Tata Group stock jumps 3.9% after keynote from chairman about future plans and expansion

Tata Consumer Products Ltd’s shares gained  3.9% on Wednesday’s session to reach an intraday high of Rs 824 apiece. The company has a market capitalization of Rs 76,243 crores. The stock price today has risen as the outcome of the company’s future commitments.

Tata Consumer Products Ltd is the 2nd largest branded tea company in the world, Company addresses more than 201 million households in India. Having a foothold in the food and beverage industries both domestically and abroad.

Tata Tea and Salt’s consolidated sales increased by 11% in FY23 to Rs 13,783 crores. Overall, India’s business was up 10% led by its food portfolio and Branded tea and coffee represent 58 % of the revenue while the rest is accumulated by the non-branded and foods business. 

Mr.Chandrasekaran, Chairman of Tata Sons, spoke on the company’s future prospects during the 60th AGM of Tata Consumer Products.

• The company has planned to open more coffee chain businesses with Starbucks, which currently operates in 41 cities. In the past year, the chain opened 71 stores. This totalled 333 stores spread across 41 cities.
• In the near future, the company seeks to revamp its fast-moving consumer goods (FMCG) division by identifying new product categories and acquisitions.

Here are some more, impressive future plans to accelerate the growth of the company

• The company is focusing more on the South Indian market by implementing a localized distribution network, adapting advertisement campaigns, and customizing products.
• To strengthen the product portfolio globally, the company is expanding its non-black tea business and introducing ethnic ready-to-eat and ready-to-cook products.
• The company has planned to open more coffee chain businesses with Starbucks, which currently operates in 41 cities. In the past year, the chain opened 71 stores. This totaling to 333 stores spread across 41 cities.
• The company is on track to completely merge Tata Coffee’s business with Tata consumer products,the merger anticipates generating synergies that will drive a single-digit growth for the coffee business of the conglomerate.
• Integration of joint ventures to reduce the number of entities from 45 to 25 in order to improve efficiency.
• The company has aim to target customers in the fields of health and wellness, convenience, and digitalization.
• The company’s innovation-to-sales ratio increased to 3.4%, up from 0.8% in FY20. 
• As per the latest report, the company reported a 70 percent rise in R&D spending, and launched 34 products last year, To drive growth in FY23-24 the company has allocated a capex plan of Rs 400 crore. 
• In the near future, the company seeks to revamp its fast-moving consumer goods (FMCG) division by identifying new product categories and acquisitions,

The company earned a net profit of ₹ 1,346 crore in FY 22-23, rising by a whopping 25% YoY. Revenue also saw growth of 11% YoY in FY23

In light of global currency instability, Tata Consumer Products expected a 1% reduction in volume in the tea industry in 2022-23, thus the firm quadrupled the releases of new products to maintain revenue growth.

Written by Omkar C

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