Tata Consumer Products Limited (TATACONSUM)

ankit_tripathi · September 26, 2020, 2:24pm

CCD vending machine won’t be installed in StarBuck .Every Brand has it’s own Image and they will not spoil that. CCD Vending Machines have demand in IT buildings/SEZs/School-College Campus where companies/Administration keep them in pantry for Employees/Students. In future they can be put in 7/11 kind of stores

shivammitra · October 8, 2020, 6:51pm

Hard to find any Tata consumer products with less than 4 starts on Amazon. Tata Sampann products have got amazing reviews in short frame of time.

paresh.sarjani1 · October 9, 2020, 2:24am

I have used all of them personally and I can confirm they are good.

Most importantly the masalas…

If you get a hold on it, just try Tata Sampann Paav Bhaji Masala …loved it

paresh.sarjani1 · October 9, 2020, 11:05am

I am using this since last 3-4 years…

It’s just that at that time toor dal was costly and not affordable to have it branded i.e. 200 per kg I believe…

hakim_yamin · October 14, 2020, 6:49pm

Star bazar and star market business is under tata consumer?

ankush12495 · October 15, 2020, 4:34am

Star Bazar is a part of TRENT.

sujay85 · November 5, 2020, 10:43am

Starbucks fined Rs 1.4 crore for profiteering, told to reduce prices

The probe was conducted on a complaint filed by a consumer alleging that the company did not reduce the price after the GST rate on restaurant services was reduced from 18 percent to 5 percent from November 15, 2017.
.
According to the complaint, the coffee chain increased the price of its ‘short cappuccino’ from Rs 155 to Rs 170, when the GST rate reduction came into effect.

ranvir · November 6, 2020, 2:43pm

Tata Consumer Q2 results highlights -

Consolidated sales - 2781 cr, up 19 pc

Consolidated EBITDA up 26 pc to 402 cr despite inflation in Tea prices

India packed beverage sales up 29 pc led by volume growth ( 11 pc ) and pricing…@ 1120 cr

India foods revenues up 13 pc ( vol gr at 6 pc ) @ 580 cr

Sequential improvement in Nourish Co’s performance

Branded Intl beverage sales up 11 pc ( constant currency growth - lesser due unwinding of pantry loading )

Starbucks JV - sales at 71 pc of pre COVID levels now ( ie in Sep vs 27 pc of pre covid in Jun, 54 pc in Aug ) . Store count at 192 in 12 cities. New store opening - 11, added store in Lucknow

Tata Coffee ( 58 pc subsidiary ) - sales up 17 pc, volume growth at 11 pc

PAT at 273 cr up 31 pc, adversely affected by 24 cr exceptional costs related to business integration and impairment loss ( non cash ) on assets related to Australia business

Net Cash - 1439 cr

Disc : invested

Investor_No_1 · November 6, 2020, 3:05pm

Interesting results by Tata Consumer. Some points which I could see -

Positive - Despite high commodity costs, branded beverages fared well. Revenues increased not only yoy but sequentially as well.
Positive - Unbranded (seasonal) plantation business fared well. This is the positive side of backward integration. Higher commodity costs (tea procurement) means higher realisation for the plantation business and better control for the branded business which procures from these very plantation significantly. (I see this as an edge over HUL in procurement and control). Although this same plantation business can at times back fire also.
Not so positive - Foods business grow well YoY but almost stagnant sequentially. I cannot make anything out of it as not sure how Foods business growth would pan out going forward. Sampann did not seem to launch any new product this Q. Wait and watch with hope. To be honest, I expected sequential growth here (biased) but practically some cooling off was natural. Need to be watchful and hopeful of this part of business. Expected new launches in this Q as per management interviews…

Overall, not sure how market will treat it but on an expected EPS of 12 (conservative as per last two Q EPS and expecting no positive or negative surprises for next 2 Qs), a PE of 50 (modest for top quality FMCG these days) gives me a yearly fair value of 600 approx. Pls correct me if wrong and views welcome on all above points.

Disc: Part of core portfolio hence biased. Not a recommendation to buy/sell

bikkarolla · November 6, 2020, 3:07pm

If one can make comparison based on QOQ will be more interesting. It can be observed that revenues were increasing QOQ but the OPM is at 13% expect for Q1FY21. Hopefully, company can find ways to improve the OPM

mrai74 · January 15, 2021, 8:30am

Q3 SHP analysis

Mutual Funds reduced 1.96% in current quarter
Insurance companies reduced 2.06% (including LIC 1.57%) in current quarter
FIIs happily grabbed with both hands and increased 4.03% in current quarter
Retail followed FIIs and increased 0.26% (approx 40k new investors, which is jump of 9.34% in absolute nos) in current quarter

Rishu1202 · January 27, 2021, 7:17am

With Tata on the verge of buying out Big Basket in ~1.3 Billion USD, it remains to be seen if it benefits more to TCPL as many of the TCPL products may get some boost in sales through the platform, although it’s already being sold on Big Basket. Tatas putting focus on Retails should benefit end customer as well as investors.

There are many questions, answers to which may benefit the Tata Consumer business & others.

Will TCPL have any stake in Big Basket directly or will it be all owned by Tata Sons?
Listing is one condition for this Acquistion, will be separately done or merged with any of the existing business?
With the SuperApp which is underway from tatas to counter JioMart etc, it remains to be seen if Tata can use all their other Buisness like Trent, TCPL, Tata Coffee etc. to benefit from this.

Investor_No_1 · January 27, 2021, 5:59pm

Well I am not sure if the points you mention are questions or not, but I personally do not see them as if they would happen or not. With the Tata’s focus on ecommerce buyouts, super app etc. there is no question that if their flagship FMCG firm and even Retail company would benefit or not. They are building a very strong eco system and both these firms, along with few others, are definitely going to benefit in the long run.

Based on whatever information in public domain that I have read, it doesn’t seem TCP would hold any stake in Big Basket and neither Trent. Infact, Noel Tata (a Retail expert I have huge respect for), seem to have a parallel profitability focused plan for Trent (as always has been his focus). So thats why they did not do this acquisition via Starquik (Trent) but rather Tata Digital. Trent doesnt seem to want to add huge debt to it at the moment for big buyouts and Starquik would chart its own steady omnichannel path (Something like a Damani focussed Dmart Ready).

TCP products are still available in plenty in BB but I am sure after buyout the synergy would and should increase. Also, not many would have noticed that TCP makes many private label brands for Trent. The “Fabsta” range of coffee and Tea that sells as Star Market’s private label (The only private labels I like using are from Star) is made by TCP! So the ways to utilize the synergy is enormous and hugely symbiotic.

Disc: Invested in TCP and Trent and hence biased. Not a buy/sell recommendation.

Investor_No_1 · February 2, 2021, 2:07pm

Anyone has insight on the Soulfull brand and on the acquisition valuation, would be good to know

Akansh_Kumar · February 2, 2021, 3:30pm

Here are the details of it :

bikkarolla · February 2, 2021, 3:32pm

I like this move by TCPL. It will now have ready to go meals. I hope this company will come with more ready to eat products. It should have more products like the company of tastybites.

Did they mention anything in the conference call, how they will improve their operating profit margin?

Investor_No_1 · February 2, 2021, 4:36pm

Interesting, the company has been almost doubling its revenues every year for last two fiscal year…from 11 cr in FY18 to 40 cr in FY20. 40 cr is turnover till march 20. I am not able to get details on how the brand performed during lockdown and pandemic i.e from march 20 till date. With Tata’s distribution strength, this can be scaled up very quickly though…

abhijain · February 2, 2021, 4:38pm

I am not sure about the valuation et all of the soulful brand.
But being a consumer of the soulful products( ragi flakes etc), the products are awesome and healthy.
My kid used to have Kellogs chocos earlier but once we moved to soulful raagi flakes, its a complete transition to soulful products.
I get a sense this acquisition would bring strategic value to TCPL.

Investor_No_1 · February 2, 2021, 4:43pm

Thanks, good to know details from a consumer perspective and if you can trust the brand with your Kid even before it comes under Tata, it means the brand is good. I see reviews in Amazon and Big Basket also good and many people have rated it. The Smoothie doesnt seem to go so well though but its a recent launch. Coming under Tata, I think they experiment with their existing distribution and change the mix as per the performance…

Also, I had read back in Nov 20 that Tata Q (which is on similar Ready to Eat/Cook segment) is proposed to come under TCP from Tata Industries. Did not hear anything from management on that yet. Also, in Amazon etc. I dont see many people buying Tata Q. IRCTC though have come up with a tie up with them for Railways…

Akansh_Kumar · February 2, 2021, 4:58pm

I feel that it is a very good bolt-on acquisition for the foods segment. Instead of building a brand from scratch, which will have a long gestation period , it will help the company to drive growth from next fiscal year itself. Also , reading from the investor presentation most of the existing management of soulful is still there, which is again a good thing