Stockrabit · Analysts
Questions across 3 calls

Vivek M

Firm not listed in source transcripts

Swiggy Limited

Analysts/Institutional Investor Meet/Con. Call Updates Swiggy Limited has informed the Exchange about Transcript of the Earnings Conference Call for Analysts and Investors conducted on December03, 2024 · 2024-12-03
Hi, good evening team. A couple of questions. The first question is, your food delivery business I know still is at an early stage, but you are a sizable player with sizable GMVs, GOVs. What is the trend that you are seeing on the ground? Because a lot of consumer companies are talking about slowdown. The quick service restaurant industry has been dealing under pressure with the SSS number negative. If you can just quickly talk about how the landscape is on the consumption side, that will be very useful.
Got it. And just as a follow-up, because beyond your numbers, you will be let's say, meeting the restaurant partners, talking to them. Do you think there is a or do you get a sense that the partners are, let's say, going through a bit of a slowdown pressure right now, on the dining side of things?
Swiggy Limited CC-Sep24.pdf · 2024-12-03
Hi, good evening team. A couple of questions. The first question is, your food delivery business I know still is at an early stage, but you are a sizable player with sizable GMVs, GOVs. What is the trend that you are seeing on the ground? Because a lot of consumer companies are talking about slowdown. The quick service restaurant industry has been dealing under pressure with the SSS number negative. If you can just quickly talk about how the landscape is on the consumption side, that will be very useful.
Got it. And just as a follow-up, because beyond your numbers, you will be let's say, meeting the restaurant partners, talking to them. Do you think there is a or do you get a sense that the partners are, let's say, going through a bit of a slowdown pressure right now, on the dining side of things?

TATA CONSUMER PRODUCTS LIMITED

TATA CONSUMER PRODUCTS LIMITED CC-Dec23.pdf · 2024-02-08
My first quest ion is related to what earlier participant asked. Sunil, in terms of portfolio, so while we like the growth agenda, but do you not think that there is a bit of a co mplexity in the portfolio with Organic India also overlapping with some of the existing port folio, and so on and so forth. How do you think about this? Do you think at some point of time, you will have to think about consolidation? And can this also have a drag on the bandwidth of the team? Sunil D’Souza: So Vivek, let me answer it this way. For the overall complexity and before commenting on Organic India specifically. Complexity is dealt with depending on how you structure your team to play on, right? So while you see a lot of new launches, etcetera, they are not on the offline business. They're not in the general trade because that is where the confusion can arise because of limited amount of bandwidth for the front end. Some of it is not even in modern trade because I do not think these products will move off the shelf in modern trade and/or c reate complexity for the team. So you would see the entire portfolio definitely play online because on online for my entire portfolio without complicating anyone's life. So that's number one. So the -- for example, dry fruits, we launched only online. The n as it gained traction, we are looking at select -- we're still not into -- we are not into all of modern trade. We are looking at select modern trade. We have still not ventured into general trade, but products which have got traction, we go all across the place. Sonnets, for example, will be for the foreseeable future only online. It was that these products were already being produced by Tata Coffee. Th ey were under various different brand names or being sold B2B. We do see an opportunity to make some money out of this while building a decent provenance brand of Tata Coffee. Now coming specifically to Organic India. Organic India portfolio is primarily into, I would say, 2 parts: the first part is what I call organic tea and more importantly, infusions. And the second part is supplements. Supplements, absolutely, there is no overlap at all, and that is completely on its own. On the tea space -- on the infusion space, we play in tea , organic. And most of it is loose tea, a little bit of teabags under Tetley green, black and various flavors. Organic India is completely tea -- completely organic, and more importantly, the large part of their portfolio is infusions. If anything, it right now, the way we see it, it complements our portfo lio. But that said, we have just started work on building out the entire innovation pipeline and where to play in both Capital Foods and Organic India. As we work t hrough the details, extremely mindful of the point that you made is not to create confusion in the ranks as we execute, making sure that all these businesses are value accretive.
Got it, Sunil, for the detailed explanation. Just a kind of a foll ow-up to this. I mean, over the last few years, you have done small to reasonably sized acquis ition. And I remember at the time of acquisition call recently, you mentioned that the capital raise would be with the mindset that you still want to have enough cash on your balance sheet. But -- and again, I understand the uncertainty around M&As. But do you think that you have brand architecture pretty much in place, so the acquisition, incremental acquisitions need to be really solving some problem or a portfolio gap? Or let me ask you what would be your thought process in terms of M&As from here? What kind of targets you will go after, now that you have like quite a few brand platforms architecture in place? Sunil D’Souza: So Vivek, let me put it this way. When w e started our journey 4 years back. We had done detailed mapping of the food and beverage un iverse. Every category of size, if I remember, we had looked at 30-odd different categories of INR5,000 crores plus where there were options for us to play and create value. We have made substantial progress, but we are not there quite yet. Capital Foods, for example, complements from a cuisine perspective. We cover all the 3 cuisines, I would say, Indian with Sampann, Western with Smith & Jones, and then I would ca ll the oriental piece with Capital Foods. Apart from that, it gets us into categories of chu tneys, dips, sauces, noodles , which we did not have in our portfolio. Similarly for Organic India. Now while these have filled in some gaps in our portfolio, I t hink we've still got options to play. But as you rightly said, and we have always maintained, we will grow organically, inorganically. We've also publicly said that right now, in the short term, we will put our heads down, make sure we integrate these busine sses and deliver value. But we remain quite open to organic and inorganic options to go forward. So short answer, this is not the end of the road for M&A. We've still got options to play, providing they make sense, both from a strategic and financial perspective. And when I say the strategic perspective, filling gaps faster than what we can on o ur own on our entire food an d beverage road map.