During the 60th annual general meeting of Tata Consumer Products, N. Chandrasekaran, Chairman of Tata Sons, revealed that Tata Consumer, the consumer goods arm of the Tata Group, is making significant strides in research and development (R&D) investment. With a focus on diversification, the company is actively exploring new categories and seeking potential acquisitions. This strategic direction aligns with Tata Consumer’s overarching goal of evolving into a fully-fledged FMCG company.
“The company is working on becoming a full-fledged FMCG company. But it can’t be done overnight. It’s a process that we will go through,” Chandrasekaran said.
He further stated that at present, the company is focused on broadening its presence in the beverages and food sectors. Furthermore, TCPL is actively dedicating resources to research and development as well as innovation in order to establish new product categories. Additionally, they are exploring potential acquisitions within these categories to initiate and expedite their growth trajectory.
During his address at the Annual General Meeting (AGM), the chairman highlighted that TCPL’s expenditure on research and development (R&D) has witnessed a substantial growth of nearly 70 percent compared to the previous year.
Highlighting that the company is investing in building ‘fit for future’ R&D capability, Tata’s top boss said, “Our innovation agenda is being driven by key consumer trends such as health & wellness, convenience, and digitization.
We have identified the key 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.”
According to his statement, he asserted that Tata Consumer witnessed a significant increase in its innovation-to-sales ratio this year, rising from 0.8 percent in FY20 to 3.4 percent. During the financial year ending on March 31, 2023, the company’s newly introduced brands, namely Tata Sampann, NourishCo, and Tata Soulfull, achieved a remarkable combined year-on-year revenue growth of 53 percent.
Tata Consumer Products Limited (TCPL) recorded a notable 11 percent increase in consolidated revenue for the fiscal year 2023, reaching INR 13,783 crore. Additionally, the company experienced a 7 percent growth in EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). TCPL’s profit after tax amounted to INR 1,320 crore.