Scripscan:Heritage Foods India Ltd
cmp:170
Code:519552
Story:In last fiscal 08-09,it has added new facilities for making various products such as Cup curd, Doodh Peda, Paneer, Ice Cream, Ghee in the existing plants at Uppal, Gokul, Bayyavaram & Narketpally.Heritage"s market share with respect to milk and milk products in South India also increased substantially.The company now plans to invest over Rs.8.51 Crores for setting up of supporting facilities to improve the performance and effective utilisation of existing installed capacities of packing and processing plants. To maximise the revenue from products, it is establishing / increasing the production capacities for value added products and planning to tie up for UHT milk packaging for Milk, Cream and Flavoured Milk.The company has also entered the retail foray arena by launching "Fresh@"-it is a unique chain of retail stores designed to meet the needs of the modern Indian consumer, the store rediscovers the taste of nature everyday, making grocery shopping a never before experience.All these augurs well for the company and its shareholders for the coming months and years.See basic things are procurement systems for milk and processing capacities in close proximity to the purchase and sale points are two key critical success factors in the liquid milk business. Heritage Foods has made substantial investments in augmenting these capabilities over the past 10 years. After a steady ramp-up in production capacities, the company controls a huge amount of milk processing capacity across its various processing units spread throughout south India.The key risks in Heritage's business arise from the rising competition in liquid milk business, which could scale up procurement costs and its foray into value-added products. Though products such as cheese, butter and yoghurt have the potential to improve the company's profit margins, these may call for substantial investments in promotion and advertising. These are also difficult markets to break into. This is evident from the limited headway made by companies such as Nestle India and Britannia in products such as flavoured milk and ultra heat treated milk.I would rate it a hold and buy on dips stuff at these point of time.
Search This Blog(Over 800 companies covered in the blog).
Archives : Old artciles
Tuesday, November 3, 2009
Important Disclaimer&Privacy policy
This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: arunsharemarket@gmail.com
Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.
