### **Company Overview** Founded in 1992 and headquartered in Hyderabad, Telangana, **Heritage Foods Limited (HFL)** is a leading Indian FMCG company with a core focus on branded dairy, value-added dairy products, and sustainable food innovations. The company operates under an integrated, farmer-to-consumer model known as the "federated supply chain," emphasizing freshness, quality, and nutrition. With a strong foundation in South India, Heritage is rapidly expanding into North, West, and East India, aiming to become a nationally recognized nutrition-first food enterprise. Heritage Foods serves over **10 million consumers daily** and reaches **1.5+ million households** across **17 Indian states**, supported by an extensive network of over **300,000 dairy farmers**. --- ### **Core Business Segments** 1. **Dairy Products (B2C)** - Key Products: Fresh Milk, Curd, Paneer, Ghee, Butter, Flavored Milk, Lassi, Milkshakes, UHT Milk, Buttermilk, Ice Cream, Frozen Desserts, A2 Milk, and Premium Sweets. - Brand Portfolio: **Heritage**, **Alpenliebe Ice Cream**, **Livo** (flavored milk), and **Sampurna** (premium cow milk). - Over **400 SKUs** across staples and value-added products (VAPs), ensuring a diversified and seasonally balanced portfolio. 2. **Subsidiaries & Associated Businesses** - **Heritage Nutrivet Limited (HNL)**: Fully owned subsidiary engaged in livestock feed and supplements. HNL operates in 9 Indian states and recorded a **37% YoY growth in feed volumes** and **34% revenue growth** as of Oct 2025. The subsidiary serves over 300,000 farmers with over 15 products such as Power, Milk Rich, Gomitra, and HeritaMin. - **Heritage Novandie Foods Private Limited**: A joint venture with French yogurt giant Novandie (Andros Group), restructured in **July 2025** as a wholly owned subsidiary, enhancing HFL’s control over high-margin yogurt and fermented drink categories. 3. **Renewable Energy Division** - Installed **12.14 MW** of captive solar and wind energy capacity (up from 10.39 MW earlier), positioning Heritage as one of the few Indian dairy companies fully integrating green power into operations. - Aims to achieve 100% sustainable operations and reduce carbon footprint through ongoing investments in clean energy. --- ### **Recent Strategic Developments (2025 Highlights)** #### **Acquisition of Get-A-Way (Oct 2025)** - Heritage acquired **Get-A-Way**, a premium, healthy dessert brand with FY25 double-digit crore revenue and projected revenue doubling in FY26. - Get-A-Way serves over **8,000 orders per day** across **35+ cities** via quick-commerce, e-commerce, and five offline parlor locations. - The acquisition strengthens Heritage’s presence in high-growth segments such as **no-added-sugar, high-protein, and nutrient-rich desserts**, enabling nationwide scale-up through Heritage’s distribution and manufacturing ecosystem. #### **Expansion of Sampurna Cow Milk (Oct–Nov 2025)** - Launched in **Hyderabad and Bengaluru**, expanding from earlier North and East India rollouts. - Positioned with the tagline **"Pure goodness from village"**, emphasizing purity, authenticity, and rural sourcing. - Gaining traction due to rising demand for premium, traceable dairy products. #### **National Scale-Up of Yogurt (Oct 2025)** - After successful regional pilot, Heritage scaled up its yogurt product line **nationally**, leveraging strong consumer trial and repeat purchase rates. - Yogurt innovations include **Creamilicious Curd**, **Probiotic Buttermilk**, and **Mamie Yova** (French-style yogurt through Heritage Novandie). #### **Greenfield Ice Cream Plant (Under Development – FY26)** - Investing **₹200+ crore** in a new **greenfield ice cream manufacturing unit** set to commence operations by end-FY26. - Ice cream is expected to become **less seasonal** due to reduced GST (18% → 5%), enabling year-round household penetration. - Projected to start contributing revenues in **FY27**, capitalizing on a dairy dessert market projected to exceed **₹1 trillion by 2033**. --- ### **Operations & Infrastructure (As of Nov 2025)** | **Metric** | **Value** | |-----------------------------------|---------------------------------------------------------------------------| | Milk Procurement Volume | ~1.76 million liters per day (2nd largest private milk procurement network in South India) | | Processing Capacity | 2.83 million liters per day (MLPD) | | Chilling Capacity | 2.5 MLPD | | Number of Processing Plants | 18 (all near consumption hubs) | | Chilling Centers | 190 | | Village Procurement Centers | >10,000 | | Renewable Energy Capacity | 12.14 MW (solar and wind) | | Daily Consumer Reach | 10 million+ | - **Federated Supply Chain Model**: 18 processing plants located **within 100 km of markets**, with a **50–60 km distribution radius** to ensure milk freshness and quality. - **No milk holidays** in over 30 years—ensures **assured procurement and timely farmer payment (twice to thrice monthly)**. --- ### **Distribution & Omnichannel Network** - **Total States Covered**: 17 - **Retail Outlets**: 180,000+ (General Trade) - **Modern Retail & E-commerce**: Presence on **16 platforms** including Zepto, Blinkit, BigBasket, and WhatsApp Commerce. - **Direct-to-Consumer (D2C) Channels**: - **859 Heritage Parlours** - **386 Heritage Happiness Points** (company and franchisee-owned) - **Heritage Touch App** & W-Comm digital platform - **Digital Sales Contribution**: ~15–16% of total sales - **Franchise & Agent Network**: >7,400 distributors and agents --- ### **Financial & Growth Performance** - **Revenue CAGR (FY22–FY25)**: **16%** - **Gross Margin**: ~25% - **EBITDA Margin**: ~8% - **Consolidated FY25 Performance**: - Achieved **8.1% EBITDA margin** and **24.83% gross margin** as of 9M FY25 - **Net Debt-Free & Rated Investment-Grade**: CRISIL rating of **INR A+ (Long-Term)** and **A1 (Short-Term)** --- ### **Growth Strategy (Pillars)** 1. **Distribution Expansion**: Investment in warehousing, cold-chain logistics, and ambient distribution. 2. **Value-Added Product (VAP) Focus**: - VAPs contributed **28% of revenues** (growing toward 40–50% long-term) - Key drivers: Paneer (50%+ revenue growth), Curd, Yogurt, Ghee, Ice Cream, Flavored Milk 3. **Brand Loyalty**: Aggressive consumer marketing—national milk campaigns, digital promotions, and social media. 4. **Operational Efficiency**: Adoption of **ERP, SAP, and AI-driven route optimization** for logistics and inventory. --- ### **Sustainability & Farmer Empowerment** - **Relationship Farming Model**: Over **300,000 farmers** across 9 states supported via: - Timely payments (no defaults in 32+ years) - Subsidized cattle feed - Free veterinary care - Cattle insurance - Technical support via **Heritage VET+** app - **Zero Debt & ESG Leadership**: Strong focus on renewable energy, water conservation, and waste reduction.