@£) H i n d u s t a n F o o d s L i m i t e d A V a n i t y C a s e G r o u p C o m pa n y R e g i s t e r e d O ffi c e : O ffi c e N o . 3 , L e v e l - 2 , C e n t r i u m , P h oe n i x M a r k e t C i ty , 1 5 , L a l B a h a d u r S h a s t r i R o a d , K u r l a ( W e s t ) , M u m b a i , M a h a r a s h t r a , I n d i a . 4 0 0 0 7 0 . E m a il : b u s i ne ss @ t h e v an i t yc a s e . c o m W eb s i t e : www . h i nd u s t a n f o o d s l i m i t ed . c o m T e l . N o . + 9 1 - 2 2 - 6 1 8 0 1 7 0 0 I 0 1 G I N : L 1 5 1 3 9 M H 1 9 8 4 P L C 3 1 6 0 0 3 C o m p a n y S c r i p C o d e : 5 1 9 1 2 6 1 h A ugu s t , 2 0 1 9 D a t e : 2 6 T o , T h e G e n e r a l M a n a g e r D e p a r t m e n t o f C o rp o r a t e S e rv i ce s T h r o ug h L i s ti n g C e n t r e B S E L i m i t e d F l oo r 2 5, P . J . T o w e r s , D a l a l S t r e e t , M u m b a i - 4 0 0 0 0 1 . T e l : ( 0 2 2 ) 2 272 1 2 3 3 / 3 4 D e a r S i r I M a d a m , S ub . : I n v e s t o r P r e s e n t a t i o n f o r 0 1 F Y 2 0 1 9 - 2 0 I n p u r s u a n ce t o R e gu l a t i o n 3 0 o f t h e S E B I ( L i s t i n g O b l i g a t i o n s a nd D i s c l o s u r e R e q u i r e m e n t s ) R e gu l a ti on s , 2 0 1 5 , p l e a s e fi n d e n c l o s e d h e r e w i t h t h e I nv e s t o r P r e s e n t a t i on f o r Q l e n d e d 3 0 1 h J un e , 2 0 1 9 F Y 2 0 1 9 - 2 0 . W e r e qu e s t y o u t o t a k e t h e a b ov e o n r e c o r d. T h a nk i n g y o u, Y o u r s f a i t h f u l l y f o r H I ND U S T A N F O O D S L I M I T E D r E n c l . : A s a bo v e " V A N 1 T 1 � A S E I n t e g r i t y ( b i t i a t l e I n n o v a t i o n
HINDUSTAN FOODS LIMITED INVESTOR PRESENTATION | August 2019 H I N D US T A N F OO D S LI M I TE D <, /
Executive Summary H I N D U S T A N F OO D S L I M I TI:: D • Founded in 1984, Hindustan Foods Limited (HFL) offers reliable contract manufacturing services across India to top FMCG customers who are looking to minimize cost while maximizing product quality in the post-GST environment. • In 2013, Vanity Case Group bought a controlling stake in Hindustan Foods Ltd. from Dempo Group of Goa and since then the company has diversified across various FMCG categories with manufacturing competencies in Food & Beverages, Home & Personal Care, Fabric Care, Leather products. • HFL has a market capitalization of INR 5,924.6 Mn as on 30 th June, 2019. Manufacturing Facilities Goa Jammu Puducherry Mumbai Coimbatore Hyderabad* Key Clients : Jomos, Key Clients: Espirit, Key Client : Hindustan Key Clients : Hindustan Key Clients : Key Client : Reckitt Gabor, Hush Puppies, Saks Fifth Avenue, Unilever Unilever Danone, Marico, Benckiser US Polo, Bata Dune, Myntra, Lollipop, Products : Detergent Raptakos Product : Pest Control Products: Tea, Coffee Flipkart. Brands : Powder and Liquid Products :Shoes / shoe Products : Extruded (Coils, Vaporisers, Tea- Taj Mahal, Lipton, Soaps Cereals Aerosols) uppers for men, women Products: Shoes for 3 Roses Coffee- Bru Brands : Rin, Wheel, Brands : Farex, First Brand : Mortein and children women, men and Surf Excel Food, Easum children Q1-FY20 Financials (Mn) EBITDA PAT Total Income Q1-FY20: INR 777 Q1-FY20: INR 69 Q1-FY20: INR 30 (Growth of 60.5% Y-o-Y) (Growth of 75.8% Y-o-Y) (Growth of 25.0% Y-o-Y) * On-going Merger I l l I I I l l I I I l l I I I l l I I I l l I I I I I I I I l l I I I l l l l l l l l l l l l I I I ll I I I l l I I I l l I I I l l I I I l l I I I I I I I I I I I I I l l I I I l l I l l I 2
Industry Overview H I N D U S T A N F OO D S L I M I TI:: D The age of contract manufacturing as a distinctive sector has arrived. Hindustan Foods is very well placed to continue leveraging India’s consumption story. • Acording to a report by IBEF, India’s FMCG market is expected to grow at a CAGR of 27.86% to reach USD 103.7 Baby food Bn by 2020 from USD 53.8 Bn in FY18. Contract manufacturers are expected to aid this growth. (CAGR of 5.5% from • Rising cost of raw materials, logistics and labour have 2018-2023) become a global concern, and in order to reduce costs across the value chain, FMCG companies continue to look for organized partners for outsourcing their production. Leather Pest control Products (CAGR of • New evolving brands may not have the necessary expertise (CAGR of 6.5% from or ability to setup manufacturing facilities and would prefer 10% by 2020) 2018-2026) contract manufacturing. FMCG • Due to the US-China trade war, India’s exports of consumer goods to the US are increasing, leading to more companies turning towards India for contract manufacturing. • GST implementation has lead to decentralization of Food & Fabric Care Beverages manufacturing facilities and has given more opportunities to (CAGR of 5% this sector to cater to the needs of the FMCG companies (CAGR of from 2018- looking forward for expansion. 36% from 2023) 2015-2020) Sources: IBEF, Economic Times, Euromonitor, Ministry of Commerce and Industry, mordorintelligence.com, entrepreneurindia.co, business research & analytics. Mordor intelligence I l l I I I l l I I I l l I I I l l I I I l l I I I I I I I I l l I I I l l l l l l l l l l l l I I I ll I I I l l I I I l l I I I l l I I I l l I I I I I I I I I I I I I l l I I I l l I l l I 3
Growth Drivers H I N D U S T A N F OO D S L I M I TI:: D E-commerce GST implementation SpecializedApproach Make In India Cost efficiency Contract Growing Consumer Demand Faster-Time-T o-Market Manufacturing Ease of doing business Asset-light operating models Focus on core competency Evolving regulatory environment Increasing rural incomes IT’S AN AGE OF CHANGE NEED OF THE HOUR WE ARE THE SOLUTION I l l I I I l l I I I l l I I I l l I I I l l I I I I I I I I l l I I I l l l l l l l l l l l l I I I ll I I I l l I I I l l I I I l l I I I l l I I I I I I I I I I I I I l l I I I l l I l l I 4
COMPANY OVERVIEW 5
Company Overview H I N D U S T A N F OO D S L I M ITE D Introduction Key Clients • Hindustan Foods Ltd. (HFL) was founded in 1984 and was promoted by the � � Dempo Group. , R e c k i tt • In 2013, the Vanity Case Group acquired a controlling stake in the company. B en c k i s e r • The Vanity Case Group was founded in the year 2001 and is one of the largest and most diversified FMCG contract manufacturers in India, under the visionary leadership of Mr. Sameer Kothari. � � � zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA f7J � g- � . ;;fd. • Since then HFL has transformed into a scalable, profitable, diversified contract � manufacturer catering to various marquee customers. P I O N E E R S I N N U T R A C E U T I C A L S , S I NC E 1 9 3 0 • The company has a vision of growing 20x by 2020 to reach a turnover of INR 1,000 Crores, through various organic and inorganic strategies. Business Models • Many products for multiple clients manufactured at one m a n c o Contract facility • Contracts are typically for seasonal clients and are Manufacturing flexible in nature. • Sets up or acquires the manufacturing facility for the D A N O N E OEM principal. • Contracts are long term in nature. Manufacturing 1 , . • Categories under this model: G a b o r • Dedicated manufacturing U . S . P O L O A S S N . • Anchor-tenant manufacturing e , ,. i; � 1 e 9 0 . I • Developed by the company will be based on extensive Private Labels research and testing methods. s h o e s f o r l i f e . .. I s e m e s • Provides specialised formulations, packaging and brand = : H u s h P u p p i e s · styling solutions - m ade i n G e rm an y I D I l l 1 1 1 11 11 1 1 1 1 1 1 11 I I I I I I I I I I I I I l l I I I l l I I I l l l l l l l 1 1 1 I 1 1 1 1 1 1 1 1 1 1 1 11 1 1 1 1 1 1 1 1 1 I I 1 1 I I l l I 6
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