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Tag: Ajoy Misra

  • Q3-2015: Tata Global Beverages q-o-q marketing spends up 6.3 per cent

    Q3-2015: Tata Global Beverages q-o-q marketing spends up 6.3 per cent

    BENGALURU: Tata Global Beverages Limited (TGBL) spent Rs 377.06 crore (17.6 per cent of Total Income from Operations or TIO) towards advertising and sales promotion (ASP) during the quarter ended 31 December, 2014 (Q3-2015), which was 6.3 per cent more than the Rs 354.80 crore (17.5 per cent of TIO) in the immediate trailing quarter, but 5.9 per cent lower than the Rs 400.71 crore (19.3 per cent of TIO) in Q3-2014.

    ASP for the nine month period ended 31 December, 2015 (9M-2015) at Rs 1017.66 crore (18.2 per cent of TIO) was 3.5 per cent lower than the Rs 1054.75 crore (19.7 per cent of TIO) in 9M-2014. TGBL is the unifying entity of the Tata Group’s beverages interests under one umbrella.

    Note: Rs.1 crore = Rs.100 Lakhs = Rs.10 million = Rs.100,00,000

    TGBL’s Q3-2014 ASP was the highest in absolute rupees as well as in terms of percentage of TIO (19.3 per cent) during a 11 quarter period starting Q1-2013 until Q3-2015. During this eleven quarter period, ASP shows an upwards linear trend in absolute rupee spends, while the linear trend in terms of ASP as percentage of TIO is almost flat with a slight upward inclination. (Please refer to Chart A below.)

    During this period, the lowest ASP in absolute rupees was in Q1-2013 at Rs 280.56 crore (16.3 per cent of TIO) and lowest ASP in terms of percentage of TIO was in Q1-2015 at 14.9 per cent (Rs 285.80 crore). The simple average ASP percentage of TIO during the period under consideration is 18.7 per cent.

    For Q3-2015, TGBL reported Profit after Tax (PAT) of Rs 84.94 crore (four per cent of TIO), which was 35.9 per cent more than the Rs 62.45 crore (3.1 per cent of TIO) in Q2-2015, but 29 per cent less than the Rs 119.55 crore (5.7 per cent of TIO) in Q3-2015. For 9M-2015, PAT at Rs 243.92 crore (four per cent of TIO) was 40.7 per cent lower than the Rs 411.21 crore (7.1 per cent of TIO) in 9M-2014. During the eleven quarter period under consideration, PAT was highest both in terms of percentage of TIO as well as in absolute rupees at 9.3 per cent of TIO and Rs 180.03 crore.

    PAT shows a downward linear trend in absolute rupees as well as percentage of TIO during the eleven quarter period in this report. (Please refer to Chart B below.)

    Cart C below shows the company’s TIO, total expenditure (TE), PAT and ASP in HY-13, HY-14 and HY-15; in 9M-13, 9M-14 and 9M-15 and in FY-12, FY-13 and FY-14.

    During Q3-2015, TGBL’s TIO at Rs 2143.89 crore was six per cent more than the Rs 2021.70 crore in Q2-2015 and three per cent more than the Rs 2080.74 crore in Q3-2014. For 9M-2015, TIO at Rs 6078.70 crore was 4.3 per cent more than the Rs 5827.68 crore in 9M-2014.

    TGBL, in its earning release for Q3-2015, says that it continues to strengthen its focus on the green tea category and grow its coffee and water businesses. In India, the company says that it retains market leadership in branded tea and has recorded its highest ever monthly production in December 2014. There is exponential growth in the green tea segment. Tata Global Beverages has a portfolio of green tea brands across consumer segments in India, with Tetley Green Tea and Tata Tea Acti Green.

    TGBL claims that in the water segment, Tata Water Plus- India’s first nutrient water, Tata Gluco Plus, available in five flavours and Himalayan natural mineral water, which recently launched a sparkling variant, are seeing good market response and focusing on expanding reach.

    Tata Starbucks, a joint venture between Tata Global Beverages and Starbucks, now has 65 stores spread across Mumbai, Delhi NCR, Bangalore, Pune, Chennai and Hyderabad. The stores continue to witness very good customer response. Eight O’ Clock coffee K cups in the USA, are making good progress in the fast growing pods market.

    TGBL managing director and CEO Ajoy Misra said, “We will focus on growing segments such as green tea, specialty teas, functional water and pods while continuing to strengthen our core markets & brands, based on key consumer trends. We remain committed to sustainable growth through innovation and strengthening our brands in key markets, in the face of a challenging market environment and economic volatility in some parts of the world.”

  • Tata Starbucks charts its steady growth plan

    Tata Starbucks charts its steady growth plan

    KOLKATA: Starbucks, which formed an equal joint venture (JV) with Tata Global Beverages in 2012 and since then has opened around 53 outlets in the country, is on a steady growth. 

     

    “Starbucks is on a steady growth and we are very happy with the way the brand has been built and the experience of Starbucks is spreading across as a very premium cafe in the Indian context,” said Tata Global Beverages (TGBL) MD Ajoy Misra.

     

    Also, the company, which is looking at the premium segment, agreed that at present it might not look at the mid-segment but hinted that going forward it may move that segment as well.

     

    Tata Global Beverages chairman Cyrus Mistry in response to a shareholder’s query during the annual general meeting in Kolkata said that the company is looking at the premium segment and at this point of time not actually looking at mid-segment. “But that does not stop us from looking at this in the future,” he said.

     

    “Tata Starbucks recorded strong growth and it continues to increase the number of stores. Today it is currently in Mumbai, Delhi, Gurgaon, Poona, Bangalore and Chennai. The store count is currently 53 and continuously growing,” he added.

     

    “We are a company that is in the branding business. We are a company that is talking about strengthening brands, creating brands, creating new products, strengthening the product formulation around the consumer needs,” said Misra while talking about the philosophy of the brand.

     

    Globally, the world’s largest coffee chain, Starbucks, runs more than 20,000 coffee stores across 64 countries, serving more than 70 million customers per week.

  • Tata Global Beverages ad and sales charges in FY-2014 up 13.2 per cent; PAT up 29 per cent

    Tata Global Beverages ad and sales charges in FY-2014 up 13.2 per cent; PAT up 29 per cent

    BENGALURU: Tata Global Beverages (TGBL) advertisement and sales charges (ASP) in FY-2014 was up 13.2 per cent to Rs 1402.26 crore (18.1 per cent of Total Operating Income or Tot Inc) from Rs 1238.96 crore (16.9 per cent of Tot Inc) in FY-2013.

    However, the company’s Q4-2014 ASP at Rs 347.51 crore (18.2 per cent of Tot Inc) was 13.3 per cent lower than the Rs 400.71 crore (19.3 per cent of Tot Inc) in the immediate trailing quarter and 13.6 per cent more than the Rs 305.99 crore (16.5 per cent of Tot Inc) in the year ago quarter Q4-2013.

    Note: 100,00,000 = 1 crore = 100 lakh = 10 million.

    TGBL PAT in FY-2014 at Rs 480.51 crore (6.2 per cent of Tot Inc) was 28.9 per cent more than the Rs 372.75 crore (5.1 per cent of Tot Inc) in FY-2013. In Q4-2014, the company’s PAT at Rs 69.30 crore (3.6 per cent of Tot Inc) was 42 per cent less than the Rs 119.55 crore (5.7 per cent of Tot Inc) in Q3-2014 and 27.6 per cent less than the Rs 95.76 crore (5.2 per cent of Tot Inc) in Q4-2013.

    Over the nine quarter period starting Q4-2012 until Q4-2014, TGBL’s ASP shows an upward linear trend, both in terms of rupee value as well as in terms of percentage of Tot Inc. A similar linear trend is observed in the five year period starting FY-2010 until FY-2014. Please refer to Fig. 1 below.

    The company’s Tot Inc in FY-2014 was 5.3 per cent more at Rs 7737.61 crore as compared to the Rs 7350.98 crore in FY-2013. In Q4-2014 TGBL’s Tot Inc at Rs 1909.93 crore was 8.2 per cent lower than the Rs 2080.74 crore in Q3-2014 and 3.3 per cent more than the Rs 1849.50 crore in Q4-2013. Figure 2 below indicates a linear upward trend acorss the above mentioned nine quarter period as well as the five year period.

    While the linear trend across the five years from FY-2010 till FY-2014 in Fig 3 below seems to indicate that PAT seems to have flattened at about 6.2 per cent of Tot Inc, the linear trend across the nine quarters indicates an upward trend.

    So of the points of note in an investors’ presentation for performance in FY-2014 and a TGBL press release are:

    (1)    The company claims a 15 per cent top line growth across the portfolio with volume and value increases.

    (2)     It says that TGBL has maintained market volume and value leadership at 20.1 per cent and 22.3 per cent respectively. Tata Tea Gold restaged with primary TV campaign – Tata Tea Gold Power of 49 campaign and IIFA integration.

    (3)    Iconic Power of 49 ‘Jaago Re’ campaign integrating brand messaging with social cause.

    (4)    Chakra Gold and Kanan Devan restage in Q4-2014.

    (5)     Tetley Green tea re-launched in January with an impactful campaign with Kareena Kapoor.

    (6)     Various consumer promotions were undertaken to drive sales growth. Competition has launched aggressive promotions.

    The company’s press release says:

    The ‘Power of 49’ campaign for Tata Tea Gold in India, which encouraged women to exercise the power of their franchise, saw strong momentum and consumer participation last quarter with a mix of elements spanning advertising, on ground activation and digital marketing. TGBL says the campaign touched over 10 crore women across India and sparked over 50 lakh interactions through its communication channels.

    Tata Starbucks – a joint venture between Tata Global Beverages and Starbucks- now has 46 Starbucks stores across the cities of Mumbai, Delhi, Bangalore and Pune.  The stores continue to see excellent consumer response.  Tata Water Plus- India’s first nutrient water, now has a presence in the states of Tamil Nadu, Andhra Pradesh and Gujarat in PET bottle as well as pouch formats. Tata Gluco Plus launched a new flavor variant- Apple Cinnamon last quarter, which was been very well received in the market. With this launch, the brand now has five delicious flavours available.

    TGBL managing director and CEO Ajoy Misra said, “In a challenging market environment, we continue to invest strongly behind our brands. We have made good progress on category expansion into coffee and the single serve business in Australia with the acquisition of the MAP brand. By leveraging key consumer trends like wellness, convenience and indulgence, Tata Global Beverages continues to create many magical beverage moments for consumers across the globe. Our strategic alliances with PepsiCo and Starbucks are making good progress and seeing steady growth.”