Companies

Tata Consumer integrating distribution network, supply chain to drive efficiency

PTI New Delhi | Updated on June 25, 2021

To launch Eight O’Clock, America’s original gourmet coffee, in the direct-to-consumer model next week

Tata Consumer Products Ltd (TCPL) is integrating its distribution network and supply chain to drive efficiency, while undertaking end-to-end digitalisation of channel partners to become a formidable player in the FMCG industry by leveraging on its wide product portfolio, company Chairman N Chandrasekaran said on Friday.

Addressing the shareholders at the company’s virtual annual general meeting, Chandrasekaran who is also the Chairman of Tata Sons, the holding company of the Tata group, said TCPL will launch Eight O’Clock, America’s original gourmet coffee, in the direct-to-consumer (DTC) model next week.

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“The company now has a portfolio, which covers tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks...,” he said.

To achieve the next level of growth by leveraging this expanded product portfolio, Chandrasekaran said TCPL “is now implementing and integrating its distribution network and supply chain to drive efficiency, and more importantly, agility, undertaking an end-to-end digitalisation of channel partners and field force...”

Stating that the company is focusing on “bolstering its e-commerce capabilities, and a few products have been already launched in its DTC model,” he said, “I’m also happy to say the Eight O’Clock coffee will be launched in the DTC model next week.” TCPL is also using data analytics for strategic planning and is working to make its products available everywhere, and all the time, Chandrasekaran added.

“We have a strong foundation in place for Tata Consumer Products, and we are confident to build on this momentum to unlock the potential of the company and the opportunity in the market to become a formidable player in the industry,” he asserted.

Chandrasekaran said four years ago the Tata Group had embarked on a major transformation initiative under “'One Tata” approach to simplify portfolio and reduce complexity by synergising operations to become a force multiplier and scaling its businesses through growth and consolidation.

“At Tata Consumer Products, we have made significant progress in all these dimensions. The company has sharpened its focus on its key geographies and simplified its business model by exiting several non-core markets, and businesses,” he said, adding TCPL had exited from Sri Lanka, Russia and non-core business in the US and Australia.

“These simplification initiatives are enabling the company, and giving the management ample time to focus on what is core to the business as a group,” Chandrasekaran said.

The group has consolidated its foods and beverage businesses, he said, adding “the integration of the business has been largely achieved, and we have started to see significant synergy benefits, including sales and distribution.”

Chandrasekaran further noted that “with robust volume growth in both beverages and food businesses, we have gained market share in both of these categories, tea and salt. The ambition of the company, clearly, is to become a leading player in its key segments in the fast-moving consumer goods (FMCG) area.” After merging the consumer products business of Tata Chemicals with Tata Global Beverages, the company was renamed as TCPL. TCPL has reported a consolidated revenue from operations of ₹11,602.03 crore for FY21.

Published on June 25, 2021

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