?Heritage Foods aims to generate Rs.6000 crore revenue by 2022

Heritage Foods Ltd, a dairy company in India, has introduced its latest line of Buttermilk products labeled as 'A-One' and a new range of milkshakes in convenient single-serve carton boxes.

The new product line, called 'A-One' by Heritage Foods, comprises low-calorie spiced buttermilk that serves as a natural and refreshing drink.

 “Launch of ‘A-One’ Spiced Buttermilk & new Milkshakes in Combi-block packs is yet another step in the direction of growing the contribution of value-added products (VAP) in our portfolio. I am sure these new products will not only delight our consumers, but will also help them face the harsh summer season with a smile.” said Mrs. Bhuvaneswari Nara, Vice Chairperson & Managing Director 

The company uses a unique combination of cultures to ferment fresh Heritage milk to create a smooth and thick texture with an ideal balance of sourness and saltiness. Natural extracts of ginger and green chilies are blended into the drink to give it a spicy twist, making it a perfect on-the-go drink.

'A-One' Spiced Buttermilk will be sold in 180ml packs with a six-month shelf life and a reasonable price tag of ₹20/-.

In addition, Heritage Foods has given a makeover to its line of Milkshakes with new flavors and an attractive appearance.

While classic flavors like Vanilla and Strawberry remain available, the company plans to introduce two new varieties, Chocolate & Caramel and Cookies & Cream, which will appeal to both adults and children. The new range of Milkshakes will be sold in 180ml packs for ₹40/- and 125ml packs for ₹15/-.

Heritage Foods Ltd. is preparing for reintroducing its popular "Premium Badam milk with real Badam bits" under the brand name 'Badam Charger'.

The revised product recipe includes a higher quantity of badam bits, aligning with the brand's promise of 'Stay Charged.' Heritage Badam Charger will be available in 180ml plastic bottles with vibrant packaging. This product will be sold at a convenient price point of ₹35/-.

“Heritage ‘BadamCharger’ is a product targeted to thriving adults who hustle through the day to achieve their dreams.. We have formulated this recipe to deliver great taste with absolutely no added artificial colours or flavours and with 30% less sugar as compared to other similar flavoured milk-drinks.” said Mrs. Brahmani Nara, Executive Director of Heritage Foods Limited

Heritage Foods intends to take its customers on a nostalgic journey by releasing ice lollies with authentic and fascinating Indian flavors like 'Kala Khatta' and 'Gol Gappa' this summer. These desi flavors are bound to evoke fond childhood recollections. Consumers can enjoy these refreshing treats on a scorching summer day for only ₹10.

Heritage Foods has introduced its 'A-One' Spiced Buttermilk and Milkshake products in various regions, including Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Delhi, and the National Capital Region (NCR).

These products are accessible through various channels, such as general trade stores, Heritage Happiness Points, Heritage Parlours, modern retail stores, and online grocery platforms.

The Q1 profit margins for the dairy industry this year have seen a sharp decline as compared to that of Q1FY17. While Chandrababu Naidu-promoted Heritage Foods posted net profit of Rs 17.11 crore last year, this year, it has only been Rs 10.37 crore. Similarly, Kwality Ltd reported a sharp decline in its June quarter profits to Rs 27.88 crore, from Rs 42.27 crore a year ago, while Umang Dairies posted a loss of Rs 2.90 crore compared to a Rs 1.48 crore profit. Interestingly, net sales of both companies jumped by 7 per cent and 11 per cent, respectively.

Companies with increased focus on value-added products, such as Parag Milk Foods and Hatsun Agro Products, however, have maintained their profit margins in the June quarter despite interruption in milk supply due to the farmers' mass protest and roadblock. While organised sector players are adjusting increase in compliance cost of GST (goods and services tax), rollout without an increase in product prices, unorganised sector players are considering raising milk prices by Rs 2-4 a kg to pass on the increased cost burden to consumers. "

"Gross margins of Heritage Foods were impacted by an increase in milk procurement cost which the company was unable to pass on to the consumers completely. EBITDA margins at 4.4 per cent was also hit by loss making Reliance Dairy business and increase in other expenditure which grew by 37.8 per cent yoy a function of higher branding expenditure. However, the company is confident with initiatives taken on cost optimization and expectation of lower milk procurement cost post monsoons. We expect the recovery to be gradual," said Dhaval Mehta, an analyst with Emkay Global Financial Services Ltd.

According to R S Sodhi, Managing Director, Gujarat Cooperative Milk Marketing Federation (GCMMF) which sales Amul brand dairy products, "Milk prices had declined drastically over the last one year. Milk prices, therefore are recovering. Prices are likely to remain stabilised now."

"We intend to increase our direct procurement to over 50% over the next 3-4 years. This would accelerate the transition towards B2C by enabling faster shifting of our product mix towards consumer products, primarily fresh milk and value-added products. With our persistent focus on B2C segment, strong position in north markets, and planned product rollouts of value-added products, we shall continue to witness strong growth in the forthcoming years. We believe favourable demographics such as rising disposable income and changing consumer lifestyle would further support our growth story," said Nawal Sharma, president & head business transformation, Kwality Ltd. 

South India's one of the leading dairy companies, Heritage Foods has entered the northern region with the launch of its milk and milk products.

To achieve its mission of reaching Rs.6000 crore revenues by end of 2022, Heritage is going to start 5 more milk processing plants in the next 5 years, the company said.

To achieve this, Heritage said, they will ramp up its current volume of 14 lakhs litres of milk per day to 28 lakh litres. 

This growth is aided by recent acquisition of Reliance Dairy’s brands, Dairy Life and Dairy Pure in North India.

By entering the northern market the brand said the milk supplied in Delhi will be collected from farmers located just 5 hours away; thereby ensuring freshness and a consistent flow of good quality milk.

Brahmani Nara, Executive Director, Heritage Foods, said, "We are very happy to foray into Delhi and other states in the North and we would like to repeat the same success we have had in other markets where Heritage is a trusted brand. 

While we have aggressive expansion plans of being a Rs.6000 cr. company by 2022, we would like to stick to our core philosophy of our own procurement of milk from farmers 5 hours away from Delhi to ensure the freshest milk to the consumer, everyday."

Hyderabad-based Heritage Foods Limited (HFL) said it is in the process of entering into a Joint Venture (JV) with an European dairy firm for manufacturing and marketing yogurt in India.

Brahmani Nara, Executive Director, Heritage Foods also said the company aims to achieve $1 billion in the next five years from now.

Brahmani said, "Being the leading player in curd segment, the company is going to launch varied products in Yogurt market, by tying up with its international partner. In continuation to this, the company is going to launch new products very soon in beverages segment. This will further strengthen the current large portfolio of value added products. The negotiations are in the final stage with an European company and will be finalised in a month."

The company (Heritage) with footprints in 15 states has plans to enter newer markets soon. It also has plans to set up five milk processing units across the country with an investment outlay of Rs 150 crore, she further said.

She said, "Staying true to the company's mission to reach Rs 6000 crore or $ one billion in revenues by 2022, the company along with its core business vertical of milk also aims to further enhance the contribution of value-added products from current 24 per cent to 40 per cent in the next five years. Heritage had already made inroads into western markets like Pune and Mumbai besides Northern market. The management is confident of achieving these numbers by both organic and inorganic growth."

As a part of inorganic expansion, the company had recently acquired dairy business of Reliance Retail making Heritage Foods a pan India player.

Heritage Fresh, one of the largest supermarket chains in Hyderabad has opened its 80th store in the city.

The store was inaugurated by the Executive Director of Heritage Foods Limited, Nara Brahmani in the presence of customers and store employees.

In this financial year itself the chain has expanded rapidly and has launched 31 stores till date.

The new store offers great value to customers by giving a minimum 3 per cent discount on all branded products.

At the store, fruits and vegetables & loose staples are priced lower than nearby wholesale markets and customers are guaranteed a freebie against all purchases above Rs 1999.

Dharmender Matai, COO (Retail & Bakery), said, "We are delighted to open our 80th store in Hyderabad in Alkapuri Colony. In the last 20 months we opened about 50 stores and have been growing by 30 per cent year on year for last two years. 

I thank our customers for such unprecedented patronage & congratulate all employees on reaching a critical milestone."

Heritage Foods Ltd has reported a twofold jump in consolidated net profit at Rs 10.71 crore in the first quarter of the fiscal on higher sales from dairy and bakery business, reported PTI.

The Hyderabad-based firm had posted a net profit of Rs 5.29 crore in the same quarter last year.

Total income increased to Rs 578.45 crore in the April- June quarter of the 2015-16 fiscal as against Rs 505.76 crore in the year-ago period, it said in a BSE filing.

The income from the dairy business rose to Rs 436.77 crore from Rs 382.64 crore, while the revenue from the retail business rose to Rs 133.93 crore from Rs 117.68 crore in the corresponding period last year.

However, the overall expenses of the company increased to Rs 558.89 crore from Rs 495.84 crore year-ago.

Besides dairy and retail, the company has three other business segments -- bakery, agriculture and renewable energy.

The company's scrip settled at Rs 431.40 on BSE, up 1.34 per cent from the previous close.