Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Valorem Analyst Conference 2019
30 slides from Hindustan Foods's conference presentation, Mar 14, 2019
Slide 1: Hindustan Foods Ltd. exchange intimation for Valorem Analyst Conference
®£) @ i>iM 0 Hindustan Foods Ltd. Registered Office & Corporate Headquarters: Office No.3,_ Level-2, Centrium: Phoenix Market City, 15, Lal Bahadur Shashtri Road, Kurla (W), Mumbai, ~aharashtra, India. 400 070. Email: business@thevanitycase.com Website: www.hflgoa.com Tel. No. +91-22-61801700 CIN: L
Slide 2: Hindustan Foods Limited Investor Presentation March 2019
HINDUSTAN FOODS LIMITED HINDUSTAN FOODS LIMITED INVESTOR PRESENTATION | MARCH 2019 • • • • •
Slide 3: Executive Summary
Executive Summary HINDUSTAN FOODS LIMITED • Founded in 1984, Hindustan Foods Limited (HFL) offers reliable contract manufacturing services across India to top FMCG customers who are looking to minimize cost while maximizing product quality in the post-GST environment. • In 2013, Vanity Case Group bo
Slide 4: Industry Overview
Industry Overview HINDUSTAN FOODS LIMITED The age of contract manufacturing as a distinctive sector has arrived. Hindustan Foods is very well placed to continue leveraging India’s consumption story. • Acording to a report by IBEF, India’s FMCG market is expected to grow at a CAGR of 27.86% to reach
Slide 5: Growth Drivers
Growth Drivers HINDUSTAN FOODS LIMITED E-commerce GST implementation SpecializedApproach Make In India Cost efficiency Growing Consumer Demand Faster-Time-To-Market Contract Manufacturing Ease of doing business Asset-light operating models Focus on core competency Evolving regulatory environment Inc
Slide 6: Company Overview
COMPANY OVERVIEW 5
Slide 7: Company Overview
Company Overview HINDUSTAN FOODS LIMITED Introduction Key Clients • Hindustan Foods Ltd. (HFL) was founded in 1984 and was promoted by the Dempo Group. • In 2013, the Vanity Case Group acquired a controlling stake in the company. • The Vanity Case Group was founded in the year 2001 and is one of the
Slide 8: Company Transformation
Company Transformation HINDUSTAN FOODS LIMITED HFL has a vision of growing 20x by 2020 and reach a turnover of INR 1,000 Cr. 2013-2016 2017 2018 2019 Jammu - Pest Control Goa- Foods Coimbatore-Beverages Mysore Products • Extended the capacity •Manufacture & supply •This is a greenfield expansion und
Slide 9: Board of Directors
Board of Directors HINDUSTAN FOODS LIMITED Shrinivas Dempo, Chairman Nikhil Vora, Non-Executive Director • Shrinivas Dempo is the third-generation entrepreneur and • Nikhil Vora is the founder and CEO of Sixth Sense chairman of Goa’s Leading business House, Dempo. Ventures. • He received a Postgradu
Slide 10: Scale of Operations
Scale of Operations HINDUSTAN FOODS LIMITED Goa • Hindustan Foods Ltd. plant is located at Usgaon, Ponda, that is spread across 52,625 square meters of area. • The company manufactures food products such as cereals, porridges and snacks. • The facility is equipped with the state-of-the-art twin-scre
Slide 11: Scale of Operations
Scale of Operations HINDUSTAN FOODS LIMITED Jammu • The unit is spread across 35,143 square meters of area at IGC II, SIDCO Samba, Jammu. • The company manufactures pest control products such as coil, aerosols and vaporisers. • The unit was acquired from Reckitt Benckiser (India) Pvt. Ltd. by the en
Slide 12: Scale of Operations
Scale of Operations HINDUSTAN FOODS LIMITED Coimbatore • Located in Coimbatore, the plant is spread across 85,000 square feet and the facility commenced production in December 2018 • The company intends to process, blend and pack tea, coffee & soup products. • High speed single-track and multi-track
Slide 13: Hyderabad Merger
Hyderabad Merger HINDUSTAN FOODS LIMITED The company will be merging this unit on an on-going concern basis from the group company which is in line with the long term plan to consolidate the business. Purpose of the Merger • Concentrated management focus on the businesses in a more professional mann
Slide 14: Food Safety and Certifications
Food Safety and Certifications HINDUSTAN FOODS LIMITED BUREAU VERITAS C11t1.r1ai11e111 , HINDUSTAN FOODS LIMITED LISOAC ~!LOAO~ llO.W GO• - '°" .. ISO 22000:2005 -..,.-A.C""'°'t fQll O' ~:I CVI£ aA1U1 f:>Oe "'O!«U •A.II"!PCOO S!!lt4t.~.I POOO. .. .._ lfOOOI ~.IQti..lr.L Food Safety System Certificat
Slide 15: Business Model
BUSINESS MODEL 14
Slide 16: Contract Manufacturing
Contract Manufacturing HINDUSTAN FOODS LIMITED + 1 unit Introduction many clients Multiple products ---- Concept.Our 0 ur Expertise. Your Brand Expertise • Contract Manufacturing is a process of outsourcing a part or the whole Advantages manufacturing process of a product to a third party. For the c
Slide 17: OEM Model
OEM Model HINDUSTAN FOODS LIMITED • 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 there are long-term contracts in place before acquiring or setting up such ma
Slide 18: Private Labels
Private Labels HINDUSTAN FOODS LIMITED Introduction • Private label is the process of taking a manufacturer’s formulation and designing and adding your name and logo to it. • Private labels are developed based on extensive research and testing + methods which can be similar but not a replication of
Slide 19: Strategic Overview
STRATEGIC OVERVIEW 18
Slide 20: Why HFL?
WHY HFL? HINDUSTAN FOODS LIMITED Strengthened the business to address Management expertise with over two opportunities arising out of GST 1 decades of experience in contract implementation and evolving regulatory 6 manufacturing environment Delivery on Time’, ‘Consistent Strong foundation of trust w
Slide 21: Future Strategy
Future Strategy HINDUSTAN FOODS LIMITED There is a growing opportunity in the contract manufacturing space in India as 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 possessing
Slide 22: Corporate Social Responsibility
CORPORATE SOCIAL RESPONSIBILITY 21
Slide 23: Social Initiatives
Social Initiatives HINDUSTAN FOODS LIMITED We all have a social responsibility and have to be mindful of what we do and say. Our Small Steps Towards a big change Blood Donation Camp Environment Yoga Program Tree Plantation Society Workplace Dengue Awareness Water Cooler Donation Market Umang Foundat
Slide 24: Social Initiatives
Social Initiatives HINDUSTAN FOODS LIMITED Tree Plantation Ashram Monthly Donation Yoga Program Donation of Water Cooler 111 I 11 11111 II Ill I lllll Ill II Ill lllllll Ill II Ill II Ill II Ill I Ill II Ill I lllll Ill I 11 I 111 23
Slide 25: Financial Overview
FINANCIAL OVERVIEW 24
Slide 26: Income Statement
Income Statement HINDUSTAN FOODS LIMITED Income Statement (INR Mn) FY15 FY16 FY17** FY18** 9M-FY19 Total Income* 174^ 239 389 1,400 1,532 Total Expenses 231 217 357 1,288 1,380 EBITDA (57) 22 32 112 152 Depreciation 13 13 14 12 20 Interest 16 10 9 13 23 PBT (86) (1) 9 87 109 Tax - ^ 2 24 29 Profit A
Slide 27: Balance Sheet (As per IndAS)
Balance Sheet (As per IndAS) HINDUSTAN FOODS LIMITED H1- H1- PARTICULARS (INR Mn) FY17 FY18 PARTICULARS (INR Mn) FY17 FY18 FY19 FY19 EQUITIES & LIABILITIES ASSETS Shareholder Funds Non Current Assets Share Capital 130 130 135 Property, Plant and equipment 94 390 398 Other Equity 190 253 444 Capital
Slide 28: Capital Market Data
Capital Market Data HINDUSTAN FOODS LIMITED Share Price Performance (As on 31st December, 2018) 50% 40% 30% 20% 10% 0% -10% -20% -30% Jan-18 Feb-18 Mar-18 Apr-18 May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Dec-18 HFL BSE Sensex Market Data (INR) (As on 31st December, 2018) Shareholding Pattern
Slide 29: Disclaimer
Disclaimer HINDUSTAN FOODS LIMITED 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
Slide 30: Thank You
THANK YOU 29