NourishCo, the liquid beverage arm of Tata Consumer Products Ltd, is on track to end FY24 with revenues to the tune of ₹900-₹1,000 crore and also achieve break-even. Nearly 19 per cent of the company’s revenues come from products launched in the past 36 months.

Vikram Grover, Managing Director, NourishCo Beverages told businessline, “From a turnover of just about ₹180 crore in FY 20-21, we have scaled up the business substantially and we expect to end this fiscal with a turnover of ₹900-1000 crore. We have not just been able to garner hyper-growth over the last 3-4 years but we have also significantly upped the game as far as profitability is concerned and we expect to reach break even by the end of this fiscal.”

The company’s growth has been driven by expansion in distribution, manufacturing capacity and product portfolio. The company’s product portfolio includes brands such as Tata Copper Plus, Gluco Plus, Fruski and Himalayan Natural Mineral Water. In recent times, it has forayed into spaces including the energy drink segment with Say Never as well as ready-to-drink Tata Coffee Cold Brew.

Responding to a query on profitability, Grover explained that for the brand Himalayan, the company’s go-to-market strategy is to focus on profitable customers and price increases that the company was realising from their customers to get it to break even. “The growth in scale has helped cut down on our fixed costs. We have also upped our game in cost savings across the supply chain. We have also become more efficient with our back end. We have been able to manage the balance between expansion and profitability by focusing on a differentiated portfolio,” he added.

Talking about future plans, Grover said, “The water space remains a key area for us and we feel there remains potential to launch more products in this space. The per capita consumption in India in terms of RTD beverage remains quite low and with Fruski we believe there is a huge potential to upgrade consumers from the unpackaged to packaged drinks space. We also have a strong differentiation with the cup format that enable us to offer affordable products in a differentiated packaging with an elevated consumer expierence, with the way liquid beverage can be gulped to quench thirst.” The company offers products such as Say Never and Tata Gluco Plus in the cup format and is exploring options to add more products.

Talking about the summer season, he said, “We believe our distribution expansion and innovative products will provide us with many tailwinds for growth this summer season. Our innovation to sales ratio is nearly 19 per cent, which is at the higher end of the curve in terms of the industry average.”

NourishCo Beverages’ direct and indirect distribution is pegged at about one million outlets. “Some of the leading players cover nearly 3 million outlets. So we hope to grow distribution significantly going forward,” Grover added.

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