Tata Consumer - From 'Trust Me' Phase To 'Show Me' Story: ICICI Securities

Range of Tata Consumer Products. (Photo: BloombergQuint)

Tata Consumer - From 'Trust Me' Phase To 'Show Me' Story: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Due to price hikes, the total commission earned by distributors has increased but reduction in trade margin, reduction in schemes and higher diesel costs are impacting profit margins of the distributors - that's the insight from our conversation with Tata Consumer Products Ltd.'s distributors in Western Maharashtra.

They told us,

  1. with reduction in salience of wholesale channel, the throughput has increased materially through the distributors (read direct reach increase),

  2. Tata Consumer has again raised prices of Tata Tea key SKUs (100 grams and 250 grams) in Q1 FY22,

  3. lockdown and lower out-of-home consumption has impacted off-take of Tata Grand coffee in Q1 FY22.

Click on the attachment to read the full report:

ICICI Securities Consumer Staples & Discretionary Sector Update.pdf

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