Tata Consumer expects volume growth to recover as prices stabilize, with margins normalizing to historical levels going ahead.
Tata Consumer Products saw steady U.S. growth in Q4, aided by a 15 percent jump in tea sales and an 11 percent rise in EBIT.
The company insists that both JV partners, Tata Global Beverages and Starbucks, are extremely happy with Starbucks' performance and trajectory in India and will be entering new markets in its second year of operation.
Post Tata Global Beverages's Q1 numbers, Harish Bhat, MD of the company told CNBC-TV18 that the key growth driver for it was and will continue to be a new product innovation in tea, coffee and water.
The company has posted a growth of 11 percent in its topline and 26 percent in its operating profits. Bhat credits the growth of various brands in different geographies for the positive numbers.
Harish Bhat, CEO & MD of Tata Global Beverages told CNBC-TV18 the third quarter has been very successful and despite the rising prices of tea they have shown a considerable improvement in their net profit.
Harish Bhat, CEO & MD of Tata Global Beverages estimates a 4-5 percent volume growth in its tea business this fiscal year.
Talking about the business of Tata Global Beverages, L Krishnakumar, CFO of the company said performances have been quite strong, both in terms of volumes and price increases.
Tata Global Beverages sees strong domestic and international growth continue despite adverse economic conditions.
In an interview with CNBC-TV18, Hameed Huq, managing director of Tata Coffee said there has been shrinkage in production of Arabica in Colombia and Central America. This global shortage of high quality washed Arabica has lead to hike in coffee prices.