73rd annual general meeting - tata coffee...chennai flood relief, child & elderly and terminal...
TRANSCRIPT
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73rd Annual General Meeting
July 26, 2016
Financial Year 2015-16
Presented by
Sanjiv Sarin
Managing Director & CEO
1
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Green Bean
Category Overview
2 Source: International Coffee Organization
Coffee is an exciting and growing category
Glo
ba
l
Pro
du
cti
on
144.8
Million bags (2015)
Growth over
2014
1.6%
Instant Coffee
Glo
ba
l
Co
ns
um
pti
on
152.1
Million bags (2015)
CAGR over
2011
2%
Glo
ba
l
Pro
du
cti
on
(esti
mate
d)
800
‘000 MT (2015)
Forecasted
Growth
3%
Consumption is exceeding production
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Global Markets
3
Uncertain market conditions
Source: International Coffee Organization, Oanda
Brazilian Real devaluation put pressure on green bean terminals,
Russian Ruble devaluation led to inflationary pressures and affected Instant Coffee imports.
1-Apr-15 1-Jul-15 1-Oct-15 1-Jan-16
Crude oil
Sharp
Drop
Weak
Emerging
Market
Currencies
Sinking
Coffee
Terminals
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Financial Highlights (Standalone)
4
509
598 651
685 718
2011-12 2012-13 2013-14 2014-15 2015-16
79
94
107 102 103
2011-12 2012-13 2013-14 2014-15 2015-16
Tu
rno
ve
r IN
R C
rs
Pro
fit
Aft
er
Ta
x IN
R C
rs
Strong
performance in the face of market
uncertainties.
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Key Focus Areas and Operating Highlights
5
Customer
Focus
1
Products developed to match customer expectations.
Strong performance in Russia and Africa.
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Key Focus Areas and Operating Highlights
6
Disintermediation
Differentiation
Premiumization
2
Focused on “premiumized” product offerings driven by quality and sustainability in key
markets.
• Direct to Roasters.
• Partnered with Tata Global
Beverages in the launch of
Tata Coffee Grand.
• Rainforest Certification
extended to Instant Coffee.
• Rainforest Alliance &
Trustea certification for Tea.
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Key Focus Areas and Operating Highlights
7
3 Sustainability
&
Responsibility
• Instant Coffee plants
honoured by the CII-ITC
Sustainability Awards and the
National Energy Conservation
Awards.
• Augmented Rainwater
harvesting capacity,
• Solar Plant commissioned at
Theni.
• Continual support to Swastha,
Girl Child Nutrition, Women
Self Help Groups and RIHP
• Employees volunteered for
Chennai Flood Relief, Child &
Elderly and Terminal Patient
Care.
A heartening sight was the voluntary contribution of salary offered by the workers towards
Chennai Flood Relief.
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Key Focus Areas and Operating Highlights
8
Quality Products &
Packaging
4
Washed Robusta based Instant Coffee.
Our “Co-Developed” packaging won the “Can of the Year” Award by CanMaker Magazine UK.
Specific emphasis of “Co-creation” with customer.
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Other Highlights
9
Focused on crop, quality
and cost control.
Rainforest Alliance and
Trustea certification.
Timed sales to maximize
premiums in a rising
market.
Focused efforts on
increasing occupancy,
relationships and digital
marketing.
Plantation Trails Pepper Tea Starbucks Roastery
• Significant growth
over last year.
• Exclusive roasting for
Tata Starbucks JV
and India Estate
Blend.
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Tata Coffee Grand
10
Jointly developed by Tata Coffee and Tata Global Beverages,
Tata Coffee Grand has been well received by the consumers.
A unique blend
of coffee with
decoction
crystals
developed
after extensive
research
Marketed
and
distributed
by
Tata Global
Beverages
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People & Capability
11
Significant
augmentation
of
management
teams
Internal talent
rotation
Focus on key
strategic
opportunities
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Eight ‘O’ Clock
12
Market share up by 0.1%. 1 mn HH added.
Performance affected due to higher costs and lower
revenues per pound (Lb).
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FY 15-16
Consolidated Performance (FY 15-16) and Market Cap
13
Turnover (Consolidated) INR Crs
Profit After Tax (Consolidated) INR Crs
INR
1764
Cr
INR
118
Cr
*share price adjusted for face value of INR 1 per share
83.67
147.55
95.41 90.6 89.6
112.4
0
20
40
60
80
100
120
140
160
2011-12 2012-13 2013-14 2014-15 2015-16 22-Jul-16
Share Price (Closing)
1563
2756
1782 1692 1673
2102
0
500
1000
1500
2000
2500
3000
2011-12 2012-13 2013-14 2014-15 2015-16 22-Jul-16
Market Capitalisation (INR Cr)
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Thank you
14