Innovation has been a driving force behind our remarkable growth: Vikram Grover

NourishCo Beverages, the maker of Himalayan premium mineral water and part of Tata Consumer Products, forayed into the premium Honey and Preserves category under its Himalayan brand last year. It has also launched a new campaign for their product, Tata Gluco Plus.

In conversation with Adgully, Vikram Grover, MD NourishCo Beverages Limited, Tata Consumer Products, speaks about the company’s revenue, the growth of the Himalayan range, emphasis on innovation, upcoming product launches, and more.

What has been the revenue growth of NourishCo Beverages been like?

At the time of the acquisition of Nourishco by Tata Consumer Products in May 2020, it was a Rs 174-crore organisation and we just closed last fiscal at Rs 600 crore+, which is a 85% CAGR growth in the last couple of years despite tough external environment till last year due to the pandemic. I feel what helped us reach here is our portfolio. In the wake of the pandemic, consumers have become increasingly conscious about their consumption habits. We have certainly noticed this trend, and it has been great for us because our portfolio largely consists of “Good For You” products.

We are still capturing only a portion of the available market, and there is significant potential to expand our geographical presence. Additionally, our distribution growth over the past few years has kept pace with our overall growth.

Speaking specifically about our presence in the water segment, we are proud to say that we have a strong foothold in the Natural Mineral Water space with our brand Himalayan. In addition, our Tata Copper+ product, which is value-added water, has seen significant growth and is becoming a major player in its category.

We are also excited about our Tata Gluco+ energy drink, which straddles the line between the energy and sports drink segments. Unlike many other drinks in this category, Tata Gluco+ is free from carbonation and is, therefore, seen as a healthier alternative.

Innovation and portfolio expansion have been key focal points for us, and we have made significant progress in these areas in recent quarters. One noteworthy achievement is the introduction of Tata Gluco+ Jelly, a one-of-a-kind jelly product that offers a delightful combination of snacking and refreshment.

Additionally, we have proudly launched the Fruski Juice and Jelly drink, drawing inspiration from the vibrant and sensory-rich beverages found on the streets of India. This distinctive product has impressed customers with its exceptional taste and unique composition.

Furthermore, we have recently expanded our range by introducing a line of ready-to-drink (RTD) cold brew coffees. This recent addition caters to the growing demand for refreshing and convenient coffee options, providing consumers with a delightful experience on the go.

So, to sum up, the journey so far has been good and we hope to continue the run in coming years.

Could you tell us about the latest developments in your Himalayan Elevation Range and its SKUs?

We recently launched our premium Honey and Preserves line under our Himalayan brand. Our goal was to reinforce our provenance positioning and attract a greater share of our customers’ spending, leveraging the strong brand loyalty our Himalayan label enjoys. It has been almost a year since we introduced this new range, and we have learned a lot along the way. We are optimistic that the upcoming fiscal year will witness significant progress for our product line, including expanding into the hotel segment with smaller pack sizes.

What are your upcoming product launches and innovations?

Innovation has been a driving force behind our remarkable growth thus far. We are proud to share that our latest offerings such as the Tata Gluco+ Jelly, Tata Fruski Juice N Jelly, Himalayan Honey, and Preserves have been well received by our consumers. However, we are not resting on our laurels and actively working on exciting new projects. We have just introduced Tata Spring Alive in North India to cater to the large mineral water market and strengthen our portfolio within the water segment. This offering will sit between our premium Himalayan Natural Mineral Water portfolio and Tata Copper+, which is a value-added offering playing in the mass segment. The next 3-6 months will be particularly thrilling for us as we plan to unveil some ground-breaking launches that will set new standards in the industry. We are committed to delivering exceptional products that meet the ever-evolving needs and preferences of our valued customers.

How are Honey and Preserves as a category changing in terms of consumption?

The consumption patterns of food products have seen some change since the pandemic. Consumers today are more health conscious, look for Natural and Authentic Products and trusted names. These changes indicate a shift towards more mindful and diverse consumption habits within this category.

How does Tata Consumer Products plan to become a more significant player in the beverage space in India and what can we expect in the year ahead?

As a young organisation with a start-up culture and the backing of the Tata Consumer Group, we just crossed the Rs 600-crore mark in revenue last fiscal. Our ambitious goal for this fiscal year is to cross the four-digit mark. In order to achieve this, we recognise the importance of building a portfolio of strong and differentiated brands, which will remain a key focus area for us as we expand our go-to-market strategy.

There are numerous opportunities awaiting us, particularly in terms of geographic and portfolio expansion. Our aim is to capitalise on these opportunities and utilise them to propel the growth of our business. By executing this strategy effectively, we believe that the potential for growth in our business will be boundless.

As we continue to grow, it is equally important for us to scale up our capacities and people capability, all while driving our profitability agenda. The opportunity before us is immense, given the size of the market. While some Indian brands within the beverages segment have already crossed the 1 billion mark, we understand that we still have a long way to go before we can even begin to step off the accelerator.