VENKEYSNSE9 February 2021

Please find attached herewith the transcript of the conference call for investors and analysts held by Venky s (India) Limited on Friday, 5th February, 2021.

Venky's (India) Limited

~ "":"O~ Venky's (India) Limited

Regd. & Corporate Office: 'Venkateshwara House', S.No. 1141N2, Pune-Sinhagad Road, Pune-411 030, India. Phone: 020 - 71251530 Fax: 020 - 24251077,24251060 www.venkys.com CIN: L01222PN1976PLC017422

Date: 9 February, 2021

Mr. K Hari The National Stock Exchange of India Limited, 'Exchange Plaza', Sandra-Kurla Complex, Sandra (E), Mumbai - 400 051.

Dear Sir,

The General Manager, DCS-CRD Corporate Relationship Dept., Bombay Stock Exchange limited, Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001.

Subject: - Transcript of Conference Call held on 5 February, 2021.

Please find attached herewith the transcript of the conference call for investors and analysts held by Venky's (India) Limited on Friday, s" February, 2021 at 02.00 P.M. 1ST.

Kindly take the said information on your record and acknowledge the receipt.

ROHAN BHAGWAT COMPANY SECRETARY & COMPLIANCE OFFICER

Encl: As above

“Venky's India Limited Investor Conference Call”

February 05, 2021

ANALYST:

MR. ANIRUDDHA JOSHI - ICICI SECURITIES

MANAGEMENT: MR. N. K. TOSHNIWAL - GENERAL MANAGER OILSEED SEGMENT - VENKY'S INDIA LIMITED DR. VIJAY TIJARE - GENERAL MANAGER POULTRY SEGMENT - VENKY'S INDIA LIMITED DR. P. G. PEDGAONKAR - POULTRY SEGMENT - VENKY'S INDIA LIMITED MR. DEEPAK KHOSLA - GENERAL MANAGER AHP SEGMENT - VENKY'S INDIA LIMITED MR. J. K. HANDA - CHIEF FINANCIAL OFFICER - VENKY'S INDIA LIMITED MR. ROHAN BHAGWAT - COMPANY SECRETARY - ACCOUNTS AND FINANCE - VENKY'S INDIA LIMITED

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Venky's India Limited February 05, 2021

Moderator:

Ladies and gentlemen, good day and welcome to the Investor Conference Call of Venky's

India Limited hosted by ICICI Securities. As a reminder, all participant lines will be in the

listen-only mode and there will be an opportunity for you to ask questions after the

presentation concludes. Should you need assistance during the conference call, please signal

an operator by pressing “*” then “0” on your touchtone phone. Please note that this

conference is being recorded. I now hand the conference over to Mr. Aniruddha Joshi from

ICICI Securities. Thank you, and over to you!

Aniruddha Joshi:

Thanks Lizanne. On behalf of ICICI Securities, we welcome you all to first ever Investor

Conference Call of Venky's India Limited. As you all know, Venky's India is one of the

pioneer companies in the poultry business in India. It has created strong competitive

advantage via R&D, strong investment in branding, sales, marketing as well as distribution.

It has also developed forward integration in the ready-to-eat chicken products. I

congratulate them at this moment for reporting very strong set of numbers in Q3 FY'21

results considering the backdrop of COVID and impact on the HoReCa sector. From the

company's side we have with us today Mr. N. K. Toshniwal - General Manager Oilseed

Segment, Dr. Vijay Tijare - General Manager and Dr. P. G. Pedgaonkar from Poultry

Segment, Mr. Deepak Khosla - General Manager from AHP Segment, Mr. J. K. Handa -

Chief Financial Officer, and Mr. Rohan Bhagwat - Company Secretary from Accounts and

Finance. Now, I hand over the call to Mr. Rohan Bhagwat - Company Secretary for his

initial comments and introduction, then we will begin the Q&A session. Thanks and over to

you Mr. Rohan.

Rohan Bhagwat:

Thank Mr. Aniruddha Joshi. A very good afternoon and thank you all for joining us today

for Venky's India Limited Conference Call. I hope you all have gone through the investors

information and the financial results for the quarter ended December 2020 which have been

uploaded on our website as well as the stock exchange's website. Today we have with us the

unit heads to answer all your queries in respect of their respective segments and the area of

operations. Before we start discussing the company's performance, I would like to mention

that some statements made during today's discussion may be forward looking in nature and

may involve risks and uncertainties. After the end of this call, in case you have any further

questions, please feel free to reach out to the investor relations team. I will now handover

the call to Mr. J. K. Handa our CFO to make the opening comments. Over to you Mr.

Handa.

J. K. Handa:

Good afternoon and a very warm welcome. I am Jeevan Handa, CFO. I am pleased to

interact with all of you on the Venky's Earnings Call. I hope you have gone through the

results and the related details. Venky's has registered good performance for the quarter. The

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Venky's India Limited February 05, 2021

poultry and poultry product segments registered a good growth of 13.24%, whereas in total

it is 5.84% for the quarter as compared to the corresponding quarter last year. Profits before

tax has been significantly higher due to improved realization from the sale of the old chicks

and grown up broiler. The animal health product segment performance has been good. The

oilseed segment performance has been satisfactory. The Capex program undertaken during

the last year for the expansion of SPF eggs capacity and setting up of third solvent

extraction plants in vegetable oil refinery has been completed. Full benefits of these projects

will be reflected in the next financial year onwards. On the borrowing front, the company

has further brought down the term loan and working capital limits during the quarter which

has helped to reduce the interest cost. On the cash flow front, during the nine months ended

31st December 2020, we have generated net cash flow from the operations of about Rs.216

Crores which was utilized towards reduction in bank borrowing, new capital expenditure of

projects, and reduction in prices as well as buildup of inventories. Company's debt equity

ratio has improved from 0.36 as of 31st March 2020 to 0.20 as of 31st December 2020. As

regards impact due to COVID 19 pandemic after facing several challenges in the initial few

months I am pleased to mention that Venky's business segments are back in track and

presently we have reached almost pre-COVID operations level from business volume point

of view. Bird flu is another factor which has temporarily disrupted the poultry product

segment during January 2021. The realization from the sale of the old chicks and grown up

broilers had gone down, but it is on the way of recovery. Presently, there are indications

that the negative impact is gradually coming down and we expect that the overall situation

in terms of sales volume and the realization will improve. The improvement is already

visible as the prices of grown up broilers have gone up from the low of Rs.42 per kg to

Rs.60 per kg in the northern states. Similarly, the day-old chick prices have improved from

the low of Rs.15 to Rs.25 per chick. More on the bird flu impact from technical perspective

will be explained by Dr. P. G. Pedgaonkar when questions on the subject come up. With

this briefing on the financial performance, we now would like to answer your queries. You

may please go ahead with your questions. Thank you.

Moderator:

Thank you. Ladies and gentlemen, we will now begin the question and answer session.

Anyone wishing to ask a question may please press "*" and "1" on the touchtone telephone.

If you wish to remove yourself from the question queue you may press "*" and "2".

Participants are requested to use handsets while asking a question. Ladies and gentlemen we

will wait for a moment while the question queue assembles. The first question is from the

line of Kalpesh Gothi from Valentis Advisors. Please go ahead.

Kalpesh Gothi:

Good afternoon Sir and congratulations for a very great set of numbers. This is our maiden

con-call, hope this event will continue every quarter. My first question is related to bird flu.

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Venky's India Limited February 05, 2021

What is the outlook for the poultry segment for Q4 especially after the bird flu and can you

give your view on the bird flu impact on our company specific?

Dr. P. G. Pedgaonkar:

Thank you for this question. Because this question is a generalized question and that

represents question related to bird flu and concern related to bird flu. We say that bird flu is

not at all new as far as India is concerned because for the last so many years every January

and February this bird flu incident has been reported. From technical perspective if you see

in bird flu, the migratory birds are most susceptible and they are free in movement, of

course many of the times they are carriers and they get in contact with the birds which are

from unorganized sector or desi sector. Third are the birds which are susceptible in terms of

susceptibility, chronology, and fourth comes is the aged birds which are more susceptible

like layer bird or broiler breeder, and last comes the commercial broilers. However, if you

talk about the overall impact of bird flu, the impact of bird flu to the poultry industry will be

different and impact of bird flu as in Venky's per se will be different. We say so because if

you talk of Venky's, Venky's has got almost 46% to 48% of the poultry turnover and rest of

the turnover comes from another segment like oilseed segment or AHP segment. In poultry

segment also there are different segments like SPF, processed food, and then commercial

chick sales, broiler chick sales, and grown up broiler birds. As a consumer or as a

newsreader, definitely it is a matter of concern who reads that the broiler bird prices have

gone down from Rs.80 to Rs.45 or Rs.50. However, if you talk from Venky's perspective,

the grownup broiler bird segment is not at all 100% segment as in Venky's and it is not even

46% of the poultry because it is coming less than 50%. As far as poultry industry's impact

of bird flu is different and Venky's India Limited impact of bird flu is completely different.

As far as the prices are concerned, I am sure that the usual phenomena in past if we see that

whenever such kinds of incidences of bird flu or any kind of shock comes, after one-and-a-

half months to two months the overall prices have gone up and that is the past history as per

the records.

Kalpesh Gothi:

Okay. No question related to this. The price you said that after the event occurs the price

goes up, that was what we exactly saw after COVID. The price dipped and then again they

shot up. My question is related to volume. Is our volume impacted during January or any of

our farm was closed for a period of few months or a few days?

Dr. P. G. Pedgaonkar: As far as poultry cycle is concerned if you see whatever production comes in the month of

January is already placed one-and-a-half months back and that crop has come for maturity

in the month of January. So, also whatever we are placing in the month of January, that crop

will be ready exactly after 40 to 45 days, so the impact of availability of those birds will

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come at the far end of February. As far as our placement in numbers are concerned, actually

it cannot get abruptly changed because of any kind of incident.

Kalpesh Gothi:

Okay, so by that time the broiler price will recover. My second question is related to why

soya segment profit is low for Q3 and whether the low profit will continue in Q4?

N. K. Toshniwal:

The soya profits are not low. They are consistent if you look at the overall situation of the

soya beans. The turnover is more and the profit has been comparatively better. The soya

beans profit is normally derived on the basis of processing what we do. In the month of

November and all because of the holidays, effect was there on the processing. Profits are

based on the amount of seed we crush and applicable for that. The consistency of the soya

beans profits is maintained. I am confident and hopeful that same consistency will be

maintained in the fourth quarter also.

Moderator:

Thank you. The next question is from the line of Akshay Satija from Alpha Invesco. Please

go ahead.

Akshay Satija:

Good afternoon Sir. Congratulations on pretty decent numbers. I just had a few questions.

Could you help me with volumes and value for DOC broiler and layers nine months and for

FY'20?

J. K. Handa:

The volume related to DOC for the period ended April to December you are asking?

Akshay Satija:

Yes from April to December and last year for DOCs for layers and broilers.

J. K. Handa:

For the period April to December 2020 versus April to December 2019, the volume was

definitely impacted because the period was COVID 19, so not much replacement in terms

of broiler chicks as well as layer chicks, no movement of stock, no movement of manpower

and all, so that was affected until June. But July onwards again volume has started coming

back to the broilers as well as layers, September, October, and November and now it is

coming back to normal. Only in January it was again affected due to bird flu but until

December it was back to the original volume which was pre-COVID in regard to layer

chicks DOC as well as broiler chick DOC.

Akshay Satija:

If you can just roughly share what is the volume number? We used to actually share it in

our annual report 2017, so if you could just share the volume numbers for 2020?

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Venky's India Limited February 05, 2021

J. K. Handa:

Average number for broiler chicks was 7 Crores 85 lakhs from April to December 2020, for

layer chicks it was 5 Crores 17 lakhs, and grown up birds was 4 Crores 96 lakhs. The last

year data is already available in the financials.

Akshay Satija:

Okay. Sir one more question I had regarding your poultry feed. Could you help me with

what sort of formulation do we have for poultry feed? What is the proportion of maize and

soya for the poultry feed that we manufacture?

J. K. Handa:

In the poultry feed, basically it is a combination of different materials, but on account of

energy part or on account of protein part it is a mix. For example, on account of energy, it

may be of maize, it may of bajra or any other element which is forming a part of energy.

Similarly on account of protein, it may be soya or it may be other rice gluten oil and all,

different combinations are there which are varying from month to month, depending on the

weather conditions and all.

Akshay Satija:

Okay. One last question Sir, cost of raw materials consumed reported as 593 Crores. I just

wanted to understand what the key raw material is here. Is it mainly soya, maize or

whatever the synergy of protein source that we have or that number also includes some

purchase of broilers from our parent company or outside?

J. K. Handa:

The cost of raw material consumed for the period ended December 2019, nine-month period

is Rs.14 Crores 65 lakhs against the last December 2019 of 19 Crores 17 lakhs. The

reduction in the cost of material is basically on account of maize as well as other ingredients

like even soya. The prices were not so high as in the last year. Even the consumption was

also down in the first quarter April, May, June. So the numbers on account of raw material

consumed is on the lower side if we compare nine months this year versus nine months last

year, on account of rate part of maize and soya as well as the quantity consumed is also on

the low side.

Akshay Satija:

I understand that, but the question I am asking is the cost of materials consumed for nine

months is reported as 14.65 Crores, excluding the purchase of biological assets and stock

and trade and change in inventory, excluding all of that I just wanted to understand how

much is towards the animal feed from this part, maybe 60% or 70% cost towards the animal

feed production and the rest is purchase of broilers or parent breeds, I just wanted to

understand that?

J. K. Handa:

Yes, the cost of material consumed includes all feed ingredients as well as parent broiler

chicks which are required for the buildup of inventory and all medicines and amino acids

and all.

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Akshay Satija:

Okay. Final question, on animal health segment could you give us a rough cost? How much

cost is required? How much of animal health is required per bird? If I have to look at its Sir

we sold somewhere 9 Crore grownup birds, so how much animal health cost per bird is

required?

Deepak Khosla:

In case of animal health we have actually three different categories, the breeders, the layers,

and the broilers. Apart from that, it depends on the requirement of the particular moment.

May be a treatment cost or regular formulation, so this can vary. There is generally no fixed

cost for that.

Akshay Satija:

How much would be the regular cost except for the vaccinations for treatment?

Deepak Khosla:

Generally what we see in the broilers, Rs.1 per bird is the average cost per month for the

animal health.

Akshay Satija:

Okay, and we are self-sufficient in that or we do buy some from outside, or is it we are self

sufficient and we sell the rest in the market?

Deepak Khosla:

As far as the group of companies are concerned, Venky's has a full product line which can

sufficiently take care of all the in-house requirements, 75% to 80% of requirements are

filled by the group company pharmaceuticals.

Akshay Satija:

Okay, Final question. if you could throw some light on the related party transactions. I think

40% to 50% of our sales is inside the group and even purchase of raw materials is heavy. If

you could just throw some light on and give us some idea of what is happening there?

J. K. Handa:

As for the interrelated transactions within group companies, Venky's is selling soya feed

meal to all the group companies and similarly AHP segment is also selling the product to all

the group companies and on the similar line Venky's is also buying the broiler parents and

layer parents from the group companies, and at some places seed is being sold as well as

purchased in group companies also, where we have the feed mills, like Venky's having the

feed mill for captive consumption, if they do not need the feed, but wherever their presence

is there but they do not have the feed mill infrastructure in that case the feed mill is

purchased from the group companies only. Similarly, the vaccines, vaccine is being

purchased from Venkateshwara Group of Companies by Venky's all around because that is

the division with VHPL only. Similarly, poultry group transaction is between the group

companies.

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Venky's India Limited February 05, 2021

Akshay Satija:

Okay, so no DOCs or broilers are sold to another group companies or parent, just wanted to

clarify?

J. K. Handa:

Again, the similar case of feed, in case Venky's presence is there and having the production

facilities and having the order, selling the DOC from their own resources only. Wherever

they are having the order but there are not having the manufacturing facility, they may think

trading of chicks for layer as well as broiler just to fulfill the marketing requirement, but

that is very much minimal because wherever the territory area is out of Venky's they are

having the production facilities and in very rare case they are buying the layer chicks as

well as broiler chicks from the group company.

Moderator:

Thank you. The next question is from the line of Aniruddha Joshi from ICICI Securities.

Please go ahead.

Aniruddha Joshi:

Considering this is the first call, I would like to ask certain questions for everybody. You

just indicate the market size of poultry market in India, then what is the growth in the

market? Also India per capita consumption of chicken and eggs is relatively low, so what

are the figures that will drive the growth and is it changing in the past five or 10 years, then

also indicating about the organized and unorganized ratio because large part of the industry

is in a way unorganized in both poultry field as well as absolute poultry products, so how is

the organized to unorganized ratio? Which are the key players, Venky's is one and what are

the other players in India? Again, emergence of QSR, quick service restaurants, has in a

way again is driving the demand for out of home, so how do you see the out of home

demand shaping up and in general how is the chicken consumption happening in house as

well as out of house? These are my questions.

P. G. Pedgaonkar:

These are different questions, so I will answer one by one. As far as poultry market and size

of poultry industry is concerned in India, we have to consider the food habit at present what

is there in Indian food culture. Almost 70% of the food habit as of now recorded by

Government of India is non-vegetarian eater and 30% are vegetarians. So accordingly

proportion of non-veg to veg is concerned it is 70:30. Second part is total industry size is

concerned, it is growing every year to the tune of 8% to 10% and as of now as far as broiler

industry is concerned it is 75,000 to 80,000 Crores turnover per year. As far as layer

industry is concerned, it is approximately 45,000 to 50,000 Crores turnover per year. So,

both put together this industry size is 1.4 lakh crores turnover, as far as the total turnover is

concerned. Coming to per capita consumption, every year per capita consumption is

growing steadily and as of now we are sitting at 4.5 to 4.6 kg of per capita consumption. If

we compare this with the developed nations, the developed nations are 40 kg plus. In the

developing nations, they are approximately 11 kg and if we take world average, the world

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average states that 14 kg of chicken consumption is average chicken consumption of the

world. So, we are only one-third as far as world average is concerned. Coming to per capita

consumption of egg right now whatever India has recorded, it is 75 to 76 eggs per capita

consumption. That also stands even one-third of if you talk about world average or the

developed nations and the developing nations. So, there is a lot of scope as far as chicken

consumption and egg consumption is concerned and it is a long way to go as far as building

the production capacity and fulfilling the requirement of growing sector and growing

consumption of chicken and eggs. Your second question was organized to unorganized

ratio. Recently Government of India has published a data wherein they have completed the

survey of All India Poultry, wherein now it states that almost 78% of the production is

coming from the organized sector and 22% of the production is coming from the

unorganized sector, which are called as backyard sector or desi bird. That is the

proportionate as far as organized to unorganized poultry is concerned. As far as key players

are concerned, I will handover to Dr. Tijare because your next questions were related to

QSR and who are the key organized players as far as processing is concerned, and over to

you Dr. Tijare.

Dr. Vijay Tijare:

Good afternoon. In processing of the chicken what we record is 95% of the broilers are sold

as a live broiler for the live market or wet market. Around 5% of the broilers are processed

for the processing and for further processing. The key players in the processing along with

Venky's is also Venkateshwara Hatcheries Private Limited and then we have Godrej Tyson,

we have Sumeru, and newly introduced is CP, and Baramati Agro. These are the national

players. Along with national players, there are various regional players also in this sector

who are producing raw chicken or deboned meat or also further processed products. The

emergence of QSRs, yes, there are a large number of QSR already present in India. Naming

few QSRs we have KFC, we have Pizza Hut, we have Burger King and then we have Taco

Bell, we have McDonald's, these are the few leading companies and Venky's is proud that

we are the prominent suppliers to the quick service restaurant chains like KFC, Pizza Hut,

Burger King, McDonald's. Practically, majority of the QSRs are being served by our group

of company. Have I answered your questions?

Aniruddha Joshi:

Yes, many thanks for that. What are the growth strategies that the company is looking at

maybe from a three-year perspective or five-year perspective, do you have any growth plan

or growth vision in mind that you want to reach to X turnover or you want to steadily grow

the business by X percent or you have any market share target, what is your current market

share and where you want to look at the market share after a period of five years?

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Dr. Vijay Tijare:

As my colleague as expressed to you that we experience a growth potential in the market

Venky's India Limited February 05, 2021

for the broiler chicken to around 8% to 10%, but as you are aware there are very good

opportunities for exports in the processed food sector because of the harmonization in India,

the consumers are looking for the convenience and there is a large middle class population

in India, and very good retail marketing has been established in India with good food chain.

With that, we are looking for a good jump in the processed food sector and what we expect

is that there should be minimum 25% growth in the processed food sector other than the

QSR sector which is only for the retail market, so that is our thought process. In

continuation to that, we are also supporting the consumer demands by developing certain

new products on a regular basis. Earlier we started with breaded products in chicken sector

like chicken nuggets, chicken burger patties and others. Now we have come up with a range

of easy to cook or ready to eat products which are completely cooked products and they are

available to the consumers like butter chicken or chicken masala, these are the ready

products available to the consumers. So, we are heading to a sector which is the demand of

the consumers and our marketing team conducts regular survey with the consumers for their

demand and we are developing products from our R&D on a regular basis in tune with the

demand.

Moderator:

Thank you. The next question is from the line of Awanish Chandra from East India

Securities. Please go ahead.

Awanish Chandra:

Congratulations Sir on a great set of numbers and thank you very much for starting this

conference call practice, hope it will be continued. Sir, my first question is the company has

earlier announced their plan to increase fast food outlets, so how many are there now and

what is the target for the next two to three years in this business?

Dr. Vijay Tijare:

As you are aware, Venky's started with the restaurant chain for Venky's Chicken Xpress and

these are the take-away joints which we started on an initial basis and we got a good

response to this and then we started with a new concept of joining franchisee to partner with

our business and now we started a franchisee business in the name of Venky's Chicken

Xperience, so these are the new outlets. We have presently around 17 outlets of Venky's

Chicken Xpress and 56 outlets for Venky's Chicken Xperience. Now, these franchisee

outlets we have planned to have expansion like in the Western. West side we will have an

expansion from almost 2.5 times in this coming year. Similarly we have expansion plans

lined up for the north. In the north we have a good presence of these outlets, so we will be

expanding also, in the north we would double, and similarly for east and south. So, we have

expansion plans lined up as for the regional visits everywhere and our target would be A

grade cities and B grade cities for this expansion part.

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Awanish Chandra:

Okay, Sir your Capex plan in each of the business segment for the next two to three years

and where we are at the capacity utilization in each of the business segment, if you could

just highlight in each segment capacity utilization and Capex plan?

J. K. Handa:

In regard to capital plan, already in the year 2018-2019 and 2019-2020 we have incurred

two projects for SPF project expansion as well as for soya extraction plant. Those

expenditure plans are already completed and we are having sufficient production facilities

in our hand at all of our manufacturing units, so as of now from here to the next three years

roughly 40 to 50 Crores will be the capital expenditure every year for 2021-2022 and 2022-

2023, which will take care of existing operations, units where capitalization is needed, but

we are having sufficient production facilities all around in terms of broiler chicks, in terms

of layer chicks, in terms of soya extraction plant, feed mill, SPF as well as AHP. As of now

for up to three years, 40 to 50 Crores every year would be the capital expenditure. Capacity

wise if you see as of December 2020 layer parent and broiler parent capacity is used to the

extent of 70% to 75%. Similarly as of feed mill 75% because it is backup with LP and BP.

SPF facilities to the extent of 59% utilization because very recently we built up a new

capacity. AHP powder section is utilized to the extent of 80%, 20% is still left out and

similarly AHP liquid section is to the extent of 71%. Food processing is 50%, soya

extraction is to the extent of 65% capacity utilization and again in soya DOC is to the extent

of 83% as well as refined oil is to the extent of 95% utilization. So, all around in different

segments we are having the capacity utilization and then available capacity to take care of

the marketing requirement for the next two to three years.

Awanish Chandra:

Okay Sir understood and this quarter we had hit 100 Crores plus profit. How as a team you

are confident that at least this run rate would be continued in coming quarters?

J. K. Handa:

Yes, this will be continued in the next quarter also but at the same time there are sometimes

volume-related issues and all. Those things will be there, hopefully we will be doing better

than last year and maybe the year before last year also. We are trying our best because in

our production facilities, capacities are available. In January, we maybe had a hit for 15 to

20 days, but that effect is also gone, so hopefully we will utilize our capacity to a greater

extent.

Awanish Chandra:

Okay and one last question from my side, you have already explained bird flu factor. Apart

from these kinds of bird flu factors, what exactly are the other risk factors that you account

in your business, especially on the poultry side?

Dr. P. G. Pedgaonkar: As far as livestock is concerned, this livestock industry has grown and matured to such a

level that all the kinds of risks are analyzed properly and those risks are being taken care of

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by prevention. We always believe that prevention is the best method to control any

eventuality and we are well prepared as far as prevention plan is concerned. So, vaccination

is one of the most important and effective tools for prevention of all the kinds of diseases.

As far as bird flu is concerned, of course vaccines are international strategy, however, as per

the strategy of Government of India as of now vaccination is not allowed, so that is the only

reason because of which against bird flu the birds are not vaccinated; however, all other

risks which are already there or which were there those were all taken care of properly and

all the vaccines are available as far as preventing any kind of eventuality or risks related to

disease is concerned with regard to broilers and with regard to layers. So, we are well

equipped and if Venky's cannot do then on a very lighter note or you might take me over-

confident that is our strength because of the infrastructure and the kind of lab support we

are having, definitely we are sure that any kind of eventuality or any kind of risks we are

well prepared with those kinds of infrastructure, thank you very much.

Moderator:

Thank you. The next question is from the line of Hitesh Mahida from HDFC Life. Please go

ahead.

Hitesh Mahida:

Sir on the profit rendered of 100 Crores which we have been maintaining in the last couple

of quarters, which we have sort of revived from what we did in Q3 and Q4, what has led to

this revival and what should be the run rate going ahead as far as top line and bottom line is

concerned?

J. K. Handa:

In regard to the top line, we are very well equipped with our production facilities which are

available at all the units with regard to all segments, so capacity percentage utilization is

already explained and we are having sufficient scope to meet the marketing requirement in

case it is there, so we will be utilizing those facilities or capacities for the volume of layer

chicks, broiler chicks, rather of all the segments, AHP, soya, and all. If those things are

there, we will be definitely in line with our earlier quarter's performance or corresponding

quarter in regard to the top line. Similarly, the bottom line would also be there. Reasons for

increase in the profit is mainly due to the poultry segment which has exceptionally

performed to the greater extent because of prices of realization of day old broiler chicks,

day old layer chicks as well as the commercial broiler birds were very good in the last

quarter, so that was the reason poultry has performed excellent. Similarly, those numbers

will be continued, even in the December quarter if you see 13.24% is the turnover increase.

Similarly in the animal’s product, it is 8.85% is the growth over the last corresponding

quarter and similarly in oil seeds, however, it has not performed in line with the last quarter

but has given a good growth. Poultry itself has given a wonderful growth in the top line as

well as in the bottom line which has made 100 Crore profit.

Page 12 of 17

Venky's India Limited February 05, 2021

Hitesh Mahida:

Okay. Sir, how do you see these realizations going ahead considering the scare of bird flu

and all, has it had any impact on our realizations or volumes? How do you see the trend

going ahead?

J. K. Handa:

Yes, bird flu has impacted in the January month January volumes were affected and

realization was affected due to this, but that has also now slowly getting over, hopefully we

are back to the prices, like for broiler birds it was Rs.40 to Rs.42, which has come up to the

level of Rs.60, so slowly we are coming up with price realization after this bird flu,

hopefully again in the month of February again the festivals are also there which will drag

the numbers as well as the realization is a big way positively.

Hitesh Mahida:

Okay. The run rate of 100 Crores, how do you see this going ahead in the coming years?

J. K. Handa:

For the forthcoming quarter or forthcoming period, we are hopeful of better numbers over

the previous period, but we are not having any specified numbers for those things, but we

will be definitely performing better than the previous period.

Hitesh Mahida:

Okay, and Sir as far as promoter Group entity is concerned, how is the bifurcation done

within, I think you guys doing north and the listed entity does in north and west and the

unlisted entity does business in south, is that how it works?

J. K. Handa:

Venky's has very geographical demarcation in northern states covering 11 states, starting

from Jammu and Kashmir to Bihar we are covering 11 states. Similarly, Venky's is also

coming in the west area covering Maharashtra, Gujarat, and Madhya Pradesh. We are

having almost 14 to 15 states catering the marketing requirement of poultry and poultry-

Please find attached herewith the transcript of the conference call for investors and analysts held by Venky s (India) Limited on Friday, 5th February, 2021.

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