In its latest annual report, Tata Consumer Products Ltd has announced its intention to bolster its presence in the southern markets. With a strategic approach, the company is now prioritizing the establishment and development of distribution channels in rural and semi-urban areas. This initiative aims to broaden the company’s reach and tap into the untapped potential of these growing markets.
“We are expanding our presence in South India across tea, coffee, salt and spices with the launch of South-specific products to cater to regional consumers,” said TCPL.
The company’s presence in the southern region is steadily growing in the tea and coffee sectors. TCPL’s Chakra Gold and Kanan Devan brands are making remarkable progress in the tea market, establishing a strong foothold in the south. Additionally, Tata Coffee Grand has undergone a restage, featuring a fresh packaging design to further enhance its appeal.
“We have identified the rural market as an area of opportunity and are focussing on building distribution in rural and semi-urban markets now. In salt, we launched Shuddh, a brand specifically targeted to the South market,” said TCPL.
In the spices category, TCPL introduced a collection of tailor-made spices specifically designed for the southern market under the Tata Sampann brand.
According to the annual report, TCPL aims to establish itself as a prominent player in the FMCG industry by expanding its presence in current categories and exploring new opportunities.
In FY23, TCPL witnessed a notable 15 percent growth in direct distribution, expanding its reach to 1.5 million outlets across India.
“This has allowed us to take our portfolio to a larger outlet universe with more impact. Tata Consumer currently has a direct reach of 1.5 million outlets across India, a 2x+ increase from two years ago,” it noted.
During FY23, TCPL significantly expanded its network and is currently prioritizing the improvement of semi-urban and rural distribution channels.
In FY23, TCPL’s e-commerce segment has experienced substantial growth, progressing at an impressive rate of 32 percent year-over-year.
“Several new initiatives were carried out during the year, including a dedicated customer marketing vertical, the use of data and analytics to generate insights and improve efficiency, and redesigning of the team structure to include a key account team for driving sales,” the company said.
With a remarkable 21 percent increase in sales, TCPL’s presence in modern trade has expanded, contributing to a 14 percent share in overall sales in India.
For the fiscal year ending in March 2023, TCPL witnessed an 11 percent rise in revenue from operations, reaching INR 13,783 crore.