HERITAGE FOODS INDIA LTD

The Heritage Group, founded in 1992 by Sri Nara Chandra Babu Naidu, is one of the fastest growing
Private Sector Enterprises in India, with three-business divisions viz., Dairy, Retail and Agri under its flagship
Company Heritage Foods (India) Limited. Heritage recognized one of India’s largest and most successful
dairy for the last 16 years. Based in Hyderabad with and existing brand presence in Andhra Pradesh, Tamilnadu,
Karnataka, Kerala and Maharastra. Heritage is known for its high quality standards and premium range of mil
and milk products and following high quality standards. Heritage is having 12 Packing stations, 74 chilling
centers/bulk coolers with operationally safe process equipments. Heritage brand is seen in 8.0 lakh households
today.

With an objective of "Bringing prosperity into the rural families through co-operative
efforts", he along with a few like-minded, friends and associates promoted "Heritage Foods" in the
year 1992 taking opportunity from the Industrial Policy, 1991 of Government of India and he has been
successful in his endeavourer. At present, Heritage has market presence in the states of Andhra
Pradesh, Karnataka, Kerala, Tamil Nadu and Maharastra. More than three thousand villages and three
lakh farmers are being benefited in these states. On the other side, Heritage is serving millions of
customers needs, employing more than 5000 employees and generating indirect employment
opportunities to more than 10000 people. Beginning with a humble annual turnover of Rs.4.38 crores
in 1993-94, the sales. Turn over has reached close to Rs.350 crores during the financial year 2006-
2007

Mission & Vision

Mission

Bringing prosperity into rural families of India through co-operative efforts and providing customers with
hygienic, affordable and convenient supply of " Fresh and Healthy " food products.

Vision

To be a progressive billion-dollar organization with a pan India footprint by 2012.

To achieve this by delighting customers with "Fresh and Healthy" food products, those are a benchmark
for quality in the industry.

We are committed to enhanced prosperity and the empowerment of the farming community through our
unique "Relationship Farming" Model.

To be a preferred employer by nurturing entrepreneurship, managing career aspirations and providing

innovative avenues for enhanced employee prosperity
BOARD OF DIRECTORS:

Sri D. Seetharamiah is the chairman of this company. Smt N. Buvaneswari is the vice-
chairman& managing director. Another persons namely Dr. V Nagaraja Naidu, Sri N.P
Ramakrishna, Dr. N.R Sivaswamy, Dr. A. Apparao are directors of this company. Sri Nara
lokesh is a Executive director of this company

LOGO:

SUBSIDIARIES:

 Heritage Finalease Limited

 Heritage International Limited

 Heritage Agro Marine Private Limited

HERITAGE SOLOGAN:

When you are healthy, we are healthy

When you are happy, we are happy

We live for your “HEALTH &HAPPINESS”

 “Don’t ask for milk
Demand Heritage”

ANNUAL TURNOVER:

The company beginning with a humble annual turnover of Rs.4.38 Crores in the year of 1993-
94. The sales turnover reaches close to Rs.558 crores during the financial year 2007-2008.
The target of Heritage Foods India ltd aiming for Rs.700 crores during the year 200-09.

MARKET SHARE:

HFIL went to a public issue to raise resources which was over subscribed
54 times and its shares are listed under”B1” category on BSE & NSE .the face value of share is
Rs.10.

Ex:
Time 06 Feb (15:10:32)
Prev Close 60
Mkt Cap (Rs Cr) 71.30
Last traded 62.00

QUALITYPOLICY:

 “We are committed to achieve customer satisfaction through hygienically

processed and packed mil and milk products we strive to continually improve the
quality of products and services through up gradation of technology and system”

FOOD SAFETY POLICY:

 We are committed to procure, process & supply safe & whole some milk & milk products
to our valued customers through

 Implementation of food safety Management system in raw material selection

  Continual up gradation of technology, system & services

 Ensuring bests Hygiene & sanitation practices by complying with statutory & regulatory
requirements

 Providing resources to achieve measurable objectives through continual improvement

ISO-22000-2005:

 Heritage is the fastest growing company in dairy industry with turnover of 700 crores
from milk & milk products 200 crores from allied business with highest return on
Investment

 It is a preferred brand delighting the customers with safe & wholesome milk & milk
products of high quality &service at competitive price

 It excels in benchmark business practices in Indian dairy industry

 Heritage is a team of highly motivated committed, professionals. Who act as like

entrepreneurs practicing innovation, integrity & honesty.

BENEFITS OF ISO 22000-2005:

 To make products more acceptable internationally, as there is a nearly unanimous

worldwide acceptance of the ISO-22000 series the food safety management system
standards

 To reduce risk of product & service liability claims

 To enable the company to export to worldwide where ISO22000 certification is expected.

 To enhance the communication between organization both up stream & down stream in
the food chain Identify that all relevant food safety hazards are identified & ad equably
controlled at each step with in food chain, delivering safe product

PRODUCT PROFILE
 Heritage milk a naturally nutritive rich fresh- wholesome food par excellence with self-
contained productive food characteristic. Hygienically procured, pasteurized and poly packaged
under PFA standards. Heritage milk is a complete food for any age, be it children. Teenagers,
adults, expecting mothers as older citizen’s rich with just about all-essential nutrients.

Heritage milk is full of strength building proteins, energy giving carbohydrates &
fats, bone & teeth building calcium & phosphorus and the essential life giving vitamins

Milk Products Of Heritage Dairy:

Milk: Toned Milk, Double Toned Milk, Whole Milk, Cow Milk, Full cream milk

UHT Milk In Tetra packs:

Toned milk, Double Toned Milk, STD Milk, Slim Milk, Fresh cream.

BY PRODUCTS:

Butter Milk Skim Milk Powder

Flavoured Milk (Vanilla, Curd (cup & pouch)

Pineapple, Elaichi,
Badam, Pista, Chocolate, Ice-Creams
Strawberry)
Breads
Doodh peda

Lassi (fruit & sweet) Biscuits

Cooking Butter
Honey
Panner

Buffalo Ghee Cow Ghee

Cookies

Marketing of Milk and Milk products:

 One of the most crucial links in the marketing of milk and some of milk products is that,
it is highly perishable commodity. It cannot be stored in its original state for more than four
hours and therefore billing and packing is required for increasing its keeping quality.

Further it is chemical saving fat and also essential proteins, minerals, vitamins and water as its
main ingredients. Therefore it can be suitable concerted into butter, ghee, milk powder and
reconverted into milk powder and reconverted into milk, when required thus these things will, be
kept in mind, while planning effective.

Information Technology:

Heritage Company using like “SAP”, “ERP” latest packages, connecting easily to all IT
departments in each plant. Therefore the main advantage of these packages is we have easily
access the data from different plants and easily to enter the data and modified the data.

Heritage Network:

TotalCenters-62

Chilling centers-50 Packing Stations-11

Major chilling ceters-22 Andhra Pradesh -8

Mini chilling centers-12 Karnataka -1

Ice Plants -5 Maharastra -1

Tamilnadu -2
Bulk cooling Units -11

Total farmers 8 lakhs

Daily Collection of Milk 8 Lakhs liters

 Milk Collections Centers 8784

Total Employees (Directly & 5000

Indirectly)

FUTURE ENHANCEMENT

• To enhance supplies to meet the growing demand.

• To enhance productivity of the cattle and the capacity of farmers.

• To establish and integrate and cold chain, packaging and transportation

• Facilities of more milk in unadulterated form village collection sites to the length and
breadth of the company.

• To take advantage of the international market under the regime of reduced subsidies is
multi-faceted and necessary

• This is the exciting challenge, which Heritage grids itself to take in its purest to add value
to its existence

• To cover Uncovered markets and to grab more sales

• Exploring Possibilities to export the products to most of them foreign countries

MARKETING DEPARTMENT:

 To ensure 100% delivery of milk packets to Agents before 5.00AM Daily

 To increase sales turnover by10%

 To maintain customer satisfaction index not less than 80%.

The marketing department covers all the activities related to supply of milk & milk products in
the states of AP, Karnataka, and Tamilnadu & Kerala. It operates through its sales office (11),
Distributing agents is 2582.

Presently company supplies 6lacks liters of milk per day on average. There are 6 varieties of
milk & 14 milk products and 3 Variants of UHT milk
On the whole company and sales offices together focus on identifying customer needs through
regular feedback surveys and making supplies according to their needs.

Marketing departments works with a comprehensive objective of supplying safe healthy product
to customer forever.

Sales offices involve in day-to-day operations of supplying milk & milk products and reports to
the corporate office regularly on the need of customer feedback and their needs at corporate
office strategies are formulated and sent to sales offices for their execution.

“Be a Partner in our Growth”

HERITAGE PARLOUR:

• Join Franchisee Chain Expansion of Heritage and create profitable Franchisee partnership
with Heritage parlours.

• Excellent Business Model for New Entrepreneurs/ Business owners

• No Franchisee fee during 2008-09

• Willingness to invest Rs.1.0-1.5 Lakhs

• Earn Rs.10000/- to Rs.20000/- Per Month

Retail division

Rural Retail

Heritage Foods India ltd started the Rural Retail business with the
objective of reaching FMCG products to villages with population of
less than 5000

• Strengths

• Efficiencies of centralized procurement

• Large network of milk collection agents, at most interior villages, who are franchisees of the
“Heritage Store"
 • Large network of farmers who supply milk to Heritage two times a day

• Rural customers have the option of purchasing FMCG and other products against their milk
account, thus easing rural liquidity

Opportunity

Large Untapped rural market.

The Vendor led distribution network does not cover most of the villages.

High dependence on the wholesale market at the closest town for all the FMCG needs.

Format

Brand “Heritage Store“.

Avg. floor area of 100 sq-ft.

Franchise arrangement with the milk collection agents.

As on date Heritage operates over 1800 stores across Andhra Pradesh.

Agri Division

Value proposition for farmers

Annual Crop calendar that would ensure much higher annual income per unit area.
Technical guidance- Agri advisory services, regular training of farmers, credit linkage and input supply.
Package of improved farm practices for better productivity & quality.
Assured Market at doorstep.
Assured timely payments.
Transparency in operations.

Vegetables and seasonal fruits are produced through contract farmers and reach pack houses via
collection centers strategically located in identified villages for washing, sorting, grading and packing and
dispatch to the retail stores through DCs