Tata Tea Navigates Economic Challenges with Strategic Price Hikes

Tata Tea is implementing price hikes across its brand lineup to improve profit margins affected by rising input costs. Parent company Tata Consumer Products anticipates increased volumes despite obstacles like urban flooding, sluggish rural economy, and slowed growth. CEO Sunil A D'Souza discusses supply disruptions impacting tea prices and strategic measures taken to stay competitive.

Tata Tea is set to execute price increases across its product range in the coming months as it seeks to improve profit margins that have been eroded by rising input costs, a top official announced.

The parent entity, Tata Consumer Products, is hopeful about a boost in overall volumes, which had been previously impacted by factors including urban flooding, a sluggish rural economy, and a general slowdown in growth, according to its CEO Sunil A D'Souza.

D'Souza shared that the company witnessed a 1% profit rise in the July-September quarter despite an 11% surge in revenues, attributing a 25% increase in tea prices this year to supply disruptions.

(With inputs from agencies.)