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True to our vision of evolving as a multi product food company, we have re-christened
ourselves with a new name. Our flagship brand ‘Kohinoor’, renowned world over for
authentic and quality food offerings, has become our corporate identity.
(Formerly Satnam Overseas Limited)
Serving Authentic Indian Gourmet
products worldwide…
“At Kohinoor Foods, we are driven by the quest for business excellence centered around an unflinching commitment to quality at every step that makes us stand out as one of India’s emerging modern food companies.”
OUR VISION
DelhiDubai
London
New Jersey
OUR GLOBAL PRESENCE
KOHINOOR FOODS – A SNAPSHOT
Global Brand•Delighting millions in 47 countries•On TESCO, Somerfield, ASDA, Krogers, Walmart, Coles & Woolworths•More than 250 thousand retail outlets worldwide
Infrastructure•One of India’s largest rice processing units and one ultramodern food processing unit •Strategic bases in US, UK and UAE with manufacturing capabilities
Global Distribution•Distributors in 47 countries•A pan Indian distribution with more than 130 distributors and 500 Stockists•Years of global distribution expertise
Knowledge Resource•World-wide consumer insights and trend•Global marketing techniques and Modern Retailing•A manpower base with talent pool from across the world
FINANCIAL SNAPSHOT
10.60
17.56%
3.84%
207.85
8.97%
5,407.8
FY’06
15.93%14.6%Return on Equity (ROE)
3.75%3.1%Net Margins
220.70154.8Net Profits (Rs. In Million)
10.36%7.89%EBITDA Margins
11.267.9EPS (Rs. Per share)
5,892.305,035.8Net Sales (Rs. In Million)
FY’07FY’05
2 year CAGR growth of 19% in PAT
Operating Profits increased to Rs 610.53mn from Rs 485.13 mn in FY’06
ROE 15.58% due to increased operating profits because of Branded Sales
Product Mix
Product Mix (FY’06)
37.76%6.36%
55.88%
Branded Basmati Rice
Unbranded & Commodity Sales
Food
A GLIMPSE OF OUR CLIENTELE
A GLIMPSE OF OUR CLIENTELE
AWARDS & RECOGNITION• Kohinoor awarded ‘Superbrand’ status in India • ‘Trend & Innovation’ award from SIAL, Paris• APEDA Award for best basmati rice export performance
since last 14 years • National Award for exceptional quality and best export
performance in agro products from the President of India• Award from World Economic Forum• Niryat Shree Award from the Government of India• The prestigious “Brand Equity” Award from the Ministry
of Commerce, Govt. of India and many more
OUR WOS IN UK - INDO EUROPEAN FOODS
• Set-up in 2001 to strengthen brand marketing in UK and Europe, the 2nd
largest market for basmati rice in the world and largest market for Indian foods
• Big multiple stores like TESCO, ASDA control 70% of the market. A strategic base to capture this huge market with manufacturing and service capabilities
• Own rice processing facility with 8 MT/hour capacity with covered area of 1,40,000 Sq. Ft. (to save import duty of 120 pound per MT).; BRC approval on the anvil
• Caters to 3 out of the 5 big multiples in UK today
• Builds synergy with KFL’s frozen foods business with a huge potential to do chilled food processing in UK
OUR WOS IN US – S.O.L. INC.• S.O.L. Inc. set up in 2001 in New
Jersey, US to strengthen brand marketing in North American markets
• Today owns 5 marketing cum distribution centres:
– New Jersey– Houston– Maryland– Chicago– San Francisco
• Presence in Krogers, WholeFoods, Costco, BJs and Walmart
• Very strong in ethnic retail marketing• Augurs a huge opportunity with
Indian foods steadily climbing the ladder from a 5th/6th position to 3rd
position in the next 3 years (Indian Food Market size is $ 1 billion)
OUR JV IN DUBAI – RICH RICE RAISERS
• A strategic base for the hugely potential middle east market, the gateway to Iran and Iraq. A very big feeder market.
• A small rice factory for polishing and packing• Presence in Carrefour, Lulu and Almayalal – the big retail
chains of Dubai• A very big market for frozen products and opens up big
possibilities in the food service sector with huge infrastructural development in this region
OUR BUSINESS SEGMENTS• Basmati Rice
• Branded Basmati (Domestic & International)
• Private Label
• Branded Foods• Commodities / Trading
Focus Segment
5,035.85,407.8
5,892.3
4500
5000
5500
6000
FY'05 FY'06 FY'07
NET SALES (RS. IN MILLION)PERCENTAGE OF BRANDED SALES
Focus Segment
4955
62
0
10
20
30
40
50
60
70
FY 2005 FY 2006 FY 2007
BASMATI RICE GLOBAL
GlobalGlobal production of basmati -2,300,000 MTA
India has a 74% share of the total production
Monsoon & other climatic conditions has no major impact on production of basmati
0.6
1.7
00.20.40.60.8
11.21.41.61.8
India 74% Pakistan 26%
Global Share of Basmati
Fig. in Million MT
BASMATI RICE DOMESTIC• Domestic
– Size of the domestic market -900,000 MTA amounting to $ 200 mn
– Branded market – Just 33% of the domestic market valued at $ 100mn
Basmati – Domestic Share
Global Share of Basmati
67%
33%
50% 50%
0%
10%
20%
30%
40%
50%
60%
70%
Volume Value
Unbranded Branded
MURTHAL - ONE OF INDIA’S LARGEST MILLING CAPACITIES
BASMATI RICE - KFL
OUR CAPABILITIES• Infrastructure
– 12,85,020 sq. ft. of area– 40 MT/hour processing capacity
• Quality Adherence– ISO 9001:2000 certified– HACCP Certified Plant– BRC Certified– Kosher Certified– GMO Certified– IMO – Organic Certification– US-FDA Compliant– EU-FSA Compliant
• Packaging Capabilities– The entire spectrum of
packaging options, traditional jute, laminates, block bottom, pet jars, non-woven bags
KOHINOOR IN GLOBAL MARKETS• The only brand with presence in 47 countries with
own distributors• Available on more than 30,000 retail outlets.
Only brand from India adorning the shelves of TESCO, the largest retail chain of UK, Somerfield (UK), Krogers and WholeFoods (US), Carrefour (Middle East), Coles and Woolworths (Australia) .
The only Indian company with global manufacturing and servicing capabilities; the key to success in the ruthless global market arena
Wholly Owned Subsidiary in UK with rice factory at port city of FelixstoweMarketing and Own distribution warehouses at 5 strategic locations of USJoint venture company with rice factory at Dubai, UAE
Growth drivers : Saudi Arabia, the world’s largest market (with Rs. 3000 cr. Size) augurs a huge opportunity for Kohinoor. Having already appointed the distributor this year, we are looking garnering at least 10% market share in the next 2 years time.
Europe is another huge market opening up for us with our UK rice factory having made fully operational.
1,092.0928.6
742.7
285.0
0
200
400
600
800
1000
1200
FY'04 FY'05 FY'06 FY'07
3 Yr CAGR 56%
Branded Basmati – Exports (Rs. In Million)
MAJOR CLIENTELE
• TESCO, Costco and Somerfield (UK)• Singapore Airlines• Tiger Food Brands, South Africa• Coles and Woolworths, Australia• Royal Emirates, UAE• Krogers and Whole Foods in US
GOING FORWARD
• Focus on branded exports and reduce dependence on private label
• Strategic bases in UK and US give a unique edge to Kohinoor Foods to garner market share in Europe and America
• 60% of basmati exports was branded in FY 2006. We intend to make it 90% by FY 2009
• Addition of another 10 countries by FY 2009
16431808.8
2200
0
500
1000
1500
2000
2500
FY'05 FY'06 FY'07
KOHINOOR IN DOMESTIC MARKET• No. 1 Branded Basmati Player in India.• Kohinoor shares around 52% (in value terms)
and 49% (in volume terms) of the total organised basmati rice market in the modern retail format in the country. (Source: AcNielsenORG-MARG).Kohinoor – the largest selling brand in the domestic market having 38% market share (Survey by TNS)
• The only brand with a pan-Indian distribution base; more than 130 distributors and 500 stockists & available at more than 2,20,000 retail outlets.
• Strong presence in the premium segment of the market; brand commands huge respect both at trade and retail level
• Separate cell to look after the modern retail format, the catalyst of growth in branded segment
Growth drivers : Changing consumer preference towards branded and packaged basmati, Emergence and exponential growth of big format retail in India (Present share of 52%) and Strong rural penetration of branded basmati
Branded Basmati – Domestic (Rs. In Million)
2 Yr. CAGR – 16%
MAJOR CLIENTELE
• Amway India• Taj Group• Oberoi Group• Reliance Retail• Big Bazaar• Shoprite• Spencers’
GOING FORWARD
• Focus on enhanced branding of ‘Kohinoor’
• Modern retail format – the next big opportunity
• Retail growth in semi urban and rural India – boom for growth
• Tie-ups with big boys of retail
• Entry into newer markets with appointment of 5 more distributors by FY 2007
•Food is a USD 5 Trillion market of which processed foods is 80%•India is second largest producer of vegetables (99 Mn Tones) after China•India is second largest producer of Fruit (50 Mn Tons) after Brazil.•Indian food retail sales in 2005 in the UK :- GBP 508 Million ( Rs. 4000 Cr.)•Sales of microwaveable rice in UK is : GBP 53 Million (Rs. 425 Cr.) & growing at 35%
Strong Fundamentals
India is the 3rd largest food producer in the world
Shift in consumption patterns
Opportunity to overcome inefficiencies in supply chain
Enormous PotentialValue added ready to eat market to
expand exponentially
Increasing export potential for ethnic Indian foods
Enhance profitability through improved efficiencies
READY TO EAT FOOD (RTE)
•Ready to eat market (RTE) to grow to $ 220 Mn by 2010.•Mckinsey estimates the CAGR in RTE domestic market to be 200% over next 2 years.•Domestic market estimated at $25 mn in 2008.
FOODS – OUR PASSION• Synergic move in the year 2004• Created a world class infrastructure at
Bahalgarh (Haryana) with modern food processing capabilities
• A slew of product lines on the international format, designed for today’s times
A VIEW OF OUR BAHALGARH FACTORY
OUR CAPABILITIES• Infrastructure
– 2,06,571 sq. ft. of area– 50,000 Meals per day on the ambient side and 20 MT per day on the frozen
foods side• Quality Adherence
– HACCP Certified– ISO 9001:2000 Certified– GMP Certified– BRC Certified– Kosher Certified– US-FDA Compliant– EU-FSA Compliant– Subscribing to International Business Excellence Model
• Complete System Documentation.• Kaizen
PACKAGING CAPABILITIES
• Flat & SUP Aluminium Retort Pouches • Microwaveable Transparent Retort Pouches• Multi Layer Barrier Trays • Glass Jars• Aluminium Heat Sealable Containers• High Barrier Microwaveable Rigid Cups• PP Jars
BRANDED FOODSPresence in more than 20 countries with in excess of 150 SKUs
Captured mainstream markets of US, UK, Canada, Australia, Malaysia, Japan, Singapore, Mauritius with entry in big multiples
Created new product categories with Rice & Curry – Microwaveable ready meals in the ambient format
The only Indian food brand in International flight menu; Malaysia Airlines and Emirates. Branded Foods Turnover in Rs.
Million
91
224
374
050
100150200250300350400
FY 2005 FY 2006 FY 2007
CAGR – 100%
KOHINOOR IN FOODSA very strong presence in international retail chains in a very short span of time
TESCO, Somerfield, ASDA and COSTCO in UKColes and Woolworths in AustraliaTiger Brands, South AfricaHankyu, Daimaru, Takashimaya, Seijo Ishi in JapanWalmart, BJs, Whole Foods and Krogers in USCostco, Sotheby in CanadaMustafa Centre and 7 Eleven, SingaporeShoprite in MauritiusGlobus and Metro in Switzerland and RomaniaCarrefour in Middle EastMalaysian Airlines
FEW CASE STUDIES
TESCO• Kohinoor has captured 48% of the ethnic shelves of TESCO.• Product lines include; Basmati Rice, Rice & Curry, Rice Treat,
Cook-in Sauces, Cooking Pastes, Spices & Seasonings, Lentils and Wheat Flour
• YOY Growth – More than 50%
SEIJO ISHI, JAPAN• Kohinoor Heat & Eat Curries and Cook-in Sauces – Espousing
India’s authentic taste have become great favourites for mainstream Japanese.
• As of today, selling more than 15,000 units per week across Seijo Ishi Stores in Japan
OUR PORTFOLIOAMBIENT FOODS
RICE & CURRY – READY MEALS
RICE TREAT-MICROWAVEABLE RICE
HEAT & EAT CURRIES
COOK IN SAUCES
COOKING PASTES
CHUTNEY
SPICES POWDER
WHOLE SPICES
SEASONINGS
OUR PORTFOLIOFROZEN FOODS
SNACKSCocktail Samosa, Aloo Bonda, Paneer Tikka, Idli, Medu Vada, Punjabi Samosa, Seekh Kebab, Paneer Tikka, Shami Kebab, Vegetable Pakora,
BREADSAloo Paratha, Paneer Paratha, Peas Paratha, Plain Naan, Garlic Butter Naan, Amritsari Kulcha, Peshawari Naan,
READY-MEALSHyderabadi Vegetable Biryani, Paneer TikkaBiryani, Madurai Lemon Rice, Chinese Fried Rice and Soya Keema Biryani
CURRIESPeshawari Dal Makhani, Mutter Paneer, Palak Paneer, Mumbai Pav Bhaji
CUT VEGETABLESAll sorts of pre-cut vegetables
GOING FORWARD• Our recent foray into frozen opens up the 3 times bigger global frozen foods market• Shipments already effected to Singapore, Mauritius and UK.• A path breaking innovation in 7 Eleven Stores, Singapore with frozen foods• Plans to add another 7 countries by FY 2007 and another 30 countries by FY 2009• Plans to add another 60 SKUs by FY 2008 with expansion of capacity to 1,20,000 meals
per day from 50,000 level in the ambient side • Significant thrust to food service
– Papa John – Frozen Soups– Emirates Flight Catering, Dubai - Sauces– Barista – Ambient Pastas– Costa Coffee – Extension as a Commissary – Oberoi Flight Service – Indian snacks for international flight catering
• Entry into new markets and further penetration to mainstream retail chains; On the anvil:– Morrissons, Sainsbury and Waitrose (UK)– Target in US– NETTO in Holland etc.
• Strategic tie-ups with big boys of foods; S&A Foods and Gazebo in UK, Sunrice in Australia
ADVANTAGE KOHINOOR FOODS
• A keen understanding of International retailing trends and merchandising at retail shelves
• Product innovation catering to modern lifestyle needs• Credible infrastructure and supply capabilities• Experience of catering to the most demanding international
retail chains• Portfolio designed to cater to modern retail formats• Shelf ready packaging
• Experience of handling a complex multi-SKU food portfolio
• The only Indian integrated foods company with control on entire value chain of the business – International brand presence and distribution network– Global manufacturing and service capabilities– A thriving global knowledge base
• A well diversified business model; de-risks businesses with not relying on a single customer/country
FINANCIAL REVIEW FY 06-07(SALES ANALYSIS)
• Branded sales contribute almost 62% to revenues in 2007 in comparison of 49% in 2005.
• Branded sales increased by CAGR of 25% in last 2 years. 2,476.7
2,961.0
3,897.2
0
1000
2000
3000
4000
FY'05 FY'06 FY'07
BRANDED SALES (RS. IN MILLION)
4955
62
0
10
20
30
40
50
60
70
FY 2005 FY 2006 FY 2007
CAGR-25%
• Branded basmati rice increased with a CAGR of 22% in last 2 years.
• Branded Foods business increased with a CAGR of 100% in last 2 years
2,385.7 2,737.43,522.8
0
1000
2000
3000
4000
FY'05 FY'06 FY'07
91.0
224.0
374.4
0
100
200
300
400
FY'05 FY'06 FY'07
Branded Basmati Rice (Rs. In Million)
Branded Foods (Rs. In Million)
CAGR – 22%
CAGR – 100%
• Net sales increased by 8.96% to Rs. 5892.3 mn in FY’07.
NET SALES (RS. IN MILLION)
5,035.8 5,407.7
5,892.3
4500
5000
5500
6000
FY'05 FY'06 FY'07
Net Sales (Rs. In Million)
EBITDA MARGIN
NET PROFITS (RS. IN MILLION)
PROFITABILITY ANALYSIS
• The EBIDTA margin increased from 7.89% in FY’05 to 10.36% in FY’07 due to favorable product mix shift
• Net Profit increased with CAGR of 19% in 2 years due to increase in operating profit margins because of Branded Business
7.89% 8.97% 10.36%
0.00%
5.00%
10.00%
15.00%
FY'05 FY'06 FY'07
154.79207.85 220.70
0
100
200
300
FY'05 FY'06 FY'07
CAGR – 19%
Net Margins
RETURN ON EQUITY
• Net Margins increased from 3.1% in FY’05 to 3.75% in FY’07
• EPS increased to Rs 11.26 from Rs 10.61 in FY’06
• Return on Equity increased from 14.6% in FY’05 to 15.58% in FY’07.
3.10%3.84% 3.75%
0.00%
2.00%
4.00%
FY'05 FY'06 FY'07
14 . 6 0 %17 . 5 6 % 15 . 9 3 %
0.00%
20.00%
F Y '0 5 FY '0 6 F Y ' 0 7
7.15%
8.60%
44.13%40.12%
Promoters FII & FICorporate Bodies Public & Others
As on 31ST March 2007
SHAREHOLDING PATTERN
154.8
5.7
54.5
215.0
43.5
171.5
57.9
119.7
349.1
306.3
69.4
301.3
83.4
3,926.3
4,686.7
5035.80
FY’05
208.00
-7.20
76.20
277.02
20.59
256.43
81.27
124.70
462.40
359.50
85.80
355.08
90.33
4054.69
4945.40
5407.80
FY’06
220.72
-8.00
95.50
308.22
20.85
308.21
104.07
198.24
610.51
460.58
97.76
429.77
109.32
4210.21
5307.64
5918.15
FY’07
PAT
Deferred tax
Provision for current Tax
PBT
Non Operating Income/Other Income
OPBT
Depreciation
Finance Charges
OPBDIT
Manufacturing Expenses
Staff Cost
Selling Expenses
Administration expenses
Raw Material consumed
Operating Expenses
Net Sales
Particulars
PROFIT & LOSS STATEMENT(Rs. In Million)
Note :- Non operating income has been included in Net Sales.
3,761.3168.0
2,496.72,664.7
36.7
863.9196.0
1,059.9
Mar 05
4801.20932.902620.303553.20
29.5
1022.50196.0
1,218.50
Mar 06
6039.601959.802641.984601.7821.55
1220.27196.0
1,416.27
Mar 07
TOTAL (1+2+3)(b) Unsecured(a) Secured
3.Loan
2.Deferred Tax Liability/(Asset)
(b) Reserves & Surplus(a) Share Capital
1.Share Holder's FundI. Sources of Funds
Particulars
SOURCES OF FUNDS(Rs. In Million)
4,801.2034.7
280.55206.98487.53582.88620.3
3026.34479.43991.9206.7106.75461.20406.2867.40567.95
Mar 06
6,039.603,761.3TOTAL (1+2+3+4)31.00-4. MISCELLANEOUS EXPENSES349.75197.2(b) Provisions346.19273.6(a) Creditors and other liabilities695.94470.8B. Current Liabilities1160.69393.5(c) Others1019.27554.0(b) Debtors
3551.412,708.1(a) Inventories5731.373,655.6A. Current Assets 5035.43,184.83. Net Current Assets (A-B)348.05129.32. Investments145.1927.5Add CWIP479.93419.7Net Block490.04336.5Less Depreciation969.97756.2Gross Block625.12447.21. Net Fixed Assets
II. Application of Fund
Mar 07Mar 05ParticularsAPPLICATION OF FUNDS (Rs. In Million)
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