Tata Consumer's NourishCo Aims for Rs 1,000 Crore Turnover in FY24 with Growth Strategies

Tata Consumer Products' fast-moving consumer goods (FMCG) arm, NourishCo, is setting its sights on achieving a turnover of Rs 1,000 crore in the current financial year, FY24. NourishCo, which encompasses brands like Himalayan packaged water, Tata Gluco Plus, and Tata Copper Plus, concluded FY23 with net sales of Rs 621 crore, marking an impressive 80% growth compared to the previous year.

To reach its ambitious Rs 1,000-crore target in FY24, NourishCo plans to implement a strategy centered on new product launches and an extensive distribution push across various markets throughout the year.

Sunil D'Souza, MD & CEO of Tata Consumer Products, stated that they currently reach approximately 650,000 outlets through NourishCo, and despite double-digit business growth, there is substantial untapped potential for further expansion. The primary focus will be on expanding the product portfolio and enhancing distribution networks.

Additionally, D'Souza revealed that Tata Consumer Products intends to merge NourishCo, a wholly-owned subsidiary, with Tata SmartFoodz and Tata Consumer Soulfull to optimize resource utilization and streamline compliance requirements. This merger will be subject to necessary statutory and regulatory approvals, including approval from the National Company Law Tribunal.

In terms of product expansion, NourishCo has recently entered the energy drinks and sports drinks categories during the September quarter and continues to explore new segments for growth. The energy drink named 'Say Never' was launched in select markets in North and South India, priced at Rs 10 per unit. The sports drink, part of the Tata Gluco Plus brand, was introduced in partnership with the Argentinian Football team.

Notably, the Tata Copper Plus brand, offering copper-treated water, achieved a remarkable 48% year-on-year growth in the September quarter, even in unfavorable weather conditions. This contributed to NourishCo's overall revenue growth of 25% for the September quarter and 44% for the first half of FY24.

Furthermore, the premium Himalayan brand of packaged water has turned profitable, and the company plans to leverage the brand to expand into additional edible categories such as honey, saffron, and other premium preserves. In the September quarter, the company ventured into the premium Kashmiri saffron segment with a grade offering.