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Adf Foods Company History Information

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Adf Foods Company History Information

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  1. InvestorPresentation – May2022 InvestorPresentation–May2022

  2. SAFEHARBOR This presentation and the accompanying slides (the “Presentation”), which have been prepared by ADF FOODS LTD (the “Company’), have been prepared solely for information purposes and do not constitute anyoffer,recommendationor invitationto purchase orsubscribe for anysecurities, andshall not form the basis orbe relied on in connection with any contract or binding commitment whatsoever. No offering of securities of the Company will be made except by means of a statutory offeringdocumentcontainingdetailedinformationaboutthe Company. ThisPresentationhasbeenpreparedbythe Companybasedoninformationand datawhichthe Companyconsidersreliable,buttheCompanymakesno representation or warranty, express or implied, whatsoever, and no reliance shall be placed on, the truth, accuracy, completeness, fairness and reasonableness of the contents of this Presentation. This Presentation may not be all inclusive and may not contain all of the information that you may consider material. Any liability in respectofthe contentsof,oranyomissionfrom,thisPresentationisexpresslyexcluded. Certain matters discussed in this Presentation may contain statements regarding the Company’s market opportunity and business prospects that are individually and collectively forward-looking statements. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and assumptions that are difficult to predict. These risks and uncertainties include, but are not limited to, the performance of the Indian economy and of theeconomiesofvarious internationalmarkets,theperformance oftheindustryinIndiaand world-wide,competition,thecompany’sabilitytosuccessfully implementitsstrategy,theCompany'sfuturelevelsofgrowthandexpansion,technologicalimplementation,changesandadvancements,changesinrevenue,income orcashflows,theCompany'smarketpreferencesanditsexposuretomarketrisks,aswellasotherrisks.TheCompany'sactualresults,levelsofactivity,performance or achievements could differ materially and adversely from results expressed in or implied by this Presentation. The Company assumes no obligation to update any forward-looking information contained in this Presentation. Any forward-looking statements and projections made by third parties included in this Presentation are notadoptedbythe Companyandthe Companyisnotresponsiblefor such third-party statementsandprojections. AllMapsusedinthepresentationarenottoscale.Alldata,information,andmapsareprovided"asis"withoutwarrantyoranyrepresentationofaccuracy,timeliness orcompleteness 2

  3. BUSINESSOVERVIEW

  4. ABOUTADFFOODS ABOUTUS ADF Foods (ADF) is a leading manufacturer of prepared ethnic food, offering frozen foods, ready-to-eat (RTE) items, ready-to-cook (RTC) items, chutneys, sauces,pickles,spices,pastes,dipsand milkdrinks underits8Flagship brands. OURBRANDS 4

  5. BUSINESSSNAPSHOT 8 3 BRANDS MANUFACTURING FACILITIES 55+ 2 COUNTRIES WAREHOUSES ~28,000 MTPA 180+ DISTRIBUTORS CAPACITY 5

  6. BUSINESSDIVISIONS Revenue(₹Cr) PROCESSEDFOODSBUSINESS +15.1% Large rangeofproductssuitedfor different palates 335 293 253 One ofthe topbrandsinethnicfood shelvesinkeymarkets 20% One ofthelargestIndianexportersof processedsnacks FY20 FY21 FY22 DISTRIBUTIONBUSINESS +63.3% 86 77 Synergisticproductsofferinga wider basket 80% 32 Strong presence in US markets with a growingUK&Europe presence Processed Foods Business * DistributionBusiness* FY20 FY21 FY22 6 *RevenueBreakdownasofFY22

  7. PRODUCTPORTFOLIO Selectkey products • Snacks- Punjabisamosas,batatavada,kathirolls • Vegetables-Green chilli,Mix vegetable cut, methi,palak • Breads-Tandoors,parathas FrozenProducts • ReadytoeatNormal-PavBhaji,dalmakhni,matarpaneer • ReadytoeatVegan-Bhindimasala,paneer(tofu)makhani Ready-to-eat& Ready-to-cook FrozenProducts • Pickles-chilly, lemon,mango,mixed • Chutneys – coconut, coriander, mint, sandwich, panipuri, date&tamarind • Sauces-Pastasauce,pizzasauce Food Accompaniments Shelf StableProducts • Spices- Madrascurry powder,tamarind • Others-Almond milk,Mango milk, turmericandhoneymilk Spices&Others 400+ SKUs • Mexican products- Frozen Mexican hand rolled burritos, plant based protein (Meat alternatives) like meatless meatballs MexicanProducts 7

  8. CUSTOMERCENTRICAPPROACH

  9. STRENGTHENINGTHE REACH TOTHECONSUMERS Inadditiontoexpandingourproductioncapacities,ADFisalsoexpandingits reachinkey marketsthroughdirectdistribution MARKETING& ADVERTISING WAREHOUSING DISTRIBUTION MANUFACTURING Greenfield+Brownfield Expansion ~1 LacSq. Ftarea of warehouses Step-down subsidiary for directdistributioninNew JerseyandGeorgia MediaAdvertising&In-store Promotions Greenfield expansion - frozen food, ready-to- eat, condiments; potential to add ~10,000 metrictonnesofcapacity inPhase1 Unlockadditional capacitiesof ~20%atexistingfacilities through de- bottlenecking Higherthroughput Directreachtoretailers Bettersupplychain management Highermargins 1stwarehousein New Jersey, USA, has leasehold areaof~ 70,000Sq.Ft. 360-degree marketing approach including social media,television,radio, OTTplatforms,in-store sampling, in-store 2ndwarehousein Georgia,USAwith a leasehold areaof33,000 Sq.Ft promotions,leafletsand hoardings

  10. ABOUQUETOF GLOBALBRANDS FlagshipBrandtargetedatIndiandiasporaworldwide PrimarilytargetedatNon-Indiandiasporaconsumers Positioning FrozenSnacks,frozenbreads,frozenvegetables,RTE,meal accompaniments,pastes,sauces,spices,milkdrink RTE,mealaccompaniments,pastes,sauces Products Geographies USA,Canada,UKand APAC Germany& USA RetailChannel 70-90%fromethnicstoresacrossgeographies; Balancefrommainstream/moderntradestores 100%frommainstream/moderntradestores PremiumbrandtargetedatArabicdiaspora EconomyBrand Positioning Mealaccompaniments,pastes,sauces Mealaccompaniments,pastes,sauces Products Geographies Middle East Middle East RetailChannel 95%frommainstream/moderntradestores 65%frommainstream/moderntradestores;35% general trade

  11. ABOUQUETOF GLOBALBRANDS FrozenOrganic MexicanFood PrimarilytargetingurbanIndiancustomers Positioning Organic, madewithUSDAcertifiedorganicingredients Mealaccompaniments,pastes,sauces Handrolledburritos Products Geographies SoldandmarketedprimarilyinMumbai,India USA RetailChannel AvailableinRelianceRetail,SahakariBhandar&Haiko;and selectonlinechannels 100%frommainstream/moderntradestores PlantBasedProtein (MeatAlternatives) Non-GMO,allnatural,vegan,vegetarian Mughlaicourse-kebabs,curries,naans,pulao,along withachars Positioning Meatlessmeatballs Easytocookfrozenmeals Products Geographies USA Inplanningstage RetailChannel Inplanningstage 100%frommainstream/moderntradestores

  12. MANUFACTURINGFACILITIES • TotalBuiltupfactoryarea-15,000 Sqm • Frozenfoods(Samosas,vegetables, snacks,parathas,etc.) • Mealaccompaniments(Pickles,chutneys, pastes,sauces) • Readytoeatcurries&cannedvegetables Nadiad, Gujarat • TotalBuiltupfactoryarea– 10,100Sqm • Totallyautomatedspiceprocessingunit byBuhler, Germany • Readytoeatcurriesandspices;meal • accompaniments Manufacturingexpansion initiatives Nasik, Maharashtra ExistingFacilities • Undertaking brownfield and • debottleneckingeffortsatexisting • plantsinNadiadandNasik • Unlock additionalcapacitiesof~20% • NewFacility • GreenfieldexpansionatSurat to increasecapacitiesforfrozen food, ready-to-eat,condiments • Potential toadd ~10,000metric tonnesofcapacity inPhase1 • Manufacturingoffrozenproducts • Leasedfacilitywithtotalareaof2,800 Sqm Surat, Gujarat

  13. CERTIFICATIONS& ACCREDITATIONS BRCaccreditation APEDA(MinistryofCommerceandIndustries) AwardforexceptionalperformanceinExports ISO9002 certification AwardedprestigiousISO9002certification byBVQIofU.K.forexportpromotion. Hazardanalysis& criticalcontrolpoint Accreditation of internationally recognized HACCP(HazardAnalysis andCritical ControlPoint)certification BureauVeritas This accreditation demonstrates that products,processesandservicesmeetthe highestlevelsofsafety,qualityand regulatorystandards. UKAS UKAS accreditation which ensures high standardsformanagingoccupationalhealth andsafety. USDAOrganic The facility at Nasik is USDA Organic accredited,ensuringstringentproduction normsandsoundfarmingpractices

  14. AWARDS&RECOGNITIONS BUILDING ALONG-LASTINGLEGACY GreatTaste Award In2017-18,theCompany’s ADF Soul Brand has won theprestigious‘Great Taste Award’ in the Ready to Eat category for Punjabi CholeyintheUK Best FMCG Company (SMESector) Awarded ‘BestFMCG Company’in Agri- businesssector(SME Sector) at the DHL- CNBC International Awards for 2008-09 BestOverall exportedofthe year Awarded ‘BestOverall Exporter of the Year’ (SME Sector)at theDHL-CNBC International Awardsfor 2008-09 Exceptional Performance in Exports Thecompany received prestigious APEDA award for5consecutiveyears from 1997-98 for exports promotion. SOFIAwards2017 ‘Truly product Indian’ organic category won twosilver awardsinthe SOFIawardsof2017, held bySpecialtyFoods Association,USA

  15. WarehousingandDistributionFacilities Atlanta,USA NewJersey,USA Atlanta,USA NewJersey:66,000sq.ft. Atlanta:34,000sq.ft. NewJersey,USA

  16. ADVERTISING&MARKETING ADVERTISEMENT & MARKETINGEXP % REVENUE 11.5 8.8 8.4 8.8 8.4 8.1 7.3 5.7 5.8 5.8 5.0 4.5 4.0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 PLI Scheme Incentive for Branding & MarketingExpense • The PLIschemewasintroducedtoenhancethenationsmanufacturing capacitiesandimprovenationalbrandpresenceglobally • Receivedapprovalfor PLIincentivetopromotebranding&marketing onthe globalstage • Financialincentivefor 50%ofthebudgetedoutlay oninternational branding&marketingexpensesor3%of salesoffoodproducts whichever islower,subjecttoa maximumincentiveof Rs.61.35Crore during theschemetenurefromFY’21-22to FY’25-26 • Thiswillhelp in augmentingexportsalesthrough increasedbranding expenditure

  17. ADVERTISING&MARKETING SOCIALMEDIA MARKETING

  18. GLOBALDISTRIBUTIONNETWORK 55+ COUNTRIES CANADA EUROPE 180+ ASIA NORTHAMERICA MIDDLEEAST DISTRIBUTORS HO Mumbai 2 WAREHOUSES AUSTRALIA SOUTHAFRICA 9 COUNTRYMANAGERS

  19. STRENGTHENINGDISTRIBUTION PatanjaliAyurveda UnileverCanada Positioning UnileverisaFortune500FMCGcompanysellingproducts liketea,coffee,beverages,etc.acrosstheglobe. Patanjali Ayurveda is multinationalconsumer Uttarakhand,India a rapidly growing Indian goodscompanybasedin Indianteaandcoffeebeverages,soups&wheatflour Natural,herbalandayurvedicpackagedgoods Products Geographies USAand UK UKandWesternEurope RetailChannel Mainstream/moderntradestoresaswellasethnicstores Mainstream/moderntradestoresaswellasethnic stores INVESTMENT IN DISTRIBUTION Complimentary products Stronger position with retailers CrossSelling Loyalcustomerbase

  20. STRATEGY&OUTLOOK

  21. VALUEPROPOSITIONWITHGROWTHDRIVERS ProcessedFoods Distribution GrowthStrategies Investments • QSR/CloudKitchen • IndiaBusiness • LaunchofInnovative Products • Expansion • Manufacturingcapacities • Distributionnetwork FY22Revenue FY22Revenue ₹335.3Cr ₹85.9Cr FY22ROCE FY22ROCE 33.8%* 19.6%* • InorganicAcquisition Innovativeproducts Stronger position with retailers Opportunities QSR/CloudKitchen StrengtheningDistribution Capacityexpansion CrossSelling CapacityExpansion Brandbuilding Acquisitions Loyal customerbase IndiaBusiness ProductInnovation Focusonmainstreamcustomers Plant basedFoods E-commerce Complimentaryproducts Focus onmainstreamstores 21 *ROCE=EBIT/Averageof (SegmentAssets–SegmentLiabilities)

  22. ATANINFLECTIONPOINT “ AtADFwebelieveinmaintaininghighquality standards,introducingnewandinnovative productswhileremainingcustomer centric“ StrongBrand Recall 01 Capacity Enhancement &Modernization Inorganic Acquisitions 02 06 Expandexisting distribution networkaswell asinvestmentto createnew distribution channels 05 Institutional business 03 04 LeverageDigital Technology/Ecommerce platforms 22

  23. FINANCIALPERFORMANCE

  24. STRONG&SUSTAINABLEFINANCIAL PERFORMANCE REVENUE(₹ Cr) EBITDA(₹ Cr)&MARGIN(%) PAT(₹Cr)&MARGIN (%) 9.1% 10.9% 15.0% 13.5% 11.5% 10.7% 16.7% 18.6% 18.5% 15.8% 421.2 68.3 50.1 66.5 48.5 +27.8% +32.5% 369.8 +20.3% 42.8 53.1 285.2 231.4 38.7 25.3 201.0 18.2 21.6 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22 FY18 FY19 FY20 FY21 FY22

  25. Q4&FY22CONSOLIDATEDRESULTHIGHLIGHTS PAT(₹Cr)&MARGIN REVENUE(₹ Cr) EBITDA(₹Cr)& MARGIN Quarterperformance +5.0% -25.4% -24.5% 108.2 20.6 14.9 103.0 20.0% 14.5% 11.3 15.4 10.4% 14.2% Q4FY21 Q4FY22 Q4FY21 Q4FY22 Q4FY21 Q4FY22 +13.9% Annualperformance -2.5% -3.1% 421.2 68.3 50.1 66.5 48.5 369.8 18.5% 15.8% 13.5% 11.5% FY21 FY22 FY21 FY22 FY21 FY22

  26. Q4FY22CONSOLIDATEDPROFIT&LOSS

  27. CONSOLIDATEDPROFIT&LOSS

  28. CONSOLIDATEDBALANCESHEET

  29. CONSOLIDATEDCASHFLOW STATEMENT

  30. SEGMENTWISERESULTSBREAKUP REVENUE(₹Cr) +13.9% 421.2 369.8 335.3 293.2 +5.0% 108.2 103.0 84.2 87.4 85.9 76.7 20.7 18.8 Q4FY22 FY21 EBIT(₹Cr) Q4FY21 FY22 +5.8% 78.0 73.7 68.0 64.0 -16.8% 24.7 20.6 23.4 18.5 10.0 9.7 2.1 1.3 Q4FY21 Q4FY22 FY21 FY22 ProcessedFoods Distribution

  31. GOVERNANCEFOCUSED

  32. CONSISTENTSHAREHOLDERRETURNS VALUECREATION FOR SHAREHOLDERS Rs90.1crores Returnedto shareholders in the last 13 years 30.0 Robustshareholder returnsoverthelast10 years Valuecreationthrough buyback in FY17 and FY19 during which dividend was notpaid 9.6 8.8 6.6 6.0 6.0 4.0 3.5 3.3 3.3 3.0 3.0 3.0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22* 18% 26% 21% 49% 22% 58% 37% 51% 31% 14% 12% TotalDividend(₹Cr) Sharesbuybackamount PayoutRatio= Dividend/PAT 32 *ForFY22,theBoardhas recommendedadividendofRs.4/equityshare.

  33. CORPORATESOCIALRESPONSIBILITY(CSR) CovidMeasures Education support program WomenEmpowerment CleanIndiaMission ₋Partnered with several education not-for-profit organizations to provide educational supportto facilitateregular studies, value education, personalitydevelopmentetc. ₋ADF helps in the cause of giving women a safe space to live and work by contributing towards the annual maintenance cost of a girl’s hostel in Mumbai and a girlsschoolin Porbunder,Gujarat. ₋Further the Company has provided financial aid to startavocationaltrainingcentre atNadiad ₋ Partnered with NGOs for supply of oxygen concentrator machines and distribution of food and hygiene kits to slums and village children in Maharshtra. ₋ Swachch Bharat Abhiyaan:Constructed over 100 toilets withrunningwatersupplyinNadiaddistrict. ₋ Programmes to educate villagers about proper sanitationandhygiene practices. Animal Welfare Supportto theDisabled MedicalAid Environmental Protection ₋ Contribute for annual maintenance expenses and financial aid of Cheshire Home, NGO that provides residentialcaretophysicallychallengedmen ₋ Partneredwith SIESCollege,Stephen’sHighSchool & a Spastic Society called ADAPT all located in Mumbai to impart educational support to disabled children. ₋ Partnered with two NGOs viz. Nirant Vividh Seva Trust and Samanvay Samajik Sanstha towards providing financial support to underprivileged peopleacrossIndia. ₋ Provided financial aid two hospitalsin Nadiad to purchasemedical equipment. ₋ Partnership with a NGO called Isha Outreach which is a part of the Cauvery campaign which aims at supporting farmers to plant 242 crore trees in next 12years. ₋ Involved with an animal protection organization IDA (In Defenceof Animals) since 2016thatprovides medical care to ill and injured animals and also runs neuteringdrivesforstrays.

  34. BOARDOFDIRECTORS DeepaHarris IndependentDirector VirenMerchant Non-ExecutiveDirector • 30+yearsofexpertisein highend luxury hospitalitycategory • IndependentDirectorof PVR Limited, Jubilant Foodworks, Prozone Intu Properties, Taj Safaris, Concept Hospitality and TCPL Packaging • 30+ years of experience and expertise in business management andpharmaceuticaland healthcareindustry • CurrentlyCEOofEncore HealthcarePvtLtd

  35. MANAGEMENTTEAM • UnderBimal’sleadership,ADFFoodshasevolvedfromasmalldriedfruitstoretoaglobalbrandwithfoodprocessingand • distributioncapabilitiesandpresenceinover55countries. • Further,BimalplayedapivotalroleintakingtheCompanypublicin1991.Sincethen,theCompanyhasnotonlyremaineddebt freebutalsoextremelyprofitablewithrobustfinancials. • Goingforward,theCompanyiswell-poisedforacceleratedgrowthunderleadership,guidanceandvisionofBimal. Bimal Thakkar Chairman,Managing DirectorandCEO • ShardulisaCA,CWAandCSwithover25plusyearsofexperiencewithvariousmultinationalandlargeIndiancorporates. • Shardulhasstrongknowledgeandproficiencyinareasofequity&debtfundraising,investorrelations,strategy,M&A, corporaterestructuring,MIS,accountsandtaxation.HehasbeenassociatedwiththeCompanysincelasttwoyears. ShardulDoshi ChiefFinancialOfficer DevangGandhi ChiefOperatingOfficer • DevangbringstoADFover30yearsofrichandvariedcorporateexperienceinmultipleindustries. • HejoinedasaCompanyCOOin2019andsincethenhaveplayedanimportantroleinbringingbestpracticesandoperational excellencewhichhashelpedinstreamliningofoperationsandcostreduction. • Mr.DevangGandhiisacommercegraduateandamanagementtraineefromSwitzerlandandGermany. • ShalakaOvalekarisaqualifiedCompanySecretary,CWA,andhasaBachelor’sdegreeinLawandCommerce. • Shehas17+yearsofexperienceinsecretarialandlegalfunctions.ShehasbeenworkingwiththeCompanyasCompany • Secretary, ComplianceOfficerandLegalHeadforover12years. Shalaka Ovalekar CS&LegalHead

  36. THANKYOU ADFFoodsLimited CIN:L15400GJ1990PLC014265 Mr.Shardul Doshi, CFO shardul@adf-foods.com Mr.BhavinSoni +919833537225 bhavin.soni@linkintime.co.in Mr.JinalFofalia +917738327567 jinal.fofalia@linkintime.co.in

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