6

P 1
L 0
2
A
N

Processed Fruits –DMC Presentation

13th January 2016
 Presentation Scheme

Foc
Seg us
me
ne ss nts
i s &
Bus nsion Ma
rgin
i m e ities s
D rior
ity &P
n
rt u i ng
ppo een
O Scr

10
Y2 rs
0c
Sn 15
Sh ap
20

ot
 2015 Plan Vs Actual : A Snap shot

2
6
Certified Products

Delays in “Shipment schedule” in export markets

Price advantage in key fruits to FBD ~173
1125 MT vs 2100

Crop damage, Higher prices, Poor quality

GCBI Rs. 490 L & RONA 40%

46% < than
70% < than
MT
Crop Damage
Higher Prices

Plan
Plan
Margin Retention

Conventional
Margins @ 20%

Products

As per the Plan

1925 MT vs 1500
MT
Efforts to offset

53
5
impact in certified
lacs

segment

Good Crop from Mexico, Egypt , Colombia in Jun’15-Aug’15

Certified Projects –Crop Damage & Reduced Scope
T 33%
M Alphonso Rs.41 vs 29 LY (41%)

85
8 00

0M
1
T

T
5M

21
75 i

0M
r
Totapuri : Rs.16 VS 12 LY ( 30%)
u

Al
p

T
ta mt

ph

Kesar : 31 VS 21 LY ( 48%)
To 67

on
o t
94
5

s
m
32% 30%
6150

d e
ra t ar
t
ir 5 m es t
a
F 0 K 2m
16 11 26 T
M 50 0 M
T 42 T
22

M
0
50

Fairtrade : Rs. 13 vs 10.5 LY ( 23%) 24% 75

M
T
 B Natural Activities in 2015 – Key Highlight
1635 MT Key Highlights
Jamun, Litchi, Kinnow  Price advantage in Key fruits
Samasthipur , Aligarh  Cost Savings in Supply Chain 173 L
 Excess stock Sales in market

 Multi Geography sourcing of Jamun

 Entire Value chain intervention
 Rs.95/kg vs 106 LY
Plantation
 New Vendor management
Development
Jamun, Pink Guava
2189 MT
Mango, White Guava,
Pink Guava & Fruit Variants 7
Pomegranate
Cold Storage 3
1500 MT Krishnagiri
JIT deliveries ABC, AFPL, Newgen, 6
Processing Units
Devraja
Sourcing Geographies 9
5 Years Business Plan
 Business Dynamics

ME, EU, USA -50% & Domestic 50%

ce
M

rs
an
ul

Ag
se
tip

ur
dU

en
le

Supplier Preference
As
qu

ts
En
ot

ly
Partnerships

pp
es

Su
Crop to Crop

s
Im

d
s
po

ee
on
Qu
r

tn
ali te

luti
ty r

en
As

So
su

gm
ng
ran

id i
c

Se
e

ov
Pr
Changeover really a difficult task
 Major fruits & vegetables- India
Vegetable Basket
Fruit Basket 19%
29%
Others Potato
1
39%
1 Banana Mango 20% 11%
3%
Peas Tomato
1
2% Grape Citrus 10%
9 10%
4% Production
Production Okra Onion
163 Mln MT
81 Mln MT
2
1
Papaya 6%
2% Pin’le
Cauliflo
4 Brinjal
wer
5% 8%

Guava Apple Cabbag

4% 4% 5 e
Tapioca
1 6%
6%
 Indian Processed Fruits & Vegetable – Brief Review
225000 MT 500000 MT
Green Peas, Sweetcorn Mango, Guava, Papaya,
Carrot, Beans, Ethnic 5% Tomato
10%
Vegetables
Frozen Aseptic
Vegetables Pulps
North Based

South Based
5000 MT
>50% >10%
Herbs, Mushroom,
Vegetables, Freeze Frozen Fruit 25000 MT
Any Product Dried Pulps Mango,
Pomegranate,
Litchi, Jamun
5% ->10% >10%
Dehydrate
d IQF Fruit
75000 MT
Onion, Garlic 8000 MT
Vegetables, Herbs, Mango, Papaya,
Powders
Right Product & Right Quality
 Opportunity Screening & Analysis – F&V Segment

(16%)
2770 ???

(46%)
2540 ???

13%

Domestic
841 1100
Export

13%
Fresh Fruits
2570 750

8%
847
250

9568 Cr 2100 Cr

Source : APEDA exports Source : Business estimates

 Demand Direction…
Onion, Mushroom, Garlic -90%
• Germany (17%)
Mango-10%
UAE 71% Dehydrated
ME 12% • UK (10%), USA (10%)
Nepal 2% Vegetables • Russia (6%)
Fresh fruits 847 Cr
2770 Cr Jams & Squash -36%
Grapes- 40%

Netherlands 33%
Frozen F&V – 17%
UK 15%
Russia 11%
UAE 15% • USA (13%, SA (11%)
Processed F&V • UK(11%),NL (10%)
• UAE (7%
UAE 35% 2570 Cr
Other Fruits

Bangladesh 15% 9568 Crs

Nepal 10%
Saudi (12%
Fresh
Vegetables
Onion -90% Others 2540 Cr Mango -95%
Pakistan 30%
Bangladesh 34%
Malaysia 18%
Nepal 16% Aseptic Pulps • Middle East 51%
UAE (13%) •
Sri lanka 11%
UK (8%) 841 Cr EU -25%
UAE 11%
Saudi (5%)
 Specific markets

Organic Products* Dried & Preserved Vegetables*

Global Market : $ 60 Billion Global Exports : $ 2725 Mn

India’s Export : USD 400 Million India’s Share : 4.2% ( $ 114 Mn)
Export Growth in last 2 yrs : 4% & 8% India’s Rank : 4th

* Soybean, Basmati Rice, Cane sugar, * Dried Onions, Garlic Powder, Flakes,
Sesame Seed, Processed fruits Mushroom,
Fruit Pulps ( 5 Lac
M MT)* Other Processed fruits & Vegetables*
E;
Do 1.
m 5 Global Exports : $ 57570 Mn
es
tic India’s Share : 0.78% ( $ 454 Mn)
;
2. EU
;
India’s Rank : 24th
5
0.
5
*Mango Pulp (95%), Guava, Tomato * Jams, Jelly, Peas, Potato, Juices, Squash,
Source APEDA -Hyderabad
 Processed Fruits - Competitiveness in Global Markets

●
Mango
●
Pineapple
●
Litchi
●
Papaya ●
Citrus
●
Tamarind ●
Pomegranate

Competitive Technology

Quality
Price
Standards

●
Apple ●
Banana
●
Grape ●
Guava
 Seasonal Calendar –Best period to Process
Dec Jan
Processing - Fruits

Nov Feb
Green Peas
Mango Sweet corn
Litchi

Processing -
Carrot &Beans

Vegetables
Pomegranate
Guava
Tomato Oct Mar

Sep Apr
Emerging Products

Banana
Tamarind
Pineapple
Strawberry
Mosambi
Jamun Aug May
Amla

Jul Jun
 Business
Multiple
Fruits
Dimensions going forward…

Full value chain Intervention

B Natural

Value Creation focus

Exports
Certified
Products

Processing
Technology

• Multiple fruits dynamics • Processing Sensitivities • Standards & Regulations

Quality Standards & FSMS - Processed fruits

Codex
Alimentariu
s
FSSAI
AIJN code
of Practice

USFDA
EC
Regulation
 Business Strategy

Custome
Regain r Specific
IQF Products
Segment

Expand
Certified
Segment

New Markets & Customers

(Value Delivery)
 4 Priorities & 8 Action Plans

• Engage in “long term

Expanded • Operating efficiencies
Partnerships” Value Creation
Certified Projects • Best Sensory profile
• Future Products expansion processes
& Markets @ no extra costs

Get & Retain

Profitable
• Product Consistency Deliver promised
• Substitute Options Customer Value Segments, • Customer needs
Markets and • Point of Difference
Partners
 8 most reliable eco -labels in the Market

Ecological Aspects

Environmental Aspects
Non GMO Marine

Transparent Standard
Organic
Demeter Project Stewardship
3rd party Certified

development
Verified Council

Certified
Humane
RFA Veriflora
Fairtrade Raised and
Handled

Publicly available standards

Ethical Aspects
 Certified Products Markets & Brands

US $ 31 Billion ( 43%) Our Target Markets

Tropical : Mango , Banana, Avocados, Orange
Global Market $ 72 Billion

Short Supply: Pineapple, Papaya, Guava

Temperate Fruits : Apple, Apricots

EU $ 29 Billion (40%)
Organic Demeter

Fairtrade RFA

Under Supply : Red fruits, Passion fruit

White wave USA Top 3
Haincelestial
General Mills
food company
 Certified Projects & Expansion Plans

2771 F -1955 ha -5550 MT 2772 F -2045 ha -6550 MT

EU, USA
• Mango

2017
Chitt
• Banana
FLO • Pineapple Partnerships

oo
Germany, USA

EU -2
• Banana

2017
• Mango Co-Create

7
• Papaya Projects

2
Standards • Litchi

2016
0
• Tamarind Validate

0
• Pineapple

A c r
• Alphonso

2016
s
• Kesar Engage with
Sw
itze a da • Totapuri
rl , Can
• Rajapuri many
an USA
d
Value Creation Processes – Operational efficiencies @no extra cost

Eye on Market
Pulp & Stone Dynamics
percentage

t
assessment

gh
Ri Operational Behaviour of each fruit for
Efficiencies Physical, Chemical and
(Yield + Sensory)
@ no extra costs Thermal Processes

um
tim
Op
Ethylene Producing Capabilities and
its response to ethylene treatment
 Fulfil Customer needs

IQF

• Cube Dimensions & Higher Brix

• Substitute options to existing

i al
ma es
ter
h p Su nts
ing tut
ug cal ria
ack bsti
hro Lo all va

Business
External
in
Conventional

• Higher Brix & Low Micros

uc du ncy
&

• Substitute options to existing

red l Pro siste
tio cts
nt
Co ion con
• Reg uct
a
d
Pro

st

Certified
•

• Concentrates
•

• Substitute Options to existing

 Our Target Segments & Margin Targets

Certifi
25%
Private Labels

ed
-Hypermarkets
-Regional Players
5,000 MT
42%

Domestic Demand
Product Range Margins
7% 25,000 MT -Frozen
2,35,0000 MT
2% Salads
Regional Players Dairy
Multi fruit Blends
Key Segments & Margins 8,000 MT
1750000 MT
5%

Volume Source : APEDA, Trade Information

 Target Products & Segments
Segment attractiveness

Products High Medium Low

Product attractiveness

IQF Institutional Dairy Industrial

Fruit Pulps End Users Blenders Dairy

Certified Products Blenders End Users Industrial

Domestic Markets End Users Franchisee Dairy

 Domestic fruit Industry consists of….

Major Tier 2 Regional SAFTA

Brands Players Players Consumption

• Pepsi • Priya Gold Bhutan ( 23 Million Liters)

• Parle Franchisees • Galla Foods • Bhutan Agro Industries
• Coca-Cola •
• • MAA Foods Bhutan Milk & Agro Pvt Ltd
• Parle Manpasand • Zimdra Foods Pvt Ltd
• SM Consumers
• Dabur • Paperboat • Bhutan Fruit Factory
• Patangali Nepal (140000 MT)
• ITC Ltd • NDD • Dabur Nepal Pvt Ltd
• Dugar Foods &Beverages
• Gold Beverages (Nepal) Pvt Ltd
• Sunrise Nepal Foods & Bvg Pvt Ltd
• Rijil Tahi Industries Pvt Ltd
• J.Bs Industries
• Himalaya Food & Beverage Pvt Ltd
• Shiva Baba Achar Juice Industry
• Kabita fruit Processing Industry
 Sum –Up Action Plans

• Engage in “long term

Expanded • Operating efficiencies
Partnerships” Value Creation
Certified Projects • Best Sensory profile
• Future Products expansion processes
& Markets @ no extra costs

Get & Retain

Profitable
• Product Consistency Deliver promised
• Substitute Options Customer Value Segments, • Customer needs
Markets and • Point of Difference
Partners
 B Natural Strategy

Substitution of Imported Pulp Regionalisation

with
Domestic Pulp

Customised and Differentiated supply chain

Differentiation that provides competitive advantage

Developing fruit sourcing clusters

Indigenisation
around processing plants
 Volume Projections – B Natural 2016
900
Quantity in MT
800 788
4280 MT
700
717 28 Crs
600
525 536
510
500
419
400
390

300
249
200

106
100
40
0
Alphonso Totapuri Pulp Totapuri Pink Guava White Guava Pomegranate Litchi Pulp Jamun Kinnow Others
Concentrate
Cluster Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar
South Mango Pink Guava White Guava & Pomegranate
North Litchi & Jamun Crop Development Kinnow
 Operations Summary: 2016

Aligarh, Samasthipur
( MD Fresh)
Litchi Pulp
Jamun Pulp, Kinnow

Bijapur,
Karnataka

IQF Fruits Krishnagiri

(ABC, AFPL, Newgen) Fruit Variants 8
White Guava
Pink Guava Clusters 2
Mango Pulp
Schedulers – B’lore Cold Storage 3
Mango Concentrate
Cold storage
Processing 6
Units
Sourcing 9
Geographies
Thank You
 Yr I - Plan Financials
2016-17 Details Segment Plan
LY Plan 2016-17
4139 Exports 5000
Quantity
11245 MT B Natural 4280
15384 Total 9280
3001 External 3300
Sales
9236 Crs B Natural 2750
12641 Total 6050
643 External 571
GCBI
Crs
- B Natural 84
643 Total 655
316 FE 320
1130 CE 750
29% RONA 45%
 Biodynamic Agriculture ( Demeter)

Biodynamic
Biodynamic
Farms Biodynamic
farmer
Responsible forFarming
farm in tune with
maintaining their One of the
the rhythms of
own life and
highest forms of
nature, while
vitality without
sustainable,
treating their
pulling inputs ecological
whole farm as a
from outside thefarming
living organism
farm

DMC approval requested for sanction of Rs. 12 Lacs ( 3 years period) to make Biodynamic model farm
 Focus Products during Plan Period

tes
ntra i nd aya nana a
p
nce ple mar an s , Pa o, Ba anan
- Co neap , Ta way Be l e ngo ang d, B
c ts , Pi ana c, 3 ot & app – Ma in M arin
d u ya an ni
arr go ate Pine eter ips Tam
Pro apa : B Eth – C an gran na, e m ersh chi,
s
d - P c t s – es – M e n a D tn L it
e m a  r
rtifi uits rodu able tabl R FA - Po – B Pa anic
 Org
Ce F Fr c P get ege  IQF rade
 IQ pti Ve d V  Fairt 
 A ze at
s e n e 
 Fro hydr
 De

2016

2017

2018