Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Tata Global Beverages — Investor Presentation (September 2015)
42 slides from Tata Consumer Products's investor presentation, September 2015
Slide 1: Investor Presentation September 2015
Investor Presentation September 2015 1
Slide 2: Disclaimer
Disclaimer Certain statements made in this presentation relating to the Company’s objectives, projections, outlook, expectations, estimates, among others may constitute ‘forward-looking statements’ within the meaning of applicable laws and regulations. Actual results may differ from such expectation
Slide 3: Tata Global Beverages – key facts
Tata Global Beverages – key facts Who? A leader in good for you beverages Tata heritage with global brand ownership What? The second largest tea company in the world. • Tea represents 74% and Coffee represents 25% of Total turnover Growing interests in other beverage products Over 3000 employees wor
Slide 4: Tata Global Beverages - History
Tata Global Beverages - History Domestic strategy Global branded strategy Vertically integrated 2006 2006 2009 2011 Acquisition of Acquisition Acquisition NourishCo (JV with PepsiCo) 1960s of Jemča Eight O’Clock of Grand formed / JV formed with Investment in plantations in Coffee Starbucks / MOU wit
Slide 5: Our global presence
Our global presence WATER / FUCTIONAL WATER 5
Slide 6: Our Business Profile
Our Business Profile Region wise branded turnover - 2015 40% Segmentwise Turnover- 2015 32% 28% 74% 25% USA, Canada, Australia GB, EMEA and Africa South Asia 1% Tea Coffee Others Approx. 90% of our sales comes through our Branded Business whilst 10% of our sales is through Non Branded Business 6
Slide 7: Our Vision/Purpose Statement
Our Vision/Purpose Statement Our Vision “To be the most admired natural beverages company in the world by making a big and lasting difference in Tea, Coffee and Water” Our Purpose “We will focus on creating magical beverage moments for consumers and an eternity of sustainable goodness for our consum
Slide 8: Our Strategy
Our Strategy Key Trends /Opportunities - Consumers WATER / FUCTIONAL WATER Premium tea segments growing Health and wellness Increasing disposable incomes Cocooning – Café Experiences - CSD declining Growth in new formats Sensory Fusion – exotic flavours -“Better for you” options Retail tea
Slide 9: Our Tea Strategy
Our Tea Strategy Grow Base Business Brand Engagement Format innovations Brand leaders in select countries Markel leaders in India and Canada* 2nd largest in volume terms in UK* Significant presence in key markets *Neilson data March 2015 Premiumising Grow beyond black Grow in key under-expl
Slide 10: Our Coffee Strategy
Our Coffee Strategy Win with PODs Brand Engagement Expand Range Geographic expansion Beyond the bean - Expanding in markets where there is - Alternative formats adequate growth opportunity - Growth through - MAP brand acquisition gives foothold in Australia and neighboring countries 10
Slide 11: Our Water Strategy
Our Water Strategy WATER / FUCTIONAL WATER Brand Engagement Functional Beverages Premiumising Build Scale New Product development - Expanding within India - health and wellness - international opportunities - Innovation for untapped segments - customer led innovation - value proposition 11
Slide 12: Tata Global Beverages – Managing the business
Tata Global Beverages – Managing the business 12
Slide 13: Management Structure
Management Structure Tata Global Beverages Limited Branded Non Branded Business Business ~ 90% ~ 10% Extraction ~5% CAA EMEA South Asia (Canada, America and (Europe , Middle East (India, Pakistan and Australia) and Africa) Bangladesh) ~ 27% ~28% ~35% Plantation ~5% Alliances (Nourishco and Starbucks
Slide 14: Branded Business - CAA
Branded Business - CAA Canada • Market Leader in Hot Tea - #1 in value and volume • Tetley has the highest loyalty and penetration rates in Canada • Consumer insight driven with a history of successful innovation. • Successful Tea pod relationship with Tassimo. USA • Present in both tea and coffee s
Slide 15: Branded Business - CAA cont’d
Branded Business - CAA cont’d USA cont’d • Strong and successful relationship with Keurig in both tea and coffee • #4 largest brand in K-Cups for coffee. • Majority ownership in one of the largest food service business in the US • 56% JV with Harris Freeman • focuses on food service distribution in
Slide 16: Branded Business - EMEA
Branded Business - EMEA EMEA Present primarily in tea and to a lesser extent coffee. Tetley is no 1 brand in Decaf sector and No 2 brand in the Green sector in UK First to launch Super Green Teas which has proven health benefits Strong distribution reach in UK. Tea Pigs, our premium brand, is in a g
Slide 17: Branded Business - South Asia
Branded Business - South Asia Volume and Value Market leaders in Tea in India – a market with significant opportunities Strong portfolio of brands Tata Tea Premium, Tata Tea Gold and Tata Agni - Available across the country and with dominant share in North and East India. Tetley – Pioneered gree
Slide 18: Branded Business South Asia – Alliances
Branded Business South Asia – Alliances Nourishco – 50:50 JV company formed between Tata Global Beverages and Pepsico Marketing and distribution of products in the area of non- carbonated ready-to-drink beverages, focused on health and wellness. Tata Starbucks - Tata Global Beverages Limited has e
Slide 19: Non Branded Business - Extractions
Non Branded Business -Extractions Agglomerated Spray Dried Coffee Extraction • 2 Plants in India with a total capacity of 8400 TPA • Producing 3 variants : Spray, Agglomerated & Freeze Dried. • Major markets are Russia, CIS, SE-Asia, West Africa & targeting Far East Freeze Dried Tea Extraction • Tea
Slide 20: Non Branded Business - Plantations
Non Branded Business - Plantations Plantations Producing Coffee, Tea, Pepper & Timber. Asia’s largest producer of coffee - 10,000MT. India’s largest pepper producer. Have minority stake in tea plantation companies in North & South India and Sri Lanka Supply arrangements with branded business. 20
Slide 21: Tata Global Beverages – Major Brands
Tata Global Beverages – Major Brands 21 21
Slide 22: Our brands
Our brands GLOBAL BRANDS OTHER BRANDS 22
Slide 23: Relative contribution of brands
Relative contribution of brands Branded Turnover - 2015 Indian Tea Tetley Brands 34% 36% Others Eight O Clock 9% Grand 14% 4% Jemca 1% Vitax Good Earth 1% 1% 23
Slide 24: Our global brands: Tata Tea / Teapigs
Our global brands: Tata Tea / Teapigs About Tata Tea Tata Tea has been rated as the second most trusted hot beverage brand in India and accorded ‘Super Brand’ status Tata Tea is the largest brand by volume and value in India Promotes Social awakening and action through the landmark ‘Jaago Re’ campai
Slide 25: Our global brands: Tetley
Our global brands: Tetley About Tetley Enjoyed in over 40 countries worldwide 175 years of British heritage. 2nd largest tea brand, globally Market leaders in Canada Market leader in Decaffeinated and fastest growing brand in Green tea segment in the UK Significant presence in other markets Strong i
Slide 26: Our global brands: Himalayan/ Good Earth
Our global brands: Himalayan/ Good Earth About Himalayan Himalayan is a premium, lifestyle, mineral water brand in India’s top metropolitan markets It’s unique packaging and brand philosophy has helped it to break through in a crowded market place Distribution alliances with Pepsi and Starbucks Expl
Slide 27: Our brands: EOC
Our brands: EOC About Eight O’Clock Eight O’Clock is a value gourmet coffee brand with national distribution in the US; limited distribution in Canada Rich heritage (since 1859); recognized for great taste and value Named one of America’s Greatest Brands in the 2010 edition of America’s Greatest Bra
Slide 28: Our brands: Tata Gluco +/ Tata Water +
Our brands: Tata Gluco +/ Tata Water + Tata Gluco + Various flavoured drink to provide instant energy and refreshment to consumers Contains the benefits of Glucose, Electrolytes (mineral salts) and Iron Packaging format that ensures product quality at a value price point without compromising on sens
Slide 29: Tata Global Beverages – Innovations
Tata Global Beverages – Innovations 29
Slide 30: Some innovations under our brands
Some innovations under our brands 30
Slide 31: Some more innovations under brands
Some more innovations under brands 31
Slide 32: Tata Global Beverages – Focus on Sustainability
Tata Global Beverages – Focus on Sustainability 32
Slide 33: Our Focus on Sustainability
Our Focus on Sustainability Sustainability Strategy • Sustainability & CSR policy & strategy for integrated sustainability transformation in the organization. • Consolidation of Sustainability & CSR budgets -simplicity, accountability & transparency. • Implement Sustainability Performance Management
Slide 34: Tata Global Beverages – recognition and achievements
Tata Global Beverages – recognition and achievements 34
Slide 35: Recognition and achievements
Recognition and achievements \ TGB Retains Leadership in CDLI 2014 with an Increased Score while Eaglescliffe factory is recognised as a best practice for energy efficiency. 50+ awards won for PO49 Campaign including the prestigious EMVIES, IMA, Goafest. Eight O’Clock Coffee takes home two Reggies -
Slide 36: Tata Global Beverages – Financials
Tata Global Beverages – Financials 36
Slide 37: Performance for YTD 2014-15 and 2013-14
Performance for YTD 2014-15 and 2013-14 INR Crs Year Ended March Particulars 2015 2014 Total Operating Income 7993 7738 EBIT 642 623 Profit Before Exceptional Items 630 618 Exceptional Items (130) 89 Profit before Tax 500 707 Profit after Tax 284 522 Group Consolidated Profit 248 481 37 37
Slide 38: Segment Performance - YTD 2014-15
Segment Performance - YTD 2014-15 Segment -2014/15 (Rs Crs) Tea Coffee Others Total Segment Revenue 5880 2010 103 7993 (Segment Revenue as a % of Total Revenue) 74% 25% 1% 100% (Segment Revenue as a % of Total Revenue - PY) 74% 25% 1% 100% Segment Results 615 264 (44) 835 (Segment Results as a % of
Slide 39: Strong Balance Sheet
Strong Balance Sheet Particulars March 2015 (In Rs Crores) SOURCES OF FUNDS Shareholder’s Funds 6368 Borrowings 1324 Non Current Liabilities (net) 249 TOTAL 7941 APPLICATION OF FUNDS Fixed Assets: Goodwill 3892 Others Fixed Assets 1077 Investments 622 Cash & Other Deposits 1225 Current Assets (net)
Slide 40: Increase in dividend payout and market capitalisation
Increase in dividend payout and market capitalisation Market Capitalisation increases to Rs 9220 crores in March 2015 from Rs 2948 crores in March 2005….an increase of 3 times. 124 In Rs Crs 142 139 133 133 124 124 108 92 92 67 56 2005/06 2008/09 2011/12 2014/15 2004/05 2006/07 2007/08 2009/10 2010/
Slide 41: Thank You
ne fac oer atte CF ~ TATA TEA
Slide 42: Tata Global Beverages
TATA GLOBAL BEVERAGES @p TATA
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