EUR 120.00 For Business Accounts Only

MOSL: Morning India (8/September/21): 1. AGIC: CEO Track Takeaways (a. Tata Consumer: Steadily walking the talk! b. Infosys; c. Smallcase; d. Berger Paints; e. Udaan ); 2. Pharma Monthly; 3. Insurance Monthly

MOrning India (8/September/21): 1. AGIC: CEO Track Takeaways (a. Tata Consumer: Steadily walking the talk! b. Infosys; c. Smallcase; d. Berger Paints; e. Udaan ); 2. Pharma Monthly; 3. Insurance Monthly

 

Today’s top research idea

Tata Consumer (AGIC: CEO Track): Steadily walking the talk!

• We hosted Mr. Sunil D'Souza, MD and CEO, Tata Consumer Products (TCP), as part of CEO Track at AGIC CY21. TCP has doubled its direct coverage reach to 1m outlets in last one year.
• TCP had over 3,000 rural distributors as of Jun'21, which has increased to more than 4,200 currently. It intends to take it to over 5,000 by the end of FY22. The top FMCG player would have 15-20k rural distributors. The management is looking to scale its direct distribution and total numeric reach to that of the market leader, given that the company earlier was at the bottom in terms of distribution when compared to its peers. It has now scaled up to mid-levels and would eventually aim for the top quartile.
• Thus, TCP is bridging the distribution gap with the top player. In the Beverages segment (Tea), TCP expects growth to be driven by market share gains from unorganized and organized players and premiumization.
• Growth levers in the Salt segment are similar to that of the Tea segment, given that branded salt constitutes 40-45% of the total Salt market in India. TCP is expecting Tata Sampann to be the third leg of growth for the company.