NHC FOODS LIMITED NHC FOODS LIMITED NHC FOODS LIMITED NHC FOODS LIMITED

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Industry Overview

Flour Mills 516

Fish Processing 568

Food & Veg 5,293

Meat Processing 171

Aerated Water 656

Milk Products 266

Sugar Mills 429

Solvent Extract 725

RTE, Culinary 1,74,296

Dairy

The Industry Structure -

Food Processing

Fruits &Vegetables

Meat & Poultry

Fisheries

Packaged Food

Beverages

Staples

Processed Milk Products

Raw & Processed Fruits & Veg

Poultry , Cattle, Sheep, etc

Marine Fisheries, Frozen & Minced

Snacks , RTE, Culinary Ingredients

Carbonated Drinks, Beverages

Sugar, Wheat, Bread, Flour

Market Segmentation & Units In The Organized Sector

Key Highlights-

80%

77%

50%

48%

15%

5%

Packaged Food

Beverages

Staple Foods

Fruits & …

Dairy Sector

Meat & Poultry

� The Food processing Industry is valued at USD 70bn and is growing at 14% annually and theIndustry ranks fifth in terms ofproduction, consumption, export and growth;

� As per CII estimates, the food processing sectorhas the potential to attract USD 33 billion in thenext 10 years & generating employment of 9million person days;

� India is the land of spices and seeds producing allvarieties worth over INR 45 billion amounting to25%-30% of world production.

� The size of the semi-processed and Ready-To-Eatpackaged food is over USD 1 billion and isgrowing at over 20%

� Packaged/Convenience Foods, especially culinaryingredients comprises 80% of the RTE segment.The market for this segment has been growing at20% with the market for culinary ingredientsgrowing at almost 18%

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Food Retail In India

� India is expected to become the world’s 5th largest consumer market by 2025from its current rank of being 12th largest;

� Food is the largest segment in terms of its contribution to the total value ofthe retail market contributing as much as 50% of the value of final privateconsumption;

� India’s urban population is increasing with around 41% expected to live incities and towns by 2030. Increasing urbanisation has increased the demandfor food consumption per family.

� Aggregate food consumption is expected to grow from INR 17 tn today toINR 34 tn by 2015 and INR 70 tn by 2025;

Market Segmentation-

62%9%

8%

6%

4%4%

4%

2%

1%

Food

Fashion

Liesure & Entertainment

Fashion Accessories

Consumer Durables

Health, Beauty & Pharma

Furniture

Telecom

Books & Music

Food Retail landscape

Traditional Format

Weekly Markets

Local KiranaStores

Govt. Shops

Modern Format

Super Markets

Dept. StoresShopping

MallsHyper

Markets

5000 sq/ft -

15000 sq/ft800 sq/ft -1000

sq/ft100,000 sq/ft

15000 sq/ft -100,000 sq/ft

Food/, Grocery, Household Products

Apparels, Durables, Accessories

Food, Durables, Apparels, Furnishings, etc

Food, Grocery, Apparel, Durables,Accessories

Consumer Food Needs -

Hawkers/ Other s

Fair Price Shops

Traditional Retailers

Organized Retail

Small –Medium

Retail Outlets

Open Format Outlets

Super Markets/ Food Chains/

Hyper Markets

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Snapshot of performance in 2010-11

International Sales Promotion:

NHC participated in Gulf food festivalat Dubai – 27th Feb. – 2nd Mar, 2011

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Our Infrastructure

� Fully integrated processing facility at Pardi, Gujarat – Set upat an appx. cost of INR 95 Mn

� Technology for the integrated and automated processingimported from Buhler, Germany;

� Capacity – 1ton/hr for processing Spices & 2tons/hr forprocessing seeds;

� On a 3 shifts basis/280 days annum, capacity – 6,720 tons ofspices & 13,440 tons of seeds

Processing Infrastructure -

- Laboratory

Plant at Pardi-

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NHC Accreditations

ISO 22000:2005 – Food Safety Management System &

ISO 9001:2008 Certification

Government of India’s Recognized Star Export House

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Business Model - NHC� 50 years of International business in agri

products– Spices, Seeds, etc

� Strong network with farmlands forprocurement – 50%-60% procurement is directlyfrom the farmlands & balance from millers and‘mandi’

� Global Client base– Singapore, USA, MiddleEast, Brazil, China, Australia, Europe, etc

� Already has 2 brands which are distributed only inthe overseas markets – ‘Indibite’ for bulk spiceand culinary products & ‘Eatmor’ for ready toeat products

� Fully integrated processing facility inGujarat to cater to bulk process ordersinternationally and private labels + culinaryproducts in the domesticmarket

� Launch of ‘EATMOR’ as a retail brand in thedomestic retail markets limited to savorysnacks on an outsourced processing model with in-house seasoning base recipes

� Launch of ‘SAAZ’ – culinary ingredientsbrand in the domestic retail markets entirelyprocessedwith in-house recipes at Gujarat facility

� Private Labels - Shift in business model tocater to a segmented market being Hotelchains, Food chains, Branded Processors ,etcprocessedat Gujarat facility

Key Notes -

Inherently De-risked Model

The vast expanse of existing international trading & Semi processing clientele de-risks/cross subsidizes the business modelThe vast expanse of existing international trading & Semi processing clientele de-risks/cross subsidizes the business modelsince, all the 3 revenue streams of processed products can effectively substitute the ever growing order book on the bulk trade side.This is possible since, the base raw material for the processing of all the 3 revenue streams remain the same . This also offers thebusiness model a huge scale advantage on procurements.

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‘‘SAAZ’

Sa Re KhaNa

Grounded Masalas

Hot Chilli Powder

Kashmiri ChilliPowder

Sabji Masala

Coriander-CuminPowder

Noodes

Black Pepper Powder

Chat Masala

Meat Masala

Chicken Masala

Turmeric Powder

Tea Masalas

Cumin Powder

Coriander Powder

Pav Bhaji Masala

Garam Masala

Blended Masalas

Our Upcoming Product -

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Marketing, Distribution, Branding………Roll Out

�Market leadership varied on masala type sold and not on single brand

The Roll-Out Plan – Pan India

2011-12

2012-13

2013-14

2014-15

2015-16

MaharashtraGujaratGoa

Rajasthan

Madhya PradeshChattisgarhDelhi

PunjabUttar PradeshAndhra Pradesh

BengaluruTamil Nadu

Phase I

Phase II

Phase Phase III

�No clear leader in the urban market - In terms of a single brand

Roll Out – Phase I : Maharashtra, Goa, Gujarat

Mumbai

Mah. & Goa

Gujarat

Market SizeRs. 4,360 millions

20 millions kgs

Rs. 2,200millions

10 millions kgs

Top 3 Brands

Everest ;Wagmare;Badshah; Suhana

Badshah,Mahalaxmi, Ramdev, Jalaram

Coverage 18 Zones

8 Regions& 63 towns

5 Regions& 63 towns

Sales Force 19 22 22

Company to target urban consumers first – Brand Promotion in Urban Towns

Company penetration in the above market – target 1% of market share in phase I

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Marketing, Distribution, .………Media Plan

Platform To Be Used

TV Radio Theatres Print

GEC *

Movie

Regional

Digital Format

Week-ends

Magazines News Papers

English -Movies

English -Female

English

Local

5 No’s

Regional

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Strategy & Vision

� Continuation In Global Trading & Semi Processing Activity – Global Client Base as an outlet for processed output � Continuation in trading& Semi Processing activity primarily to consolidate client base that would be a ready outlet for processed bulk agri products;

� Continuation & expansion of trading activities should be pursued since, it provides a de-risking of the revenue model and also an opportunity to explorenewermarkets first on a ‘traded’ product followed by a ‘processed’ output ;

� As a matter of strategy , both traded products and bulk processed output would be an Internationaloffering only

� Private Labels – Business To Be Promoted As An Outsourcing Facility –� Market For processed ingredients largely unorganized and ‘mostly‘ bulk driven – ample scope for ‘processors’ for customizing ingredients for end users

such as large food chains, Restaurants,Hotels, brandedRTE processors, etc

� A part of the processing capacity to be allocated – For DomesticOffering Only

� Retail Businesses – Culinary & Savory Snacks� Launch in phases – aroundGujarat andMumbai to start with since, near to processing location and easier to distribute

� Initially concentrate on those culinary products under ‘SAAZ’, where ingredients required in the processing are the same spices / agri products that NHCalreadyprocesses/tradesin its bulk business;

� Outsource the processing of Savory snacks under ‘EATMOR’. Launch only those snacks where the ‘seasoning’ base is the in house recipe of NHC –concocted from out of the same spices and agri ingredients dealt with by NHC in its bulk businesses. Launch of EATMOR aimed at opening theprocessingmarket of ‘seasoning’ base for NHC

Phase I

• Consolidate Trade & Bulk Processing;• Set Up 1 more processing facility in Gujarat;• Launch ‘ SAAZ’ & ‘EATMOR’ in select cities

Phase II

• Set up processing facilities pan-India- Cluster driven;• Own processing line(s) for RTE Segment;• Brand Distribution pan- India

Phase III

• Consolidate Brand Pan India;• Inorganic Growth• Launch Brands International

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Key Notes -

�Foray into the ever growing culinary ingredients retail marketwith its own brand offering – ‘SAAZ’ – Sa Re Kha Na;

�Vast Repertoire of 60+ recipes of masalas and mixes – researchedand concocted in-house

�Initial Launch – 14 masala types processed in house ;

�Roll out in a phased manner - Launch in Tier I cities of Gujarat, Mumbai & neighboring satellite towns;

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Th

ank

Yo

u

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