Can Tata group's Chandrasekaran create a TCS in FMCG?
Analysts say that the future of the company will depend on its new brands and expansion of its existing brands in the new markets
- Jun 27, 2020,
- Updated Jun 27, 2020 11:28 PM IST
Tata Group chairman N Chandrasekaran's big move to create a FMCG giant - combining the consumer products businesses of Tata Global Beverages and Tata Chemicals - is finding buyers in the stock market. The share price of Tata Consumer Products Ltd (TCPL), which launched on May 15, 2019, has recovered fully from the lows in March. It increased 70 per cent in the last three months. The company is the fourth largest business, considering its market capitalisation of Rs 35,500 crore, in Tata Group after Tata Consultancy Services or TCS (Rs 7.96 lakh crore), Titan (Rs 85,835 crore) and Tata Steel (Rs 36,750 crore). It is expected to overtake Tata Steel soon.
Tata Motors (Rs 33,450 crore), Trent (Rs 24,600 crore), Voltas (Rs 18,000 crore), Tata Power (Rs 12,565 crore) and Indian Hotels (Rs 9,720 crore) are behind TCPL. The value had crashed 40 per cent at the beginning of the lockdown.
TCPL's product portfolio currently spans a mix of iconic and emerging brands in tea, coffee, water, salt, pulses, spices and packaged foods, said Chandrasekaran in the latest annual report. "This gives us broader exposure to the large and fast growing FMCG market in India as well as the ability to explore options in the international markets where we have an existing strong base," he said.
Tata Group chairman N Chandrasekaran's big move to create a FMCG giant - combining the consumer products businesses of Tata Global Beverages and Tata Chemicals - is finding buyers in the stock market. The share price of Tata Consumer Products Ltd (TCPL), which launched on May 15, 2019, has recovered fully from the lows in March. It increased 70 per cent in the last three months. The company is the fourth largest business, considering its market capitalisation of Rs 35,500 crore, in Tata Group after Tata Consultancy Services or TCS (Rs 7.96 lakh crore), Titan (Rs 85,835 crore) and Tata Steel (Rs 36,750 crore). It is expected to overtake Tata Steel soon.
Tata Motors (Rs 33,450 crore), Trent (Rs 24,600 crore), Voltas (Rs 18,000 crore), Tata Power (Rs 12,565 crore) and Indian Hotels (Rs 9,720 crore) are behind TCPL. The value had crashed 40 per cent at the beginning of the lockdown.
TCPL's product portfolio currently spans a mix of iconic and emerging brands in tea, coffee, water, salt, pulses, spices and packaged foods, said Chandrasekaran in the latest annual report. "This gives us broader exposure to the large and fast growing FMCG market in India as well as the ability to explore options in the international markets where we have an existing strong base," he said.