Agro Tech Foods Limited has informed the Exchange about Investor Presentation
30th November, 2021
The Manager, BSE Limited, Floor 25, Pheroze Jeejeebhoy Towers, Dalal Street, Mumbai - 400 001. Ph. No. 022- 22721233 / 22721234 Fax No. 022-22723121 / 22721072
The Manager Listing Department National Stock Exchange of India Limited Exchange Plaza, Bandra-Kurla Complex, Bandra (E), Mumbai – 400 051. Ph.No. 022- 26598100 / 26598101 Fax No. 022-26598237 / 26598238
Codes:
BSE Scrip code 500215, Co. code NSE Symbol ATFL, Series EQ-Rolling Settlement
1311
Dear Sirs,
Sub: Disclosure under Regulation 30 of the SEBI (Listing Obligations &
Disclosure Requirements) Regulations, 2015
Further to our earlier letter dated 23rd November, 2021 regarding hosting of an analyst and investor meet to be held on 30th November, 2021 through video conference, we are enclosing a copy of the presentation proposed to be shared to analysts and investors at the said meet. The presentation would also be placed on the website of the Company.
You are requested to take this on record.
Thanking you,
Yours faithfully, For Agro Tech Foods Limited
JYOTI CHAWLA COMPANY SECRETARY
Encl. a/a.
ATFL an affiliate of
Corp. Office: 15th Floor, Tower ‘C’, Bldg # 10, Phase II, DLF Cyber City, Gurgaon-122002. Tel: 91-124-4593700, Fax: 91-124-4593799 Regd. Office: 31, Sarojini Devi Road, Secunderabad – 500 003, India. Tel: 91-40-66650240, Fax: 91-40-27800947 Web: www.atfoods.com
CIN: L15142TG1986PLC006957
Agro Tech Foods Limited Analyst Meet
November 30th, 2021
Company Strategic Vision
The Best Performing Most Respected Foods Company in India
2
ATFL – The Last 12 Months
• Significant transformation of the Company with increasing share of
Foods and consequently improved Gross Margin visibility.
• Two major decisions in FY’21 producing strong results –
• Decision to increase Media support helping to continue delivering growth
in FY’22 despite elevated bases.
• Decision to improve relative pricing of Premium Oils - GM now trending
well to PY.
• Short term challenges of commodity input prices being addressed on a category by category basis. Expect to see less inflation in second half with more pricing. A&P also moderated in October/November.
• Making clear progress towards becoming “The Best Performing Most
Respected Foods Company in India”.
3
Ready to Cook Snacks – Current Status
RTC
Volume
Value
Q1
Q2
YTD FY’22
+36%
+11%
+39%
+12%
+21%
+23%
• RTC Popcorn continues to stay in growth mode
despite elevated bases–sustained media support since May ’20 & 2nd Wave. Judicious pricing taken. • Presence in Sweet Corn now established. Headroom was available to take pricing and up to 25% price increase already executed.
• Differentiated Pasta Offering receives very positive response. Scaling up of production now underway.
• Pad Thai Kit roll out commenced.
4
Ready to Cook Snacks – Way Forward
• Leverage architecture to establish leadership in the unmet consumer need of Meal & Snack Kits. Position Sundrop Ambient Mini Meal Kits between restaurants/food delivery and in home cooking/masala snacks.
• Scale up current offerings of Pasta & Pad Thai Noodles. Focus on Pasta and
leverage retail demo capabilities used for building Popcorn.
• Broaden range with the introduction of more options in Chinese, Italian,
Thai & Mexican and possibly more occasions e.g. Breakfast.
• Use Plant Meat Protein to strengthen Consumer Proposition, Leadership
Position and Pricing Power.
• Create a Cocoa Based range of offerings including Cocoa Powders, Hot Chocolate & Microwaveable Cakes – gain scale across the Cocoa supply chain.
• Use capabilities to exploit adjacencies - Soups, Baked Beans etc. Seize Significant Consumer Opportunity in Kits – Strengthen Leadership with Non Dairy Protein.
5
Ready to Eat Snacks – Current Status
RTE
Volume
Value
Q1
Q2
+1%
+18%
YTD FY’22
+11%
+9%
+15%
+13%
• Clear recovery with lower Covid19 threat perception. • YTD Value Growth reflects stronger performance of Popcorn with higher Net Sales realization and changes in Go To Market in July 2020.
• Price increases and Grammage Reduction underway basis Market
and Category Assessment.
• Learning continues on Potato Chips – business model being
developed.
6
Ready to Eat Snacks – Way Forward
• Restore Gross Margin of existing portfolio through
Grammage/Pricing and appropriate changes in input RM/PM.
• Reduce Freight by driving Volumes towards 32 Feet Containers.
• Upgrade Margin Profile through Value Added introductions –
Leverage protein expertise of Peanut Butter and chocolate expertise of Chocolate Confectionery.
• Refine business model for Potato Chips – leverage Low Fat
proposition combined with Brick & Feathers distribution model.
Strengthen Conveyor Belt while Improving Profitability.
7
Spreads & Dips – Current Status
Spreads
Volume
Value
Q1
Q2
YTD FY’22
+12%
+6%
+9%
+15%
+7%
+10%
• Repositioned premium of primary competitor at
Rs. 175 through resizing/pricing.
• Threat from players at c Rs. 100 price point addressed
through introduction of Nut Fest peanut butter. • Execution of pricing on 924 gm Pack underway. • Roll out of Almond Butter variants underway and Chocolate
Spreads gaining momentum.
• Entry into Dips well accepted establishing the base for a
larger ATFL category presence.
8
Dips, Spreads & Dressings – Way Forward
• Establish a proposition for High Protein Peanut Butter and other
High Protein Spreads.
• Expand distribution of Chocolate Spreads. Continue to avoid
undifferentiated categories such as Honey and Jams.
• Expand distribution of Hummus while using the beach head now
established to expand presence in the Dips category.
• Leverage existing Capabilities to establish a beach head for
Dressings.
Capture changes in Consumption Habits which are driving Category Growth.
9
Breakfast Cereals – Current Status
Cereals
Volume
Value
Q1
Q2
YTD FY’22
+82%
+55%
+65%
+60%
+36%
+45%
• Initial acceptance of Popz as a Cereal Snack achieved – expansion into Primary Category commenced – reflected in Larger Pack offerings.
• Some disruption due to Covid19 on market working. With a tentative return to normalcy focus again on distribution expansion
• Near term focus on Distribution, Demos & Display to build the business to a level of c Rs. 20 crore annual revenues before investing in A&P.
10
Breakfast Cereals– Way Forward
• Extruded Cereals:
• Expand distribution with re-opening of the economy. Leverage retail
capabilities and product price point offerings.
• Execute changes in Product Price Architecture with increased offerings in
Large Packs (Cereal Snacks - Breakfast Cereals).
• Oats:
• Gain scale in the category by expanding beyond the current Granola
offering into Muesli & Oats.
• Bring the business to media support levels by end FY’23/FY’24.
Continue to stay away from Honey & Jams.
Leverage Superior Quality Products & Retail Coverage Capabilities to steadily grow the business.
11
Chocolate Confectionery – Current Status
Chocolates
Q1
Q2
YTD FY’22
Volume
Value
+105%
+534%
+296%
+149%
+768%
+422%
• Combination of a large category,
differentiated product and SKU’s at attractive price points make this the easiest ramp up of any product launched by ATFL.
• Quadrupling of Capacity initiated at Jhagadia facility. • Currently producing only Rs. 10 & above Packs in terms of price points. Rs. 5 pack on hold due to capacity constraints.
• Likely candidate for leading Distribution Expansion for
ATFL in the coming years.
12
Chocolate Confectionery– Way Forward
• Scale up the Coconut Center based offering and capitalize on first mover advantage. Quadrupling of capacity initiated and assess additional requirements basis in market performance.
• With increased GM certainty (higher share of Foods, less attrition in
Edible Oils ) plan for Media support by FY’23.
• Initiate in market testing of Peanut Variant basis available capacity.
• Develop and launch a Premium Truffle Range in FY’23.
Fully exploit a differentiated product offering in a large category with first mover advantage.
13
Diversified Portfolio for Profitable Growth
Portfolio spanning Multiple Categories/Price Segments
14
Edible Oils – Current Status
Premium Oils
Volume
Value
Mass Oils
Volume
Value
Q1
-12%
+20%
Q2
+4%
+36%
YTD FY’22
-4%
+28%
Q1
-71%
-50%
Q2
-51%
-26%
YTD FY’22
-62%
-38%
• Premium Oils up 4% Volume in Q2 –close to mid single digit
growth.
• Reduction of Mass Oils volume in line with overall planning. Crystal
franchised in line with strategy w.e.f. November 1st.
• GM trending well to PY.
15
Edible Oils – Way Forward
• Build on price correction in Premium Oils to deliver mid single digit
growth on a sustained basis.
• Reduce Volatility impact of Commodity Prices on Revenues through
gradual phasing out of Mass Oils:
• Crystal moved to Franchising Model w.e.f. November 1st, 2021. FY’22 Sales
of Rs. 57 crore vs Full Year FY’21 of Rs. 108 crore.
• Target minimal contribution of Mass Oils by FY’24 including
possibility of complete exit while retaining sections with margin potential similar to Premium Oils.
Establish a new algorithm for Premium Oils to enable steady profitable growth. Phase down Mass Oils.
16
Competitive Update (as of 30th September 2021)
Snacks: Competition Spends
Rs. Million
F-17
F-18
F-19
FY20 Q1-21 Q2-21 Q3-21 Q4-21 FY21 Q1-22
Jul-21
Aug-21
Sep-21 Q2-22
ACT II
Lays
Kurkure
Doritos
Cheetos
Bingo
Parle
Crax
110
148
196
0
0
74
374
260
128
0
683
965
0
58
0
55
Yellow D
248
145
65
10
0
0
0
1
146
0
Mexitos
Cornitos
Too Yumm
Balaji
Pipo
Total Tracked Brands
38
252
396
150
46
815
0
106
256
0
0
470
21
45
491
321
252
34
954
0
139
139
0
0
312
201
13
28
0
0
0
32
83
61
0
0
20
79
111
0
0
30
145
64
0
0
95
335
237
0
0
18
238
98
10
78
15
65
0
163
260
680
149
1252
242
122
2
0
0
0
0
0
7
13
38
17
0
0
47
29
3
39
23
0
0
78
1
0
1
62
22
0
0
36
56
1
20
138
61
0
0
161
93
1
2
20
14
14
2
0
20
11
0
0
82
26
0
10
54
1
50
0
56
0
17
10
0
0
0
4
0
10
70
49
0
0
83
0
26
11
0
0
17
0
0
31
202
65
116
0
261
0
63
31
0
0
99
30
0
1517
2147
2549
2888
214
580
1033
573
2394
648
428
203
266
897
Frito Lay increases spends to become the largest spender in Q2. Steady ATFL investments.
18
Spreads: Competition Spends
Rs Million
F-13 F-14 F-15 F-16 F-17 F18
F-19 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22 Jul'21 Aug'21 Sep'21 Q2-22
Kissan Jam-
254
207
304 381 357
512
704
752
218
218
110
134
679
156
Kissan PB
101
Sundrop PB
0
0
42
64
56
30
16
20
8
18
13
Veeba PB
Amul Peanut Spread
Pintola PB
Saffola Honey
Patanjali Honey
0
44
25
0
0
Dabur Honey
Lion Honey
Apis Honey
Hershey’s Spreads Tracked Brands Total
0
69
18
0
0
0
102 317
182
95
7
69
203 134
180
206
131
18
15
9
7
8
0
0
2
0
16
65
25
54
159
166
59
20
8
117
14
228
12
4
22
0
23
5
0
0
1
34
6
0
0
95
18
54
79
46
80
6
2
38
196
109
58
54
196
62
364
29
7
60
12
1
2
19
47
24
6
0
3
55
35
6
0
1
19
16
9
4
0
0
50
29
6
0
1
16
10
50
4
0
18
50
64
6
0
1
4
31
8
6
3
0
7
154
129
18
0
3
4
66
33
64
10
0
26
323
294
433 767 943 1135 1220
996
255
277
621
552
1703
379
144
183
179
507
Unilever lowers Jam spends but maintains PB. Increased competitive intensity visible in Honey & PB. Steady ATFL presence.
19
Breakfast Cereals: Competition Spends
Rs Million
FY-17 FY-18 FY-19 FY-20 Q1-21 Q2-20 Q3-21 Q4-21 FY-21 Q1-22
Jul’ 21
Aug’ 21
Sep’ 21
118
88
142
355
124
42
Kelloggs Cornflakes - Total
202
265
390
230
Kelloggs Chocos Fills
0
125
203
17
Kelloggs Chocos - Total
Kellogs Muesli
Kelloggs Granola
Nestle Koko Krunch
310
362
509
329
0
0
0
118
239
147
0
0
1
193
14
60
7
0
38
30
14
52
0
122
65
30
39
9
76
43
28
24
Saffola Oats - Total
322
283
268
448
121
125
101
Quaker Oats- Total
102
164
110
269
Cadbury’s Bournvita Fills
Tata Soulfull
0
0
0
17
0
0
98
2
0
65
10
0
0
25
13
6
0
0
9
0
110
344
111
40
18
7
78
21
9
0
177
89
121
52
22
0
424
145
26
4
0
184
130
20
0
5
0
Q2- 22
124
0
81
40
17
0
83
14
0
2
33
0
27
16
7
0
27
10
0
0
50
0
29
11
4
0
30
0
0
0
Tracked Brands Total 975 1,317 1,979 1,530 260
598
442
424 1,724 589
115
120
125
361
Category Spends lower than Q1 – possibly as players seek to expand investments in other Categories.
20
Chocolates: Competition Spends
Final Brand ( In Million)
FY- 18 FY- 19 FY-20 Q1 Q2
Q3
FY-21
Q1-22
Jul-21
Aug-21
Sep-21
Q2-22
744 138 2229 598 416 321 484 0 0 7 0
217 0 187 414 597
482 212 2166 407 285 231 837 0 0 61 42
259 0 146 604 712
0
46 26 55 0
217 142 84 0
102 192 79
727 385 277 320 2362 209 915 1082 477 126 389 145 598 105 1193 358 0 85 0 144 139 23 235 94 51 6 6 42 131 207
25 0 6 0 97 20 178 87 137 294
201 23 368 626 841
26 82
4 3
Q4
281 0 771 120 126 226 250 47 34 56 134 3 33 9 47 151 305
960 399 2978 509 438 470 608 132 179 109 314 54 65 21 206 547 943
0
23
69
0
8
35
10
53
Cadbury 5 Star Cadburys Celebration Dairy Milk Cadburys Fuse Cadburys Gems Cadburys Perk Kinder Kinder Creamy Ferrero Rocher Amul Hersheys Kisses Hersheys Exotic dark Snickers Galaxy Nestle Milky Bar Nestle Munch Nestle Kit Kat Nestle Bar One Fabelle Candy Man Choco bar XL Brit Treat Stix Total tracked brands
150
864 41 115 129 117 24 44 26 14 41 5 7 22 53 150
17
53 0 275 53 53 48 0 21 0 5 23 0 0 0 12 60 79 2 0 0
683
80 56 230 42 45 35 0 3 0 2 30 0 6 3 24 43 15 1 0 6
624
142 0 664 50 46 50 0 57 0 1 34 0 21 0 26 0 81 0 0 30 15 1216
276 56 1168 146 143 133 0 80 0 8 87 0 27 3 62 103 175 3 0 36 15 2523
6520
6898
9261 697 2530 3483
2905
9615
1835
Mondelez the dominant spender in the Category.
21
Edible Oils: Competition Spends
Rs Million
F-12 F-13 F-14 F-15 F-16 F-17 F-18 F-19 FY-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1-22
Jul’ 21
Aug’ 21
Sep’ 21
Q2-22
Sundrop Heart
88
94
50
65
46
34
21
0
0
0
0
0
0
0
0
121
212
356
291
338
320
588
544
527
114
145
61
81
400
116
0
203
356
148
319
828
666
543
495
37
208
198
68
510
166
156
137 1214
647
626
13
371
174
241
799
150
32
27
41
30
26
103
354
966
170
20
4
0
12
13
0.7
12
11
36
40
49
46
29
55
98
228
31
31
52
11
11
6
0
69
41
0
2
52
27
15
5
7
0
0
15
86
53
145
11
2
11
28
70
29
27
41
209
509
762
504
961 1700 3576 1936 1694
168
643
512
534
2024
546
171
108
119
398
722
915
815 1280 1876 2153 1672 1652 2096
362
531
1005
867
2597
537
137
216
284
637
Category Total 931 1424 1577 1784 2837 3853 5248 3588 3790
529
1174 1517 1401 4621 1083
308
323
403
1035
Fortune becomes the dominant spender in Q2 at almost 2X of Saffola and Emami.
22
Saffola
Fortune
Emami Ltd.
Oleev
Patanjali
Gemini
Tracked Brands Total
Others
Noodles: Competition Spends
Tracked Brands (in Million)
Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1- 22 Jul’21 Aug’21 Sep’21 Q2-22
Chings Noodles
Wai Wai
Knorr Soupy Noodles
17
0
0
2
0
0
Sunfeast Yippee noodles
81
168
Sunfeast Yippee Saucy/ Mood Masala
Saffola Oodles
A&M Twisty Noodles
Maggi Chatpata Tomato Noodles
Maggi Fusian
Maggi Masala Veg Atta
Maggi Noodles
Maggi Special Masala
Pran Mr Noodles
1 to 3 Chatpat noodles
Goldiee Noodles
Trdp Mario Masala Noodles
0
0
4
0
11
123
135
5
4
0
0
0
0
0
0
0
0
38
46
0
7
0
13
8
19
0
140
85
0
0
5
0
0
5
141
115
12
0
3
3
20
1
0
336
0
0
4
0
0
85
282
6
9
4
0
0
0
17
0
57
144
0
5
11
0
62
178
9
14
2
0
0
40
19
140
647
144
0
13
11
0
190
648
131
43
6
17
11
0
6
0
185
3
135
0
0
0
62
243
0
6
0
0
0
21
16
27
3
2
2
24
20
36
26
4
2
110
36
44
115
3
3
2
155
36
99
47
143
3
8
4
Total
382
284
528
749
504
2064
648
72
111
313
496
Increased competitive intensity reflected in Category Spends.
23
Pasta: Competition Spends
Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21 FY-21 Q1- 22
Jul’21
Aug’21
Sep’21 Q2-22
Bambino Pasta
Sunfeast Yippee pasta
Keya Italiano Pasta
Maggi Pazzta
Maggi Pazzta Cheese Macaroni
Savorit Pasta
Weikfield Pasta
TOTAL
0
0
2
0
0
4
0
6
0
0
0
0
0
11
0
11
0
90
0
0
0
0
0
0
1
0
24
47
2
0
90
75
0
1
0
26
30
0
24
83
1
93
0
50
77
14
24
259
0
0
0
1
2
0
0
3
0
0
0
0
0
0
4
4
1
1
0
1
4
4
Almost no category investments YTD FY’22. (Correction in chart as October Update incorrectly showed Noodles spends under Pasta)
24
Q1-22 Jul-21 Aug-21 Sep-21 Q2-22
Soups: Competition Spends
Tracked Brands (in Million) Q4-20 Q1-21 Q2-21 Q3-21 Q4-21
Ching’s Instant Soups
Eastern Instant Rasam
Knorr Chicken Delite Soup
Knorr Chinese Manchurian
Knorr Sweet Corn Veg Soup
3
1
8
6
5
Knorr Cup-A-Soup
13
0
1
19
0
0
0
37
8
23
51
0
0
29
0
42
0
0
0
FY- 21
66
9
1
0
23
107
0
0
0
51
0
0
0
0
8
0
0
0
3
0
8
0
0
0
Knorr Hot & Sour Veg Soup
192
65
231
244
191
731
100
47
B Natural Soups
Mtr Minute Rasam
0
0
0
0
0
0
0
24
2
0
2
24
0
0
0
0
Total
228
85
350
338
218
989
108
58
3
0
7
0
0
0
43
0
0
52
0
0
8
0
0
0
5
0
22
0
0
0
53
143
0
0
0
0
61
171
Knorr remains the dominant spender. However, brand spend including Soupy Noodles lower than PY by c Rs. 25 crore.
25
ATFL – The Highway Ahead
• Continue to drive growth through steady investment in current
food businesses – Ready to Cook Popcorn, Peanut Butter.
• Scale up new businesses – Chocolates, Breakfast Cereals, Chocolate
Spreads and Meal/Snacking Kits.
• Steadily build existing Adjacencies while seeding new ones – Sweet Corn, Hummus, Salsa, Cocoa, Soups, Potato Chips, Baked Beans etc.
• Establish algorithm for steady profitable growth of Premium Oils at
the new price relative to market.
A diversified Best in Class Foods business with limited dependence on Edible Oils.
26
Company Strategic Vision
The Best Performing Most Respected Foods Company in India
27