Page 100 - Tata_Chemicals_yearly-reports-2017-18

In 2017, global crop protection industry was valued at US$ 61 billion, Pakoda Mix exclusively with Star Bazaar and Amazon in select cities.
with the industry growing by just 1.7% globally on a Y-o-Y basis. The Company also piloted a Tata Sampann range of organic pulses
Owing to extreme climatic changes, soft agri-commodity prices and exclusively with Star Bazaar and Amazon. The products have received
rising raw material prices posed a significant challenge to the growth encouraging response from customers and retail partners.
of crop protection industry worldwide. While weather conditions in
Spices
the NAFTA region improved, those in Africa and Australia deteriorated.
Soft commodity prices prevailed throughout the review period and The Company added three new variants – Chat Masala, Pav Bhaji
wide currency fluctuations with a downward bias did not help either. Masala and Sambhar Masala to the portfolio for Tata Sampann Spices
during the year, with the product launches receiving encouraging
Despite these adversities, Rallis managed to grow its international response from trade as well as consumers. The business has created
revenues by 9%. It launched five products in the exports markets in a benchmark by providing products with assured international
Malaysia, Thailand, Myanmar and Nigeria. Good progress has been quality markers like Curcumin and Capsaicin. Sourced from regions
recorded in Alliance business through several registrations gained where climate and terrain benefit its natural flavour, Tata Sampann
during the financial year. spices retain their naturally available volatile oils, giving fuller aroma
OTHERS and taste. The blended masalas are developed with pure, fresh and
authentic ingredients, have recipes made by Chef Sanjeev Kapoor
Industry Structure and Developments and come in a unique 5-in-1 pack. The Company continued with
Pulses and Related Products the campaigns like “Aaj ka masaledar sach” and “Sampann Surprise”
to create awareness and establish the superiority of the product. The
Tata Sampann is the only national brand in a pulses market dominated Company also aligned its go-to-market model for spices to ensure
by loose dal which comprise more than 99% of the market. Pulses better reach and availability of the product across key cities.
production in India saw a spike of about 20% over the last three
year average. This resulted in low prices throughout the year. The
Government has continued to purchase surplus production, restrict NUMBER OF PRODUCTS IN CONSUMER PORTFOLIO
imports and open up exports of certain varieties of pulses.
The besan market is estimated to be ` 23,000 crore, again dominated FY 2017-18 32 10
by unbranded besan. The Company has continued to focus on protein FY 2016-17 29
delivery through pilot launches in various pulses based platforms like
FY 2015-16 27
multigrain chilla mix, moong dal chilla mix and organic pulses.
Spices Number of Products in Consumer Portfolio
The spices industry is highly fragmented and regional in nature with New Products in Pilot Stage
the consumer taste palate changing across regions. Tata Sampann
range of spices aims to set benchmarks through its superior Outlook for Business
product quality and differentiation by not using ‘Spent’ ingredients. The outlook for the business continues to be positive as the Company
Additionally, the Company is creating and offering products catering continues to focus on distribution expansion, brand building
to regional tastes. The Company’s value proposition for spices initiatives and strengthening of supply chain. The Company has
includes unique packaging in multiple sachets for maintaining the identified opportunities around salt and related products, new to
freshness and guaranteeing a high percentage of active ingredients market offerings in foods, new packaging formats and tapping unmet
like Curcumin and Capsaicin for the Pure spice offerings. consumer health needs. While the salt business continues to be the
mainstay in terms of revenue generation, the growing foods portfolio
Product-wise Business Performance
is expected to contribute significantly to the overall business by the
Pulses and Related Products end of FY 2019-20. In terms of reach, the business intends to expand
its retail footprint to 25 lakh outlets by FY 2019-20. This is being done
In FY 2017-18, Tata Sampann focused on increasing its presence in
through greater use of small SKUs, along with new go-to-market
the top modern format stores with its range of pulses and besan models. In addition to the growing retail network, the business is
while strengthening the sourcing, packing and supply chain model also focused on Modern Trade and non-traditional channels such as
for improved efficiencies. Regional packing centres were established
e-commerce, to ensure availability at a multitude of consumer touch
leading to improved freshness in market and better ability to respond points. Going forward, the Tata Sampann brand is looking at building
to fluctuations in the market prices.
a robust value added product portfolio pipeline to deliver higher
contribution products.
SHARE OF MODERN TRADE IN PULSES/BESAN VOLUMES (%)
Opportunities and Threats
The business has vast opportunities in the foods market, scope to
FY 2017-18 9.0 scale up new variants of salt and is preparing to address opportunities
FY 2016-17 2.6 offered by new consumer needs on the back of its robust supply chain
and distribution network. Premium product offerings and new go-to-
FY 2015-16 2.4
market models are being explored to develop strengths in modern
format stores and alternate distribution channels.
In the value added segment, the Company pilot launched Tata The Tata Salt franchise is being leveraged in select international
Sampann Khichdi Mix, Moong Dal Chilla Mix, Multigrain Chilla Mix and
markets.
98 Annual Report 2017-18