Tata Consumer Products expects tea volumes to grow in the mid-term

“This 4th was a spot brushed (for tea) compared to what we were seeing arsenic a inclination due to the fact that we had seen volumes coming to two-to-three percent growth," Sunil D’Souza, managing manager & CEO of TCPL said during the company’s station net telephone Wednesday.

The shaper of packaged brackish and pulses announced its March 4th net connected Tuesday. For the 3 months ended 31 March 2024, the institution reported level beverage volumes year-on-year. For the afloat year, beverage volumes were up 2%. Tea marketplace stock has been unchangeable connected a quarter-on-quarter basis, the institution said.

Overall, revenue from operations for the 4th grew 9% astatine ₹3,927 crore. For the afloat fiscal twelvemonth 2024, TCPL reported a 10% leap successful revenues astatine ₹15,206 crore.

“We bash expect to spot astatine slightest a two-to-four percent measurement maturation successful the short-term but successful the medium-to-long term, we bash expect beverage to travel backmost to a mid-single digit measurement growth," D’Souza said.

The company’s beverage concern falls nether the India beverages portfolio that besides comprises coffee. TCPL is simply a important subordinate successful the branded beverage market. In India, the institution sells packaged beverage nether brands specified arsenic Tata Tea, Agni, Kanan Devan, Tetley, among others. 

One successful 3 households successful India devour a Tata Tea brand. Tata Tea is the 2nd largest beverage marque successful India.

Inflationary headwinds successful beverage prices impacted the packaged beverage class successful fiscal 2022. Due to this, TCPL faced down-trading by consumers. However, implicit the past fewer quarters, beverage prices person begun to soften and volumes person started turning affirmative aided by proactive steps.

During the March quarter, for instance, mean northbound India beverage prices were 8% little year-on-year, the institution said successful its Q4 net presentation; portion southbound India beverage prices were 15% little compared to a twelvemonth ago.

“TCPL has present turned successful 4 consecutive quarters of affirmative measurement growth," analysts astatine Nuvama Institutional Equities said successful a probe enactment connected the institution released successful March.

In the past 2 years, companies struggled with precocious nutrient ostentation positive inflated commodity costs. This slowed down maturation of mass-market products arsenic companies either raised prices oregon reduced grammage to safeguard margins. However, companies expect to present resume absorption connected volumes going forward.

Meanwhile, during the quarter, java continued its beardown show with a gross maturation of 45% for the quarter.

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Published: 24 Apr 2024, 04:25 PM IST