Tata Consumer spicing up market share game with Organic India buy

livemint.com:

Tata Coffee with Tata Consumer Products Ltd and TCPL Beverages and Foods Ltd on 1 January signifies Tata's strategic initiative to bolster its standing in the flourishing FMCG market. Notably, Tata holds a substantial 21% market share in the Indian tea market. Tea stands as a foundational product and a crucial component of Tata Consumer Products Ltd's portfolio, contributing around 32% to the company's total consolidated revenue in FY23.

The market potential for the product categories represented by Organic India, currently generating a turnover of ₹370 crore, is significant, reaching ₹7,000 crore in India and ₹75,000 crore in international markets. Available in over 48 countries, primarily in India and the US, Organic India's product portfolio focuses on sustainable living, including herbal supplements, tea & infusions, and organic packaged foods. With connections to over 12,000 farmers and comprehensive organic certifications throughout the supply chain, Organic India has pioneered the commercial cultivation of tulsi and introduced high-value medicinal crops in India.

Featuring a portfolio of over 100 products in the health & wellness sector, this acquisition seamlessly aligns with the Tatas' strategic vision to enhance their presence in the health & wellness category. Despite witnessing growth in volume, Tata Consumer has experienced a decline in market share over the past three quarters. It is pursuing a dual strategy for growth.