Conversations with Tata Consumer Distributors In Western Maharashtra: ICICI Securities Insights
Range of Tata Consumer Products. (Photo: BloombergQuint)

Conversations with Tata Consumer Distributors In Western Maharashtra: ICICI Securities Insights

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ICICI Securities Report

While the overall turnover for the distributors has increased post consolidation of distribution network, the income levels of distributors have not materially increased due to approximately 200 basis points reduction in trade margins - that's the insight from our conversation with Tata Consumer Products Ltd.’s dealers in Western Maharashtra.

They told us -

1. bargaining power with retail outlets has increased driven by higher turnover and lower freight cost (lower by ~70%),

2. value-added salt variants such as Tata Salt Lite are performing well,

3. there are good repeat orders for sachets of Tata Coffee Grand,

4. Sampann has limited success in Western Maharashtra and

5. modern trade is now serviced separately by the company (in line with industry practices).

Click on the attachment to read the full report:

ICICI Securities Conversations with Tata Consumer Prodcts Distributors .pdf


This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.

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