Please comment on the companys performance in Q3 FY 2014.
We had a good 9% steady income growth this quarter over the same period of the previous fiscal. And we have a 49% growth in PAT. Overall, in terms of operative performance, India has done well. There has been a high level of advertising spend in Q3 FY14 an increase of R45 crore compared to the corresponding quarter of previous fiscal. Its an intense spend this quarter which has dampened our results a bit. If we had a normal level of ad spend in Q3, our profitability would have been higher. We are also helped by tax breaks this quarter.
Is TGBL looking for any strategic alliances or acquisitions as part of its organic growth strategy
We have a big appetite for acquisitions. We are scanning the environment for acquisitions and strategic alliances in global markets in three categories namely tea , coffee and water. Our acquisition focus on markets in Russia, the US and the Asian countries. We are quite flexible when it comes to acquisition or strategic alliances.
What is the status of Tata Tea in the branded tea markets in India
TGBL is still leading by value and volumes with 23 % and 20% value and volume market share, respectively, well ahead of our closest competition as per Nielsen data. Today, the single largest tea brand is Tata Tea Premium in the branded tea sector.
How do plan to sustain TGBLs growth momentum in the next two quarters
There has been a big increase in our A&P spend in Q3FY14, Now that s the engine of brand equity we are inventing in. We hope with our renewed focus on brand equity, we will build a long-term position for TGBLs growth.
Do you plan to increase TGBLs investments behind innovation this fiscal
Yes. Just like our investment in brand equity, innovation is going to be a key growth driver for TGBL. If you can differentiate your product in competitive markets, you can improve the companys sales for sure.
What are rural initiatives in the next two quarters.
We are increasing our rural penetration with our initiative Gaon Chalo. We plan to extend it to 18 states this year. Our rural sales are higher than our urban revenues in the range of 60:40 (rural vs urban).
Whats your export strategy for Himalayan Water
After introducing it in Singapore, we are taking it to Dubai, Abu Dhabi and other South East Asian countries this year.