Heritage Foods Ltd

Our growth framework, centred on consumer needs, has consistently propelled our success. With a clear strategy and strong execution, we are confident in our ability to navigate market dynamics effectively while continuing to expand our market share and deliver superior value.

Dear Stakeholders,

I am privileged to present your Company's Annual Report for the fiscal year 2024-25. This year, we have completed 33 years of our journey. A journey of strength, struggle, honour, faith and steady progress. We confidently move towards becoming a leading player in this journey of transformation.

Notwithstanding the ongoing challenges posed by price volatility, your esteemed Company has demonstrated a commendable performance across key metrics, achieving double-digit revenue growth alongside significant EPS growth. Our record-breaking performance is founded on three fundamental pillars of disciplined financial management; judicious investments in essential infrastructure and bold operational decisions; each of which has contributed to enhancing our margins while maintaining momentum. The accomplishment serves as a significant testament to Heritage Foods' steadfast dedication to excellence, strategic foresight, and consistent implementation.

I am pleased to share our unwavering commitment to robust Corporate Governance, comprehensive Environmental, Social, and Governance (ESG) practices, and a proactive Enterprise Risk Management (ERM) framework. These pillars are not mere regulatory checkboxes; they are fundamental to our long-term success, resilience, and ability to create sustainable value for all our stakeholders – our shareholders, employees, customers, partners, and the communities in which we operate.

We stand at a juncture of immense opportunity in India, and I am filled with a profound sense of excitement and possibility.

India's success story of balancing economic growth and a vibrant democratic society has no parallel and as a result my belief in the country's growth story has never been higher.

The country is poised at an inflexion point where it stands to correct decades of extensive product or service under-consumption across the decade, helping retain its position among the fastest-growing global economies. The result of this sustained transformation is also that India is likely to graduate from the fifth largest to the third largest economy by 2030.

Over the past three decades, India's per capita dairy consumption estimated at around 160 kg annually, remains lower than that of developed markets, where it typically exceeds 250 kg per person. This disparity highlights the significant growth potential in domestic consumption and the opportunity to further expand access to value-added dairy products across urban and rural markets.

Coming to the domestic dairy industry, the opportunities are increasingly promising. The Indian dairy market is on the verge of an explosive growth surge, with a stellar 9% overall CAGR and the value-added products category growing at 20 plus per cent annually.

Interestingly, the domestic dairy market is a fast-evolving demand landscape. Consumers today are no longer just buying dairy. They are buying trust, traceability, taste and nutrition. And in this shift the organised dairy players like Heritage are uniquely positioned to lead.

As the nation's burgeoning consumer base continues to grow due to increasing aspirations, and with the unorganised sector still representing 60% of the market,

Heritage is strategically positioned to harness and accelerate this growth, thereby establishing itself as a significant contributor to India's presents a unique market opportunity.

Heritage Foods is strategically positioned to capitalise on this growth with a well-diversified product portfolio encompassing milk, curd, paneer, ghee, drinkables, ice cream, and animal nutrition.

Our strategic expansion into new geographical markets, supported by a robust distribution network and an omnichannel strategy, continues to broaden our reach.

We are particularly enthusiastic about our growing strength in the E-Commerce sector, which is significantly enhancing our accessibility and convenience for our consumers while enhancing our outreach.

Our growth framework, centred on consumer needs and satisfaction has consistently propelled our success. With a clear strategy and strong execution, we are confident in our ability to navigate market dynamics effectively while continuing to expand our market share and deliver superior value.

As we progress, Heritage Foods will remain steadfast in executing its strategy with a sharp focus on growth.

Our Company is committed to strengthening its core businesses, accelerating innovation, and unlocking efficiencies while exploring new opportunities, both organic and inorganic, and building for the future.

I express my sincere gratitude for the unwavering support of our dairy farmers, the commitment of our employees, and the continued patronage of other stakeholders, all of which have been crucial in the steady progress that the Company has made thus far.

We greatly value your partnership and look forward to collectively achieving new heights on this journey.

Warm regards,

Chairperson