The Crea-tea-vity Which Is Brewing Tata Consumer Products Growth During the September quarter of FY24, our India tea business continued to benefit from our earlier interventions, resulting in a third consecutive quarter of volume led growth, says Sunil D'Souza, Managing Director & CEO of Tata Consumer Products
By Shrabona Ghosh •
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Tata Consumer Products Ltd. (TCPL) clocked a consolidated net profit at INR 359.18 crore for the September quarter of FY24, registering a growth of 1.18 percent from INR 354.98 crore in the same quarter of the previous financial year. One of its major growth drivers is its tea business: Over 35 years ago, Tata Tea began its journey when the packaged tea market in India was dominated by a large player with over 70 per cent of the market share. Tata Tea envisioned an opportunity and with its extensive range of variants it catered to the regional preferences of its consumers, which helped it gain a considerable market size. "During the quarter, our India tea business continued to benefit from our earlier interventions, resulting in a third consecutive quarter of volume led growth," said Sunil D'Souza, Managing Director & CEO of Tata Consumer Products.
The Indian tea market is projected to grow at a CAGR of nearly 4.5 per cent in the forecast period of 2024-2032. The market in the country is projected to witness a further growth in the forecast period of 2024-2032, growing at a CAGR of 4.2 per cent . In 2026, the tea industry in India is expected to attain 1.40 million tons, according to Expert Market Research.
For the quarter, the India packaged beverages business delivered 5 per cent revenue growth and 3 per cent volume growth. Its key beverage brands include Tata Tea, Tetley, Eight O'Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Copper+ and Tata Gluco+.
In the quarter, TCPL continued to retain market leadership in tea in the e-commerce channel. "We strengthened our health & wellness beverage portfolio with the launch of Tata Tea Gold Vita Care Tetley Digest (to support gut health) & Immuno Chai (to help support the immune system)," the company said in its exchange filing. Not only domestically, but also In the UK, the rollout of the revamped Tetley tea bag continued through the quarter. In the USA, Tetley and teapigs continued to outpace category growth rates.
India is the second largest producer of tea, globally, after China. According to IBEF, the northern part of India is the biggest producer at about 83 per cent of the country's annual tea production in 2021-22 with the majority of the production coming from Assam followed by West Bengal. The Assam Valley and Cachar are the two tea-producing regions in Assam. In West Bengal, Dooars, Terai and Darjeeling are the three major tea producer regions. The southern part of India produces about 17 per cent of the country's total production with the major producing states being Tamil Nadu, Kerala, and Karnataka.
