Tata Consumer Management Discussions
1. ECONOMIC REVIEW
1.1 Global
Global economic growth is estimated at 3.1% in 2023 as per International Monetary Fund (World Economic Outlook Apr 2023). The year witnessed significant headwinds with geopolitical uncertainty (conflict in Russia / Ukraine and Middle East), aggressive tightening of monetary policy and stress in banking sector. However, there was strong resilience seen, especially in the second half of 2023, led by major economies with increase in consumption driven by government and private spending, easing of labour markets and supply side pressures and support from fiscal policies in advanced economies like the US. Global inflation levels also declined favourably during the year.
Outlook
Global economic growth in 2024 is expected to remain subdued with Central Banks continuing to take a cautious stance on policy rates, withdrawal of fiscal support especially in advanced economies, resulting in stronger focus on budget deficits in a high interest rate environment and low underlying productivity growth. Potential upsides to the outlook would be faster decline in inflation levels leading to Central banks moving forward with policy easing, slower than assumed withdrawal of fiscal support, recovery in China and supply side reforms. One of the key risks to the outlook is escalation of geopolitical conflicts leading to increase in energy prices, disrupting supply demand balance and impacting overall global activity (Red Sea crisis). 2024 is also an election year for several countries including US, UK, and India – and policy uncertainty could lead to short term weakness in economic environment. Other risks include elevated interest rates leading to debt distress, slower growth in China and trade fragmentation.
1.2 India
The Indian economy is estimated to grow by 6.7% in FY24* driven by sustained domestic demand with private investment and government consumption. Manufacturing (led by steel, cement, and automobile)
*Global Economic Prospects, IMF Jan 2024 and construction have delivered robust growth with increased infrastructure spending, regional supply chain diversification and government incentives to boost activity with Production Linked Incentive schemes, national infrastructure program amongst others. However, the rural/ farm sector has been impacted by unfavourable monsoons and inflation, dampening demand. Consumer inflation, as of December 2023, stood at 5.7%, and has moderated compared to peak of 7.4% in July 2023; however, continues to be higher than Reserve Bank of Indias (RBI) target of 4% led by higher food prices with adverse crop and supply side bottlenecks.
Outlook
Economists estimate that the Indian economy will deliver 6-7% growth in next two to three years and move from fifth to third position, in terms of global ranking on nominal GDP. The growth is projected to be led by increase in consumption and investment, decline in inflation levels, improving rural demand (in part helped by subsidies announced in early part of the year) and private capex recovery with reduced policy uncertainty post general elections. JP Morgan and Bloomberg have announced the inclusion of Indian Government securities (GSecs) into the JPM Government Bond Index – Emerging Markets (GBI-EM) and Bloomberg Emerging Market (EM) Local Currency Government Index and related indices respectively – which would help in boosting foreign investment in Indian fixed market bonds, bring down cost of borrowing for the government and support the Indian Rupee. Risks to the outlook remain with weakness in the global economy impacting exports, volatility in food and crude oil prices and policy uncertainty post national general elections.
2. STRATEGIC PRIORITIES
2.1 Overall Strategy
Tata Consumer Products Limited (TCPL) is a leading FMCG company in India with a portfolio of offerings across Food and Beverage categories. The Company owns iconic brands with strong heritage and market positioning like Tata Tea, Tata Salt, Tetley, Eight O Clock Coffee and Himalayan Water as well as new-age brands like Tata Sampann, Teapigs, Good Earth, Tata Copper Plus, Chings Secret, Tata Gluco Plus, Smith & Jones, Organic India, and Tata Soulfull to name a few. In Tea, we are the second largest branded player globally ("Tetley") as well as have the second largest brand in India ("Tata Tea"). We also have largest brand in Salt ("Tata Salt") and a leading Desi Chinese brand ("Chings Secret") in India. We are expanding its portfolio into other product categories such as pantry staples, snacks, ready-to-eat, ready-to-cook, ready-to-drink, breakfast cereals, protein, and supplements. We are committed to delivering products that are ‘Better for You (high quality, innovative and sustainable) that will delight consumers and create lasting value for all our stakeholders. Some of the key highlights for the year
Crossed Revenue from Operations milestone of Rs 15,000 Crores and became the seventh company within the Tata group to have a market capitalisation of over Rs 1 lakh crore.
Increased distribution in India. Reach at ~4m direct outlets with direct reach of 1.6m. Our products now reach around 263 million households across India.
Continued to scale our Growth businesses in India (RTD Beverages, Tata Sampann, Tata Soulfull and Tata SmartFoodz). Overall growth for the current year for Growth businesses at 40%.
Acquisition of Capital Foods Pvt. Ltd. (75% shareholding) on February 01, 2024 and Organic India Pvt. Ltd. on April 16, 2024, leading to addition of three new brands to the portfolio. We have completed the integration of Capital Foods and plan to complete the full integration of Organic India within 100 days of acquisition.
Capital Foods is a packaged food company and owns two iconic brands – (i) ‘Chings Secret, synonymous with desi-Chinese cuisine in India
(product portfolio includes chutneys, blended masalas, sauces, noodles, and soups); and (ii) ‘Smith & Jones, which caters to in-home cooking of Italian and other western cuisines. Organic India is leading platform of organic products with a product portfolio focused on sustainable living – herbal supplements, tea and infusions and organic packaged foods.
We improved profitability in International markets, despite challenging category dynamics.
We continued to invest behind our brands.
We scaled innovation and our innovation to sales ratio for India improved from 3.4% in FY23 to 5.1% of sales in FY24.
We grew our Non-Branded business by 5% led by expansion of customer base, and premiumisation of our portfolio. Improvement in profitability leveraging favourable movement in commodity costs.
We sustained the momentum on digital initiatives with investment in sales, supply chain, and backend operations to enable faster decision making and improve performance and process efficiency.
Completed the demerger/amalgamation of erstwhile listed subsidiary company Tata Coffee Ltd. This led to the integration of our tea and coffee solubles businesses into a single vertical within the parent entity and the creation of a separate wholly owned plantation subsidiary.
We have also initiated simplification of the legal entity structure with restructuring and merger in the US, and merger of three wholly owned subsidiaries (NourishCo Beverages Limited, Tata SmartFoodz Limited, and Tata Consumer Soulful Private Limited) with the parent entity in India. This will help in streamlining operations and management structure and drive cost synergies.
We opened 95 Starbucks stores in India, taking the count to 421.
Key strategic developments
During the year under review, we focused on increasing width and depth of our sales and distribution infrastructure (increasing direct outlet reach in small towns and split routes in larger towns in India), investing behind brands both in India and International markets, taking strategic cost interventions to improve profitability and restructuring operations to drive synergies. We have completed the acquisition and integration of Capital Foods Private Limited and announced the acquisition of Organic India Private Limited, both the companies have market leading brands and operate in high growth and high margin categories with significant potential for us to drive revenue and cost synergies, thereby creating value for shareholders.
We further accelerated our innovation agenda with a total of 46 new launches (compared to 34 in FY23). This included new categories/geographies (e.g. Saffron launched under both Himalayan and Tata Sampann brands, Tata Simply Better Cold Pressed Oils, Tata Soulfull Ragi bites Chocosticks, Tata Sampann Makhana), health and wellness platform (Tata Black Salt, Tata Tea Gold Vita Care, Tata Soulfull Granola, Tata
Sampann Seeds), convenience (Tata Coffee Quick Filter Decoction) and premiumisation (Tata Coffee Cold Brew, range extension in Sonnets and positioning Kanan Devan as provenance brand) to name a few. Digital remains an important strategic pillar in our transformation agenda. We have made significant progress in leveraging AI in several areas like Auto Ordering system, Demand Forecast, Recipe Cost Optimisation, Tea Tasting prediction amongst others. We launched MAVIC, our new Go to Market platform for our India sales operations that leverages AI-ML technology and introduces real-time sales data analytics. We have now geofenced 85%+ of the sales outlets in India. We also implemented enhanced forecasting tool for our International business. We centralised container tracking and implemented sea freight optimization application. We continue to strengthen the Diversity & Inclusion pillar of Recruitment, Retention and Advancement. During the year, we conducted an Inclusive Hiring workshop that focused on building capabilities of the HR Business partners and Talent Acquisition team. We also invested in capability building with different learning programs across different functions and skill sets.
2.2 Opportunities and Strengths
Tata Consumer Products have leading market positions in the Tea and Salt categories which forms the largest share of our revenue. We aim to continue driving growth led by improvement in distribution, better innovation and premiumization while looking at strategic cost optimization opportunities across the value chain. We are leveraging our strengths in distribution, operational excellence and institutionalizing benchmark practices in customer engagement and delivery processes to create a strong platform to build future businesses. These new businesses (including Packaged Food, Ready to Drink, Breakfast cereals, Healthy Snacks, RTE and herbal supplements) are the future engines of growth and have the potential to scale over time. The rich heritage of the "Tata" brand inspires widespread trust and allows us to operate in different categories, especially those which have high trust-deficit. We are also the #2 branded Tea player globally ("Tetley") and have a sizeable presence in Coffee in the US, with our heritage brand Eight OClock. We enjoy strong brand equity, built over years, and a loyal consumer base. Teapigs and Good Earth are brands with premium offerings aimed at serving the emerging consumer needs and form our future growth engines. In our International markets, we continue to protect and strengthen the black tea business which forms the largest tea category, while focusing on product introductions in the growing non-black segment as well as strategically growing the food portfolio (breakfast cereals, RTE and ethnic products). We are well positioned to leverage the growing consumer preferences for wellness, sustainability, authenticity, and premium choices with products like Tetley Super Teas, Tetley Live Teas, Tetley Herbals, Good Earth, Eight OClock Barista Blends and Teapigs. We continuously evaluate our portfolio and drive cost optimization, to enhance business effectiveness and profitability. In our B2B solubles business we have restructured operations and integrated both the Tea and Coffee businesses within the parent entity. We enjoy healthy margins, and in the next few years are aiming to diversify our customer base as well as premiumise with innovation. Our plantations business delivered high profitability, in part helped by the unprecedented favourable price rally in Coffee.
2.3 External threats and mitigation strategies
We operate in the food and beverage (F&B) segments in India and International markets. The Indian packaged foods and beverage consumption growth story remains strong with trends in health, wellness and convenience playing out across the segments. The penetration of branded products remains low but will continue to increase with favourable demographics, rising per capita incomes, urbanization, higher awareness and expansion of modern retailing and e-commerce. In International markets, we are seeing long term category headwinds in some of the categories. Apart from trends seen in India, we are also seeing a trend of customers becoming increasingly value conscious, especially with high inflationary environment and growing share of private label.
We are well positioned to capitalize on this opportunity with a wide range of products within our portfolio, focused expansion of our sales and distribution system in India and improvements across our supply chain. Premium product offerings and new market models are also being developed. We are exploring opportunities to expand our products from the India portfolio in the International markets where we have presence to cater to both ethnic food aisles and the needs of the Indian diaspora.
Key threats to our business include changing consumer preferences, volatility in commodity and currency, inflation, and concentration of retailers in developed markets. In FY24, we continued to face elevated cost pressures in our supply chain (recently with red sea disruption) and increased commodity costs (e.g. staples, spices, robusta coffee) to name a few. We took strategic pricing interventions to mitigate some of the effects of input cost inflation while protecting the interests of the consumers.
2.4 Growth drivers a) India
The business delivered a strong performance with overall revenue growth of 12% with core business growing at 6% whilst growth business delivered 47% growth aided by acquisition of Capital Foods. The share of growth business increased from 15% in previous year to 19% in the current year, partly aided by Capital Foods acquisition. We expanded our total distribution network with direct reach to around 1.6 million outlets with a total reach of ~ 4m outlets. We grew our share in the Salt category; though had subdued performance in tea led by demand softness. We did a total of 46 new launches across categories and our Innovation to Sales ratio crossed 5%.
To improve frontline sales bandwidth and drive depth in outlet coverage, we implemented split salesman routes in towns with 10 Lakh Plus Population (TLP). We now have two separate salesmen for (A) Beverage and Soulfull products and (B) Salt and other food products – which has helped in driving the focus on both Beverages and Foods part of the portfolio. This has led to improvement in lines per outlet (number of TCPL items carried by the outlet) and translated into good growth in urban centres. We also appointed direct distributors in lower population towns (50,000+ and significant number of 20,000+ towns) to expand our coverage in semi-urban and rural and improve market share position.
We also covered good ground on the digital front as we improved forecasting process tools, automated R2R (record to report) process, implemented Data Leakage Prevention to minimize data exfiltration and breach and streamlined and further improved internal applications. We leveraged AI/ML for blend forecast improvement tool which helped us in improving forecast accuracy as well as optimizing inventory build. We were listed among Indias 20 Supply Chains by Institute of Supply Chain Management (ISCM) at the 8th India Logistics and Supply Chain Awards. We also received the Safety Award at the 11th Global Safety Summit Conference in the Large Enterprises category (FMCG sector). We were recognized by the Indian Institute of Packaging (IIP) with 5 INDIASTAR 2022 awards; SIES School of Packaging - Packaging Technology Centre with 6 STAR 2023 awards and by The World Packaging Organization with a WORLDSTAR 2022 for Excellence in Packaging.
i) Beverages
The India Beverages business (including RTD) grew by 7% during the year. The tea business volume and value grew by 2% and 4% respectively. The value growth was led by our Premium (led by Tata Tea Gold, Chakra Gold, and Tetley) and Sub-premium (Tata Tea Premium, Kanan Devan and Spice Mix) segments. We faced some headwinds in our Popular segment on the back of demand softness. Our Agni brand also delivered sales growth, after witnessing decline last year.
We saw softness in tea market share led by our economy brands, especially Agni. However, we addressed distribution gaps in a targeted manner and continued to support brand investments to improve equity. During the year, we made successful innovation launches across our tea and coffee portfolio. We also continued with our hyper-local strategy and celebrated festive occasions to further strengthen the consumer connect. The RTD beverages portfolio grew by 35% led by distribution growth and new launches. Tata Copper Plus continued its strong trajectory and delivered 44% growth while Tata Gluco Plus achieved 22% growth and Himalayan clocked 15% growth. New markets contributed to almost one-fourth of the business. We launched Kashmiri Saffron under the Himalayan brand in ecommerce and our D2C (direct to consumer platform) with each pack providing proof of quality, a first in this trust deficit category. We also made a pilot launch in the fast growing and youth centric categories of Energy drink (with brand ‘Say Never) and Sports Drink (under Tata Gluco Plus umbrella) at an attractive Rs10 price point in a differentiated cup format. The Sports Drink was launched in affiliation with the Argentina Football Association.
ii) Food
The Foods business (Salt, Sampann, Soulfull, RTE and Capital Foods) grew by 18% during the year. Tata Sampann crossed gross sales benchmark of Rs 1,000 Crores and improved profitability with the help of structural interventions including a better procurement strategy. The Tata Soulfull business scaled 1.4x over FY23. In Salt, we continue to enjoy leadership position in India and further expanded our value share by 50 bps points to reach 38.3% (MAT Nielsen). The Premium Salt portfolio grew by 34% during the year led by improved distribution and drives to improve awareness. We ran different marketing campaigns, sales engagement programs and split routes to build awareness, improve distribution and penetration for our portfolio. In terms of innovation, we made a total of 22 launches during the year – including new categories (e.g. Chocosticks, Makhana, Cold Pressed Oils), adjacencies (Oats, Granola, Seeds) and range extensions. During the year, we acquired Capital Foods Private Limited, which owns two leading brands ‘Chings Secret and ‘Smith & Jones in the non-Indian cuisine space. These brands have strong consumer equity and market leadership in the categories they play in. Chings Secret has pioneered the Schezwan chutney segment in the Indian market. We have completed the integration of Capital Foods and FY25 will be the first full year of operations.
iii) Tata Starbucks
Tata Starbucks, our 50:50 JV with Starbucks Inc., opened 95 new stores this year – outpacing the last years record of highest store opening in a single year (71 stores). We are now present in 421 stores across 61 cities in India. The year saw demand softness in the overall QSR (Quick Service Restaurant) space, and our same stores sales growth was subdued. Notwithstanding this short-term volatility, we are committed to reach the 1000 stores milestone by 2028.
b) International
The International Branded business faced several headwinds - volume softness in categories, high competition intensity and inflation (coffee) and supply disruptions including red sea crisis impacting shipping timing and freight. However, the business delivered 9% during the year (5% in constant currency), improved profitability in its tea business and increased investment behind brands. We undertook price increases across markets and have grown/maintained market shares across major regions. We have revamped our products /brand proposition in UK with blend and packaging improvement, moved towards greater sustainability and delivered improved profitability with focused execution and improved distribution. Canada revenue grew in mid-single digits driven by price increases. It improved upon the leadership position in regular black tea and Tetley emerged as the "Most Trusted Tea Brand 2023" - Readers Digest, for the 10th year in a row. In speciality it came across intensified competition play despite the same, market shares remained range bound/ stable. US Coffee experienced a challenging year with marginally decline in profitability as we saw demand softness in the category and higher promotional intensity.
Last year we had forayed into the ethnic space with RTE launches and this year we launched Joyfull millets in UK across 430 stores in Tesco.
While Joyfull (our millet-based breakfast cereal brand) and ethnic portfolio (India Beverage and Food Brands) performed well; Tata Raasa (ready to cook and ready to eat portfolio) performance was subdued led by strategic decision of focusing growth in select markets and delay in getting retail distribution. In USA, Tata Raasa is now available in Albertsons, Kefe, Shop and Stop and Amazon and we will continue to focus on increasing distribution.
c) Non-Branded
During the year we restructured our non-branded operations post the demerger/amalgamation with previously listed subsidiary Tata Coffee Ltd merging of Solubles business (Coffee extraction) in the parent entity as well as created a wholly owned subsidiary for our plantation business to drive synergies. The aforesaid resulted in Coffee and Tea soluble portfolios to be under common management, integrated sales, and back-end to drive organizational synergies. The non-branded business reported growth of 5% (4% in constant currency) primarily led by Solubles business. The revenue growth in solubles business led by higher realisation and improved contribution of value-added products coupled with increase in customer base. The profitability of the overall non branded business improved significantly aided by good performance of solubles business and unprecedented price rally in Robusta coffee.
2.5 Road ahead
We will continue to drive sustainable profitable growth with a focus on growing both the core (in India and International) and rapidly scaling the new Growth businesses supported by higher brand investments and increasing the breadth and depth of distribution, among other initiatives. Premiumisation and innovation will play a key role in fuelling growth, and we will continue to keep clear focus on executing cost initiatives including unlocking synergies with legal and organizational restructuring to support the business.
2.6 Sustainability
Sustainability continues to be central to our vision at Tata Consumer Products. Our sustainability strategy rests on four pillars - For better sourcing, For better planet, For better communities, and For better nutrition. During the year, we released our FY26 milestones on Sustainability providing pathway to reaching our 2030/2040 ambitions disclosed earlier. The milestones include becoming Scope 1 and 2 neutral and raising our renewables share to 35% in our total power demand across geographies by FY26. We also released our first impact reports for Tetley and Teapigs, showcasing some of our key initiatives undertaken to drive a positive impact.
Our Companys sustainability strategy ‘For Better Living is inspired by the Tata core values of Integrity, Responsibility, Excellence, Pioneering, and Unity and focuses on our corporate identity of ‘For Better. We have also announced sustainability targets aligned with the Tata Groups vision in Project Aalingana - around driving Net Zero, pioneering Circular economies, and preserving Nature and Biodiversity. As a recognition of our efforts, we were ranked amongst the Top 5 Most Sustainable Companies in BW Businessworld annual ranking of Indias Most Sustainable Companies in 2023. We were placed at #2 as one of the Most Sustainable Companies in the Consumer Goods Sector.
We are committed to sustainably sourcing our teas and encourage our supply chain partners to follow sustainable agricultural practices through certifications like Rain Forest Alliance (International markets) and trustea programme (India). All Tetley blends in International markets are Rainforest Alliance certified and we are founding members of the Ethical Tea Partnership working to catalyse systemic change to benefit everybody who works in tea. In 2023, the Ethical Tea Partnership reached 78,000 people directly and 686,000 in the wider community with its work which addresses the key issues within economics, equality, and environment. We also commenced a new 3-year project with the Ethical Tea Partnership PES – Payment for Ecosystems by which we are funding Tree Growing via the distribution of seedlings to small farm holders in Malawi where we are one of the largest buyers of tea. The project seeks to address both economic, equality and environmental issues. This will also give the farmers ability to sell carbon credits to the open market, thus, providing them with an additional income stream.
Teapigs in our international markets has continued its partnership with the Point Foundation in Rwanda where it sources its black teas. The Point Foundation supports vulnerable, economically challenged, and disabled young people. To date ?600,000 has been raised through on pack donations which has funded the building of two teapigs houses which provided accommodation and educational support to 452 students.
Tetley in the UK and the US is recognised on the Amazon website with a ‘Climate Pledge Friendly logo that uses sustainability certifications to highlight products that support Amazons commitment to help preserve the natural world.
The India trustea programme has cumulative verified volumes of more than 947 million kg tea till March 2024, which is over 70% of the total tea sold in the Indian markets. Since inception, about 130250 small growers have been verified and 6.8 lakh workers reached under trustea. It has facilitated better working environment for women (maternity benefits, cr?che facility), market access and better prices for small tea growers, structured grievance redressal system, decent housing, portable drinking water, and uniformity in system of wage payment for tea workers. The Trustea Sustainable Tea Foundation is now an ISO 9001:2015 certified organization and member of ISEAL under a globally recognized framework, that defines practices for effective and credible sustainability systems.
For better communities, we aspire to support development programmes for 2 million beneficiaries by 2030; and have already supported ~1.39 million beneficiaries by March 2024. In India, we provide affordable healthcare to over 100,000 tea community members annually through our hospitals in Munnar (Kerala) and Chubwa (Assam). The hospital operates on a not-for-profit basis and caters to patients from not just the nearby area, but also the neighbouring states. The hospitals are recognised for healthcare facilities, professionalism, safety, ethics, and affordability. We are aligning our GHG emissions targets with the larger Tata Group. Our UK factory uses offsite solar power for its operations and has also installed a biomass boiler for reducing its GHG emissions. As a result, 97% of energy used is renewable. The site was also one of the first in the UK to achieve ISO5001 demonstrating healthy energy management. Our different factories in India have also commissioned solar PV modules using the latest multi-crystalline technology. The group also undertook a detailed climate risk assessment as per the Taskforce on Climate Related Financial Disclosures (TCFD).
Some of the recognitions received during the year included Damdim Packeting centre being recognised as "Energy Efficient Unit" in the General Sector category by the Confederation of Indian Industry (CII) in its 24th National Energy Awards event for Excellence in Energy Management. We were awarded as one of Indias top 20 supply chains by Institute of Supply Chain Management (ISCM). The criteria for evaluation were Resilience, Agility, Technology, Digital, Reach and Sustainability. The Himalayan Water Plant, Paonta Sahib has been awarded Silver Medal in India Green Manufacturing Challenge 2023 instituted by IRMC (International research Institute for Manufacturing) based on onsite assessment.
We are the founding member of the India Plastics Pact. The pact focuses on creating a circular economy for plastics. We had earlier joined the UK Plastics Pact in 2018 and the Canadian Plastics Pact in 2022. Our teams are actively engaged in the Advisory Committee and Collaborative Action Groups (CAG) to co-create a roadmap for plastics management. All our beverages factories worldwide are now zero waste to landfill and all wastes are disposed of through authorised vendors who recycle or repurpose them to avoid landfills. In our International markets, we continue to rollout biodegradable tea bags with Tetley in the UK transitioning all of its core black tea products to be plant based. In addition to this with the launch of Tetleys new recyclable carton we successfully removed all non-recyclable laminate plastic case overwraps from our soft pack black tea ranges. Teapigs and Good Earth in the UK have 100% recyclable or compostable packaging. Our Extended Producer Responsibility (EPR) target in India is to collect 100% of total packaging for Beverages, Food and RTD divisions; and we achieved the target in FY24.
We also partnered with Wastelink and together, we collected and recycled waste into animal feed. Wastelink is a Gurgaon based company that enables food manufacturers, kitchens and restaurants manage their surplus and waste through an innovative operating model that transforms food waste into nutritional animal feed.
Project Jalodari is our flagship water management programme. The key objectives of the project are to create sustainable water sources, raise awareness, and build capacities around sanitation issues in the communities where we operate. The Project has now been extended from the year 2021 to 2025 and will expand to other areas.
Recognising water as a critical natural resource, we undertook a detailed water risk assessment for the Company. Further, we have established rainwater harvesting structures in all tea packeting centres in India, and 98% of rooftop area has been connected for water recharge.
3. INDUSTRY AND BUSINESS OVERVIEW
3.1 India Business
The packaged foods and beverages segment continues to deliver robust growth in the FMCG industry as the underlying Introduction drivers remain robust with attractive demographic profile and rising consumer affluence, increasing penetration and low branded share. The organised Indian food and beverage market is estimated to grow at 10-15% over the next 5 years.
In the past 6-12 months, the sector saw significant input cost inflation with the increase in commodity costs impacting Review overall demand trends, especially in rural markets.
a) Industry overview and Outlook
Tea
The total Indian tea market is estimated to be worth ~Rs 31,000 Crores, with the branded business constituting ~75% of the overall market (by value). Tea continues to remain the favourite Indian beverage with a high consumer preference for boiled milk tea. During the year, we saw volume and value growth across all segments (Premium, Sub-premium, Popular and Economy). The category is predominantly Black with Green tea being a niche play (<5%). In terms of channels, the emerging alternate channels of Modern Trade and Ecommerce are gaining significance. Health and wellness remain a significant consumer trend. We operate in the sub-categories of Tea, with brands like Tata Tea Premium, Tata Tea Gold, Tata Tea Chakra Gold, Tetley, KananDevan, Gemini, Lal Ghoda, Kala Ghoda, Agni, Teaveda and our 1868 collection. With the acquisition, we have also added Organic India brand to the fray.
Coffee
Branded Coffee is a ~Rs 3,600 Crores category in India, with Instant Coffee constituting the largest sub-segment at ~80-85% and growing as consumers continue to prioritise convenience. We are also seeing the emergence of artisanal and gourmet Premium Coffees. In terms of at-home consumption, consumers in South India prefer both Instant and Roast and Ground (filter coffee) and consume it regularly throughout the year, while coffee remains an aspirational product across the rest of India with higher demand for Instant Coffee during winters. We play in the branded Coffee segment with the brand Tata Coffee Grand and Sonnets.
Salt
The Indian branded salt market is estimated at ~Rs 8,200 Crores. We have a national presence in the category with the vacuum evaporated "Tata Salt", the lower-priced solar salt "I-Shakti", the mid-tier solar salt "Shuddh" and a range of value-added premium salts (Tata Salt Lite, Tata Salt Super Lite, Rock Salt, Tata Sendha+, Tata Salt Immuno, Tata Salt Iron Health, Tata Salt Vitamin Shakti). Additionally, this year, we added Black Salt (value-added variants in Tata Salt). Our supply partner, Tata Chemicals has the largest manufacturing facility for producing vacuum evaporated salt in India. Consumers are upgrading from loose and unbranded to packaged and branded iodised salt, and from local brands to regional and national brands. Awareness on purity and micronutrient delivery is the key growth driver for Tata Salt, even as we increasingly cater to health-conscious consumers with lower sodium alternatives like Tata Salt Lite, Tata Salt Super Lite, and mineral-rich rock salt and black salt. I-Shakti, Shuddh and Crystal salt are being used to drive penetration and growth in the Southern markets.
RTD
The Indian RTD (including packaged water) is estimated to be ~Rs 60,000 Crores, with a large segment of the market being unorganised. Indias per capita consumption is significantly behind other developing/ developed markets but is expected to see strong growth in the medium term with growing per capita income, rising mobility and urbanisation. Within the category, we play in the following segments – packaged drinking water (Tata Copper Plus), Natural mineral water (Himalayan, Tata Spring Alive), fruit-juice based drinks (Tata Fruski) and functional beverages (Tata Gluco Plus, Tata Gluco Plus Jelly Drink, Tata Gluco Plus Sports Drink and Say Never). Our brand Himalayan was the first entrant in the naturally sourced mineral water category (estimated to be Rs 150-200 Crores category) and continues to enjoy leadership position in the Premium sub-segment.
Pulses
Tata Sampann is the pioneer and the first national branded player in the pulses category and enjoys a high brand affinity among its core consumer segment. India is the largest producer and consumer of pulses. The Indian Pulses and Derivatives industry is growing at around 10% with a high penetration of loose and unbranded products. The industry is estimated to be larger than Rs 1.7 lakh crores with less than 2% of the segment being branded. In last few years, we are increasingly seeing organized players entering into the category, which will help drive conversion from unbranded to branded.
Spices
The total branded spices in India form a Rs 23,000+ Crores. It is a highly fragmented market, driven by regional preferences for taste. Straight/Pure spices form a significant share of the market. In terms of consumer dynamics, while there is significant unbranded play in Straight/ Pures, Blended spices is largely a branded market with high customer loyalty. There is an increasing demand for branded products with consumers looking for pure, hygienic, and authentic straight/pure spices and convenient to use blended spices with the certainty of taste. The introduction of small packs and increased product shelf life have also helped in the shift from loose to branded.
Snacks / Ready to Cook
Overall branded snacks are estimated to be Rs 44,000+ Crores segment. Todays consumer wants to be given the option of different flavour choices, including healthier food options and convenience in multiple mini meals. Focus on health and wellness is also reflected in the increasing importance of natural ingredients and functional propositions like protein.
Annual Report 2023-24
Outlook
We will continue to see consumption-led growth in India with a favourable young demographic profile, rising affordability and better infrastructure reach supported by increase in penetration and rising share of the organized market. Conversion to branded packaged food will continue to accelerate in the post pandemic era with consumers making a conscious choice to consume trusted and healthier products. Along with the increase in internet users and access to social media, we are seeing the emergence of digital only brands with a Direct-to-Consumer business model. We will continue to focus on growing and building distribution, investing in improving brand equity and new product innovation centred on the health, convenience and premiumization platform. We will tap opportunities at the intersection of health and taste with both ready-to-eat and quick-to-cook options.
b) Business performance
Tea
We increased our direct reach to around 1.5 million outlets and in terms of overall outlets, crossed 2.6 million (Nielsen). Our market shares continue to remain slightly subdued led by softness in demand in General Trade for low- and mid- tier priced segments. We continue to remain market leaders in the Ecommerce channel. Our marketing campaigns won several awards at different platforms including Indian Marketing Awards, India Digital Marketing Awards, exchange4media amongst others.
The tea business grew by 2% and 4% in volume and value terms during the year. In terms of mix, our premium and sub premium brands delivered very good growth led by brands like Tetley, Tata Tea Gold, and Tata Tea Premium. We launched new products leveraging on the underlying category trends - health and wellness (Tetley Digest Chai, Tetley Immuno Chai, Tetley Green Tea with Kahwa, Tata Tea Gold Vita Care), premiumization (Tetley Premium Black Leaf Tea, 1868 tea bags and range extension, Chakra Gold Premium Leaf tea, Kanan Devan Specialty Tea) and new format / convenience (Liquid tea decoction). We continued with our hyperlocal strategy for Tata Tea Premium and also leveraged cross sampling opportunities of our consumer packs with other TCPL products (e.g. Tata Sampann Spices, Tata Coffee). We also launched new advertisement campaign to highlight the superior taste and quality of our products. We continued with festival specific campaigns e.g. Tata Tea Leaf limited edition pack celebrating the Chhath Puja in Bihar and Jharkhand, Tata Tea Gold celebrating the various handlooms and textile creations of West Bengal during Durga Puja, Teej campaign in Rajasthan by Tata Tea Lal Ghoda to name a few. In the latest edition of "Jaago Re" campaign, we continued with the theme of climate change – one of the biggest environmental issues impacting our planet. We released a new TV campaign on World Environment Day (5th June) using modified verses of popular nursery rhymes to convey the message on the importance of taking action to protect the environment. Over the years, Jaago Re has been used as a platform to talk about social/ contemporary issues as well as inviting call to actions. Similar to last few years, we also ran a social campaign during the Independence Day celebrations with Tata Tea Premium, launching the limited-edition collection inspired by some of the iconic handloom weaves of India (#DeshKeDhaage). The packs brought alive the incredible artistry of Indian craftsmen and their timeless creations - from grandeur of Banarasi Silk in Uttar Pradesh to the intricate Kanjeevaram from Tamil Nadu, illustrious Muga Silk of Assam, and exquisite Paithani of Maharashtra to name a few. This was supported by a TV campaign narrating the story of Handlooms, sung by Usha Uthup, who is also a connoisseur and collector of Indian Handlooms. As a part of the campaign, we collaborated with Okhai, who created a specially curated collection made by weavers available for purchase on their website and we also donated a percentage of the collection from consumers for the welfare of the artisan community.
Under the Tetley umbrella, we launched ‘Tetley premium Black Leaf Tea building on the premiumization platform. We started the year with a TV campaign (#everyBODYcan) supported by activations (e.g. monsoon promotions, Yoga Day) and celebrated the New Year with sequel to the campaign (#IAmMoreThanMyNickname). We also did a packaging refresh for our Green Packet tea. During the year, we launched Tata Tea Chakra Gold Premium Leaf tea as an entry into the premium leaf segment in Andhra Pradesh and Telangana. We onboarded popular star, Rashmika Mandanna, as the brand ambassador and launched an innovative campaign using AI technology.
As part of our health and wellness platform, we launched Tata Tea Gold Vita Care, a tea blend enriched with four essential vitamins D, B12, B6 and B9. This provides the added convenience to consumers to supplement key vitamins with everyday food and beverages as two cups of this tea provides for c.30% of the daily requirement of the 4 essential vitamins. This tea was launched across different channels. We continued to strengthen back-end operations with a number of initiatives including network expansion to support growth ambitions and driving cost efficiency with digitization and improving service levels. Our Packaging Centre in Gopalpur received ‘Outstanding Performance in Food Safety Award in the ‘Small & Medium Manufacturing Food Businesses, Rising Star - Tea category for 2022 at the 13th CII Food Safety Awards. Our Pullivasal Packeting Centre was awarded Gold at the National Awards for Manufacturing Competitiveness 2022-23 by the International Research Institute for Manufacturing (IRIM), recognizing achievements in the implementation of manufacturing excellence and strong competitive strategy in operations.
In April 2024, we acquired 99.9% shareholding in Organic India Private Limited, which has a leading presence in the organic F&B infusions and herbal supplements category. The brand provides a strong platform for ‘Better for You organic products and has established trust with the consumers in 25+ years of its operations. They have developed a hard-to-replicate but scalable back-end infrastructure as they have direct access to 2,500 farmers across 11,000 acres of organic certified land in around 120 villages (total association with 14,500+ farmers). They also have rigorous product testing procedures and possess certifications for major global markets. The acquisition provides a great opportunity to develop high growth, high margin products centred on the Health & Wellness platform. We would be integrating the operations in the next fiscal year.
Coffee
We grew coffee revenues by 29% during the year. We continue to focus on expanding distribution, consumer trials (both for base and innovations) and visibility programs by leveraging on the reach of Tea brands in focus markets. We launched four new innovations during the year – new format (RTD Coffee Cold Brew), new packaging (filter coffee decoction, pour over coffee with Sonnets) and new variants in Tata Coffee Gold (Freeze dried coffee). We celebrated the International Coffee Day with a special coffee anthem dedicated to people of Tamil Nadu, which was made in collaboration with Arivu, a prominent rapper from the region. The anthem built on the ‘Shik, Shik, Shik campaign launched in last few years. We were also co-brand partners for ‘Koffee with Karan, a popular show in the OTT platform.
Liquid Beverages/ Ready-to-Drink
The business maintained its accelerated pace of expansion and recorded, growth of 35% over FY23, despite adverse climatic conditions during peak season which created stress on growth for overall category. We saw broad-based growth across the flagship brands (Tata Copper Plus, Tata Gluco Plus, and Himalayan) as well as increased focus on innovations. We continued to expand our distribution and increased our reach to ~1 million outlets on the back of expansion in manufacturing footprint. New geographies now contribute one-fourth of the overall revenues for the business. During the year, we increased investment behind our brands – and continued to build on the Tata Gluco Plus national campaign ‘Energy On Game On. Performance Review During the year, we did several new launches to expand our product portfolio - new category (Sports Drink, Energy Drink, extending Himalayan play with Saffron), straddling the natural mineral water category (‘Tata Spring Alive) and new packaging formats (Tata Coffee Cold Brew Can and Tata Fruski in Cups). ‘Himalayan Saffron is a premium play in the Kashmiri Saffron category and establishes trust with consumers with every pack coming with first of its kind AI enabled QR code, that allows the consumers to check the superior ‘Grade 1 certificate from the NABL accredited lab by entering the batch number on the pack. It was launched in ecommerce, direct to consumer (Tata Nutrikorner) and select premium retail outlets – and has received good response and is now among the bestsellers on leading e-commerce platforms.
We entered the energy segment with a pilot launch under new brand name ‘Say Never in select markets, Value Proposition Framework supported by digital and social campaign to increase awareness. Tata Gluco+ also tied up with World Champions Team Argentina and launched a new sports variant in partnership with the team. Both the beverages were launched at an attractive Rs 10 price point in a differentiated cup format. Strategy
Salt
We continue to enjoy leadership position in the branded Salt category and expanded market share by 0.5% pts to 38.3% (Nielsen MAT March 24). Tata Salt brand is distributed across 2.5 million outlets. We expanded our weighted distribution by 1.9% points (Nielsen) led by Rurban expansion (expanding reach in lower population urban towns and rural with appointment of direct distributors) and trade engagement programmes. We also increased geographic coverage for our innovation portfolio. Tata Salt Iron Health also won the Aegis Graham Bell Awards in Innovation in FMCG Category. Tata Salt won recognition in events like Emvies and e4m Golden Mikes for its use of digital and radio for integrated media plans in its "Har Sawaal Uthega" campaign.
The overall portfolio grew by 4% and 9% in volume and value respectively. The Premium Salt portfolio grew by 35% during the year. Our key brand in South – Tata Salt Crystal delivered 11% growth. This year we had two launches in the Salt portfolio: (i) Tata Salt Black Salt, a largely unbranded sub-category and (ii) new variants in Ishakti. We renamed Tata Pink Salt launched last year to Tata Salt Sendha + to resonate better with our consumers. In the first quarter of the year, we released a national campaign for Tata Salt (‘Tez Baccho Se Hi Toh Tez Desh Banta Hain) to highlight the role played by iodine, a key ingredient for cognitive development especially for children. On Worlds Iodine Deficiency Day (October 21), we launched a new campaign (‘Shuddhata ka Bharosa) with popular TV actor Rupali Ganguly to re-affirm our commitment to fight iodine deficiency. We also conducted an independent lab study of Tata Salt against 100 other salts, which found that Tata Salt had least amount of water insoluble content amongst other brands, validating the ‘purity of Tata Salt. We also significantly scaled up Tata Salt Immuno (fortified with Iodine and Zinc) by launching it in new states and supporting with media investments.
Pulses, Spices and Others
The Tata Sampann portfolio (Pulses, Besan, Staples, Spices and Dry Fruits) delivered another year of robust growth, emerging as a strong pantry brand with presence across multiple categories. Dry Fruits delivered another strong performance and has now crossed revenue milestone of Rs 50 Crores.
We expanded our Staples range with product extensions (e.g. Red Rajma, Rava Idli Dosa mix, Gulab Jamun mix, Walnuts, trail mix, Indori Poha, Seeds, range in GoFit) and adjacent categories (Daliya, Vermicelli, Makhana, Cold Pressed Oils, Apple Cider Vinegar). In Spices, we did two premium launches – Saffron and Hing to address consumer concerns of authenticity and quality – and have received positive consumer feedback. We expanded our Digital first offerings with Cold Pressed Oil (under Tata Simply Better) and Apple Cider Vinegar (under Tata Gofit brand). We also launched new meal variants in our alternate meat range of Ready to Cook products under Tata Simply Better. Globally there is an increasing focus on plant protein with emphasis on health, sustainability, and animal welfare; but the category is relatively nascent in India. We continued to do focused campaigns for the Tata Sampann brand with popular actors like Manoj Bajpayee and Priyamani as well as celebrity chefs, Ranveer Brar and Sanjeev Kapoor to increase awareness and drive trials. The business also witnessed improved profitability led by structural interventions in procurement and freight. In 2024, we acquired 75% shareholding in Capital Foods Private Limited, owner of the brands ‘Chings Secret and ‘Smith & Jones, with a portfolio of products targeting the in-home consumption of non-Indian cuisines. Chings Secret is the market leader in Desi Chinese across product categories and pioneered the Schezwan Chutney market in India. Smith & Jones is a leader in the Ginger Garlic Paste category and product portfolio in the western cuisine space. The acquisition significantly strengthens our pantry portfolio, providing a play in fast growing categories with strong brand presence and superior margins to the existing product range. We will also be able to drive synergies by leveraging our India distribution network, capitalizing on their strong relationships in key export markets for our product base as well as reduce cost base by integrating backend operations. We have integrated the sales operation for the India business of Capital Foods Private Limited with Tata Consumer Products Limited with billing from our systems initiated from February. We are in the process of integrating the export network (which will allow us to leverage on Capital Foods strong network in select markets), harmonizing backend including financial systems with our India operations – which will be completed in next fiscal year. For FY25, we are aiming to build on the high growth trajectory with outlets expansion supported by brand investment plans.
Snacks / Breakfast Cereals
Tata Soulfull delivered great performance during the year as business scaled by ~1.4x with distribution expansion and innovation. Tata Soulfull was recognized as a Future Forward Star Brand for Product Innovation & Retail in partnership with Reliance Retail at the 16th Edition of India Food Forum. We were also the lead sponsorship partner to Reliance Retail for ‘Maha Millet Mela, millet festival celebrated in select stores to increase awareness. We also did cross sampling of Ragi Bites No Maida pack with Tata Tea Premium in Odisha to drive awareness and consideration (Tata Tea Premium has market leadership in Odisha).
We did three innovation launches in the year – adjacent segments (Granola, Oats) and new categories (Choco Sticks). We received good response for Chocosticks and have recently launched a TV campaign to support our growth ambition. Tata Soulfull Masala Oats+ was the winner in Aegis Graham Bell Awards in Innovation in Food Processing Category. We did a campaign on Ragi Bites No Maida Choco, advertising the promotion with Doraemon sticker. We also launched our first digital campaign for our Muesli range (‘Better Crunch, Wholesome Munch) in top 6 metros. Our Ragi Bites No Maida Choco campaign was named as Breakthrough Innovation Winner by Nielsen BASES.
Ready-to-Eat
We saw moderate growth for the business, albeit on smaller base. In India, we added Institutional customers, expanded presence in Modern Trade and Ecommerce (including Quick Commerce) while exiting General Trade. In US, our products are now available in 800 Albertsons stores and 200 stores in Shop and Stop and we have also further launched Raasa brand in Poland.
Road ahead
We will continue to spearhead distribution-led volume growth in India with favourable macro- and category- dynamics, supported with brand investments. We will also build on innovation to expand portfolio and address potential white spaces with huge future growth opportunity while continuing to explore strategic cost interventions.
3.2 International Beverages Framework a) Industry overview and outlook
Tea
The Global Hot Tea industry is estimated to be around US$ 45-50 billion. While Black/ Everyday Black remains the largest segment, it is facing long term volume challenges as consumer preferences shift towards non-black segments (Green, Fruit & Herbal, Decaf, Specialty, Cold Infusions, among others). Out-of-home consumption has picked up but is still lower than pre-pandemic levels.
There continues to be a strong consumer focus on Health & Wellness/ immunity and transparency on ethical and sustainable sourcing credentials. Ecommerce continues to be an emerging growth channel. Although the rate of growth was impacted during the year owing to inflationary trends, medium-term growth trends remain intact.
Coffee
The size of the retail hot coffee market is double that of tea. The US continues to be the worlds largest coffee market and also faced inflationary headwinds with volume decline. Roast & Ground, Beans, Pods, and Instant Coffee are the four sub-categories of coffee. In strong caf? culture markets like the US – Roast & Ground and Pods contribute a significant portion of coffee market while in emerging coffee markets like Asia and the Middle East – Instant Coffee forms the largest sub-category.
Apart from single origin coffees, we are witnessing increasing consumer interest for caf? inspired blends. Similar to tea, there is an increasing consumer interest for traceable sustainable coffee origins. We are also experiencing the growing influence of social media accelerating online shopping for consumers.
Outlook
The continued impact of inflation and lower growth rates in development economies will make for a softer demand environment continuing into next year.
b) Business performance UK
During the year, the UK business grew by 10% inconstant currency, despite volatile business environment and supply issues led by Red Sea disruption. We grew our market share and now have combined 16.4% share in Tea, improvement by 80 bps led by growth in distribution and stronger execution. We were placed at 3rd position in Advantage Group report across 22 suppliers in core grocery peer group (Advantage Group provides benchmarking study for the suppliers and retailers/ wholesalers).
We launched a radio campaign for Tetley that celebrated the brand as the perfect partner for pausing and re-focusing when distracted. This is part of the ‘For the love of tea, for the love of Tetley series launched previously. We also onboarded Jill Scott, former English footballer as our brand ambassador and featured in supporting campaign activity including media interviews, video assets and social content, and consumer competitions. During the year, we also did packaging refresh for Tetley with an improved blend. The tea is packaged in plant-based tea bags, with no plastic outers, and contained in 100% recyclable box, which is inline with our sustainability agenda. We launched Joyfull, our millet-based muesli range, in over 430 Tesco stores across the UK and supported it with digital and promotional campaigns to drive trials and consideration.
US
Our Coffee business faced a challenging year, as we witnessed demand softness in the category and higher promotional intensity as consumers increasingly became value-conscious in the high inflation environment. The business saw overall revenue decline of 6% in constant currency during the year. We did a digital and social campaign ‘Coffee Craze, targeting younger Gen X customers, which emphasized our products good taste while making light-hearted reference to current coffee culture with different mix-ins and toppings. The advertisement was well received. We are also investing in upgrading our Landover factory.
Tea business revenues declined by 14% led by lower volumes in Good Earth and Tetley, Teapigs continued its strong growth trajectory, albeit on smaller base. We had slow start to Tata Raasa during the year, as we took a strategic decision to prioritize mainly in select markets (with US being the largest) with Tata Sampann Yumside being marketed in Ethnic channels whilst Tata Raasa is launched in mainstream. Tata Raasa is now available in select retailers (Albertsons, Kehe, Shop and Stop) and Amazon with additional distribution coming in the next fiscal year. We also launched a digital campaign (including on Albertsons website) supported by shopper marketing plan to increase awareness and drive trials.
Canada
We continue to hold No. 1 position in the Canadian tea market and delivered revenue growth of 3% in constant currency during the year. Our market shares have been stable compared to previous year. Tetley emerged as the "Most Trusted Tea Brand 2023" - Readers Digest, for the 10th year in a row. We also celebrated our 22nd year of support for breast cancer research with the Canadian Cancer Society, by launching a limited-edition Anniversary Pink Pack design in October 2023 as part of Breast cancer awareness month. Similar to Tetley in UK, Tetley brand would be carrying out a phased transition towards the sustainable premium packaging in the next fiscal year. During the winter season, we partnered with branded player Ricola, manufacturer of herb drops, to run a point of purchase display collaboration with Tetley Super Teas – which received good PR. We followed this with Tetley Specialty PR campaign across different platforms (digital, TV, social, print and radio) which was supported by sampling and in-store displays. We launched new blends in Live range and leveraged social media to increase awareness.
In the year, we added two new SKUs in the ethnic portfolio (Coffee and Quick Chai). Tea remains the largest revenue driver with Tata Tea garnering 0.6% share in Regular Tea category. The key marketing campaigns include the Diwali promotion, including radio, flyer and display, in key retailers followed by "Now in Canada" 360 degree integrated communications campaign targeting 1+ million South Asian population.
Australia
We moved to a new distributor partner in the beginning of 2024 and improved our overall tea market share by 50 bps led by strong performance in mainstream Black category. We also launched teapigs in New Zealand. We continued with the ‘Spill the tea campaign in the year targeting younger consumer set, with activation across film, outdoor, radio and social platforms.
Road ahead
We will continue to drive sustainable profitable growth by building distribution both for beverage (existing) and foods (new) portfolio, supported by investments. We will continue to focus on premiumisation and execute cost-saving initiatives to unlock synergies.
3.3 Non-Branded business
Non branded business grew 5% (4% in constant currency) largely led by the Solubles business. Solubles portfolio, comprising of c.69% of overall non-branded portfolio grew by 6% led by good performance in both Coffee and Tea. The growth in Coffee business, Domestic and Vietnam, was led by better realisation with better mix (increased contribution of value-added products) and unprecedented price increase in Robusta during the year, which partly offset the weakening of demand as seen in some markets led by inflationary environment (e.g. Russia, Europe). The Tea portfolio benefited from strong volume delivery especially improvement in demand mainly in US and customer expansion. The Plantations business, which comprises the remaining ~31% of the total non-branded business, declined marginally by 1%. Lower revenue was mainly due to lower Robusta volumes partly offset by higher Arabica coffee volumes and increased realisation (Robusta Coffee and Pepper). However, the business was able to deliver significant improvement in profitability led by higher realisations in Robusta, benefit of fair valuation gains (with unparalleled price increase seen in Robusta in last few months), improved margin from coffee trading and lower losses in tea with productivity linked improvement and cost optimisation measures. We continue to explore opportunities for yield enhancement, cost optimisation, and diversification for increased value addition.
Our Coffee business was awarded the Ernesto Illy International Coffee Award 2023 for Best Indian Coffee and Third Best Coffee in the World. Tata Coffee also won first place at the third edition of the FICCI Sustainable Agriculture Awards for our initiatives in Natural Resource Management and Climate Resilient agriculture. We also received Food Safety Excellence Award from the Confederation of Indian Industry (CII) at the 13th CII Food safety awards.
Road ahead
We will continue to see uncertainty in Robusta coffee prices, as some analysts estimate that the softening will come in the latter part of the year. We are witnessing early trends of reversal of shift from Robusta to Arabica seen in last two years in some markets.
The demand scenario for Coffee Solubles is improving and we are now starting to see volume uptick in different markets – Africa, Asia, and Middle East. Tea category is also expected to grow as we see volume recovery.
3.4 Others
Tata Starbucks
We expanded our store base to 421 stores by adding a record 95 new stores – higher than the 71 new stores opened in FY23. We increased city count by 19 and are now present in 61 cities. The business was impacted by muted demand in the QSR space and delivered revenue growth at 12%. Tata Starbucks was recognized as one of ‘Indias Best Workplaces for Women by Great Place to Work. We remain committed to investing in the well-being of our partners by providing them with equitable growth opportunities and better benefits. Besides this, Tata Starbucks was also recognised as Best practice for "Signing Stores driven by Persons with Disabilities" by Tata Affirmative Action Convention and Inclusive Workplace winner by Trust for Retailers & Retail Associates of India (TRRAIN) Retail Awards 2024. During the year, we ran number of campaigns to increase store footfall as well as strengthen our Coffee leadership position. We ran national campaign "It starts with your name" celebrating diversity and personal connections, which reached more than 78 million customers. We also collaborated with Netflix India for the movie Archies, which centers on the theme of friendship, and launched new Christmas Promotional drinks. We celebrated
International Coffee week in October with virtual and in store customer interactions.
We partnered with leading fashion designer Manish Malhotra to launch limited-edition lifestyle drinkware merchandize. The collection showcased intricate patterns, reflecting the beauty and craftsmanship of Kashmiri motifs with Manish Malhotra brand, presenting a fusion of global aesthetics and local traditions. The collection featured stoneware ceramic mugs, stainless steel tumblers, and an environment-friendly reusable cup.
Our store Sunview Enclave, Ayali Kalan in Ludhiana was certified as the first greener store in India. Starbucks Greener Store Framework was developed to accelerate the transformation of retail towards lower-impact stores that achieve reductions in carbon emissions, water usage, and landfill waste. The store features an electrical vehicle charging station, rainwater harvesting system to support water conservation, and distributes its used coffee grounds to be used as fertilizer in neighboring developments. The store was also awarded Greener Store of the Year in Asia Pacific, as part of the Starbucks program to award one store in each region to celebrate stores excelling in innovation and environmental impact. We continued our collaboration with TRRAIN, in partnership with Starbucks Foundation. Through this program, we have provided vocational training and mentorship to around 2,000 young women and extended on-the-job learning options for program participants in stores in Bengaluru, Chennai, Delhi, Hyderabad, and Mumbai.
Road ahead
We remain committed to aggressively increasing our store base in India with the intent to reach 1,000 stores milestone by 2028 – which was reaffirmed earlier in the year by the senior leadership from both the JV partners. We will continue to elevate customer and partner (employee) experiences & invest behind infrastructure while executing strategic cost saving initiatives to improve profitability.
4. FINANCIAL REVIEW
4.1 Consolidated performance
Key financials
Revenue from operations at Rs 15,206 Crores, grew by 10% (9% in constant currency) driven by growth in both branded and non-branded business.
- India Business delivered 12% revenue growth.
Our Core portfolio (primarily Tea and Salt) grew by 6% led by premiumisation, volume growth in Salt and improved realisation with favourable mix and impact of price increases taken for Tata Salt in later part of the previous year.
Growth businesses grew by 47% with distribution expansion, partly aided by inclusion of Capital Foods (40% on like-to-like basis). Growth contribution increased from 15% in PY to 19% including Capital Foods.
- International Business grew by 5% in constant currency, driven by price increases taken across markets and full year benefits of Joekels and Bangladesh, which were converted into subsidiaries in the later part of the previous year.
- Non-Branded business revenue grew by 5% (4% in constant currency) driven by higher realisation in soluble business and coffee plantations. Earnings before interest, taxes and depreciation and amortisation (EBITDA) were at Rs 2,323 Crores, improved on absolute terms by 24% over previous year driven by revenue growth and margin expansion. EBIDTA margin at 15.3%, improvement of 170 bps over previous year. Profit before exceptional items and taxes (PBIT) at Rs 2,023 Crores was higher than the previous year by 24%. Exceptional items mainly represent, costs relating to Scheme of Arrangement and acquisition, Asset write-down, Fair value loss on financial instruments and past service costs relating to overseas pension.
Group net profit for the year at Rs 1,215 Crores, lower than the previous year by 8% driven by higher exceptional cost and adverse performance in Joint Venture and Associates partly offset by lower tax expense driven by one-time credit in overseas subsidiaries. Group Net profit before exceptional items higher by 29% over previous year. Earnings per share were at Rs 12.32 for the year as compared to Rs 13.02 in the previous year.
Performance snapshot
The consolidated financial highlights for FY 2023-24 are as follows: -
In Rs Crores
| Particulars | FY2024 | FY 2023 | Change |
| Revenue from Operations | 15,206 | 13,783 | 10% |
| Operating profit before depreciation and amortisation | 2,323 | 1,874 | 24% |
| (EBITDA) | |||
| EBITDA % | 15.3% | 13.6% | 170 bps |
| Operating profit (EBIT) | 1,946 | 1,570 | 24% |
| EBIT % | 12.8% | 11.4% | 140 bps |
| Profit before exceptional items and taxes | 2,023 | 1,634 | 24% |
| PBT (bei)% | 13.3% | 11.9% | 140 bps |
| Exceptional items (net) | (327) | 159 | (305%) |
| Profit before tax | 1,696 | 1,794 | (5%) |
| Profit after tax | 1,301 | 1,347 | (3%) |
| Share of profits/(loss) of JVs and Associates | (86) | (26) | (224%) |
| Group net profit | 1,215 | 1,320 | (8%) |
| Net Profit Margin % | 8.0% | 9.6% | (160 bps) |
| In Rs Crores | |||
| Particulars | FY2024 | FY 2023 | Change |
| Net Worth | 17,436 | 17,127 | 2% |
| Capital Employed | 4,500 | 4,575 | (2%) |
| Goodwill | 10,334 | 8,025 | 29% |
| Brand (indefinite life) | 2,093 | 2,093 | 0% |
| Borrowings (excluding lease liabilities) | 2,954 | 1,183 | 150% |
| Cash & cash equivalents, including current investments and | 3013 | 4,076 | (26%) |
| ICDs | |||
| Net Cash/(Debt) | 118 | 2,945 | (96%) |
| Particulars | FY2024 | FY 2023 | Change |
| Return on Capital Employed (RoCE) % | 43.25% | 34.31% | 894 bps |
| Return on Net Worth (RoNW)% | 7.03% | 7.90% | (87 bps) |
| Basic EPS (/Share) | 12.32 | 13.02 | (5%) |
| Debtors turnover (Days) | 20 | 22 | 6% |
| Inventory turnover (Days) | 66 | 66 | 0% |
| Interest coverage ratio | 14.49 | 21.28 | (32%) |
| Current ratio | 1.20 | 2.12 | (43%) |
| Debt equity ratio | 0.20 | 0.09 | (113%) |
1. Return on Capital employed improved mainly due to higher operating profits.
2. Adverse movement in Current ratio and Debt-Equity ratio is driven by higher borrowings and utilisation of cash to fund acquisition.
4.2 Standalone performance
Key financials
Revenue from operations at Rs 9,998 Crores, higher than the previous year by 11%, driven by growth in both Branded and Non-Branded business. Branded business growth led by volume and value increase in Tea and Salt (premiumisation and price increase) coupled with continued growth momentum in Tata Sampann portfolio which grew by 42%. Non-Branded business growth driven by higher realisation in Coffee domestic solubles business. Earnings before interest, taxes and depreciation and amortisation (EBITDA) at Rs 1,602 Crores, higher by
15%. EBITDA margins at 16.0% improved by 70 basis points on account of lower tea costs and premiumisation partly offset by higher investments on brands and sales & distribution infrastructure.
Profit before exceptional items and taxes (PBIT) at Rs 1,567 Crores was higher than the previous year by 14%. Exceptional items mainly represent, costs relating to Scheme of Arrangement and acquisition, Fair value loss on financial instruments and impairment of investment in a subsidiary. Profit after tax at Rs 981 Crores was lower than the previous year by 12%) driven by higher exceptional costs.
Performance snapshot
The standalone financial highlights for FY 2023-24 are as follows: -
In Rs Crores
| Particulars | FY2024 | FY 2023* | Change |
| Revenue from Operations | 9,998 | 9,046 | 11% |
| Operating profit before depreciation and amortisation | 1,602 | 1,388 | 15% |
| (EBITDA) | |||
| EBITDA % | 16.0% | 15.3% | 70 bps |
| Operating profit (EBIT) | 1,424 | 1,228 | 16% |
| EBIT % | 14.2% | 13.6% | 60 bps |
| Profit before exceptional items and taxes | 1,567 | 1,380 | 14% |
| Exceptional items (net) | (215) | 108 | (299%) |
| Profit before tax | 1,352 | 1,488 | (9%) |
| Profit after tax | 981 | 1120 | (12%) |
| Net Profit Margin % | 9.8% | 12.4% | (260 bps) |
In Rs Crores
| Particulars | FY2024 | FY 2023* | Change |
| Net Worth | 13,607 | 13,378 | (2%) |
| Capital Employed | 9,363 | 5,660 | (65%) |
| Goodwill | 3,579 | 3,579 | 0% |
| Brand (indefinite life) | 2,093 | 2,093 | 0% |
| Borrowings (excluding lease liabilities) | 1,444 | 138 | 946% |
| Cash & cash equivalents, including current investments and | 574 | 2,632 | (78%) |
| ICDs | |||
| Net Cash/(Debt) | 870 | 2,495 | (135%) |
| Key financial ratios | FY2024 | FY 2023* | Change |
| Return on Capital Employed (RoCE) % | 15.21% | 21.69% | (648%) |
| Return on Net Worth (RoNW)% | 7.27% | 8.42% | (115 bps) |
| Basic EPS (Rs/Share) | 10.29 | 11.81 | (13%) |
| Debtors turnover (Days) | 16 | 16 | (1%) |
| Inventory turnover (Days) | 57 | 64 | 11% |
| Key financial ratios | FY2024 | FY 2023* | Change |
| Interest coverage ratio | 25.49 | 58.65 | (56%) |
| Current ratio | 0.83 | 2.46 | (66%) |
| Debt equity ratio | 0.13 | 0.03 | (350%) |
1. Return on Capital employed declined mainly due to higher capital employed consequent to acquisition.
2. Adverse movement in Current ratio and Debt-Equity ratio is driven by higher borrowings and utilisation of cash to fund acquisition.
* The comparative numbers have been restated to give effect to the scheme of amalgamation from the beginning of the previous year.
5. RISK MANAGEMENT
The Board of Directors of the Company has formed a Risk Management Committee to frame, implement and monitor the risk management plan for the Company. The Committee is responsible for reviewing the risk management plan and ensuring the effectiveness. The Committee considers the risks that impact the mid-term to the long-term objectives of the business, including those reputational in nature and provides an update to the Board on the Companys risks and mitigation plans outlined in the risk registers. The Audit Committee has additional oversight in the area of financial risks and controls.
The Company has an elaborate Enterprise Risk Management Policy and Charter defining the risk management governance model, risk assessment and prioritization process. Additionally, the ERM process has been further strengthened through Executive Risk Governance Committee (ERGC) comprising of CEO, CFO, COO, Business Heads, Function Heads and ERM team. ERGC periodically reviews significant risk exposures and ensures appropriate mitigations are defined. The effectiveness of the mitigation plans deployed is measured through key performance indicators. The ERM team also collaborates closely with business / functions to identify external and emerging risks, assess the potential impact and develop robust mitigation strategies.
Please refer page no. 212 of integrated reporting section of this report for risk management process and key risks including the mitigation measures deployed.
6. INTERNAL CONTROLS AND INTERNAL AUDIT
Ourinternalfinancialcontrolframeworkiscommensurate with the size and operations of the business and is in line with the requirements of the regulations. We have laid down adequate procedures and policies to guide the operations of our business. Unit/functional heads are responsible for ensuring compliance with the policies and procedures laid down by the management. Our internal control systems are periodically tested by the Management, Statutory Auditors and Internal Auditors.
Internal Audit (IA) at the Company is an independent and objective activity designed to provide assurance to senior management and add value by identifying opportunities to deliver business benefits and improvements to internal controls. It helps us accomplish our objectives by bringing a systematic and disciplined approach to evaluating and improving the effectiveness of processes, controls, and governance. The internal audit function carries out a focused and risk-based annual internal audit plan approved by the Audit Committee using a 10-factor risk approach. Our IA is differentiated by utilising better data analytics tools, like home- grown and developed analytics platform, ‘Tgo, and its mix of in-house domain specialists. IA activities for the new business were integrated within the Tata Consumer team. The IA team is working closely to extend the good IA practices to the IA teams for JV, associates, and subsidiaries to enhance the coverage and increase efficacy.
7. CYBER SECURITY
We have adopted the NIST Cyber Security Framework to provide effective and efficient risk management across the organization. We have taken various initiatives to identify and address potential security threats and ensure the safety of our IT systems and data.
Security measures:
To identify and understand assets and threat vectors, we have implemented various security measures such as assessing security defects and weaknesses and performing penetration testing on all IT assets. We have also conducted various other security assessments to reduce the chances of an attacker breaching our IT systems.
Strengthened security operations
We have solidified the managed Security Operations Centre (SOC) and aligned our policies and procedures with CERT-In guidelines and CERT-In playbooks for proactive monitoring, response, and recovery to any cybersecurity incidents that may occur.
Cybersecurity awareness
We have prioritized creating and improving cybersecurity awareness by educating and training users about the latest threats, policies, and best practices for risk mitigation. This includes enforcing cyber policies, introducing phishing campaigns, conducting tailored security training and assessments, and publishing various security awareness mailers.
Data safeguards
We have ensured strong safeguards of data and information by monitoring, detecting, and preventing unauthorized privileged access to critical resources. We have also enforced security controls, policies on the usage of smartphones, tablets, and other endpoints and prevents potential data breaches and ex-filtration transmissions. These measures provide better visibility and control over data usage within the organization. Our adoption of the NIST Cyber Security Framework and various initiatives for risk management have significantly contributed to the protection of our data and IT systems. Our focus on cybersecurity awareness and data safeguards has also helped us to minimize potential security threats and ensure business continuity.
8. HUMAN RESOURCES AND INDUSTRIAL RELATIONS
We have ~4,000 full-time employees across our businesses and markets. Another ~4000 Staff are employed off roll in supporting frontline sales, supply chain, and enabling functions. As we seek to accelerate our journey to becoming a premier global FMCG organization, our integrated People agenda is focused on shaping a Future-Ready organization that delivers value, without compromising on our core Values :
1) Attracting & Retaining Talent with a competitive and differentiated Employer value proposition: Given the dynamic nature of our business and the FMCG sector, there is a need to constantly adapt to current and emerging challenges, even as we stay true to our core values. a. Attracting and retaining Talent is crucial to ensuring we have the right people in place to drive our organisation forward. This conviction leads us to champion #ForBetter Opportunities, thereby creating a dynamic workplace and upholding ethical standards that align with our organisational ethos. While overall attrition has been at 18%, we are experiencing higher attrition specifically in sales frontline positions, which is currently being focused upon. b. Of the over 300 people hired in the previous year, a significant focus has been placed on fortifying our sales team and positioning ourselves for accelerated growth. External hiring efforts have targeted emerging and specialist domains, including e-commerce, category marketing, strategic procurement, digital and AI, strengthening our capabilities and ensuring a diversified, skilled workforce that propels our success. c. In order to develop ‘fit for future capabilities, we have focused on initiatives geared to help all our People thrive and grow, creating an inclusive environment, where they are provided a range of learning opportunities and enable well being. d. Our efforts across business schools has enabled a movement from #15 to #11 in the FMCG sector per the ‘UnStop Campus study. e. Besides FTEs, we have also focused on ensuring dignity of labour, fair wages and a respectful workplace for Off-Roll employees, keeping also with the compliance per the contract labour regulations applicable in India.
2) Embedding TCP Growth mindset & Behaviours:
We are building high-performing, consumer-focused teams while nurturing a diverse and inclusive work environment. Central to our approach lies the purposeful embedding of a ‘Growth Mindset, which is firmly anchored in our core values. a. This encapsulates our aspirations for our organization as well as the professional & personal aspirations of all our People who are driving this journey. b. We are shaping the DNA of Tata Consumer Products by aligning our people processes with the signature Behaviours associated with a Growth Mindset. c. Our Reward and Recognition framework is designed to celebrate wins and inspire people to aim higher by unlocking the value of cross functional collaboration aim higher. We have platforms like Gratitude Tree, Spotlight awards, Great Job Caf?, ACE Teams, and the Annual Hall of Fame. These straddle individual and team based recognition of excellence and demonstration of Growth Mindset & Behaviours.
3) Enabling FMCG Sector leading Productivity:
Given our current Employee cost to Revenue ratio of 4.3%, we believe our workforce is fuelled by a shared passion for creating better products for a better life. Our People thrive in an environment designed to inspire peak performance and productivity where everyone strives #ForBetter. a. We emphasise diversity and inclusion; facilitate collaboration and creativity, nurturing a progressive workforce. b. Our annual employee engagement survey serves as a valuable tool, offering insights into the organisations pulse, identify areas for improvement and enhance the overall employee experience within the organisation. 89% Employees participated in the survey this year, resulting in an overall engagement index of 72. Action plans are developed and implemented throughout the year, with progress tracked to gauge success in the subsequent year. This year, the Executive Committee decided to reduce the frequency of surveys from twice a year to once, with the primary focus shifting to action planning and initiatives that help drive engagement. c. Ensuring the well-being of our team members is integral to enhancing productivity. In keeping with this, we have instituted a comprehensive wellness programme encompassing stress management, mental health support, physical fitness and financial management. Notably, we observed Mental Health Awareness Month in October, a testament to our dedication to raising awareness, providing tools for emotional health management and ensuring the availability of Employee Assistance Programme (EAP) support for our team members. 500+ Employees benefited from our well-being initiatives. d. We have introduced a Well-being App in our international business, underscoring our commitment to prioritising the health of our personnel wherever they are present. In the UK, trained Mental Health First Aiders are available to guide and support team members in need of assistance. e. We celebrate Diversity, Equity and Inclusion through myriad perspectives, backgrounds, ethnicities, ages and genders that enrich our workforce, embracing a culture of inclusion and diversity. At Tata Consumer, authenticity is not just encouraged; instead, it is a cornerstone of our ethos, which empowers every individual to bring their whole selves to work. Platfoms like Global Womens Inclusion Network, Simply Supportive mentoring programmes, Onederful World initiatives, are all helping drive the DEI themes.
4) Investing in the development of Mission Critical Skills : We are a learning organisation focused on the continuous improvement of our teams and team members. To help our people unlock their potential, we offer a wide range of tailored learning experiences and resources at every stage of their professional journey. These initiatives focus not only on honing functional or business-specific skills but also on cultivating broader professional and general management competencies. a. Following a proactive approach to employee development, we consistently enrol our workforce in targeted programmes at the Tata Management Training Centre, ensuring the acquisition of pertinent professional skills across various organisational levels. b. Our integrated Learning Management System, in collaboration with LinkedIn Learning, provides access to a vast repository of over 18,000 learning resources. This platform serves as a comprehensive hub for both professional and functional skill development. ‘EdgeforMe, our centralised learning platform, has been reimagined and institutionalised as the go-to destination for all learning needs. c. SkillUP For Better, is a functional skill-building initiative aimed at building a future-ready and resilient organisation by investing in mission-critical skills across sales, R&D, marketing, procurement and digital functions that empower both teams and individuals. Complementing digital learning, our in-person workshops focus on building functional skills customised to specific departments. Notable workshops include the fundamentals of sensory technique for R&D, consumer sensitivity workshops for the marketing team in packaged foods and agile project management for the digital team, to name a few. These workshops leverage external consumer reports and sales data to identify real-time opportunities, ensuring our teams are well-equipped to navigate the dynamic FMCG landscape.
5) Empowering the leaders of tomorrow: We focus on cultivating impactful excellence and ensuring our leaders possess the requisite capabilities for effective strategy execution. We make targeted investments in future-fit, critical and scarce skills development to equip our workforce for the future. a. Our robust assessment of potential candidates for leadership positions involves identifying and nurturing their readiness through targeted interventions. These interventions encompass on-the-job experiences, cross-functional projects, talent mobility across departments, executive coaching and engagement in leadership development programmes conducted in collaboration with the Tata Management Training Centre, Pune. b. Leadership Voyage is our flagship general management programme is implemented as a high-impact developmental intervention. Tailored to align with our growth aspirations and customised to fit the dynamic FMCG landscape, this programme is instrumental in shaping leaders who can steer the organisation towards long-term success. c. S.O.A.R capability development Recognising the significance of interpersonal skills in team building, we have successfully implemented the S.O.A.R. Manager Capability Development programme for the past three years. This initiative empowers people managers to achieve the right balance of skills, fostering high-performing teams that substantially contribute to our organisational objectives. d. We have a robust entry-level cadre building programme to develop skilled leaders who share our strategic vision. Emerging Leaders Plus (ELP) : Through this initiative, we identify promising postgraduates from renowned business schools, providing them with essential skills for management roles. Canvas: This programme offers hands-on experience to young chartered accountants, preparing them for future finance leadership roles. Future CSMO Leader : This initiative equips recent graduates with a strong foundation for successful careers in the domain of Commodity Sourcing and Management.
6) Cultivating a culture of Workplace Accountability and harmonious ER/IR: We prioritise workplace accountability and urge our employees to take ownership of their conduct and choices especially when no one is watching. a. We clearly communicate our Tata Code of Conduct, instilling a sense of deep responsibility about upholding the reputation of the Organization and oneself at every level and ensuring that our actions and decisions are guided by ethics.
b. As part of our commitment to empowering our people managers, we conducted organisation-wide capability-building sessions. These sessions focused on essential aspects such as industrial relations, employee relations and team management, equipping our managers with the requisite skills to establish enduring employee relations. c. We respect the right to associate and form unions, and engage in collective bargaining exercises in an atmosphere of harmonious employee relations. d. Our Tata Code of Conduct (TCoOC) designed to raise awareness and enhance understanding of ethical conduct guidelines across the organisation, fostering a culture of accountability in our everyday operations. e. We are pursuing the digitalisation of our compliance processes, particularly those pertaining to relations with contract labour.
We intend to introduce an in-house dashboard that will serve as a centralised platform for managing and accessing compliance-related information.
The number of permanent employees on the rolls of the Company as on March 31, 2024, was 3,488 employees.
FORWARD-LOOKING STATEMENT
Certain statements made in the Management Discussion and Analysis Report relating to the Companys objectives, projections, outlook, expectations, estimates, and others may constitute forward-looking statements within the meaning of applicable laws and regulations. Actual results may differ from such expectations, whether expressed or implied. Several factors could make a significant difference to our operations. These include climatic and economic conditions affecting demand and supply, government regulations and taxation, any epidemic or pandemic, and natural calamities over which we do not have any direct/indirect control.
+91-9892691696
2024, IIFL Securities Ltd. All Rights Reserved
Follow us on
ATTENTION INVESTORS
- Prevent Unauthorized Transactions in your demat / trading account Update your Mobile Number/ email Id with your stock broker / Depository Participant. Receive information of your transactions directly from Exchanges on your mobile / email at the end of day and alerts on your registered mobile for all debits and other important transactions in your demat account directly from NSDL/ CDSL on the same day." - Issued in the interest of investors.
- KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.
- No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
www.indiainfoline.com is part of the IIFL Group, a leading financial services player and a diversified NBFC. The site provides comprehensive and real time information on Indian corporates, sectors, financial markets and economy. On the site we feature industry and political leaders, entrepreneurs, and trend setters. The research, personal finance and market tutorial sections are widely followed by students, academia, corporates and investors among others.
Risk Disclosure on Derivatives
- 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
- On an average, loss makers registered net trading loss close to Rs. 50,000.
- Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
- Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost.
Copyright © IIFL Securities Ltd. All rights Reserved.
Stock Broker SEBI Regn. No: INZ000164132, PMS SEBI Regn. No: INP000002213, IA SEBI Regn. No: INA000000623, SEBI RA Regn. No: INH000000248
We are ISO 27001:2013 Certified.
This certificate demonstrates that IIFL as an organization has defined and put in place best-practice information security processes.