Heritage Foods Limited · NSE:HERITGFOOD
Heritage Foods — Investor Presentation (2014)
26 slides from Heritage Foods's investor presentation, 2014
Slide 1: Investor Presentation FY2014
Investor Presentation FY2014 1
Slide 2: Disclaimer
Disclaimer The release contains forward-looking statements, identified by words like ‘plans’, ‘expects’, ‘will’, ‘anticipates’, ‘believes’, ‘intends’, ‘projects’, ‘estimates’ and so on. All statements that address expectations or projections about the future, but not limited to the Company’s strateg
Slide 3: Overview of Business Verticals
Overview of Business Verticals Heritage Foods (India) Limited (“Heritage”) is a leading corporate based out of Hyderabad and operates in the high-growth Food and Retail business segments Four reporting divisions - Dairy, Retail, Agri, and Bakery Dairy (Rs. in Mn.) - FY 2014 Retail (Rs. in Mn.) -
Slide 4: About Founder
About Founder Heritage was founded by Mr. Nara Chandrababu Naidu in 1992 with an objective to assure remunerative prices to milk producers, who needed better marketing opportunities. Mr. Nara Chandrababu Naidu is currently the elected Chief Minister of Andhra Pradesh. He holds the record of bein
Slide 5: Mission & Vision
Mission & Vision Mission Bringing prosperity into rural families through Co-operative efforts and providing customers with hygienic, affordable and convenient supply of “Fresh and Healthy” food products Vision To achieve this by delighting customers with “Fresh and Healthy” food products, that a
Slide 6: Consolidated Financial Overview
Consolidated Financial Overview Net Sales (Rs. in Mn.) & Growth % 20000 80.00 18000 17220 69.79% 16018 70.00 16000 13934 60.00 14000 50.00 12000 10961 10000 9004 40.00 7925 34.78% 8000 27.12% 30.00 5880 6000 21.73% 20.00 4000 14.96% 13.62% 10.00 2000 7.51% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 F
Slide 7: Dairy Business Vertical
Dairy Business Vertical Net Sales (Rs. in Mn.) & Growth % 14000 13282 45.00 42.76% 12686 12000 10940 40.00 35.00 10000 8606 30.00 8000 6883 27.12% 25.03% 25.00 5927 6000 4851 20.00 22.18% 15.96% 15.00 4000 16.13% 10.00 2000 4.70% 5.00 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 EBITDA (R
Slide 8: Dairy : Liquid Milk
Dairy : Liquid Milk In 1997 - 20,000 liters per day was milk Particulars Liquid Milk Sales LPD collection. Andhra Pradesh 445,410 In 2014 – 8,33,000 liters per day is milk collection. Tamil Nadu 182,415 Average procurement cost is at Rs. 27.42 Karnataka 108,909 per liter Maharastra 40,467 Ave
Slide 9: Dairy : Branded Value Added Products
Dairy : Branded Value Added Products Forayed into value added products in 2007 Turnover (Rs. in Mn.) 2500 2280.10 Turnover for FY12-Rs. 1291.24 mn, 1743.35 2000 FY13-Rs. 1743.35 mn, FY14-Rs. 2280.10 mn 1500 1291.24 1000 500 0 FY12 FY13 FY14 Products portfolio: Curd (around 60%), rest are in th
Slide 10: Dairy : Geographical Presence
Dairy : Geographical Presence Production Plants : 1. Main Dairy Plant - Gokul 7. Bayyavaram 13. Sangvi Kasipentla Village Bayyavaram (V), Kasimkota (M), Vijayanagar Sangvi, Chittoor (Dt) AP.-517112 Vishakhapatnam Dist, AP Satara District, Maharashtr 2. Chittoor 8. Bobbili 14. Rai Sundarajapuram VIL,
Slide 11: Dairy : Winning Trust
Dairy : Winning Trust • Extending loan for the purchase of cattle through commercial banks; • Facilitating cattle insurance; • Conducting health camps for animals through mobile veterinary clinics at frequent intervals; • Supply of subsidized high quality cattle feed and fodder seeds; • Sourcing of
Slide 12: Parlours As Brand Outlets
Parlours As Brand Outlets • Heritage Parlor is a Modern “Kirana” incubated and pioneered by Heritage • Currently there are 1222 parlors with an average shop area of 100 sqft • Vision is to nurture entrepreneurship and to enhance inclusive growth opportunities-Owned and managed by franchisees • Selli
Slide 13: Dairy : Moving up Value Chain
Dairy : Moving up Value Chain • Focus on own brand value added products Curd Butter milk Frozen Dessert/Ice cream • Consolidation in existing markets • Expansion to new markets o Maharashtra o Delhi o Bhubaneswar 13
Slide 14: Retail Business Vertical
Retail Business Vertical Net Sales (Rs.in Mn.) & Growth % 3787 3266 48.04% 2990 2063 1072 B3.76% 0.67% Tass FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Capital Employed (Rs. in Mn.) 729 735 647 607 558 588 585 Fy2008 FyY2009 FyY2010 Fyv2011 Fyv2012 Fyv2013 Fyv2014 rath & Happiness
Slide 15: Retail : Highlights
Retail : Highlights • SSS (considering 74 comparable stores) stood at 14% in FY2014. • Number of Branches have grown by 7% and Average Bill Value is increased by 7% • 8% productivity growth in FY2014 on account of 0.44 lakhs increase total area. • Store Gross margin decreased by 59 bps to 21.11% and
Slide 16: Retail : Operational & Financial Metrics
Retail : Operational & Financial Metrics Particulars FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 No of stores 15 70 75 75 75 73 67 74 Total carpet area ('000 sq ft) 43 149 159 158 166 217 212 256 effective carpet area ('000 sq ft) 8 90 158 158 160 200 205 223 Avg stores sales (Rs/sq ft/m
Slide 17: Retail : Business Integration
Retail : Business Integration 17
Slide 18: Retail : Consolidation
Retail : Consolidation o 74 stores in Hyderabad, Chennai, and Bangalore o Total square feet size 2.50 lakh o Expected to breakeven at 4 lakh square feet size o To earn profits from FY16 onwards 18
Slide 19: Agri Business Vertical
Agri Business Vertical Net Sales (Rs. in Mn.) & Growth % 800 80.00 678 700 70.01% 70.00 600 60.00 500 50.00 399 400 302 326 40.00 37.90% 311 300 219 30.00 200 22.39% 20.00 100 2.98% 10.00 0 0.00% 0.00% 4.82% 0 0.00 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Capital Employed (Rs. in Mn.) 400 39
Slide 20: Agri : Highlights
Agri : Highlights • Pioneers in ― “Custom Farming” in retail industry. Working closely with farmers and providing assistance regarding Good Agricultural Practices Annual crop calendar Integrated Pest management Credit linkage Input supply Pre/post harvest management • Farmers reduce hand
Slide 21: Bakery Business Vertical
Bakery Business Vertical Net Sales (Rs. in Mn.) & Growth % 120 100.00% 100 80 60 41 37 40 27 31 32 12.90% 21.95% 20 0 0.00% 0 0.00% 3.13% 0 -10.81% -20 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 Capital Employed (Rs. in Mn.) 140 124 122 117 112 112 120 100 80 60 40 20 0 0 0 FY2008 FY2009 FY201
Slide 22: Bakery : Highlights
Bakery : Highlights • State-of-the-art bakery production facility • Provides backend production services for Heritage Fresh and Private Label • Manufactures a range of breads, puffs, pastries, puddings and custards • European equipment - spiral mixers, digitally controlled laminated dough lines, bre
Slide 23: Solar : Business Vertical
Solar : Business Vertical • Heritage Foods Ltd has in association with Mahindra EPC Services Private Limited has commissioned a 2.34 MWP Solar Power Project at IPH, Masjid Adavi Village, Mulugu Mandal, in Medak district near Hyderabad on September 29, 2013, under REC mechanism and to meet for the ca
Slide 24: Comparative Shareholding Pattern
Comparative Shareholding Pattern Shareholding pattern as on March, 2014; March, 2013 & March, 2012 120 100 80 44.25 56.62 57.44 % 60 0.70 0.69 0.70 9.34 40 2.66 1.84 20 40.03 40.02 45.71 0 FY2014 FY2013 FY2012 Promoters FII DII Non-Institutions 24
Slide 25: Economic Activity - Manpower
Economic Activity - Manpower Division Regular Jobs Dairy 1908 Retail 1820 Agri 91 Bakery 39 Total 3858 25
Slide 26: Thank you
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