Hatsun Agro Products Ltd. — Call Transcript 2022

Aug 30, 2022

GOPALAN

SOMASUNDA

RAM

Digitally signed by GOPALAN SOMASUNDARAM Date: 2022.08.30 16:06:03 +05'30'

Transcript of the Interview given by Mr. R G Chandramogan, Chairman of the Company to ET Now TV on 26[th] August, 2022:

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Duration ET Now TV Mr. R G Chandramogan
Slot 1 Thank you so much for joining us and See. Price increase is almost about 14
speaking with ET Now if you can hear percent compared to last year. But the
me properly this time around wanted inflation has been heavy and twice we
to begin by asking you how the overall have taken the increase and now prices
prices when it comes to the milk prices are settled and we don’t expect any
and the trend going forward because further price increase added.
of late we have seen the likes of Amul
as well as Mother Dairy increase their
prices and what sort of price increase
you have taken in the last six seven
months and what’s the expectation
going forward?
Slot 2 Right uh good afternoon Mr. See we have different requirements for
Chandramogan, This is Shardu’s QIP one is actually we have about 3000
joining in the conversation and that’s outlets distributing milk and ice cream
about the price hikes that you’ve taken and retail also we deal and all these
but the Company has also approved a outlets we pay the rent and we are likely
QIP of about 700 crore rupees and to increase another 600 outlets in the
along with that an investment in coming year number one.
Huoban Energy so could you tell us
how much of the QIP proceeds will be Number two, this is also going to help
used for this investment and as well as us in spending on advertisement as we
uh where else do you uh intend to are expanding the market. Other than
utilize the QIP proceeds? milk and other than long shelf life
products that is short shelf life products
like curd, ice cream, paneer, yogurt and
all these products we are most likely to
cross a turnover of about 3000 crores
next year. This is only short shelf life.
Non-milk no long life products like
SMP and … based on that we believe
that we may have to give little more
better inputs in the market and that is the
purpose for which the QIP has been
planned.
Slot 3 You’ll increase the exposure when it No. This is value added product is a
comes to the short shelf life products myth that is being propagated. If I am
as well but value added products is going to supply cheese to a pizza
also something that you have been manufacturer I don’t believe that this is
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quite bullish on infact I remember it a value added product. If I am going to
right um the Arun ice cream brand you supply curd only to the hotels in
had been focusing on and there was an buckets, it is also not a value added
expectation that export of uh it is also product. I believe if it is sold to the
expected to rise. Could you talk to us consumer directly, I believe this is a
about uh what the entire portfolio value added product. As far as we are
value added product is looking like? concerned, we don’t look at wholesale
market we look at retail market direct to
the consumer. My sales whatever I am
saying is for the retail consumers.
Compared to the Industry, our EBITDA
has always been higher as a first time
and focusing on this, we believe that we
can just increase it better.
Even milk is a value added item for me
because it is sold as a brand and we
don’t focus on institutions or hotels or
tea shops. So everything that is branded
going to the consumer is a value added
product.
Slot 4 Right uh let’s talk about what’s No. So far there is no impact and
exactly happening with regards to the probably this disease has been spotted in
dairy industry right now we are seeing north so far it has not come to cows we
the lumpy skin disease threat actually have to just see it but actually the
growing in India any is it a major vaccinations are also available within
worry for the Company by any chance the country. We don’t expect a major
and what’s the current ground issue and right now probably the rains
situation are you all impacted by it by have been heavy in Tamilnadu and all
any chance? the southern states including
Maharashtra. This is preventing the
milk arrivals hope next 10 days milk
arrival should start improving. By the
time the north milk arrivals will also
start the festival season may not have
much of a problem either on supplies or
on the price. I expect prices have
already stabilized.
Slot 5 Okay Mr. Chandramogan we will let
you go on that note. Thank you so
much for joining us today and talking
to us about how the trend of the entire
industry is looking like.
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