Heritage Foods Limited

Heritage Foods Limited 106 - Ice creams/Frozen Dessert Ice cream today represents one of the fastest growing food segments in India. The healthy growth of the market can be attributed to numerous forces. The ice cream market in India is expected to grow at a CAGR of 17.3% during 2021-2026. Fat Products - Ghee Ghee, which is widely used in Indian cooking, is the pure butter fat left over after the milk solids and water are removed from butter. It is very fragrant with a rich taste and represents the second largest consumed dairy product in India, after liquid milk. It is expected that the ghee market in India to exhibit strong growth during 2021-2026. - Butter The Heritage Butter is made from best quality fresh cream and contains no added ingredients other than salt. Manufactured in state-of-the-art processing plants with utmost care to ensure goodness. It is expected that the table butter market in India to grow at a CAGR of 19% during 2021-2026. - Cream The Indian cream market exhibited strong growth during 2015-2020. Cream is a dairy product which is used to give a smooth texture and consistency to food products. Nowadays, it is widely used in the preparation of various dishes, desserts and beverages such as ice-creams, salads, sweet meals, tea, co ff ee, etc. It is expected that the Indian cream market to grow at a CAGR of around 15% during 2021-2026. New Products Launched During the period under review the company has launched the following new products - Immunity boosting Milk-in four variants: Turmeric, Ginger, Ashwagandha and Tulsi - A2 Milk - Mozzarella and processed Cheese - Cool Cafe drink (Cold Co ff ee) - Fresh Cream - 4 Cone ice-cream variants (Double Chocolate & Butterscotch variant) Distribution The Company has a strong distribution network ensuring availability of its products across the country. Heritage Parlours and Heritage Distribution Centres are franchise operated outlets and distribution wings selling the entire range of the Company’s products. The Company considers every distribution outlet as an ambassador of Heritage brand. It ensures delivery of quality products and services to consumers through these distribution arms. As on March 31, 2021, the Company has 6,223 agents/distributors, 858 Heritage parlours and 32 Heritage distribution centers in 11 states across India. Empowering Farmer Community The core of the Company’s operations is growth and welfare of the farmer community. The Company is on a continual quest to empower the farmers by procuring milk at mutually bene fi cial costs, encouraging best practices around the quality and quantity of milk and providing support services to help them improve their milk yields by organising free veterinary check- ups and vaccination drives for the cattle. Extending farm loans and cattle insurance and providing nutritional livestock feed at subsidized rates are other signi fi cant steps adopted by the Company. All these interventions have enabled the Company to forge strong relationships with farmers. REVIEW OF OPERATIONS The Company has handled the business very e ff ectively during the period of COVID-19 outbreak. Tangible Results: Revenue from operation ( ` in Million) EBIDTA ( ` in Million) PAT ( ` in Million) FY21 24,070 2,565 # 1,452 # FY20* 26,811 (769) # (1,600) # FY19* 24,824 1,924 834 FY18* 23,440 1,333 604 FY17* 18,714 1,490 2,926 * Figures are from continuing operations #EBITDA and Pro fi t after Tax is after considering the Fair value gain on FVTPL equity shares and loss due to changes in derivative liabilities of Investments in FRL.