TATA CONSUMER PRODUCTS LIMITED CC-Nov25.pdf · 2025-11-03
Yes, thank you so much. Good evening, Sunil and team. Sunil, I had 2 questions, both on NourishCo. First one was that Campa started in your territory, which is mainly, say, Orissa, AP, Telangana, and post that, they've sort of expanded. So is it that over the last 1.5 years as we see the growth accelerate this quarter, it is mainly the case that we put our distributor margins in place or is that the competition from Campa has sort of stabilized and that has also helped in terms of its growth improving? Sunil D’souza: So I think last year, we had said very clearly, the INR10 proposition has not changed. It is just that Campa came in with 2x the retailer margin. It is not distributor. It is 2x the retailer margin that they were offering versus our INR0.80 and thereabouts, they came in with a INR3.50. And in categories like soft drinks and water, the retailer plays a very, very big role because that's impulse, you're thirsty, at the point, you're willing to pick up what the retailer is giving you. That was what made the difference. We should have taken the shot early in 2024, but we did not see it. And finally, by the time we took this thing -- action was about June of last year. So we've cycled more than 1 full year of -- and as I said, as long as your product proposition to the consumer is strong and you execute against that, I see no reason why anyone else coming in can disrupt this thing. So we did index our price. And therefore, you see -- even this quarter, you see volume at 31% but value at 25%. So we did do that indexation. But going forward, we'll continue to maintain that and be competitive both on a retailer margin as well as consumer value proposition.
The second one was a hypothetical question. There is obviously a scale up in terms of the competitive intensity from the reliance itself in hydration, the bottled water segment. Himalayan is obviously a very different segment. But in case of Tata Copper, in case you see a similar kind of aggression play out of maybe where retailer margins have stepped up and there is more volume sort of effort, then what is the thought process we have to sort of not see a repeat of maybe what happened with the other portfolio? Sunil D’souza: So we're very, very clear. We will not lose market share this time around to retailer margin. We're keeping a close eye on it. Either retailer margin or consumer value proposition, if it changes, we will react. To me, maintaining market share is always a better proposition because I can build back margin at a later point of time. Maintaining margin and losing relevance and market share is not an option.