Foods & Inns

- For FY’25, Foods & Inns Limited does not plan any significant CapEx except for expanding the pastry line by adding a few more lines with an estimated investment of around Rs. 3-4 crores. - There is an emphasis on reducing existing debt, but actual debt levels will depend on business growth and raw material prices. - No mention of any new fundraising through debt or equity has been made in the call. - Current efforts seem focused on optimizing existing capacities and expanding select product lines rather than pursuing fresh large-scale fundraising.

- Expansion of pastry line: Planning to add two more lines in the immediate future due to strong market response. - In the pastry line business, potential to generate over Rs. 100 crore with the addition of 10 lines. - Recently imported one pastry machine; targeting installation of two more lines by October or November, followed by five additional lines. - Tomato capacity expansion done outside the PLI scheme; capacity to be commissioned in October 2024 to capture larger orders. - Pectin project to commence production around late August 2024, converting dried mango peel wastage into pectin. - FY’25 CapEx planned is modest, approximately Rs. 3-4 crores, primarily for pastry line expansion. - No major CapEx planned beyond these; focus is on expanding existing lines and product categories.

- Sales growth in mango pulp volumes for FY'25 expected to be similar to FY'24 due to 25% lower processing caused by lower quality raw material availability. - Growth expected primarily from tomato and guava categories, benefiting from a good monsoon and doubled tomato processing capacity commissioned in October 2024. - Target to expand pastry line with 2 additional lines soon, followed by 5 more, anticipating this business to generate over Rs. 100 crore with good EBITDA margins. - Exploration of new geographies for tomato pulp including Russia, Sri Lanka, UK, and earlier exports to Spain indicate geographic expansion strategy. - Frozen category expected to grow globally post-COVID; working on contracts with big brands and supermarkets primarily in the US, UK, Europe, and Gulf countries. - Limited growth in Tetra Recart segment currently, but product development/testing ongoing; revenue expected to start materializing in FY'25. - Total sales target remains Rs. 1,600 to Rs. 1,800 crore in the next 2-3 years, with potential acceleration possible.

Future Growth Expectations for Foods & Inns Limited: - Targeting Rs. 1,600 to Rs. 1,800 crores in sales over the next 2-3 years, with a vision to at least double current revenues. (Page 10) - Growth driven by expansion in tomato and guava categories, leveraging good monsoon and increased processing capacity, particularly doubling tomato capacity. (Pages 12-14) - The newly launched pastry line shows strong potential; plans for adding 2-5 more lines by late 2024, offering good EBITDA margins and global demand expansion. (Pages 14-16) - Export growth opportunities in new geographies including Hong Kong (branded), Russia, Sri Lanka, UK, and Spain. (Pages 13-14) - Pectin production expected to start by late August 2024, adding a new revenue stream. (Page 10) - Focus on sustainability and working capital management to reduce debt and support profit growth. (Pages 12,18) - Operating margins and EPS expected to benefit from favorable product mix and cost efficiencies, although raw material price volatility remains a pass-through factor. (Page 10)

- The order book for the mango season is still being processed and is expected to be finalized by end-September or mid-October. - Currently, about 80% of the orders are confirmed and booked; the remaining 20-25% are under negotiation. - Indicative orders are received at the start of the season, with final rate confirmations happening around August. - Due to limited inventory, not all orders received may be fulfilled; only what is in hand will be sold. - Order book growth compared to FY24 is expected to be higher. - Despite a higher order book, actual sales depend on the pace of call-offs. - Some orders, particularly in tomato processing (around Rs. 150 crores from last year), were deferred due to previous capacity constraints but can now be taken due to increased capacity. - There is a rough Rs. 9.8 to 10 crores of deferred sales from earlier quarters, mostly related to export shipments delayed by shipping constraints.