Tata Consumer will witness rapid growth in the local market. TCPL is expanding its food and beverage businesses, investing in R&D and innovation, and focusing on the South Indian market.
Chairman N Chandrasekaran has said Tata Consumer Products Ltd (TCPL) will witness rapid growth in the local market, and the business is open to acquisitions and growing into other categories. India’s business growth will continue to surpass that of the worldwide market, with the Indian market’s proportion of sales likely to rise, Chandrasekaran stated in a letter to shareholders at the 60th AGM.
“India business has a higher margin, especially branded businesses, at around 14 percent, and international business has a margin of 11 percent,” the executive stated.
“Right now, we’re expanding both our beverage and food businesses.” So there is a lot of emphasis in these enterprises, and we need to expand them. We are also investing in R&D and innovation. “We’re looking at new categories and acquisition opportunities,” he explained.
TCPL successfully introduced 34 items last year. Currently, TCPL’s branded tea accounts for 47% of total income, mostly driven by the Indian market, while coffee accounts for 11% and is dominated by overseas business.
The corporation has set aside Rs 400 crore in capital expenditure to fuel expansion.
Chandrasekaran, who is also the chairman of Tata Sons, stated that the company’s subsidiary, NurishCo Beverages, hopes to exceed Rs 1,000 crore in sales in the current fiscal year, up from Rs 645 crore in FY23.
He also emphasized TCPL’s concentration on the South Indian market, where they are using localized techniques to boost distribution, adjust advertising campaigns, and tailor products to southern preferences.
He was upbeat about millets in the company’s food line, emphasizing their potential despite their present limited percentage.
TCPL intends to develop its portfolio in foreign markets by extending its non-black tea business, strengthening its position in the coffee industry, and adding ethnic ready-to-eat and ready-to-cook goods.
Chandrasekaran also discussed the goals for Starbucks, TCPL’s joint venture coffee business that now runs in 41 locations. The chain has opened the most shops (71) in the last year.
Concerning the corporate structure, the firm is continuing its journey of simplification, and the merger of Tata Coffee and TCPL is likely to be completed this year.
Last year, the firm announced plans to consolidate all of Tata Coffee’s companies as part of a reorganization strategy to maximize synergies and economies.
Tata Coffee’s plantation business (TCL) would be demerged into TCPL’s wholly-owned subsidiary, TCPL Beverages & Foods (TBFL), according to the disclosed arrangement.
Tata Coffee’s residual business, which includes its extraction and branded coffee operations, will be combined with TCPL. The combination is expected to provide synergies that will propel the coffee industry to high single-digit growth.
Sunil D’Souza, CEO and Managing Director of TCPL, claimed that the legal structure consolidation will continue to improve efficiency and reduce the number of businesses from 45 to about 25.
Tata Coffee’s merger is nearing completion. Throughout this trip, the business is implementing corrective steps in a variety of areas, including consolidating and winding down operations in minor and inconsequential markets.
The company’s offices are located in Australia, South Africa, the Czech Republic, and Bangladesh.
