Tata Consumer Products, a leading player in the Fast-Moving Consumer Goods (FMCG) sector, is set to broaden its portfolio with a focus on introducing cutting-edge products. These innovative offerings are poised to become key drivers of business growth. Notably, the second quarter of the fiscal year 2024 saw an impressive innovation-to-sales ratio of 5 percent.
The company has introduced a range of innovative products such as Apple Cider Vinegar, Sampann Vermicelli, Simply Better Cold Pressed Oils, Soulfull Ragi Bites Choco Sticks, Sampann Gulab Jamun Mix, Sampann Walnuts and Seeds, Sampann Saffron, Tata Gluco Plus Sports Drink, Filter Coffee Decoction, Say Never! Energy Drink, Tata Tea Gold Vita Care Tetley Digest, and Immuno Chai.
“We need our ranges to be more relevant to our consumers. We will expand and want to be careful and learn what is sticking, take smaller circles, and grow them deep. We have a very limited portfolio on Tata GoFit right now, including apple cider vinegar and limited protein ranges, and we are seeing that they are having some traction with consumers. We will launch a franchise in medium term runway,” said Deepika Khattar Bhan (President – Packaged Foods at Tata Consumer Products).
In the second quarter, Tata Consumer Products witnessed a 16 percent increase in revenue and a 6 percent growth in volume for its Indian foods business.
“There are low levels of branded penetration that are opening up a lot of opportunities. We continue to remain focused on categories that are new for branded penetration and you are seeing our aggressive foray with some fun. We are looking at, new branded penetration categories like vital staples. The products are within the Sampann portfolio, which is also responding very well for us. It is a really important space for us. We want to balance our tomorrow, which refers to the two brands we started with, Gofit and Simply Better, where we’re also experimenting. It helps us stay ahead of the curve in learning spaces that are new and evolving for consumers,” she said.
As of the second quarter, Tata Consumer Products has a presence in 1.5 million outlets, contributing to a total outreach of 3.8 million outlets within its distribution network.
“We are looking at how we can go a level deeper and build distribution in smaller towns. Our total reach has doubled since September 2020. We are looking to reach deeper in the country, both through pure distribution as well as by ensuring that there is better depth building through spilt routes in the large towns,” added Deepika Khattar Bhan.
