The fast-moving consumer goods (FMCG) arm of the Tata group – Tata Consumer Products – is aiming for a turnover of Rs 1,000 crore in the current financial year (FY24) from the NourishCo portfolio. The latter, which includes brands such as Himalayan packaged water, Tata Gluco Plus and Tata Copper Plus, closed FY23 with net sales of Rs 621 crore, a growth of 80% versus the previous year.
The Rs 1,000-crore topline target for FY24 for NourishCo implies a growth of 61% versus FY23, which the company said would be achieved on the back of new launches and a distribution push across markets this year.
“We now reach around 650,000 outlets via NourishCo. While the business is growing in double digits, we still have a huge runway for growth. The key focus would be on scaling up both the portfolio as well as undertaking distribution expansion,” Sunil D’Souza, MD & CEO, Tata Consumer Products, said during the company’s latest analysts call, held on Wednesday.
D’Souza also said that Tata Consumer Products would be merging NourishCo, which is a wholly-owned subsidiary, along with Tata SmartFoodz and Tata Consumer Soulfull into it, to ensure effective utilisation of resources and reduce compliance requirements. The scheme of amalgamation was subject to necessary statutory and regulatory approval including sanction from the National Company Law Tribunal, he added.
Among new products, NourishCo had stepped into the energy drinks as well as sports drinks categories in the September quarter and was continuing to explore new segments for growth. The energy drink called ‘Say Never’ was launched in select markets in the north and south of India and had been priced at Rs 10 per unit.
The sports drink under the Tata Gluco Plus brand had been launched in partnership with the Argentinian Football team, D’Souza added.
Under Nourishco, the Tata Copper Plus brand, which is copper treated water, had achieved 48% year-on-year growth in the September quarter, D’Souza said, due to its unique proposition. This came despite unfavourable weather conditions, helping NourishCo turn in an overall revenue growth of 25% for the September quarter and 44% for the first half of FY24.
The Himalayan brand of premium packaged water, on the other hand, had also turned profitable and the company was using the brand to expand into other edible categories such as honey, saffron and other premium preserves.
In the September quarter, the company had forayed into the premium Kashmiri saffron segment with a grade offering, D’Souza added.