PRATAAP SNACKS LIMITED H1 FY18 - Result Presentation December -2017 - PowerPoint PPT Presentation

PRATAAP SNACKS LIMITED H1 FY18 - Result Presentation December -2017

Disclaimer Certain statements in this document may be forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, like regulatory changes, local political or economic developments, and many other factors that could cause our actual results to differ materially from those contemplated by the relevant forward-looking statements. Prataap Snacks Limited (PSL) will not be in any way responsible for any action taken based on such statements and undertakes no obligation to publicly update these forward looking statements to reflect subsequent events or circumstances. 2

Contents Company Overview 4 Industry Overview 13 H1 FY18 Results Performance 16 3

Company Overview 4

Company Snapshot 5 year revenue SKU’s Manufacturing Market Leader in CAGR facilities Rings States Super Stockists Distributors Packets sold per day Diverse Product Portfolio Focus On Product Innovation Pan India Distribution Network Core Management With Deep Domain Expertise Strategically Located Manufacturing Facilities 5

Diverse Product Portfolio POTATO CHIPS CHULBULE* RINGS & PUFF* NAMKEEN* PELLET SNACKS YUM-PIE  Potato based  Rice grit &  Corn grit  Gram based #  Wheat based  Cake with snack Corn grit based snack Jam &  SKUs: 23  SKUs: 4 based snack chocolate  SKUs: 9 flavors  Market leader varieties flavours  SKUs: 7 in Rings  SKUs: 3  Target group:  Target group:  Target group: flavours flavours All  SKUs: 4 All Children  Target group: flavours  Target group: Youth & Children  Target group: Children Children Diverse product portfolio at strategic price points and pack sizes * Chulbule – Random extruded corn based snack, * Rings & Puff – Shaped extruded corn based snacks, * Namkeen – Traditional Indian snacks # Key component is Gram, however, based on the variants, multiple pulses and other condiments might be used 6

Focus On Product Innovation Namkeen Banana Wafer • Black Pepper Namkeen • Banana Wafer Garlic Sev • Salted Mamra Cornflake Mixture • Potato Chips Masala • Mitha Falahar • Cream & Matar • Ring Bhel • Onion • Gatiya • Mango • Sev Murmura Nimbu Potato Chips Masala • Chutney Masala Tasty Punch • Potato Chips Chulbule Namkeen MRP 15/- • Chulbule Potato Chips Chulbule Potato Chips • Yummy Masala Cream & Chana pack with • • Taza Tomato Mast Masala¹ Achari Black Pepper Chatpata Onion Choor bigger toys • • • • • 2017 2013 2016 2009 2010 2011 2012 2014 2015 • Introduction of • Introduction of • Introduction of • 2017 - launched Yum-Pie, a Rings, Namkeen Scoops Yoodles and variety of sweet snacks, and Wheels Creamy Sticks under the new umbrella brand name Rich Feast. Products launched With a series of products and flavours launched over the years, Prataap Snacks has demonstrated the ability to introduce new products, deliver product innovation and redevelop product categories Note: Data as per fiscal year end (March ending) 1 Subsequently modified and changed to Chatpata

Pan India Distribution Network 1 States* 11 4 6 11 Super Stockist 1 13 26 9 4 5 3 3 Distributors 1 1 2 7 2 83 1 1 7 Region No. of States / UT No. of Super Stockists 1 North 6 49 3 East 12 43 7 South 5 16 1 West 4 110 4 *Includes one Union Territory, Map not to scale 8

Strategically Located Manufacturing Facilities Madhya Pradesh Assam West Bengal Karnataka Bangalore Kolkata Indore Guwahati (I&II) Caters to the Eastern Distribution benefits • Contract Manufacturing Zone Caters to the Northern and Western Zones 7%-8% business comes from contract • • Guwahati’s location manufacturing • Well connected between Mumbai and Delhi which are • benefits from attractive key distribution hubs for North and West zones Kolkata – shared contract manufacturing unit for • reverse logistic trends potato chips to cater East India market • The manufacturing Production benefits • Bangalore – dedicated contract manufacturing facilities at Guwahati unit for Rings and Pellets to cater South India • Indore in MP is a key hub for sourcing quality Potatoes are eligible for Income market Tax exemption Cost Benefits Benefits from attractive reverse logistics trends given that • MP is a major consumer state Own facility Third party facility 9

Core Management With Deep Domain Expertise Corporate functions Arvind Mehta Amit Kumat Apoorva Kumat Subhashis Basu Sumit Sharma Chairman & Executive Director Managing Director & CEO President - Operations COO CFO Over 29 years of experience in Over 21 years in Snack Several years in Snack Around 26 years in the 14 years in Finance & real estate business along with foods industry foods industry. FMCG sector Earlier Accounts over 13 years in the snack with Parle, Pepsico Earlier with Prakash Snacks Earlier with Prakash Earlier with Crompton foods industry and in the India and Mother and Hello Agro Food Snacks and Hello Agro Greaves, L&T-Case financing business Dairy Products Food Products 10

Guided By An Accomplished Board Of Directors Arvind Mehta Amit Kumat Chairman & Executive Director Managing Director & CEO Over 29 years of experience in real Over 21 years in the snacks foods estate business along with over 13 industry years in the snack foods industry and in the financing business Anisha Motwani G.V. Ravishankar V.T. Bharadwaj Independent Director Nominee Director (Sequoia) Nominee Director (Sequoia) Partner (Storm the Norm Over 12 years in management Over 15 years in management Ventures) consultancy & PE investments consultancy & PE investments Previously worked with McKinsey Previously worked with McKinsey Earlier with General Motors India & Company & Company & Max Life Insurance Company Haresh Chawla Vineet Kumar Kapila Dr. Om Prakash Manchanda Independent Director Independent Director Independent Director Partner (India Value Fund) & COO (RPC North of United Spirits) CEO & Exe. Director (Dr. Lal earlier CEO (TV18) & earlier MD (Spencer’s Retail) Pathlabs) & earlier with Hindustan Lever, Ranbaxy Laboratories Limited PSL has high standards of Corporate Governance and sound internal control policies 11

Prataap Snacks’ Evolution Successful IPO – Sequoia’s initial oversubscribed 47x; investment of Rs. Doubled the listed on NSE & BSE 620 mn capacity of on Oct 5, 2017 Prataap Snacks Potato Chips Prakash Snacks plant at Indore Launched Yum-Pie, incorporated. Installed Prataap Snacks from 6,000MT per a variety of sweet Commenced Chulbule took over the annum to Introduction of snacks, under the trading plant at Prakash business of 12,000MT per Yoodles and brand name Rich in Cheese Balls Snacks in Indore Prakash Snacks annum Creamy Sticks Feast. Set up a plant to Prataap Snacks Commissioned Commissioned Guwahati new manufacture incorporated Rings and Guwahati plant plant Potato Chips in and Namkeen plant for Rings, commissioned Indore set up a Potato in Indore Chulbule and Chips plant in Pellets Increased the Indore Introduction of capacity of Rings, Namkeen Introduction of Chulbule and and Wheels Scoops Rings plant at Indore Note: Fiscal year ended March 12

Industry Overview 13

Trends In The Indian Organised Snacks Market Rs.220 Bn organized snack market, contributes to only ~40% of the Rs.550 Bn total snack market Category/ product* Region* Sales channels* 2% 3% Chips Independent 5% small grocers 7% Supermarkets 30% Extruded snacks 10% 36% Hypermarkets Namkeen & Convinience traditional snacks stores 75% 32% Other retailers Others Each of these product segments is relevant Large presence of unorganised small • • and contributes to almost a third of the grocery stores and petty shops Petty shops usually stock the smallest SKU market • size product Domination of small grocery stores • expected to continue for the next 5 to 10 years Source: F&S report 2017 * As of 2016; please refer the Definitions section in the annexure for the zone definitions 14

Backed By Strong Demographic Tailwinds in India Rising Population of Youth and Large and Growing Population Children¹ 1,289 1,274 Total Population 1,256 584 583 1,238 Population 580 1,220 577 (million) (million) 574 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2013-2018 CAGR: 1.4% 2013-2018 CAGR: 0.5% Rising Affluence Increasing Per Capita Expenditure on Food 5.5 5.1 Expenditure on Food 4.5 Per Capita GDP 15,803 16,083 15,555 3.5 14,548 Growth (%) 3.2 13,293 Per Capita (INR) 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2013-2018 CAGR: 4.9% Source: EIU, Business Monitor International; data as per calendar year ended December Note: 1 Includes population aged 5-29 years

H1 FY18 Results Performance 16