NEW DELHI : Tata Consumer Products is undergoing a transformation to establish itself as a comprehensive fast-moving consumer goods (FMCG) company, chairman N. Chandrasekaran said at the company’s 60th annual general meeting held on Tuesday.
The firm is not only exploring expanding to new categories but actively seeking acquisition opportunities, he added.
“It is definitely transforming itself, but it can’t be done overnight. It’s a process we have to go through. Currently, we are expanding both the beverages and foods businesses. There’s a lot of focus in the businesses, we have got to scale them. Also we’re investing in R&D, as well as innovation. We are looking at new categories and looking at acquisitions for those categories to accelerate our journey towards becoming a full-fledged FMCG company.”
In FY23, the company that sells Tata Tea and Salt, posted a 11% jump in consolidated revenue to ₹13,783 crore. Overall, India business was up 10% led by its foods portfolio. “ In line with the company’s ambition, we have taken decisive steps towards becoming growth oriented, and are building organizational capability. We have strengthened our core businesses, and expanded our target addressable market, opening up exciting opportunities for growth,” he added.
“The year witnessed continued challenges due to a volatile macro-economic environment and geopolitical unrest, but we were focused on executing our strategic roadmap, and building on our strong foundation to enable future growth. Despite macroeconomic challenges, the company has delivered good performance across key metrics.”
In FY23, it grew its direct sales and distribution network by three-fold from 0.5 million outlets in 2020 to 1.5 million. The firm’s products are available across 3.8 million outlets, which puts Tata Consumer in the top quartile of the FMCG market in India, Chandrasekaran said.
The company’s innovation to sales ratio is at 3.4%, up from 0.8% in FY20. “We invested in building fit for future capability in R&D, and stepped up the pace of innovation, launching twice the number of products compared to the last year. We expanded our portfolios, and entered new categories. Our innovation strategy is driven by key consumer trends such as health and wellness, convenience, and digitization. We have identified platforms we want to play in, and this framework has helped us accelerate the pace of innovation and tap into new consumption occasions, thereby expanding our target addressable market.”
TCPL has also focussed on streamlining and simplifying its business, he said. “Last year, we had outlined the plan to merge Tata Coffee’s business with Tata Consumer Products to drive revenue synergies and operational efficiencies in addition to simplifying legal structures and driving cash efficiencies. The merger is well on track to be completed in the first half of FY24,” he said.
Tata Consumer Products Limited unites the food and beverage interests of the Tata Group under one umbrella. The company’s portfolio of products includes tea, coffee, water, RTD, salt, pulses, spices, ready-to-cook and ready-to-eat offerings, breakfast cereals, snacks and mini meals. Tata Consumer Products is the 2nd largest branded tea company in the world. Its key beverage brands include Tata Tea, Tetley, Eight O’Clock Coffee, Tata Coffee Grand, Himalayan Natural Mineral Water, Tata Copper+ and Tata Gluco+. In India, Tata Consumer Products has a reach of over 201 million households.
Download The Mint News App to get Daily Market Updates & Live Business News.
Updated: 06 Jun 2023, 10:35 PM IST