Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Investor Presentation (October 2022)
38 slides from Heritage Foods's investor presentation, October 2022
Slide 1: Investor Presentation
Slide 2: Snapshot
2 Snapshot Fully Integrated Dairy Business Rich Legacy of 30 Years Highly Qualified and Experienced Leadership Wide Presence Across 11 States Team and Independent Board Strong Distribution Network with Strong Corporate Governance Standards Omni Channel Presence Net Debt Free +1.5 Mn Households Serve
Slide 3: Company Overview
3 Company Overview • Founded in 1992 with the objective to serve the farming community in India, Heritage Foods is today India’s one of the leading Dairy companies. Revenue (INR Mn) • Over the span of 3 decades, Heritage Foods has not only stayed true its values and mission but also created a divers
Slide 4: Key Milestones
4 Key Milestones Revamped the Heritage Launched brand in Silver Jubilee Year value-added products like Commissioned a 2.34 MW solar power plant Received Golden Peacock curd, lassi, buttermilk, Increased milk Bagged the First Processing Facility Buy back at Telangana to meet Award for Excellence in p
Slide 5: Eminent Board of Directors with Wide Ranging Expertise
5 Eminent Board of Directors with Wide Ranging Expertise Mr. N Srivishnu Raju, Non-Executive Independent Director He holds a Bachelor’s degree in Chemical Engineering from Osmania Mrs. Bhuvaneswari Nara, Vice Chairperson/Managing Director University. He is also Alumnus of the Harvard Business School
Slide 6: Strong Management Team with Deep Experience
6 Strong Management Team with Deep Experience Dr. Sambasiva Rao, President Mr. J Samba Murty, COO He is Post Graduate and Doctorate in Zoology. Served the He holds an MBA in Marketing and a Bachelor's in Science. Is state and central governments for about two decades as a the COO at Heritage and has
Slide 7: Certifications & Awards
7 Certifications & Awards Certifications Awards and Accolades CII National Energy Conservation Awards for FY 2020-21 § 1st Prize won by Gokul Plant, Charndragiri (M), Chittoor Dist-517101, Andhra Pradesh, India. § 2nd Prize won by Bayyavaram Plant, Bayyavaram(V), Visakhapatnam District- 531031, Andh
Slide 8: Business Model
8 Business Model What We Do Heritage’s integrated business model enables to provide end-to-end capabilities from procurement till distribution and marketing in a cost-efficient manner. The key components of the integrated business model are: Milk Procurement • Milk Procurement: Raw milk is procured
Slide 9: Geographical Footprint
9 Geographical Footprint Haryana Milk Procurement - 8 States Milk Products Sales - 11 States Milk Sales - 11 States Heritage Distribution Centres - 9 States Rai Telangana Maharashtra Kalluru Narketoally Sangvi Manor Karnataka Uppal Shamirpet Andhra Pradesh Yadavanahalli Sindhanur Tamil Nadu Pammaru
Slide 10: Robust Distribution Network
10 Robust Distribution Network Strengthening the brand through omni channel presence Retail Trade 0.13 Mn 27 Organized 16 E-Commerce Kirana Stores Retail Chains / 27 Organized Websites 0.13 Mn MRFs Retail Chains / Kirana Stores MRFs Heritage Owned Network 121 859 1,806 Heritage Exclusive Heritage TU
Slide 11: Technology Enabled
11 Technology Enabled Clapp: Clapp (stands for Customer Live Application) was initiated as a digital transformation for growth and innovation to streamline the indenting process while improving transparency and efficiency. The key focus of Clapp was to aid in streamlining sales and costs attributabl
Slide 12: Marketing Initiatives
12 Marketing Initiatives Various Digital campaigns were initiated for the launch and growth of products. We curated content Heritage Bytes is a digital consumer connect campaigns that are successful, engaging and gained initiative featuring regular blogs and videos recipe Marketing Heritage campaign
Slide 13: Q2-FY23 Digital Campaigns
13 Q2-FY23 Digital Campaigns Ghee Campaign: Ecom Reviews: Goodness of Heritage #MyHeritageMyPride Ghee is a product that has a strong association with festivities that are around the Ongoing activity till FY23 end. corner and is a key ingredient for sweets and other traditional recipes. The primary
Slide 14: Q2-FY23 Marketing Updates
14 Q2-FY23 Marketing Updates IDF Exhibition in Greater Noida Gluco Shakti Orange Launch in Hyderabad New Milk packets launch in Chennai - POSM Life Size Modak made of Heritage Vanilla Milk Packs Festival Arch Gate’s Deployment in Hyderabad Best chef contest among Societies
Slide 15: Business Overview
Business Overview Business Overview Heritage Foods Limited 15
Slide 16: Product Portfolio
16 Product Portfolio Milk (67%) Value Added Products (23%) Animal Nutrition (4%) Fat Products (5%) Heritage Nutrivet – Subsidiary Yogurt - Mamie Yova (0.1%) Ice-creams (1%) Heritage Novandie – Joint Venture * Percentage breakup of Revenue share as on FY22
Slide 17: Milk
17 Milk Fresh milk is the most consumed dairy product in India. It is also the most trusted source for essential nutrients for health. With the increasing population the consumption of milk is also on the rise. Health consciousness, dietary needs and rising living standard have also been major contr
Slide 18: Value Added Products
18 Value Added Products Curd: A value-added product with a selected culture of beneficial bacteria to impart thick, creamy, rich and glossy texture. Value Added Products Revenue (INR Mn) Butter Milk: Prepared from fresh and pure curd in processing plants with utmost care. There are different variant
Slide 19: Fat Products
19 Fat Products Cow Ghee: Cow Ghee is prepared from cow butter. It is golden yellow in colour, has a good aroma and is granular in texture. Cooking Butter: The unsalted cooking butter is made from fresh cream in processing plants with utmost care to ensure goodness. Fat Products Revenue (INR Mn) 1,3
Slide 20: Ice-Cream & Frozen Desserts
20 Ice-Cream & Frozen Desserts Tubs: Alpenvie Ice-Cream is made with nuts and fruits and is available in flavours such as Chocolate, Pineapple, Fruit Fusion, Pistachio, Butterscotch, Vanilla and Rajbhog. Bars: Bars are available in flavours such as Almond Crunch, Black Currant, Chocolate Overload, C
Slide 21: Group Companies: Built on a Strong Foundation
21 Group Companies: Built on a Strong Foundation Heritage Nutrivet – Subsidiary Heritage Novandie – Joint Venture Yo Pop Drinkable Yoghurt Stirred Fruit Yoghurt Natural French Yoghurt Heritage Nutrivet Ltd. (HNL) is a livestock feed and feed supplements company. The Company endeavours to provide cat
Slide 22: Recent Product Launches
22 Recent Product Launches August 2021 March 2022 June 2022 August 2021 June 2022 September 2022
Slide 23: Strategic Overview
Strategic Overview Strategic Overview Heritage Foods Limited 23
Slide 24: Heritage Strengths – The Backbone of Investment Rationale
24 Heritage Strengths – The Backbone of Investment Rationale Attractive Market Opportunity The global dairy industry continues to grow at low to mid single-digit rates on an annual basis. Operational Excellence & Manufacturing Expertise Highly Resilient & Diversified Best practices to maximize capac
Slide 25: Future Growth Strategy
25 Future Growth Strategy Increase Milk Procurement: By investing Aspire to be Nationally recognized brand: For healthy & prudently in village level milk collection infrastructure, bulk coolers, chilling centers. 1 5 fresh products while focusing on efficient capital management. Increase the share o
Slide 26: Environmentally Conscious
26 Environmentally Conscious The company is strongly committed to protect the environment by taking all suitable measures for its sustenance and improvement, with a goal is to safeguard the environment while continuing to grow as a 10.50 MW world-class dairy processor. Total Renewable energy v Herit
Slide 27: Socially Responsible
27 Socially Responsible The company believes that human resources are the most valuable assets, and prioritise employee development in order to achieve the company’s sustainability goals while recognising the responsibility to make conscientious efforts to make a valuable difference to the community
Slide 28: Strong Governance
28 Strong Governance Heritage Foods Ltd. is committed to establish and demonstrate high standards of corporate governance to protect the interest of shareholders, creditors, employees and all other stakeholders of the Company. It Believes in operating the business in an ethical and transparent manne
Slide 29: Industry Overview
Industry Overview Industry Overview Heritage Foods Limited 29
Slide 30: Dairy Industry Market
30 Dairy Industry Market Indian Dairy Market (Bn) All India Milk Production & Per Capita Availability Inter-State Variability in Milk Production & Per Capita Availability of Milk 1221 30,840 198.44 209.96 1118 165.4 176.35 187.75 904 14 AGR 155.49 799 % .9 C 568 615 31.86 269 240 13,174 390 406 427
Slide 31: Dairy Industry – Government Initiatives
31 Dairy Industry – Government Initiatives FDI – 100% allowed Schemes/ Programmes FDI Flows • Dairy Processing and Infrastructure Development Fund - Aims to provide • FDI permitted through automatic route for Animal Husbandry (including subsidized loan @6.5% to capital stressed milk cooperatives for
Slide 32: Financial Overview
Financial Overview Financial Overview Heritage Foods Limited 32
Slide 33: Historical Consolidated Income Statement
33 Historical Consolidated Income Statement Particulars (INR Mn) FY20 FY21 FY22 H1-FY23 Operating Income 27,259 24,731 26,813 16,371 Expenses 25,974 22,062 24,906 15,733 EBIDTA 1,284 2,669 1,907 638 EBIDTA Margins (%) 4.71% 10.79% 7.11% 3.90% Depreciation 501 462 522 273 Finance Cost 226 192 40 10 F
Slide 34: Historical Consolidated Balance Sheet
34 Historical Consolidated Balance Sheet Particulars (INR Mn) FY21 FY22 H1-FY23 Particulars (INR Mn) FY21 FY22 H1-FY23 Equity And Liability Assets Equity Share Capital 232 232 232 Non-Current Assets Property, Plant and Equipment 5,714 5,705 5,670 Reserve and Surplus 5,726 6,344 6,491 Capital WIP 157
Slide 35: Historical Consolidated Financial Performance
35 Historical Consolidated Financial Performance Revenue (INR Mn) & Gross Margins (%) EBITDA (INR Mn) & Margins (%) PAT (INR Mn) & Margins (%) 27,259 26,813 3000 2,669 2000 24,731 1,483 2500 1500 1,907 961 2000 1000 6.00% 16,371 263 1,284 500 3.58% 1.61% 1500 0 25.7% 22.3% 1000 10.79% 638 -500 FY20
Slide 36: Capital Market Data
36 Capital Market Data 1 Year Stock Performance up to 30th September, 2022 Market Data as on 30th September, 2022 20% Shareholder % Shareholding 10% 0% Face Value 5.0 -10% CMP 335.80 -20% -30% 52 Week H/L 565 / 250.3 -40% -50% Market Capitalization (Mn) 15,580.4 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Ma
Slide 37: Disclaimer
37 Disclaimer Heritage Foods Limited: The information contained in this presentation is provided by Heritage Foods (“the Company”), to you solely for your reference. This document is being given solely for your information and for your use and may not be retained by you and neither this presentation
Slide 38: Thank You
38 Thank You. Thank You
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