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Tata Consumer Intends to Expand Reach of Spice & Pulses Brand “Sampann”

Tata Consumer Products Ltd (TCPL) that sells packaged water, tea, salt and pulses is set to scale general trade distribution of its Sampann brand of pulses, mixes and spices as it spots an opportunity in expanding the brand beyond top metros and going deeper into the country’s mom and pop stores.

Ayushi Raina
TATA Sampann
TATA Sampann

Tata Consumer Products Ltd (TCPL), which produces packaged water, tea, salt, and pulses, is planning to extend general trade distribution of its Sampann brand of pulses, mixes, and spices, recognizing an opportunity to expand the brand beyond top metros and deeper into the country's mom and pop stores.

We want Sampann to be tomorrow's Tata Salt. "We are really focused on ensuring that we can build good general trade distribution," said Deepika Bhan, president, packaged foods, India, TCPL, in an interview.

According to a June report by brokerage ICICI Securities, Tata Salt is the leading brand in India's salt market, with an estimated 35 percent market share in the packaged salt market.

Tata Global Beverages was renamed Tata Consumer Products in 2019, following the merging of Tata Chemicals' consumer products business with itself. Tetley Tea, Eight O'Clock Coffee, Tata Tea, Tata Salt, and Tata Sampann are just a few of the brands sold by TCPL. Tata Sampann offers packaged pulses, chickpea flour, spices, dosa and chilla mixes, and poha. Tata Sampann was launched in 2015.

Sampann just entered the snacking market with the dry fruit lunch. TCPL finalised the acquisition of Kottaram Agro Foods, the manufacturer of Soulfull breakfast cereals, last year, further extending its food industry.

Bhan said Tata Sampann could enter new categories in the future.

"Sampann is an opportunity for us to ensure that we can compete in core consumer categories." And it will always be a primary motivation. Having said that, she added, playing in more premium categories, such as dry fruits, is also happening."

The attempt to expand Sampann comes as demand for packaged staples rises in the country's major cities. The Indian staples business is largely unorganized, with branded firms accounting for less than 10% of the industry. This gives Sampann the opportunity to play in categories that are large and mostly unbranded.

Bhan stated that the brand is currently more metro-focused due to greater popularity among upscale urban shoppers. “Our first port of call will be to grow in metros and then go to tier two towns."

In India, the company's products are delivered to 2.5 million retail outlets and reach nearly 200 million households. However, this is only a fraction of India's 13 million mom-and-pop stores.

"Our goal at Sampann is to ensure that, while we increase general trade distribution, we are also a very strong player in e-commerce...

If you look at the foods’ portfolio growth, overall—which is actually driven by Sampann from a top-line perspective (apart from the salt business), "She stated.

Sampann is a “strong growth" lever for the company as it allows TCPL to extend beyond salt and claim categories which are significantly large—like staples, Bhan said.

In FY20-21, the company's food business increased 18% year on year to Rs.2442 crore. According to the company's annual report for the fiscal year, growth was led by the salt, pulses, and spices portfolio and driven by an expansion in direct distribution. The company's consolidated revenue from operations was Rs.11602 crore in the same year.

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