Tata Consumer Products Limited (TCPL) Chairman N Chandrasekaran said on Tuesday that the global environment is challenging due to volatile macroeconomic conditions and geopolitics, but the company remains steadfast and focused on building a strong platform for growth.
Addressing the shareholders at the Annual General Meeting, he said that TCPL is on a transformational journey and has made significant progress in the last three years towards becoming and evolving into a leading FMCG company.
“During this period, several critical steps have been taken to become a growth-oriented company and build strong organizational capabilities,” he said.
The company is focusing on strengthening its core business while, at the same time, working on new opportunities to expand its target addressable market, said Chandrasekharan, who is also the chairman of Tata Sons, the holding firm of the Tata Group.
“The global environment is kind of challenging due to unstable macroeconomic conditions and geopolitics, and in these conditions the company remains firm and focused on implementing its strategic agenda and building a strong platform,” he said. .
TCPL’s progress is visible as its sales and distribution network has tripled to 1.5 million outlets. The company has equipped itself with a future-proof R&D capability that has helped accelerate the pace of innovation.
Last year, the company launched twice as many products as the previous year.
“The company’s innovation agenda is driven by key consumer trends, namely wellness, health, digitization and convenience. This has helped the company improve its sales ratio from 0.8 percent to 3.4 percent in the last three years.” That said.
During these three years, TCPL delivered a strong compound annual growth rate (CAGR) of 17 percent in terms of revenue.
On its JV Tata Starbucks, TCPL has “stepped up the pace” and opened an all-time high of 71 stores in FY23, Chandrasekaran said.
With this, Starbucks will reach 350 stores, he said.
Tata Starbucks is a 50:50 joint venture between Starbucks Corporation and TCPL.
Talking about TCPL’s international business, he said that while it has recorded decent growth in terms of revenue, commodity inflation and currency movements have affected margins.
“The company is focused on growing its non-black tea business, opening access to its coffee business, acquiring ethnic, ready-to-eat and ready-to-cook products and strengthening its portfolio for its international business in international markets,” he said.
Chandrasekharan also expects the merger of Tata Coffee to be completed this year as part of the company’s structure simplification.
He also paid tribute to Tata veteran RK Krishna Kumar, who passed away earlier this year.
RKK has shaped your company’s evolution from being a plantation company to a global leader in the Tata Beverages segment, and Tata Tea has become a household name in this country under his leadership,” Kumar led the group’s international acquisitions. Tetley.
TCPL’s consolidated revenue in 2022-23 was Rs 13,783 crore.