138 32ND ANNUAL REPORT 2023-24 | HERITAGE FOODS LTD MDA STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS Growth levers in brief • Growing market share in our existing markets of presence • Tapping into new markets that exhibit high growth potential • Growing the share of value-added products in our portfolio • Focusing on digitalisation initiatives, especially with regards to app development for better farmer outreach, digital payments, distribution monitoring etc. • Expanding our distribution ecosystem, especially in the new areas of quick-commerce, D2C (direct-toconsumer), etc. Outlook Heritage Foods is focused on expanding its market reach within its areas of presence. By leveraging its vast distribution network and an expanding array of products, the company is making significant inroads into both metropolitan and Tier-1 and 2 cities. Concurrently, the organization is reinforcing its foothold in these markets, focusing on strategic brand-building initiatives through customer outreach, etc. The company will continue to focus on building an effective supply chain designed to cater to the rising demand for value-added products. With the shifting demand patterns, the company will continue to focus on growing its value-added segment through ensuring the right product-market fit to suit local tastes and preferences and also by adopting innovative marking strategies. This is rooted in continuous innovation and broadening of the product portfolio, backed by an unwavering commitment to consumer delight. Moving forward, the company plans to adopt industry-leading practices to boost capacity utilization and operational efficiency that will have a positive bearing on profitability. To further stimulate growth, the company aims to expand its cattle feed business too, establishing the necessary infrastructure and leveraging strong farmer relationships built over decades. Risk management A comprehensive risk-management framework allows us to pre-emptively monitor risks spawning from the internal and external environment. As a result, navigating the challenges of the industry, we have been able to create durable value for our stakeholders. Our risk management process Identification and assessment approach Prevention and control strategy Monitoring and surveillance Review and reporting Forecasting and assessing the probability of occurrence, magnitude, category and rating of the risk Devising plan of action to prevent risk and reduce the aftermath, while ensuring activation of the right strategy to capture potential upsides Gauging the potency of controls with a view to improve risk identification, monitoring and surveillance Overseeing the risk process at regular intervals, especially spearheaded by the Board Risk Management Committee Our risk mitigation plan The Board takes the following steps as a part of its risk management and mitigation plan: • Defines the roles and responsibilities of the Board Risk Management Committee • Participates in major decisions affecting the organization’s risk profile • Integrates risk-management reporting with the Board’s overall reporting framework The company functions under a well-defined organization structure. Flow of information is well defined to avoid any conflict or communication gap between two or more departments. Second-level positions are created in most of the department to continue the work without any interruption in case of nonavailability of functional heads. Proper policies are followed in relation to maintenance of inventories of raw materials, consumables, key spares and tools to ensure their availability for planned production programmes. Effective steps are being taken to reduce the cost of production on a continuing basis, taking various changing scenarios in the market.
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