Thread by @tycoonmindset05

#TataConsumer Concall today at 2:00pm!
We would be providing live updates and key highlights of the Conference call.
Stay tuned.😀

@unseenvalue @dmuthuk @safiranand @adi2five @stockifi_Invest @Prashantjaju @FUSION_Charts

#TataConsumer
Among Top 10 branded tea companies in India.

Decent quarter with volume growth across all businesses despite of lock down issues

Completed acquisition of pepsico nourish.

#TataConsumer
Commodities will be a big watch out and could face concerns in the coming quarter relating to supply chains.

Engaged with govt bodies to taper the negative effects of supply chain.

Adopted digital marketing more from this quarter.

#TataConsumer
Blockchain and Digital payment was adopted to continue contactless payment with end to end encryption. (esp in Starbucks)

Tea prices in India continues to rise with significant growth in May and June.
Tata Sampan & himlayan continued to deliver good growth.

#TataConsumer #Starbucks:
Opened in Luckonw and now in 12 cities. However volumes decline due to lockdown.
60% of the stores open.
Worked on Rental renovation.
Worked more with the digital marketing.
UK market share has been maintained.

#TataConsumer
Vietnam location running at 90% capacity.
Russia and Europe revenues are expected to get back to normal in the coming quarter.

Company had a Market Share gain this quarter.
Strong business growth - growth in volumes with #tatasampan growth of >50%.

#TataConsumer
Working upon better product mix with better pricing.
Crop shortage and crop loss affected the business.
Company is also trying to unlock synergies via M&A.

#Covid - company has well adapted with lockdown issues.
Pantry loading impact got normalized.

#Tataconsumer
Growth Contribution: Price improving with improved Product mix coupled with increasing Premium products volumes.

Market share gain from most of the operators & pricing - commodity cost increase has been passed on to customers with maintained margins.

#TataConsumer Indian margins were at tailwind yet Tea prices can be a critical factor: Prices remain volatile due to crop availability however company is trying to maintain the balance with drive in volumes.
Outlook: Normalized crop availability by aug-sep with stable tea prices.

#TataConsumer
Focusing on Direct Distribution for Tata Sampan.

Overall focus on to reduce real time distribution in supply chain by reducing the layers of distribution chain to become more agile.(Trying to connect directly to stockist rather than to consignee)

#TataConsumer
Tata Q lauched by tata industries who are into packaged food and Tata industries normally incubate business.

Company thinking to associate with #Relaince #Jiomart to connect with Kiranas and scale the products.

#TataConsumer
Company is confident to grow business positively in future with key focus on digitization and detailed analysis of buyers and distributors.

Company has no urgency to pay down debt.
Good CFO with maintained working capital funding even with volatile tea prices.

#TataConsumer
There are changes related to farm produce in India,
Company's most of the raw materials are farm produce. Company is still analyzing the changes to take utmost benefit.

#TataConsumer
Closure:
- Company had a good quarter with strong growth in volumes due to pantry loading and increased pricing.
- However there are crop availability issues resulting in volatile pricing which company expects to normalize soon.

#TataConsumer
Closure continued:
- Company expects Tata Sampan to have high potent.
- Growth in all businesses would drive ROCE higher in medium term future.

#TataConsumer
Closure continued:
- Company has a vision to become a full fledged FMCG player for which they are analyzing customers for better mix of products and prices.
- Key focus is on reducing supply chain gaps, digitization, product scalability.