Heritage Foods Limited | 30th Annual Report 2021-22

30 th Annual Report 2021-22 Heritage Foods Limited 60 route of milk procurement enables it to maintain quality. The company also operates 187 bulk coolers, chilling plants and procured 1.3 Million liters of milk per day. It operates 18 own processing plants with installed milk processing capacity of 2.7 million liters per day. Your Company procures 1.3 Million litres of milk daily from 0.3 million farmers across eight states. The milk is directly procured from farmers which ensures greater consistency in milk quality and consistency in supply. The company’s installed processing capacity is 2.7 Million liters per day and chilling capacity is 2.13 Million LPD. Products of the Company are available across 11 states viz. Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Maharashtra, Odisha, NCR Delhi, Haryana, Uttar Pradesh and Uttarakhand. COVID The second wave of the global health pandemic COVID-19 in the month of April and May 2021 in India and the lockdown imposed by the State Governments resulted in slowdown of most of the businesses in India. Your Company’s plants continued to operate as per the business requirements and in compliance with the instructions and guidelines issued by the Government of India and the respective State Governments. Your Company was been categorised under “Essential Commodities” as per the notification issued by Ministry of Home Affairs (MHA) Govt. of India, for supply of Milk and Milk Products. The pandemic had no material adverse impact on the company’s business, although the sales of milk and value-added products have come down because of the lockdown imposed by various State Governments. Transportation was also impacted initially to some extent due to absenteeism of drivers. All the milk supplied by farmers was procured and processed during the lockdown period. However, the availability of raw materials and the supply chain of the company were not affected. The Company took conscious decision to balance uninterrupted operations and ensuring a safe working environment. The company is continuously ensuring a safe working environment to its employees by sanitizing its work place regularly. Your Company has complied with the COVID-19 guidelines issued by the Government of India and the respective State Governments. The Board of Directors expressed their satisfaction about the way company has handled the business during the period of COVID-19 outbreak. Renewable Energy Division Your Company strongly recognizes the responsibility towards protecting the environment. As a forward-looking enterprise, it is strongly committed to extending the Green’ footprint. Your Company is taking a lot of initiatives for conservation of energy. Renewable energy was the major focus area in the last ten years. Now your Company has 10.50 MW of solar and wind power for captive consumption. Your Company is continuously investing in latest technologies and efficiencies to conserve energy. Renewable Energy Division of your Company had achieved the turnover of 90.03 Million during the year under review Subsidiary / Associate Companies Your Company as on March 31, 2022 is having following subsidiary/ associate/joint venture Companies: Heritage Nutrivet Limited (CIN: U15400TG2008PLC062054) A wholly owned Subsidiary Company operating with Animal Nutrition and one of the leading Live Stock Feed & Feed Supplements Companies in Southern and Western India, covering over 0.3 million farmers spread across five states viz., Andhra Pradesh, Telangana, Tamil Nadu, Karnataka and Maharastra. Product quality is pivotal in our endeavour towards “HEALTHY MILCH ANIMAL – HAPPY FARMER” It is also proficient in providing cost-effective solutions for the farmers facing ground reality. The products of the Heritage Nutrivet Limited are innovatively engineered to serve varieties of needs of the animals. It segregate the animal feed into dairy power, dairy milk, rich, dairy supreme, milk magic plus, gomitra, gomitra plus. Skil Raigam Power (India) Limited (CIN:U40102TG2009PLC063671) An associate Company as per the provisions of Section 2(6) of the Companies Act, 2013, which has been declared as Dormant Company as per Section 455(2) of Companies Act, 2013 vide SRN: T42936765 dated September 22, 2021, the Company will be in the process of setting up hydro power plant at Raigam, in Arunachal Pradesh. Your Company is having 43.33% of shareholding in this Company. Heritage Novandie Foods Private Limited (CIN: U74999TG2017PTC120860) A 50:50 Joint Venture Company between Heritage Foods Limited (HFL), Hyderabad, India and Novandie, France with an object to manufacture and market various Fruit Yoghurts and other dairy products in India. The Company had started the commercial production on February 16, 2021 and launched French Yoghurt brand ‘Mamie Yova’ in India. The Company is hoping to woo Indian consumers with its fruit-based yogurt and aims to have a strong presence across 8-10 key cities in the next two years. Due to COVID out-break the Company has not make the market penetration in large scale, however during the coming financial year the company is expected to make more penetration in the market, resulting to make more revenue and losses will be minimised. The details of transaction are available in the AOC-1 which is forming part of the consolidated financial statement. The gist of financial performance of the Subsidiary/ Associate/Joint Venture companies is as follows.