The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Avi Mehta - Macquarie Research - Analyst
: Hina, I was -- you highlighted about the business strategy refresh, which we shared. What you also said that you're unlocking new engines of
growth. Would it be fair to say that as we look to dial up growth rates, you would kind of put preference to sales over margin expansion? Is that
the way I should read at least from a broad concept point of view?
Question: Avi Mehta - Macquarie Research - Analyst
: Okay. No, there was (inaudible) their history has been awesome in terms of the expansion that they've done, their net debt reduction. We've seen
very strong headway in that kind of trend, so I was just trying to kind of compare from there on, would the focus be more on investing in the market.
Because it seemed to be, as you -- logically, as you would look to drive new engines of growth, it would need funds and investments. That's what
I would -- and please correct me if that is not the right way to kind of look at this?
Question: Avi Mehta - Macquarie Research - Analyst
: And just a little bit far, do these new investments -- when you kind of look at new opportunities, you highlighted towards alliances. Is it fair to argue
that the capital intensity is also going to be remaining under control? Is that why alliances would be the preferred route? Is that right way?
Question: Harit Kapoor - Investec Bank plc, Research Division - Analyst
: Yes. I just had 1 question on the gross margin side. So in spite of the product mix and state mix being adverse for the quarter, you've seen a sequential
kind of improvement in the gross margin. I just wanted to get your sense on kind of how you're thinking about this from an annual perspective
because, on the one hand, your product, which will continue to improve state mix or normalize on-trade and improve. On the other hand, you
have some level of inflation coming in especially, as you mentioned, from glass. So should we see an improving trend in this line item going forward?
Or it should be similar or bad? If you can better confirm that.
Question: Harit Kapoor - Investec Bank plc, Research Division - Analyst
: Got it. One more question was on the renovation side of the portfolio. So you mentioned there is a Black Dog renovation. You put that out in 3
markets. I just wanted to get your sense on in terms of the overhaul of Black Dog, is this a packaging innovation, a blend plus packaging innovation?
What happened on that side, if you can give a little more color as well as what's the kind of market expansion will be in the next 3 to 6 months on
this?
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