Investor Presentaiton

ANNEXURE - INDIAN DAIRY INDUSTRY KEY LONG TERM GROWTH DRIVERS FAVOURABLE DEMOGRAPHIC TRENDS • Rising number of middle class households - set to double from 255mn in 2015 to 586mn in 2025. Increasing working population and disposable incomes. Increasing organised retail penetration across Tier 1, Tier 2 and Tier 3 towns. RISING CONSCIOUSNESS . Evolving food consumption patterns with focus on health and nutrition. ABOUT HEALTH & NUTRITION • Milk is rich source of proteins, fats, vitamins and carbohydrates. • RISING SHARE OF HIGH MARGIN PRODUCTS IMPROVEMENT IN SUPPLY CHAIN INFRASTRUCTURE GOVERNMENT INCENTIVES & SCHEMES Source: Company RHP • The share of milk and dairy products in daily food diet is continually increasing High-margin milk products account for 15-20% of the total milk produced in India. Rise in urbanisation and changing consumer lifestyle are driving demand for value-added dairy products. • Rising number of middle class households - set to double from 255 mn in 2015 to 586 mn in 2025. • Increasing working population and disposable incomes. Increasing organised retail penetration across Tier 1, Tier 2 and Tier 3 towns. Prabhat Partners in Progress • • National Dairy Plan: Objective is to improve milk productivity and entire value chain infrastructure. The 1st phase (FY12-FY17) has budgeted investment of Rs 22.4 bn. Priority lending status for banks: The sector has this status since 1999. . Technology upgradation: General areas - 40% subsidy, difficult areas - 50% subsidy (up to Rs 10 mn). • Foreign Direct Investment (FDI): 100% FDI permitted in dairy products. • Import of equipments: 5% customs duty on imports of capital goods/machinery, including second-hand. . MRTP (Monopolies & Restrictive Trade Practices Act) rules and FEMA (Foreign Exchange Management Act): Relaxed to encourage investment and expansion by large corporates. 29

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