NourishCo, the liquid beverage division of Tata Consumer Products Ltd, is set to conclude FY24 with revenues between INR 900 crore to INR 1,000 crore, while also reaching the break-even point. Approximately 19 percent of the company’s revenue originates from products launched within the past 36 months.
Vikram Grover, Managing Director, NourishCo Beverages said, “From a turnover of just about INR 180 crore in FY 20-21, we have scaled up the business substantially and we expect to end this fiscal with a turnover of INR 900-1000 crore. We have not just been able to garner hyper-growth over the last 3-4 years but we have also significantly upped the game as far as profitability is concerned and we expect to reach break even by the end of this fiscal.”
The company’s growth has been fueled by its expansion in distribution, manufacturing capacity, and product portfolio. Among its product lineup are well-known brands like Tata Copper Plus, Gluco Plus, Fruski, and Himalayan Natural Mineral Water. Lately, it has ventured into new segments such as energy drinks with Say Never and ready-to-drink Tata Coffee Cold Brew.
Continue Exploring: NourishCo aims for market dominance with Tata Coffee Cold Brew launch
Addressing a question regarding profitability, Grover clarified that for the Himalayan brand, the company’s go-to-market strategy revolves around targeting profitable customers and implementing price increases. These measures are aimed at achieving break-even point for the company.
“The growth in scale has helped cut down on our fixed costs. We have also upped our game in cost savings across the supply chain. We have also become more efficient with our back end. We have been able to manage the balance between expansion and profitability by focusing on a differentiated portfolio,” he added.
Talking about future plans, Grover said, “The water space remains a key area for us and we feel there remains potential to launch more products in this space. The per capita consumption in India in terms of RTD beverage remains quite low and with Fruski we believe there is a huge potential to upgrade consumers from the unpackaged to packaged drinks space. We also have a strong differentiation with the cup format that enable us to offer affordable products in a differentiated packaging with an elevated consumer expierence, with the way liquid beverage can be gulped to quench thirst.”
The company offers products like Say Never and Tata Gluco Plus in cup formats and is actively exploring additional product offerings.
Talking about the summer season, he said, “We believe our distribution expansion and innovative products will provide us with many tailwinds for growth this summer season. Our innovation to sales ratio is nearly 19 per cent, which is at the higher end of the curve in terms of the industry average.”
NourishCo Beverages’ combined direct and indirect distribution spans approximately one million outlets. Grover commented, “Some of the major players cover nearly 3 million outlets. Thus, we aim to substantially expand our distribution channels in the future.”
Continue Exploring: Varun Beverages eyes untapped markets with focus on production capacity and distribution expansion
