Tata Consumer Products (TCPL), a packaged goods company, has refined its focus by identifying five key categories for its forthcoming product releases. These categories encompass its existing core offerings, such as tea, coffee, and salt.
Within the pantry segment, the company will explore opportunities in pulses, spices, staples, dry fruits, and ready-to-cook products.
In the liquids segment, the company intends to launch fresh products within the water and ready-to-drink sectors.
The mini-meals category will witness TCPL’s expansion of its product range into the breakfast cereal, ready-to-eat, and snack markets, in addition to its protein platform encompassing plant-based meat and plant protein powders.
Ajit Krishnakumar, chief operating officer, TCPL, explained the rationale behind this strategic approach. He said, “This framework enables us to develop a targeted understanding of our consumers, enhance our internal capabilities, innovate within established parameters, expand our total addressable market, and tap into new consumption occasions.”
He further added, “We have taken a strategic approach to identifying key platforms we want to play in. After evaluating several factors, including market opportunity, category growth, profitability, our capabilities, including distribution and research and development, and our overall competitive edge, we’ve narrowed the universe down to five key platforms.”
Currently, TCPL garners 5 percent of its sales from innovation, and Krishnakumar stated that the company reached this goal ahead of schedule thanks to its proactive approach in product launches.
When contemplating acquisitions, the company takes a distinct viewpoint that encompasses financial feasibility. Additionally, the company evaluates whether the acquisition can synergize with its current operations and if it can derive value by incorporating it into its distribution network. Moreover, the company assesses if the acquisition aligns with its production and delivery systems.
Krishnakumar said that the primary focus for acquisitions will be the Indian market, explaining, “Our primary interest is India because we get the maximum value given our established brands, strength, reputation, and distribution, among other strengths.”
He also recognized the importance of the international market within the company’s overall portfolio but stressed that its growth rate would not match that of the Indian market.
Last week, Tata Group’s consumer division garnered attention for indicating its interest in acquiring a controlling stake in Haldiram’s Snacks, a prominent participant in the ethnic packaged foods sector. Nonetheless, in a stock exchange disclosure, the company clarified that it is presently not in active acquisition negotiations and further stated that it consistently assesses diverse strategic avenues for growth and expansion.
Bain Capital chose not to provide a comment, while Haldiram’s denied any intention of putting the company up for sale.
Read More: Tata Consumer Products and Haldiram’s deny reports of potential stake acquisition
Last year, Tata Consumer Products was engaged in discussions to acquire a majority stake in Bisleri, a prominent player in the packaged drinking water industry. Nevertheless, the deal ultimately fell through, with sources pointing to high valuations as a contributing factor.