Hindustan Foods Con call was today at 4:00 PM
Here are the Key highlights of the conference call π
@drprashantmish6
Here are the Key highlights of the conference call π
@drprashantmish6
Updates:
Past few years the growth drivers macro factors are
β’ GST- This had made good growth in the decentralization of the supply chain making a good place for organised share.
β’ Consolidation of contract manufacturing companies.
β’ Digital and E-Commerce increasing demand.
Past few years the growth drivers macro factors are
β’ GST- This had made good growth in the decentralization of the supply chain making a good place for organised share.
β’ Consolidation of contract manufacturing companies.
β’ Digital and E-Commerce increasing demand.
β’ Achieved the highest sales growth.
β’ Started the contract manufacturing for toilet cleaner in Sailvassa with capacity of 1000KLPA per day. Plant site was built in 7 months.
Merger:
β’ Beverage plant in Mysuru in progress.
β’ Malt Beverages plant in Coimbatore is in progress.
β’ Started the contract manufacturing for toilet cleaner in Sailvassa with capacity of 1000KLPA per day. Plant site was built in 7 months.
Merger:
β’ Beverage plant in Mysuru in progress.
β’ Malt Beverages plant in Coimbatore is in progress.
ROE
β’ Company is taking least amount of risk in dedicated manufacturing and most of ROE is fixed for the next 10-12 years.
β’ Shared Manufacturing is expected to deliver the same kind of ROE.
β’ Private Label Manufacturing has volatile ROE
Almost 75-80% is fixed ROE.
β’ Company is taking least amount of risk in dedicated manufacturing and most of ROE is fixed for the next 10-12 years.
β’ Shared Manufacturing is expected to deliver the same kind of ROE.
β’ Private Label Manufacturing has volatile ROE
Almost 75-80% is fixed ROE.
Barrier to Entry:
β’ Already invested more than 350 cr in the past few year
β’ About to invest 120 crores more for expansion within 1 year
β’ Company has long term relationship with its established customer
β’ CRAM is the niche where competitor not able to serve with same quality
β’ Already invested more than 350 cr in the past few year
β’ About to invest 120 crores more for expansion within 1 year
β’ Company has long term relationship with its established customer
β’ CRAM is the niche where competitor not able to serve with same quality
Split within Sector:
β’ Sector Agnostic in all the Foods, Personal Care, Home Care, Leather segment. Not tracked
β’ Machine for most of the product is fungible.
β’ Machine with CRAM facility has the same product produced for the next 5-10 years.
β’ Sector Agnostic in all the Foods, Personal Care, Home Care, Leather segment. Not tracked
β’ Machine for most of the product is fungible.
β’ Machine with CRAM facility has the same product produced for the next 5-10 years.
β’ Home care and Personal Care both has revenue share of 40% each
Target on Product:
β’ Business continuity Plan remains the focus in every product
β’ Any product with little expansion facility will not be in much focus for the company
β’ Company has good hold in nearby facility
Target on Product:
β’ Business continuity Plan remains the focus in every product
β’ Any product with little expansion facility will not be in much focus for the company
β’ Company has good hold in nearby facility
Client Appreciation:
β’ Some of the product of Private Label Division had some of the product which remained the highest selling product in e-commerce space.
β’ Expected Run Rate from the expansion is expected to be 1200-1500 crores.
β’ Some of the product of Private Label Division had some of the product which remained the highest selling product in e-commerce space.
β’ Expected Run Rate from the expansion is expected to be 1200-1500 crores.
Organic Growth in FMCG:
β’ Consumption of FMCG in India is continuously increasing by 5-6%. Demand continuous to be remain there.
β’ Compare of outside India, there remains good growth available in terms of per capital consumption as well.
β’ Consumption of FMCG in India is continuously increasing by 5-6%. Demand continuous to be remain there.
β’ Compare of outside India, there remains good growth available in terms of per capital consumption as well.
β’ The major growth in the last 3 years remained to be collective effort from the last 7-8 years
Organic Expansion
β’ It would both in terms of acquisition and green field expansion, as both side of growth is there
β’ There is good possibility of consolidation of players as well
Organic Expansion
β’ It would both in terms of acquisition and green field expansion, as both side of growth is there
β’ There is good possibility of consolidation of players as well
PLI Scheme: Allocation of certain money has been made in food processing segment but no amount has been announced.
β’ Company is continuously in touch of government regarding the details. But still not at mature stage.
β’ Company is continuously in touch of government regarding the details. But still not at mature stage.
β’ β’ β’
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