New Delhi: Fast-mobile consumer goods company selling tea, coffee and salt said on Wednesday that any proposed tariffs imposed by the U.S. on the U.S. on the U.S. would give the company a competitive advantage given the Western countries’ main import of all coffee. However, it may give its salt and supplement brand imports from India.
On Wednesday night, on the company’s net lethal call, management said the impact will depend on the final tariff rate. Given that the United States does not produce coffee or tea, the company expects a relatively, or even relative competitive environment from a competitive standpoint.
In the United States, the company sells brands such as Tetley, Good Earth Tea, Teapigs, Tata Tea and Organic India in addition to its eight-o-o-coffee; it also sells Tata Salt, Tata Sampann, and more.
“If I were 10% as a normative tariff – our big business in the United States is coffee; coffee produced in the United States, all of this is imported, so from the competition, we will stand out from everyone else. In fact, since you are manufacturing offshore, because you may have some obstacles, we may enjoy a little bit of a barrier in tea. Sunil D’Souza, managing director and CEO of Tata Consumer Products, said Canada’s confrontation against the UK, but it’s not important enough. Tata got its eight o’clock coffee in 2006.
The United States has been dragging transpositions on tariffs. Despite the recent announcement of tariffs on goods imported from India (April 10), the United States announced the suspension of additional Indian tariffs for 90 days until September 9. Meanwhile, Indian and U.S. officials will begin discussing the proposed bilateral trade agreement later this week.
Tata consumer products earn about 29% of revenue from the international market. It cannot provide business breakups in overseas markets. For example, it is the third largest tea dealer in the UK through its brand Tetley. The remaining 71% comes from its Indian operations.
To be sure, the vast majority of coffee consumed in the United States is imported. The United States is one of the largest coffee importers in the world. Brazil and Colombia are the major exporters of American coffee. India’s share of coffee exports to the United States is relatively small.
Interestingly, according to the company’s annual report, its recently acquired organic Indian brands generated over 40% of revenue from the U.S. in fiscal 24 years.
Meanwhile, in India Organic India, D’Souza said the brand’s supplements and infusions are mainly made in India. “So, from a competitive standpoint, I don’t think it will change at all. Balanced Indian food (salt, tata tea, etc.) people will offer outside of India, so from the overall category, as inflation increases, the pressure may bring some pressure. Your guess is as good as mine, but from my guess we don’t want a competitive landscape,” he added.
On Wednesday, the company reported a 59% year-on-year increase in consolidated net profit in the March quarter ₹3.45 billion, from ₹2.1663 million in the same period last year.
The company’s operating income is ₹This quarter was 46.08 million, up 17% year-on-year ₹The March 2024 quarter released 39.27 million.
During the quarter, the Indian Brands business reported base batch growth (UVG) of 5.9% (excluding acquisitions). The company’s Indian beverage business increased revenue by 9%.
The company’s full-year revenue grew 16% ₹176.18 billion.
