Tata Global Beverages Limited is an Indian beverage company headquartered in Kolkata in West Bengal. It focuses on non-alcoholic drinks. The company has a multinational presence under different names. The company is part of the larger Tata Group.Market Capitalisation
As of 1 August, 2018, the market capitalisation of the company was about Rs.14,888 crore.
Tata Global Beverages’ Wealth and Recent Performance
From the consolidated annual report released by the company for the financial year 2017–2018, the following changes can be observed from the results for the financial year 2016–2017:
- The revenue from operations grew from Rs.6,780 crore to Rs.6,815 crore.
- The operating profits margin increased from by from 9.8% to 10.6%.
- Profit before tax increased to Rs.753 crore from Rs.662 crore.
- Shareholders’ funds grew from Rs.6,266 crore to Rs.7,032 crore.
- The return on net worth increased from 6.2% to 7.5%.
Tata Global Beverages’ Stock Trends in 2018
In January 2018, the stock began trading at about Rs.312 and by the end of July, the price had declined to about Rs.246.
- While the stock opened at about Rs.312 in the beginning of the month, the price later declined but stayed over the Rs.300 mark for almost the entire month. The stock dipped below Rs.300 on the final day of the month to close at about Rs.290.
- The stock opened at about Rs.288 in February 2018. The stock closed at the end of the month at a price of around Rs.275.
- The stock opened at about Rs.274 for the month of March. The stock declined in price for much of the month, closing at about Rs.258.
- In April 2018, the stock opened at about Rs.276. The month of April marked a period of growth in the stock price of the company. The stock gained for most of the month and closed at about Rs.297.
- While the stock opened at a price of around Rs.297 in the month of May 2018, the stock saw a major decline in price that month. At one point, the stock price dropped to a low of about Rs.241. The stock gained a little after that to close for the month at about Rs.269.
- The price did not improve much throughout the month of June. A final 250% dividend was announced on 20 June 2018. The stock closed for the month at about Rs.269.
- July 2018 marked a period of decline for the stock price of the company. The stock closed for the month at about Rs.246.
Tata Global Beverages’ Stock Trends in 2016 and 2017
The stock opened at a price of about Rs.146 in January 2016 and closed at about Rs.122 in December 2016.
- There was a decline in the price of the stock in January 2016 with the stock closing at about Rs.126 at the end of the month. There was a further decline in the stock in February 2016 with the stock closing at about Rs.103 at the end of the month. In March 2016, the stock gained for most of the month. This resulted in the stock closing at about Rs.121 at the end of the month.
- For the entirety of April 2016, the stock fluctuated between about Rs.122 and Rs.117. The stock closed for the month at about Rs.120. In May too, the stock fluctuated between about Rs.121 at the higher end and about Rs.116 at the lower end. The stock closed for the month at about Rs.117. June 2016 marked a period of increase for the stock price with the stock closing at about Rs.131 at the end of the month.
- The stock gained in price towards the end of July 2016 which resulted in the stock closing at about Rs.142 by the end of the month. The lowest price for August 2016 was about Rs.135 and the stock closed for the month at about Rs.140. A final 225% dividend was announced on 8 August 2016. While the stock opened at over Rs.140 in the beginning of September 2016, it closed at about Rs.139 at the end of the month.
- In October 2016, the stock gained a lot but ended the month at around Rs.139. November 2016 marked a period of decline for the stock which closed at about Rs.123 by the end of the month. There was a slight dip in prices, below Rs.120, towards the end of December 2016 but the stock closed at about Rs.122 at the end of the month.
In 2017, the stock opened at about Rs.123 in January and closed at about Rs.316 by the end of December. The stock gained steadily throughout the year.
- The stock gained in January 2017 to close at about Rs.128 by the end of the month. February also marked a period of gain for the stock price with the closing price being about Rs.138. In March 2017, the stock achieved the Rs.150 mark towards the end of the month.
- By the end of April 2017, the stock closed at about Rs.153. There was a slight decline in the price in May 2017 with the stock closing at about Rs.149 in contrast to the approximately Rs.153 it began at on the first day of the month. In June 2017, the stock stayed at or over Rs.150.
- In July 2017, there was an increase in the stock price with the stock closing at about Rs.169 at the end of the month.
- In August 2017, a final 235% dividend was announced and after a brief decline in price, the stock climbed to about Rs.198 by the end of the month. The stock increased some more in September 2017 to close at about Rs.205.
- October 2017 marked a period of increasing prices with the stock going up to about Rs.226 by the end of the month. The stock increased even more in November, closing at about Rs.287 by the end of that month. By the end of December 2017, the stock had climbed to about Rs.316.
Should You Invest in Tata Global Beverages?
- The company markets a number of leading brands in various countries.
- The company has made a number of acquisitions beginning in the early 2000s.
- The company has entered into a joint venture with Starbucks which is one of the biggest coffeehouse chains in the world. This gives the brand more prominence and a better standing in Indian markets with respect to coffeehouse chains, a space that was dominated by Barista Lavazza and Cafe Coffee Day.
- The company also plans to establish more Starbucks outlets in cities in India that have a population of less than 50 lakh people in order to tap into a growing market.
- In addition to this, the company has a few cafes in India and is planning to expand in a market that is filled with companies like Chai Point.
- According to the annual report released by the company for the year 2017–2018, the company is the second largest tea company in the world.
- The company has a presence in over 40 countries around the world.
- Three of the company’s plants in India have received awards for significant achievements in food safety.
- Tata Tea ranks second in the Economic Times Brand Equity’s most trusted brands in India survey in the category, hot beverages.
- Tata Chakra Gold Tea is one of the biggest tea brands in South India.
- TGB Ltd. has begun introducing its products from India to the US market.
- The company has won the title of Canada’s Most Trusted Brand four times.
- While all of these may indicate that it is a good idea to invest in TGB Ltd., it would be best to do so after performing further personal research based on personal financial commitments, risk appetites, and other factors.
There are a number of brands that come under Tata Global Beverages Limited (TGB Ltd.). Tata Tea and Tetley are two famous brands that are used by TGB Ltd. to market tea. The company also markets tea under the brand names JEMCA, Good Earth, and Vitax. Joekels is another brand of tea that is sold by TGB Ltd. A super-premium brand of tea called Teapigs is also part of TGB Ltd. Four different brands of coffee, namely, Eight O’Clock, MAP Coffee, Grand Coffee, and Tata Coffee Grand are also sold by TGB Ltd. Other than tea and coffee, the company also sells water. Himalayan Water, Tata Gluco+, and Tata Water Plus are the three brands of water associated with TGB Ltd.
History of the Company
Tata Tea was established in the year 1983. In 1993, ten years after Tata Tea was launched, the company entered into a joint venture with Allied-Lyons PLC. This resulted in the establishment of Tata Tetley. Eventually, in the year 2000, Tata Tea acquired Tetley Group Limited. This marked the beginning of a set of acquisitions of popular beverage brands in foreign countries. Tata Tea integrated all its beverage brands in the year 2009. The following year, the formation of Tata Global Beverages Limited was announced. While Tetley was a major acquisition, another big move came when the company entered into a joint venture with Starbucks in 2012. After this, the company saw a period of expansion in which it began marketing its Indian brands in other countries. For instance, coffee from a plantation in India was featured in a store in the USA. Later, the Himalayan Water brand was introduced to the USA. Since then, the company has moved from strength to strength over the years.
Management of the Company
The company’s board of directors comprises the following people:
Mr. N. Chandrasekaran - Chairman
Mr. Ajoy K. Misra - Managing Director and CEO
Mr. L. Krishnakumar - Executive Director
Mr. Harish Bhat - Non Executive Director
Ms. Mallika Srinivasan - Independent Director
Mr. V. Leeladhar - Independent Director
Ms. Ranjana Kumar - Independent Director
Mr. Siraj Chaudhry - Independent Director
Mr. S. Santhanakrishnan - Non Executive Non Independent
The management team of the company includes the following people:
Mr. Adil Ahmad - Global Chief Marketing Officer
Mr. K. S. Srinivasan - Global Chief Human Resources Officer
Mr. Stephen Rice - Regional President for Canada, America and Australia
Mr. Nigel Holland - Regional President for Europe, Middle East and Africa
Mr. Sushant Dash - Regional President for India
Mr. Vikram Grover - President of Water Vertical
Mr. Rakesh Sony - Global Head for Strategy and Mergers and Acquisitions
Tata Global Beverages Listings in NSE, BSE, and Other Indices
The company is listed under the following codes:
IND: Plantations - Tea and Coffee
ISIN Code: INE192A01025
The company is considered a part of indices like, Nifty 200, S&P BSE 100, S&P BSE Momentum, and S&P BSE SENSEX Next 50 among others.
In addition to being listed on the BSE and NSE, the company is listed on stock exchanges like Bangalore Stock Exchange Limited, Cochin Stock Exchange Limited, and Jaipur Stock Exchange Limited among others.
The company’s registered office is at the following address:
Tata Global Beverages Limited, 1, Bishop Lefroy Road, Kolkata - 700020
The company’s corporate office is located at the following address:
Tata Global Beverages Limited, 11/13, Botawala Building, 1st floor, Office #2–6, Horniman Circle, Fort, Mumbai - 400 001
Phone Number: 033 2281 3779
Fax: 033 2281 1199
Stocks vs. Mutual Funds: here's what we recommend
Stock market investments require a lot of research and knowledge. They do not generally offer any tax benefits and are regarded as high-risk investments. Hence,it is crucial to have a diversified portfolio. At Bankbazaar, we encourage our readers to invest on mutual funds.It doesn't require a lot of knowledge and equity linked mutual fund schemes offer tax benefits. Additionally, since mutual funds comprise stocks from multiple companies, they help in building a diversified portfolio.
The contents of this post/blog does not constitute financial or other professional advice nor does it imply in any manner a principal-agent relationship, and is not a professional advice on a specific financial matter.