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The Heritage Group, founded in the year 1992 by Mr. Nara Chandrababu Naidu, is one of the
fastest growing Public Listed Companies in India, with six-business divisions-Dairy, Retail,
Agri, Bakery, Renewable Energy and VetCa under its flagship Company Heritage Foods Limited
(Formerly known as Heritage Foods (India) Limited).
The annual turnover of Heritage Foods crossed Rs.2380.58 crores in financial year 2015-16.
Currently Heritage's milk and milk products have a market presence in Andhra Pradesh,
Telangana, Karnataka, Kerala, Tamil Nadu, Maharastra, Odisha, NCR Delhi,Haryana, Rajasthan,
Madhya Pradesh, Punjab, Uttar Pradesh, Gujarat and Uttarakhand. and its retail stores across
Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak
Districts and these are the backbone to retail operations and the state of art Bakery plant at
Uppal, Hyderabad, Telangana.
In the year 1994, HFIL went Public and was oversubscribed 54 times. HFIL shares are listed on
BSE (Stock Code: 519552) and NSE (Stock Code: HERITGFOOD).
The Founder
Delighting every home with Fresh & Healthy products and empowering the Farmer
Mission
To be a nationally recognized brand for Healthy and Fresh products with a revenue of
INR 6000 Crore.(USD 1 Billion) by 2022
We anticipate, understand and respond to our Customers' needs by creating high quality
products and making them available through innovative and convenient channels
We embrace the right technology to delight our Customers
We are a strong supporter of balancing Economic, Social and Environmental aspects to
create a better tomorrow
We are devoted to empowering the Farmer community through our unique 'Relationship
Farming' Model
We aim to be the Employer of Choice by nurturing Entrepreneurship and Promoting
Empowerment, alongside transparency
Board of Directors
Mr. Seetharamaiah Devineni Chairperson,
Commerce graduate from Andhra University and a fellow member of the Institute of Chartered
Accountants of India. Senior partner of Brahmayya & Co., a leading Chartered Accountancy firm
and has been practicing for the last five decades. Has held various coveted posts, which include
Membership of the Southern Regional Board of Reserve Bank of India, and Federation of
Andhra Pradesh Chamber of Commerce and Industry, Chairpersonship of the Tirumala Tirupati
Devasthanams Trust Board and Trusteeship of the NTR Memorial Trust. Is also on the Board of
several other companies.
Board Committees
Audit Committee
Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
Rajesh Thakur Ahuja Member
V Nagaraja Naidu Member
N Bhuvaneswari Invitee
N Brahmani Invitee
Lead Internal Auditor Invitee
Statutory Auditor Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Nomination & Remuneration Committee
Name Category
N Sri Vishnu Raju Chairperson
D Seetharamaiah Member
Rajesh Thakur Ahuja Member
Umakanta Barik Secretary
Stakeholders Relationship Committee
Name Category
V Nagaraja Naidu Chairperson
D Seetharamaiah Member
N Sri Vishnu Raju Member
N Bhuvaneswari Member
Umakanta Barik Secretary
CSR Committee
Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Risk Management Committee
Name Category
Rajesh Thakur Ahuja Chairperson
D Seetharamaiah Member
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Management Committee
Name Category
D Seetharamaiah Chairperson
N Sri Vishnu Raju Member
N Bhuvaneswari Member
N Brahmani Invitee
M Sambasiva Rao Invitee
A Prabhakara Naidu Invitee
Umakanta Barik Secretary
Mr. Umakanta Barik Company Secretary, Has Masters in Economics, LLB, FCS, LIII. Is a
Fellow Member of the Institute of Company Secretaries of India, New Delhi and a Licentiate
from Insurance Institute of India, Mumbai. Has over 14 years of experience in the domains of
Secretarial, Legal, Insurance & Intellectual Property Rights.
Our Commitments
Milk Producers
Enhancing the Technical and Managerial skills of employees through continuous training
and development
Best appraisal systems to motivate employees
Incentive, bonus and reward systems to encourage employees
Heritage forges ahead with the motto "add value to everything you do"
Shareholders
Returns
Highest importance to investor service; no notice from any regulatory authority since
2001 in respect of investor service
Very transparent disclosures
Suppliers
Doehlar: technical collaboration for milk drinks, yogurt drinks and fruit flavoured drinks
Alaval: supplier of high-end machinery and technical support focusing on Tetra pack
association for products package
Society
Recognitions
Heritage Foods is proud to have been recognized by some of the most important and
influential publications and organizations around the world.
Heritage Foods Bags "Golden Peacock Award for Excellence in Corporate Governance' for the
year 2016"Heritage Foods Limited has been declared as the Winner of 'Special Commendation'
for 'Golden Peacock Award for Excellence in Corporate Governance'
The above award was received by Smt. N Bhuvaneswari, Vice Chairperson & Managing Director
of the Company from M/s. Baroness Sandip Verma, Global Chairperson, Advisory Council,
Institute Of Directors, India and Chairperson, European External Affairs Committee, at a
specially organized "Golden Peacock Awards Nite" presentation ceremony was held on
Tuesday, 18th October 2016, at Millennium Hotel London Mayfair, 44 Grosvenor Square,
London W1K 2HP, UK, in the presence of (from Left to Right) Vijay Karia, Chairman &
Managing Director, Ravin Group of Companies, India, Stephen Haddrill, Chief Executive,
Financial Reporting Council, UK and Lt. Gen. J. S. Ahluwalia, PVSM (Retd.), President,
Institute Of Directors, India, along with distinguished business leaders from INDIA & UK,
during IOD India's "16th London Global Convention on Corporate Governance & Sustainability"
and Global Business Meet.
100 Most Influential CFO's of India Mr. A. Prabhakara Naidu,Chief Financial Officer of the
Company is among those conferred with the "100 Most Influential CFO's (Chief Financial
Officers) of India" title by the London-based Chartered Institute of Management
Accountants(CIMA).
Mr. A. Prabhakara Naidu, finds a place on the elite list of CIMA, which is the largest
management accounting body in the world, with more than 2,03,000 members in 179
countries. The CIMA award, which was conferred at the 2016 CIMA Annual Awards
Ceremony held in Mumbai on June 23, 2016, is in recognition of the CFO of the
Company "commitment and exceptional performance done by him in the field of
Finance."
The award has been instituted by the CIMA to acknowledge CFOs with a proven track
record of performance, achievements and contribution to the business.
Heritage has won 4 awards in "The Great Indian Icecream Contest", New Delhi It was indeed a
great pleasure that Heritage has won 4 awards in different categories in "The Great Indian
Icecream Contest" 5 th Edition held on 11 th Feb 2016 conducted by Indian Dairy Association
and DUPONT at New Delhi.
The Silver Award for VANILLA i.e 2 nd prize on All India wide
The Silver Award for CHOCOLATE i.e 2 nd prize on All India wide
The GOLD AWARD in Kool Kids i.e 1 st prize on All India wide
The BEST IN CLASS in Kool Kids i.e Award for Excellent product
In recognition of our efforts the Ministry of Energy, Government of India, has awarded Heritage
the First Prize for 'Conservation of Energy in Dairy Sector' several times - the years 2016,2015,
2014, 2012, 2010 and 2008.
1st Prize in National Energy Conservation Awards-2016
Bagged the "Coca Cola Golden Spoon Award" 2015 & 2016 for its retail business division. The
annual 'COCA COLA Golden spoon awards' are well-established and highly regarded within the
industry as a mark of exceptional performance.
Listed among India's prestigious Top-500 companies list for the year 2013 & 2014, compiled by
The Economic Times, on the basis of industry respect and key financial parameters.
Images Most Admired Retailer of the Year - 2014 (Category Food & Grocery)
Awarded the "Most Admired Retailer of the year - 2014" (Food & Grocery) at India Retail
Forum.
BRAND RECOGNITION
Brand Recognition is the extent to which a brand is recognized for stated brand attributes or
communications. In some cases brand recognition is defined as aided recall - and as a subset of
brand recall. In the case, brand recognition is the extent to which a brand name is recognized
when prompted with the actual name.
A broader view of brand recognition is the extent to which a brand is recognized within a product
class for certain attributes. Logo and tagline testing can be seen as a form of brand recognition
testing. For example, if a product name can be associated with a certain tagline, logo or attribute
(safety and Volvo; "Just do it" - Nike) a certain level of brand recognition is present.
SWOT Analysis
FINANCIAL ANALYSIS
Human resources management is primarily concern with the people management. It Is a crucial
subsystem in the process of management. The success or of the organization not only depends on
the material, machines and equipment but also on the personnel who put in their best efforts for
efficient performance of the job.
DEFINITION:
Human resources can be thought of as the total knowledge, talents aptitudes, creative abilities of
an organization work force as well as the value, attitude and beliefs of the individuals involve.
-LEONC.MEGGINSON.
Personnel management effectively describes the process of planning and directing the application
development and utilization of human resources in employment.
-DALE YODER
Personnel management is the process of attracting, holding, motivating, and people involving all
managers, line and staff
TRAINING OBJECTIVES OF HERITAGE FOODS (INDIA) LIMITED (HFIL)
Objectives crystallize the fundamental principles enunciated in the mission and policy
statement. To operational the policy mission and statement, the following are the objectives of
HERITAGE FOODS (INDIA) LIMITED (HFIL) of different training programmes.
1. To ensure that adequate time and efforts are invested at all levels of management towards
people management.
2. To instill in all employees a feeling of pride and belong with an intention to increase
organizational loyalty.
3. To design specific programmes with special focus on equipping the employees to meet
the emerging challenges and opportunities.
4. To help employees improve their core competency that has direct impact on their
performance and productivity.
5. To inculcate in the employee, the need for observing sound organization principles in
order to ensure healthy organization practices.
The duration of a training varies with skill to be acquired, the complexity of the subject, a
trainee’s aptitude and ability to understand, and the training media used.
Generally, a training period should not be unduly long: if it is, trainees may feel bore
uninterested. The ideal session should not go beyond 2 to 3 hours at stretch, with a break in
between 2 sessions. It convenient employees may be trained for a week or a fortnight for an
hour or two, every day after work hours.
The training period may extend from 3 weeks to 5 months even more, depending upon
job requirements.
The physical locations of the programmes should be in pleasant surrounding away from
the noise and tension of the work place.
3.4.2 IMPLEMENTATION OF TRAINING
Evaluation specialist must be clear about the goals and purposes of evaluation.
Evaluation must be continuous.
Evaluation must be specific.
Evaluation must be provide the means and focus for trainers to be able to appraise
themselves, their practices, and their products.
It is mainly based on objective methods.
TRAINING EFFECTIVENESS
Training effectiveness is the degree to which trainees are able to learn and apply the
knowledge and skills acquired in the training programme. It depends to the attitudes, interests,
values, and expectations of the trainees and the training environment. A training programmer is
likely to be more effective when the trainees want to learn, are involved in their jobs, have career
strategies. Contents of a training programme, and the ability and motivation of trainers also
determine training effectiveness.
Several methods can be employed to collect data on the outcomes of training. Some of these are:
4. Giving oral and written tests to trainees to ascertain how far they have learnt,
9. Trainees comments and reactions during the training period, and Cost benefit analysis of
training programme.
3.6 FEEDBACK
After the evaluation, the situation should be analysed to identify the possible causes for
difference between the expected outcomes and the actual outcomes. The precautions should be
taken in designing and implementing future training programme so as to avoid these causes. The
outcomes of training programme should justify the time, money, and efforts invested by the
organization in training. Information collected during evaluation should be provided to the
trainees and the trainers as well as to others concerned with the designing and implementation of
training programmes. Follow-up action is required to ensure implementation of evaluation
report at every stage.
Change in organizations is a social process, and not merely an analytical one. The field of
Organisation Development (OD) has evolved a number of approaches to create organic
conditions that lead to employee participation in decisions and freedom to initiate ideas to
improve organizational processes. Thus OD is a systematic process to planned change. It
involves following four stages:
Freezing : Making sure that change sustains for a long period of time.
A variety of OD methods have been developed for facilitating change through using these
stages in India (Ramnarayan et al, 1998).
1. Action Research: Action Research involves systematically collecting data on relevant
problems, analyzing and feeding the data back to the organization, and helping the
organization to take action to address the problems. It attempts to tap the capabilities of the
employees with the dual purpose of contributing to successful change efforts as well as fulfil
employee needs for greater involvement. The approach seeks to empower the concerned
organizational members so that they may become self-reflective practitioners rather than
mere spectators in the process of organizational change. When people become self-reflective
practitioners, not only would meaningful solutions emerge, but more important, they will
develop the abilities to diagnose and solve future problems.
(a) Agenda-setting interventions are aimed at making the group aware of the internal
processes by which it makes decisions and solves problems.
(b) Date feedback interventions diagnose the interpersonal processes in a group, and give
feedback to enable group members to improve processes.
(c) Counseling is required during or after a feedback session to ensure that behaviours
are suitably modified.
(d) Structural interventions involve suggestions on how work should be allocated,
committees organized, or group norms enforced.
3. Training workshops and conferences: Training has become an important OD tool in the
change process. Training programs are used not only to generate ideas, develop
collaboration among employees, enhance skill, but also for the development of new roles,
systems, procedures, and work methods. Top management’s involvement in training
programmes provides the context for defining a clear framework of the company strategy.
Training workshops and conferences represent an important first step in the organizational
change process as they have the potential to achieve the following objectives:
(a) Raise the consciousness of participants.
(b) Bring awareness of the gaps between reality and ideals.
(c) Provide a common platform to articulate shared and difficulties.
(d) Generate ideas for change.
(e) Create greater awareness of change.
Training must be followed up with appropriate management actions and initiatives to
make the desired change in reality.
All training activities must be related to the specific needs of the organization the needs
and the individual employees. A training programme should be launched only after the training
needs are assessed clearly and specifically. The effectiveness of a training programme can be
judged only with the help of training needs the gap between the existing and required levels of
knowledge, skills, and performance and should be specified. The problem areas that can be
resolved through training should also be identified.
Organizational Analysis
It involves a study of the entire organization. In terms of its objectives, it is resources,
resource allocation and utilization, growth potential and its environment. Its purpose it to
determine where training emphasis should be placed within the organization. Organizational
analysis consists of the following elements:
Analysis of objectives
Resource Utilization Analysis
Organization analysis
Environmental Scanning
It is a systematic and detailed analyses of jobs to identify job contents, the knowledge,
skills, and aptitudes required and work behavior.
Manpower Analysis
In the analysis the persons to be trained and the changes required in the knowledge, skills
and aptitudes of an employee are determined. Training can be relevant and viable if the three
types of analysis given above are carried on continuously more over this analysis should be
integrated in a carefully designed and executed programme.
Training Objectives:
Generally line manager ask the personnel manager to formulate the training policies. The
personnel Manager formulate the following training objectives in keeping with company’s goals
and objective:
a. To prepare the employee both new and old to meet their present as well as the changing
requirements of the job and the organization.
b. To prevent obsolescence.
c. To prepare employees for higher-level tasks.
e. To built up a second line of competent officers and prepare them to occupy more
responsible positions.
c. To identify the critical areas where training is to be given on a priority basis; and
On-the-job Training
In this method, the trainee is placed on a regular job and taught the skills necessary to
perform it. The trainee learns under the guidance and supervision of the superior or an instructor.
The trainee learns by observing and handling the job. Therefore, it is called learning by doing.
Several methods are used to provide on the job training e.g., coaching job rotation,
committee assignments, etc. A popular form of the job training is Job Instruction Training (JIT)
or step-by-step learning. It is widely used in the United States to prepare IInd class employees. It
is appropriate for acquisition or improvement of motor skills and routine and repetitive
operations. The JIT involves the following steps:
Preparing the trainee for instruction. This involves putting the trainee at ease, securing
his interest and attention, stressing the importance of the job, etc.
Presenting the job operations or instructions in terms of what the trainee is required to do.
The trainee is put at work site and each step of the job is explained to him clearly.
Applying and trying out the instructions to judge how far the trainee has understood the
instructions.
Following up the training to identify and correct the deficiencies, if any.
JIT method provides immediate feedback, permits quick correction of errors and provides
extra practice when required. But it needs skilled trainers and preparation in advance.
Vestibule Training
In this method, a training center called vestibule is set up and actual job conditions are
duplicated or simulated in it. Expert trainers are employed to provide training with the help of
equipment and machines, which are identical with those in used at the workplace.
Apprenticeship Training
In this method, theoretical instruction and practical learning are provided to trainees in
training institutes. In India, the government has established Industrial Training Institutions (ITI)
for the purpose. Under the Apprenticeship Act 1962 employers in specified industries are
required to train the prescribed number of persons in ‘designated trade’. The aim is to develop
all-round craftsmen. Generally, a stipend is paid during the training period. Thus, it is an “earn
when you learn” scheme.
------------------- in Rs. Cr. -------------------
Balance Sheet of Heritage Foods
Mar
Mar '15 Mar '14 Mar '13 Mar '12
'16
12
12 mths 12 mths 12 mths 12 mths
mths
Sources Of Funds
Total Share Capital 23.20 23.20 23.20 11.60 11.53
Equity Share Capital 23.20 23.20 23.20 11.60 11.53
Reserves 216.79 169.81 155.79 130.29 81.60
Networth 239.99 193.01 178.99 141.89 93.13
Secured Loans 103.95 142.48 127.42 98.18 129.37
Unsecured Loans 1.15 0.00 0.00 0.00 11.00
Total Debt 105.10 142.48 127.42 98.18 140.37
Total Liabilities 345.09 335.49 306.41 240.07 233.50
Mar
Mar '15 Mar '14 Mar '13 Mar '12
'16
12
12 mths 12 mths 12 mths 12 mths
mths
Application Of Funds
Gross Block 504.99 449.92 408.41 353.48 337.29
Less: Accum. Depreciation 192.96 169.27 136.93 116.69 107.03
Net Block 312.03 280.65 271.48 236.79 230.26
Capital Work in Progress 9.59 9.00 11.12 8.27 8.92
Investments 0.98 0.98 0.99 1.12 1.12
Inventories 144.91 139.37 108.55 82.09 93.45
Sundry Debtors 28.79 24.24 16.61 15.07 11.20
Cash and Bank Balance 45.23 40.68 44.42 32.95 29.99
Total Current Assets 218.93 204.29 169.58 130.11 134.64
Loans and Advances 33.41 30.91 38.88 34.49 34.13
Total CA, Loans & Advances 252.34 235.20 208.46 164.60 168.77
Current Liabilities 208.50 174.10 171.82 161.54 165.56
Provisions 21.34 16.23 13.81 9.19 10.03
Total CL & Provisions 229.84 190.33 185.63 170.73 175.59
Net Current Assets 22.50 44.87 22.83 -6.13 -6.82
Total Assets 345.10 335.50 306.42 240.05 233.48
INCOME
Revenue From Operations
2,329.99 2,034.54 1,695.94 1,581.08 1,377.23
[Gross]
Less: Excise/Sevice Tax/Other
1.04 1.06 0.88 0.78 0.38
Levies
Revenue From Operations [Net] 2,328.95 2,033.48 1,695.06 1,580.30 1,376.85
Other Operating Revenues 51.63 39.49 26.98 21.51 16.55
Total Operating Revenues 2,380.58 2,072.97 1,722.04 1,601.81 1,393.41
Other Income 6.55 7.03 4.95 4.20 3.21
Total Revenue 2,387.13 2,079.99 1,726.99 1,606.01 1,396.61
EXPENSES
Cost Of Materials Consumed 1,443.22 1,341.60 1,060.44 976.14 968.23
Purchase Of Stock-In Trade 492.97 421.84 322.11 262.75 229.31
Changes In Inventories Of
-28.08 -50.79 -8.88 34.42 -47.62
FG,WIP And Stock-In Trade
Employee Benefit Expenses 139.99 110.72 100.09 87.18 69.16
Finance Costs 15.46 15.93 13.22 16.70 19.71
Depreciation And Amortisation
34.51 33.99 25.00 22.02 21.19
Expenses
Other Expenses 201.72 167.56 153.30 140.24 123.06
Total Expenses 2,299.78 2,040.85 1,665.28 1,539.45 1,383.04
Mar 16 Mar 15 Mar 14 Mar 13 Mar 12