Rs.100 a square ft real estate. At the supply end we have Ithink more or less perfected the business model which we believe will work, so the newstore which we will be opening and we do plan to open 10 to 15000 square feet in the nextfew months, should reach store break even almost immediately and I think that is what wehave to validate that can we have stores which can open and reach break even in two tothree months. So overall if we reduce the SGNA and the other costs from current levelswhich we are in a process of doing so, the business model can look far more robust than it islooking today.Percy PanthakiSir, what sales per square feet would you look at for a store, which is let us say about sixmonths old?