FMCG major, Tata Consumer Products (TCPL), has projected that its non-carbonated beverage brand, NourishCo, will achieve four-digit sales in FY24, according to the company’s CEO and MD, Sunil D’Souza. D’Souza made this announcement during TCPL’s analyst call following the Q4 results disclosure. TCPL is a prominent company in the FMCG sector.
According to the company’s statement, NourishCo achieved net sales of INR 621 crore during FY23, a significant increase from its sales of INR 180 crore in FY20.
As per an investor presentation, Tata Consumer has been expanding NourishCo’s distribution and product range, and the brand is now available in 600,000 outlets.
D’Souza stated during an analyst call that the FMCG giant intends to undertake aggressive channel expansion in its current 600,000 outlets to sustain volume growth.
“Earlier we were present only in Tamil Nadu, Orissa, and Andhra Pradesh. We spent FY21 in stabilising the business, FY22 in expanding across East and FY23 in moving across North and West,” said D’Souza adding that currently, the brand is present across 75 per cent of the country.
Established in 2010 as a joint venture between Tata Consumer and PepsiCo, NourishCo became a wholly-owned subsidiary of TCPL in 2022 when it acquired PepsiCo’s stake for INR 130 million. This strategic move was aimed at expanding TCPL’s portfolio in the food and beverage sector.
According to a note from Motilal Oswal earlier this year, following the acquisition, NourishCo recorded a higher revenue growth of 38% between FY12-20.
Additionally, the note emphasized that following the acquisition, the beverage brand has achieved a positive EBIT and experienced yearly margin growth from 3% in FY21 to 6% in FY22, owing to a “strong synergy” between Tata Consumer and NourishCo.
After the acquisition, Tata has been concentrating on broadening its portfolio in the healthy and ready-to-drink category through NourishCo, introducing brands such as Himalayan, Tata Gluco Plus (TGP), Tata Copper Plus Water (TCPW), and Tata Fruski.
According to the company’s investor presentation, the contribution of innovation to sales reached 13% in FY23.
In Q4, Tata Consumer reported a 21.12% rise in its consolidated net profit, reaching INR 289.56 crore. The company also registered nearly 14% revenue growth, totaling INR 3,618.73 crore, for the quarter ending on March 31, 2023.