Tata Global Beverages hit a record high of Rs 189, up 6% on BSE in early morning trade, after the company said it will launch its premium natural mineral water brand ‘Himalayan’ in the US market.
At 09:48 am; the S&P BSE Sensex was down 0.08% at 31,425. The trading volumes on the counter more than doubled with a combined 7.75 million shares changed hands on the counter on BSE and NSE.
“The company’s premium natural mineral water brand ‘Himalayan’, will now enter the USA market in a phased manner, through an agreement signed by its subsidiary with Talking Rain Beverage Company, the maker of Sparkling Ice flavored sparkling waters to distribute and market the brand,” Tata Global Beverages said in a release on Tuesday.
This agreement will give Himalayan the benefit of Talking Rain’s extensive go to market and execution capabilities in the U.S, which synergize well with TGB’s product expertise and marketing capability. The premium end of the water market in the country is growing rapidly and Himalayan is well positioned to leverage the growth in this segment, it added.
Meanwhile, in past three trading sessions, the stock of Tata Group Company has rallied 21% after reporting 13% year-on-year (YoY) growth in consolidated net profit at Rs 143 crore in June quarter (Q1FY18). The revenue from operations however, declined 1.8% YoY to Rs 1,704 crore in Q1FY18. The company witnessed marginal expansion of 58 bps YoY in EBITDA margin to 14.3%.
“The company intends to invest in incubatory businesses (Starbucks, Nourischo) to drive future growth. Additionally, the company is focusing on entering large tea consuming markets in Asia like Singapore, Malaysia and China. Lastly, focus on operational efficiency through, cost control, exit from loss making geographies and business restructuring, would help the company improve the operating margin, going ahead,” analysts at ICICI Securities said in a result update.
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