Tata Consumer Products Limited · NSE:TATACONSUM
Tata Consumer Products — Investor Presentation (June 2022)
39 slides from Tata Consumer Products's investor presentation, Jun 10, 2022
Slide 1: Genesis and journey so far
Genesis and journey so far June 2022
Slide 2: Agenda
Agenda About us Market Opportunity Business Overview – India & International JV and Associates Strategic pillars & progress Financial Performance in FY22 2
Slide 3: About us
Slide 4: We are Tata Consumer Products
We are Tata Consumer Products In a Nutshell Integrated F&B company #2 branded Tea player with rich heritage of Tata, globally aspiring for a larger share of the FMCG World ₹12.4 K crore consolidated Reach north of 200 mn revenue in FY22 and current households in India and market cap of ~₹72k* Cr. di
Slide 5: Creation of Tata Consumer Products
Creation of Tata Consumer Products Merger of the consumer products business of TCL with TGBL led to the creation of Rationale for the Merger Tata Consumer Products Limited (TCPL) • Create a consolidated platform for Tata Group’s consumer Tata Global Beverages Tata Chemicals Tata Consumer Products Li
Slide 6: Market Opportunity
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Slide 7: Large Addressable Market - India
Large Addressable Market - India Strong growth in consumption Growth drivers (‘000) crores) 1,322 CAGR Rising disposable incomes– 1.4x by 2025 216 13% Urbanization- 49% by 2030 CAGR: ~14% Premiumization 274 17% 1-3% shift p.a. 478 83 Shift to organized sector 77 231 15% Health &Wellness 78 accelerat
Slide 8: Business Overview – India & International
) CO ORRIN SC CC Business Overview — India & International
Slide 9: India - Tea
India - Tea Quick Facts - Tata Tea Legacy of over 35 years India’s 2nd largest tea brand with 1 in every 3 Indian households consuming a Tata Tea brand Recognized as one of the 'Most Established itself as an iconic brand Purposeful Brands’ in India in in India and brought in a wave of social the Kan
Slide 10: India - Coffee
India - Coffee Quick Facts – Sonnets by Tata Coffee First coffee brand of TCPL offered Premium range with 9 variants of single on a D2C platform in India origin, microlot roast & ground coffees from our finest estates in Coorg & Chikmagalur Quick Facts – Instant Coffee brands Tata Coffee Grand - A f
Slide 11: Foods - Salt
Foods - Salt A wide portfolio range to cater to all consumers Quick Facts Tata Salt Tat Salt Crystal Vacuum evaporated Sea crystal iodised iodised Micronutrient delivery India’s first packaged Vacuum evaporated (for mass India seeking iodized salt and untouched by hand across affordable salt) Shuddh
Slide 12: Foods - Tata Sampann
Foods - Tata Sampann Quick Facts Pulses Launched in 2015 as an umbrella Offers products ranging from traditional brand for Foods category Indian ‘staples’ and extending to modern Indian plate through Spices ‘Convenience’ & ‘Snacking’ formats Leading national brand in Pulses in Pulses are unpolished
Slide 13: Foods - Tata Soulfull
Foods - Tata Soulfull 1 Kids portfolio – Nutrition for the kid, guilt free for the mother Key attributes Plays in the fast-growing categories – Differentiated offerings in the Health & breakfast cereals, healthy snacks, mini- Wellness space with rich expertise in meals ancient millets like ragi 2 Mu
Slide 14: Foods – Tata Q
Foods – Tata Q Key highlights Commenced operations in 2019 and Operates with state-of-the-art became #2 player in Ready-to-Eat manufacturing in India which offers a range (RTE) market in India within a short of innovative and differentiated products time manufactured using MATS technology TCPL to le
Slide 15: International – Tea
International – Tea Quick Facts – Tetley 2nd largest tea brand globally, with Presence in over 40 countries a heritage of over 180 years #1 in Canada Expanding in high-growth non-black #4 in the UK teas, in addition to black tea Leading in innovation – the first to Tetley is the highest awarded UK t
Slide 16: International - Specialty Teas
International - Specialty Teas Quick Facts - Teapigs Winner of over 150 Great Taste awards and #1 super premium tea brand in the UK counting 1st tea company to be plastic-free certified Sold and served in over 40 countries with a diversified presence across channels Quick Facts - Good Earth A wide l
Slide 17: International (US) – Coffee
International (US) – Coffee Quick Facts The Eight O'clock story started 150 #4 R&G coffee brand in the US years ago when the iconic brand launched America's original gourmet whole bean coffee Eight O’ Clock's coffees are served Our award-winning 100% Colombian in bags, ground, and whole beans beans
Slide 18: Liquid beverages (Nourishco)
Liquid beverages (Nourishco) Natural mineral Glucose Energy Fruit-based Packaged drinking water drink beverages water #1 Natural Mineral water brand TGP - unique & affordable on-the-go energy Uniquely positioned as a local India’s 1st Nutrient water in India drink culture/street inspired bevera
Slide 19: Tata Coffee (58% subsidiary)
Tata Coffee (58% subsidiary) Coffee Extraction (Instant Coffee) • Asia’s largest integrated coffee company, the second largest exporter of Instant Coffee and foremost producer of Specialty Coffee in India • Leading player in the B2B Instant Coffee industry • Operates with two instant coffee manufact
Slide 20: JV and Associates
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Slide 21: Tata Starbucks (50:50 JV)
Tata Starbucks (50:50 JV) • 50:50 JV between TCPL and Starbucks Coffee International Inc. • Operates at 268 stores in 26 cities*, with multiple store formats – High street, Malls, Airports, Offices, Hospitals, Highways and Store-in-Store. • Starbucks recognized as Top #100 Workplaces for Women in In
Slide 22: Associate Companies
Associate Companies APPL (Amalgamated Plantations) KDHP (Kanan Devan Hills Plantation Company ) • Based inAssam & West Bengal (East/North East India) • Based in Kerala (SouthIndia) • Second largest tea plantation company in India • Spread over 22,000 Ha - 7 TeaEstates • Spread over 24,500 Ha - 25 Te
Slide 23: Strategic pillars & progress in FY22
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Slide 24: Strategic Pillars
Strategic Pillars The picture can't be displayed. Strengthen & Drive Digital Unlock Create Future Explore new Embed accelerate core & Innovation synergies Ready Org opportunities sustainability business 24
Slide 25: New milestones in S&D transformation
New milestones in S&D transformation Direct reach Total Numeric reach1 +18% Increase +15% Increase 0.6M By Mar’23 Mar’22 Tea Salt Digital transformation Distributors Rural/Semi-Urban distributors DMS DMS Lite SSFA All numbers are for FY22 vs FY21 unless specified otherwise 1 Increase in average numb
Slide 26: Winning in alternate channels – MT & E-commerce
Winning in alternate channels – MT & E-commerce A fit for purpose assortment Modern trade business crosses 1000 cr. MT up 30% y-o-y E-commerce market share for Tea at 41.9% way ahead of competition E-commerce up 56% y-o-y E- commerce channel (% of sales) 7.3% 5.2% 2.5% FY20 FY21 FY22 All numbers are
Slide 27: Powering our brands
Powering our brands India business1 A&P FY22 +29% YoY Tata Tea Premium continued its hyperlocal campaign by Tata Coffee Grand activated the festival of Pongal in the state of TN with a celebrating the unique diversity of our nation with the ‘Desh ki TVC led campaign which celebrated the sounds of fe
Slide 28: Powering our brands
Powering our brands The new Tata Salt Lite and Superlite TVC addresses a relevant consumer tension to reduce their salt intake by Guaranteed quality, authentic taste, hygienically packed; pivoting to an alternative Shuddh by Tata Salt is an iodized salt that is sourced from Market share option of lo
Slide 29: Growth across key metrics
Growth across key metrics India Packaged Beverages India Foods International Beverages Revenue growth Revenue growth Revenue growth (like for like, net of exits) 32.8% 18.3% 17.7% 11.9% 2-year CAGR 11.6% 2-year CAGR 2-year CAGR 6.6% 6.4% 19% 18% 0.4% 6% 0.1% FY20 FY21 FY22 FY20 FY21 FY22 FY20 FY21 F
Slide 30: Continuing the momentum on innovation – FY22
Continuing the momentum on innovation – FY22 Innovation to sales contribution FY22 vs FY21 30 30
Slide 31: Global Simplification Plan announced…
Global Simplification Plan announced… Proposed Transactions Consolidation of minority interest from Tata Coffee & TCP UK Group to TCPL #1 #2 TCL combines with TCPL /WOS Purchase of minority interest in of TCPL, through a composite UK business from Tata scheme of demerger and Enterprise Overseas (TEO
Slide 32: …to unlock synergies and value for shareholders
…to unlock synergies and value for shareholders Operational efficiencies ► Align corporate structure with management & administrative structures 01 for management, legal & administrative costs ► Significant reduction in # of entities ► Converge the minority interests of subsidiaries at TCPL level 02
Slide 33: New engines of growth
New engines of growth Revenue growth – FY22 33
Slide 34: Embedding sustainability
Embedding sustainability Sustainable Sourcing Sustainably Sourced tea ~100% internationally and ~60% in India Water Management Water, sanitation and hygiene for 25,000 members in Assam and Himachal Climate Change Reduced GHG EMISSIONS by 26%*; Improved renewable energy to 24%** Sustainability Initia
Slide 35: Recognition of our sustainability efforts
Recognition of our sustainability efforts Rated “A” by MSCI ESG ratings Sustainalytics upgraded TCPL’s ESG TPCL is amongst the top scoring FMCG risk rating from Severe to Medium in companies in CRISIL India’s ESG Report their last update. which factors best in class Environmental, Social & Governanc
Slide 36: Financial Performance
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Slide 37: Key Businesses snapshot – FY22
Key Businesses snapshot – FY22 International Beverages In ₹ Cr India Beverages India Foods US Coffee International Tea Tata Coffee Consolidated# (unless specified) (incl. Vietnam) Revenue 5,001 2,913 1,295 2,040 1,070 12,425 Revenue Growth 10% 19% 0% 1% 11% 7%[9%] Constant currency growth 0% -3% 11%
Slide 38: Group Performance at a glance – FY22
Group Performance at a glance – FY22 ₹ 12,425 Cr. ₹ 1,749 Cr. ₹ 1,508 Cr. ₹ 1015 Cr. ₹ 1056 Cr. ~₹ 2,486 Cr. Revenue EBITDA PBT (bei)^ Group Net Profit Group Net Profit Net Cash$ (bei)^ Growth (Y-on-Y) 7%[9%]# 11% 12% 9% 12% Margin% 14.1% 12.1% 8.2% 8.5% Margin expansion +50 bps +60 bps +20 bps +40
Slide 39: Thank You
Thank You
Tata Consumer Products — Investor Presentation (June 2022) on 6ix