Good morning shareholders. I'm Delnas Dara Harda, company secretary of Tata Consumer Products Limited. I welcome you all to the 62nd annual general meeting of your company. In compliance with the applicable laws, we are holding this AGM through audiovisual mode. Even though most of you are familiar with the process for attending this virtual AGM, I would briefly take you through certain important points. All members who have joined this meeting are by default placed on mute mode by the host to avoid any disturbance arising from the background noise and to ensure smooth and seamless conduct of this meeting. The live streaming of this meeting is being webcast on NSDL website. The company has received requests from few shareholders to register them as speakers at the AGM. The shareholders have been registered on a first come first serve basis. During the Q&A session, chairman will announce the names of the registered speaker shareholders who will be given an opportunity to speak one by one. To start speaking, the shareholders are requested to unmute themselves and click the video button on only once and wait till the audio and video is on. If the shareholder is not able to switch on the video, they are for any reason the shareholder can speak through the audio mode. While speaking, we would request speakers to use the earphones so that they are clear and audible. Minimize any noise in the background. Ensure that the Wi-Fi is not connected to any other device, no other background application is running, and there is proper lighting to have a good video experience. If there is a connectivity problem at the speaker shareholders end, we would invite the next speaker to join. Each speaker is requested to limit their speech for 3 minutes to allow all shareholders to express their views. In case of any question asked by you remain unanswered, you may email your query to the company at the investor email ID. In case of any technical difficulties, you are requested to refer to the helpline number mentioned in the notice of this meeting. I would like to now briefly take you through the e-voting process. The company's act and SEBI listing regulations provide for electronic voting. Accordingly, the company has provided its members the facility to cast their votes through the remote e-voting system administered by NSDL. The remote e-voting period was open from June 14 at 9:00 a.m. till June 17 at 5:00 p.m. India time. For members attending this meeting who have not yet voted, the facility to vote during the meeting is also available which is active now. Members can visit the voting page of the NSDL e-voting website and cast their votes and simultaneously attend the meeting. Mr. Parik and failing him Mr. Mitesh of Parik and Associates have been appointed as scrutinizers to scrutinize the votes cast at the meeting and through remote e-voting. Since the meeting is conducted through audiovisual means and the resolutions mentioned in the notice have already been put to vote through remote e-voting there will be no proposing and seconding of the resolution. The chairman of the board Mr. N. Chandrasekaran will not be able to attend the AGM due to some exigencies. Accordingly, as per the articles of the company, directors have elected Mr. PB Balaji to as the chairman of this AGM. With this, I would request the chairman for the meeting to please take over the proceeding. Thank you.
Thank you, DAS. Good morning shareholders. I'd like to welcome all of you to the 62nd annual general meeting of Tata Consumer Products Limited. I thank all the members who have joined the meeting. As the requisite quorum is present, I'm calling the meeting to order. Given the tragic incident at Ahmedabad last week, this is a very difficult moment for the group. We are in shock and mourning. To lose a single person we know is a tragedy, but for so many deaths to occur at once is incomprehensible. This is one of the darkest days in the Tata Group's history. Words are no consolation right now, but our thoughts are with the families and the loved ones of the people who died and who are injured in the crash. We are here for them. I do like all of us to observe a minute silence to pay our respects to all those affected by this heartbreaking tragedy. The Ministry of Corporate Affairs through its general circular has permitted the holding of this AGM through video conference and other audiovisual means. Hence in compliance with the directions of the Ministry of Corporate Affairs and as per SEBI listing requirements, this AGM is being conducted through audiovisual means. The live streaming of this meeting is also being webcast on NSDL's website. The company has taken the requisite steps to enable members to participate and vote on the items being considered in this AGM. I'll now request the board members who have joined this meeting through video conference to introduce themselves. As I call their names, I request the directors to greet the shareholders. Now I request Shikh Sharma to introduce herself.
Welcome shareholders. I'm Shikh Sharma, independent director of Tata Consumer. I'm also the chair of the nomination and nomination committee and a member of the audit committee, the NRC and the risk management committee of the company. I'm joining this meeting through VC in Mumbai.
Thank you ma'am. Dr. KP Krishna.
Morning shareholders. Good morning Mr. Chairman, directors and the company secretary. I join Mr. Balaji in welcoming the shareholders. I am KP Krishna, independent director of the company. I chair the audit committee and the stakeholders relationship committee. I'm also a member of the corporate social responsibility committee. I'm joining this meeting through VC from my residence in Delhi. Thank you.
Thank you sir. Mr. Batpuri.
Good morning and welcome shareholders. I am Bhat Puri, independent director and chairman of the risk management committee. I'm also a member of the audit and nomination and remuneration committees. I'm joining this AGM through VC from my hotel in the UK.
Thank you sir. Mr. David Crane,
Welcome shareholders. I am David Crane, independent director of the company and chairman of the corporate social responsibility and sustainability committee. I am also a member of the audit and risk management committees. I am joining this meeting through VC from my home in London.
During the year, Mr. Sarat Chowri ceased to be a director of the company. I'd like to express our deep appreciation for the valuable contributions made by Mr. Sarat Chowri during his tenure as an independent director on the board and wish him continued success in his future endeavors. With me present here in Mumbai are Mr. Sunil D'souza, managing director and chief executive officer to my left, Mr. Ajit Krishna Kumar, executive director and chief operating officer to my right, Mr. Ashish Goenka, the group CFO, and Ms. Delna Sada, company secretary. Mr. Shivkumar, chief financial officer of the company has also joined this meeting through audiovisual means from his corporate office in Bengaluru. The statutory auditors Mr. M. K. Jain and the secretarial auditor Dr. R. K. Chattopadhyay have joined this meeting online from Mumbai and Kolkata respectively. Additionally, the members of the senior leadership team of the company have also joined this meeting virtually from their respective locations. The company has received board resolutions from eight corporate shareholders appointing and authorizing representatives under section 113 of the Companies Act 2013. These representatives represent 33 crores 73 lakhs 11,614 shares which is 34.09% of the paid up equity share capital of the company. As there's no physical attendance of members, the requirement of appointing proxies is not applicable. The registers as mandated by the Companies Act and the documents specified in the AGM notice are available for inspection. Since the notice convening this meeting is already circulated to the members, I take the same as read. Since the statutory auditors have not made any observation, qualification, disclaimer or comment in their report regarding the financial transaction or matters adversely affecting the functioning of the company, there is no need to read the auditor's report. Before we proceed with the meeting, I'd like to take a moment to express our profound sense of loss on the passing of Padma Bhushan Mr. Ratan Tata on October 9th, 2024. A distinguished business leader and philanthropist, Mr. Tata's remarkable vision and achievements have shaped both the Indian economy, the Tata Group and Tata Consumer Products where he was appointed as a director since 1991 and a chairman from 1995 to 2012. He was a truly uncommon leader known for his integrity, foresight, unwavering commitment to excellence. Under his leadership, the company and the Tata Group expanded their global presence while remaining rooted in strong ethical values and the spirit of nation building. Mr. Tata also embodied the Tata ethos of giving back to society. His initiatives in education, healthcare, sustainability and rural development have left a lasting impact on countless lives. We at Tata Consumer Products want to express our immense gratitude to him for all his contributions. His principles, vision and vision continue to guide us at every step of our journey and we are deeply committed to upholding the standards he set.
I'd like to now share a few thoughts on the performance of the company. We are navigating through a world that is both dynamic and demanding. Geopolitical uncertainties, shifts in global supply chains, advances in generative AI, and climate events continue to test business resilience. Yet, even amidst this volatility, we find ourselves at a moment in history where innovation, transformation, and consumption-led growth are converging. Global growth is expected to moderate in the near term with IMF forecasting a 2.8% expansion in 2025. India remains one of the fastest growing large economies in the world with a GDP growth estimate north of 6%. Against this backdrop, we are witnessing significant shifts in consumer behaviors and business models. Consumers are becoming more health conscious, seeking better for you and organic options. There's a clear premiumization trend even in staples. With urbanization, time constraint consumers are seeking convenience leading to rising demand of cooking aids, ready-to-drink beverages, and snacking. Distribution is being reshaped by quick commerce but physical retail remains deeply relevant even today. The digital first marketing and hyperpersonalization are rewriting the brand playbook. At the same time, artificial intelligence is rapidly transforming every function from demand forecasting, content generation, inventory optimization and pricing intelligence. Companies that embed AI deeply into operations will lead the next phase of value creation. Tata Consumer, you'll be happy to know shareholders, is leveraging these trends with a bold strategy, disciplined execution and ambition to build a future ready FMCG powerhouse.
Talking about Tata Consumer in greater detail. 5 years ago this company was formed. We had a large single category footprint tea and coffee. In the 5 years since, your company has undergone significant transformation. Today, it is among the fastest growing F&B companies in India, operating across multiple categories and brands that touch millions of lives on a daily basis. Over the past 5 years, revenue has grown at an annualized rate of 13%, EBITDA has grown at 14% and net profit at 23%. This fiscal year, we continued this momentum with a revenue growth of 16%, EBITDA growth of 8%. And despite cost input inflation, the business has remained strong. Additionally, your company continued to drive balance sheet efficiencies with net working capital for the Indian business turning negative. The core businesses in tea and salt have not only sustained leadership but also premiumized meaningfully in India. In India, tea premium and mass market brands account for almost two-thirds of the portfolio. And in salt business, it has gained more than 700 bps market share over the past 5 years. And value added salts are now 10% of the salt business up from less than 1% it was 5 years ago. In the international business, your company moved from a fragmented global presence to a focused footprint exiting non-core markets. In UK, we became the number two branded tea player up from number four last year. Importantly, the UK business delivered its highest ever EBIT margin and overall international business is margin accretive to the India business. Our new growth businesses formed 30% of our India portfolio in line with our strategic portfolio transformation efforts. Additionally, last year we took two decisive steps to expand our play in high growth high potential categories with acquisition of Capital Foods and Organic India. With these two we have added two powerful food platforms to our portfolio. Capital Foods with umbrella brands like Ching's Secret and Smith and Jones give a stronghold in the fast growing in-home cooking aid segment with a pan India appeal. Organic India brings us differentiated mass premium wellness portfolio spanning teas, supplements and staples. Together they open up a large and growing total addressable market, deepen our presence in urban and emerging India and strengthen our ambition to become a holistic future ready F&B powerhouse. And innovation is a very critical muscle for us and over the last 5 years we've launched over 150 plus products and our innovation to sales ratio has now gone up to 5.2% from the lows of 0.8%. Amongst the best in the industry. Digital is embedded in the way we operate and not just a vertical. We use it to go to market, we use it to engage with our customers and beyond. And we have deployed several high impact AI use cases across sales, marketing, sourcing and R&D which Sunil is going to talk to you about. Execution excellence has been our absolute pillar and we have quadrupled our direct reach over the past five years to over 2 million outlets with a total reach of 4.4 million outlets. We have also strengthened our execution on emerging channels with e-commerce contribution growing greater than 5x enabled by the exponential growth in quick commerce. As we look into the future, we are deepening our focus on quick commerce, pharmacy and food services as high potential emerging channels. Sustainability is central to our strategy and purpose and guided by the Tata Group's Project Aalingana. We are embedding this into every aspect of our value chain from sourcing and packaging to operations and community. This year, Tata Consumer was recognized as the number one most sustainable consumer goods company in Business World's most sustainable companies ranking. Our Sustainalytics score improved by 15% and we retained our MSCI AA rating. At the heart of our transformation is a strong focus on building a future ready organization, one that is agile, inclusive and deeply aligned with our purpose. We are taking a deliberate approach to grooming internal talent and this includes creating structured leadership pipelines, cross functional learning experiences and long-term capability building. Our goal is clear: to nurture talent from within and build an organization that leads not just today but into the future. So to conclude, the roadmap is already delivering results. It positions us well for what lies ahead. We see opportunity in creating an FMCG powerhouse and building brands of tomorrow for the modern India and the global consumer. Our investments in AI, talent and digital ecosystem will help us operate with greater precision and speed. We have built a strong foundation which has been shaped by the values of the Tata Group and a portfolio of purposeful brands, a resilient operating model and a team of talented individuals committed to excellence. I thank each one of our employees, partners and stakeholders for their unwavering commitment and support. And I also thank you, our shareholders, for your trust, belief, and participation on this journey. Together, we will create long-term sustainable value for all. I now request Mr. Sunil D'souza, managing director and CEO to make his presentation. Sunil, thank you.
Yeah. So Tata Consumer Products we are an integrated food and beverage company with the rich heritage of Tata aspiring for a larger share of the FMCG world. We delivered 17,600 crores consolidated revenue in FY25 with a market cap of 1 lakh 14,000 crores. We're among the top 10 FMCG companies in India. The number two branded tea player globally. We've got a reach of 275 million households in India and distribute to 4.4 million retail outlets. Our total workforce globally is about 25,000 people. We have a house of very strong brands. Tata Salt is the number one salt brand in the country. Tata Tea is the number two brand in India. Tetley is the third largest tea brand and all our brands put together the number two tea player now in the UK. We've got the largest tea brand in Canada with Tetley. Himalayan is the number one natural mineral water brand. Tata Sampann is a national brand now in pulses, spices, dry fruits and other staples. We have India's leading Chinese cuisine brand with Ching's, the fourth largest roast and ground coffee brand in the US with Eight O'Clock, and the leading organic food and beverage and herbal supplements brand in Organic India.
In terms of financial performance, our consolidated revenue for FY25 was up 16%, 9% organic growth. Our group net profit was up by 6%. The India business organically grew 8% and including the acquisitions grew 19% with growth across beverages which was up 10% and foods which was up 29%. The international business was up 7% and non-branded was up 21%. Our consolidated EBITDA for the year was up 8% with EBITDA margin at 14.2%. We had strong cash flow conversion with operating cash flow to EBITDA at 101%. The proposed dividend for FY25 is 8 rupees 25 paise per share. In terms of key businesses, India beverages was close to 6,000 crore with a 10% growth. India foods was 5,600 roughly at 29% growth. International was 4,200 growing 7% and non-branded was 1,900 growing 21%. Overall 17,618 crores up by 16%. This 17,618 crores delivered 2,252 crores of EBITDA which was up by 8%. PBT was 1,782 crores which was negative 12% which was primarily impacted by three points. Number one was the fact that we had strong inflation in tea prices. Number two was there was interest on account of bridge financing that were taken for the acquisitions. And number three was the amortization of the new brands that we've taken over. Our group net profit was 1,252 crores which was negative 17% and group net profit was up by 6% at 1,287 crores and now we're back to being cash positive with 1,808 crores in the bank.
The past five years of Tata Consumer Products, FY25 we grew 19% with a CAGR over the last 5 years now at 16%. Our revenue international was up by 7% with a CAGR over the past 5 years of 5%. Consolidated therefore we grew FY25 at 16% with a CAGR over the last 5 years of 13%. Consolidated EBITDA was up by 8% and a CAGR delivery of 14% over the last 5 years. Our group net profit again was up by 6% and the CAGR in the last 5 years was up 23%. And we've unlocked significant efficiencies while delivering shareholder returns. We have almost halved the working capital that we use for the business. In fact, the India business is now at a negative 1 day of working capital. EPS has grown 2 and a half times plus from 5 to 13.1. Our operating cash flow to EBITDA is now north of 100% at 101% and we've consistently paid out a dividend to shareholders. This has resulted in a steep change in market capitalization from 32,000 crore is now 1 lakh 14,000 crore, a 5-year CAGR of 27% and a 3-year CAGR of 16% respectively.
We've redefined our strategic priorities. We tweaked it around and we brought in execution which you see right in the middle of the slide as one of the key strategic priorities. So our six strategic priorities are: strengthening core and accelerating our growth businesses that we already had; we've acquired new businesses and now we need to build on those new opportunities and also keep an eye out for any coming down the road; drive execution excellence every day to deliver top-notch results; create a future ready organization and focus on talent and people; drive digital and innovation which are core capabilities for success for today as well as for the future; and of course being part of the Tata group we need to embed sustainability in line with Project Aalingana in everything that we do. Talking about our business overall, we fueled our brands across platforms and maintained a steady ad to sales ratio. 7.2% was the number for FY25. As new channels emerge, we've continued to build omni-channel capabilities. Direct reach is triple of where we started in March 2021 with 2 million outlets now reaching directly and our total numeric reach is double from where we started at 4.4 million. We focused on channels of the future. Modern trade for FY25 grew 18%. CAGR over the past four years was up 19% and we've literally doubled the business. E-commerce including quick commerce for FY25 grew by 57%, delivering a CAGR in the past four years of 43% and our business is 4x from where we started. We focused on our growth businesses. They've now crossed 3,200 crores of revenue in FY25. Overall growth businesses delivered 76%. The organic growth businesses delivered 18% and growth businesses now are 28% of our India business. And we've delivered consistent growth across all the growth businesses. Tata Sampann is 3.8x from where we started in FY20 with a CAGR of 31%. We acquired our share of PepsiCo in the JV that we had with them in NourishCo and we've grown the business 5x from then at a CAGR of 49%. Tata Soulful also we acquired in FY21 and we've grown 4.7x from where we started at a CAGR of 47%.
Innovation is the lifeblood of any FMCG business and we focused on that delivering a top-notch innovation sales to sales ratio of 5%. We've had a launch one launch every 9 days in the last year. Sustainability is focus for us and if you look at any benchmark whether it is maintaining our ratings in MSCI, improving our Sustainalytics ratings or improving our S&P Global ratings and being included in the S&P Global Sustainability Yearbook for 2025. We've improved across the board.
To run you quickly through our different businesses. India beverages, packaged beverages volume was up 1%, net revenue was up 4%, the 5-year CAGR in this business is up 8% and last year we implemented price increases across the portfolio in a calibrated manner in the second half. Coffee is the other big focus in this business. It continued its strong trajectory and grew by 33% last year. We continue to remain leaders in the e-commerce channel with a 42% value market share. India foods volume was up 4%, organic revenue was up 13% and including the acquisitions revenue was up 29%. Salt revenues grew 8% with volume growth of 4% last year. In line with the premiumization agenda, value added salts grew 31% last year. Pulses revenue growth for Tata Sampann was 29% and Soulful grew 32% last year. Ready to drink portfolio which came under pressure from competitive actions has now turned the corner. We had improving trajectory on value. Tata Copper Plus which is our water business grew by 18%. 13% volume growth in our ready to drink business delivering a revenue of 835 crores. Our total volumes were up 13% and total revenue grew by 2%. The premium segment continued to show strong growth at 19%. Our two new acquisitions of Capital Foods and Organic India combined gross margin is 49%. Organic India delivered 374 crores. Capital Foods 799 crores combined 1,173 crores. Capital Foods and Organic India post acquisition grew 19% on a combined basis including our international operations. Also they helped us build our new channels of food services and pharma which are now being rolled out in line with expectations. A non-branded business, solubles business revenue was up by 11% and total revenue growth was up 20%. Plantations grew 47% year on year. Tata Starbucks opened 58 new stores. We are now at 479 stores in 80 cities and the revenue for the year grew by 5%. Growth has improved sequentially growing 7% in the second half versus 3% in the first half. We celebrated 100 stores in the city of Mumbai and 50 stores in Bangalore.
Our international operations as in line with our strategic focus continue to expand margins. 190 bps was the EBIT margin expansion and net revenue grew by 7%. In terms of awards and recognitions, we had several of them. On a corporate front, we won six India Star Awards for excellence in packaging by the Indian Institute of Packaging in Mumbai. The best shared services leader of the year in food and beverage at the 15th Shared Services Summit and Awards 2024. Our FY23-24 integrated report won gold for best financial content in print and best social media campaign at the Content Leadership Awards. We won gold for Margoli estate, silver for Kovacoli for our Arabica coffees at the Anestoli International Coffee Awards 2024. In sustainability, we were ranked India's number one most sustainable consumer goods company by Business World and number two in the top 50 most sustainable companies across sectors by Business World. We won the FICCI Sustainable Agriculture Award 2024 and our packaged beverages Sampann and NourishCo packaging centers won the prestigious President Award for National Energy Conservation 2024. In terms of brands, Tetley won the ET Gold for FMCG in beverage. Tata Salt Immuno, Tata Coffee Grant, Tata Copper Plus Jelly energy drink won the NielsenIQ breakthrough innovation awards. Himalayan won gold for the most popular brand of water at the BBB Awards 2024 and Tata Soulful won the Golden Spoon brand retailer partnership from Reliance Smart Point. I now hand you back chairman.
Thank you Sunil. Moving on to the Q&A session. I'd like to extend an invitation to all registered shareholders who wish to speak at this meeting to share their views. As a considerable number of shareholders have registered, I have a list of 50 with me. I request everyone to be brief so that we can ensure there's opportunity for all shareholders to speak and therefore I request if each of you can restrict yourself to a 3-minute window that we have all agreed to work with. Thank you for your understanding and cooperation. Let me probably now call out the shareholders by name and then request your inputs. Starting with Dr. Arun Bopana.
Hello. Yes, sir. Can you hear me? Yes, sir. Yeah. Thanks to the CST for arranging this VC. I won't start with good morning. It's a sad morning if you ask me with all the devastating accident which happened which shook the nation. On the 9th of October 2024 in deep reverence to Ratan Tata the heavens opened up and the gods themselves came down in homage to take him home. It's an honor for the Tata group. It was a farewell far beyond the Bharat Ratna that people are seeking for Ratan Tata. Ratan Tata was born as a ratna for Akhand Bharat, a timeless jewel of this civilization, not just India of today but that of the spirit of dharma. As long back the light of the stars that were extinguished years ago still reach us. So it is with great men who died still reach us with the radiation of their personality. Same happens with Ratan Tata. To me Ratan Tata was divine in human form. Now coming to the business, the present and future of FMCG when cost is a king and cash is a queen. How do you see the future of FMCG in India as we live in a world of inflation, compensated supply shocks etc. Can it be met with vision and address the volatility and costs? How do we future proof our business by investing in digital agility and nurturing trust? Trust is not built only in boardrooms but in kitchens, kirana shops where our brands truly meet people. And India's demographic dividend is real. As they say by 2020, Gen X and Millennials will drive 76% of the consumption. Is it a challenge or a great opportunity? I think it's a great opportunity. Does TCPL have a clear Gen X playbook? Are we adapting pricing strategies to suit their aspirations? TCPL is no longer just about tea, salt or coffee. It is becoming a wellness enterprise shaping lives and lifestyles. So what is the roadmap ahead? With better sourcing, better nutrition, sustainability-driven product design. Are we into regenerative farming partnerships with anybody in India? What are TCPL's roadmap for ready to cook and health forward foods? Are there partnerships or innovation clusters emerging for long-term growth? In closing, let this year be where TCPL is not only a market leader but also a moral global leader. In closing, I would like to again pay tribute to Ratan Tata for his values-driven leadership. Ratan Tata had access to every corridor of global power yet he avoided political entanglements. He never raised his voice yet moved a nation, never chased limelight but chased what was right. When noise was rewarding, Ratan showed power of quietness and silence. Some legacies are etched in stone but Ratan's legacy in every heart of Indian. Thank you very much.
Thank you Dr. Bopana. May I request Mr. Manus Banerjee.
Yes, sir. You're audible, sir. Please go ahead.
Your audio is breaking so if you don't mind could you just switch off your video then maybe the signal could be better.
Okay. Okay. Thank you. Thank you sir. Perfect sir. Go ahead sir. I convey my gratitude to respected company secretary Madam Delna Dara and regard investor services, our professionalism, transparency and responsiveness with shareholder ensuring we stay informed about matters. I would like to express my sincere appreciation for the company's outstanding performance. The healthy dividend payout is a testament to the company's financial stability. The numerous awards received are a recognition of the team's hard work and dedication. Furthermore, I commend the company's excellent CSR policy which demonstrates a strong commitment to social responsibility. Congratulations to the entire team for their efforts in making this a successful year. Now I come to my queries. Number one, sir, I understand that e-commerce is growing very well for us. How is the e-commerce business driving the net working capital for us in general? My second query sir, where is Tata Copper now in terms of the portfolio mix? My third question sir, do you see significant risks to revenue momentum to US market given recessionary risks? Sir, my final query is on the unbranded coffee business. I just trying to understand how are you thinking about the revenue growth and margins from here on. Thank you so much. Wish you all the best. Over to you sir for next proceedings.
Thank you Mr. Banerjee. Mr. Hanand Kotwani.
Namaste. Respected chairman of the are you audible? Yeah. Yeah. Yeah. It's a great pleasure but such sad news has already at our mind but business must go on as life is going on. Okay. Namaste to all. It is a company has done well. I have to acknowledge this gentleman D'souza's working for last five year. We have to acknowledge this company has done well from last five year. PC has to cry. I am associate with this company of 40 years. Earthwite Tata company but certainly lot will be spoken but my only concern is that our marketing part because all the medical store general store when I went and asked for the Himalayan water he's not able to give so still the lot of scope is there growth and prosperity is there ahead how we are going to cope up with
So we lost you, sir.
Mr. Kotwani, can you hear us?
Hello, I am Adal. Yes sir, we got your but only concern is that how the company will do future road map increasing the growth and prosperity and the marketing because coffee we go and goodwill trust we can marketing is very important. How we are going to cope up that is my concern. All is well. Thank you and good luck ahead.
Thank you Mr. Kotwani. I have MP Vishal Awani speaker number four.
Yeah. Am I audible sir? Yes ma'am. Please go ahead. Good morning chairman sir and the members of the board. My name is P Nathwani. I'm a proud shareholder of Tata consumer and a member of Millennium Man's Rajkot team. Sir my question is we do not see a national level ad done aggressively to be included in the list of FMCG companies. How does a company plan to expand knowing the food and beverages is just 18 to 19% of the FMCG sector? Thank you sir.
Thank you ma'am. I have Mr. Manoj Kumar Gupta. Next one.
Hello. Yes sir. Go ahead sir. Good morning respected chairman of the meeting board of directors fellow shareholders. My name is Manoj Kumar Gupta. I've joined this meeting from the city of Joy Kolkata. I feel proud to be a seller of Tata consumer. But it's very unfortunate or sad for us that we have lost our icon and we are a great admirer of Mr. Tata. We have lost that great person on 9th October. We can't forget his contribution in the field of industry or in the field of social life of a human man. But the both are of Tata consumer are in Tata and we of the city of joy can't forget their contribution for the human life and employees and the social field. Mr. Tata was very aggressive for the business and Mr. Krishna Kumar was very aggressive for the acquisition whatever the Tata consumer is today all credit goes to Mr. Krishna we can't forget his contribution sir and I thanks to the company secretary and team for excellent work to help us to join this meeting through VC but we of Kolkata are missing from six years to meet you physically because you are not coming to Kolkata to meet physically to the investors and today we are missing our chairman we want to hear some words from him but we are missing him due to a sad accident of Air India but sir I can't say a single word on that issue because there is some politics and there is some propaganda gang is going against the Air India by some some people are behind to give a wrong impression on Air India in the mind of passengers so I request Mr. Chandrasekaran to bring back the confidence of passengers on Air India because people are losing their faith and confidence on the Air India. Now the people do not want to travel. Convey our best wishes that he should success to bring back the confidence and make the Air India global aviation in coming time under his leadership with the team of management. to convey our feeling to him. Sir, he's not today. So we and we I have a great respect to you also because you're in the Tata Motors. We know that you have done a lot of thing for Tata Motors. So I believe that you will convey my feeling to him to do something in regard of Air India to bring back the confidence. Sir what's your future plan? How you will reward to the investors and I thanks to the MD for his nice presentation CEO Mr. Ajit Krishna Kumar and said drinking water to near to registered office from last two years. I'm asking station wave. under the umbrella of near to your registered office or near to that metro station. big basket unavailable product the product should be available rational what the position of our Russian business because there is a tussle between Russia and Ukraine is there an impact on our business in Russia Russia business and do something under the CSR in Kolkata in the field of health and education this say Mr. Tata vision health or education support to keep continue that legacy in future also from under the CSR and try to reduce the expenses. I will take one and a half minute more sir and several disputed demands pending before the various platforms in your auditor reports. So how you will handle and what steps are you taking to resolve these issues and save the legal expenses? Any plan to bring Tata 1mg under the Tata consumer products limited sir Tata 1mg is very popular in every respect. So any plan to bring that company under the Tata consumer and any plan to enter in business biscuit because last but also and thanks to the company secretary. Thank you.
Thank you Mr. Gupta. May I request Mr. Tamil Kumal Majimar speaker number six
Respected Balaji Sab Mr. D'souza Mr. Krishna Kumar Mr. Green and other directors of the company. Myself Tamil Kumal Majimar an equity shareholder from Kolkata. One minute sir. Sir today our chair how we are missing the presence of our chairman. Missing the chairman. Missing today we are missing the presence of Chandrasekaran. Hope he is well and please convey our best wishes to him. So thank you Balaji Sab and Mr. B and Mr. D'souza for sharing your thoughts with us and my special thanks to our company secretary Delna for for and well team consist of a smiling chief Shankaray and others for giving good for keeping good relation with shareholders. We are really happy to get an active company secretary to look after our interest. Sir last week the heartbreaking incident of Air India plane crash happened. Our prayers are with the family of the bereaved family. So as Mr. Tata is concerned his death it's really a personal loss for me also because during the last 20 years he has given so much love to a small man like me. I am really missing him.
Sir I have gone through the 591 page annual report subsidiary accounts earning conference call have some queries and as usual second year your legends seeking I sir during the year the revenue from operations and EBITDA increased substantially in relation to previous year yet group net profit and return on capital employed decreased by 17% and 13.4% respectively in relation to previous year. Dividend income of a massive 369.61 cr. Last year it was 67.92 cr in page 6 474 received from Tata Consumer Products UK group limited and Tata Consumer Products Capital Limited and repayment of loan using the proceeds from rights issue proceeds of rupees 2,997 cr during August 2024 also bolster our profit. So consolidated segment result for the year showed profit from Indian business decreased from 1,348 cr to 1,021 cr during financial year 25. International business and non-branded business did better by booking profit before depreciation and other unallocables of rupees 567 cr. Last year it was 478.5 cr and 460.7 cr. Last year it was 248 cr. Would you please share your thoughts in the respect disclosing the trend notice during financial year 24 26 sorry. Would you please share details in respect of rupees 120 cr as fair value gains on reimbursement on remeasurement of contingent consideration as disclosed in page 467. So it is noted that Indian food business including acquisitions did exceedingly well during financial year 25. how they are doing and your expectation for the current year. I have noted that tea and salt business increased by 1% and 4% respectively in volume terms during financial year 25 as concerned its increase in pricing terms was 7% as mentioned by Mr. Balaji and Mr. D'souza what was the increase of salt in pricing terms because in quantity terms it increase was 4%. Whether the trend will continue during the current year sir I have noted from the earning call dated 23rd April 2025 where Mr. D'souza mentioned that we have absorbed we have passed on about 30 or 28% or 29% of tea cost for the full year for the quarter it's now 46% with the price increase that we have taken through the year. So yes 54% of the cost have been absorbed. Could you please throw some light on it disclosing the current trend followed by the company in respect of absorption of increase in the cost of tea whether the said absorption affected our profitability during financial year 2025
and it is also observed that e-commerce and quick commerce contribute 14 to 14% of our business what is its contribution to our profitability during financial year 25 In addition to that, the company noticed continuous growth in pulses, dry foods and cold pressed oil. What was its contribution to our profitability during financial year 25 and your expectation for financial year 26? Answer why our masala and sambhar brand not notice such increase despite Tata at twist whether it break even as please share your thoughts. So sir, our company took control of Organic India private limited by paying a whopping 1,952 cr during financial year 25 against a revenue of 280.7 cr. It booked a loss before tax of 0.09 cr with positive retained earning balance of 113.55 cr as on 31st March 2025. Looking at its financials, don't you think that we paid more for its acquisition and it is noted that 40% of Organic India business comes from USA. How it is doing during the current year? I have three more questions sir. Sir Tata Consumer Bangladesh limited is still in bad. Its loss during financial year 25 was Bangladesh Taka 11.17 cr against revenue of 10.72 cr. Its accumulated loss of Bangladesh taka 83.04 cr surpassed its equity base of Bangladesh taka 65 cr. Would you please share your thoughts in this respect? So our company increased its investment in Tata Coffee Vietnam Company Limited by 168 cr 166 cr during the year it booked a profit of US dollar 0.41 cr during the year. Looking at the production of coffee robusta less than the projected, what is your expectation from the unit during financial year 26 and what is the reason for increase in investment during the year? But sir, it appears that time has come to take a decision on our investment in Amalgamated Planters Limited which is in very bad shape for the last couple of years. Please share your thoughts in this respect as well as in respect of Starbucks private limited. Sir, the company increased its investment in Tata Starbucks by 125 cr during the year. When do you expect it will contribute to our coffer positively? Answer. Lastly, what is the reason for abnormal decrease in employee benefit expenses of Capital Foods private limited from 109.70 cr in financial year 24 to 32.14 cr during financial year 25. If we deduct the rupees 35 cr as one time bonus paid during financial year 32 then there also lies a difference of rupees 32 cr. Would you please share the reason for such huge difference and sir it booked a PBT of 170 cr during financial year 25 exporting 15% of its revenue. What is your expectation from the unit during the current year and page 7474 of the annual report mentioned that
Reimbursement of expenses of rupees 131.25 crore paid to Capital Foods Private Limited by our company. Would you please share details?
As per Mr. D'souza, 35 to 40% to Telangana, Odisha 20 to 25% comes from the east, and 25% to 30% from remaining part of India.
What is our position in western India? What was the overall pan-India market share of Narisko during financial year 25 and your expectation for the current year? Thank you Mr. Chairman for allowing me to complete my questionnaire. Thank you all for patient hearing.
Thank you Ramalda. Uh, Mr. Biml Sarkcar.
Hello. Yes sir. We can hear you sir. Go ahead.
Uh good morning sir. I Bimal Krishna Shark joining from my residence. Respected chairman and other MPs, company secretary, president, and shareholders present in the meeting. That at first I thanks to the MB or CO their valuable and excellent presentation regarding company's performance. The thanks to company secretary department for excellent investment. Sir, question number one, case number 538, advertisement and sales charges increase by 18.3%. Sir last year it was 6,677.69 crores but this year 11 uh 1,155.84 sir please give details and what is the reason for increasing. Question number two, page number 538, expenses increased by 43.8%. Sir, what is the reason? Sir, please clarify or give detail. Sir, question number three. Sir, my CSR committee, thanks to the CSR committee for excellent performance. The CSR as per section 135 CSR obligation is 23.91 crores. Our DSR committee spent 21.67 crores total from ongoing project and other than ongoing project that 2.24 crores is not shown in the expenditure. Sir please explain 2.24 expenditure. Sir, what are the outlook? Number one, women empowerment especially poor women and their dependent. Sir, last question. Capital expenditure plan for next two years. Sir, I hope I pray to God sir you and your director and company secretary department in employees for good. Thanks for patient hearing. Thank you very much. Namaskar.
Thank you Mr. Skar. Uh Miss Lily Pradhan.
Yes. Yes ma'am. Go ahead.
Okay. Very good morning all chairpersons and all viewers. Myself Lei Pradhan from Kolkata attending the meeting through video conferencing. I am obliged that the management has given me chance to speak at this meeting. First of all, I would like to thank the board of directors, respected chairman, respected MD, respected CFO, respected secretary with secretarial team for wonderful arrangement and guiding me in advance for attending the meeting through video conferencing. This must be the VC in future because any part of the world persons can participate and express their dreams. As a secretary, Delnas madam always coordinated with me even all shareholders. I have very good appreciative personalized human beings overall very good investor services. I am really proud of her. I received email of notice well in advance and also annual report. The theme of cover page is very good knowledge. I wholeheartedly support all resolutions by team. I am very happy to know that the performance is developing a lot which is sustainable growth in nowadays. Now I have put some specific question at present situation. What is the credit rating of the company? What is the export increasing nowadays? What is the status of the export quality in all over country and what is the aim of object of future development by AI technology in all over country? What is the byproduct planning? What is the CSR activities on challenging persons? Micro analysis of CSR activities. What is the status of post cutting measurement and management? What is the capex plan for future development? Please marsby bif market architected analysis topline and bottom line group. Nothing more. Thank you. Thank you so much. All the best. As a woman speaker request always support women empowerment.
Thank you Mr. Prada. Uh now I have M uh Doli Dh Jane.
Good morning chairman sir and members of the board. I'm Doly Jane from Mumbai, a proud shareholder of the company and a member of Millennium Ma'ams. My question is with our prime minister's focus on well-being. How do you see the company capitalize on it? And secondly, wellness products are in demand in India and abroad. What is your strategy in this category for export? Thank you.
Thank you ma'am. Uh I then have Mr. Navin Botra.
Yeah. Chairman of the meeting, respected Mr. TV Wallaji, our MD and CEO Mr. Sunili, other distinguished board members and the management team at Tata Consumer. A very warm greetings to all sir. I am Navin Bra attending this AGM from Dindli. Congratulations to the team led by Mr. Bishuza for the good financial results in the financial year 2425. Sir, I have the following for your kind consideration and articulation. Theme of our this year's annual report is growing together for better and also in the chairman's message to the shareholders, our ambition we have conveyed that our overarching ambition is to be a full-fledged FMCG company. So after various acquisitions and restructuring in the group in the last five years we have now become a multi-product, multi-category food and beverage company and to further expand the addressable market. What are the new product categories in other segments we are considering over the next two to three years? Would request you to kindly throw more light on our strategy for achieving this ambition to be a full-fledged FMCG company. So I have already voted in favor of all the resolutions and propose a vote of thanks to the esteemed board. Thanks for the opportunity to interact and special thanks to our company secretary and our team for smooth onboarding in this virtual meeting and sending the physical documents well in time. Highly appreciated. Thank you sir. Thank you very much.
Thank you very much. Thank you Mr. Bodra. Uh I then have speaker number 11 uh Mr. Darra Vipul Jamadar.
Uh greetings of the day to respected chairman and all the board members of my company. My name is Dr. Darov Vipul Jamada residing from Surat Gujarat, a proud shareholder of our company and also loyal customer. Firstly I would like to pay my humble obeisance to Ratan Tata sir. Next, I would like to congratulate all the stakeholders of my company for their contributions. Due to which our company has performed tremendously well in this particular fiscal year and in turn it has helped us in generating impeccable and robust performance in the whole FY. Certain questions which I would request our board members to answer are: First, considering good monsoon and the recent price hikes in some of our products like salt and tea, how much more margin expansion can we expect in the second half of this fiscal year? Second, with the price hike and introduction of tariffs, there is always a major risk of losing market share. So how much market share have we lost till date and what is the overall FY25 forecast of market share? Third, what kind of synergy can we expect from the M&A done by the capital foods and organic India as mentioned in annual report that acquisition was done by internal accruals, debt, and rights issue. Can you please share how much amount of debt has been raised and for how many years? Additionally, with RBI cutting the interest rates, how much amount of interest payment are we going to save? Fourth, revenue growth for our India food business has remained robust with around 25 to 30% YoY growth in comparison to the Indian packaged beverages business has grown in single digit with their volume growth again in lower single digit. So can you please enumerate factors that are acting as a headwind for this business segment? Being a world leader, how are we trying to turn the waves in our favor? Next, with such a robust and impeccable product portfolio that caters domestic as well as international demand, which kind of business do you think we have still untapped and what kind of capital we might need to enter that particular segment? Maybe via a brand development or by mergers and acquisition. Last question, what are your views on the competition intensity? And as we operate in a perfect market competition wherein new companies with new brands are coming up on a regular basis. Thank you sir for providing this opportunity and I would also like to commend the work of investor relation. Thank you sir.
Thank you Mr. Jamada. Uh I then have Miss Vandana Gupta.
Yeah, good morning sir and members of the board. I am Vandana Gupta from Kolkata, a proud shareholder of the company and a member of Millennium Mams. Sir, my questions are: Taking over the existing business is costly in FMCG companies. So sir, are you rolling this out from your future plans and without this how can you grow aggressively? And sir, our venture with Starbucks is highly successful but profitability is not visible. Thank you sir.
Thank you Miss Gupta. Uh I have Mr. Santosh Kumar Saraf speaker number 13.
Yes sir. Please go ahead.
Fore speech. Foreign speech. Foreign speech. Family. 100% planning sir. Environment. ESGating sir. Reputed agency. Maternity maternity benefit. Work. Government. Meeting. Ram.
Thank you Mr. Saraf. Uh, next speaker Miss Shali Dugar.
Sorry, good morning chairman sir and members of the board. I'm Shalini Dugar from Dubai, a proud shareholder of the company and a member of Millennium Ma'am. My question is in some products as in glucon plus we are facing competition by new entrant and in some we are entering to disrupt as in rupees 10 instant noodles. How are we handling both? My second question given Tata's exposure in the US market, how would the new tariff between US and India affect the trade in short and medium term? Thank you.
Thank you ma'am. Um I then have Mr. Ashok submanium.
Yeah. Am I audible and am I visible? Yes sir. Please go ahead. Respected board members and independent directors, the employees, fellow shareholders, thanks for the opportunity to participate in the 62nd AGM of Tata Consumer Finance. I commence by paying a tribute to great Mr. Badmush and Mr. Rajan Tata and I'm we are personally missing Chandra Shagar and Sarah in this AGM. Nevertheless, I also take this opportunity to give him the strength and give the entire Tata group the required strength to tide over the present crisis of Air India and with that I'm sure that will be an eye opener and whatever the learning which can get applied to all the group companies under the brand of Octant. The why I say that as we grow in volume and grow in market and the change in generations there is certainly going to be a lot of concern for safety and other aspects. So I think there is a lot of focus is required nothing can be taken for granted and I strongly believe that there is no substitute to visual inspection or any other aspects in this context. I would also like to extend my services in case you read it anytime because I understand that India has got a population of 50 to 60 million in the age group of 60 to 70 and unlike the olden days these days these people are healthy hail and healthy and they have tremendous knowledge and this is a generation which has come through lot of hardships and they know the values of ethics and the values of they have gone through the modern generations also. So why we cannot tap them and many organizations are trying that and I am a safety professional and recently I've upskilled myself in CSR through the CSR leadership program postgraduation by XLR in collaboration with Tata Steel Foundation. So I don't mind extending my services for my interest nothing for any return. So I am always available any services I can be of help to you and I speak from puriatur any nearby geography I am happy to extend my services. Now saying so, I reinforce my faith in the group and especially in Tata consumer by increasing my holding by 10% in this year and that brings my overall holding in the portfolio of this particular stock to 3%. I have few points and I happy and first of all I compliment the entire secretarial department for making this contact of the AGM smooth and inviting everyone over the phone and telling that you please join and all those things and I've been glad that I've been given a beautiful annual report in a physical copy and I really cherish that particular book and I think I have gone through almost 2-3 hours I spent on that and I'll be certainly using it as my workbook. And from that I appreciate one the continual efforts of you in terms of reduction of packing materials with a single thing of 11% reduction in 1 kg salt pack that goes to show about our commitment towards circular economy. In that same aspect I was thinking that I want to give a suggestion maybe it was possible whatever the brands whatever the things which is bearing Tata products we should ensure that all these products are available in the platform BB that is big basket so for me unfortunately many of the products I'm not available to me and there are only fast-moving products are available not many of the things or maybe slowly we can start introducing that I think that will be a good way to increase this thing and similarly the same BB platform can be used to take back these beautiful packing materials whenever they deliver the next time. So whether everything is paid back to the customer or not that is new material but at least the same can go back rather than it gets mixed with the wet waste and a little bit of wet waste get mold magnified with this kind of packing material mixing with that. This is one way we can be very good to the organization also. So that is one point and that is all my from my end and the last point but the least I said that there is what is a company's view on internal carbon pricing and whether we have any road map for preserving some kind of profits towards meeting the carbon requirements in the downline and that is what the need of the course days and also when I look at the browsing platforms of many companies in the market and I'm happy to note that whatever the shares we have purchased in the rights issue in o 2024 we are everybody sitting on a profit of 330% plus a wonderful what else you can expect in less than a year and that too in such a geopolitical situation and when I go through the SWAT analysis of this stock in many trading platforms there are seven weaknesses as I've been defied rather over the strengths one it says that strokes is there is a high P an inefficient use of shareholder funds that is it says ROC declining in last two years it says inefficient use of assets to generate profits and declining net cash flow and increasing trend in non-core income so maybe these are all the few things I could pick up from that and there as in the SWAT I don't see any threat is being given in the market analysis probably your team can look into it and if these particular things have been shown and a communication goes to like that and when this moves out there can be a good potential for the stock to fire further much which will indirectly benefit us and indirectly benefit the organization also in terms of market capitalization and which will in turn benefit in cost of financing. Thank you very much for the wonderful opportunity and I wish all the employees and everybody a safe time ahead. Thank you very much sir.
Thank you Mr. Uh I now have Mr. Ruti Gupta.
Uh good morning chairman sir and esteemed members of the board. I am Shri Gupta from Delhi, a proud shareholder of the company and a member of Millennium Mams. My question is sir in FY25 you introduced 41 products. Congratulations on that. What is the product pipeline for FY26? Also, how quickly and aggressively will AI be implemented across new product development and how will it help us? Thank you.
Thank you ma'am. Mr. Shubashkar
Mr. Subaskar,
