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Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE PRODUCT
• Ice Cream is a product that is enjoyed
across the wor...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE INDUSTRY • Rapidly growing industry growing at 20% per
annum ac...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE PLAYERS
• Amul & Kwality Walls are the only pan India
players.
...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE COMPANY
• Dairy Ice Creams & Frozen Foods (P) Ltd or
DIFF was i...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE VISION & MISSION
• VISION: Delivering the experience of
Pure Pl...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE MARKET
• Multiple brands of DIFF
• Diffys
• Exclusia
• Jumani
•...
First HACCP certified
ice cream plant in AP
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE TEAM
• AJAY KUMAR VADHI, MD
• He is a post graduate and started...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE PRODUCTS
Impulse
Cups
Cones
Sticks
Novelty Packs
Carry Ho...
KEY CLIENTS
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
Diffys
•Currently our largest selling brand.
•The most visible bran...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE EXOTICA /
EXCULSIA
Exotica is the first super premium indian b...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE SINSPOT
SINSPOT – a successful franchisee of exotica launched
3...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE HALKA
• First successful commercial branded diabetic friendly
i...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE JUMANI IGLOO
• Exclusive uniquely designed mobile vending units...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
THE JUST CHILL Soon to be launched chain of
exclusive Ice Cream st...
THE SALES NETWORK
Strong Distribution
and dealer Network
is the result of
Lucrative Margin and
Return that brand
Jumani pr...
COMPETITORS IN
INDIA
• Amul(8)
• Quality Walls(7%)
• Vadilal(3%)
• Mother Dairy(2%)
• Cream Bell(1%)
COMPETITORS IN AP
Quality Walls (8%)
Amul (5%)
Scoops(4%)
Dinshaw(1.5%)
JUMANI (2%)
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
AWARDS &
ACCOLADES
• Most awarded ice cream company in 2010
• Brand...
AWARDS &
ACCOLADES
AWARDS & ACCOLADES
Advantages of proposed acquisition of Western
region dominant ice cream player
• Direct access to major and growth market ...
Expansion of market and distribution network
• Penetrating into newer territories
of Andhra Pradesh, Tamil Nadu
and Southe...
Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential
Strengths Weaknesses
• Quality & Consistency.
• State of Art produc...
THE ROAD MAP
•Focus on complete regional coverage for
brand Diffys by rapid retail expansion that is
currently on and prop...
EBITDA OF THE PROJECT
Rs in Lakhs61.41
124.58
176.3
217.98
415.01
543.26
673.15
722.66
746.21
0
100
200
300
400
500
600
70...
PAT OF THE PROJECT
Rs in lakhs
14.31
22.46
12.18
18.98
167.59
288.06
455.23
541.92
592.73
0
100
200
300
400
500
600
700
20...
Value of Operating Equity
Present value of
unlevered firm
Rs. 4173.50 Lakhs
Present value of tax
shield
Nil
Present value ...
INVESTMENT MODE : Compulsory Convertible Debentures
A debenture is an instrument of debt executed by the company acknowled...
THANK YOU
Diff presentation 29 june 2013
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Diff presentation 29 june 2013

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Transcript of "Diff presentation 29 june 2013"

  1. 1. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE PRODUCT • Ice Cream is a product that is enjoyed across the world without the barriers of food habits, cultures, age & gender. • Ice Creams have traditionally been part of popular culture for every celebratory occasion whatever the size. • Ice Creams are highly impulse driven and are available across counters varying from Grocery stores to exclusive parlors.
  2. 2. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE INDUSTRY • Rapidly growing industry growing at 20% per annum across the country. • Indian ice cream market is worth Rs. 3500 crores (750 Million USD Approx) in terms of retail value • Annual national consumption pegged at 300 million liters in terms of volume. • Per capita consumption of ice cream in India is 0.3 liters, as against 2.9 liters global average leaving tremendous scope for growth for 2 or 3 decades. • Maximum growth is in B & C tier towns. • Virtual non availability in 50% of the country.
  3. 3. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE PLAYERS • Amul & Kwality Walls are the only pan India players. • Substantial number of regional players. • Largest volume delivered by local & artisanal players.
  4. 4. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE COMPANY • Dairy Ice Creams & Frozen Foods (P) Ltd or DIFF was incorporated in the year 1980. • Produces an wide array of Ice Creams & Frozen Desserts. • First HACCP certified ice cream plant in AP • New facility of DIFF incorporates the latest in international food safety standards. • New facility has gone live from december 2011
  5. 5. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE VISION & MISSION • VISION: Delivering the experience of Pure Pleasure • MISSION: To create Ice Creams that deliver pure pleasure in absolutely safe, state of art facilities that meet the highest standards and deliver the experience of unadulterated happiness.
  6. 6. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE MARKET • Multiple brands of DIFF • Diffys • Exclusia • Jumani • Halka • Private Label partnerships of DIFF • Metro • DIFF operates in all segments of the industry. • Retail • Institutional • Catering • Ice Cream Parlors • Mobile Vending Operations • Super Markets
  7. 7. First HACCP certified ice cream plant in AP
  8. 8. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE TEAM • AJAY KUMAR VADHI, MD • He is a post graduate and started his career with Cadbury India Ltd in 1989. • Worked with Uni Lever Group in the Ice Creams divisions till 1996. Quit to start his own ice cream business. Bought over the current company in 2002. • Sheik Mujibulla, Head of Quality Assurance • Post Graduate in microbiology with about eight years experience in ice cream industry in India and Saudi Arabia • M. NAVEEN, Production Manager • He is a micro biologist by profession. • Has had extensive experience in productionand research and development of new products and recipes. • VENU KUMAR, Head – Distribution & Logistics • Has a 10 year experience in the industry. • currently responsible for overall primary distribution and services of the company. • SRIDHAR, Sales Head • Has about 9 years experience in the FMCG industry. • Currently heads the sales network and has the overall responsibility of increasing the footprint of the brand in the market.
  9. 9. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE PRODUCTS Impulse Cups Cones Sticks Novelty Packs Carry Homes Pre Filled Sundaes Institutions Packs
  10. 10. KEY CLIENTS
  11. 11. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential Diffys •Currently our largest selling brand. •The most visible brand in the modern trade. •Currently sold in major parts of Andhra Pradesh. •Current outlet base of 750. •The entire retail market is being serviced by a network of distributors. •Extremely strong institutional presence.
  12. 12. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE EXOTICA / EXCULSIA Exotica is the first super premium indian brand Naturally Flavored without artificial ingredients like Colors & flavors Product designed in line with global standards Positioned to deliver absolute pleasure Natural vanilla – Voted India’s best premium ice cream Pa n India roll out in next 3 years Currently being rebranded as Exclusia for expansion into pan India markets.
  13. 13. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE SINSPOT SINSPOT – a successful franchisee of exotica launched 3 sinspots activated in Hyderabad in the most premium locations Awarded the best Ice Cream store in the region by times Food Guide Pan India roll out in next 3 years
  14. 14. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE HALKA • First successful commercial branded diabetic friendly ice creams •It is available through retail chain as well as super markets •Available in two variants •Sugar Free •Low Fat •Opportunity to expand the portfolio further with more specialized health friendly ice creams
  15. 15. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE JUMANI IGLOO • Exclusive uniquely designed mobile vending units • Highly popular near tourist locations as well as well as near kid zones • Creates a massive market for impulse buying • Most effective medium of brand building and also serves as reminder advertising
  16. 16. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential THE JUST CHILL Soon to be launched chain of exclusive Ice Cream stores for brand Jumani. Standardized exterior and parlor ambience. 20 to 25 stores planned for this year
  17. 17. THE SALES NETWORK Strong Distribution and dealer Network is the result of Lucrative Margin and Return that brand Jumani provides to Them. It provides to Them deep freezers For storage of ice Creams, display signs Broads, pop Promotional material, Etc.
  18. 18. COMPETITORS IN INDIA • Amul(8) • Quality Walls(7%) • Vadilal(3%) • Mother Dairy(2%) • Cream Bell(1%)
  19. 19. COMPETITORS IN AP Quality Walls (8%) Amul (5%) Scoops(4%) Dinshaw(1.5%) JUMANI (2%)
  20. 20. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential AWARDS & ACCOLADES • Most awarded ice cream company in 2010 • Brand Jumani won 6 out of 8 silver categories in Great Indian Ice Cream Contest • Sin spot has been Voted as the best ice cream outlet by Times Food Guide in the region
  21. 21. AWARDS & ACCOLADES
  22. 22. AWARDS & ACCOLADES
  23. 23. Advantages of proposed acquisition of Western region dominant ice cream player • Direct access to major and growth market of western India comprising of Goa, Northern and Coastal Karnataka, Central and Western Maharashtra • Adding around 8 crs to the top line of the company and can subsequently be scale upto 20 Crs in two years down the line. • Launch pad for Exclusia in premium market of western region. • Net work of more than 1500 dealers • State of art of machinery, logistic and distribution infrastructure • The proposed acquisition will help in reducing the operating cost by shifting the manufacturing process to Hyderabad and enhancing the capacity to 2500 Liters per hour from the current 1500 Liters per hour.
  24. 24. Expansion of market and distribution network • Penetrating into newer territories of Andhra Pradesh, Tamil Nadu and Southern Karnataka. • Increasing dealer network to 4000 from existing 1000 dealers / freezers. • Launch of Exclusia premium ice- cream across Pan India. • Targeting the burgeoning retail segment and hospitality sector. • Increase in parlor outlet in premium segment from 2 to 50. • Increase in mobile vending operation from 120 to 400.
  25. 25. Dairy Ice Creams & Frozen Foods (P) Ltd - Confidential Strengths Weaknesses • Quality & Consistency. • State of Art production facilities among the top 3 in the country . • Product Innovation. • Good dealer relationship; very low attrition. • Virtual monopoly among high end hospitality groups. • Retail width is not at a desired level consequently the impulse sale has been less then desired. Slow to take off in the parlor segment • Public perception that Diffys is a premium brand whereas it is targeted for the mass segment. Threats Opportunities • A very fragmented industry Very large number of players . • High food prices • Increase in quality awareness levels in the consuming class leading to creation of brand loyalty towards quality brands Consolidation of the retail industry. • Success of Exotica can be replicated across the country
  26. 26. THE ROAD MAP •Focus on complete regional coverage for brand Diffys by rapid retail expansion that is currently on and proposed acquisition. •Pan India spread of Exotica Product Segmentation by sub-branding “HALKA”. Ex.: Low Fat, Diabetic friendly and Probiotic, etc. •Launch of “Just Chill” ice cream parlors. •Expansion of mobile vending operations.
  27. 27. EBITDA OF THE PROJECT Rs in Lakhs61.41 124.58 176.3 217.98 415.01 543.26 673.15 722.66 746.21 0 100 200 300 400 500 600 700 800 EDIDTA
  28. 28. PAT OF THE PROJECT Rs in lakhs 14.31 22.46 12.18 18.98 167.59 288.06 455.23 541.92 592.73 0 100 200 300 400 500 600 700 201020112012201320142015201620172018 PAT
  29. 29. Value of Operating Equity Present value of unlevered firm Rs. 4173.50 Lakhs Present value of tax shield Nil Present value of market value of debt Rs. 1277.83 Lakhs Value of firm Rs. 4173.50Lakhs Value of Operating Equity = 4173.50 – 1277.83 = Rs. 2895.68 Lakhs No. of Equity Shares = 67.11 Lakhs shares Value of Each Equity share = Value of Operating Equity/ No of Equity Shares = 2895.68 / 67.11 = Rs. 43.15 SHARE VALUATION
  30. 30. INVESTMENT MODE : Compulsory Convertible Debentures A debenture is an instrument of debt executed by the company acknowledging its obligation to repay the sum at a specified rate and also carrying an interest. It is one of the methods of raising the loan capital of the company. The instruments will convert into Equity Shares in the Company at an agreed Price, which shall not be less than DCF. Security : 100% backed by the Value of the Amount Taken, till the Date of Conversion to Equity shares Interest : Till the instrument is converted 12% p.a., Tenure : 3-5 years as Debentures, there of converted to Equity. EXIT OPTIONS : Taking the Shares to the Recognized Stock Exchanges through the IPO Mode Third Party Coming into the into the Shoe of Investor, by taking the Shares of the Investor Promoter Group Coming into the into the Shoe of Investor, by taking the Shares of the Investor Complete take over by the Investor, by giving an exit option to the current promoters.
  31. 31. THANK YOU
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