TATACONSUM - TATA CONSUMER PRODUCTS LIMITED Share Price

Q1: Could you elaborate on Tata Soulfull's market share and competitive strategy? And regarding Tata Sampann's growth, how is the legacy business doing compared to new segments?

A1: For Tata Sampann, the 45% growth is due to significant traction from both legacy businesses like Poha and new segments such as dry fruits and cold press oils. The legacy products are performing well, and we're seeing solid foundations laid for future successes in basics. In the case of Soulfull, we're nearing a double-digit market share across most categories, with key growth in Muesli and Choco-fills. We're confident in our distinct strategies that allow us to expand across multiple categories.

Q2: With the 45% growth of Tata Sampann, is this sustainable, or was there a one-off factor? What about the margins for Dry Fruits and Soulfull?

A2: No, there are no one-off factors behind Sampann's growth; we've consistently achieved strong volumes and repeat purchases. While we are targeting a 30% growth as a realistic benchmark, we remain confident in reaching 45% at times. For margins, we aim for double-digit levels within Sampann, edging closer to 15%. We're improving profitability through high-margin products like flavored dry fruits.

Q3: Regarding Tata Salt's recent high volume growth, do you expect normalization in the future?

A3: We anticipate Salt growth will stabilize at mid to high single digits moving forward, as market share gains become more sustainable while tonnage growth normalizes. The key driver here is increasing Tata Salt penetration into households replacing other brands, expanding the market size.

Q4: How do you perceive the sustainability of strong momentum in performance? Is it due to broader consumption recovery or Tata Consumer's execution?

A4: The momentum appears to stem largely from our execution rather than external recovery. We've adapted strategies swiftly, driving double-digit growth across categories. Our entrepreneurial spirit allows us to respond to opportunities as they arise, meaning we can capitalize on specific segments effectively beyond mere broad market winds.

Q5: What's the trajectory for the growth businesses within Tata Consumer's portfolio? Could it exceed 30% in the coming years?

A5: We aim for growth businesses to consistently exceed 30% of our portfolio, as they are designed to grow faster than our core segments. As we diversify into multi-category sectors, I expect growth contributions from these segments will naturally increase. Future guidance on numbers will come as we finalize our plans.

Q6: What updates can you provide regarding tea pricing and potential margin impacts?

A6: We've largely passed on tea price changes during the last quarter. If there are price increases, we anticipate achieving a rough balance between volume and price growth going forward, potentially leading to mid-single-digit revenue gains overall. However, expect slight negative price mix effects due to prior price reductions.

Q7: Can you share insights on the current state of international margins and future expectations?

A7: International margins are still below normative levels as the impact of coffee costs hasn't yet fully passed through. We implemented another price increase in the U.S. in January, which should help stabilize margins going forward. We expect to reach normalized pricing over the next quarter.

Q8: What level of reach currently does Tata Consumer's RTD portfolio have?

A8: Our RTD portfolio currently reaches about one million outlets. We're focused on maintaining and growing our market share within this category, ensuring robust execution before expanding the reach further.

This concise Q&A captures key inquiries and answers as provided during the earnings call while respecting the character limit and details required.