Distribution SBU

w w w. w a y c o o l . i n
Vision & Mission
Building the market-leading Agri-commerce platform in India
Fresh Produce
Our Vision
Meat Staples
Be the Most Efficient, Impactful and
Sustainable Agri-commerce Platform
Spices &
Dairy
Condiments

Packaged Products
Our Mission

To Build a Profitable and Capital Efficient, Broad line of offerings to become

indispensable to stakeholders
Billion Dollar Agri-commerce Platform that
Delivers Measurable Impact by 2027 Efficient, technology led, automated
supply chains

Resulting in increased income for disadvantaged groups and a sustainable environment

2
© Copyright 2019 | All Right Reserved | 2
 Guiding Principles

To have a distribution presence from Urban to Remotest of Rural Areas providing

Vision High Quality Food Products from Waycool Brands to people while becoming
partner of choice of FMCG Brands by providing Low-Cost Distribution

To Build an Omni Channel Distribution Network with aim of building credible

Mission
relations with 1 Lakh retail outlet by FY-22

FY22 Objective To create an INR 550 Cr turnover BU and contribute towards overall profitability
of the company

How we do it

Impactful
Planning Execution Review
Innovation

© Copyright 2019 | All Right Reserved | 3

Key Parameter Projections
Revenue Revenue Projections H1-22
Rs Cr
50
45 43.4986631402783

204 40
35
29.5484699313187
30
25.252845
25
135 20
14.730915312516.30021
15 12.607595 13
10
10 6 8 8
6
5 3.498
0.85 1.8525 0 1 1
0

July

July

May

July

May

July

July

July
May

May

May

May
June

June

June

June

June

June
April

April

April

April

April

April
August

August

August

August

August

August
September
September

September

September

September

September
TN North Greater Chennai Karnataka AP & Tel Kerala Distribution SBU
FY 21 FY 22

365 Revenue Projections H2-22 75.887843525171

80 8
70 56.838639297620
60 5
47.975824269453
50 5

40 25.890049520043
204
30 6 24
19.7162404848
17.008674 18
20 13 15
10 11 9.76125
10 4.4793 5.796 2 2 3
0

January
March

March

March
January

January

January

January

January
March

March

March
February

February

February

February

February

February
October

October

October

October

October

October
November

November
December

November

December
December

December

November

November
December

November
December
TN North Greater Chennai Karnataka AP & Tel Kerala Distribution SBU

© Copyright 2019 | All Right Reserved | 4

H1 22 H2 22
Key Parameter projections
Average Business Value Average Business Value
Rs 18000
11359 16032 16250
16000 15135 15000
14000
11760 12057
12000 11000 11360
9516 10025
10000 8681.47273046428 9080
7185 7941.08001435235
7926.15342867016 7587 7650
8000 7185
6212.43746180707 5994
6000
4000
2000
0

July

July

July

July

January
May

January

May

January

May

January

May
July

January

May
March

March
September

September
November

September
November

September
November

September
March

March

March
Mar'21

Mar'21

Mar'21
November

November
Mar'21

Mar'21
TN North Greater Chennai Karnataka AP & Tel Distribution SBU
FY 21 FY 22

Kerala is targeting an ABV of Rs. 3,00,000 per Distributor for Waycool Products
No of Customers
No of Customers
45861 50000 45861
45000
40000 35100
35000
29506
30000
25000 18987.171583641
6 18670
20000
14082 15751
15000 11563.7513219.76 11162
10000 8671.9645
4800 5026 6221 5728 4902
18670
50003678 592.385 1980
2772
0
January

January
July

January

January

July

January
March

March
May

May
July

May
July

May
July

May
November

November

November

November
March

March

March
Mar'21

Mar'21

Mar'21
September

September

September

September

September
November
Mar'21

Mar'21
TN North Greater Chennai Karnataka AP & Tel Distribution SBU
FY 21 FY 22 © Copyright 2019 | All Right Reserved | 5
 Key Parameter Projections – Cross Selling
Cross Selling % Cross Sold Outlets
Mar'22 10257
Feb'22 9780
39%
Jan'22 9514
Dec'21 9040
Nov'21 8071
Oct'21 6808
Sep'21 5897
Aug'21 4670
July'21 3601
June'21 2530
7% May'21 1719
Apr'21 1130
Mar'21 843
Feb' 21 FY 22 Target of 55% Cross Selling in Possible Stores (70% of Branded Distribution Stores)
Total Unique Stores Billed for Distributed Brands Mar’22 =26,640 & 70% of that = 18,648
Chennai Cross Selling Karnataka Cross Selling AP & Telangana Cross Selling TN North Cross Selling
4500 4037 4037 3500 2000 1600
2992 1473 1473
4000 3670 3000 2735 1756
1800 1400
3500 1600 1189
2500 2242 1200
3000 2572 1400 1271 1043
2500 2000 1000
1590 1200
2000 1660 1500 970
1000 800
1500 908 630
1000 800 693 600
1000 643 534
500
492 500 398 600 404 400
368
400
0 0 175 200 152
1 1 1 1 1 2 2 1 1 1 1 1 2 2 200 58
r'2 y'2 l' 2
ep
'2 v'2 an
'2 r'2 r'2 y'2 l' 2
ep
'2 v'2 an
'2 r'2 0 0
M
a
M
a Ju S N o J M
a
M
a
M
a Ju S N o J M
a Mar'21May'21 Jul'21 Sep'21 Nov'21 Jan'22 Mar'22 Mar'21 May'21 Jul'21 Sep'21 Nov'21 Jan'22 Mar'22

© Copyright 2019 | All Right Reserved | 6

Done till This Slide

© Copyright 2019 | All Right Reserved | 7

Key overall performance projections
Revenue Revenue # of clients Tonnage
Rs Ct Rs Cr (000) (000)

550
74.3 57.0
10.3
49.9
59.6
42.3 8.0
50.4
37.4
33.8 6.8
40.9
33.6 28.0 5.5
4.6
25.9
3.6
135

FY21 FY22 P May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22

GM CM 1 CM 2 CM 3
% % %
%
6.3 2.3
8.0 1.9
5.3 5.5
5.1 -0.7 -0.7
6.3 4.6 1.2
4.1 0.9
5.0 -1.7
-2.0
3.8
2.9
2.0 -0.2
-3.5
-0.9
-4.3
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22

© Copyright 2019 | All Right Reserved | 8

Zone wise split of performance projection
Revenue # of clients GM CM 3
Rs Cr (000) % %
TN North (% of total revenue) 7.9
8.3
100.0 7.5
6.3 6.7
78.3 5.7
5.1
59.3 7.1 7.1 7.1
7.0 7.0
41.8
25.7
11.5 -0.3 -0.3 -0.3

May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 -0.4 -0.4 -0.4
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22
17.2 7.0 7.0 7.1
Karnataka (% of total revenue) 100.0
14.4
15.9 6.9
-1.4
13.4 6.6
73.6 11.7 -2.6
8.4 -3.5
51.1 6.2 -4.4
32.4
17.7 -6.0
6.9
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 21 -8.5
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 7.9 7.9
Telangana (% of total revenue) 100.0 7,410.0
7.8 7.8
73.7 5,500.0
51.1 4,158.0 7.7 7.7
-0.1
32.4 2,558.0 3,023.0
17.7 1,563.0 -0.1
6.9
-0.2 -0.2 -0.2
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22 -0.2
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22

Greater Chennai (% of total 6.5 6.8 0.3

100.0 24.7 6.1
revenue) 18.5
21.3 5.0 5.3 5.8
74.6 15.1 -0.1
12.3 13.9 -0.3
54.7
38.0 -0.7
23.9 -1.0
10.9
-1.6
May 21 Jul 21 Sep 21 Nov 21 Jan 21 Mar 21 May 21 Jul 21 Sep 21 Nov 21 Jan 21 Mar 21
May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22
© Copyright 2019 | All Right Reserved | 9
Sales
projections
 Revenue growth snapshot

Revenue

A Customer base expansion B Value per customer

maximization
Existing regions New regions 1 Average order value (‘000)
4.8
4.6
# clusters Retailers/ clusters # customers 4.4
4.5
# regions Retailers/ region # customers 4.2
4.0

1 Karnataka 3 4166 12500 Karnataka (South) 4166 12500

May 21 Jul 21 Sep 21 Nov 21 Jan 22 Mar 22

2 Hyderabad 9 768 6910 Vijaywada 500 500

2 Cross selling

3 Tamil Nadu 6 1388 8300

4 Chennai 8 1784 14269

Total 41979 Total 13000 © Copyright 2019 | All Rights Reserved | 11

1 AP & Telangana Customer growth

A Existing regions
FY21 Actuals FY22 Target
Cluster name Customer segment Retailers (#) Sales (Rs Cr) Cross sell% GM% Retailers (#) Sales (Rs Cr) Cross sell% GM%

Kukatpally GT Retailers Sales Cross sell(%) GM% Retailers Sales Cross sell(%)
GM%
2800 1.59 6% 19000 54 7%

B New regions
Region name Customer segment # clusters Retailers (#) Sales (Rs Cr) Cross sell% GM%
Telangana
Kukatpally GT Telangana 15349 54 7%
Ramanthapur GT
Yousufguda GT AP 3651
Mehdipatnam GT
Alwal GT
Domalguda GT
BN Reddy nagar GT
Chandanagar GT
AP
Vijayawada GT © Copyright 2019 | All Rights Reserved | 12
1 AP & Telangana New region entry strategy

Source of growth
Retail Channel

Wholesale
Channel FOCUS AREAS

SAMT/
Alternative
Retail Growth
channel
Wholesale penetration

SAMT/Alternative channel
ENABLERS
Distribution of
Way cool brands Productivity/
FMCG brand Manday loss
contribution Throughput
(Cross Selling)

Target food
SKU Focus pricing Activation/Loyalty
wholesalers

Need to scale up standalone outlets in hyderabad city

© Copyright 2019 | All Rights Reserved | 13

1 Kerala New region Entry Strategy

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

ASM 2 0 0 0 0 0 0 0 0 0 0 0

SO 2 1 1 1 1 1 1 1 1 1

ISR 4 2 2 2 2 2 2 3 3 3 3

• In each District, we will appoint 6-8 Distributors for our Waycool Brands.
Every District will have 1 SO having a salary of Rs. 25K-30K, 2 ISRs having a
salary of Rs. 15K-18K.

• Kerela will be divided into two regions, North and South, with each region
having 1 ASM, drawing a salary of Rs. 45K-50K.

• Each ASM will have 7 districts, having 7 SOs and 14 ISRs.

• Avg. Business volume from each distributor will be around Rs. 3 Lakh

© Copyright 2019 | All Right Reserved | 14

 Kerala Revenue Projections

Apr'21 May'21 Jun'21 Jul'21 Aug'21 Sep'21 Oct'21 Nov'21 Dec'21 Jan'22 Feb'22 Mar'22

Revenue 16 26.4 45 66 90 100 180 200 225 249 270 270

(in Rs.
Lakhs)

No. of 16 22 30 37 45 52 60 68 75 83 90 90
Distributors

No. of 2 2 2 2 2 2 3 3 3 3 3 3
Bills/Distr.

ABV 50 60 75 90 100 100 100 100 100 100 100 100

( in Rs.
Thousands)

© Copyright 2019 | All Rights Reserved | 15

1 TN North Customer growth

A Existing regions
FY21 Actuals FY22 Target
Cluster Name Customer Segment Retailers Sales (Rs Cr.) Cross Sell% GM% Retailers Sales (Rs Cr.) Cross Sell% GM%
Padappai GT 1557 23 25% 11.00% GT 43.2 70% 6.9%
KPM GT 1393 6 30% 11.00% 2900 19.9 70% 8.6%
CBE GT 759 10.3 19% 6.00% 1450 19.2 60% 7.4%
SLM GT 188 6.2 9% 300 11.2 8.1%
Tirupur GT 111 0.32 12.20% 450 5.5 6.7%

Sub total 45 99

B New regions
Region Name Channel Segment Clusters Retailers Sales (Rs Cr.) GM%
Vellore GT Vellore 575 17.8 6.3%
6.0%

© Copyright 2019 | All Rights Reserved | 16

1 TN North Strategy

Revenue Projection: Path to Rs. 1 Cr per month per DC

TN North Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total
1 Padappai 2.4 2.7 2.9 3.0 3.2 3.3 3.5 3.6 3.8 3.9 4.2 4.3 4.8 43.2
2 Kanchipuram 1.1 1.1 1.2 1.3 1.3 1.4 1.5 1.6 1.7 1.8 1.9 2.4 3.0 20.2
3 Vellore 1.1 1.2 1.4 1.4 1.4 1.4 1.6 1.6 1.6 1.6 1.6 1.6 17.5
4 Salem 0.7 0.9 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.0 1.1 11.7
5 Coimbatore 0.7 1.1 1.2 1.3 1.5 1.6 1.6 1.7 1.8 1.8 1.9 2.0 2.0 19.4
6 Tiruppur 0.3 0.3 0.3 0.4 0.4 0.4 0.4 0.5 0.5 0.5 0.5 0.6 0.6 5.4
7 Cuddalore 0.3 0.3 0.3 0.3 0.3 0.3 1.6
5.2 7.2 7.8 8.3 8.8 9.0 9.4 10.2 10.6 10.9 11.4 12.2 13.4 118.9

Distributed Processor
Region Madhuram Dhaanya Kitchenji Svaadish Freshey's Brands Items Total
TN North 21.5 10.2 8.2 1.3 7.1 60.3 10.4 119.00

© Copyright 2019 | All Rights Reserved | 17

1 Greater Chennai Customer growth

A Existing regions
FY21 Actuals FY22 Target
Cluster Name Customer Segment Retailers Sales (Rs Cr.) Cross Sell% GM% Retailers Sales (Rs Cr.) Cross Sell% GM%
Chrompet GT 1185 22.98 0.50% 2685 100.15 60% 2%
Virugumbakkam GT 2400 11.48 17.2% 5.07% 3800 29.82 60% 7%
Nolambur GT 1900 4.46 21.8% 5.50% 5900 32.68 60% 5%
Gumudipundi GT 2400 4.8 17.7% 13% 5900 32.64 60% 5%
Kotivakkam GT 287 0.74 12.20% 2050 12.2 100% 8%
Kovilanchery GT 367 2.45 4.90% 1950 11.55 100% 8%

Sub total 46.91 219

B New regions

Region Name Channel Segment Clusters Retailers Sales (Rs Cr.) GM%
Perambur GT Mylapore 1150 4.4 7%
Perambur GT Perambur 1319 3.42 7%

XXX
XXX © Copyright 2019 | All Rights Reserved | 18
1 Greater Chennai Strategy

Revenue Projection: Path to Rs. 1 Cr per month per DC

Chennai Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Total
1 VGM 1.2 1.7 1.9 2.0 2.1 2.2 2.3 2.5 2.6 2.8 3.0 3.2 3.5 28.2
2 Kottivakkam 0.1 0.6 0.6 0.7 0.7 0.7 0.8 0.9 1.1 1.2 1.4 1.8 2.2 12.1
3 Kovilanchery 0.2 0.5 0.5 0.6 0.6 0.6 0.7 0.8 1.0 1.1 1.3 1.7 2.1 11.0
4 Ambattur 0.8 1.4 1.7 2.1 2.3 2.2 2.3 2.5 3.0 3.2 3.5 3.9 4.5 31.1
5 Gummidipoondi 1.2 1.3 1.6 2.1 2.3 2.2 2.3 2.4 3.1 3.2 3.5 3.9 4.5 31.1
6 Chromepet 3.0 3.4 3.4 3.5 3.6 3.7 3.8 3.9 4.1 4.2 4.4 4.6 4.8 44.0
7 Mylapore 0.2 0.2 0.3 0.3 0.4 0.5 0.6 0.8 1.0 4.4
8 Perambur 0.2 0.3 0.4 0.4 0.6 0.7 0.9 3.4
6.4 8.7 9.8 11.0 11.8 11.9 12.7 13.5 15.6 16.6 18.3 20.6 23.5 165.2
LSP 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 4.4 57.2
10.8 13.1 14.2 15.4 16.2 16.3 17.1 17.9 20.0 21.0 22.7 25.0 27.9 222.4

Distributed Processor
Region Madhuram Dhaanya Kitchenji Svaadish Freshey's Brands Items Total

Greater
Chennai 26.6 12.6 10.1 1.6 8.8 81.6 23.9 165.20

© Copyright 2019 | All Rights Reserved | 19

Target: 25000 Customers to be Onboarded

8000 Current Rapid Onboarding 25000 Customers to be

Customers of SE and Ops Onboarded

Conversion
Rate
Increasing
6 Accessibility Sales Man 2
productivity
Target for
25000 K
Outlet

5 Availability Pricing 3

Buying Pattern

4
© Copyright 2019 | All Rights Reserved | 20
 Beat Plan Efficiency – CTQ Tree

Beat Plan Efficiency

Robust Logic Role of Sales Executive

Targeting Right Targeting Right Plan Generation and DSE-Customer Enhanced

Process Knowledge Process Discipline
Customers Product Beat re-evaluation Mapping Motivation
and Adherence

© Copyright 2019 | All Rights Reserved | 21

1 Karnataka Customer growth

A Existing regions
FY21 Actuals FY22 Target
Cluster name Customer segment Retailers (#) Sales (Rs Cr) Cross sell% GM% Retailers (#) Sales (Rs Cr) Cross sell% GM%

Blr North General Trade 3012 Rs. 14.3 Cr 24% 4.47% 4000 Rs. 34 Cr 75% 6.34%
5163 Rs. 20 Cr 2% 4.2% 7000 Rs. 42 Cr 25% 7%
Blr South General Trade
1933 Rs. 0.4 Cr 0% 8% 4000 Rs. 32 Cr 60% 6.24%
Blr West General Trade

B New regions
Region name Customer segment # clusters Retailers (#) Sales (Rs Cr) Cross sell% GM%

Blr Upcountry General Trade Blr Upcountry 9000 Rs. 23 Cr 70% 6.34%
Rs. 23 Cr 70% 7%
Mysore General Trade Mysore 8750
Rs. 11 Cr 70% 6.24%
Mangalore General Trade Mangalore 6875

© Copyright 2019 | All Rights Reserved | 22

1 Karnataka Expansion Plan

Kolar Kodagu
Yesvantpur Chikballapur Mandya Chikmagalur

Apr’21 May’21 Jun’21 Jul’21 Aug’21 Sep’21 Oct’21 Nov’21 Dec’21

HSR Layout Ramnagara Chamrajnagara

Mysore Tumkur
Chamrajpet Mangalore Haasan

Cluster No of DCs DCs

Blr North 3 Mahadevpura, Banaswadi, Yelahanka
Blr South 4 BGDC, HSR, Jigani, Yelachenahalli
Blr West 3 Yesvantpur, Chamrajpet, Kengeri
Blr Outskrits 4 Chikballapur, Kolar, Tumkur, Ramanagara
Mysore 4 Mysore, Kodagu, Mandya, Chamrajanagara
Mangalore 3 Mangalore, Chikmagaluru, Haasan
Total 21 © Copyright 2019 | All Rights Reserved | 23
 Bangalore GT is targeting to improve the topline to achieve 1Cr monthly revenue for each DC by FY
2021-22
Bangalore Dry Mini DC FY 21-22 Revenues * All values in lacs INR
Bran
ds 1015
951 977 987 70% of the revenue is
885 924 490
803
852 459 471 485 487 planned from the own
440
732 395
422 brands and 30% of
643 349 the same from
554 274
496 distributed brands. In
426 199
391 146 case of Bannerghatta
106
77 and Banaswadi, brand
sales is >1 cr already
314 320 350 355 369 383 408 430 445 465 480 492 500 525
Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22

* All values in lacs INR Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22
Banaswadi Staples 18.8 24 29 37 46 57 60 62 63 65 67 70 70 70
Banaswadi Gold Winner 130 135 140 140 145 145 150 155 155 160 160 160 160 160
Bannerghatta Staples 8.6 13 19 25 33 43 55 61 63 65 67 70 70 70
Except Banaswadi
Bannerghatta Marico 160 160 165 165 165 170 175 180 185 185 190 190 195 200
Jigani Staples 5 8 11 17 25 38 46 55 60 62 63 65 67 70 and Bangalore,
Jigani Brands 5 10 12 15 18 20 22 25 30 30 30 30 30 30 brands will contribute
Kengeri Staples 9.2 14 21 31 47 57 60 62 63 65 67 70 70 70 to 30 crs. For each
Kengeri Brands 5 10 12 15 18 20 22 25 30 30 30 30 30 30 DC, a brand will be
Mahadevapura Staples 6 9 14 20 30 46 50 55 61 67 70 70 70 70
added.
Mahadevapura Tata Salt 24 25 27 28 30 32 35 35 37 40 42 42 45 45
Yelahanka Staples 8 12 18 27 41 51 60 62 63 65 67 70 70 70
Yelahanka Brands 5 10 12 15 18 20 22 25 30 30 30 30 30 30
Yelchenhalli Staples 21.6 27 34 42 53 58 64 65 67 70 70 70 70 70
Yelchenhalli Brands 5 10 12 15 18 20 22 25 30 30 30 30 30 30
Ensuring compliance sales through systems and then problem solving for high potential customers will
help in increase own brands sale from 77 lacs/month to 4.9 Crs/month

Target Achievement Milestones * All values in lacs INR

Brands Staples

490

367

122
77
525
350 400
302

Feb-21 Net Sales per salesmen 10K Net Sales per salesmen 30K Net Sales per salesmen 40K

By Apr-21 By Jul-21 By Mar 22

Salesmen in the system for 2 Through problem solving for Through increasing counter share for
months are expected to achieve high potential customers , SEs high potential customers , SEs will
compliance sale of 10K per day will achieve sale of 30K per day achieve sale of 40K per day

Targeted high potential customer conversion : Daily visit plan for focused customers has been planned. Issues related to products will be discussed
on review meetings and innovative solutions to convert them will be thought about.
Strategic plan for each region

Increasing Distribution Depth in Chennai by targeting 25,000 Stores for

Tamilnadu selling CPG Products
Establish Presence at Vellore by opening new DC and starting with selling
Distributed Brands (ITC and Nestle)

Increasing Distributed Brand Sales by direct procuring from either Brand or

Karnataka C&C Stores and ensuring our existing Distributed Brands are sold across all
clusters

The Strategy is to start with focus in Numeric Distribution and then focus
Telangana
on Weighted Distribution as regions grows

To ensure penetration across entire state by appointing 6-8 Distributors

Kerala
every month

© Copyright 2019 | All Rights Reserved | 26

Operational
e f fi c i e n c y
 CM 1 cost optimization

CM1 Cost (% of Rev)

Cost heads Cost optimization Levers

4.2 %

Handling cost Quality check & Packing at the Source

8.3

1.66% Dump Ensure FIFO, Stock rotation between DCs, LND to Brand
5.6

2.5
4.1 0.9
1.4
2.1 2.3

FY21 FY22
Karnataka Greater Chennai TN North
AP & Telangana

© Copyright 2019 | All Right Reserved | 28

 CM 2 Cost Optimization

CM2 Cost (% of Rev) Cost heads Cost optimization Levers

7.85 %
Tech led ordering : Target to achieve min 20% for orders through customer
app & Telecalling
SE Cost
17.7
SE cost : Ensure Discipline, efficient reviews, Motivate with incentives

6.9
Route Optimization : Increase Vehicle utilization from 40km per trip to 55km
6.7 4.42 % Outbound per trip
Logistics

2.5
Pilot 2-Wheeler EV Vehicle for delivery (low volume high value SKU)
9.7 0.9
1.4
2.3
FY21 FY22 Delivery Cost
Karnataka Greater Chennai TN North Driver cum Delivery : Reduction of Rs. 250 per Trip
AP & Telangana

© Copyright 2019 | All Right Reserved | 29

 Operating cost optimization

Cost heads Cost optimization Levers

Regions

Outbound In Chrompet we will be implementing the conveyor system for route

logistics Greater Chennai
optimization – Rs. 60k pm will be saved towards 4 manpower

Reducing We will be moving from existing 6k sq ft Godown to 11k sq ft in

Warehouse Gumidipundi – rental cost will be reduced from Rs. 23/sq ft to Rs. 13/sq ft. Greater Chennai
Rental Cost In addition, the vehicle utilization will be doubled due to nearness to the
market & this will help to ensure supplies within 2 hours of order taken

Implemented Initiated running 2-Wheeler EV Vehicle with cost per day Rs. 1,800 and
Greater Chennai,
delivery thro doing 40 deliveries in 2 shifts. We will be scaling this upto 60 deliveries very Bangalore
EV 2 Wheelers soon. Also, the 2-wheeler drivers handle the sales returns too. Earlier, with
4-Wheeler EV Vehicle the cost per day was Rs. 1,800 with only 20 deliveries.

© Copyright 2019 | All Right Reserved | 30

Working capital
Receivable days

TN North

• 20% of Receivable through Digital Lending

29 27 24 21 20 (will also increase the productivity of the
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22
SEs as well

Karnataka • Cash on Delivery for Own Brand for B & C

outlets
18 17 15 14 12
• SE Incentives for collection within 7 Days
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22

Greater Chennai • Working with Cash collection outlets

(NovoPay Outlets) improves working
27 25 24 23 22 capital by 1day.

Mar-21 Jun-21 Sep-21 Dec-21 Mar 22 • Promotion of UPI payment (1% discount,
AP & Tel not applicable for Low Margin products
like sugar & Oil)
30 29 27 26 24

Mar-21 Jun-21 Sep-21 Dec-21 Mar 22 © Copyright 2019 | All Right Reserved | 32
Payable days

TN North

6
3 3 3 4 • Digital Lending on the payables front will
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22
give 14 days credit, wherein
vendors/Brands will get paid on the same
Karnataka day

8
6 5 4 4

Mar-21 Jun-21 Sep-21 Dec-21 Mar 22

Greater Chennai

5 5 6
3 3

Mar-21 Jun-21 Sep-21 Dec-21 Mar 22

AP & Tel

7 8 8
6
4

Mar-21 Jun-21 Sep-21 Dec-21 Mar 22 © Copyright 2019 | All Right Reserved | 33
Infrastructure
requirement
 DC requirement
1MDC 2 MDC 2 MDC
Rs 0.2 Cr. Rs 0.4 Cr. Rs 0.4 Cr.
TN North / Greater
1
Chennai

Mar-21 Q1FY22 Q2FY22 Q3FY22 Q4FY22

4 MDCs 4 MDCs 6 MDCs

Rs. 0.8 Cr Rs. 0.8 Cr Rs. 1.2 Cr

2 Karnataka

Mar-21 Q1FY22 Q2FY22 Q3FY22 Q4FY22

3 MDC 3 MDC 3 MDC

Rs. 0.6 Cr Rs. O.6 Cr Rs. 0.6 Cr

3 Telangana

Mar-21 Q1FY22 Q2FY22 Q3FY22 Q4FY22

© Copyright 2019 | All Rights Reserved | 35

Capex (RS Crs) Key locations added
Key projects plan

Description Capex (Rs cr) Estd benefit Completion month

Initiative

Space utilization Vertical Racks for efficient space Rs. 0.05 Cr 20% increase in June – Aug 2021
1
utilization Revenue

2 Wholesale C&C Store Open Wholesale C&C within existing Rs. 0.05 Cr Rs. 30 Lacs of June – Aug 2021
(Chennai, Blr) DC to sell both Branded and CPG Business Expected
Products
3 Ready Stock Van Low Volume & High Value SKU Sales Rs. 0.05 Cr Rs. 12.5 Lacs of Apr – May 2021
Sales via Van Sales Business expected

© Copyright 2019 | All Rights Reserved | 36

Organization
structure
Organization structure for the Regional Businesses

Zonal Head

Divisional Manager

Operations Finance
Cluster Head PMO/BA
Head Controller
Finance
team
ASM/DC Head/TL Quality MIS

HR

Sales Backend Admin

Force Ops

IT
© Copyright 2019 | All Rights Reserved | 38
Organization structure for the Kerala Regional Businesses

Regional Head

ASM ASM Sales Call Centre

North Kerala South Kerala coordinator

7 Sales officers
7 Sales officers

14 ISR 14 ISR

© Copyright 2019 | All Rights Reserved | 39

 Key Challenges faced by Regions

• HR
• Sourcing of right candidates
• Interviewing the candidates in timely manner
• Finalizing the offer to candidate within 2-3 days
• Issuing offer letter to candidate within 1-2 days after finalizing offer with candidate
• Admin
• Timely identification of right place for setting up mini-DC
• Delay in negotiating and closing the identified place
• IT
• Huge delay in setting up IT infrastructure after finalizing the place for mini-DC
• Huge delay in setting up internet connection even after DC is functioning
• No defined turn around time for completing IT related work
• 3 months lead time for laptop request
• Operations
• Accountability for ensuring stock availability not completely taken (Lot of involvement of DC heads)
• Stock replenishment not happening in a timely manner
• Finance
• Daily closing of books in each DC
• Money paid but not accounted for by finance leads to loss of sale
• Delay in approving increase for credit limit © Copyright 2019 | All Rights Reserved | 40
Building the future of food.

41
Inventory days (By product category) (Note: Inventory held only by channels to be added; inventory held by
product team to be excluded )

Product category A

31 Explanation for inventory

23 24
8 8 optimization
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22
Product category B

31 23 24
8 8
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22
Product category C

31 23 24
8 8
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22

Product category D

31 23 24
8 8
Mar-21 Jun-21 Sep-21 Dec-21 Mar 22

© Copyright 2019 | All Right Reserved | 42