A large and growing family of dairy farmers As we sustain our growth momentum, what gives us strength is our large and growing family of 300,000+ farmer-producers. Many of our dairy farmers have been pouring milk to Heritage Foods for decades and over multiple generations. Our commitment to ‘empower farmers’ that is enshrined in our vision, has guided us to remain 100% accurate in our measurement, fully fair and transparent in our pricing, and truly punctual with our ‘payment on pay-day’ promise. We have never delayed any payment in the last 32+ years. This absolute consistency in our dealings gives us comfort on the raw milk supply side, in line with our growth requirements. A committed high-performance team At the core of our growth engine is an experienced, high-performance team. Our business is highly purpose driven, which inspires and engages our committed workforce. Led by seasoned leaders who have a track-record of many accomplishments, our wider team of associates possess deep expertise in their respective areas. We are focused on building a work environment where everyone belongs and feels valued. We cultivate a winning culture with clearly defined growth behaviours and we celebrate heroes who help us stay ahead of the peer group. We are a fast-evolving organization, always acquiring new-age capabilities and having human capital strategies like any cutting-edge FMCG organisation. A sustainable business model We are focused on building a working environment where everyone belongs and feels connected. In line with this strategy, we recognise that each employee has an important role to play in creating and sustaining an inclusive and thriving working environment. Our peoples' well-being and safety are of utmost importance, and we take great care to safeguard their health. Stringently implementing essential safety protocols throughout our facilities, we have left no room for any health risks to affect our workforce. Simultaneously, our commitment to their growth remains unwavering, as we provide essential skill development training to elevate their expertise. Strong category tailwind India ranks as the top producer of dairy products globally, contributing to over 25% of worldwide dairy production. With a large vegetarian population, dairy products are an indispensable source of nutrition and the primary source of essential proteins and calcium. Per capita spends towards high nutrition food, especially dairy, is growing ahead of GDP growth. A growing young population, changing lifestyle patterns, increasing disposable incomes, and rising health awareness are the primary factors driving dairy consumption in India and, within that, providing strong tailwind for private dairy product companies offering a diverse range of products and adapting quickly to changing consumer preferences. A resilient brand synonymous with high quality Heritage is a household brand name and enjoys high preference and loyalty among its consumers across markets. In a category that is characterised by regional competition, we have invested in strong R&D capability that enables us to offer a wide array of delicious and highly nutritious value-added dairy portfolio. Our supply chain network penetrates deep, procuring milk directly from farmers and manufacturing units closest to consumers, which assures freshness and the highest level of quality that differentiates us as a national brand. The brand enjoys the highest consumer loyalty in South India, as per internal brand health reports, and is expanding its consumer base much faster than the industry. Wide network of customer partners We are diligently building an omnichannel network that gets us closest to our consumers. Today, our footprint spans 12 states for sales and we are adding more states and cities to our network. Through our e-commerce partners, we reach 70% of the pin codes nationally with our ambient value-added products. We are equally committed and invested across the traditional distributor network, emerging channels like e-commerce/q-commerce as well as our own exclusive channels, such as Heritage Happiness Points and Parlours. We are also investing to grow our D2C consumer base through our W-Comm solution linked to our Happiness Points, which allows our exclusive channels to have a digital reach. 01 04 02 05 03 06 Our Investment Case STRATEGIC REVIEW STATUTORY REPORT FINANCIAL STATEMENTS 33 HERITAGE FOODS LTD | 32ND ANNUAL REPORT 2023-24
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