Recently Charlie Munger interviewed by Andy Serwer in influencers on asking about UBER (link shared by @bheeshma ) .
in that interview he mentioned Well, I have to be interested when they’re ( companies )that important and sweep the world and change practice. But I don’t have to invest in everything I’m interested in. I’m looking for things where I think I can predict what’s going to happen with a high degree of accuracy. And I have no feeling that I have the ability to do that with Uber.
So in context of TATA Global beverages it can change/ break the habit and can be global CUP for sipping other than COLD DRINK .The company is already ticking the right boxes at appropriate times Coupled with age OLD generation of testers THEY know the INDIA better than any TOM DICK HARRY .The Recent trends of healthy Cold Tea can add some Laurels .But When i don’t know …
a small effort of valuation tata global your raj.xls (225.5 KB)
VP are welcome to correct me
CAUTION
The stock is High PE / Low FCF / ( FCF/Sales ) is not consistently growing /
Disc : I am not sebi approved analyst ,This is not any sale or purchase recommendation Waiting on the sidelines it is in Watch list
This strategy would be good if only Tata Salt was there… Now sure if Tata Sampann has broken even yet! The quality is good from Consumers Standpoint though.
I don’t have idea of record date could some one ??? both scrip high more than 7% but i hold the horses to let the dust settle down .It gave another question TATA Chemical Vs TGB .which will offer better value … Is this is made calculative way (-1) *(-1) = +1… Eat BHAJIA with Coffee or DAL with Latte’’ I don’t know …
Small quick glance on fundamental data ( data from screener 0
Let see How the Things go from now …
Dis : I do not own the shares of both the companies .I am not SEBI research analyst .This not any stock recommendation for buy or sell or hold
No change in business untill synergies with tata chemical products will require atleast 2 years, prior to this they had bought tea company. Earlier was holding stock due to star bucks story.I think management is trying cook to many things at the same time. Today’s jump in price was only based on news event.
Sold all my shares at 280 levels, no holding as of now.
The merger between TGBL and Tata Consumer Products is proceeding as per schedule
Commodity prices continue to be benign
Black Tea is under stress while the fruit & herbal category has been doing well
The flagship brands in tea grew in high single digits
12 new Starbucks stores were opened in the last quarter and revenue growth was 26% yoy
The volume growth has been fairly good considering the market environment
Participants
Maybank
IIFL
Mukund Capital
MC Research
QnA
A significant part of the margin uptick is sustainable because this has been due to initiatives by management to reduce fixed costs and improve operational efficiencies
The rural market is under strain but the company has been progressing well on that front also
The management will announce the new CEO when they are ready
The company is focusing on bringing back growth in the company by focusing on business
The company is merging with consumer business of Tata Chemicals to get a complete portfolio of FMCG products
The rate of growth in Tata Starbucks has been faster than what China grew in the initial phases and both managements are happy with the current growth rate
Nourishco and Starbucks is at breakeven in terms of cash
Good to see that TCL innovation engine will remain with TCL only and not pass on to TGBL. I am really impressed by TCL new product launches rather than of TGBL so far. TGBL management is always boasting about global presence of company and yet again in this article when all they have done in decades is not anything meaningfully productive in terms of growth globally and lost the Indian race also in FMCG, they again talk about global presence
Really happy to see TCL innovation team will make products and TGBL will market. I wish they focus on India as real growth is back home. I wish that Global affinity goes away with their old name and they focus on huge consumer opportunity in India. Need to catch up on decades of lost growth!!
Disc: TGBL Part of core portfolio since many years.
Since you’ve been following this company for long, can you tell how much margin TCL is making on the Salts & the Sampann brands?
My hunch is that there are not much margins to be made on Tata Sampann staples [this is not valid for masalas or mixes], as they can’t price those too high as the competitions from unorganized or private labels are high. However, the OPM of TCL is on the gradual rise since the last few years, a part of which could be due to better mix of Tata Salt & Sampann products in their overall turnover. So, I’m asking. Never studied TCL.
I am holding and tracking TGBL and not TCL that closely. But Yes, I was always attracted to TCL because of innovative consumer products they used to come up with. Agreed the margins for staples will not be that much (pulses), although I think Salt enjoys decent margins and so would the Organic part of the Sampann portfolio like Organic Pulses and Spices.
We must note here that if Tatas walk the talk then these will be all insignificant categories in what they may come up in future…if they are serious about FMCG in India.
The Indian branded business grew by 8% YTD in volume terms
As part of ongoing restructuring the Czech business has been sold to Muller Pharma in January of 2020
The national brands in tea business are gaining market share
The integration of Dhunseri’s tea business has gone well along with the company’s brands
Have kick -started aggressive hyperlocal campaigns across specific states with multi regional content
28 new stores opened till date for Tata Starbucks with Vadodara as the new city
The effective data and record date for merger of Tata Chemical’s consumer business will be informed in due course of time
Participants
Morgan Stanley
Investec
Motilal Oswal
Maybank
Securities Investment Management
L&T Mutual Fund
Kotak Securities
Sharekhan
IIFL
QnA
Focus is on margin expansion in the international business and at the same time the company is taking initiatives to get growth through newer products as well
All the smaller business initiatives are under review for restructuring and a possible sale going forward
Continuing to focus on margin expansion for domestic tea business as well going forward
Have traditionally refrained from spending on the branded tea business but currently want to gain more market share and build more brand equity
Tata Starbucks JV continues to grow at 27% and remains EBITDA positive
There is still scope for better margins from a medium term objective as well as grow the business much faster than the current rate
Expecting tea prices to inch up higher and seeing some recovery going forward
Introducing new blends and products in 8’o clock coffee business and management believes volume growth loss can be brought back
Tata Consumer Products Limited (TCPL) announced today that it will
acquire PepsiCo’s stake in NourishCo Beverages Limited (NourishCo/Company), a 50:50 JV
between the two Companies. This move is consistent with Tata Consumer’s focus on widening
its portfolio in the Food and Beverages space.
Under an umbrella : Beat during monsoon or during summer or winter - they have them all…
StarBucks
Pepsico & Tata Tea beverages
Tata Consumer Products such as : Tata Salt, Tata Sampann
Mineral water : Himalayan
Retail Branches : Spread across globe and dominant in India
Star Hypermarket : Is a Tata enterprise retail store and have incorporated all products within the retail store to target customers with minimum 7% off everyday on MRP products
Company Description :
Tata Consumer Products is the 2nd largest branded tea company in the world and over 300 million servings of its beverage brands are consumed everyday across the globe.
Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand and Himalayan Natural Mineral Water.
Its foods portfolio includes brands such as Tata Salt and Tata Sampann.
In India, Tata Consumer Products has a reach of over 200 million households, giving it an unparalleled ability to leverage the Tata brand in consumer products. The Company has an annual turnover of more than INR 10,000 crore and employs more than 2,200 people in its branded
With having to see all these industry in majorly dominating the retail consumer needs…!!
But am not sure about the ongoing issue about Tata sons, any expert can help the board to give a limelight on that issue?
Star, Westside, Zudio and Landmark retail stores come under Trent Ltd. Star Bazaar always stock Tata Consumer’s products. Infact, some of the “Fabsta” private labels are manufactured by Tata Consumer products. Tatas are slowly and surely creating a strong coexistence yet to be seen anywhere in the world.
