Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Valorem Analyst Conference 2018
28 slides from Hindustan Foods's conference presentation, Mar 21, 2018
Slide 1: Cover letter to BSE on Valorem Analyst Conference
Hindustan Foods Ltd. $ Corporate Headquarters & Registered Office : Dempo House, Campal, Panaji, Goa - 4O3 OO1 . Ph. : A32 - 24413OO, Gram : 'hindfood. Fax : 91 - a32 - 2225098, 2228588, E-mail : hfl @ dempos.com, Website: www.hflgoa.com CIN: L1 51 39GA1 984PLCOOO6O1 Companv Scrip Code: 519126 lSlN
Slide 2: Hindustan Foods Limited Investor Presentation March 2018
HINDUSTAN FOODS LIMITED INVESTOR PRESENTATION | MARCH 2018
Slide 3: Executive Summary
Executive Summary • Founded in 1988, Hindustan Foods Limited (HFL) is a principal contract manufacturer for a range of leading FMCG products. • In 2013, Vanity Case Group bought a controlling stake in Hindustan Foods Ltd. from Dempo Group of Goa and since then the company has diversified across vari
Slide 4: Opportunity
Opportunity In India, contract manufacturing is the future and Hindustan Foods is at its forefront. IDEAL FOR UPCOMING BRANDS COST ECONOMY As most market spaces become For companies that need to test- increasingly competitive, there is a market products and only gradually greater premium on the need
Slide 5: Opportunity
Opportunity The age of contract manufacturing as a distinctive sector has arrived. HFL is well-placed to emerge as one of the most promising FMCG outsourcing companies in India. FMCG Market Food Processing Market Baby Foods Market 49 Billion USD 258 Billion USD India has largest population of 0-4 ye
Slide 6: Company Overview
COMPANY OVERVIEW 5
Slide 7: Group Overview
Group Overview About the Group Product Basket The Vanity Case Group was founded by Late Shri R.M. Kothari in the year 2001 and is one of the largest and most diversified contract manufacturing company for various FMCG products. • The company‟s mission stands at providing world class solutions for th
Slide 8: Company Overview
Company Overview Introduction Clientele • The company is headquartered out of Goa and was promoted by the Dempo Manufacturing: Group. The plant located at Goa is equipped with state-of-the-art twin-screw extruder technology to manufacture superior quality cereal-based food products. • In 2013, Vanit
Slide 9: Company Transformation
Company Transformation HFL has a vision of growing 20x by 2020 and reach a turnover of INR 700 Crores. 2013-2016 2017 2018 Goa- Foods Jammu & Kashmir- Pest Control Products Tamil Nadu- Beverages • Extended the capacity from 3,000 tons p.a. to • Manufacture & supply agreement with Reckitt Benckiser •
Slide 10: Board of Directors
Board of Directors Mr. Shrinivas V. Dempo, Chairman Nikhil K. Vora, Non-Executive Director • Mr. Shrinivas V. Dempo is the third-generation entrepreneur and chairman of Goa‟s Leading • Nikhil Vora is the founder and CEO of Sixth Sense business House, Dempo. Ventures. • He received a postgraduate man
Slide 11: Scale of Operations
Scale of Operations Goa • Hindustan Foods Ltd.‟s plant is located at Usgaon, Ponda, that is spread across 52,625 square meters of area. • The company manufactures food products: cereals, porridges and snacks. • The facility is equipped with state-of-the-art twin-screw extruder technology to manufact
Slide 12: Scale of Operations
Scale of Operations Jammu & Kashmir • The unit is spread across 35,143 square meters of area at IGC II, SIDCO Samba. Jammu & Kashmir. • The company manufactures Pest control products: coil, aerosols, vaporisers. • The unit was acquired from Reckitt Benckiser (India) Pvt. Ltd. in the end of 2017 and
Slide 13: Food Safety and Certifications
Food Safety and Certifications 12
Slide 14: Business Model
BUSINESS MODEL 13
Slide 15: Contract Manufacturing
Contract Manufacturing 1 unit many clients Multiple products Introduction • Contract Manufacturing is the outsourcing of part or the whole manufacturing process of a product to third party. For the company under Advantages this model, the manufacturing units are utilized for various client companies
Slide 16: OEM Model
OEM Model • Under this model, the company either does the greenfield expansion of the manufacturing facility for the principal or acquires the facility from the principal. • The company ensures that these are long term contracts in place before acquiring or setting up such manufacturing units. • Thi
Slide 17: Private Labels
Private Labels Introduction Advantages for Private labels • Private label is the process of taking a manufacturer‟s formulation and Outsourcing Own Manufacturing designing and adding your name and logo to it. Private labels • Private labels are developed based on extensive research and testing manuf
Slide 18: Owned Brands
OWNED BRANDS 17
Slide 19: Owned Brands & Distribution
Owned Brands & Distribution Why Start their own brand? Advantages To leverage manufacturing capacities and capabilities. • Utilization of excess capacity. • Leveraging of existing intellectual. • The company‟s evolving situation encourages them to develop their own brands. • To leverage the manufact
Slide 20: Strategic Overview
STRATEGIC OVERVIEW 19
Slide 21: Key Strengths
Key Strengths Management expertise with over two Strengthened the business to address decades of experience in contract opportunities arising out of GST manufacturing. implementation. One stop solution for product Global footprint with strong domestic development, testing, manufacturing and exports
Slide 22: Future Strategy
Future Strategy There is a growing opportunity in the contract manufacturing space in India for the following reasons. One, the space is not marked by a large number of organised players with access to financial resources, execution capability, ability to manage multi-locational facilities or posses
Slide 23: Financial Overview
FINANCIAL OVERVIEW 22
Slide 24: Income Statement
Income Statement Income Statement (Mn) FY15 FY16 FY17 9MFY18** Total Income* 174^ 239 381 761 Total Expenses 231 217 341 699 EBITDA (57) 22 40 62 Depreciation 13 13 14 7 Interest 16 10 9 5 PBT (86) (1) 17 50 Tax 0 0^ 4 15 Profit After tax (86) (1) 13 35 PAT Margins (%) NA NA 3.41% 4.60% EPS NA NA 1.
Slide 25: Balance Sheet
Balance Sheet Particulars (INR Mn) FY 15 FY16 FY17 H1-FY18*^ Particulars (INR Mn) FY15 FY162 FY17 H1-FY18*^ EQUITIES & LIABILITIES ASSETS Shareholder Funds Non-Current Assets Share Capital 66 66 146 130 Fixed Assets 112 109 127 140 Reserves& Surplus (66) (51) 202 220 Deferred Tax Asset (Net) 0 15 15
Slide 26: Capital Market Data
Capital Market Data Share Price Performance (As on 31st December, 2017) 140% Hind. Foods Sensex 120% 100% 80% 60% 40% 20% 0% -20% Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 Dec-17 Market Data (INR) (As on 31st December, 2017) Shareholding Pattern (As on 31st Decembe
Slide 27: Disclaimer
Disclaimer No representation or warranty, express or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of the information or opinions contained in this presentation. Such information and opinions are in all events not current after the d
Slide 28: Thank You
THANK YOU 27