Tata Consumer Products has increased tur dal prices by Rs 20 per kg in October-November, taking the price of a 1 kg pack to Rs 135 from Rs 115, according to channel checks by NDTV Profit. Further price increases are expected over the next two to three months, with tur dal prices potentially touching Rs 200 per kg, sources indicated.
The price increases come amid concerns over lower pulse production and the potential impact of the Super El Niño weather phenomenon on crop output. Other pulses, including chana dal and moong dal, have also witnessed price increases of Rs 5-10 per kg during the period.
Tur dal is an important category within Tata Consumer's packaged staples portfolio. Around 60% of the company's pulses sales come from tur dal, according to channel checks. Pulses, including tur dal, account for a mid-single-digit share of Tata Consumer's overall sales, while Tata Sampann contributes around 10%, according to industry estimates.
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The latest price increases come alongside pricing action in the company's salt business. Tata Consumer has increased Tata Salt prices for the second time in six months, taking the price of a 1 kg pack to Rs 34 from Rs 30 in May.
The company had increased prices by Rs 2 in May, followed by another Rs 2 increase in the first week of October. During its Q2 FY27 earnings call, Managing Director and CEO Sunil D'Souza confirmed the October price increase, saying the company had moved the price of its 1 kg pack from Rs 32 to Rs 34.
Management said Tata Consumer had undertaken a calibrated price increase of around 6% in salt. Despite the price increases, the salt business reported 15% revenue growth and 9% volume growth in Q2 FY27. Value-added and premium salt products continued to grow at twice the pace of the base salt business.
Salt remains a significant contributor to Tata Consumer's India business, with the category accounting for over 20% of the company's revenue, according to industry estimates.
Tata Sampann grows 57%; newer food categories cross Rs 1,000 crore ARR
While the company is undertaking pricing actions across its staples portfolio, its packaged food business continues to report strong growth. Tata Sampann recorded 57% revenue growth in Q2 FY27, supported by strong volume growth across its core pulses and spices categories, as well as newer offerings.
The company's dry fruits and cold-pressed oils businesses together crossed an annualised revenue run rate (ARR) of Rs 1,000 crore, according to management. Tata Consumer said it would continue expanding these categories while focusing on margin improvement.
The performance of Tata Sampann comes amid a broader expansion of Tata Consumer's growth businesses. These businesses, which include Tata Sampann, ready-to-drink beverages, Tata Soulfull, vending, Capital Foods and Organic India, grew 40% in Q2 FY27 and now account for 38% of the company's India business, compared with 32% a year ago.
The ready-to-drink (RTD) business reported 47% revenue growth during the quarter, with volumes rising 34%. Capital Foods and Organic India reported individual revenue growth of 18% and 9%, respectively. Their combined revenue grew 15%, while the domestic business recorded 24% growth. Shipping disruptions in the export business affected the overall performance of the two businesses.
Tata Consumer also launched 22 new products during the September quarter, taking the total launches in the first half of FY27 to 36.
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Tata Consumer revenue rises 14% in Q2 FY27
Tata Consumer Products reported consolidated revenue from operations of Rs 5,661 crore in Q2 FY27, registering 14% year-on-year growth. Consolidated EBITDA or earnings before interest, taxes, depreciation, and amortisation increased 18% to Rs 794 crore, while net profit rose 16% to Rs 470 crore.
The company's India branded business recorded underlying volume growth of 11%, led by strong volumes in salt and growth businesses. The international business reported 7% revenue growth, although revenue declined 2% in constant currency terms.
India tea and coffee revenue declined 1% during the quarter, with volumes remaining flat amid subdued category demand.
Commenting on the performance, D'Souza said the company had delivered its second consecutive quarter of double-digit revenue growth in FY27, backed by strong underlying volume growth in India.
He said the company's portfolio transformation continued to gain momentum, with growth businesses expanding 40% and accounting for 38% of India revenue.
The company remains focused on strengthening its core portfolio and scaling newer businesses to deliver sustainable and profitable growth.
Tata Consumer Products did not respond to NDTV Profit's queries on the latest price increases in pulses.
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