PRATAAP SNACKS LIMITED Q3 & 9MFY19 - Results Presentation - PowerPoint PPT Presentation

PRATAAP SNACKS LIMITED Q3 & 9MFY19 - Results Presentation February 2019

Disclaimer er 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

Conten ents 4 Company Overview 13 Industry Overview 16 Avadh Snacks Acquisition- Unlocking Synergies 20 Q3 & 9M FY19 Results Performance 3

Company Overview 4

Company Snapshot ot 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

Diver erse e Product Portfol olio YUM CAKE & NAMKEEN & POTATO CHIPS CHULBULE* NAMKEEN* NACHOS RINGS, KURVES PELLET SNACKS COOKIE CAKE FRYUMS & PUFF*  Potato  Rice grit &  Corn grit  Gram  Wheat  Made from  Cake centre  Namkeen filled with and Fryums based Corn grit based based# based corn tortillas snack based snack cream and catering to  SKUs: 23  SKUs: 2  Launched in snack Cake with local tastes  SKUs: 9  Market varieties flavours Q4FY18 chocolate flavors  SKUs: 7 leader in  SKUs: 55  Target  Target  SKUs: 3 flavours Rings  SKUs: 2 varieties  Target group: All group: flavours flavour  Target group: group: All  Target  SKUs: 4 Children  Target group: flavours  Target All group: All group: Youth &  Target Children Children group: and Youth Children Diverse product portfolio at strategic price points and pack sizes * Chulbule – Random extruded corn based snack, * Rings, Kurves & 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 Innov ovation on Namkeen • Banana Wafer Black Pepper Namkeen • Banana Wafer • Garlic Sev Salted Mamra • Cornflake Mixture Potato Chips • Masala • Mitha Falahar • Cream & Matar Ring • Bhel Nachos, Onion • Gatiya • Mango • Sev Murmura Kurves, • Nimbu Potato Chips Masala Chutney Masala • Tasty Punch Potato Chips Yum Cake & Chulbule Namkeen • MRP 15/- Yum Pie Cookie Cake • Yummy Masala Chulbule Potato Chips Chulbule Potato Chips • Cream & • Chana pack with • Taza Tomato • Mast Masala¹ • Achari • Black Pepper • Chatpata Onion Choor bigger toys 2017 2018 2013 2016 2009 2011 2012 2014 2015 2010 Products launched Launched Yum- Launched Nachos, • • Introduction of Introduction Introduction • • • Pie, a variety of Kurves, Yum Cake Rings, Namkeen of Scoops of Yoodles sweet snacks, and Cookie Cake and Wheels and Creamy under the new in 2018 Sticks umbrella brand Introduced Cheese • name Rich Feast Masala & Tomato in Nov/Dec 2017 variants in Kurves 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 on Networ ork 1 States* 1 10 5 6 8 Super Stockist 1 19 4 29 7 6 3 2 Distributors 1 1 1 21 4 87 1 1 7 Region No. of States / UT No. of Super Stockists 2 North 7 53 1 2 East 12 39 6 South 5 18 1 West 5 135 7 *Includes one Union Territory, Map not to scale 8

Strateg egically Located ed Manufacturing Facilities es Madhya Pradesh Assam West Bengal Karnataka Uttarakhand Gujarat Ahmedabad (I&II) Kashipur Bangalore (I&II) Rajkot (I) Indore (I&II) Guwahati (I&II) Kolkata (I&II) Distribution benefits Caters to the Contract Manufacturing Prataap Snacks • • Eastern Zone acquires Gujarat Caters to the Northern and Western 11%-12% business comes from contract • • based Avadh Zones Guwahati’s manufacturing • Snacks location benefits Well connected between Mumbai and Kolkata – shared contract manufacturing unit • • from attractive The • Delhi which are key distribution hubs for for potato chips to cater East India market reverse logistic manufacturing North and West zones Bangalore – dedicated contract manufacturing trends • facility in Rajkot to unit for Rings and Pellets to cater South India cater to the Production benefits The • market target market of manufacturing Indore in MP is a key hub for sourcing • Gujarat and also Recently entered into new contracts for third facilities at • quality Potatoes supply to the Guwahati are party manufacturing at Ahmedabad, Gujarat, neighbouring Bengaluru, Karnataka, Kolkata, West Bengal eligible for Cost Benefits states and Kashipur, Uttarakhand for producing Income Tax Benefits from attractive reverse logistics • potato chips exemption trends given that MP is a major consumer Nachos to be manufactured at Ahmedabad • state Own facility Third party facility Rajkot-Subsidiary Facility 9

Core e Managem emen ent With Deep ep Domain Exper ertise Corporate functions Amit Kumat Arvind Mehta Apoorva Kumat Subhashis Basu Sumit Sharma Managing Director & CEO Chairman & Executive Director Executive Director (Operations) COO CFO Over 22 years in Snack Over 29 years of experience in Over 22 years in Snack foods Around 26 years in the 16 years in Finance & foods industry real estate business along with industry. FMCG sector Earlier Accounts Earlier with Prakash Snacks over 15 years in the snack with Parle, Pepsico Earlier with Prakash Snacks and Earlier with Crompton foods industry and in the and Hello Agro Food India and Mother Hello Agro Food Products Greaves, L&T-Case Products financing business Dairy 10

Guided ed By An Accom omplished ed Board Of Direc ector ors Arvind Mehta Amit Kumat G.V. Ravishankar Anisha Motwani Nominee Director (Sequoia) Independent Director Chairman & Executive Director Managing Director & CEO Over 12 years in management Partner (Storm the Norm Over 29 years of experience in Over 22 years in the snacks foods consultancy & PE investments Ventures) real estate business along with industry over 15 years in the snack foods industry and in the financing Previously worked with McKinsey Earlier with General Motors India business & Company & Max Life Insurance Company Vineet Kumar Kapila Dr. Om Prakash Manchanda Haresh Chawla Chetan Kumar Mathur Independent Director Independent Director Independent Director Independent Director COO (RPC North of United Spirits) CEO & Exe. Director (Dr. Lal Partner (India Value Fund) & 30 years of experience in F&B & earlier MD (Spencer’s Retail) Pathlabs) & earlier with Hindustan earlier CEO (TV18) industry, worked with PepsiCo Lever, Ranbaxy Laboratories India for 23 years Limited Mr. V.T. Bharadwaj Non-Executive Director Over 15 years in management consultancy & PE investments Previously worked with Sequoia Capital and McKinsey & Company PSL has high standards of Corporate Governance and sound internal control policies 11

Prataap Snacks’ Evol olution on Successful IPO – Sequoia’s initial oversubscribed 47x; listed investment of Rs. 620 on NSE & BSE on Oct 5, mn Doubled the 2017 Prataap Snacks capacity of Potato Prakash Snacks Chips plant at Indore Launched Yum-Pie, a incorporated. Installed Chulbule Prataap Snacks took from 6,000MT per Introduction of variety of sweet snacks, Commenced trading plant at Prakash over the business of annum to 12,000MT Yoodles and Creamy under the brand name in Cheese Balls Snacks in Indore Prakash Snacks per annum Sticks Rich Feast. Set up a plant to Prataap Snacks Commissioned Rings Commissioned Guwahati new plant Entered into 3P manufacture Potato incorporated and and Namkeen plant Guwahati plant for commissioned Contract Chips in Indore set up a Potato Chips in Indore Rings, Chulbule and Manufacturing for plant in Indore Pellets Increased the producing potato chips Introduction of Rings, capacity of Chulbule Namkeen and Introduction of and Rings plant at Launch of Kurves, Wheels Scoops Indore Nachos ,Yum Cake and Cookie Cake Acquired 80% stake in Avadh Snacks, a leading snacks player In Gujarat Note: Fiscal year ended March 12

Industry Overview 13