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Good News for Tata Consumer Products Ltd Investors

Good News for Tata Consumer Products Ltd Investors

Published on 06 July 2021

There is a piece of good news for the investors of the Tata Consumer Products Limited Investors about taking a majority stake in the big basket. Let's find out more about it.

Introduction:

The biggest contribution of Mr. N Chandrasekaran as a chairman of Tata Group could be creating synergies between all the branches of Tata Sons. Be it Tata Motors, Tata Power, Tata e=Elxsi, etc. all of them worked together as a group. The acquisition of taking a majority stake in the Big Basket can open a plethora of opportunities for the company.

Some positive news for Tata Consumer investors:

  • Tata Consumer Products Big and Basket have come into a strategic partnership to reduce the cost of raw materials and marketing as well as in improving the top line of the company which is increasing the revenues.
  • The pandemic has given a boom to the online retail segment and Big Basket holds a good position in the online retail market in India.
  • Big Basket has acquired a good number of clients and now Tata Consumer promised to provide a continuous and robust supply to the company.
  • The sales of Tata Consumer e-commerce business have doubled in the last financial year from around 2.5% to around 6% which signifies the increase in focus in this business.
  • The good point in all the recent deals of Tata Group is that they have acquired good names from the market like 1Mg and Big Basket.
  • Their promoters will still work with the respected companies with additional financial support from Tata Group.
  • Now the Tata Consumer is also focusing on the rural areas too which is a highly underpenetrated market for the company.
  • The Brand image of Tata Group can work out well for the company to reach out in rural areas.
  • The company has a plan of expansion of the 50-50 Joint Venture with Starbucks Limited in the semi urban-areas too.
  • The growth opportunities for Quick Service Restaurant (QSR) are immense and now they are focusing on Tier 2 and Tier 3 cities as well.

 

Conclusion:

With the reopening of the markets after the pandemic, the QSR will show a good recovery and the management is very positive towards this. Online retail will also be going to increase at a growing pace which is a very positive sign for the company. Do proper research and study before making any investment in the stock market.

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