The chairman of packaged goods firm Tata Consumer Products Limited, N. Chandrasekaran on Monday flagged geopolitical tensions and supply-chain challenges and said the demand-supply mismatch in crude oil and other commodities is driving inflation. “This is likely to hit demand across all categories,” he said.
“As we work towards achieving the long-term vision for Tata Consumer, the current operating environment remains highly volatile,” Chandrasekaran told shareholders at the company’s virtual annual general meeting on Monday.
“In this uncertain environment, we will continue to focus on strong execution, maintaining agility and adapting and navigating through short-term obstacles, and more importantly, taking advantage of opportunities that arise,” he said. .
Tata Consumer sells packaged tea, coffee, water, salt, pulses, spices and ready-to-eat offerings in markets around the world. For the year ended 31 March 2022, it reported revenue of 12,425 crores. Its brands include Tetley Tea, Tata Tea, Tata Coffee Grand, Tata Salt, Tata Sampan and Tata Soulful. In 2020, the Tata Global Beverages and Food division of Tata Chemicals merged to form Tata Consumer. Earlier this year, the company announced the merger of the Tata Coffee business with Tata Consumer Products as part of a reorganization plan.
Meanwhile, on Monday, Chandrasekaran said Tata Consumer Products will increase annual capital expenditure for FY13 from 361 crores 250 crore in the last financial year.
“The company has a very ambitious growth plan. If you look at what steps we have taken in the last two-three years, the first thing is to strengthen the company, strengthen the portfolio within the company as well as across the group. We launched Beverages and Foods as two separate verticals. We are expanding our distribution. We have also done acquisitions.”
The company will continue to grow its distribution footprint apart from expanding its portfolio. In India, the company reaches over 201 million homes and distributes to over 2.6 million outlets. In contrast, Hindustan Unilever Limited’s products reach 9 million outlets.