Tata Global (TGBL) is market leader in branded tea market by volume and second-largest in terms of value in India’s Rs.300 bn tea market, which is 50% organized.The company has a strong portfolio of brands including Tata Tea, Tetley, Eight O’Clock Coffee and Good Earth It also has Joint Ventures with Starbucks to operate cafes in India and with Pepsico to produce ready-to-drink (RTD) beveragesTGBL merger with Tata Chemicals’ consumer business would perk up company’s margins as TCL’s consumer business EBITmargin of 17% is higher than TGBL’s 9% (as on FY19)Led by new launches and shift from unorganized to organized market, we expect 5.5% revenue CAGR in FY19-21E aided by high growth in branded tea productsWith addition of Tata Salt and pulses in the portfolio, contribution of high growing India business sales would increase from 45% to 55% ( Article taken from internet )
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