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ADF FOODS LTD
• ADF Foods Ltd. operates in the rapidly growing ‘ready to eat’ (RTE) segment and has strong brands like Ashoka. The
company manufactures and distributes Indian pickles, chutneys, canned foods, frozen foods, and spices. It derives
almost 95% of revenues from exports.
• ADFL’s flagship brand is Ashoka, which includes several categories like pickles, frozen vegetables, snacks, frozen
breads and ready to eat curries, and is targeted at the Indian diaspora. Besides Ashoka, it has other brands like Camel
(premium brand for Middle-East-style pickles and spices) and Aeroplane (economy brand of Indian pickles and
chutneys).
• The company recently ventured into the Indian markets with a brand called Soul, targeted at the health conscious. Its
current products are olive-oil-based pickles and RTE vegetables. While Soul is currently being test marketed, the
management is increasingly focusing on the domestic market, and we expect a spate of new launches. Our sense is
that revenues from India will move up to 30-40% over the next 4-5 years from 5% now.
• While the focus of the company has largely been traditional Indian food for the Indian diaspora, the company is also
foraying into new foods like hummus, pastas and Indian food customized for non-Indians (via the brand, Truly
Indian, which is low on spices).
• ADFL acquired Elena’s in September 2010 for an estimated US$15m. Elena’s is a US-based manufacturer of organic
and natural products of protein-based Mexican foods with revenues of ~US$10m in CY10. The acquisition allows ADF
to leverage Elena’s manufacturing facility and distribution setup in the US besides widening product range. Elena’s,
which had been making losses, has broken even at cash level in just a quarter since the acquisition. The management
expects to recover its entire investment in the next four years.
• The company currently has no debt and Rs250m cash on the books.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
ADF FOODS LTD
• ADF Foods Ltd. operates in the rapidly growing ‘ready to eat’ (RTE) segment and has strong brands like Ashoka. The
company manufactures and distributes Indian pickles, chutneys, canned foods, frozen foods, and spices. It derives
almost 95% of revenues from exports.
• ADFL’s flagship brand is Ashoka, which includes several categories like pickles, frozen vegetables, snacks, frozen
breads and ready to eat curries, and is targeted at the Indian diaspora. Besides Ashoka, it has other brands like Camel
(premium brand for Middle-East-style pickles and spices) and Aeroplane (economy brand of Indian pickles and
chutneys).
• The company recently ventured into the Indian markets with a brand called Soul, targeted at the health conscious. Its
current products are olive-oil-based pickles and RTE vegetables. While Soul is currently being test marketed, the
management is increasingly focusing on the domestic market, and we expect a spate of new launches. Our sense is
that revenues from India will move up to 30-40% over the next 4-5 years from 5% now.
• While the focus of the company has largely been traditional Indian food for the Indian diaspora, the company is also
foraying into new foods like hummus, pastas and Indian food customized for non-Indians (via the brand, Truly
Indian, which is low on spices).
• ADFL acquired Elena’s in September 2010 for an estimated US$15m. Elena’s is a US-based manufacturer of organic
and natural products of protein-based Mexican foods with revenues of ~US$10m in CY10. The acquisition allows ADF
to leverage Elena’s manufacturing facility and distribution setup in the US besides widening product range. Elena’s,
which had been making losses, has broken even at cash level in just a quarter since the acquisition. The management
expects to recover its entire investment in the next four years.
• The company currently has no debt and Rs250m cash on the books.
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