Escolar Documentos
Profissional Documentos
Cultura Documentos
Business Model
Revenue model
Growth model
a. Sale of products
b. Share of revenues from
JV
a. Differentiation thru
premiumisation to
improve margins
FROM
COMMODITY
b. Pursuing related
c. Revenues from
business opportunities
TO
investments
e.g. JV
INNOVATION
Businesses,
Offerings
DIFFERENTIATI
1. Branded
ON beverages in DEVELOP
India and abroad
ALLIANCES
- Tea, Coffee, mineral
water
CREATE
ECONOMIES
2. JVs SCALE
in the beverages
space
Key costs
a. Production, mktg,
S&D
e
h
t
Technological t
a
o
None explicitly;t smaybe
o
digital marketing,
n
;
t
n
customer
data
o
r
f
analytics,
etc.
o
r
c
mi
Politico-legalregulatory
Political uncertainty;
elections round the
corner; policy paralysis
Industry Analysis
(Porters 5-Forces framework)
Competition
Medium to High
Mainly commoditized
offerings
ll
a
h
c
in
s; bargaining
s
Customers
h
e power
t
n
w
e
o
Threat of substitutes
v
r High
ti
g
c
High if one takes the ra
h switching costs;
g
Low
t
i
overall beverages t
a st hsufficient choices; ability
universe to include
to transfer increased
um p o
alcoholic beverages
i
prices suspect; info from
d to
e
receivables?
m t ry
t
u us Suppliers bargaining
o
b nd
a
power
i
t
s
Low to medium
Ju
Not much info; captive
tea estates and coffee
plantations hedge; info
from payables?
SWOT Analysis
Strengths
1. Stead margins, predictability
2. Low leverage
3. Ownership of raw material sources
control over cost
4. Strong brand portfolio
5. Geo diversification
6. Market leader/ key player in tea in India
and abroad
Opportunities
1. Many consolidation opportunities
2. Branding and premiumization of Indian
tea/ coffee markets
3. Evolving tea market in the US
4. Coffee growth in US driven by gourmet
coffee beverages high margin
5. Opportunities in mineral water segment
Weaknesses
1. US coffee brands vulnerable to coffee
prices due to lack of pricing power
2. High vulnerability to commodity prices
3. High marketing expenses to differentiate
in a competitive market
4. ROE lower as compared to peers
Threats
1. Commodity prices volatility
2. Stagnating volume growth across
geographies
3. High dependence on premiumization
strategy in India for growth
4. Value of goodwill in balance sheet