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Heritage Foods Ltd.

BSE: 519552 Sector: Agri and agri inputs
NSE: HERITGFOOD ISIN Code: INE978A01027
BSE 12:55 | 29 Jan 370.15 0.10
(0.03%)
OPEN

374.55

HIGH

379.85

LOW

367.00

NSE 12:44 | 29 Jan 369.60 -0.25
(-0.07%)
OPEN

374.90

HIGH

380.15

LOW

366.30

OPEN 374.55
PREVIOUS CLOSE 370.05
VOLUME 299
52-Week high 570.00
52-Week low 289.90
P/E 21.65
Mkt Cap.(Rs cr) 1,718
Buy Price 366.75
Buy Qty 7.00
Sell Price 369.00
Sell Qty 1.00
OPEN 374.55
CLOSE 370.05
VOLUME 299
52-Week high 570.00
52-Week low 289.90
P/E 21.65
Mkt Cap.(Rs cr) 1,718
Buy Price 366.75
Buy Qty 7.00
Sell Price 369.00
Sell Qty 1.00

Heritage Foods Ltd. (HERITGFOOD) - Chairman Speech

Company chairman speech

Dear Shareholders

Over a period of two decades we have witnessed a journey of growth and excellence atHeritage. The year under review saw changes happening at the economy as well as theindustry level. We also completed our first financial year post acquisition of Dairybrands from Reliance Retail Limited last year. As we operate in the complete value-chainof the dairy system I am happy to state that the year was good for the farmers andconsumers.

India the fastest growing economy in the world experienced a cyclical trend during theyear. The country saw a short term set back with a fall in GDP to 5.3% in the 1st quarterof the year and then saw it rebound to 6.5% in the 2nd quarter. Introduction of Goods andService Tax (GST) during the year also created ripples across various sectors eventuallyeasing out the challenges with passing time.

The dairy industry was driven by various changes during the year. One enhancedbranding and packaging by leading players to grab a larger market share. Two volatilityin milk procurement prices during the second half of the year. Despite this the industrywitnessed an increase in milk output from 5.13 crore tonnes in summer season of FY17 to5.38 crore tonnes in summer season of FY18.

As we operate in a competitive consumer-driven market we continue to evolve as acompany and embrace the challenges and opportunities that come along. We spent around Rs9.9 crore during the year towards rejuvenation of brand silver jubilee celebrationand advertisement. We have registered a growth of 25.25% in our revenue driven by 22.43%growth in value-added products. The introduction of our operational efficiencies andvalue-creation philosophy helped increase the revenue this year.

Like we had mentioned last year we are building a ‘future-ready' Heritage. Duringthe year we took some strategic steps that will help shape our business better and createvalue for stakeholders. We began expansion plans for a plant in Haryana. Completion andcommissioning of which will allow us to shift our packing operations from third partyplants to in-house. While this would bring cost benefits it would also help us marketbetter in our northern market. Second we acquired plant of Vaman Milk Foods (a thirdparty packaging unit) near Chandigarh. This aligns with our belief of marketing productsin innovative packaging solutions that deliver nutrition and wellness. Third while weexpanded capacities for curd at our existing plants in Telangana and Andhra Pradesh weacquired a third party plant near Hyderabad. We invested around H182 crore duringthe fiscal that would strengthen our business and position us to emerge as a nationaldairy player.

The dairy farmers remain at the heart of our business operations. As we expand ourmarket presence across the country we are also expanding our farmer community. Our totalfarmer community stands at 3 lakh farmers helping us procure 13.20 lakh litres of milk. Wecontinue with our endeveour to provide greater value to our farmers empowering them withopportunities for growth and being a partner for success.

As we make progress and take greater strides we continue to adopt a vigilantgovernance framework. Our robust internal control environment protective and seamlessinformation technology and ethical business practices form a strong fundamental base toour sustainability. The result we won second consecutive Golden Peacock Award forCorporate Governance organised by the Institute of Directors in association with TheInstitute of Company Secretaries of India New Delhi.

Going ahead we shall continue our transformation of making Heritage an emerging dairycompany with a wide product range delivering nutrition and wellness to our consumers. Weremain rooted to our promise of driving inclusiveness across the value-chain of ourbusiness as we march towards our mission of achieving H6000 crore topline byFY2022. We came out stronger in FY 2018 and remain optimistic of achieving results in thecoming years. An empowered and trusted farmer community enriching portfolio wideningmarket presence and delightful customer base will enable us to build a sustainableenterprise delivering value to stakeholders.

Seetharamaiah Devineni

Chairperson