Foods & Inns Limited

45%

022 Foods & Inns Limited (Investor Note – Q2 FY’23) FNI Standalone Q2 FY’23 Performance Sales 45% YoY in Q2 FY’23 at 240.6 crs v/s 166 crs Sales 47% YoY in HY FY’23 at 454.4 crs v/s 307.7crs EB

47%

FNI Standalone Q2 FY’23 Performance Sales 45% YoY in Q2 FY’23 at 240.6 crs v/s 166 crs Sales 47% YoY in HY FY’23 at 454.4 crs v/s 307.7crs EBITDA 74% YoY in Q2 FY’23 at 27.9 crs v/s 16 crs EBI

74%

in Q2 FY’23 at 240.6 crs v/s 166 crs Sales 47% YoY in HY FY’23 at 454.4 crs v/s 307.7crs EBITDA 74% YoY in Q2 FY’23 at 27.9 crs v/s 16 crs EBITDA 45% YoY in HY FY’23 at 45.9 crs v/s 31.6crs PAT 1

116%

% YoY in Q2 FY’23 at 27.9 crs v/s 16 crs EBITDA 45% YoY in HY FY’23 at 45.9 crs v/s 31.6crs PAT 116% YoY in Q2 FY’23 at 13.8 crs v/s 6.4crs PAT 67.8% YoY in HY FY’23 at 21.04 crs v/s 12.5crs Pulp

67.8%

45% YoY in HY FY’23 at 45.9 crs v/s 31.6crs PAT 116% YoY in Q2 FY’23 at 13.8 crs v/s 6.4crs PAT 67.8% YoY in HY FY’23 at 21.04 crs v/s 12.5crs Pulp Sales Tonnage 14% YoY in Q2 FY’23 at 18,669 Pulp

14%

23 at 13.8 crs v/s 6.4crs PAT 67.8% YoY in HY FY’23 at 21.04 crs v/s 12.5crs Pulp Sales Tonnage 14% YoY in Q2 FY’23 at 18,669 Pulp sales Tonnage 43% YoY in HY FY’23 at 46,866 1

43%

23 at 21.04 crs v/s 12.5crs Pulp Sales Tonnage 14% YoY in Q2 FY’23 at 18,669 Pulp sales Tonnage 43% YoY in HY FY’23 at 46,866 1 Performance: Q2 FY’23

99.99%

’20 number shown in the table above is the revenue of Kusum spices since Foods & Inns entered as a 99.99% partner i.e. Oct’19. Business Commentary: a. Fruit & Vegetable Pulps: New entrants in the Bev

Rs.148

nent 1 as well as Component 3 of the scheme and the company stands to receive incentives of around Rs.148crs on a best-case basis between the period FY’22-23 to FY’26-27 based on future growth in sales an

10%

s per committed capex. As per the scheme guidelines we have to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 to receive incentives under Component 1 of the PLI Scheme. The incentives will

15%

ive incentives under Component 1 of the PLI Scheme. The incentives will be payable upto a CAGR of 15% on eligible sales. Under Component 3 of the scheme, we are expected to get incentives 3

50%

ble sales. Under Component 3 of the scheme, we are expected to get incentives 3 of 50% of our Branding & Marketing expenses incurred abroad over the period FY’22 to FY’26. These incenti

“We expect an increased demand in other processed fruits and vegetables like guava, tomato, chilli etc.”

“Spray Dried powders: The company is witnessing a substantial increase in demand for its spray dried powders with the use cases increasing and we will be able to meet the incremental demand when our brownfield capacity comes onstream which is now scheduled in February of 2023.”

“As per the scheme guidelines we have to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 to receive incentives under Component 1 of the PLI Scheme.”

“The incentives will be payable upto a CAGR of 15% on eligible sales.”

“These incentives under both the components will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme.”

“c) To achieve our ESG goals, we have filed our GHG (Green House Gas) inventories and Carbon Emission data via Carbon Disclosure Project (CDP).”

“f) We have installed the Tetra Recart machinery at our greenfield facility at Vankal (Gujarat) and are currently having test runs and expect the plant to be commercially operative by the end of February 2022.”

Business Commentary

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KRAs being targeted by the company

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Other Facts

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About

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Disclaimer

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Contact

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Our Brands

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Business Commentary

a. Fruit & Vegetable Pulps: New entrants in the Beverage market like Reliance Retail acquiring the ‘Campa’ brand and Tata Consumer Products going aggressive on Fruski as well as ITC with B Natural augur well for the Fruit Pulping sector. Several other companies are in the pipeline to launch their own branded beverages. This coupled with the rapid capacity expansion by Coca Cola and Pepsi provides the necessary tailwinds for the sector. This is resulting in existing branded players wanting to go for long term agreements to secure continued supply to ensure their growth. Our incremental greenfield capacities committed under PLI will help us meet this incremental demand from the brands. We expect an increased demand in other processed fruits and vegetables like guava, tomato, chilli etc. Tomato pulp is witnessing a substantial increase in demand as a lot of business is shifting away from China and India is becoming a promising alternative. Such incremental demand in other categories shoul

KRAs being targeted by the company

The company is working towards improving its ROCE & EBITDA on a sustainable basis by: a) Increasing the share of value added and branded products across its food offerings. b) Increasing its operating leverage by producing allied products during non-peak season c) Converting its waste into Value additive products d) Focussing on the Asset Light model of expansion e) Concentrating on Higher EBITDA margin business

Other Facts

a) Foods & Inns got selected under the Production Linked Incentive (PLI) Scheme of the Govt. of India under Fruits & Vegetables processing category. The selection was under both Component 1 as well as Component 3 of the scheme and the company stands to receive incentives of around Rs.148crs on a best-case basis between the period FY’22-23 to FY’26-27 based on future growth in sales and investment as per committed capex. As per the scheme guidelines we have to grow our sales at a minimum CAGR of 10% over FY’22 to FY’27 to receive incentives under Component 1 of the PLI Scheme. The incentives will be payable upto a CAGR of 15% on eligible sales. Under Component 3 of the scheme, we are expected to get incentives 3 of 50% of our Branding & Marketing expenses incurred abroad over the period FY’22 to FY’26. These incentives under both the components will be in the form of direct bank transfers to the company upon achieving yearly milestones as committed under the scheme. b) The Govt. of Indi

About

Foods & Inns (FIL) is a manufacturer and exporter of a range of processed tropical fruits pulps, purees, and vegetables with state-of-the-art factories in Chittoor, Valsad, Sinnar and Gonde (Nashik). The company operates in the food processing industry and its principal divisions are Aseptic, Canning, Spray drying, Frozen fruits, IQF (Individually Quick Frozen) vegetables and snacks. Product range includes tropical fruit purees, concentrates of Mango, Guava, Papaya apart from Tomato Paste, Natural Fruit & Vegetable Powders. The company became a 99.99% partner in Kusum spices (Spice brand established in 1972) from the 2nd of October 2019 and has consequently widened its offerings in the foods segment. The Indian spice market is ~ Rs.40,000cr industry (Source: APEDA) The company owns brands/trademarks such as Madhu - (Fruit Pulp), Green Top - (IQF Vegetables & Other RTE Snacks), Kusum Masala – (Spices), Triveni Global - (Frozen food) & Zatpat Zaldee - (QSR). The company as an initiative

Disclaimer

This document may contain some statements on the company’s business or financials which may be construed as forward looking. The actual results may be materially different from these forward- looking statements.

Contact

1) writetous@foodsandinns.com 2) Landline: 022-35110013 / 022-22615032 3) Mr. Anand Krishnan, CFO (Email: anand@foodsandinns.com) 4) Mrs. Randeep Kaur, Company Secretary (Email: randeep@foodsandinns.com)