Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Investor Presentation (November 2022)
47 slides from Hindustan Foods's investor presentation, November 2022
Slide 1: Hindustan Foods Limited Investor Presentation November 2022
HINDUSTAN FOODS LIMITED NSE Ticker: HNDFDS INVESTOR PRESENTATION NOVEMBER 2022 BSE Ticker: 519126
Slide 2: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 2
Slide 3: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 3
Slide 4: Pioneer in the FMCG Contract Manufacturing Space
PIONEER IN THE FMCG CONTRACT MANUFACTURING SPACE We have positioned ourselves as a diversified FMCG contract manufacturer One of the largest Diversified product SHAREHOLDING PATTERN* organized FMCG contract categories across F&B#, personal manufacturer care, home care, etc 16.97% 5.59% 0.03% 6.04% 3
Slide 5: Evolution of HFL as One of India's Largest FMCG Contract Manufacturer
EVOLUTION OF HFL AS ONE OF INDIA’S LARGEST FMCG CONTRACT MANUFACTURER ▪ Started as a JV between Glaxo ▪ Investment from Sixth Sense ▪ Investment from Convergent, ▪ Acquired 100% stake in India Ltd & Dempo Group Ventures Sixth Sense Ventures and Reckitt Benckiser Scholl India ▪ Started manufacturing
Slide 6: Long-Standing Relationships with Marquee Clientele
LONG-STANDING RELATIONSHIPS WITH MARQUEE CLIENTELE… WIDE ASSORTMENT CATERING TO FMCG & D2C BRANDS, E-COMMERCE PLAYERS AND START-UPS 6
Slide 7: …And Touching Millions of Lives Everyday
…AND TOUCHING MILLIONS OF LIVES EVERYDAY Carbonated Drinks Beauty & Hot Beverages Baby Food Ice Cream & Juices Personal Care Energising Delivering healthy baby Refreshing Making Pleasuring 4 Mn+ food to 100,000 2Mn 1Mn tea/coffee lovers daily 50,000 families per day women & men look and Ice cream lo
Slide 8: Numbers Defining Our Expertise
NUMBERS DEFINING OUR EXPERTISE Rs. 2,040 cr 62.6% Rs. 113 cr 5.5% Revenue from ops Revenue CAGR EBITDA EBITDA Margin FY22 (FY20-FY22) (FY22) (FY22) Rs. 45 cr 2.2% Rs. 633 cr 5,580* PAT PAT Margin Gross Block Total Manpower (FY22) (FY22) (FY22) (November 2022) * Direct & Indirect 8
Slide 9: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 9
Slide 10: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS 1 2 3 Attractive industry dynamics India’s largest FMCG contract Long standing relationships with presents huge headroom for manufacturer with diversified a growing client base growth and predictable business model 4 5 6 Experienced promoters Manufacturing capabilities supp
Slide 11: Unearthing the Potential of the FMCG Industry's Opportunity & Size
1 UNEARTHING THE POTENTIAL OF THE FMCG INDUSTRY’S OPPORTUNITY & SIZE 10% PERSONAL CARE FMCG Growth Rate in India ~50% FMCG Market Size USD 104 Billion translates to HOME / HEALTH CARE Rs. 8 Lakh Crores ~31% India has low FMCG per capita consumption even as compared to other emerging nations like Ind
Slide 12: Contract Manufacturing – All Set for Exponential Growth Ahead
1 CONTRACT MANUFACTURING – ALL SET FOR EXPONENTIAL GROWTH AHEAD • India has low FMCG per capital consumption even as compared to other emerging nations like Indonesia, China, Philippines, Thailand • India has low penetration in many FMCG categories like MFD, face wash, body lotions, washing liquids,
Slide 13: Our Differentiated Business Models Defining Our Capabilities
2 OUR DIFFERENTIATED BUSINESS MODELS DEFINING OUR CAPABILITIES Dedicated Anchor-Tenant Private Label Manufacturing Manufacturing & Shared Manufacturing Manufacturing The entire manufacturing facility, under The manufacturing facility, under this Under this model, HFL owns the product this model, is
Slide 14: Predictable Business Model Ensuring Sustainable Growth
2 PREDICTABLE BUSINESS MODEL ENSURING SUSTAINABLE GROWTH Key Factors Hindustan Foods’ positioning Predictability 1 ▪ Currently majority of revenues come from dedicated Multiple Business Models Predictable business model that manufacturing with Focus on Dedicated emerged out stronger from the ▪ Typic
Slide 15: Long Term Partnerships with Stable Yet Growing Marquee Client Base
3 LONG TERM 3 PARTNERSHIPS WITH STABLE YET GROWING MARQUEE CLIENT BASE All set to leverage its client relationships across the consumer ecosystem Pushing Increasing wallet Private label share across key solutions to clients new age brands Vintage FMCG Brands across other Recent Additions and Relatio
Slide 16: Geographically Distributed Decentralised Manufacturing Facilities
4 GEOGRAPHICALLY DISTRIBUTED → DECENTRALISED MANUFACTURING FACILITIES Jammu Pest Control Lucknow* 1250 Mn PA OUR CERTIFICATIONS Ice Cream & Frozen Desserts 15,000,000 litres PA DEFINING OUR QUALITY Silvassa III# Personal Care 3,500 TPA Silvassa I & II Surface Cleaning & Toilet Cleaning 20,000 TPA Hy
Slide 17: Our Wide-Range of Offerings Defining Our Abilities (1/2)
4 OUR WIDE-RANGE OF OFFERINGS DEFINING OUR ABILITIES (1/2) PERSONAL CARE Shampoo, Hair Oil & Hair Foods Breakfast Cereals Hair Care Hair Gel & Hair Cream Instant Porridges Rice Crispies FOOD & BEVERAGES Instant Mixes Talcs, Shaving Cream Soups & Soup Powder Hand Wash Liquid Extruded Cereals & Spices
Slide 18: Our Wide-Range of Offerings Defining Our Abilities (2/2)
4 OUR WIDE-RANGE OF OFFERINGS DEFINING OUR ABILITIES (2/2) BEAUTY & MAKE UP Coils Lipstick, Lip Colour PEST CONTROL Aerosols Lip Crayon, Lip Paint Beauty & Liquid Vaporizer Chap Stick Makeup Mosquito Mats Pressed/Compact Powders Pest Control Activ Cards Eye Makeup Blush-on Vitamins, Minerals & Nutra
Slide 19: For Catering the Complex Product Categories
4 FOR CATERING THE COMPLEX PRODUCT CATEGORIES LET US LOOK AT A FEW CASES IN CONTENTION Supply Chain & Procurement Manufacturing & Process Complexities Complexities E.g. Cosmetics E.g. Footwear E.g. Ice-Cream E.g. During the Covid-induced o Handling 250+ Stock o Complex integrated supply chain – Comp
Slide 20: Demonstrated Track Record of Acquisitions
5 DEMONSTRATED TRACK RECORD OF ACQUISITIONS 2022-23 2021-22 2019-20 ▪ Acquired 100% stake in Reckitt Benckiser Scholl India Pvt Ltd ▪ Acquired 100% in AeroCare 2018-19 Personal Products LLP, ▪ Enabled entry into over-the- dedicated manufacturer for counter (OTC) health and wellness ▪ Acquired 40% le
Slide 21: Our Competent & Proficient Team | Board of Directors
6 OUR COMPETENT & PROFICIENT TEAM | BOARD OF DIRECTORS SHASHI KALATHIL SAMEER KOTHARI GANESH ARGEKAR Chairman, Independent Director Managing Director Executive Director 28+ years of operating experience Professional with over 20 years of Received a degree in B.Sc. (Chemistry) across consumer product
Slide 22: Our Competent & Proficient Team | Board of Directors
6 OUR COMPETENT & PROFICIENT TEAM | BOARD OF DIRECTORS NIKHIL VORA SHRINIVAS DEMPO HONEY VAZIRANI Non-Executive Director Non-Executive Director Woman Independent Director Third-generation entrepreneur & Served as the Vice President of Founder and CEO of Sixth Sense Chairman of Goa’s leading business
Slide 23: Our Competent & Proficient Team | Key Management
6 OUR COMPETENT & PROFICIENT TEAM | KEY MANAGEMENT DEMONSTRATING EXECUTION AGAINST THE KEY STRATEGIC PRIORITIES MAYANK SAMDANI SANJAY SEHGAL RAVINDER RATHI CFO President, Healthcare and Wellness GM, Operations (North) A Chartered Accountant with 19 A B.Tech Graduate in Chemical He has over 23 years
Slide 24: Our Competent & Proficient Team | Key Management
6 OUR COMPETENT & PROFICIENT TEAM | KEY MANAGEMENT DEMONSTRATING EXECUTION AGAINST THE KEY STRATEGIC PRIORITIES ASHWINI AGRAWAL PRASAD KALI ROBIN D’SOUZA GM, Operations (West) GM, Projects GM, Business Development Has a degree in mechanical Has a degree in chemical engineering A Commerce Graduate wi
Slide 25: Resulting Into….
Resulting Into…. 25
Slide 26: A Force in Contract Manufacturing
A FORCE IN CONTRACT MANUFACTURING From From From Limited Operations 1 Factory to 1 Category to the Entire to One-Stop-Shop FMCG Gamut* 17 Factories Catering to the Entire FMCG Value Chain From From From Contract 1 Customer to Manufacturing to have 1 Business Model 50+ Customers Developed the Ability
Slide 27: Created a Strong Moat to Stay Ahead of Competition
CREATED A STRONG MOAT TO STAY AHEAD OF COMPETITION High Switching Costs Long Term agreements with domestic & international clients coupled with time Capital Intensive Nature intensive on-boarding procedures Huge Capex required to set up modern provide limited scope to switch vendors manufacturing an
Slide 28: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 28
Slide 29: Strategy for Next Phase of Growth
STRATEGY FOR NEXT PHASE OF GROWTH 1 2 3 4 5 Pursue strategic Expanding into new Focus on scaling Focus on expanding Channelising the acquisitions to product segments exports → India well higher margin benefits of backward develop scale and placed to cater to business models → integration capabilitie
Slide 30: String of Pearls Acquisition Strategy
STRING OF PEARLS ACQUISITION STRATEGY TO DIVERSIFY OUR PORTFOLIO THROUGH M&A AND LEVERAGE THE CONSOLIDATION PHASE Rationale for acquisitions • Acquiring smaller units with limited management bandwidth & high-growth potential • Acquiring our MNC clients’ existing manufacturing units and continuing to
Slide 31: Strategic Acquisitions and Expanding into New Segments
STRATEGIC ACQUISITIONS AND EXPANDING INTO NEW SEGMENTS • Deepening and broadening expertise and offerings ▪ Acquired businesses have helped Cross Selling to Comprehensive in diversification of offerings • Expand offerings across business Existing Clients Offerings lines and add geographical ▪ Enabli
Slide 32: Focus on Scaling Exports – India Well-Placed to Cater Global Demand
FOCUS ON SCALING EXPORTS → INDIA WELL-PLACED TO CATER GLOBAL DEMAND India FMCG Export Trend (USD bn) Macro-level Growth Drivers Make in India • Initiative is to attract investments from across the 13.3 globe and strengthen India’s manufacturing sector 11.5 11.8 11.5 11.4 10.4 • As a part of the poli
Slide 33: Focus on Expanding Higher Margin Business Models
FOCUS ON EXPANDING HIGHER MARGIN BUSINESS MODELS Anchor-Tenant Manufacturing & Shared Manufacturing Minimal Client Dependency leading to diversified revenue base ▪ Not entirely dedicated to 1 principal and facilities are shared by various Ability to serve multiple clients at a single point in time c
Slide 34: Channelising the Benefits of Backward Integration
CHANNELISING THE BENEFITS OF BACKWARD INTEGRATION Currently, HFL procures raw materials like Oleo chemicals, Surfactants etc. from outside. In the packaging material space, plastic containers, flexible laminates, corrugated boxes, printed cartons etc. are procured from outside. This will help us sav
Slide 35: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 35
Slide 36: Our Growth Trajectory Defining Our Strengths
OUR GROWTH TRAJECTORY DEFINING OUR STRENGTHS Revenue From Operations (Rs. in Crore) EBITDA & EBITDA Margin (Rs. in Crore) 113 2,040 7.2% 7.1% 6.6% 88 80 1,407 1,260 6.3% 6.4% 55 5.5% 772 32 492 139 10 FY18 FY19 FY20 FY21 FY22 H1 FY 23 FY18 FY19 FY20 FY21 FY22 H1 FY23 PAT & PAT Margin (Rs. in Crore)
Slide 37: The Agenda
Introduction Who We Are & What We Do Contents of the Presentation Key Investment Highlights Long-Term Earnings Compounder The Agenda Our Growth Strategy Initiatives For Future Growth Financial Highlights Past Financial Performance Annexures 37
Slide 38: Being Responsible Towards the Environment
BEING RESPONSIBLE TOWARDS THE ENVIRONMENT Installing solar power plants overhead and rainwater harvesting at new factories Installing briquette boilers to replace the traditional coal-fired ones Focusing on the usage of smart lights and air-conditioning, digital payments and signatures, and ensuring
Slide 39: Fulfilling Through Socially Impactful Initiatives
FULFILLING THROUGH SOCIALLY IMPACTFUL INITIATIVES 1 2 3 4 5 The CSR vision of the We aim to address education, We have pledged to channel We continue touching several We are contributing towards Company is to become the health & sanitation, our CSR towards the Girl lives through our social cancer ca
Slide 40: Balance Sheet Summary (1/2)
BALANCE SHEET SUMMARY (1/2) Particulars (INR crs) As at 30 September, 2022 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020 Non-current assets Property, plant and equipment 514.9 394.6 300.4 248.7 Capital work-in-progress 22.9 87.2 53.5 25.6 Right of Use assets 32.4 32.3 6.9 - Goodwill
Slide 41: Balance Sheet Summary (2/2)
BALANCE SHEET SUMMARY (2/2) Particulars (INR crs) As at 30 September, 2022 As at March 31, 2022 As at March 31, 2021 As at March 31, 2020 Equity And Liabilities Equity Equity share capital 22.5 22.5 21.2 21.2 Other equity 315.5 281.6 233.2 165.8 Total equity 338.0 304.1 254.4 187.0 Liabilities Non-c
Slide 42: Profit & Loss Statement Summary
PROFIT & LOSS STATEMENT SUMMARY Particulars (INR crs) FY2023 (6M) FY2022 FY2021 FY2020 Income Revenue from operations 1,259.8 2,040.1 1,407.2 771.9 Other income 2.5 3.7 2.6 1.2 Total Income 1,262.3 2,043.8 1,409.8 773.1 Expenses Cost of material consumed 1,081.3 1,802.5 1,199.9 648.6 Purchase of sto
Slide 43: Cash Flow Statement Summary
CASH FLOW STATEMENT SUMMARY Particulars (INR crs) FY2023 (6M) FY2022 FY2021 FY2020 Cashflows from operating activities Restated Profit/ (Loss) before tax 48.2 71.5 52.4 33.8 Adjustments for : Depreciation and amortization expense 18.1 24.5 19.4 11.3 Interest on borrowing 13.2 19.6 18.2 10.9 Interest
Slide 44: Cash Flow Statement Summary
CASH FLOW STATEMENT SUMMARY Particulars (INR crs) FY2023 (6M) FY2022 FY2021 FY2020 Cashflows from investing activities Acquisition of property plant and equipment (net of capital creditors and including capital advances) (51.4) (140.1) (80.3) (128.1) Bank balances other than cash and cash equivalent
Slide 45: Our Accolades Defining Our Achievements
OUR ACCOLADES DEFINING OUR ACHIEVEMENTS HFL was honoured with two awards at Fortune India’s The Next 500 Breaking New Frontiers event – [1] The best performing emerging company in the FMCG sector and [2] Rising Star, in 2022 45
Slide 46: Safe Harbour
SAFE HARBOUR This presentation has been prepared by and is the sole responsibility of Hindustan Foods Limited (the “Company”). By accessing this presentation, you are agreeing to be bound by the trailing restrictions. This presentation does not constitute or form part of any offer or invitation or i
Slide 47: Thank You
> TRANK YOU ;
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