INDIA – Tata Coffee, one of the largest integrated Coffee cultivation and processing companies in the world, has reported a 20% rise in net profit for the third quarter ending December 2020.
According to a statement from the company, net profit rose to Rs 50.18 crore (US$6.87 million) from Rs 41.99 crore (US$5.758 million) earned during the same period in the previous financial year.
Total income attributable to the group rose to Rs 538.19 crore (about US$73.8 million) in the third quarter of this financial year from Rs 505.75 crore (about US$69.36 million) recorded in the corresponding period of 2019.
Shares of Tata Coffee Ltd gained over 4 per cent after the firm reported the increase in its consolidated net profit for the quarter ended December.
The stock jumped 3.80 per cent to Rs 115.80 (about US$1.58) on the BSE while at the NSE, it gained 4.22 per cent to Rs 116 (about US$1.59).
In a later announcement, Tata Consumer Products Ltd- the parent company of Tata Coffee, said it has signed a definitive agreement to acquire a 100% stake in Kottaram Agro Foods.
Kottaram Agro Foods is the maker of Soulfull brand of breakfast cereals and millet-based snacks. The brand currently has a strong presence in urban markets of South, West, and North India.
TCPL said that the acquisition is in line with the company’s strategic intent of entering into new adjacent categories in the food space.
It will enable TCPL expand its product portfolio into the fast-growing ‘on-the-table’ and ‘on-the-go’ categories and to participate in newer consumption occasions.
It will also open up new market opportunities for the company that has been expanding its distribution in the country and building stronger foods and beverages play.
In May 2020, Tata Consumer Products acquired PepsiCo’s stake in NourishCo Beverages Limited—a 50:50 joint venture between the two companies that housed brands such as Himalaya packaged water and GlucoPlus.
“This acquisition is a good strategic fit for Tata Consumer Products,” said Sunil D’Souza, MD & CEO, Tata Consumer Products.
“It opens to us significant new market opportunities in the fast-growing mini-meals segments and helps us partner a passionate and ambitious team of entrepreneurs who will remain and become a part of Tata Consumer Products team.”
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