• During the year under review, total revenue of your Company increased from Rs.14,224 lakhs to Rs. 17,639 lakhs, an increase of 24% over the previous year. The profit after tax for the year stood at Rs. 830.41 lakhs against Rs. 892.59 lakhs in the previous year. Further in connection with strengthening of fruit processing business, the Company has started the commercial production of HPP (High Pressure processing) fruit and vegetable juices and initially the product has been launched in Pune and Mumbai.
  • The worldwide consumption of fresh grapes has reached 24.1 million tons. China is the largest consumer, followed by India and the United States. Brazil is considered an important consumer in the Latin American region. The grape consumption is not only on the rise in these traditional markets but there is clearly growing interest in this fruit in Southeast Asian markets like Thailand, Hong Kong, and Malaysia. Assuming a continued trend, it is estimated that seedless grape varieties will be in the greater demand from traditional consumers, such as Europe and the United States. There are also good growth expectations for upcoming grape season, especially to the Asian market, with emphasis on China and Russia.
  • Gradually but progressively, pomegranates arils are attracting interest, now that consumers worldwide see the pomegranate arils as a “super fruit” due to its high nutritional value and health benefits.
  • As consumers’ preferences shift to healthier products, owing to changing lifestyle and rise in disposable income levels, companies should look at offering a greater number of nutritional foods and beverages. In addition, better preserving and packaging techniques need to be developed that not only increase the shelf life but also improve the nutritive value of the processed food and beverages.
  • Exports of Fresh Grapes had a good start this year with the early arrival of the fruit and strong demand from the traditional markets such as European Union and Russia. The season started earlier by a couple of weeks in mid-January. India has been attempting to make inroads into new export markets such as China, Russia, Indonesia and Saudi Arabia. These countries have now decided to come up with norms for Indian grapes. Some of the norms are stricter than those set by the European Union. Next year onwards, the government has decided to issue certificates to exporters to these nations as well, such that exports do not face any hurdles.
  • INTRODUCING SECOND NATURE- B2C PRODUCT: “SECOND-TO-TREE” these three words adequately summarize who we are and what we are about. We know that the best way to get the maximum nutrition and taste out of most fruits is when you pluck them from the tree and have them. We believe, the second best is our way. And we have gone to great lengths to ensure that our customersget to relish nature’s bounty as nature intended it to be. It starts with building meaningful relationships with our farmers and cultivating them with education and inclusive growth. The seeds of this fruitful relationship that were sown over two decades back have been bearing fruits for a long time now. And it’s this long-standing inner circle of trust that helps us achieve our goal. Cold Pressed juices usually are hard pressed to come up with a difference. We are not cold pressed. We are one step better than cold pressed. We are Cold Extracted. Actually, Cold Vacuum Extracted to be precise. We don’t use heat or any form of pasteurization or concentrates in our products. We use a process of cold extraction which gently extracts the pulp from the fruits and vegetables along with the natural soluble fibers. While this is getting done in a reduced oxygen environment to minimize oxidation, vacuum is created to remove even the dissolved oxygen to ensure a longlasting retention of natural taste, flavor and nutrients. This specialized process does not use any bags or belts which can be quite cumbersome to clean. Our process allows us to retain far more fiber and avoid oxidation as compared to conventional pressing. We use the latest international technology called High Pressure Processing to maintain the quality of the juice. It allows us to protect, and at the same time pack in more natural flavors, colours and nutrients in every bottle.This technology applies pressure that is five times of what is found at the deepest end of the ocean. The pressure disrupts the microbial biochemistry of bacteria therefore lengthening shelf-life of the product. HPP is a natural environmentally friendly process that respects the ingredients and ensures retention of the original flavor and nutrition of the fruits, veggies and nuts.
  • The future for India’s fruit and vegetable business looks very bright as opportunities beckon in new export markets while aspirational Indian consumers drive demand for higher grade domestically grown produce and high-value imported fruits.India must develop new markets, particularly in Asia, and cut its dependence on Europe. Growth in food processing business is expected to stem from countries like India and China because of rising average incomes, westernized diet and strong domestic demand. After China, India is considered to be the second largest producer of fruits across the globe. 30-35% of the overall production is presently lost due to unskilled labor, inefficient cold storage facilities and spoilage at post- harvest stages.
  • Company pays very high remuneration to promoters.

Freshtrop Fruits Annual Report 2018

My view: If their newly launched premium cold extracted juices take off in a big way, this could become quite a story for both the promoters and shareholders. At a certain price, this could be a ‘Heads I win big, Tails I don’t lose much’ stock. Successful new products can be a great driver for growth in stock price. Whether ‘Second Nature’ succeeds or not is too early to tell though.

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