Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q2 FY2021 Earnings Presentation
31 slides from Hindustan Foods's earnings presentation, Nov 10, 2020
Slide 1: Hindustan Foods Limited - Investor Presentation Cover Letter
®£) Hindustan Foods Limited A Vanity Case Group Company Registered Office: Office No.3, Level-2, Centrium, Phoenix Market City, 15, Lal Bahadur Shastri Road, Kurla (West), Mumbai, Maharashtra, India. 400 070. Email: business@thevanitycase.com Website: www.hindustanfoodslimited.com Tel. No. +91-22-61
Slide 2: India's Most Diversified Contract Manufacturer
INDIA’S MOST DIVERSIFIED CONTRACT MANUFACTURER • .. - • - - - • - - - • --- • - • - - .. • - - - • • .... - ... . - • -- .. - • - ,.. - .. - • • .... - -- - - • - - - - -· - --- ~ -....... - --- ..... . . . -~ - - - :::>" - ---..- - • - - --- - INVESTOR PRESENTATION - NOVEMBER 2020 HOME CARE | FOOD
Slide 3: Safe Harbor
Safe Harbor This presentation and the accompanying slides (the “Presentation”), which have been prepared by Hindustan Foods Limited (the “Company”), have been prepared solely for information purposes and do not constitute any offer, recommendation or invitation to purchase or subscribe for any secur
Slide 4: Q2FY21 Overview
Q2FY21 Overview HFL | HYDERABAD PLANT 3
Slide 5: Key Developments
Key Developments The Company entered into a long term contract to manufacture a national brand of Disinfectant Toilet Cleaner at its newly built Silvassa facility. Pursuant to Board sanction of additional The facility was built in 7 months in spite of the investment of Rs. 150 crores, project work H
Slide 6: Key Parameters
Key Parameters Rs. 332 crore Rs. 522 crore 29.6% 64% growth YoY RETURN ON CAPITAL GROSS BLOCK TOTAL INCOME EMPLOYED (RoCE) as on 30th September 2020 for H1FY21 as on 30th September 2020 Rs. 200 crore Rs. 12.6 crore Rs. 5.96 37% growth YoY 19% growth YoY NETWORTH PROFIT AFTER TAX EARNINGS PER SHARE a
Slide 7: Q2 & H1 FY21 Result Highlights
Q2 & H1 FY20 Result Highlights Income (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax (Rs. Crs.) +85% +72% +70% Q2 FY21 319.1 22.0 8.4 172.7 12.8 4.9 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Q2 FY20 Q2 FY21 Income (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax (Rs. Crs.) H1 FY21 +64% +54% +37% 521.5 37.1 12.6 9
Slide 8: Focus on Operational Efficiencies
Focus on Operational Efficiencies Operating Cash Flows (w/o tax) (Rs. Crs.) Working Capital Cycle (Days) Debtors Inventory Creditors +24% 13.4 55 10.8 46 12 Q2 FY20 Q2 FY21 Sep-20 • Strict Value Creation on all Capital Options • Higher Capital Efficiency and reallocation of Capital to Growth Opportu
Slide 9: Profit & Loss Statement (Standalone) – Q2 & H1FY21
Profit & Loss Statement (Standalone) – Q2 & H1FY21 Particulars (Rs. Crs.) Q2 FY21 Q2 FY20 Y-o-Y H1 FY21 H1 FY20 Y-o-Y Total Revenue 319.14 172.66 85% 521.48 317.35 64% Cost of Goods Sold 265.63 135.91 431.95 247.00 Manufacturing & Operating Costs 17.20 13.40 27.19 25.61 Gross Profit 36.31 23.35 62.3
Slide 10: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Sameer R. Kothari, Managing Director said, “After having taken a conscious decision in the last quarter to prioritize customers and employees at the expense of shareholders, I am pleased to now report that in this quarter, the company has
Slide 11: HFL at a Glance
HFL at a Glance HFL | GOA PLANT 10
Slide 12: We Have The EDGE
We Have The EDGE THE BRAWN BEHIND YOUR BRANDS 11 Pioneers in FMCG Contract Manufacturing [Product + Service] One-stop contract 30+ manufacturing solutions & consistently deliver YEARS OF SITES quality products EXPERIENCE Most Diversified and Trusted FMCG contract manufacturers for marquee brands Fle
Slide 13: Our Journey
Our Journey Commenced the merger of the powder detergent manufacturing Hyderabad unit into HFL (completed in 2019-20) Acquired a Mumbai-based shoe manufacturing unit Acquired more than 40% stake in ATC Beverages Private Ltd., Mysuru, engaged in the business of manufacturing and distribution of soft
Slide 14: Our Product Portfolio
Our Product Portfolio Most Diversified Contract Manufacturing Company in the Country Food & Beverages Home Care Personal Care Leather Hair Care Leather Shoes & Extruded Cereals & Snacks Fabric Care • Shampoo, Hair Oil & Hair Foods • Hair Gel & Hair Cream Accessories • Breakfast Cereals • Liquid Dete
Slide 15: Business Models
Business Models The entire manufacturing facility/plant is exclusively utilised for the Principal Company Dedicated Manufacturing The manufacturing facility is not entirely dedicated to a single Principal Company, but the capacity is shared by various companies for a longer period of agreement. Comp
Slide 16: Long term Relationships with major FMCG Brands
> ~==============~--- @_® F We have Long term Relationships with major FMCG Brands ~~ f Reckitt DANONe Benckiser ONE PlANET. ONE HEAlTH 1omos I~ GlaxoSmithKiine K 1malava HERBA L HEALTHCARE Gabof ~PEPSICO HECTOR ~ BOMBAY ~~.~.-..,... SHAVING COMP/\1'-JY BEVERAGES mar1co 1'l'C Lirn.iled •• •••• J\rVI
Slide 17: Experienced Board
Experienced Board Shrinivas Dempo | Chairman, Non-Executive Nikhil Vora | Non-Executive Director ▪ Shrinivas Dempo is the third-generation entrepreneur and chairman of ▪ Nikhil Vora is the founder and CEO of Sixth Sense Ventures Goa’s Leading business House, Dempo ▪ Nikhil was earlier the Managing D
Slide 18: Professional Management Team
Professional Management Team Mayank Samdani Ravindar Rathi Govind Singh Rawat Group CFO GM, Operations North GM, Operations South Chartered Accountant with expertise in the An Ops. & Mfg. professional with expertise A Mechanical Engineer with 30 years of area of Finance, Accounts, Audit, Legal & in
Slide 19: Certifications
> ~==============~--- Certifications @_® F ~ BRC FOOD CERTIFICATED ~ Foo S ety .Syrtem BRC ~GtOBAil Cert•fic tan 2000 STANOARDS 18
Slide 20: Manufacturing Facilities
Manufacturing Facilities HFL | JAMMU PLANT 19
Slide 21: State-of-the-Art Manufacturing: Jammu, Coimbatore
State-of-the-Art Manufacturing JAMMU COIMBATORE • Spread across 35,143 square meters of area at IGC II, SIDCO Samba • Spread across 85,000 square feet and the facility commenced production in December 2018 • Unit was acquired from Reckitt Benckiser (India) Pvt. Ltd. by the end of 2017 and commenced
Slide 22: State-of-the-Art Manufacturing: Hyderabad, Silvassa
State-of-the-Art Manufacturing HYDERABAD I SILVASSA I & II • This facility is engaged in the manufacturing of detergent powders • Unit boasts of a fully automated end-to-end material handling where we manufacture 70,000 tonnes of detergent powder for national brands Capacity: Powder: 70,000 TPA HYDE
Slide 23: State-of-the-Art Manufacturing: Puducherry, Mumbai
State-of-the-Art Manufacturing PUDUCHERRY MUMBAI • Facility was an acquisition by HFL of Ponds Exports Ltd. which is a subsidiary of Hindustan Unilever Ltd. in 2016-2017 • Manufactures Leather shoes and accessories • Unit was acquired as an on-going concern • Robust quality assurance system, excelle
Slide 24: State-of-the-Art Manufacturing: Goa, Mysuru
State-of-the-Art Manufacturing GOA MYSURU* • Plant is located at Usgaon, Ponda, that is spread across 52,625 square meters of area • Manufactures food products such as cereals, porridges and snacks • HFL acquired 44.5% stake in ATC Beverages Ltd. • Facility is equipped with the state-of-the-art twin
Slide 25: Future Growth Strategy
Future Growth Strategy HFL | COIMBATORE PLANT 24
Slide 26: Industry Opportunity is huge
Industry Opportunity is huge FMCG Market Size Personal Care Outsourced Manufacturing ~50% Opportunity Home / Health Care* Rs. 50,000 Crores - Rs. 1,00,000 Crores ~31% Company Estimates $103.70 Billion translates to Food & Beverages ✓ HFL is the most diversified and versatile contract manufacturing c
Slide 27: Multiple Levers for Growth
Multiple Levers for Growth E – Commerce GST Implementation Make in India Favourable Macro Factors Growing Consumer Demand Ease of Doing Business Evolving Regulatory Environment Increasing Rural Incomes Specialized Business Approach Cost Efficiencies Business approach by Brands Strategy to engage int
Slide 28: HFL is best placed to capitalize on the Growth Story
HFL is best placed to capitalize on the Growth Story One of the Largest Organized Management Expertise Largest Organized Management Player with decades of with over two decades of experience Player experience Expertise in contract manufacturing HFL’s Redefined Business Longer Term Relationships with
Slide 29: Barriers to Entry makes us even more Competitive
Barriers to Entry makes us even more Competitive Setting up Efficient allocation Manufacturing plant is of resources to capital intensive Skilled Labour Management fuel growth Logistics & Stringent Quality Control Regulatory & Increasing competitiveness Supply chain (QC) of Customers Environment in
Slide 30: Social Initiatives
Social Initiatives There is nothing more rewarding than giving back to the society and making a difference As a responsible Corporate Entity, we are committed towards the upliftment and development of the local communities we work with. We leverage our resources, experience and geographic spread, to
Slide 31: Thank You
Thank You Company : Investor Relations Advisor : Hindustan Foods Limited Strategic Growth Advisors Private Limited CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Mr. Vimal Solanki Mr. Shogun Jain / Mr. Jigar Kavaiya E: vimal.solanki@thevanitycase.com E: shogun.jain@sgapl.net / jigar.Kavaiya@s