Rakshit Ranjan on why Marcellus is betting on agile players over traditional FMCG giants
"Tata Consumer is a very different business compared to where it was even till last year and very-very different from where it was four or five years ago. And it is this capital allocation intensity of some of our consumption picks, which is what we are trying to play rather than the standard FMCG of a little bit of market share gain in the existing categories and nothing new in terms of capital allocation beyond the core," says Rakshit Ranjan, Marcellus Investment Managers.
Well, I directly get into stocks because I look at a couple of your holdings, especially Asian Paints and Titan and both of these two are going through industry disruptions at this point of time. Just this morning, Investec wrote on the paint sector, talking about how Birla Opus is getting a lot of good response from customers. Titan, of course, is going through its own lab-grown diamond disruption. What then still makes you hold these stocks?
Rakshit Ranjan: So, both of those are slightly different in nature. Titan is an industry disruption, as you rightly picked it up, whereas Asian Paints is a competitive intensity rising significantly. There are two different parts of how a business gets affected.
On Titan, the reason why we have actually significantly trimmed our exposure in the last six to eight months has been precisely this uncertainty that is rising on the horizon. It is a very small position now.
But Titan is a company which is working on multiple engines of growth. They have proven via CaratLane what they can achieve in small
