Heritage Foods Limited

We are focusing on entrenching our priorities that will help us stay ahead and achieve our objective of maximizing our long-term intrinsic value. We are creating strategic assets that will help us build our future value. We continue to build operational excellence as a core competency and also our ability to execute our strategy and deliver consistent performance. Embedding a Future-Fit Heritage Expanding capacities We increased our milk chilling capacity by 2.1 million liters per day (MLPD) in the past four years. As a result of this, our overall milk handling capacity has gone up by 34% from 1.03 MLPD to 1.37 MLPD during this period. Moving ahead, we maintain our mission of doubling our capacity to 2.7 MLPD over the next 4-5 years. We also installed a new facility at Palghar district in Maharashtra to process milk and milk products with installed capacity of 0.1 MLPD. Commercial production at this facility has been kick-started to meet the needs of our consumers in Mumbai and the surrounding areas in Maharashtra. The capacity will be furthermore increased to ful fi ll the demand of the consumers as and when required. Modernizing infrastructure In certain pockets of areas with inadequate procurement infrastructure, there is a need for modernization and automation, infrastructure requirement for IT and replacement capex for certain equipment, which needs to be replaced. We also created an important back-end infrastructure for curd, making about 50,000 kg per day in Hyderabad and 50,000 kg in Andhra Pradesh. Augmenting research capabilities We also set up a separate R&D laboratory towards the end of the year, with high-end quality testing equipment with a capacity of 100 liters per hour. The key objective of the R&D laboratory is development of new products and improvement in quality of existing products and packing materials. Leveraging technology We continue to harness technology as we move towards our next phase of growth. We continually capitalize on our technology integrated network to raise our operational e ffi ciency as much as possible. Deploying state- of-the-art technology also helps in continuous process and product innovation and enables us to meet consumer expectations and enhance consumer delight. We launched Heritage TUCH App for hassle- free dairy delivery in Hyderabad. Consumers can order milk and milk products online through the App at their convenience of staying at home. Current Capacities in Milk 2.7 MLPD PROCESSING 2.1 MLPD CHILLING 0.70 MKPD CURD PACKAGING CAPACITY 1.7 MLPD MILK PACKING Figures in Million Liters Per Day (MLPD) Figures in Million Kg Per Day (MKPD) Heritage Foods Limited 28