I found a new product range from Tata consumer in Amazon. I did not read about its launch or saw any advertisement anywhere, so was a little surprised. Anyone aware of this range of product, when it was launched, how these are doing and future plan for the range? Also, are these only ecommerce focussed products? The range is called Tata Nx and currenty I see Protein and Stevia based sugarfree in this.
EDIT - Apparently these are old product range from Tata Chemicals. Not sure if they are with Tata Consumer now and how they are faring with consumers. Having said that, it is indeed an interesting segment to be in…
Tata Q is part of Tata smartzfood which in turn is a fully owned subsidiary of Tata Industries. Ideally in recent merger of food business, this part should also have been demerged from Tata Industries and merged into Tata consumer but it could be they did not do it as Tata Industries is not a listed entity.
Are you still invested in TCPL and what is your thought process now with the TGBL to TCPL transformation, the recent re-rating in progress and outlook for next 5-10 years (long term)? Thanks
Indeed excellent results. Decent growth in beverages and Foods segment exploding with growth at the moment. I was surprised by 8 o clock coffee growth. Good to see Americans started liking back one of their oldest (an iconic 161 years young) coffee brands! It would be good to know if this was the result of consumer shift in choice due to increased innovation/new products or because of increased availability in pandemic or a general trend in US right now with all coffee brands showing similar growth. Company did not speak of market share gains etc. as that would have given more perspective to this interesting US data.
Back in India, their Foods portfolio has been firing since last two Qs. Demand would gradually stabilize though. What is interesting is that the result of the merger has been so excellent even before any synergies kicking in, as that would happen gradually. The disruption from the lockdown coincided with the merger of foods business and the management acted well so far to fulfill increased consumer demand.
Disc: Not a buy/sell recommendation and views will be biased. One of top 3 holdings.
Thanks for sharing the interview. It was annoying the way new CEO was pushed for immediate future numbers. Only shows how majority, including these news channels so called analysts, are only concerned with short term rather than the bigger story and picture. To me, the biggest takeaways were -
Sampann as a brand is here to grow with lot of focus and investment behind it going ahead. New products will be launched.
Distribution points may double in an year - now this looks very interesting. Direct distribution to double as well. Indeed, very interesting
Salt - Although highly penetrated brand, still lot of unorganized part exist. Huge scope to increase market share from a mere 30% at present. Yes, the mighty old iconic Tata Salt has still 70% more to target and grow.
Demand scenario will sooner or later stabilize. De-stocking already seen in developed economies.
They will first exploit the F&B categories and adjacent categories before moving to other FMCG segments.
Last point is the most important for me. This was the very point where instead of understanding its essence, the news anchor played with words with the new CEO only to get the near term numbers and please the traders who watch the channel. In this point the CEO mentioned that they are very open to acquisitions - NOT TO CHASE topline but only for strategic reasons. The essence of this is that - they need not chase topline via acquisitions because they will anyhow achieve those targets organically!
Disc: Part of top 3 core holding. Highly biased. Not a recommendation to buy/sell.
Synergy will kick in about Sept. and in the second half of the year and will significantly improve the bottomline. (Looks like there is a lot of margin expansion coming up in the near future)
Distribution - Double direct reach in the next 12 months
Tata Salt and Sampann pulses and spices is where lot of unbranded shift has happened very quickly due to Covid - He says like 5-7 years worth of disruption may have happened in a short time.
They have gained market share in tea domestically during Covid. Will gain further market share from Unorganized and maintain lead.
Return ratios should move north with all the efforts the company is putting in.
NourishCo should contribute meaningfully going forward
Total business he is confident of delivering double digit topline growth
Looking for Inorganic growth as well with careful consideration to return ratios
Since yesterday I came across two set of news, one mentioning TCP is bidding for vending machine business of CCD and other mentioning Tata Coffee bidding for CCD’s plantation business. Anyone aware on which one is for real? Also, what is the significance of this Vending machine business? I suppose there must be bids for installing machines in offices and why would Tata need a CCD machine business buyout? They can get their own machines and bid for machine set ups. Is this business all about getting the contracts for those offices? Does it come with long term contracts?
Any insight to this business welcome.
The company is not totally denying…
It is possible that there could be a preliminary discussion but no decision taken…
Tata consumer owns Starbucks and they are expanding outlets… it is possible that they may be exploring the possibilities of buying out these vending machines from CCD at a competitive rates …to install in their Starbuck outlets.
