Harish Bhat says health & wellness will drive tata's food and beverage segment
Harish Bhat says health & wellness will drive tata's food and beverage segment

Harish Bhat, Tata Sons Brand Custodian, has said that health and wellness will drive the growth for the company’s food and beverage segment as consumers are increasingly becoming health conscious.

"My belief is, as far as the food and beverages segment in the country is concerned, one of the key drivers for the future will be the consumers' need for health, wellness and fitness," he stated.

Tata Global Beverages is offering green tea with its Tetley brand, while its other firm Tata Chemicals provides unpolished pulses and low sodium salt. 

Harish further added, "I believe that the Tata brand has earned trust over a long period of time through the behaviours that it has exhibited, through the products and services it has provided to our customers. All our companies believe in providing our customers with products and services of impeccable quality at very good value and it is that combination of quality and value which has made 650 million Indian customers trusts the Tata brand." 

 
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Tata Group to Enter Food Delivery Segment; Challenge Swiggy, Zomato
Tata Group to Enter Food Delivery Segment; Challenge Swiggy, Zomato
 

According to a MoneyControl report, Tata Group is said to be gearing up for an entry into the online food delivery industry.

Utilizing the government's Open Network for Digital Commerce (ONDC), Tata's 'super app', Tata Neu, aims to launch its own food ordering service. The report, referencing four informed individuals, highlighted these upcoming developments.

The Tata Neu app currently features a food category section, displaying menus exclusively from restaurants affiliated with the Tata Group's hotel company, which operates the Taj brand.

The report suggests that integrating with ONDC could enable the app to access a wide range of eateries across various cities already connected to the network.

As per the report, Swiggy and Zomato dominate over 95 percent of the food delivery market. Additionally, the two companies collectively processed nearly USD 6 billion in gross order value during the fiscal year 2023.

According to the report, Gaurav Porwal, a senior vice president at Tata Digital, is spearheading the ONDC initiative at Tata Neu.

This branch of the conglomerate also encompasses acquired consumer internet ventures such as the online grocer BigBasket and online pharmacy 1mg.

The report indicates that Tata Neu will function as a buyer-side application within ONDC, operating in the business-to-consumer capacity.

This approach is anticipated to make its foray into food ordering cost-efficient, as it won't require deploying a fleet of delivery riders or persuading restaurants to list on the app.

In the government-supported network, a single entity isn't required to manage every aspect of an e-commerce transaction independently.

Various participants can handle customer orders, logistics, and merchant onboarding collectively.

The report further mentioned that Tata Neu is collaborating closely with Magicpin, supported by Zomato, for its ONDC integration.

This Gurgaon-based startup is assisting the company as a technology service provider for the front end.

Magicpin has also aided other firms, including fintech leader Paytm and ride-hailing service Ola, in integrating with ONDC.

Additionally, Magicpin holds the distinction of being the foremost seller-side platform on ONDC with regard to restaurant enlistment.

The startup has successfully onboarded over 50,000 eateries onto the network. Magicpin fulfills three roles within ONDC: technology service provider, seller-side application, and buyer-side application.

 

 

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Tata Consumer in Talks for 51% Stake in Haldiram's at $10 Billion Valuation
Tata Consumer in Talks for 51% Stake in Haldiram's at $10 Billion Valuation
 

Tata Group's consumer division is currently in negotiations to acquire a minimum 51% stake in the renowned snack manufacturer Haldiram's.

However, the report released on Wednesday indicates that Tata is expressing hesitation regarding the requested valuation of $10 billion.

If the negotiations result in an agreement, the Indian conglomerate would enter direct competition with Pepsi and Reliance Retail, led by billionaire Mukesh Ambani.

According to sources cited by Reuters, Haldiram's, a well-known brand in Indian households, is exploring discussions with private equity firms such as Bain Capital regarding the potential sale of a 10% ownership stake.

The report states that Tata Consumer Products Ltd, the owner of the UK tea brand Tetley and in collaboration with Starbucks in India, is currently in discussions regarding the acquisition of the stake.

According to a source cited in the report, Tata expressed interest in acquiring more than 51% of the stake but has conveyed to Haldiram's that their asking price is exceptionally high.

The source mentioned that this potential acquisition presents an attractive prospect for Tata, highlighting that Tata Consumer is primarily recognized as a tea company, while Haldiram's holds significant prominence in the consumer sector and boasts a substantial market share.

Tata Consumer conveyed to BSE and NSE that they will make necessary announcements in accordance with the obligations specified in SEBI (LODR) Regulations, 2015, whenever such a requirement arises.

Tata Consumer clarified in a stock exchange filing that they are not currently engaged in negotiations, as indicated in the mentioned news article.

They stated that they have no undisclosed information requiring disclosure under Regulation 30 of the SEBI (LODR) Regulations, 2015. The article in question has no impact on the company.

Additionally, Tata Consumer mentioned that they continuously assess various strategic growth opportunities for their business and will make necessary announcements in compliance with SEBI (LODR) Regulations, 2015, when such requirements arise.

Haldiram's, a family-owned business, can trace its roots to a small shop established in 1937. The company is renowned for its popular "bhujia" snack, which is crispy and available for as low as Rs 10 in neighborhood convenience stores.

According to Euromonitor International, Haldiram's holds a nearly 13% share of India's savory snack market, which is valued at $6.2 billion. Similarly, Pepsi, known for its Lay's chips, also commands a share of approximately 13% in this market.

Haldiram's snacks are available in international markets such as Singapore and the United States.

 In addition, the company operates approximately 150 restaurants that offer a diverse range of local dishes, sweets, and Western cuisine.

Haldiram's is seeking a $10 billion valuation for the deal, which is equivalent to 6.6 times its annual revenue of $1.5 billion, as per Reuters.

The family-owned Haldiram's has its roots in a small shop founded in 1937 and is renowned for its affordable "bhujia" snack, priced as low as Rs 10 and available in local convenience stores.

According to Euromonitor International, it holds a nearly 13% share of India's $6.2 billion savory snack market, a figure comparable to Pepsi, renowned for its Lay's chips.

Haldiram's snacks are distributed in international markets such as Singapore and the United States. Additionally, the company operates approximately 150 restaurants that offer a wide range of local dishes, sweets, and Western cuisine.

Acquiring Haldiram's would represent a substantial expansion of Tata's consumer products presence.

 

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Tata Consumer acquires 23% additional stake in South Africa-based Joekels
Tata Consumer acquires 23% additional stake in South Africa-based Joekels
 

FMCG firm Tata Consumer Products Ltd (TCPL) on Thursday said it has acquired 23.3 per cent additional shares of South Africa-based Joekels Tea Packers for Rs 43.65 crore through a step-down subsidiary.

According to a regulatory statement, the company's step-down wholly-owned subsidiary, Tata Consumer Products Overseas Holdings Ltd (TCP Overseas), "has agreed to purchase 23.3 percent of the share capital of Joekels Tea Packers, Republic of South Africa from its Joint-Venture partners."

This is in accordance with the conditions of the shareholders' agreement and the share purchase agreement, which TCP Overseas, Joekels, and the JV Partners finalised and executed.

The FMCG division of the Tata Group stated that the price to acquire the stake was for a consideration value of Rs. 43.65 crore plus the adjustment amount.

The "holding of TCP Overseas in Joekels will expand from 51.7 to 75 percent" as a result of the acquisition of the equity share capital.

The joint venture partners own the final 25% of the company, according to the regulatory filing.

 

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Tata Consumer Products enters into RTE segment, acquire Tata SmartFoodz
Tata Consumer Products enters into RTE segment, acquire Tata SmartFoodz
 

Tata Consumer Products Limited (“TCPL”) announced today that it has signed definitive agreements to acquire 100% equity shares of Tata SmartFoodz Limited (“TSFL”) from Tata Industries Limited, for a cash consideration of Rs 395 Cr.

This move is consistent with TCPL’s strategic intent to expand into value added categories.

TSFL commenced operations in 2019 and within a short time has established itself as the #2 player in the Ready-to-Eat (RTE) market in India.

“Tata SmartFoodz is a good strategic fit for us given the nature of its business and it will also allow us to expand our portfolio into the Ready to Eat segment. RTE is a fast-growing segment in India and a sizeable opportunity in the International markets. The acquisition will give us access to a unique technology and the product portfolio synergizes well with our existing distribution infrastructure both in India and internationally,” said Sunil D’Souza, MD & CEO, Tata Consumer Products.

It has a state-of-the-art manufacturing facility in Sri City, Andhra Pradesh. TSFL, under the brand name Tata Q, offers a range of innovative and differentiated products manufactured using MATS technology in India.

This unique technology helps retain taste, texture and nutrients within an ambient supply chain. The product portfolio caters to consumers looking for tasty, convenient and wholesome on-the-go meals.

“Being part of Tata Consumer Products will enable us to strengthen our market presence and scale up the business. It will allow us to leverage Tata Consumer’s strength in modern trade and e-commerce channels in India and also its global presence to target key International markets for RTE exports. It will also help us augment our innovation pipeline and unlock synergies across our business,” added Balark Banarjea, CEO, Tata SmartFoodz.

The acquisition will enable TCPL to expand its product portfolio and enter the RTE segment. In India, the category is expected to grow at a significant pace benefitting from demographic tailwinds such as urbanization, and high disposable income nuclear families looking for convenience, nutrition and hygienic food on the go.

The category is already large and growing strongly in the international markets that TCPL already operates in. Tata Consumer Products will leverage its existing domestic and International distribution and focus on operational excellence to maximize value. The technology will also enable TCPL to create a strong pipeline of value-added products in other parts of the foods business.

 

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Tata Sampann Launches Multi Grain Khichdi
Tata Sampann Launches Multi Grain Khichdi
 

Tata Sampann has launched ready-to-cook multi-grain khichdi mix which it will sell in 28 cities through e-commerce portal Amazon, Star Bazaar outlets in Mumbai, Pune and Ahmedabad.

"Our approach is to bring to consumers, products that are at the intersection of modern science and traditional Indian wisdom. Khichdi is a perfect example of this wisdom and with the ready to cook Khichdi mix. We are delighted to bring a unique combination of convenience, taste and nutrition to our consumer's plate," said Richa Arora, Chief Operating Officer, Consumer Product Business, Tata Chemicals.

The khichdi mix has been formulated with food connoisseur and Tata Sampann's brand ambassador Chef Sanjeev Kapoor and is inspired from the Guinness World Record winning khichdi made with the company's products at World Food India in November 2017, the statement said.

 

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