- When you think of the most valued companies in the Tata Community, Tata Consumer may not be the first company that clicks in your mind. But Tata Consumer shareholders will not worry now.
When you think of the most valued companies in the Tata Community, Tata Consumer may not be the first company that clicks in your mind. But Tata Consumer shareholders will not worry now. As of September 7, the 72 percent rally in its share price since March 31 increased the total market capitalization of the company to a record high of approximately 503 billion.
Tata Consumer now ranks third among most valued listed Tata companies after Tata Consultancy Services ( TCS) and Titan. Tata Customer has exceeded several of the other listed subsidiaries of Tata’s market capitalization.
|Tata Subsidiaries||Market Capitalisation|
|Tata Consumer||₹501.46 billion|
|Tata Motors||₹493.61 billion|
|Tata Steel||₹ 479.84 billion|
In the kitchen segment, Tata Consumer owns a wide market share — from Tata Salt to Tata Tea and spices to pulses — Tata products have become a common household name in India over the years.
And this three-month-long shutdown has transformed engineers, pilots, physicians, and many more specialists into cooks, and the sales of critical agri-articles have increased – leading to increases over the past five months.
With its brand ‘Tata Sampan,’ the company is seeking to improve its feet in the segment of pulses and spices. In India, this category has a higher proportion of unbranded and unorganized players. And Sharekhan analysts believe the increasing fear of infectious diseases such as coronavirus would drive people into packaged and branded foods, and that may be good for Tata Market.
In the post-COVID world, people will step out to eat less at restaurants and the increase in home cooking will open up a new market for intermediary value-added goods.
Home chefs will opt for comfort and fast preparations that will boost the demand for curry purees, ginger garlic paste, and regional masalas. According to Sharekhan, in the near to medium term, this trend is likely to emerge more strongly in the metros. With its ad campaign with the tagline, ‘Restaurant jaisa khana’ (restaurant-like food), Tata Consumer is already geared to tap the demand.
Though standard black tea remains the largest category on the global tea market overall, the segment is now experiencing a slow decline in both the Indian and domestic markets.
Top Indian metro cities including Mumbai and Bengaluru mirror the global trend where green tea or other varieties of herbal tea replace traditional black tea. Tata Market is spreading the whole thing under labels like Tetley.
So while Mukesh-Ambani led Reliance Industries is expanding its digital and retail empire with the acquisition of many well-established companies such as Future Retail and Netmeds, Tata is concentrating on expanding its product base. Tata Consumer crossed 110 million households in India as of June 2020, while India’s consumer market crossed TCL was 140 million households.