Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q3 FY2022 Earnings Presentation
40 slides from Hindustan Foods's earnings presentation, February 2022
Slide 1: Cover letter to BSE: Investor Presentation February 2022
([@) 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. +91-22-6
Slide 2: Hindustan Foods Limited Investor Presentation February 2022
HINDUSTAN FOODS LIMITED Investor Presentation February 2022 1
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: Q3FY22 Overview
Q3FY22 Overview Hyderabad | Liquid Detergent Plant 3
Slide 5: Key Developments
Key Developments HFL has acquired 100% stake in Reckitt Benckiser Scholl India (RBSIL) which marks HFL’s entry into fast growing OTC Healthcare and Wellness segment as a contract manufacturer. Registered as an EOU, the acquired facility is approved by The Medicines and Healthcare products Regulatory
Slide 6: Acquisition of Reckitt Benckiser Scholl India to expand Healthcare & Wellness Portfolio
Acquisition of Reckitt Benckiser Scholl India to expand Healthcare & Wellness Portfolio Overview ▪ HFL has signed a Share Purchase Agreement with Reckitt Benckiser India Pvt Ltd. to acquire the entire issued Share Capital of Reckitt Benckiser Scholl India Private Limited (RBSIPL) ▪ RBSIPL was incorp
Slide 7: Investment in AeroCare marks entry into Colour Cosmetics
Investment in AeroCare marks entry into Colour Cosmetics Overview ▪ HFL has acquired AeroCare Personal Products LLP in January 2022 ▪ The facility is situated at Silvassa and engaged in manufacturing of Colour Cosmetics like lipsticks, eye make-up, pressed powders and lip gloss; And also Oral Care,
Slide 8: Key Parameters
Key Parameters 1,448 crore Rs. 35.3 crore Rs. 401 crore Rs. 60% growth YoY 40% growth YoY PROFIT AFTER TAX GROSS BLOCK TOTAL REVENUES For 9MFY22 as on 31st Dec 2021 for 9MFY22 Rs. 260 crore Rs. 54.3 crore 0.93 67% growth YoY NETWORTH PROFIT BEFORE TAX Debt to Equity Ratio as on 31st Dec 2021 for 9MF
Slide 9: Capex Update
Capex Update Uttar Pradesh Capex Rs. 125 Cr • The Uttar Pradesh Ice Cream Project is progressing well, and installation of machines has commenced. • The company remains confident to start commercial production in Q4FY22 Food & Beverages Hyderabad Capex Rs. 150 Cr • The on-going softness in the FMCG
Slide 10: Q3 FY22 Standalone Result Highlights
Q3 FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) +36% +35% 523.41 30.14 384.29 22.41 Q3FY21 Q3FY22 Q3FY21 Q3FY22 Profit before Tax (Rs. Crs.) Profit after Tax* (Rs. Crs.) +48% +1% 19.47 12.71 12.56 13.19 Q3FY21 Q3FY22 Q3FY21 Q3FY22 # Includes Other Income * PAT includes exc
Slide 11: 9M FY22 Standalone Result Highlights
9M FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) +60% +43% 1,448.44 85.27 59.50 905.77 9MFY21 9MFY22 9MFY21 9MFY22 Profit before Tax (Rs. Crs.) Profit after Tax* (Rs. Crs.) +67% +40% 54.30 35.34 25.20 32.51 9MFY21 9MFY22 9MFY21 9MFY22 # Includes Other Income * PAT includes
Slide 12: Standalone Profit & Loss Statement – Q3 & 9M FY22
Standalone Profit & Loss Statement – Q3 & 9M FY22 Particulars (Rs. Crs.) Q3 FY22 Q3 FY21 Y-o-Y 9M FY22 9M FY21 Y-o-Y Total Revenue# 523.41 384.29 36.2% 1,448.44 905.77 59.9% Cost of Goods Sold 460.52 334.78 1,267.58 766.73 Manufacturing & Operating Costs 17.46 14.56 50.18 41.75 Gross Profit 45.43 34
Slide 13: Historical Standalone Financial Performance
Historical Standalone Financial Performance Rs in Cr Revenue# EBITDA 1,389 1,448 86 85 CAGR CAGR +144.3% +133.4% 57 773 493 33 140 11 39 3 FY17 FY18 FY19 FY20 FY21 9MFY22 FY17 FY18 FY19 FY20 FY21 9MFY22 PAT* Gross Block^ 36 35 401 375 CAGR CAGR 309 +168.7% 23 +127.5% 156 12 6 45 1 14 FY17 FY18 FY19
Slide 14: Message from Managing Director and Group CFO
Message from Managing Director and Group CFO Commenting on the Results, Mr. Sameer R. Kothari, Managing Director said, “I am pleased that the company reported its highest quarterly turnover and highest profit before tax. However, for me personally, the major highlight of the quarter was in the realm
Slide 15: HFL at a glance
HFL at a glance Goa | Baby Food, Extruded Cereals & Snacks 14
Slide 16: We Have The EDGE
We Have The EDGE The Brawn Behind Your Brands 13 Pioneers in FMCG Contract Manufacturing [Product + Service] One-stop contract 30+ manufacturing solutions & consistently deliver YEARS OF PLANTS quality products EXPERIENCE Most Diversified and Trusted FMCG contract manufacturers for Domestic and Inte
Slide 17: The Vanity Case Group
The Vanity Case Group 12 30+ State of the ART Exclusive Years of R&D Lab Private Label Sites Division Experience Wide-ranging Pioneers in New Products & Packaging Concept to Market Solutions F&B and Home Care Categories development experts Caters to Private Labels Domestic and Export Markets For Ret
Slide 18: Our Journey
Our Journey 2018-19 Commenced the merger of the powder detergent manufacturing Hyderabad unit into HFL 2017-18 (completed in 2019-20) 2015-16 Manufacture & Acquired a Mumbai-based shoe manufacturing unit Acquired Ponds Exports Ltd., supply agreement the shoe manufacturing unit Acquired more than 40%
Slide 19: Our Product Portfolio
Our Product Portfolio Most Diversified Contract Manufacturing Company in the Country Food & Beverages Home Care Personal Care Health & Wellness Leather & Sports Shoes Extruded Cereals & Fabric Care Hair Care ➢ Vitamins, Minerals & Leather, Sports & Knitted ➢ Shampoo, Hair Oil & Nutraceuticals Snacks
Slide 20: Business Models | How we do it
Business Models | How we do it Entire Dedicated Manufacturing The entire manufacturing facility is built-to-suit, exclusively utilised for the Principal Company Anchor-Tenant Manufacturing & Shared Manufacturing The manufacturing facility is not entirely dedicated to a single Principal Company, but
Slide 21: FMCG Partners all over India
FMCG Partners all over India .® rec k1tt DANONe cmam1* ONE PlANET. ONE HEAlTH TATA GlaxoSmithKiine HERBA L HEALTHCARE Gabor CONSUMER PRODUCTS ~PEPSICO Jomos BOMBAY SHAVING mar1co l TC Linlited COMPANY •• •••• Zv.dus ... •• • •·••••••• • • •• ......·. ~· Scholl J\rVIno Well ness w1pr~.~J;: •••••• ••
Slide 22: Experienced Board
Experienced Board Shrinivas Dempo Nikhil Vora Chairman, Non-Executive Non-Executive Director Third-generation entrepreneur & chairman of Goa’s Leading business House, Founder and CEO of Sixth Sense Ventures Dempo Nikhil was earlier the Managing Director and Head of Research at IDFC Received Postgrad
Slide 23: Certifications
Certifications ~· BRC FOOD CERTIFICATED ~ ~ Food S fety Syslem BRC GLOBAL ,.. Certif1 cation Z 2 DOD " STANIDARDS 22
Slide 24: Manufacturing Facilities
Manufacturing Facilities Jammu | Pest Control [Coils, Vaporizers & Aerosols] 23
Slide 25: 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 by the end of 2017 and commenced commercial production from 2
Slide 26: State-of-the-Art Manufacturing: Silvassa I, II & III
State-of-the-Art Manufacturing SILVASSA I & II SILVASSA III • Set up floor cleaner and toilet cleaner manufacturing facility in Silvassa • This facility is an acquisition of AeroCare Personal Products for leading home care brands with an investment of Rs. 30 crores in • Engaged in manufacturing of C
Slide 27: State-of-the-Art Manufacturing: Hyderabad I, II, Chennai
State-of-the-Art Manufacturing HYDERABAD I CHENNAI • 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 HYDERABAD II
Slide 28: 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 • Unit was acquired as an on-going concern • Manufactures Leather shoes and accessories • Commenced production in June 2018 • Robu
Slide 29: 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 30: Future Growth Strategy
Future Growth Strategy • • "* •• •• ., • • Coimbatore | Beverages [Tea & Coffee] 29
Slide 31: Evolution of Contract Manufacturing
Evolution of Contract Manufacturing Phase IV (The Future) Phase III (Present Times) Phase II • Global sourcing hub like Pharma generics (The 2000’s) Phase I • GST • Explosion of small brands who do not want to invest (The 1980’s) • One Country One Market in manufacturing facilities • Area-based rese
Slide 32: 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 33: Favourable Demographics of India ensures incessant growth in FMCG
Favourable Demographics of India ensures incessant growth in FMCG Young & Working Population • India’s large share of population is young and working; this gives a huge encouraging signs of sustainable growth in FMCG products in country Rising Nuclear Families • According to the reports, India is mo
Slide 34: India seeing huge headroom for FMCG growth
India seeing huge headroom for FMCG growth • 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, Dishwash Liquids, Ha
Slide 35: 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 36: 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 37: Multiple Levers of Growth
Multiple Levers of Growth Business approach Specialized Business Foster Innovation Asset-light Operating Approach by Brands Models Customers & Strategy to engage into Outsourcing Partners Strategy to pass on the core business activities work together to operational complexities and outsource develop
Slide 38: Building a Sustainable Future
Building a Sustainable Future • New factories have solar power plants installed overhead, and rainwater harvesting • Have begun installing briquette boilers to replace the traditional coal fired ones • Ensuring smart lights and air-conditioning, digital payments and signatures, minimal paper • Worki
Slide 39: Corporate Social Responsibility
Corporate Social Responsibility There is nothing more rewarding than giving back to the society and making a difference • As a responsible Corporate Entity, committed towards the upliftment and development of the local communities we work with. We leverage our resources, experience and geographic sp
Slide 40: Thank You
Company: Thank You Investor Relations Advisors: Hindustan Foods Limited Strategic Growth Advisors Pvt. Ltd. CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Vimal Solanki Rahul Agarwal / Vijay Goel vimal.solanki@thevanitycase.com rahul.agarwal@sgapl.net / vijay.goel@sgapl.net +91 9821438864 / +