Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — Q3 FY2021 Earnings Presentation
35 slides from Hindustan Foods's earnings presentation, Feb 12, 2021
Slide 1: Cover letter to BSE for investor presentation
®i) Hindustan Foods Limited A Vanity Case Group Company Registered Office: Office No.3, Level-2, Centri.um, Phoenix Mark~t City, 15, Lal Bahadur Shastri Road , Kurla (West), ~umba1, M.aharashtra, ln~1~. 400 070. Email: business@thevanitycase.com Webs1te: www.hmdustanfoodshmlted.com Tel. No. +91-22-6
Slide 2: Investor Presentation February 2021
HINDUSTAN FOODS LIMITED INVESTOR PRESENTATION February 2021 HOME CARE | FOOD & BEVERAGES | PERSONAL CARE | LEATHER | PEST CONTROL
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: Q3FY21 Overview
Q3FY21 Overview HFL | HYDERABAD PLANT 3
Slide 5: Key Developments
Key Developments Raw Material prices of certain products rose The Company has acquired land for the new quite significantly but the Company was able The Toilet Cleaning Liquid Plant in Silvassa has F&B project in UP. Project work has begun and to successfully pass on the increases to the ramped up t
Slide 6: Key Parameters
Key Parameters Rs. 345 crore Rs. 906 crore 0.91 73% growth YoY Debt to Equity Ratio GROSS BLOCK TOTAL REVENUES as on 31st December 2020 as on 31st December 2020 for 9MFY21 Rs. 213 crore Rs. 25 crore Rs. 11.89 61% growth YoY 40% growth YoY NETWORTH PROFIT AFTER TAX* EARNINGS PER SHARE as on 31st Dece
Slide 7: Capex Update
Capex Update Northern Region Silvassa Hyderabad Capex Rs. 125 Cr Capex 200203 Rs. 30 Cr : 202003 Capex Rs. 150 Cr Food & Beverage Home Care Liquid Home & Personal Care • Capex is under taken by the • First facility was set up and • The work for the said facility wholly owned subsidiary commenced com
Slide 8: Upgradation of Credit Rating
Upgradation of Credit Rating Credit Ratings – India Ratings (Ind-Ra) Size of Issue Rating Instrument Rating/Outlook (Rs in Cr) Term Loan 180 IND A / Positive Working Capital IND A / Positive / 27 Facilities IND A1 The Upgrade Reflects • Increased scale and profitability, underscoring strong executio
Slide 9: Q3 & 9M FY21 Standalone Result Highlights
Q3 & 9M FY21 Standalone Result Highlights Revenue (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax* (Rs. Crs.) +85% +49% +97% Q3 FY21 384.3 22.4 12.6 15.1 207.4 6.4 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Q3FY20 Q3FY21 Revenue (Rs. Crs.) EBITDA (Rs. Crs.) Profit after Tax* (Rs. Crs.) 9M FY21 +73% +52% +61% 905.8 5
Slide 10: Standalone Profit & Loss Statement – Q3 & 9MFY21
Standalone Profit & Loss Statement – Q3 & 9MFY21 Particulars (Rs. Crs.) Q3 FY21 Q3 FY20 Y-o-Y 9M FY21 9M FY20 Y-o-Y Total Revenue 384.29 207.42 85% 905.77 524.77 73% Cost of Goods Sold 334.78 166.90 766.73 413.87 Manufacturing & Operating Costs 14.56 14.48 41.75 40.09 Gross Profit 34.95 26.04 34% 97
Slide 11: Historical Standalone Financial Performance
Historical Standalone Financial Performance Rs in Cr Revenue EBITDA 906 57 60 773 +170.6% +169.7% 493 33 140 11 39 3 FY17 FY18 FY19 FY20 9MFY21 FY17 FY18 FY19 FY20 9MFY21 PAT Gross Block^ 25 345 23 309 +219.0% +180.5% 12 156 6 45 1 14 FY17 FY18 FY19 FY20 9MFY21* FY17 FY18 FY19 FY20 9MFY21 10 *PAT in
Slide 12: Message from Managing Director
Message from Managing Director Commenting on the Results, Mr. Sameer R. Kothari, Managing Director said, “2020 was a challenging year for each one of us, however with sharp decline in COVID-19 cases, improving mobility and renewed hopes on roll out of vaccine, has boosted the overall business enviro
Slide 13: HFL at a Glance
HFL at a Glance HFL | GOA PLANT 12
Slide 14: 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 Domestic and Inter
Slide 15: The Vanity Case Group
The Vanity Case Group 12 30+ Exclusive State of the ART R&D Lab Private Label Sites Years of 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 16: 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 17: 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 18: 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 19: Long term Relationships with major FMCG Brands
> ~==============~--- @_® F We have Long term Relationships with major FMCG Brands ~~ ., Reckitt DANONe cmam1* ONE PlANET. ONE HEAlTH Benckiser GlaxoSmithKiine HERBAL HEALTHCARE Gabof Jomos ~PEPSICO HECTOR :... BOMBAY ~~~._ SHAVING COM PI\ NY BEVERAGES mar1co I '1' ' Lirnited •• •••• • • • •••• ••••
Slide 20: 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 21: Professional Management Team
Professional Management Team Mayank Samdani Ravindar Rathi Govind Singh Rawat Group CFO GM, Operations North GM, Operations South Chartered Accountant with 18 years of An Ops. & Mfg. professional with expertise A Mechanical Engineer with 30 years of experience and expertise in the area of in develop
Slide 22: Certifications
> ~==============~--- Certifications @_® F ~ BRC FOOD CERTIFICATED ~ Food Safety Sys;tem Certification 22000 '- ?""""' 21
Slide 23: Manufacturing Facilities
Manufacturing Facilities HFL | JAMMU PLANT 22
Slide 24: 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 25: 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 26: 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 27: 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 28: Future Growth Strategy
Future Growth Strategy HFL | COIMBATORE PLANT 27
Slide 29: 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 30: 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 31: 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 32: 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 33: Multiple Levers of Growth
Multiple Levers of Growth Business approach Specialized Business Foster Innovation Asset-light Operating Approach Models by Brands Customers & Strategy to engage into Outsourcing Partners Strategy to pass on the core business activities work together to operational complexities and outsource develop
Slide 34: 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 35: Thank You
Thank You Company : Investor Relations Advisor : Hindustan Foods Limited Strategic Growth Advisors Private Limited CIN: L15139MH1984PLC316003 CIN: U74140MH2010PTC204285 Mr. Vimal Solanki Mr. Rahul Agarwal / Mr. Mandar Chavan E: vimal.solanki@thevanitycase.com E: rahul.agarwal@sgapl.net / mandar.Chav