Heritage Foods Limited

Heritage Foods Limited 62 organization’s brand and reputation. This is ensured by taking ethical business decisions and conducting business with a fi rm commitment to values, while meeting stakeholders’ expectations. It is imperative that your company’s a ff airs are managed in a fair and transparent manner. This is vital to gain and retain the trust of the stakeholders. In terms of Regulation 34 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter “Listing Regulations”) as amended from time to time, a Report on Corporate Governance along with Compliance Certi fi cate issued by Statutory Auditors of the Company forms integral part of this Annual Report. Business Review Your Company has not changed its nature of business during the period under review. Your Company has Two Divisions in operation in di ff erent States in India as on March 31, 2021. Dairy Business: Global Dairy Industry: The global dairy market has progressed promptly over the years and the market is further anticipated to escalate during the forecasted years 2021 to 2025. The market would augment owing tonumerous growthdrivers suchas escalatingdisposable income, rising milk products demand, augmenting need for nutritional food, increasing urban population, escalating ice cream industry, etc. Indian Dairy Industry The Indian Dairy Industry holds an inimitable space in the country for its high employment potential and for ensuring the availability of nutritious yet a ff ordable food for India’s ever increasing population. Getting the tag of largest milk producer was made possible by Operation Flood and the historic dairy cooperative movement; and as production increased, dairy industry started showing promising growth potential. India is the largest producer of milk in the world with an annual output of 138 Million Tonnes, India also has the largest bovine population in the world. However, the milk production per animal is signi fi cantly low in our country as compared to the other major dairy producers country. Moreover, nearly all of the dairy produce in India is consumed domestically, with the majority of it being sold as fl uid milk. On account of this, the Indian dairy industry holds tremendous potential for value-addition and overall development.Indian dairy industry also o ff ers good opportunities to both domestic and foreign investors for entry and expansion. Due to their rich nutritional qualities, dairy products’ consumption has been growing exponentially in the country. As of 2020-21, India is the leading milk producing country in the world, accounting for 21% of the global market share. The milk processing industry in India is expected to expand at a compound annual growth rate (CAGR) of 16% between FY 2019-20 and FY 2023-24. Indian Dairy Market Structure Indian Dairy Market 187.7 Million Metric Ton Marketable (54%) 101.35 Million Metric Ton Organized (28%) 28.37 Million Metric Ton Private Players (55%) 15.60 Million Metric Ton Cooperatives (45%) 12.76 Million Metric Ton Self Consumption (46%) 86.34 Million Metric Ton Unorganized (72%) 72.97 Million Metric Ton India: Dairy Market Forecast (in Billion INR) As per the research report by IMARC Group, it is estimated that the Indian dairy industry was worth a value of INR 11,360 Billion in 2020 and it anticipates the market to reach a value of INR 21,971 Billion by 2024, exhibiting a CAGR of around 16% during the 2020-2024. Organized & Unorganized Dairy Market in India Beingoneof theprimarydairy consumables in India, thedemand increase for milk in the country is owed to the increasing population. As of FY 2020-21, 81.1% of the Indian dairy and milk processing market was part of the unorganized sector. State-wise segment insights: Uttar Pradesh, Rajasthan, Madhya Pradesh, Andhra Pradesh and Gujarat have been the major milk producing states in India. Uttar Pradesh is the largest milk-producing State because it is home to the highest bu ff alo population and the second-highest cattle population in the country. The majority of the rural population in this state is engaged in livestock rearing and dairying. Gujarat has numerous cooperative dairy milk unions and primary milk cooperative societies, which play vital role in the production of milk in the state. The Andhra Pradesh dairy market reached a value of INR 506.7 Billion in 2020. IMARC Group expects the Andhra Pradesh dairy market to grow at a CAGR of 9.50% during 2021-2026. Value-added product wise insights: Apart from milk, the revenue of the Indian dairy and milk processing industry is generated from several value-added products such as curd, paneer, fl avoured milk, cheese etc.