#1Tasty Dairy SPECIALITIES LTD. Tasty Dairy Specialities Limited Investor Presentation September 2020#2Tasty Dairy Specialities Limited BSE CIN 540955 L15202UP1992PLC014593 Company Secretary and Compliance Officer CS Nishi Sheikh 117/H-1/365, Pandu Nagar, Kanpur Uttar Pradesh -208005 +91 0512 400 3999 [email protected] www.tastydairy.com Registrar and Share Transfer Agents (RTA) Bigshare Services Pvt. Ltd. 1st Floor, Bharat Tin Works Makwana Road, Marol, Andheri East, Mumbai - 400059 Tel: 022-62638200; Fax 022-62638299 E-mail: [email protected] Website: www.bigshareonline.com Disclaimer This presentation is prepared by Tasty Dairy Specialities Ltd. (the "Company") solely for information purposes and does not constitute any offer, recommendation or invitation to purchase or subscribe for any securities, and shall not form the basis of or be relied on in connection with any contract or binding commitment whatsoever. The Presentation is not intended to form the basis of any investment decision by a prospective investor. No offering of securities of the Company will be made except by means of a statutory offering document containing detailed information about the Company. This presentation may contain statements which reflect Management's current views and estimates and could be construed as forward looking statements. This future involves risks and uncertainties that could cause actual results to differ materially from the current views being expressed. Potential risks and uncertainties include factors such as economic conditions, commodities and currency fluctuations, competitive product and pricing pressures, industrial relations and regulatory developments. No responsibility or liability is accepted for any loss or damage howsoever arising that you may suffer as a result of this Presentation and any and all responsibility and liability is expressly disclaimed by the Management, the Shareholders and the Company or any of them or any of their respective directors, officers, affiliates, employees, advisers or agents.#3Business Overview <= J Tasty Dairy SPECIALITIES LTD.#4Business Overview Listed at BSE since February 2018 $ With INR 403 crore turnover in FY 2020, one of the key dairy players in north India 3.25 lakh litres of milk handling capacity per day situated in Jainpur (Kanpur District, UP) PARLE NOVA DAIRY PRODUCTS BRITANNIA Dukes MOTHER DAIRY PERFETTI Milk procurement through direct farmers and bulk milk vendors A Long ties with reputed institutional clients Kwality Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 T Tasty Dairy SPECIALITIES LTD. Engaged in both B2B and B2C sales, offers mix basket of basic & value added dairy products Started in 1992, has legacy of 28 years of operations Provides employment to 175 employees directly and indirectly MILK#5Current offerings include basic dairy products Product Basket Verifiresb وريتريس SKINNED MILK POWDER Annual Capacity TASTY DAIRY Verifresh Cashurised White B Butter Milk Powder * Bulk Milk Butter 0 UjjWAL DESI GHEE CIMA GULAB JAMUN MIX Ghee सीमा स Gulab Jamun Mix 48,00,000 kg Not Applicable 31,50,000 kg 39,00,000 kg 9,00,000 kg Production (FY 2020) 43,03,591 kg 6,05,19,597 kg 7,86,900 kg 12,89,669 kg 5,77,284 kg Packaging Sizes 1.0 kg Pouch 25.0 kg Bag Bulk in insulated Tankers 10.0 kg 20.0 kg CEKA Pack, Jar, Pouch 15.0 kg Tin bulk pack 400g/500g/1.0 kg Pouches Direct Sales/Job Work Direct Sales and Job Work Direct Sales Direct Sales and Job Work Direct Sales and Job Work Direct Sales Note: * Includes Skimmed Milk Powder (SMP), Whole Milk Powder (WMP) and Roller Dried Powder Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 5#6Long ties with institutional clients Certifications ISO 22000:2005 fssaí Partery INSPECTION COU Parafer भारत परकार • NT OF IN GOVERNMENT GOVT INDIA OF भारत सरकार Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 HALAL INDIA हलाल इंडिया halal INDIA حلال انڈیا خلال الهند मानक: पथप्रदर्शक: Rajasthan Arabian Sea Serves Clients Across India Haryana Uttarakhand New Delhi Bihar Uttar Pradesh Jharkhand Gujarat Madha Pradesh Tamil Nadu INDIAN Maharashtra Telangana Bay of Bengal OCEAN Andhra Pradesh - International Boundary State Boundary Map not to Scale Copyright ©2014 www.mapsofindia.com (Updated on 2nd June 2014). 6#7Robust milk procurement system 6. Milk Processing After the quality checks are done the milk is taken to the company's fully automated plant to process it into various value added products 5. Quality Assurance (QA) The milk goes through organoleptic test and is tested for the presence of any adulterants at the Raw Milk Reception Dock (RMRD) 1. Milk Collection Milk procurement is done twice daily. The procurement staff of the company extends necessary assistance and guidance to farmers to produce clean milk and enhance the production per animal by supplying proper cattle feed and timely procurement of milk MILK 2. Bulk Milk Cooler/ Chilling Centre Fresh milk is collected from aggregators which are located close to the milk procurement area. To maintain the quality and freshness of the milk, it is stored at 4 degree Celsius 4. Milk Transportation Milk is transported from the BMC/ chilling centre to the plant through third party logistics, however the routes are checked by the field staff to avoid theft. Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 3. Milk Vendors ~70% of the milk requirement is procured from aggregators. The company implements stringent quality checks before engaging external suppliers and undertakes routine inspections thereafter 7#8Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 Strategically located in the largest milk producing state in the country Highlights Uttar Pradesh is one of the largest milk producing states in India with total production of 30,519 thousand tonnes in 2018 - 2019 -The state accounts for ~16.3% of the total milk production in the country The main milk producing areas in Uttar Pradesh are the northern and western regions ~33% of the milk produced in the state is consumed locally in rural areas while the remaining 67% is marketable surplus. - The marketable surplus is either sold as liquid milk in major towns or used for the preparation of a large variety of value added dairy products. Source: National Action Plan for Dairy Development Vision 2022, Ministry of Agriculture & Farmers' Welfare; Broker Research The milk catchment areas of the company are Kanpur Dehat and Kannauj. Though they are not on the highest side of the scale in terms of milk production density, there is more than enough milk available for current and projected processing capacities 2010 20,203 21,031 22,556 23,330 Uttar Pradesh Million Tonnes Rajasthan Madhya Pradesh Andhra Pradesh 30.52 Gujarat 23.67 Major Milk Producing States in India 2018-19 15.91 15.04 14.49 12.6 11.66 10.73 9.82 8.36 Punjab Uttar Pradesh Milk Production ('000 Tonnes) 24,194 2011 2012 2013 2014 2015 2016 2017 2018 2019 8 25,198 26,387 27,770 29,052 Maharashtra 30,519 Haryana Bihar Tamil Nadu#9Tasty Dairy plant is a landmark site in the vicinity. The site is known for high standard of maintenance and cleanliness Design of the plant ensures efficient processing and smooth transiting of material from process to process with uncompromised hygiene standards Minimal human interaction with product and process Packaging and storage is automated with ultra modern techniques Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 9#10Significant land available for expansion Location Highlights The company has 7 acres of land located at Jainpur Industrial Area, which is rated as a 5 star industrial area in the state, The land is taken on a long term lease of 99 years Located on a diversion of 2 km from the national highway which connects state with other major cities in the different states Strategically located in an area with high milk availability which will enable ease of procurement Well connected for convenient road, rail and air transport The existing plant can also be expanded to 6 lakh liters per day capacity from the 3.25 lakh liters per day Mewar Location S Located in an area with good connectivity Karbak Dairy lities Limited National Highway - 19 State Highway - 27 Kanpur Airport Lucknow Airport Kanpur Railway Station Latitude: 26.367286 Longitude: 79.993424 Dharmangadpur Kanpur कानपुर मनेन्द्र विध Distance from owned land 3 Km 200 Mtr 48 Km 114 Km 44 Km Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 10#11Management Profile Tasty Dairy SPECIALITIES LTD.#12Management consist a combination of domain expertise and leadership skills Board of Directors and KMPs Management Team Mr. Atul Mehra Chairman and Whole Time Director Mr. Mahendra Kumar Singh Executive Director Dr. Ashok Kumar Tripathi Additional Independent Director Mr. Neeraj Kanodia Independent Director Mr. Narendra Shankar Sathe Independent Director Mrs. Vimi Sinha Independent Woman Director CS Nishi Company Secretary & Compliance Officer Mr. Rakesh Kumar Yadav Chief Financial Officer Age: 58 Experience: 35 Years Degree: B.Tech (Mech) & Masters Age: 58 Experience: 35 Years Degree: B. Sc. in Agriculture with major Rural Banking & Agriculture economics Age: 62 Experience: 35 Years Degree: BVSC & AH and PGDRDM Age: 60 Experience: 36 Years Degree: B.Com Age: 58 Experience: 28 Years Degree: B.Sc. Age: 53 Experience: 16 Years Degree: B.Com. Age: 27 Experience: 3 Years Degree Company Secretary, B.com, Business Basics Age: 47 Experience: 13 Years Degree: M.Com. Mr. Atul Mehra Chairman and Whole Time Director Age: 58 Experience: 35 Years Degree: B.Tech (Mech) & Masters Age: 58 Experience: 35 Years Degree: B. Sc. in Agriculture with major Rural Banking & Agriculture economics Mr. Mahendra Kumar Singh Head Procurement Mr. Vinod Tripathi Chief Operating Officer Mr. Arpit Mehra Senior Vice President Mr. Vinod Kumar Mishra Head Sales and Marketing ― Mr. Ashok Kumar Singh Head Quality Control Mr. Abhijit Mitra Asst. General Manager - Operations Age: 51 Experience: 27 Years Degree: B Sc. -Dairy Technology NDRI, Sr. Executive Leadership Program Harvard Business School, Boston, USA Age: 32 Experience: 10 Years Degree: BBA from University of Bradford UK Age: 60 Experience: 30 Years Degree: B.A. Age: 47 Experience: 23 Years Degree: B.Sc., Dairy Technology Age: 50 Experience: 25 Years Degree: Graduation in Dairy Technology, PMI & Six Sigma - Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 12#13Founder, Mr. Atul Mehra, a first generation entrepreneur, has successfully drove the TDSL journey. Moreover, he has contributed to other causes through his leadership skills Awards & Recognition National MSME Award for Outstanding Entrepreneurship Rajiv Gandhi National Quality Award Best CEO Award by Agriculture Today National Productivity Award Leaders of Tomorrow Award Business Leadership Award Udyog Patra Award Vyapar Kesari Vishisht Samman Honored by Uttar Pradesh Milk Chilling Centre Owner's Association NATIONAL WAR CR M Mr. ATU TASTY DAIRYS on bein MSME NATION Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 ARDS Key Positions & Involvements ETC AD Co-chairman, National Committee on Allied Sectors in Agriculture constituted by Confederation of Indian Industry (CII) उत्पादकता पु प्रसंस्करण hi 2008 FO राजीव राष्ट्र गुणता पर ster Ja वितरण रोह AJIV ATI kecil, 10 Chairman, Uttar Pradesh State Council of CII I Ex-Member, Executive Committee of Confederation of Indian Food Trade & Industry (CIFTI) I Auditor, National Food Safety Award instituted by CII Founding force behind creation of INDUCED (Indo Dutch Centre of Excellence on Dairying) 13 13 I#14Complemented by strong board - Brief biographies MAHENDRA KUMAR SINGH Executive Director Head Milk Procurement (Bulk) Dr. ASHOK TRIPATHI Director Head Milk Procurement (VLC) NEERAJ KANODIA Independent Director VIMI SINHA Independent Woman Director NARENDRA SHANKAR SATHE Independent Director Mr. Mahendra Kumar Singh is the Executive Director of our company, appointed as a director to the Board on August 10, 2009. He holds a Bachelors degree of Science degree in Agriculture and Masters of Science degree in Agriculture with major rural banking and agricultural economics from Pantnagar, Dist. Nainital (formerly known as U.P Agricultural University).He possesses an experience of 32 years in the dairy industry. With his background of education in agriculture and his vast experience in the dairy line he plays an important part in the working of the company. Dr. Ashok Kumar Tripathi, aged 62 years, joined the Board of Tasty Dairy after successful innings at Mother Dairy, a WOS of NDDB. He has experience of more than 35 years. He completed his graduation from University of Pantnagar in year 1982 in BVSc & AH & also completed his PGDRDM from IRMA Anand (Gujrat). He has retired from 'Mother Dairy' as a GM-Milk Procurement. During his working period since 2004 to 2018 in Mother Dairy, the company drastically improved its Procurement Network and robust distribution network. He was recruited by NDDB in 1983 and has undergone in- house training in Dairy Cooperative Management and thereafter he lent his services to PCDF as Manager till the year ended 2004. He has experience of Institutional bulk sales also. Therefore, the board thinks fit to appoint him as an Independent Director, he fulfils the criteria of expertise and knowledge in the field of work and criteria of independency. Mr. Neeraj Kanodia aged 60 years, is the Non- Executive Director and Independent Director of our Company and was appointed on our Board on May 28, 2015. He holds a Bachelor's degree in Commerce from Kanpur University. He possesses appropriate skills, experience and knowledge of 36 years in one or more fields of finance, law, management, sales, marketing or other disciplines related to the company's business. Mrs. Vimi Sinha, aged 53 years, is the Non- Executive Director and Independent Women Director of our Company and was appointed on our Board on October 24, 2015 as Non-Executive Director and on 30th day of September, 2017 her appointment has been regularized as Independent and Non-Executive Director for a period of five year with the shareholders' consent. She holds a Bachelor's degree in Commerce from Kanpur University. She possess appropriate skills, experience and knowledge of 6 years in one or more fields of finance, General management, sales, marketing management, or other disciplines related to the company's business. She possesses appropriate skills, experience and knowledge in one or more fields of finance, General management, sales, marketing management, or other disciplines related to the company's business. Mr. Narendra Shankar Sathe aged 58 years, is the Non-Executive Director and Independent Director of our Company and was appointed on our Board on May 28, 2015. He holds a Bachelor's degree in Science from Christ Church College at Kanpur University. He possesses an experience and knowledge of 28 years in one or more fields of finance, law, management, sales, marketing, administration, or other disciplines related to the company's business. Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 14#15Financial Overview <= T Tasty airy SPECIALITIES LTD.#16Financial Track Started in 1992, carries strong operating history with sustained progress and dynamically staying modern Modest start but steady growth FY 10 Revenue Touched 100 crore FY 13 Revenue Touched 200 crore FY 16 FY 19 Revenue Touched 300 crore Revenue Crossed 400 crore Year 1992 1995 2000 2005 2010 2015 2020 Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 Grown fourfold in 10 years 16#17Demonstrated stable and healthy operations over the past two years Income Statement Summary Balance Sheet Summary INR Lakh/ FY Ending Mar 31, Revenue From Operations 2019 2020 INR Lakh/ FY Ending Mar 31, 2019 2020 36,521 40,316 Sources Growth 10.0% 10.4% Net Worth 6,851 7,270 Gross Profit 2,438 2,628 Long Term Borrowings 242 103 Gross Margin 6.7% 6.5% Other Long Term Liabilities 191 186 EBITDA 1,349 1,292 Total 7,284 7,559 EBITDA Margin 3.7% 3.2% Uses EBIT 1,156 1,126 Gross Block 3,133 3,244 EBIT Margin 3.2% 2.8% Net Block 1,238 1,168 PAT 595 420 Other Long Term Assets 678 501 PAT Margin 1.6% 1.0% Net Current Assets 5,368 5,890 Total Current Assets 9,811 12,662 Less: Total Current Liabilities 4,443 6,772 Total 7,284 7,559 Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 17#18Demonstrated stable and healthy operations over the past two years... (Continued) Key Operating Ratios Key Parameters Y-o-Y Perspective INR Lakh/ FY Ending Mar 31, 2019 2020 40,316 36,521 Debt/Equity 0.58x 0.63x Return on Capital Employed 11% 10% Return on Equity 9% 6% Revenue/Gross Block 11.7x 12.4x Revenue/ Net Fixed Assets 29.5x 34.5x Revenue Inventory Days 69 64 Debtor Days 20 48 7,270 6,851 Creditor Days 1 17 Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 Net Worth Notes: 1. 2019 2020 INR Lakh * 1,349 1,292 595 420 EBITDA PAT 3,182 3,278 Gross Block 5,890 5,368 Net Current Assets In FY 20, there is a one time expense of bad debt written off worth INR 204.5 Lakh and an exceptional expense worth INR 68.0 Lakh both totaling to INR 272.5 Lakh 2. Gross Block includes WIP assets 18#19Shareholding Pattern => T Tasty airy SPECIALITIES LTD.#20Shareholding Pattern As on 31st March 2020 In February 2018 SHAREHOLDING PATTERN Represented by 544 investors Retail 25.5% Promoters 74.5% Total 204.3 lakh shares outstanding LISTING In September 2020 MIGRATION TO MAIN BOARD Earlier, Listed on the SME platform of BSE through Initial Public Offering (IPO) which was over subscribed 97 times the Offer Size Within 2.5 years of listing on the SME platform, got migrated to the Main Board of BSE thus facilitating further ease of trading to the retail investors Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 20 20#21The Way Ahead T Tasty Dairy SPECIALITIES LTD.#22Key strategy for the way ahead is to expand the product offerings to cater to the emerging needs in the dairy sector Verifresh وريفريس The new products are expected to be launched in Q4, FY 2021 Existing Product Segment Bulk Milk Commodity SMP Commodity Ghee Traditional VADP + New Launches Product Segment Mozzarella Cheese Emerging VADP Emerging VADP Dairy Whitener Whey Powder Emerging VADP Traditional VADP Butter Traditional VADP Gulab Jamun Mix Traditional VADP TASTY DAIRY Verifresh Butter Tastyairy UJJWAL B DESI GHEE CIMA GULAB JAMUN MIX Eg from 1000 Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 Flavored Milk Farm Fresh Milk Commodity Bread Eggs Complementing consumer basket Complementing consumer basket Dairy Delite a Tastyalry Verifresh COMPLEX MATURE CHEDDAR Taste the Best Verifresh DEMINERALIZED Sweet Whey Powder 22 222#23The existing and new products will be effectively marketed & distributed through three focused segments Product Range New Perspective to Business Segmentation Institutional ✓ Bulk Milk SMP ✓ Butter ✓ Ghee ✓ Dairy Whitener ✓ SMP HORECA ✓ Dairy Whitener ✓ Butter ✓ Ghee ✓ Cheese B2C (Consumer) ✓ Flavored Milk ✓ Fresh Milk ✓ Bread ✓ Eggs ✓ Dairy Whitener Tasty Dairy Specialities Ltd. | Investor Presentation | September 2020 ✓ Cheese 23 23#24Tasty Dairy SPECIALITIES LTD. 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