Tata Consumer Products Ltd is aiming to become a full-fledged FMCG company with plans to enter new categories and has more than doubled its capex to Rs 785 crore for FY25, primarily on a new plant in Vietnam, company Chairman N Chandrasekaran said on Thursday.
Responding to shareholders’ queries at the company’s annual general meeting, Chandrasekaran — also the Tata Sons Chairman — said the company will consider further acquisitions to fuel growth depending on the financial viability and growth opportunity.
Millet is an area the company wants to focus and introduce more products, he said.
Asked if the company will be focused only on beverages and foods, or if it would become a full-fledged FMCG company, Chandrasekaran said, “The plan is to become a full-fledged FMCG company.”
“So what is the next segment? What are the next few segments that we will enter? I can’t answer it now. There are many things on the table.” Replying to a question about the acquisition, Chandrasekaran said the company is always looking for such opportunities.
“I can not say about any specific acquisitions, but the company always looks for acquisitions, but we have been more in looking at health-oriented and, and food products, but also other other other products,” he said.
The Tata group FMCG arm will continue to consider those acquisitions favourably as long as it makes financial sense and there is growth, he added.
Last fiscal, TCPL spent nearly Rs 7,000 crore on acquisitions of two firms — Capital Foods and Organic India.
The company will double the capex in the current fiscal, the TCPL Chairman said.
“Last year’s capex was around Rs 308 crore but it is going to be significantly higher, almost more than double of that Rs 785 crore because of a big investment we are making in Vietnam in a new plant. It’s about Rs 400 crore, so there will be a big investment in capex this year.” TCPL is investing “significantly” in digital and has made a lot of progress over the last couple of years. It will continue to invest in sales and distribution channels but will also continue to invest in the digital space.
“Digital will also bring productivity in operations and also will give better experience to employees, customers. We will deploy many artificial intelligence tools,” he said, adding, “we are constantly upgrading the company’s infrastructure and tools to make sure that we are staying ahead of the curve.” Chandrasekaran also said TCPL’s advertising spending will increase as the company has to increase promotion expenses but in a calibrated manner to ensure its products are visible and promoted.
“A large number of new products are constantly being introduced and this product portfolio will continue to expand,” Chandrasekaran said.
The Indian consumer market is growing, driven by rising population, a growing middle class, rapid urbanisation, increasing disposable incomes, and rising aspirations.
In FY24, TCPL delivered revenue of Rs 15,206 crore, with a growth of 10 per cent.
TCPL was formed in 2020, after merging the consumer products businesses of Tata Chemicals with Tata Global Beverages.
It owns brands as — Tata Salt, Tata Tea, Tetley, Eight O’Clock Coffee, Good Earth Tea, and Tata Sampann. It also operates coffee chain Tata Starbucks.
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