Heritage Foods Limited

Weathering challenges A long and winding journey was embarked with moments of glory and despair, but Heritage managed to not just survive, but thrive. We steered the tough environment by further fortifying our strengths and leveraging newer opportunities. Besides protecting our current business base, we geared up to make the organization more e ffi cient to take on the short- term challenges. Being a responsible organization, we implemented safety measures to ensure the well-being of our employees. We also assured our consumers an uninterrupted supply of milk and milk products through home delivery, and leveraged the e-Commerce channel. Today, Heritage is one of India’s dairy companies, enjoying the respect of more than 0.3 million strong farmer community, engaging in milk procurement of 1.3 million liters per day. Key industry highlights For more than two decades, India has been the largest milk producer country in the world. During FY 2019-20, the nation produced 198.4 million tons (MT) of milk, about 22% of the world’s total milk production. India’s milk production grew at a CAGR of 4.5% over the last 20 years, as against the world’s milk production which grew by a CAGR of around 2%. During the last six years, India’s milk production has been growing by 35.61%. With India being billed as one of the most attractive global opportunities from a consumption perspective, the dairy sector is projected to keep witnessing a larger quantum of private investment. Rising disposable incomes, growing consumer preference for branded and value-added milk and milk products, and increased awareness of nutrition is driving demand for dairy products in India. As per a study on the demand for milk conducted by the National Dairy Development Board (NDDB), the estimated demand for FY 2030 at an all- India level will be 266.5 million liters per day. The rural sector has an estimated share of 57% in total consumption. The per capita consumption in urban areas (592 ml) remains higher than the rural areas (404 ml) even in the FY 2030 projections. Year in review Before we proceed to talk about our performance during the fi nancial year, we are extremely sad to share with you the sad demise of our erstwhile chairperson Shri. Devineni Seetharamaiah, who left for heavenly abode on July 19, 2020. He was credited to have imbibed the best governance standards within the Company. This been a huge irreplaceable loss to the Company. At Heritage, our liquid milk and curd volumes contracted YoY owing to subdued out-of-home (OOH) consumption, and the withdrawal of operations from Punjab and Rajasthan, as a part of the rationalization exercise, and the disruption caused by unprecedented rains in Hyderabad and several parts of Andhra Pradesh. However, there was a gradual demand revival towards the start of Calendar Year 2021 as several academic and educational institutions started opening up in many states, with summer setting in and with demand BEING A RESPONSIBLE ORGANIZATION, WE IMPLEMENTED SAFETY MEASURES TO ENSURE THE WELL - BEING OF OUR EMPLOYEES. WE ALSO ASSURED OUR CONSUMERS AN UNINTERRUPTED SUPPLY OF MILK AND MILK PRODUCTS THROUGH HOME DELIVERY. CORPORATE OVERVIEW 29 th Annual Report 2020-21 | 17 Vice-Chairperson & Managing Director’s Message