03-Mar-2022 | Market Research Store
Tata Consumer Product Limited is planning to expand the general trade distribution of its Sampann brand beyond the top metros into the nation's mum and pop stores. Typically, the company is engaged in producing packaged pulses, salts, and water. Its Tata Sampann brand offers a portfolio of spices, mixes, chilla mixes, poha, dosa, chickpea flour, and pulses.
As per the ICICI Securities, the June report reveals Tata salt is the leading Indian brand that swiped around 35% of the market share in the packaged salt market.
Tata Global Beverages was given a new name, Tata Consumer Products, in 2019 after merging Tata Chemicals' consumer product business with itself. Tata Sampann, Tata Salt, Tata Tea, Eight O'Clock Coffee, and Tetley Tea are some of the leading brands sold by Tata Consumer Products. Tata Sampann was launched in the year 2015.
Sampann just stepped into the snacking market in the product line of dry fruits. Also, the company has completed the acquisition last year of the manufacturer of Soulful breakfast cereals and Kottaram Agro Foods. However, Bhan stated that the Tata Sampann is likely to enter new categories in the future.
Bhan said –"Sampann is an opportunity for us to ensure that we can compete in core consumer categories." And it will always be a primary motivation. Having said that, she added, playing in more premium categories, such as dry fruits, is also happening."
The initiative to expand the Sampann brand across the food sector has come with the growing demand for packet staples in the cities across the country. However, the businesses in the Indian staple product line are largely very unorganized. The branded firms swipe less than 10% of the sector in staple business. However, it offered Sampann an opportunity to enter into these categories that are mostly unbranded and large.
Bhan also mentioned that the brand is more focused in metro cities due to the presence of a huge population base among urban shoppers.
In India, the product from the company is delivered to around 2.5 million retail outlets that account for around 200 million households. However, this fraction is only referred to India's 13 million mom-and-pop stores.
Tata Sampann is seen as a strong growth lever to the company as it offers the company an opportunity to extend the production beyond the salt and claim new categories that are very large, like staples.
However, in the financial year 20-21, the company has significantly scaled up its food business by 18% year on year, which accounts for INR 2442 crores. As per the company's annual report, the actual growth was led by the spices, pulses, and salt portfolio, which was fueled by growth and direct distribution. Also, the consolidated revenue of the company from all the operations was INR11602 crores in the same year.