Heritage Foods Limited

We ensured uninterrupted procurement of all the milk produced by our farmers. The assurance of continual delivery of health and nutrition to our consumers has indeed been very ful fi lling. As we exercised caution on all fronts, we upheld a prudent approach during the challenging environment and navigated the uncertain times by placing the right bu ff ers to capture future growth. Our robust B2C milk portfolio insulated us from the fallout. Due to apprehension about consuming cold products during COVID-19, our products such as ice cream/frozen desserts have shown a drastic decline in their consumption pattern. Gaining resilience During the year, we leveraged the opportunity to strengthen our capabilities on all fronts. While we increased our milk chilling capacity, we also expanded the milk processing capacity, augmented R&D infrastructure with technologically- advanced equipment and focused on enhanced product innovation. Besides solidifying our value-added product portfolio, we deepened our penetration in existing territories and explored new geographies by tapping the untapped semi-urban and rural segments. We also leveraged the use of technology for supply chain and process optimization. We leveraged the potential of technology to gain operational e ffi ciencies and achieve cost optimization, besides capitalizing on our digital platforms to understand consumer behaviors. Providing nutrition and wellness As health and hygiene continued to be a key consumer need during the pandemic, we not only demonstrated business resilience, but also maintained a continual focus on earning a greater return on milk. We created specialty products appealing to a growing consumer interest. We realized greater value by processing milk and manufacturing products based on changing consumer habits and needs. Consumers are expecting a lot of foods and beverages they consume- they want clean labels, nutritional and fi tness-related bene fi ts and convenience - all of these without sacri fi cing the taste. We created innovative and convenient products with great fl avors and nutrition. As consumer trends shifted trajectories, we developed value- added products to give consumers just what they were seeking – advancing nutrition, food safety and sustainability. Rising disposable incomes, growing consumer preference for branded and value- added milk and milk products, and increased awareness of nutrition value is driving demand for value-added dairy products in India. Our ambition is to be recognized for nutrition, health and wellness with a portfolio focused on value-up ranges. AS HEALTH AND HYGIENE CONTINUED TO BE A KEY CONSUMER NEED DURING THE PANDEMIC, WE NOT ONLY DEMONSTRATED BUSINESS RESILIENCE, BUT ALSO MAINTAINED A CONTINUAL FOCUS ON EARNING A GREATER RETURN ON MILK. CORPORATE OVERVIEW 29 th Annual Report 2020-21 | 21 Message from the Executive Director