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Heritage Foods Ltd.

BSE: 519552 Sector: Agri and agri inputs
NSE: HERITGFOOD ISIN Code: INE978A01019
BSE LIVE 15:40 | 18 Aug 1302.30 7.60
(0.59%)
OPEN

1308.85

HIGH

1323.60

LOW

1280.65

NSE 15:31 | 18 Aug 1302.65 -3.35
(-0.26%)
OPEN

1303.95

HIGH

1314.70

LOW

1273.25

OPEN 1308.85
PREVIOUS CLOSE 1294.70
VOLUME 1282
52-Week high 1355.00
52-Week low 646.50
P/E 52.11
Mkt Cap.(Rs cr) 3,021
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00
OPEN 1308.85
CLOSE 1294.70
VOLUME 1282
52-Week high 1355.00
52-Week low 646.50
P/E 52.11
Mkt Cap.(Rs cr) 3,021
Buy Price 0.00
Buy Qty 0.00
Sell Price 0.00
Sell Qty 0.00

Heritage Foods Ltd. (HERITGFOOD) - Chairman Speech

Company chairman speech

D Seetharamaiah Chairperson

I am indeed delighted to report that we had an ncouraging FY 2015-16 on the back of ourrobust performance across various - verticals. Although dairy continued to be our primarybusiness we took a step forward to stablish ourselves as a prominent FMCG company.

During the year we delivered a revenue of Rs. 23806 million a 15% growth over theprevious year.

Our BITDA grew by 55% over the previous year with a Rs. 1370 million profit. Theprofit before tax was at Rs. 870 million compared to Rs. 390 million in the previousfinancial year. PAT was at Rs. 550 million compared to Rs. 280 million in FY 2014-15.

Performance across Verticals

Coming to our dairy vertical favourable weather conditions helped us procure milk fromour major operational areas. Our dairy vertical revenue grew by a 14% i.e. Rs. 17688million compared to Rs. 15558 million; and value-added products delivered a 21% higherrevenue that is Rs. 3825 million. Value-added products are growing well ssentially onthe strength of packaged curd besides buttermilk and ice-cream/frozen desserts amongothers. The year's BIDTA for value-added products was 17.68%. Going forward we xpect tofurther strengthen our flagship business primarily driven by our value-added products.

After a strong performance during FY 2014-15 our retail vertical was affected by theChennai floods during FY 2015-16. The city shut down for three days resulting in loss ofinventory and sale delaying new store opening. But we recovered in the fourth quarter.Despite headwinds our retail vertical delivered a Rs. 5829 million revenue which is 18%higher than the last year.

Our agri vertical maintained its growth momentum as consumers have become more healthconscious. People want farm- fresh products on their plate.

This favourable scenario has strengthened the performance of our agri vertical. TheBITDA of agri vertical remained positive at Rs. 13 million 22% higher than the previousyear.

Our merging business like bakery and renewable nergy are also showing considerablegains.

Significant Initiatives during FY 2015-16

• We commissioned our first wind power plant of 2.1 MW capacity at ChinahothurVillage of Ananthapur district Andhra Pradesh. It is Expected to generate 5 million unitsper annum to be consumed by our dairy plants in Chittoor district

• We have hired a powder making plant in Haryana for one year to convert milk intopowder

• We opened 17 retail stores during the year

• Our chilling capacity was xpanded to 1.68 million litres per day

Society Matters

The society and communities form an important part of our business.

We remain committed to our vision to assure remunerative prices to farmers and maximisetheir income to transform their lifestyles. We take various initiatives in the realms offarmer welfare and community development to improve the lives of people in rural India.

• We provide support to milk producers for purchasing and insuring cattle

• We have stablished mobile veterinary clinic to offer medical services to cattle

• We offer high-quality cattle feed to farmers and ducate them through variousvideo programmes on dairy farming

Committed to Grow

Going forward our primary focus will remain on positioning ourselves as an FMCGcompany. We have already started xpanding our business portfolio to achieve this mission.

In dairy vertical we aim to achieve a Rs. 4500 Cr. revenue by 2020. Next four years'growth will be driven towards multiple directions and at multiple levels. We plan to growgeographically into new markets and penetrate deeper into xisting markets.

We aim to strengthen our relationship with customers by delivering pure and freshproducts.

On a Thanking Note

I take this opportunity to thank all our mployees customers shareholders businessassociates and the wider fraternity of stakeholders for their ncouragement and support. Wehave a lot more to achieve together and many more milestones to cross.

With best regards

D Seetharamaiah

Chairperson Heritage Foods Limited