Hindustan Foods Ltd. · NSE:HNDFDS
Hindustan Foods — H1 FY2022 Earnings Presentation
40 slides from Hindustan Foods's earnings presentation, Nov 12, 2021
Slide 1: Hindustan Foods Limited - Covering letter to BSE
®£) 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. +91-2
Slide 2: Hindustan Foods Limited Investor Presentation November 2021
HINDUSTAN FOODS LIMITED Investor Presentation November 2021 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: Q2FY22 Overview
Q2FY22 Overview >> @£) Hyderabad | Liquid Detergent Plant 3
Slide 5: Key Developments
Key Developments The Uttar Pradesh project is Further to the announcement of The company has started The Hon'ble NCLT Mumbai progressing well, and the setting up of the Health and work on setting up a new Bench, in its hearing held on installation of machines has Wellness division, the Board has fac
Slide 6: Key Parameters
Key Parameters 925 crore Rs. Rs.22.6 crore Rs. 396 crore 77% growth YoY 79% growth YoY PROFIT AFTER TAX GROSS BLOCK TOTAL REVENUES For H1FY22 as on 30th Sept 2021 for H1FY22 Rs. 247 crore Rs. 34.8 crore 1.0x 80% growth YoY NETWORTH PROFIT BEFORE TAX Debt to Equity Ratio as on 30th Sept 2021 for H1FY
Slide 7: Capex Update
Capex Update New Capex Uttar Pradesh Hyderabad Rs. 130 Cr Capex Rs. 125 Cr Capex Rs. 150 Cr Health & Wellness and Food & Beverages Home & Personal Care Color Cosmetics • Capex is under taken by the wholly • The work for the said facility had • The Board has authorised the owned subsidiary ‘HFL Consu
Slide 8: Q2 FY22 Standalone Result Highlights
Q2 FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) +46% +28% 467.08 28.29 22.04 319.14 Q2FY21 Q2FY22 Q2FY21 Q2FY22 Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) +39% +38% 17.68 11.50 12.72 8.35 Q2FY21 Q2FY22 Q2FY21 Q2FY22 # Includes Other Income 7
Slide 9: H1 FY22 Standalone Result Highlights
H1 FY22 Standalone Result Highlights Revenue# (Rs. Crs.) EBITDA (Rs. Crs.) +77% +49% 925.03 55.13 37.09 521.48 H1FY21 H1FY22 H1FY21 H1FY22 Profit before Tax (Rs. Crs.) Profit after Tax (Rs. Crs.) +80% +79% 34.83 22.63 19.32 12.64 H1FY21 H1FY22 H1FY21 H1FY22 # Includes Other Income 8
Slide 10: Standalone Profit & Loss Statement – Q2 & H1 FY22
Standalone Profit & Loss Statement – Q2 & H1 FY22 Particulars (Rs. Crs.) Q2 FY22 Q2 FY21 Y-o-Y H1 FY22 H1 FY21 Y-o-Y Total Revenue# 467.08 319.14 46.4% 925.03 521.48 77.4% Cost of Goods Sold 405.55 265.63 807.06 431.95 Manufacturing & Operating Costs 17.31 17.20 32.72 27.19 Gross Profit 44.22 36.32
Slide 11: Standalone Balance Sheet
Standalone Balance Sheet Particulars (Rs. Crs.) 30-Sep-21 31-Mar-21 Particulars (Rs. Crs.) 30-Sep-21 31-Mar-21 Non-Current Assets 352.80 340.34 Equity 247.09 224.42 Property, plant and equipment 303.70 263.40 Equity share capital 21.20 21.20 Capital work-in-progress 23.96 52.81 Other equity 225.89 2
Slide 12: Summary of Standalone Cashflows
Summary of Standalone Cashflows Particulars (Rs. Crs.) 30-Sep-21 30-Sep-20 Operating profit before working capital changes 54.33 36.46 Changes in working capital -42.44 -23.10 Cash generated from operations 11.89 13.37 Direct taxes paid (net of refund) 8.37 6.71 Net Cash from Operating Activities (A
Slide 13: Historical Standalone Financial Performance
Historical Standalone Financial Performance Rs in Cr Revenue# EBITDA 1,389 86 CAGR CAGR +144.3% 925 +133.4% 57 55 773 493 33 140 11 39 3 FY17 FY18 FY19 FY20 FY21 H1FY22 FY17 FY18 FY19 FY20 FY21 H1FY22 PAT Gross Block^ 36 396 375 CAGR CAGR 309 +168.7% 23 23 +127.5% 156 12 6 45 1 14 FY17 FY18 FY19 FY2
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, “It has been a stable quarter for the company. The financial performance was on track and as per expectations. I am pleased about the merger process of Avalon Cosmetics & ATC Bevera
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 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 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 2017-18 Commenced the merger of the powder detergent manufacturing Hyderabad unit into HFL 2015-16 (completed in 2019-20) Manufacture & Acquired Ponds Exports Ltd., supply agreement the shoe manufacturing unit Acquired a Mumbai-based shoe manufacturing unit with Reckitt for 2015-
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 & Knitted Shoes Pest Control Extruded Cereals & Fabric Care Hair Care ➢ Vitamins, Minerals & Leather & Knitted Shoes ➢ Liquid Vaporizer ➢ Shampoo, H
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: We have Long term Relationships with major FMCG Brands
We have Long term Relationships with major FMCG Brands >> @£) .® rec k1tt DANONe ON€ PLANH. ON€ H€ALTH cmam1* TATA GlaxoSmithKiine HERBAL HEALTHCARE Gabo · CONSUMER PRODUCTS ~PEPSICO HECTOR BEVERAGES 1omos {IIQ - BOMBAY SHAVING COMPANY mar1co ITC Lintited J\fVIOD •• ••• .. • • •• • . . .. . • • • ••
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: 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 24: Certifications
Certifications >> @£) ~ BRC FOOD CERTIFICATED ~ ~ Food Safety System BRC ,. Certification Z 2 000 ......., GLQB,Al STANIDARDS 23
Slide 25: Manufacturing Facilities
Manufacturing Facilities >> @£) Jammu | Pest Control [Coils, Vaporizers & Aerosols] 24
Slide 26: 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 27: 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 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 Player with decades of Management 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 / +