Tata Consumer Products intends to increase the quantity of beverage vending machines to approximately 4,000 by the end of FY25, from the current 2,000 machines. This will be achieved by targeting the hotels, restaurants, and catering (HORECA) sector, in addition to corporate entities. Nidhi Verma, the director of Tata Consumer’s vending division, disclosed this information to FE. In 2023, the enterprise was established with fewer than 700 devices. In a year, Verma asserts that this figure has tripled.
“The objective is to double the number of machines by the conclusion of this fiscal year.” The business is expanding at a rate of two times per quarter in terms of revenue. “This trajectory of growth should persist in the future,” she claims. In the vending machine market, Tata Consumer faces competition from Nestle India with approximately 5,000 machines and Cafe Coffee Day with 50,000 machines. Tata Consumer, Cafe Coffee Day, and Nestle India employ an innovative bean-to-cup format for delivery, in contrast to conventional vending devices that rely on pre-mixes to dispense beverages.
Verma elucidates that the coffee seeds are inserted into the machine, where they are pulverized and combined with milk prior to dispensing. Tata Consumer is currently offering a variety of beverages, including tea (chai), stews, citrus and organic teas, and milk drinks, in addition to coffee. According to Verma, there are no intentions to distribute RTDs (ready-to-drink) beverages through these devices.
“We are conducting research on the vending opportunity in India.” It is evident that our devices are gaining significant traction in the corporate sector. Simultaneously, she notes that “high-end hotels, restaurants, and cafes are an emerging channel.” Experts estimate that the volume of the overall market for bean-to-cup machines in India is approximately 60,000, with a growth rate of 10-15%.
For its vending operation, Tata Consumer is concentrating on the top six metropolitan areas: Mumbai, Delhi-NCR, Bengaluru, Hyderabad, Chennai, and Pune. Although devices have been installed in markets such as Kerala, Orissa, and Rajasthan, Verma maintains that the primary focus will be on the top six metropolitan areas for the time being.
She also notes that Tata Consumer has implemented an end-to-end servicing strategy to address machine failures in the event of technical difficulties, in addition to having newer machines in its portfolio. Verma asserts that “after-sales service is a critical component of our business.” “Even though the machines are new, it is crucial to our right-to-win strategy to be able to address technical issues in the event of breakdowns, as the business was established one year ago,” she continues.
