TATA GLOBAL BEVERAGES LTD

Tata Consumer Products formerly known as TATA Global Beverages Ltd. is a SEGMENTS
focused consumer products company uniting the food and beverage interests of
the Tata Group under one umbrella. In the Beverages business, Tata Consumer
Products is the 2nd largest player in branded tea in the world with over 330 TEA
million servings everyday across the world. Tata Consumer Products has grown
through innovation, strategic alliances and acquisitions, and organic growth.

The Company has a joint venture with Starbucks called Tata Starbucks Limited, COFFEE
to own and operate Starbucks cafes in India. Since the inauguration of the
flagship store in Mumbai in October 2012, this 50:50 JV has expanded to 10
cities, with many more Starbucks stores planned across the country. The high- WATER
growth contemporary ‘single-serve' business is also an important play for Tata
Consumer Products. In the USA they have an agreement with Green Mountain
Coffee Roasters’ Keurig single-serve machines for Eight O'Clock Coffee, with FOODS
K-Fee for MAP Coffee in Australia, and with Tassimo in Canada for Tetley tea.

BRANDS IN EACH SEGMENT

 BOARD OF DIRECTORS
VF

Mr. N Chandrasekaran Mr. Sunil D’Souza - Managing Mr. L. KrishnaKumar-

Chairman Director & CEO Executive Director & CFO

He is the Chairman of the Board of Tata
Sons, the holding company and promoter of
over 100 Tata operating companies with
aggregate annual revenues of more than US$
100 billion. He joined the Board of Tata
Sons in October 2016 and was appointed
Chairman in January 2017. He also chairs
the Boards of several other operating Tata
companies such as Tata Steel, Tata Motors,
Tata Power, Indian Hotels and Tata
Consultancy Services (TCS) of which he
was Chief Executive Officer and Managing
Director from 2009-17. His appointment as
Chairman followed a 30-year business career
at TCS.
Mr. D’Souza is Managing Director and CEO
of Tata Consumer Products. In his previous
role, he served as Managing Director of
Whirlpool India Ltd. for four years. Mr.
D’Souza began his career at Hindustan
Unilever Ltd. in 1993. With over 26 years of
rich experience, he has strong domain
knowledge of the consumer products
business with distinct focus on strategy,
growth and execution.He is an engineering
graduate from the University of Madras and
holds a post-graduate diploma in
management from the Indian Institute of
Management, Calcutta.
He started his career with A. F. Ferguson
and Co., where he worked as a Senior
Consultant with their management
consultancy division. He subsequently
worked with Larsen and Toubro Ltd a
diversified conglomerate, in a variety of
areas and was lastly in their corporate office
as General Manager, Finance. He joined the
Tata group in 2000 in the hotels business as
Vice President Finance. He took over the
head of finance function of erstwhile Tata
Tea in India in 2004 and has handled
different roles in the Company in India and
the UK. He is also a Director on the Board
of NourishCo Beverages Ltd. and several of
the Company’s overseas subsidiaries.

SHARE HOLDING PATTERN & MUTUAL FUND HOLDING

Share Holding Pattern in (%)
Standalone March 2020 September 2019 June 2019 March 2019

Promoters 34.69 34.45 34.45 34.45

Pledged 2.71 3.99 3.99 3.99

FII/FPI 17.08 27.8 26.61 25.37

Total DII 27.85 18 18.82 19.3

Fin.Insts 0.09 0.26 2.3 3.84

Insurance Co 6.19 1.84 0.15 0.25

MF 14.86 10.67 10.63 9.55

Others DIIs 6.71 5.23 5.74 5.66

Others 20.39 19.74 20.12 20.87

Total 100.01 99.99 100 99.99

PROMOTERS,MUTUAL FUNDS,DII’S,INSURANCE CO. HAVE INCREASED THEIR HOLDINGS

RECENTLY WHICH IS A POSITIVE SIGN
QUARTERLY RESULTS - P&L FINANCIALS
STATEMENT
Quarterly Mar-20 Dec-19 Sep-19
 Sales have declined QOQ
due to lockdown and
Sales 2,405.03 2,492.96 1,834.06
supply chain disruptions
Other Income 21.93 28.54 25.29
recently.
Total Income 2,426.96 2,521.50 1,859.35
 Even though the
Total 2,425.10 2,237.11 1,647.73
Expenditure
expenditure has been
EBIT 1.86 284.39 211.62 increasing.
Interest 18.7 20.12 20.07  EBIT has significantly
Tax 33.37 75.04 48.32 declined and their is a loss.
Net Profit -50.21 189.23 143.23

BALANCE SHEET  Equity share capital is high

which is a good sign as
Equities & MAR 2020 MAR 2019 MAR 2018 company is becoming debt
Liabilities
Share Capital 92.16 63.11 63.11
free.
Reserves & Surplus 13722.7 7268.58 6968.49  Due to which interest
Current Liabilities 1978.6 1469.94 1596.57 income too has decreased.
Other Liabilities 2709.14 2137.09 1964.04  Also reserves have been
Total Liabilities 18502.6 10938.72 10592.21 increasing since past years.
Assets  Fixed assets have increased
Fixed Assets 4124.1 1552.65 1209.84 significantly which is
Current Assets 5682.06 4547.97 4535.01 where the capital would be
Other Assets 8696.44 4838.1 4847.36 invested for long term
Total Assets 18502.6 10938.72 10592.21
scenario.
Other Info
Contingent 0 85.24 176.54
Liabilities

 Cash from operating

CASH FLOW STATEMENT activities has reduced due
to lower sales and high
Mar-20 Mar- Mar- Mar-
19 18 17
expenditures.
Operating 0 209.87 355.58 741.2  Investing activity cash has
Activities come to postivie due to sale
Investing 0 73.28 -74.1 224.9
of certain fixed assets.
Activities
Financing 0 -223.73 -30.39 -815.84  Cash from financing is
Activities negative due to repayment
Others 0 -20.11 43 -79.85 of borrowings and less
Net Cash Flow 0 39.31 294.09 70.41
revenues.
 VALUATION
PEER COMPARISON
Market Cap
(Rs Cr.) 34,613.48
P/E 97.36
Company Last % 52 Wk 52 Wk Market Sales Net Industry P/E 53.02
Name Price Change High Low Cap Qtr Profit Book Value
Qtr (Rs) 161.76
Dividend (%) 270
TATA Cons. 375.6 -2.42 407.95 214 34613.5 5,690.24 523.54
Market Lot 1
Prod
CCL Products 229.55 2.68 266.7 137.25 3053.66 809.13 125.43 EPS (TTM) 3.86
P/C 57.87
Tata Coffee 85.05 3.59 107.2 47.1 1588.48 719.44 73.21
Price/Book 2.32
Rossell India 53 -1.4 88.5 33.4 194.49 248.68 0.57
Dividend
Jayshree Tea 41.5 -2.58 62 23.55 119.84 560.67 3.1
Yield.(%) 0.72

Pros:

Company is virtually debt free.

Company has been maintaining a healthy dividend payout of
35.55%

Cons:

Stock is trading at 2.51 times its book value

The company has delivered a poor growth of -1.29% over
past five years.
Promoter holding is low: 34.69%
Company has a low return on equity of 6.40% for last 3
years.
Current Price: 375.80