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 strategy for growth,
product development, market position, expenditures and financial results, are
forward-looking statements. Since these are based on certain assumptions and
expectations of future events, the Company cannot guarantee that these are
accurate or will be realized. Actual results might differ materially from those
either expressed or implied in the statement depending on the circumstances.
Therefore the investors are requested to make their own independent
assessments and judgments by considering all relevant factors before making
any investment decision. The Company assumes no responsibility to publicly
amend, modify or revise any such statements on the basis of subsequent
developments, information or events.
Bring Home Health & Happiness
Disclaimer
2
Bring Home Health & Happiness 4
FY17 Highlights
Change in Logo of the Company.
Acquired Dairy Business of Reliance Retail Ltd.
Demerged Retail Undertaking to Future Retail.
Crossed Rs 1,800 crore revenue mark in Dairy vertical in FY17.
Value Added Products, which enjoy 2X EBITDA margins as against Liquid Milk, notched 23.47% of Dairy revenue.
Commissioned 1st Cattle Feed Plant with a capacity of 200 tons per day.
Commissioned 2nd 2.1 MW Wind Power Plant.
Bags a prominent award in Corporate Governance; won National Energy Conservation Award; CFO conferred CIMA award (100 Most Influential CFOs in India) and Dairy division CIO won The 100 most innovative CIO by The World CSR Day award.
Bring Home Health & Happiness 5
Overview of Business Verticals
Heritage Foods Limited (“Heritage”) is a leading corporate based out of Hyderabad and operates in the high-growth segments.
Two reporting divisions – Dairy and Renewable Energy.
One of the few private sector companies in India with a true Farm to Fork solution in dairy.
1870.10
144.89
2429.90
0
500
1000
1500
2000
2500
3000
Revenue EBITDA Capital Employed
Dairy (Rs Mn) - FY17
52.13 43.00
472.05
0
50
100
150
200
250
300
350
400
450
500
Revenue EBITDA Capital Employed
Renewable Energy (Rs Mn) - FY17
Bring Home Health & Happiness 6
Awards
The Company’s Dairy division has been awarded the 1st Prize ‘National Energy Conservation Award’ for the year 2016 by the Ministry of Power, Government of India for the effective energy conservation methods adopted.
Heritage Foods Limited has been declared as the Winner of 'Special Commendation' for ‘Golden Peacock Award for Excellence in Corporate Governance’ for the year 2016.
The Chief Financial Officer (CFO) of Heritage Foods Ltd, Mr. A. Prabhakara Naidu has been conferred an Award by the London-based Chartered Institute of Management Accountants(CIMA), there by joining the elite list of CIMA's ‘100 Most Influential CFOs’.
Mr. K.Rajababu, Head-Information Technology, Dairy Division of the Company is among those conferred with the ‘100 Most Innovative CIO of India’ by The World CSR day (www.indiasgreatest.com), Mumbai.
Bring Home Health & Happiness
Consolidated Financial Overview
7
58807925
900410961
1393416018
17220
20730
23806
2642969.79%
34.78%
13.62%
21.73%
27.12%
14.96%
7.51%
20.38%
14.84%11.02%
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FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Net Sales (Rs. in Mn.) & Growth %
-165
-34
440358
512
1011950
881
1365 1413
-2.81%
-0.43%
4.89%
3.27%
3.67%
6.31% 5.52%
4.25%
5.73%5.35%
-4.00
-2.00
0.00
2.00
4.00
6.00
8.00
-200
0
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FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
EBITDA (Rs. in Mn.) & EBITDA %
9
-357
5511
93
499453
282
554
668
-600
-400
-200
0
200
400
600
800
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
PAT (Rs. in Mn.)
Dairy Business Vertical
Bring Home Health & Happiness 8
486
738
563719
12191137
879
13721449
4.72%
6.70%
9.43%5.41%
5.55% 8.58%
7.43%
5.65%7.76%
0.00
2.00
4.00
6.00
8.00
10.00
12.00
0
200
400
600
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1200
1400
1600
FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
EBITDA (Rs. in Mn.) & EBITDA %
48515927
6883
860610940
12686 13282
1555917688
1870142.76%
22.18%
16.13%
25.03%27.12%
15.96%
4.70%
17.14%
13.69%
5.73%
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35.00
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45.00
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20000
FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Net Sales (Rs. in Mn.) & Growth %
1227 13221634 1512 1460 1523
1761 1869 1957
2430
24.04%
36.76%
45.17%
37.24%
49.25%
80.04%
64.54%
47.02%
70.09%
59.63%
0.00
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90.00
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FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017
Capital Employed (Rs. in Mn.) & ROCE %
Dairy : Liquid Milk
Bring Home Health & Happiness 9
In 1993 - 20,000 liters per day was milk collection. In 2017 – 10.43 lakh liters per day is milk collection. Average procurement cost is at Rs. 32.52 per liter Average selling price is at Rs. 37.37 per liter.
Dairy : Branded/Value Added Products
Bring Home Health & Happiness 10
Forayed into value added products in 2007. Products portfolio: Curd (around 77%), rest are in the following order: Ice Cream, Paneer, Flavored Milk, Sweets.
Turnover for FY15-Rs. 3042.00 mn, FY16-Rs. 3824.70 mn, FY17-Rs. 4389.50 mn
The Contribution of value added products in the total dairy revenue is 23.47% amounting to Rs 4389.50 mn in 2016-17.
3042.00 3824.70
4389.50
0
1000
2000
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4000
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FY15 FY16 FY17
Turnover (Rs. in Mn.)
Revenue from Value added Products
Revenue from Liquid Milk
Tota
l Dai
ry R
eve
nu
e
Rs.
in m
illio
n
2016-17
4389.50
14311.50
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
Dairy : Winning Trust
Bring Home Health & Happiness 11
• Facilitating loans 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 high quality cattle feed and fodder seeds;
• Helping to source good productive animals to farmers;
• Supply of milk analyzers for ensuring accurate measurement of milk quality.
• And ensuring punctual payment to farmers.
Parlours as Brand Outlets
Bring Home Health & Happiness 12
• Heritage Parlor is a Modern “Kirana” incubated and pioneered by Heritage.
• Currently there are 1680 parlors with an average shop area of 100 sq.ft.
• Vision is to nurture entrepreneurship and to enhance inclusive growth opportunities-Owned and managed by franchisees.
• Selling only Heritage range of products and authorized products/services.
• Only organized chain of parlors to be selling non-dairy products also.
• Milk & Milk Products, Ice Cream, Bread, Baked Products, FMCG Products, Staples, Fruits & Vegetables, Eggs, Public Telephone, and Mobile recharge coupons.
Dairy : Moving up Value Chain
Bring Home Health & Happiness 13
• Focus on own brand value added products -
Curd
Butter milk
Frozen Dessert/Ice cream • Consolidation in existing markets.
• Dairy Employee strength : 2,420
Demerged Retail Undertaking to Future Retail....
Bring Home Health & Happiness 14
Completed demerger process of Retail undertaking (operating 136 stores with 4.81 lakh sq.ft), Agri, and Bakery divisions to Future Retail Ltd
Retail operations which were started in year 2006, currently serves 24 Mn customers annually. Will hold 3.65% equity stake in Future Retail Ltd through fresh issuance of shares.
Integrates with Reliance Dairy, post acquisition…
Bring Home Health & Happiness 15
Acquired Dairy business of Reliance Retail Ltd. Reliance Dairy procurement was 1.76 Lakh Liters Per Day (LLPD) as on April, 2017 from over 2,400 villages across 10 states, had 30 Milk Chilling Centers(MCCs), and 17 Bulk Milk Coolers (BMCs).
Reliance Dairy transferred its 2 brands: Dairy Life and Dairy Pure.
Renewable Energy : Business Vertical
Bring Home Health & Happiness 16
• Turnover in FY2017 was Rs 52.13 mn. • Capital Employed for Renewable Energy division Rs 472.05 mn. • Heritage Foods Ltd has commissioned Distributed Captive Solar Power Plants at its 6 various locations/plants namely, (1) Bobbili packing Station (Andhra Pradesh), (2) Battiprolu packing Station (Andhra Pradesh), (3) Kallur packing Station (Telangana), (3) Sangavi packing Station (Maharashtra), (5) Vada Madurai packing Station (Tamil Nadu) and (6) Bangalore packing Station (Karnataka) with total capacity of 1.66KWp with key objective to optimize energy mix by use of clean & Green sources (Renewable) Energy sources to reduce carbon emissions and to secure energy at low cost. • The Company increased its Renewable Energy Capacity to 8.2MW with 2.4MW Solar Power, 1.66MW Distributed Solar power and 4.20MW Wind Power in the state of Andhra Pradesh, Telangana, Maharashtra, Tamil Nadu and Karnataka for the captive consumption of its Dairy plants.
Comparative Shareholding Pattern
Bring Home Health & Happiness 17
Shareholding pattern as on March, 2017; March, 2016 & March, 2015
39.90 39.90 40.03
12.98 9.25 6.31
47.12 50.85 53.67
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Promoters Institutions Non-Institutions