Dodla Dairy Ltd. · NSE:DODLA
Dodla Dairy — Investor Presentation (August 2021)
34 slides from Dodla Dairy's investor presentation, Aug 7, 2021
Slide 1: Exchange filing cover letter: Investor Presentation
DODLA DAIRY LIMITED MILK & MILK PRODUCTS Corporate Office : # 8-2-293/82/A, Plot No. 270-Q, Road No. 10C, Jubilee Hills, Hyderabad - 500033. DODLA DAIRY Ph : 040-4546 7777 Fax : 040-4546 7788 Date: 7 August 2021 The General Manager The Manager Department of Corporate Services Listing Department BSE
Slide 2: Dodla Dairy Investor Presentation August 2021
DODLA DAIRY DODLA DAIRY INVESTOR PRESENTATION AUGUST 2021
Slide 3: Table of Content
DODLA DAIRY TABLE OF CONTENT 01 About Us 02 Company Canvas 03 Strategic Advantages 04 Full Year Financials 05 Quarterly Highlights
Slide 4: About Us
: ABOUT US DODLA DATRY
Slide 5: Dodla Dairy Snapshot
4 DODLA DAIRY DODLA DAIRY SNAPSHOT 2nd 3rd 14 ~20 highest market presence largest procurement processing plants LLPD aggregate installed across 12 states in India* network* capacity About Us Founded in 1995, Dodla Dairy is an 7,100+ ~90% 97 3,100+ integrated dairy company based in Village Level Coll
Slide 6: Our Journey So Far
5 DODLA DAIRY OUR JOURNEY SO FAR 25+ years of dairy operations in partnership with marquee investors Badvel and Investment by Investment by TPG IFC invested ~ Sattenapally plants Black River(1) Rise Fund as it INR 1,000 MN acquired stake of Black River(1) Listed on BSE & Incorporation of NSE Dodla D
Slide 7: Presence Across Dairy Value Chain
6 DODLA DAIRY PRESENCE ACROSS DAIRY VALUE CHAIN Chilling Centers Processing plants ▪ Transportation by village vehicles ▪ Total 14 milk processing plants in through ~770 primary vehicles to India & Uganda 97 chilling centers/plants ▪ Company regularly incur capex to Integrated upgrade technology, au
Slide 8: Few of Our Products
7 DODLA DAIRY FEW OF OUR PRODUCTS PASTEURIZED Full cream, Standardised UHT MILK Toned, Double Toned CURD Sachet Curd, Bucket Curd, Cup POUCH MILK Milk, Toned, Curd GHEE Cow ghee, White ghee (buffalo ICE CREAM Vanilla, Elaichi, Pista, Badam, YOGHURT Plain, Strawberry, Vanilla, ghee) and Premium ghee
Slide 9: Orgafeed Private Limited: Built on a Strong Foundation
8 DODLA DAIRY ORGAFEED PRIVATE LIMITED: BUILT ON A STRONG FOUNDATION Orgafeed primarily engaged in farming, breeding, agriculture, horticulture and allied activities such as poultry, dairy and livestock farming. Additionally, it is also in the business of seed crushers, manufacturing and dealing of
Slide 10: Meet the Executive Team
9 DODLA DAIRY MEET THE EXECUTIVE TEAM Mr. Dodla Sunil Reddy Mr. Venkat Krishna Reddy Busireddy Mr. Anjaneyulu Ganji Managing Director Chief Executive Officer Chief Financial Officer EXP: 25+ years of Dairy Exp EXP: 35+ years of Dairy Exp EX: Tata Cummins Private Ltd & Maersk 23+ years with Dodla
Slide 11: Board of Directors
10 DODLA DAIRY BOARD OF DIRECTORS Mr. Dodla Sesha Reddy Mr. Raja Rathinam Mr. Raman Tallam Puranam Mr. Akshay Tanna Chairman & Non-Executive Director Independent Director Independent Director Non-Executive Nominee Director Ex: 22+ years of Dairy Exp Dairy Exp: 40+ years | Previously EX: SBI Capital
Slide 12: Company Canvas
DODLA DAIRY COMPANY CANVAS
Slide 13: Our Strength to Deliver Competitive Advantage
12 DODLA DAIRY OUR STRENGTH TO DELIVER COMPETITIVE ADVANTAGE Processing Capacity A ▪ Best practices to maximize capacity utilization, operating metrics and profitability 20 ▪ Flexible and agile with Continuous 18 17 improvement mindset 13 12 13 Milk Procurement 11 10 11 11 11 11 B ▪ All dairy proces
Slide 14: Our Value-Added Product Investments
13 DODLA DAIRY OUR VALUE-ADDED PRODUCT INVESTMENTS STRONG VAP PRODUCT PORTFOLIO Dodla Dairy is investing heavily in expanding its range of value- VAP Sales (in Rs. Mn) added products, a move that is anticipated to boost margins. 5,794 The company has been proactive in identifying and responding 4,86
Slide 15: Our Overseas Presence
14 DODLA DAIRY OUR OVERSEAS PRESENCE Dodla operates in Kenya and Uganda in Africa through its subsidiaries Lakeside Dairy Limited & Dodla Dairy Kenya Limited. Our African product portfolio is marketed under the “Dairy Top” and “Dodla +” brands and includes Milk, yogurt with different flavours, ghee,
Slide 16: Strategic Advantages
DODLA DAIRY STRATEGIC ADVANTAGES
Slide 17: Key Strengths
16 DODLA DAIRY KEY STRENGTHS 3rd Largest Player in terms of milk Higher B2C Sales through procurement (in South India)* Strong Branding An Extensive Product Portfolio Strong Distribution Network (Milk Based Value-Added across 12 States in India* Products) Global Presence Total 14 Processing Plants a
Slide 18: Stringent Quality Control Procedures
17 DODLA DAIRY STRINGENT QUALITY CONTROL PROCEDURES Well Defined Quality and Food Safety Procedures at Various Stages from Procurement to Distribution Procurement Stage Processing Stage ▪ VLCCs equipped with GPRS enabled electronic milk ▪ At chilling centers and processing plants, the raw milk analy
Slide 19: Focused Engagement and Long-Term Relationship with Dairy Farmers
18 DODLA DAIRY FOCUSED ENGAGEMENT AND LONG-TERM RELATIONSHIP WITH DAIRY FARMERS REGULAR DIRECT PAYMENT ▪ Money paid directly to farmers in their bank accounts once every 10 to 15 days ▪ ~84% of total farmers payment covered as of Q1FY22 TRANSPARENCY IN PROCUREMENT ▪ Company has VLCCs equipped with G
Slide 20: Investment Rationale
19 DODLA DAIRY INVESTMENT RATIONALE Integrated Supply Chain Automated Plants Backward Integrated Strong Direct procurement model, Fully automated plants leading to improved Presence in cattle feed business through its eliminating middleman, reducing the cost operational efficiencies and reduce subsi
Slide 21: Dodla ESG Commitment
20 DODLA DAIRY DODLA ESG COMMITMENT ENVIRONMENT COMMITMENT SOCIAL COMMITMENT GOVERNANCE COMMITMENT • We are dedicated to producing dairy • To ensure a sustainable future, we are • We have established a diverse products in a manner that is humane focused on the development of healthy governance struc
Slide 22: Full Year Financials
DODLA DAIRY FULL YEAR FINANCIALS
Slide 23: Key Ratios – Full Year
22 DODLA DAIRY KEY RATIOS – FULL YEAR 30.5% 25.7% 22.6% 23.3% 15,905 16,888 21,394 19,440 3,588 4,349 4,988 5,931 ▪ Revenue impacted in FY21 due to Covid-19 lockdown, resulting in loss of FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 sales Operating Revenue (in Rs. Mn) Gross Profit (in Rs. Mn) Gross Margi
Slide 24: Key Ratios – Full Year
23 DODLA DAIRY KEY RATIOS – FULL YEAR 25.5% 19.1% 23.3% 18.9% 16.8% 17.0% 15.5% 11.5% 738 397 3,398 4,068 4,335 6,580 802 2,849 FY18 FY19 FY20 FY21 FY18 FY19 FY20 FY21 B ▪ Robust growth and margins leading to NetWorth (in Rs. Mn) ROCE (%) Cash & Cash Eq (in Rs. Mn) ROE (%) high capital efficiency, l
Slide 25: Quarterly Highlights Q1FY22
DODLA DAIRY QUARTERLY HIGHLIGHTS Q1FY22
Slide 26: Management Commentary
25 DODLA DAIRY MANAGEMENT COMMENTARY I'm pleased to report that we were able to lean into our resilient business model to drive strong financial results to start this fiscal year. The strength of multi-channel business model fueled first-quarter revenue growth by 12.5%, despite the continued covid p
Slide 27: Quarterly Operational Highlights
26 DODLA DAIRY QUARTERLY OPERATIONAL HIGHLIGHTS AVERAGE MILK PROCUREMENT DURING Q1FY22 WAS AT 12.3 LLPD COMPARED TO 10.0 LLPD IN Q1FY21 AVERAGE MILK SALES DURING Q1FY22 WERE AT 8.3 LLPD COMPARED TO 7.7 LLPD IN Q1FY21 CURD SALES DURING Q1FY22 WAS AT 294.3 MTPD COMPARED TO 243.2 MTPD IN Q1FY21 REVENUE
Slide 28: Key Ratio - Quarterly
27 DODLA DAIRY KEY RATIO - QUARTERLY 30.7% 28.4% 25.4% ▪ Overall Margins are stabilizing after 4,554 5,305 5,121 1,398 1,345 1,452 the muted Q4FY21 due to Covid-19 Q1FY21 Q4FY21 Q1FY22 Q1FY21 Q4FY21 Q1FY22 second wave impacting out of home Operating Revenue (in Rs. Mn) Gross Profit (in Rs. Mn) Gross
Slide 29: Capital Market Information
28 DODLA DAIRY CAPITAL MARKET INFORMATION Few of our Key Investors as on 30th June 2021 (% of Total Equity) 23.7% SBI CONSUMPTION OPPORTUNITIES FUND 6.83 INTERNATIONAL FINANCE CORPORATION 4.85 9.2% 62.5% ASHOKA INDIA OPPORTUNITIES FUND 1.68 4.5% B ADITYA BIRLA SUN LIFE MULTI-CAP FUND 1.06 DSP SMALL
Slide 30: Contact Us
29 DODLA DAIRY CONTACT US Ganji Anjaneyulu Chief Financial Officer investorqueries@dodladairy.com Tel: 040-4546 7777 Nikhil Morye | Krishn Bhaiya Christensen Advisory nmorye@christensenir.com | Kbhaiya@christensenir.com Tel: +91-9969567373 | +91-9940517368 ENCHANCED IMAGE OF OUR PLANT NEAR RAJAMUNDR
Slide 31: Appendix
DODLA DAIRY APPENDIX
Slide 32: Balance Sheet Summary (Full Year)
31 DODLA DAIRY BALANCE SHEET SUMMARY (FULL YEAR) PARTICULARS FY’18 FY’19 FY’20 FY’21 ASSETS Non-current assets 3,745 5,374 5,697 5,703 Current assets 2,263 2,061 2,229 4,019 ▪ Company is steadily expanding its capabilities and capacities which is Total Assets 6,008 7,435 7,926 9,722 reflected in our
Slide 33: Safe Harbor
32 DODLA DAIRY SAFE HARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by Dodla Dairy Ltd (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for an
Slide 34: Glossary
33 DODLA DAIRY GLOSSARY LLPD: Lakhs Liter per day MTPD: Metric Tonnage Per day UHT milk: Ultrahigh Temperature Processed Milk VLCC: Village Level Collection Center DRP: Dodla Retail Parlours LPA: Liters Per Annum MT: Metric Tonnes B VAP: Value-added Product FII: Foreign Institutional Investor