131 HERITAGE FOODS LTD | 32ND ANNUAL REPORT 2023-24 MDA STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS Outlook Despite the challenges, India’s dairy sector is on the cups of a promising future, bolstered by demographic growth, heightened nutritional knowledge and increasing customer awareness. Demand is set to rise, with governmental backing and infrastructural enhancements key to furthering its economic significance. At this pivotal juncture, the industry is ready to navigate the challenges and seize the opportunities. Through technological advancements, supply chain fortification, sustainability efforts and stakeholder collaboration, it can realize its full potential and sustain its global dairy leadership position. Company overview Heritage Foods Limited (HFL) stands as a distinguished entity in India’s dairy industry, specializing in milk and value-added dairy products. With a legacy spanning over three decades, the company has carved a niche for itself by offering a range of innovative value-added dairy products, such as curd, paneer, ghee, fresh cream, UHT milk, lassi, immunity-boosting milk and an assortment of ice-creams and frozen desserts. The company has fortified its operations by successfully establishing 18 cutting-edge milk processing units, enabling it to establish a wide-ranging presence in more than 12 states. HFL’s diverse product mix, robust innovation focus and prudent growth strategies have catapulted it to the forefront of the fast-moving consumer goods (FMCG) arena, underpinned by a formidable distribution network and a multi-channel market approach. The company boasts a standardized distribution matrix featuring 237 Heritage happiness points dispersed over 12 states. Through enduring partnerships with over 300,000 dairy farmers spanning 9 states, the company has successfully secured steady milk supply. HFL has further strengthened its digital footprint by marking its presence across 16 e-commerce platforms. The company’s commitment to innovation is matched by its investment in state-of-the-art manufacturing and processing technologies, ensuring unparalleled quality control managed by a team of specialised professionals. With 18 processing plants and a fleet of 203 bulk coolers, alongside a network of mini chilling centers, HFL is dedicated to delivering fresh and nutritious products straight to the consumer’s table. Throughout its history, the company has periodically launched several value-added products. These products have not only significantly boosted the company’s revenue but have also brought joy to its consumers. The company’s ice cream and frozen dessert segment has recently experienced an impressive growth spurt, demonstrating the company’s capacity to meet consumers demands. Moreover, the company has implemented initiatives for the welfare of farmers and their animals, aiming to improve dairy production and the living conditions of dairy farmers. Going forward, the company is poised to broaden its reach within existing markets, fostering innovation across various channels. In the forthcoming years, the company is set to unveil a range of pioneering dairy offerings, with a special focus on expanding the ice cream, frozen dessert and beverage segments, thereby bolstering its growth trajectory and ensuring sustainable value creation for shareholders and all stakeholders. Strategic priorities Grow and strengthen network advantage Deliver operational and organisational efficiencies Ensure disciplined capital allocation and improved cash flow generation Innovate offerings and services to create new value levers Build a talented workforce Our product categories Milk Value-added products Fat products Fresh milk Curd Ghee A2 milk Paneer Butter UHT milk Cheese Cream Buttermilk Flavoured milk Milkshake Sweets Lassi Ice cream/ frozen deserts Milk Fresh milk holds a prominent position as India’s most widely consumed product and a trusted nutrient powerhouse.
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