(Formerly Satnam Overseas Limited)

True to our vision of evolving as a multi

product food company, we have re-christened
ourselves with a new name. Our flagship
brand ‘Kohinoor’, renowned world over for
authentic and quality food offerings, has
become our corporate identity.
 Serving
Authentic Indian Gourmet
products worldwide…
 OUR VISION
“At Kohinoor Foods, we are driven by the
quest for business excellence centered around
an unflinching commitment to quality at every
step that makes us stand out as one of India’s
emerging modern food companies.”
OUR GLOBAL PRESENCE

London

New Jersey

Delhi
Dubai
KOHINOOR FOODS – A SNAPSHOT

Global Brand
•Delighting millions in 47 countries
•On TESCO, Somerfield, ASDA,
Krogers, Walmart, Coles &
Woolworths
•More than 250 thousand retail
outlets worldwide
Global Distribution
•Distributors in 47 countries
•A pan Indian distribution with more
than 130 distributors and 500 Stockists
•Years of global distribution expertise

Infrastructure
•One of India’s largest rice Knowledge Resource
processing units and one •World-wide consumer insights and
ultramodern food processing unit trend
•Strategic bases in US, UK and •Global marketing techniques and
UAE with manufacturing Modern Retailing
capabilities •A manpower base with talent pool
from across the world
 FINANCIAL SNAPSHOT
Product Mix FY’05 FY’06 FY’07
Net Sales (Rs. In Million) 5,035.8 5,407.8 5,892.30

EBITDA Margins 7.89% 8.97% 10.36%

Net Profits (Rs. In Million) 154.8 207.85 220.70

Net Margins 3.1% 3.84% 3.75%

Return on Equity (ROE) 14.6% 17.56% 15.93%

EPS (Rs. Per share) 7.9 10.60 11.26

2 year CAGR growth of 19% in PAT

Operating Profits increased to Rs 610.53mn from Rs 485.13 mn in FY’06

ROE 15.58% due to increased operating profits because of Branded Sales

Product Mix 6.36%
37.76% 55.88%
(FY’06)

Branded Basm ati Rice

Unbranded & Com m odity Sales

Food
A GLIMPSE OF OUR CLIENTELE
A GLIMPSE OF OUR CLIENTELE
 AWARDS & RECOGNITION
• Kohinoor awarded ‘Superbrand’ status in India
• ‘Trend & Innovation’ award from SIAL, Paris
• APEDA Award for best basmati rice export performance
since last 14 years
• National Award for exceptional quality and best export
performance in agro products from the President of India
• Award from World Economic Forum
• Niryat Shree Award from the Government of India
• The prestigious “Brand Equity” Award from the Ministry
of Commerce, Govt. of India and many more
 OUR WOS IN UK - INDO EUROPEAN
FOODS
• Set-up in 2001 to strengthen brand
marketing in UK and Europe, the 2nd
largest market for basmati rice in the
world and largest market for Indian
foods
• Big multiple stores like TESCO,
ASDA control 70% of the market. A
strategic base to capture this huge
market with manufacturing and
service capabilities
• Own rice processing facility with 8
MT/hour capacity with covered area
of 1,40,000 Sq. Ft. (to save import
duty of 120 pound per MT).; BRC
approval on the anvil
• Caters to 3 out of the 5 big multiples
in UK today
• Builds synergy with KFL’s frozen
foods business with a huge
potential to do chilled food
processing in UK
 OUR WOS IN US – S.O.L. INC.
• S.O.L. Inc. set up in 2001 in New
Jersey, US to strengthen brand
marketing in North American markets
• Today owns 5 marketing cum
distribution centres:
– New Jersey
– Houston
– Maryland
– Chicago
– San Francisco
• Presence in Krogers, WholeFoods,
Costco, BJs and Walmart
• Very strong in ethnic retail marketing
• Augurs a huge opportunity with
Indian foods steadily climbing the
ladder from a 5th/6th position to 3rd
position in the next 3 years
(Indian Food Market size is $ 1
billion)
 OUR JV IN DUBAI – RICH RICE
RAISERS
• A strategic base for the hugely potential middle east market,
the gateway to Iran and Iraq. A very big feeder market.
• A small rice factory for polishing and packing
• Presence in Carrefour, Lulu and Almayalal – the big retail
chains of Dubai
• A very big market for frozen products and opens up big
possibilities in the food service sector with huge infrastructural
development in this region
 OUR BUSINESS SEGMENTS
• Basmati Rice
• Branded Basmati (Domestic &
International)
• Private Label
Focus Segment
• Branded Foods
• Commodities / Trading
70 62
5,892.3 60 55
49
6000
5,407.8 50
5500 5,035.8 40

5000 30
20
4500
FY'05 FY'06 FY'07 10

Focus Segment 0

FY 2005 FY 2006 FY 2007

NET SALES (RS. IN MILLION)
PERCENTAGE OF BRANDED SALES
 BASMATI RICE GLOBAL
ƒ Global 1.8 Fig. in Million MT
1.6
ƒ Global production of basmati 1.7
1.4
-2,300,000 MTA 1.2
ƒ India has a 74% share of the 1
total production 0.8
0.6
ƒ Monsoon & other climatic 0.4 0.6
conditions has no major 0.2
impact on production of
0
basmati
India 74% Pakistan 26%

Global Share of Basmati

 BASMATI RICE DOMESTIC
• Domestic 70% 67%
– Size of the domestic market -
900,000 MTA amounting to $ 60% 50% 50%
200 mn 50%
40% 33%
– Branded market – Just 33% of
the domestic market valued at 30% Global Share of Basmati
$ 100mn 20%
10%
0%
Volume Value

Unbranded Branded
Basmati – Domestic Share
 BASMATI RICE - KFL

MURTHAL - ONE OF INDIA’S LARGEST MILLING

CAPACITIES
 OUR CAPABILITIES
• Infrastructure
– 12,85,020 sq. ft. of area
– 40 MT/hour processing capacity
• Quality Adherence
– ISO 9001:2000 certified
– HACCP Certified Plant
– BRC Certified
– Kosher Certified
– GMO Certified
– IMO – Organic Certification
– US-FDA Compliant
– EU-FSA Compliant
• Packaging Capabilities
– The entire spectrum of
packaging options,
traditional jute, laminates,
block bottom, pet jars,
non-woven bags
 KOHINOOR IN GLOBAL MARKETS
• The only brand with presence in 47 countries with
own distributors
• Available on more than 30,000 retail outlets.
ƒ Only brand from India adorning the shelves of 1200 3 Yr CAGR 56%
TESCO, the largest retail chain of UK,
Somerfield (UK), Krogers and WholeFoods (US), 1000 1,092.0
Carrefour (Middle East), Coles and Woolworths 800 928.6
(Australia) .
600 742.7
ƒ The only Indian company with global 400
manufacturing and servicing
200
capabilities; the key to success in the 285.0

ruthless global market arena 0

FY'04 FY'05 FY'06 FY'07
ƒ Wholly Owned Subsidiary in UK with rice
factory at port city of Felixstowe
Branded Basmati – Exports (Rs. In Million)
ƒ Marketing and Own distribution warehouses
at 5 strategic locations of US
ƒ Joint venture company with rice factory at
Dubai, UAE

Growth drivers : Saudi Arabia, the world’s largest market (with Rs. 3000 cr.
Size) augurs a huge opportunity for Kohinoor. Having already appointed the
distributor this year, we are looking garnering at least 10% market share in
the next 2 years time.
Europe is another huge market opening up for us with our UK rice factory
having made fully operational.
 MAJOR CLIENTELE

• TESCO, Costco and Somerfield (UK)

• Singapore Airlines
• Tiger Food Brands, South Africa
• Coles and Woolworths, Australia
• Royal Emirates, UAE
• Krogers and Whole Foods in US
 GOING FORWARD
• Focus on branded exports and reduce dependence on
private label

• Strategic bases in UK and US give a unique edge to

Kohinoor Foods to garner market share in Europe and
America

• 60% of basmati exports was branded in FY 2006. We

intend to make it 90% by FY 2009

• Addition of another 10 countries by FY 2009

 KOHINOOR IN DOMESTIC MARKET
• No. 1 Branded Basmati Player in India.
• Kohinoor shares around 52% (in value terms) 2 Yr. CAGR – 16%
and 49% (in volume terms) of the total
organised basmati rice market in the modern
2500 2200
retail format in the country. (Source: AcNielsen
ORG-MARG). 1808.8
2000
1643
ƒ Kohinoor – the largest selling brand in the
domestic market having 38% market share 1500
(Survey by TNS)
• The only brand with a pan-Indian distribution 1000
base; more than 130 distributors and 500
stockists & available at more than 2,20,000 500
retail outlets.
• Strong presence in the premium segment of the 0
FY'05 FY'06 FY'07
market; brand commands huge respect both at
trade and retail level Branded Basmati – Domestic (Rs. In Million)
• Separate cell to look after the modern retail
format, the catalyst of growth in branded
segment
Growth drivers : Changing consumer preference towards branded and
packaged basmati, Emergence and exponential growth of big format retail in
India (Present share of 52%) and Strong rural penetration of branded basmati
 MAJOR CLIENTELE
• Amway India
• Taj Group
• Oberoi Group
• Reliance Retail
• Big Bazaar
• Shoprite
• Spencers’
 GOING FORWARD
• Focus on enhanced branding of ‘Kohinoor’

• Modern retail format – the next big opportunity

• Retail growth in semi urban and rural India – boom for growth

• Tie-ups with big boys of retail

• Entry into newer markets with appointment of 5 more

distributors by FY 2007
 READY TO EAT FOOD (RTE)
•Food is a USD 5 Trillion market of which processed foods is 80%
•India is second largest producer of vegetables (99 Mn Tones) after China
•India is second largest producer of Fruit (50 Mn Tons) after Brazil.
•Indian food retail sales in 2005 in the UK :- GBP 508 Million ( Rs. 4000 Cr.)
•Sales of microwaveable rice in UK is : GBP 53 Million (Rs. 425 Cr.) & growing at
35%

Strong Fundamentals Enormous Potential

9 India is the 3rd largest food 9 Value added ready to eat market to
producer in the world expand exponentially

9 Shift in consumption patterns 9 Increasing export potential for ethnic

Indian foods
9 Opportunity to overcome 9 Enhance profitability through
inefficiencies in supply chain improved efficiencies

•Ready to eat market (RTE) to grow to $ 220 Mn by 2010.

•Mckinsey estimates the CAGR in RTE domestic market to be 200% over next 2
years.
•Domestic market estimated at $25 mn in 2008.
 FOODS – OUR PASSION
• Synergic move in the year 2004
• Created a world class infrastructure at
Bahalgarh (Haryana) with modern food
processing capabilities
• A slew of product lines on the international
format, designed for today’s times
A VIEW OF OUR BAHALGARH FACTORY
 OUR CAPABILITIES
• Infrastructure
– 2,06,571 sq. ft. of area
– 50,000 Meals per day on the ambient side and 20 MT per day on the frozen
foods side
• Quality Adherence
– HACCP Certified
– ISO 9001:2000 Certified
– GMP Certified
– BRC Certified
– Kosher Certified
– US-FDA Compliant
– EU-FSA Compliant
– Subscribing to International Business Excellence Model
• Complete System Documentation.
• Kaizen
 PACKAGING CAPABILITIES
• Flat & SUP Aluminium Retort Pouches
• Microwaveable Transparent Retort Pouches
• Multi Layer Barrier Trays
• Glass Jars
• Aluminium Heat Sealable Containers
• High Barrier Microwaveable Rigid Cups
• PP Jars
 BRANDED FOODS
ƒ Presence in more than 20 countries
with in excess of 150 SKUs CAGR – 100%

ƒ Captured mainstream markets of US, 400 374

UK, Canada, Australia, Malaysia, 350

Japan, Singapore, Mauritius with 300
224
entry in big multiples 250
200
ƒ Created new product categories with 150
Rice & Curry – Microwaveable ready 100
91

meals in the ambient format 50

0
ƒ The only Indian food brand in
International flight menu; FY 2005 FY 2006 FY 2007

Malaysia Airlines and Emirates. Branded Foods Turnover in Rs.

Million
 KOHINOOR IN FOODS
ƒ A very strong presence in international retail chains in a
very short span of time
ƒ TESCO, Somerfield, ASDA and COSTCO in UK
ƒ Coles and Woolworths in Australia
ƒ Tiger Brands, South Africa
ƒ Hankyu, Daimaru, Takashimaya, Seijo Ishi in Japan
ƒ Walmart, BJs, Whole Foods and Krogers in US
ƒ Costco, Sotheby in Canada
ƒ Mustafa Centre and 7 Eleven, Singapore
ƒ Shoprite in Mauritius
ƒ Globus and Metro in Switzerland and Romania
ƒ Carrefour in Middle East
ƒ Malaysian Airlines
FEW CASE STUDIES
 TESCO
• Kohinoor has captured 48% of the ethnic shelves of TESCO.
• Product lines include; Basmati Rice, Rice & Curry, Rice Treat,
Cook-in Sauces, Cooking Pastes, Spices & Seasonings, Lentils
and Wheat Flour
• YOY Growth – More than 50%
 SEIJO ISHI, JAPAN
• Kohinoor Heat & Eat Curries and Cook-in Sauces – Espousing
India’s authentic taste have become great favourites for
mainstream Japanese.
• As of today, selling more than 15,000 units per week across
Seijo Ishi Stores in Japan
OUR PORTFOLIO
AMBIENT FOODS
 HEAT & EAT CURRIES

RICE TREAT-MICROWAVEABLE RICE

RICE & CURRY – READY MEALS

COOK IN SAUCES

COOKING PASTES

CHUTNEY
SPICES POWDER

WHOLE SPICES

SEASONINGS
OUR PORTFOLIO
FROZEN FOODS
SNACKS
Cocktail Samosa, Aloo Bonda, Paneer
Tikka, Idli, Medu Vada, Punjabi
Samosa, Seekh Kebab, Paneer Tikka,
Shami Kebab, Vegetable Pakora,

BREADS
Aloo Paratha, Paneer Paratha, Peas
Paratha, Plain Naan, Garlic Butter
Naan, Amritsari Kulcha, Peshawari
Naan,
READY-MEALS
Hyderabadi Vegetable Biryani, Paneer Tikka
Biryani, Madurai Lemon Rice, Chinese Fried
Rice and Soya Keema Biryani

CURRIES
Peshawari Dal Makhani, Mutter Paneer,
Palak Paneer, Mumbai Pav Bhaji
CUT VEGETABLES
All sorts of pre-cut vegetables
 GOING FORWARD
• Our recent foray into frozen opens up the 3 times bigger global frozen foods market
• Shipments already effected to Singapore, Mauritius and UK.
• A path breaking innovation in 7 Eleven Stores, Singapore with frozen foods
• Plans to add another 7 countries by FY 2007 and another 30 countries by FY 2009
• Plans to add another 60 SKUs by FY 2008 with expansion of capacity to 1,20,000 meals
per day from 50,000 level in the ambient side
• Significant thrust to food service
– Papa John – Frozen Soups
– Emirates Flight Catering, Dubai - Sauces
– Barista – Ambient Pastas
– Costa Coffee – Extension as a Commissary
– Oberoi Flight Service – Indian snacks for international flight catering
• Entry into new markets and further penetration to mainstream retail chains; On the anvil:
– Morrissons, Sainsbury and Waitrose (UK)
– Target in US
– NETTO in Holland etc.
• Strategic tie-ups with big boys of foods; S&A Foods and Gazebo in UK, Sunrice in
Australia
 ADVANTAGE KOHINOOR FOODS
• A keen understanding of International retailing trends and
merchandising at retail shelves
• Product innovation catering to modern lifestyle needs
• Credible infrastructure and supply capabilities
• Experience of catering to the most demanding international
retail chains
• Portfolio designed to cater to modern retail formats
• Shelf ready packaging
• Experience of handling a complex multi-SKU food
portfolio
• The only Indian integrated foods company with
control on entire value chain of the business
– International brand presence and distribution network
– Global manufacturing and service capabilities
– A thriving global knowledge base
• A well diversified business model; de-risks businesses
with not relying on a single customer/country
 FINANCIAL REVIEW FY 06-07
(SALES ANALYSIS)

• Branded sales contribute

70 62
60 55
49

almost 62% to revenues 50

40
in 2007 in comparison 30

of 49% in 2005. 20
10
0

FY 2005 FY 2006 FY 2007

• Branded sales increased CAGR-25%

by CAGR of 25% in last 3,897.2

2 years. 4000

3000
2,476.7
2,961.0

2000

1000

0
FY'05 FY'06 FY'07

BRANDED SALES (RS. IN MILLION)

 CAGR – 22%
3,522.8

• Branded basmati rice

4000 2,737.4
2,385.7
3000

increased with a CAGR 2000

of 22% in last 2 years. 1000

0
FY'05 FY'06 FY'07

Branded Basmati Rice (Rs. In Million)

• Branded Foods business CAGR – 100%

increased with a CAGR 400
374.4

of 100% in last 2 years 300 224.0

200 91.0
100

0
FY'05 FY'06 FY'07

Branded Foods (Rs. In Million)

 5,892.3
• Net sales increased by 6000
8.96% to Rs. 5892.3 5,035.8 5,407.7
mn in FY’07. 5500

5000
NET SALES (RS. IN MILLION)
4500
FY'05 FY'06 FY'07

Net Sales (Rs. In Million)

 PROFITABILITY ANALYSIS
• The EBIDTA margin 10.36%
8.97%
increased from 7.89% in 15.00% 7.89%
10.00%
FY’05 to 10.36% in 5.00%

FY’07 due to favorable 0.00%

FY'05 FY'06 FY'07
product mix shift
EBITDA MARGIN
• Net Profit increased
with CAGR of 19% in 2 CAGR – 19%

years due to increase in 300

154.79
207.85 220.70

operating profit margins 200

100
because of Branded 0

Business FY'05 FY'06 FY'07

NET PROFITS (RS. IN MILLION)

• Net Margins increased from 3.84% 3.75%
3.10%
3.1% in FY’05 to 3.75% in 4.00%
FY’07
2.00%

• EPS increased to Rs 11.26 0.00%

FY'05 FY'06 FY'07
from Rs 10.61 in FY’06
Net Margins

• Return on Equity increased

17.56% 15.93%
from 14.6% in FY’05 to 14.60%
20.00%
15.58% in FY’07.

0.00%
FY'05 FY'06 FY'07

RETURN ON EQUITY
SHAREHOLDING PATTERN

44.13%
40.12%

8.60%
7.15%
Promoters FII & FI
Corporate Bodies Public & Others

As on 31ST March 2007

 PROFIT & LOSS STATEMENT(Rs. In Million)
FY’05 FY’06 FY’07
Particulars
Net Sales 5035.80 5407.80 5918.15
Operating Expenses 4,686.7 4945.40 5307.64
Raw Material consumed 3,926.3 4054.69 4210.21
Administration expenses 83.4 90.33 109.32
Selling Expenses 301.3 355.08 429.77
Staff Cost 69.4 85.80 97.76

Manufacturing Expenses 306.3 359.50 460.58

OPBDIT 349.1 462.40 610.51
Finance Charges 119.7 124.70 198.24
Depreciation 57.9 81.27 104.07
OPBT 171.5 256.43 308.21
Non Operating Income/Other
Income 43.5 20.59 20.85
PBT 215.0 277.02 308.22
Provision for current Tax 54.5 76.20 95.50
Deferred tax 5.7 -7.20 -8.00

PAT 154.8 208.00 220.72

Note :- Non operating income has been included in Net Sales.

 SOURCES OF FUNDS
(Rs. In Million)

Particulars Mar 05 Mar 06 Mar 07

I. Sources of Funds
1.Share Holder's Fund 1,059.9 1,218.50 1,416.27
(a) Share Capital 196.0 196.0 196.0
(b) Reserves & Surplus 863.9 1022.50 1220.27
2.Deferred Tax
Liability/(Asset) 36.7 29.5 21.55
3.Loan 2,664.7 3553.20 4601.78
(a) Secured 2,496.7 2620.30 2641.98
(b) Unsecured 168.0 932.90 1959.80
TOTAL (1+2+3) 3,761.3 4801.20 6039.60
 APPLICATION OF FUNDS (Rs. In Million)

Particulars Mar 05 Mar 06 Mar 07

II. Application of Fund

1. Net Fixed Assets 447.2 567.95 625.12
Gross Block 756.2 867.40 969.97
Less Depreciation 336.5 406.2 490.04
Net Block 419.7 461.20 479.93
Add CWIP 27.5 106.75 145.19
2. Investments 129.3 206.7 348.05
3. Net Current Assets (A-B) 3,184.8 3991.9 5035.4
A. Current Assets 3,655.6 4479.4 5731.37
(a) Inventories 2,708.1 3026.3 3551.41
(b) Debtors 554.0 620.3 1019.27
(c) Others 393.5 582.88 1160.69
B. Current Liabilities 470.8 487.53 695.94
(a) Creditors and other liabilities 273.6 206.98 346.19
(b) Provisions 197.2 280.55 349.75
4. MISCELLANEOUS EXPENSES - 34.7 31.00
TOTAL (1+2+3+4) 3,761.3 4,801.20 6,039.60
THANK YOU