ADF foods May-24

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Questions and Answers

What is the total investment amount pledged for ADF Soul's growth in FY25?

  • Rs. 13 crore (correct)
  • Rs. 15 crore
  • Rs. 10 crore
  • Rs. 20 crore

What was the total regular dividend paid by the company in FY20?

  • Rs. 13.2 Cr
  • Rs. 30.0 Cr (correct)
  • Rs. 6.0 Cr
  • Rs. 43.9 Cr

Which products are included in ADF Soul's new product line for FY25?

  • Desserts and beverages
  • Olive oil-based chutneys and pickles (correct)
  • Frozen meals and snack bars
  • Canned food and dry spices

Which year saw the highest share buyback amount?

<p>FY22 (D)</p> Signup and view all the answers

Who has been onboarded to lead the 'Soul' initiative?

<p>An experienced senior professional from a leading consumer company (B)</p> Signup and view all the answers

What is the target audience for the gourmet products offered by ADF Soul?

<p>Non-Indian diaspora seeking traditional Indian flavors (C)</p> Signup and view all the answers

How much did the company recommend as special dividend in FY21?

<p>Rs. 1.20 per share (B)</p> Signup and view all the answers

What was the regular dividend amount for FY19?

<p>Rs. 43.9 Cr (A)</p> Signup and view all the answers

Through which channels are ADF Soul's products being sold?

<p>Modern trade stores and large supermarkets (B)</p> Signup and view all the answers

Which amount reflects the total dividends returned to shareholders since FY19?

<p>Rs. 69.0 Cr (D)</p> Signup and view all the answers

Which region does the company NOT have a geographical presence in?

<p>Africa (D)</p> Signup and view all the answers

What is the focus of the agency distribution business mentioned?

<p>Leading FMCG companies (D)</p> Signup and view all the answers

Which fiscal year shows the highest revenue according to the FY24 revenue breakdown?

<p>FY23 (A)</p> Signup and view all the answers

What percentage is represented in the context of the processed foods?

<p>83% (B)</p> Signup and view all the answers

What type of products does the company primarily focus on?

<p>Processed foods (B)</p> Signup and view all the answers

What is the primary focus of the innovative product portfolio strategy?

<p>Launching customer-centric products (D)</p> Signup and view all the answers

Which factor is NOT mentioned as a method for strengthening ADF market presence?

<p>Increasing online advertising (A)</p> Signup and view all the answers

What was Ashoka's reported revenue crossing according to the brand strength initiatives?

<p>Rs. 250 Cr (D)</p> Signup and view all the answers

What percentage growth did EBITDA see in Q4 FY24 compared to Q4 FY23?

<p>5.6% (B)</p> Signup and view all the answers

Which business strategy is emphasized for enhancing distribution and warehousing?

<p>Acquiring strategic warehouses (A)</p> Signup and view all the answers

What does the abbreviation 'PAT' in the financial performance metrics stand for?

<p>Profit After Tax (A)</p> Signup and view all the answers

Which initiative is mentioned as a benefit in promoting branding?

<p>PLI benefits (A)</p> Signup and view all the answers

How is the growth in Ashoka's brand performance quantified?

<p>Through revenue crossing a specific amount (B)</p> Signup and view all the answers

What is a key feature of the new cold storage facility established by ADF?

<p>It increases the capability to handle frozen products. (C)</p> Signup and view all the answers

Which of the following brands is NOT mentioned as a partner for ADF's distribution business?

<p>Tetley (A)</p> Signup and view all the answers

What does HALAL certification assure about the products?

<p>They do not contain ingredients forbidden for Islamic followers. (B)</p> Signup and view all the answers

What benefit does the strengthened distribution business provide to ADF?

<p>Increased shelf space visibility. (B)</p> Signup and view all the answers

Which certification is meant to ensure high occupational health and safety standards?

<p>SGS accreditation (B)</p> Signup and view all the answers

Who is the Chairman and CEO of ADF Foods Ltd?

<p>Bimal Thakkar (C)</p> Signup and view all the answers

What does the SMETA AUDIT assess?

<p>Business ethics and quality standards (A)</p> Signup and view all the answers

How does the distribution model operate for ADF's business?

<p>Using both push and pull effects. (C)</p> Signup and view all the answers

What accomplishment is associated with APEDA certification?

<p>Certification for exceptional exports performance (C)</p> Signup and view all the answers

Which of the following is a key experience highlighted by Ravinder Jain?

<p>Pharmaceuticals and healthcare (D)</p> Signup and view all the answers

In what year was ADF Foods Limited founded?

<p>1932 (C)</p> Signup and view all the answers

How many countries does ADF Foods distribute its products to?

<p>55 (C)</p> Signup and view all the answers

What is the approximate annual food processing capacity of ADF Foods?

<p>~28,000 MT (B)</p> Signup and view all the answers

Which of the following is NOT mentioned as part of ADF Foods' offerings?

<p>Canned beverages (A)</p> Signup and view all the answers

What is the significance of Ashoka in ADF Foods?

<p>It is the flagship brand demonstrating strong growth. (A)</p> Signup and view all the answers

Which of the following statements best represents ADF Foods' market approach?

<p>Utilizing a wide-reaching distribution network. (D)</p> Signup and view all the answers

What was ADF Foods' reported 3-year CAGR for Ashoka from FY21 to FY24?

<p>29%+ (C)</p> Signup and view all the answers

Which aspect is highlighted as part of ADF Foods' growth strategies?

<p>Innovative manufacturing techniques and sustainability. (C)</p> Signup and view all the answers

How many product SKUs does ADF Foods showcase?

<p>400+ (B)</p> Signup and view all the answers

What type of products does ADF Foods primarily deal with?

<p>Prepared ethnic food (B)</p> Signup and view all the answers

Flashcards

Revenue Streams

The company generates revenue from two main sources: selling its own brand of processed foods and providing distribution services for other FMCG companies.

Geographical Reach

The company operates in a geographically diverse market, with a presence in North America, Europe, Australia, the Middle East, and Asia Pacific.

Revenue Breakdown

The company's revenue breakdown shows that a larger portion comes from distributing products for other companies (83%) compared to sales of its own product portfolio (17%).

Target Customers

The company focuses on serving both South Asian diaspora and mainstream customers with its own brand of processed foods.

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Distribution Services

The company provides distribution services at an international level for leading fast-moving consumer goods (FMCG) companies.

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ADF Soul's FY25 Investment Plan

ADF Soul's plan to invest Rs. 13 crore in FY25 to support its growth plans.

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ADF Soul's Gourmet Expansion

Expanding the product line to include olive oil-based chutneys, pickles, and other 'better-for-you' foods.

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ADF Soul's Target Audience

Targeting non-Indian consumers seeking authentic Indian flavors.

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ADF Soul's Product Features

Offering a variety of ready-to-eat meals, meal accompaniments, pastes, and sauces designed for a milder palate.

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ADF Soul's Distribution Channels

Reaching customers through mainstream supermarkets, club stores, and food service markets.

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Innovative Product Portfolio

The consistent launch of new, unique, and customer-focused products aimed at enhancing customer experience and market penetration.

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Enhanced Distribution & Warehousing

Reaching more customers through a robust network of distributors, efficient warehouses, and direct distribution channels, aiming to provide faster and more reliable service.

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Brand Strength & Investments

Building a strong brand image through strategic investments, hiring talent, and leveraging government schemes like PLI (Production Linked Incentive), leading to significant revenue growth.

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Revenue from Operations

The revenue earned from the company's primary business operations, including sales of goods or services.

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EBITDA

Earnings before interest, taxes, depreciation, and amortization, representing the company's operating profit.

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EBITDA Margin (%),

EBITDA as a percentage of revenue, indicating how efficiently the company is generating profits from its operations.

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PAT (Profit After Tax)

Net profit after all expenses, taxes, and other deductions have been accounted for.

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PAT Margin (%)

PAT as a percentage of revenue, showing the company's profitability in relation to its revenue.

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Shareholder Returns

The amount of money a company returns to its shareholders, typically through dividends and buybacks.

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Dividend

A payment made by a company to its shareholders from its profits, usually distributed periodically.

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Share Buyback

A transaction where a company buys back its own outstanding shares from the market, reducing the number of shares in circulation.

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Special Dividend

A special, one-time dividend payout by a company, usually driven by exceptional performance or surplus profits.

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Annual Report

The annual report provides a comprehensive overview of a company's financial performance, including its revenue, profits, and shareholder returns.

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What is ADF Foods Limited?

ADF Foods Limited is a leading manufacturer and distributor of prepared ethnic food products, spanning across the globe with a product availability in over 55 countries.

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What's the history of ADF Foods?

ADF Foods boasts a legacy of over 90 years, tracing its origins back to 1932. It has established itself as a reputable and experienced player in the food industry.

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Describe ADF Foods' global reach.

ADF Foods has a significant global network spanning across the globe. They have facilities to manufacture and distribute their products in over 55 countries, demonstrating extensive reach.

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How diverse is ADF Foods' product portfolio?

ADF Foods boasts a diverse portfolio of over 400 product SKUs (Stock Keeping Units) under its diverse 8 brands. This signifies a wide range of product offerings catering to a variety of ethnic cuisines and tastes.

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What is ADF Foods' annual processing capacity?

ADF Foods has a strong annual food processing capacity of approximately 28,000 metric tons. This indicates a significant scale of operations and ability to produce large quantities of food products.

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What are ADF Foods' key growth initiatives?

ADF Foods strives for sustainable performance and has implemented growth initiatives that have resulted in a 3-year CAGR (Compounded Annual Growth Rate) of over 29%. These initiatives focus on improving operational efficiency and expanding market presence.

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What is ADF Foods' flagship brand?

ADF Foods' flagship brand is called Ashoka. This brand reflects the core values and commitment of the company and contributes significantly to their overall success.

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Describe ADF Foods' presence in the value chain.

ADF Foods occupies a unique position within the specialized food business, encompassing every stage of the value chain. This allows them to control the entire production process, from sourcing raw materials to delivering finished products.

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Describe ADF Foods' manufacturing capabilities.

ADF Foods has a robust and sophisticated manufacturing infrastructure. They have over 2 manufacturing facilities, equipped with cutting-edge technology, to produce high-quality ethnic food products.

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Describe ADF Foods' distribution network.

ADF Foods has a wide-reaching distribution network, enabling them to effectively reach customers in over 55 countries. This allows them to distribute their products across a global audience.

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What does ADF Foods offer to customers?

ADF Foods has a diversified product and brand portfolio, catering to diverse customer segments with different tastes and ethnic preferences. This strategy increases market reach and caters to a wider customer base.

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ISO 22000:2018 Certification

The company has secured certifications like ISO 22000:2018, demonstrating commitment to food safety and meeting international standards.

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UKAS Accreditation

A certification that ensures adherence to high standards of occupational health and safety, demonstrating commitment to employee well-being.

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Kosher Certification

A certification that verifies products meet Kosher dietary regulations, ensuring a specific market can access the company's products.

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HALAL Certification

A certification that ensures products meet Halal standards, confirming absence of ingredients forbidden in Islamic faith.

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SMETA Audit

A certification that confirms the company follows ethical business practices, covering labor standards, health and safety, environment, and business ethics.

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BRC Accreditation

A certification by the British Retail Consortium (BRC) that focuses on food safety, quality, and operational efficiency.

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APEDA Award

A certification from the Agricultural and Processed Food Products Export Development Authority (APEDA) recognizing exceptional export performance in food products.

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Cold Storage Facility

The company has expanded its distribution capabilities with a new cold storage facility, catering to frozen products and enhancing service levels.

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Pull and Push Distribution Model

The company's distribution business operates on a pull and push approach, benefiting both itself and the FMCG companies it partners with.

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Distribution Partnerships

ADF Foods expands its reach by providing distribution services for FMCG brands like Lipton and Knorr, strengthening its market presence.

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Study Notes

ADF Foods Limited Investor Presentation Q4 FY24

  • Presentation covers Q4 and FY24 performance
  • Presentation uploaded on company website: www.adf-foods.com
  • Company is a leading manufacturer and distributor of prepared ethnic food
  • Established in 1932
  • Products available in over 55 countries
  • Annual food processing capacity of ~28,000 MT
  • Owns 8 distinctive brands with high recall value
  • Has 400+ product SKUs
  • Extensive presence across value chain

Company Overview

  • One of the largest Indian exporters of processed food
  • Significant growth potential through organic and inorganic opportunities
  • Aims to expand its India business via e-commerce and modern trade channels
  • Explores and avails of production incentives (PLI)
  • Hiring professionals in India and internationally for growth

Business Overview

  • Core business includes manufacturing of processed foods and agency distribution
  • Processed foods division is one of the largest Indian exporters
  • Distributorship for several FMCG companies like Lipton, Brooke Bond Red Label, Taj Mahal, and Knorr
  • Focus on leveraging extensive experience & deep domain knowledge
  • Continued product innovation, introducing new, customer-centric products
  • Surge in health-conscious ethnic options (plant-based, vegetarian, vegan)
  • Growth of ready-to-eat ethnic food market
  • Rise of fusion cuisine and street-food inspired dishes
  • Increased consumer experimentation with global flavours
  • Social media and technology enhancements for access to and interest in ethnic cuisines

Financial Performance

  • Consolidated 5-year financial highlights included
  • Revenue from operations, Gross profit, EBITDA, PAT, and Balance sheet highlights are presented
  • Figures from FY20 to FY24 available
  • Detailed financial data provided for each financial year

New Product Launches in Q4 FY24

  • New products launched in Q4 FY24 included frozen sweets, canned sweets, dips & sauces, frozen snacks, frozen breads, and shelf-stable items

Manufacturing Facilities

  • Plant 1 located in Nadiad, Gujarat, with a ~26,000 sq.m built-up area
  • Plant 2 located in Nasik, Maharashtra, with a ~12,000 sq.m built-up area
  • Annual food-processing capacity: 28,000 MT

Warehousing Facilities

  • Cold storage facilities in New Jersey, USA (66,000 sq. ft.)
  • Atlanta, USA (34,000 sq. ft.)

Distribution Business

  • Company has expanded its distribution business, now broadening its portfolio to include several FMCG companies
  • Works with existing distribution partners (e.g., large supermarkets and food retailers)
  • Strengthens presence in US and Europe

Marketing Initiatives

  • Increased shelf visibility for products and translated increased consumer loyalty into improved performance
  • Marketing initiatives include product sampling at retail stores and sponsorship for live television broadcasts (e.g., Tata IPL)
  • Utilization of platforms like YouTube, Instagram, and LinkedIn for engagement with consumers through product, story and event snapshots that include contest

Certifications & Accreditations

  • Company adheres to multiple standards for management systems, occupational health & safety, manufacturing processes and quality

Board of Directors

  • Details of board members, including experience, educational background and involvement throughout the company history
  • Includes chairman, managing directors, CEO, and directors

Geographical Presence

  • Firm’s geographical presence features several countries
  • Focus includes North America, Europe, Australia, Middle East and Asia Pacific
  • 2 manufacturing locations in Nadiad and Nasik
  • Company’s distribution warehouses located in New Jersey and Atlanta, USA

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