Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Investor Presentation (2015)
29 slides from Heritage Foods's investor presentation, 2015
Slide 1: Investor Presentation FY2015
Investor Presentation FY2015 1
Slide 2: About Founder
About Founder Heritage was founded by Mr. Nara Chandrababu Naidu in 1992 with an objective to assure remunerative prices to milk producers, who needed better marketing opportunities. Mr. Nara Chandrababu Naidu is currently the Chief Minister of Andhra Pradesh. He holds the record of being the lo
Slide 3: Disclaimer
Disclaimer The release contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections about the future, but not limited to the Company’s strateg
Slide 4: FY15 Highlights
FY15 Highlights Crossed Rs 2000 crore mark in FY15 by grossing a Revenue of Rs. 2073 crores. Value Added Products, which enjoys 2X EBITDA margins as against Liquid Milk, notched 20% of Dairy revenue. Set up 14th Processing & Packing plant at Sonepat near Delhi. Achieved EBITDA profits in Q4F
Slide 5: Overview of Business Verticals
Overview of Business Verticals Heritage Foods Limited (“Heritage”) is a leading corporate based out of Hyderabad and operates in the high-growth Food and Retail business segments Five reporting divisions - Dairy, Retail, Agri, Bakery and Renewable Energy Dairy (Rs. in Mn.) - FY 2015 Retail (Rs.
Slide 6: Awards
Awards Heritage Foods Limited has bagged the 1st prize in "National Energy Conservation Awards" in Dairy Sector for the year 2014 from Ministry of Power, Government of India. “Images Most Admired Retailer" of the year in the Food & Grocery category was awarded to Heritage Foods Limited for the y
Slide 7: Vision
Vision Vision for Heritage Foods Limited Heritage Foods Ltd. has engaged KPMG and finalized its Vision and Mission statement-2020. The Board of Directors have approved on 30 January, 2015. Delighting Every Home with Fresh and Healthy Products And Empowering The Farmer © 2014 KPMG Advisory Services P
Slide 8: Mission
Mission Mission for Heritage Foods Limited To be a nationally recognized brand for healthy and fresh products with a revenue of INR 6000 Crore by 2020 We anticipate, understand and respond to our customers’ needs by creating high quality products and making them available through innovative and conv
Slide 9: Core Values
Core Values Core Values of Heritage Foods Values for S.U.C.C.E.S.S. S Speed and Agility U Uphold Integrity C Customer Delight Collaboration with Leadership C Excellence E Empowering Society & Employees S Supremacy Through Innovation S Sustainability 9
Slide 10: Consolidated Financial Overview
Consolidated Financial Overview Net Sales (Rs. in Mn.) & Growth % 25000 80.00 69.79% 20730 70.00 20000 17220 60.00 16018 50.00 15000 13934 10961 40.00 10000 34.78% 9004 7925 27.12% 30.00 5880 21.73% 20.38 20.00 5000 14.96% 13.62% 10.00 7.51% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY
Slide 11: Dairy Business Vertical
Dairy Business Vertical Net Sales (Rs. in Mn.) & Growth % 18000 45.00 42.76% 15559 16000 40.00 14000 12686 13282 35.00 12000 10940 30.00 8606 27.12% 10000 25.00 6883 25.03% 8000 20.00 5927 17.14% 6000 4851 22.18% 16.13% 15.96% 15.00 4000 10.00 2000 4.70% 5.00 0 0.00 FY2008 FY2009 FY2010 FY2011 FY201
Slide 12: Dairy: Liquid Milk
Dairy : Liquid Milk In 1997 - 20,000 liters per day was milk collection. In 2015 – 965,176 liters per day is milk collection. Average procurement cost is at Rs. 31.79 per liter Average selling price is at Rs. 37.21 per liter States Milk Procurement LPD Milk Sales LPD Ice Cream LPD Curd Kgs/da
Slide 13: Dairy: Branded/Value Added Products
Dairy : Branded/Value Added Products Forayed into value added products in 2007 Turnover (Rs. in Mn.) 4000 3042.00 Turnover for FY13-Rs. 1743.35 mn, FY14-Rs. 3000 2280.10 2280.10 mn, FY15-Rs. 3042.00 mn 2000 1743.35 1000 0 FY13 FY14 FY15 Products portfolio: Curd (around 75%), rest are in the fo
Slide 14: Dairy: Winning Trust
Dairy : Winning Trust • Facilitating loan for the purchase of cattle through commercial banks; • Facilitating cattle insurance; • Conducting health camps for animals through mobile veterinary clinics at frequent intervals; • Supply of subsidized high quality cattle feed and fodder seeds; • Helping t
Slide 15: Parlours as Brand Outlets
Parlours as Brand Outlets • Heritage Parlor is a Modern “Kirana” incubated and pioneered by Heritage • Currently there are 1274 parlors with an average shop area of 200 sq.ft • Vision is to nurture entrepreneurship and to enhance inclusive growth opportunities-Owned and managed by franchisees • Sell
Slide 16: Dairy: Moving up Value Chain
Dairy : Moving up Value Chain • Focus on own brand value added products Curd Butter milk Frozen Dessert/Ice cream • Consolidation in existing markets • Expansion to new markets o Maharashtra o Delhi 16
Slide 17: Retail Business Vertical
Retail Business Vertical Net Sales (Rs. in Mn.) & Growth % 6000 100.00 92.44% 4940 90.00 5000 80.00 4000 3779 70.00 3266 60.00 2990 3000 2390 50.00 2063 2135 40.00 2000 30.70% 30.00 1072 25.10% 1000 20.00 3.49% 11.94% 15.73% 10.00 9.22% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015
Slide 18: Retail: Highlights
Retail : Highlights • Same Store Growth (considering 60 comparable stores) stood at 3.93% in FY2015. • Number of Bills have grown by 1.62% and Average Bill Value is increased by 2.31% • (1.2%) productivity de-growth in FY2015 from Rs 1178/sq ft to Rs 1163/sq ft. • Store gross margin increased by 13
Slide 19: Retail: Operational & Financial Metrics
Retail : Operational & Financial Metrics Particulars FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 No. of stores 70 75 75 75 73 67 74 92 Total carpet area('000 sqft) 149 159 158 166 217 212 256 338 Effective carpet area('000 sqft) 90 158 158 160 200 205 223 304 Avg stores sales (Rs/sq ft/m
Slide 20: Retail: Business Integration
Retail : Business Integration 20
Slide 21: Retail: Consolidation
Retail : Consolidation o 92 stores in Hyderabad, Chennai, and Bangalore o Total square feet size 3.38 lakh o Expected to achieve PAT breakeven after crossing 5 lakh square feet mark o Expected to turn into profits from FY18 onwards 21
Slide 22: Agri Business Vertical
Agri Business Vertical Net Sales (Rs. in Mn.) & Growth % 900 840 80.00 800 70.01% 70.00 700 678 60.00 600 50.00 500 37.90% 399 40.00 400 302 311 326 30.00 300 219 22.39% 23.83% 200 20.00 100 2.98% 10.00 0 0.00% 0.00% 4.82% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Capital Employ
Slide 23: Agri: Highlights
Agri : Highlights • Pioneers in ― “Custom Farming” in retail industry. Working closely with farmers and providing assistance regarding Good Agricultural Practices Annual crop calendar Integrated Pest management Credit linkage Input supply Pre/post harvest management • Commercial sales of
Slide 24: Bakery Business Vertical
Bakery Business Vertical Net Sales (Rs. in Mn.) & Growth % 120 100.00% 100 80 59 60 60.93% 41 37 40 27 31 32 12.90% 21.95% 20 0 0.00% 0 0.00% 3.13% 0 -10.81% -20 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 Capital Employed (Rs. in Mn.) 140 124 122 117 112 112 120 108 100 80 60 40 20 0 0
Slide 25: Bakery: Highlights
Bakery : Highlights • State-of-the-art bakery production facility • Provides backend production services for Heritage Fresh and Private Label • Manufactures a range of breads, puffs, pastries, puddings and custards • European equipment - spiral mixers, digitally controlled laminated dough lines, bre
Slide 26: Solar: Business Vertical
Solar : Business Vertical • Heritage Foods Ltd has in association with Mahindra EPC Services Private Limited has commissioned a 2.34 MWP Solar Power Project at IPH, Masjid Adavi Village, Mulugu Mandal, in Medak district near Hyderabad on September 29, 2013, under REC mechanism and to meet for the ca
Slide 27: Comparative Shareholding Pattern
Comparative Shareholding Pattern Shareholding pattern as on March ,2015; March, 2014 & March, 2013 120 100 80 53.67 56.62 57.44 % 60 3.86 0.69 0.70 40 2.44 2.66 1.84 20 40.03 40.03 40.02 0 FY15 FY14 FY13 Promoters FII DII Non-Institutions 27
Slide 28: Economic Activity - Manpower
Economic Activity - Manpower as on 30th March, 2015 Division Regular Jobs Dairy 1898 Retail 2218 Agri 96 Bakery 32 Total 4244 28
Slide 29: Thank you
Thank yow Bui q Howe Health. & Happiness