Thread by @FinterestC

We have heard about Tata Consumers as a leading Food & Beverage company in India, right?
The company is not only famous in India, but a highly recognized International brand as well.

It is the second most branded tea player in the world.
Let us know more about the company.

1)Company Overview
It is focused to unite the principal food & beverage consumer products under one umbrella of the Tata Group. Major beverage brands-Tata Tea, Tata Coffee Grand, Himalayan Natural Mineral Water. Product portfolio: tea, coffee, water, salt, spices, ready to eat.

2)Operational Highlights
India:
In Q1 FY22, TCPL has gained a market share of more than 170 bps in the Tea segment and over 370 bps in Salt.
E-commerce recorded a solid 153% YoY growth and accounted for 7.3% of the sales in the domestic market in Q1 FY22.

3)The institutional channel also witnessed a significant growth of 144% (YoY) in Q1 FY22.The India Foods business recorded a 17% volume growth, despite a high base within the quarter. Tata Sampann delivered a 12% growth, due to pantry loading, making the 2-year CAGR figure to 30%

4)NourishCo witnessed a strong growth momentum, with a 91% revenue growth on standalone basis. Tata Water Plus demonstrated an exceptional growth, and Himalayan Natural Mineral water witnessed a good traction on e-commerce and modern trade channels during Q1 FY22.

5)Tata Starbucks (Joint Venture):
Tata Starbucks recorded an exceptional growth of 371% in revenue in Q1 FY22, on a depressed base of the previous year, which was impacted by lockdown.

6)While April and May 2021, got affected due to localized lockdowns, June, 2021, witnessed a V-shaped recovery with liberal lockdown restrictions. Delivery contribution saw a hike of 27%, due to several initiatives focused to offset the decline in dine-in.

7)International Business: During the quarter, the business growth of international beverages was impacted due to pantry loading in the base quarter previous year.
Tetley continued to grow its share in the fruit and herbal category in the UK.

8)Teapings, super premium tea brand of the company witnessed a robust growth in the quarter, owing to recovery in specialty Out Of Home (OOH) consumption and grocery channels.

9)Financial Performance
The revenue from operations of the company increased as compared to corresponding quarter of the previous year, primarily driven by 28% growth in India beverages and 20% growth in India Foods.

10)International business showed lower revenue as last year had Covid induced pantry stocking. EBITDA margin for Q1 FY22 was up by 300 bps QoQ, but down by 452 bps YoY, due to rise in Advertisement and Promotion spends by 53% YoY & low cost inventory of tea in the base quarter.

11)Growth Prospects
TCPL is on a track for a direct reach of 1 mn outlets by Sept, 2021. Reach in the rural areas has been strengthened with more than 3,000 rural distributors on board.
Tata Consumer Soulfull is expected to enable a scale up in reach.

12)Gopalpur Industrial Park by Tata Steel Special Economic Zone is the largest tea packaging plant which has been recently inaugurated. It is expected to be a key hub in Tata Consumer’s supply chain network.

13)With the prevailing distribution, and innovation plans, momentum is expected to continue in Indian Food Business.
The international markets in US, UK, Canada are experiencing a return to pre-Covid demand trends of packaged tea and coffee categories.

14)With an increase in mobility, the company is expected to witness improving trends in Starbucks and a further acceleration in NourishCo business.

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