Tata Consumer Products Ltd. (TCPL) is the 2nd largest branded tea company in the world, The company addresses more than 201 million households in India. Having a foothold in the food and beverage industries both domestically and abroad.
Over the past five years, the stock has demonstrated impressive growth of approximately 490%. In the fiscal year FY23, the company achieved a noteworthy 15% expansion in its direct distribution network.
Tata Consumer has significantly enhanced its direct reach, now encompassing 1.5 million outlets across India, marking a more than twofold increase from just two years ago.
Diversifying its product range, the company has a comprehensive portfolio that includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks, and mini meals. With operations spanning both India and international markets, Tata Consumer has achieved a consolidated annual turnover of ₹13,783 crores.
The company experienced a notable 11 percent growth in revenue, reaching ₹13,783 crore from FY2022 to FY2023. Over a four-year period, the company demonstrated a consistent three-year Compound Annual Growth Rate (CAGR) of 12 percent in revenue. Similarly, the company’s profit surged by an impressive 30 percent to ₹1,320 during the same fiscal period, and over four years, it achieved a three-year CAGR of 9.1 percent in net profit.
The company’s proactive approach, including engaging in major mergers, integrating innovative practices, embracing digital transformation, exploring new business opportunities, and reinforcing its core business, enabled the company to achieve a significant market presence.
Timeline of companies that TCPL has integrated over the years:( Tata Global Beverages Limited formerly known as TCPL)
In 2000: Acquired UK-based Tetley for a value of $407 million, At present, Tetley enjoys more than 35% market share in its home market, and the brand is sold in over 40 countries.
In 2005: TCPL acquired Good Earth Tea Ltd and FMALI Herb Inc. through Tetley
USA to increase its market presence in the specialty tea segment in the US and global markets.
In 2006: Acquired Eight O’Clock Coffee Company (“EOC”) for a value of US$220 million (Rs 1,015 crore). And increased 75% in South Africa-based firm Joekels Tea Packers.
In 2007:Acquired Himalayan mineral water, and in the same year, it acquired Polish tea brands Vitax and Flosana from Premium Foods.
In 2011: Formed a joint venture with PepsiCo to form NourishCo Beverages for a 50% stake, an agreement in the area of non-carbonated ready-to-drink beverages, focused on health and enhanced wellness.
In 2012: Formed a joint venture with Starbucks Limited, as a 50/50 partnership between Starbucks Coffee Company and Tata Consumer Products.
In 2015: Launched Tata Sampann, in the business of snacking markets with dry fruits, spices, dals, besan, poha, and more.
In 2020: Merged the consumer products business of Tata Chemicals with Tata Global Beverages, To form a TCPL. The combined entity reached over 200 million households. The merger resulted in the formation of a stronger growth platform to meet the growing aspirations of Indian consumers.
In 2021: Tata Consumer Products acquired the “Soulful” brand for a value of ₹156 crores (approximately USD 21 million). And acquired Tata Q, for ₹395 crores (approximately USD 53 million).
In 2024: Acquired Capital Foods for value of ₹5,100 crore and Organic India for ₹ 1,900 crores. The portfolio of brands includes Ching’s Secret and Smith & Jones.
In 2024: Tata Coffee merged with Tata Consumer Products, to reorganize, and synergize Tata Group’s food and beverage businesses.
Written by Omkar Chitnis
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