Tata Tea’s Volume Growth Potential Is At Par With Consumer Staples: ICICI Securities  
Range of Tata Consumer Products. (Photo: BloombergQuint)

Tata Tea’s Volume Growth Potential Is At Par With Consumer Staples: 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

Considering organized tea market compound annual growth rate (volume) of approximately 6.5% and ~200 basis points market share gain by Tata Consumer Products Ltd. over FY06-20, the company’s volume CAGR over FY06-20 was ~7-8%, comparable to median volume growth of other consumer staple companies/categories.

The company is likely to deliver volume growth in high single digits in medium-term due to

1. likely market share gains,

2. benefit of regionalization strategy and launch of differentiated variants,

3. possibility of imminent consolidation in industry as smaller players have weak financials,

4. portfolio approach to tackle inflationary periods and

5. volume growth contribution from salt and Sampann over FY21-25.

Click on the attachment to read the full report:

ICICI Securities Consumer Tea Volume Growth vs Realty Feb21.pdf

DISCLAIMER

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.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.