Tata Consumer Products is leveraging the current trend toward premiumisation in the consumer segments to create a FMCG powerhouse, and with the aid of Artificial Intelligence creating future brands with a local and global appeal.

The company said consumers are seeking convenience in the FMCG space, leading to a rise in demand for cooking aids, ready-to-drink beverages, and snacks. Digital-first marketing and hyper-personalisation are rewriting the brand playbook.

“Artificial Intelligence is rapidly transforming every function from demand forecasting and content generation to inventory optimisation and pricing intelligence. Companies that embed AI deeply into operations will lead the next phase of value creation. We see an opportunity in creating an FMCG powerhouse and building brands of tomorrow for the modern Indian and global consumer. Our investments in AI, talent, and digital ecosystems will help us operate with greater precision and speed,” said PB Balaji, Non-Executive Non-Independent Director of Tata Consumer Products Ltd, addressing the shareholders at the AGM.

The company has expanded its distribution footprint with direct reach in the last five years to 2 million outlets, with a total reach of 4.4 million outlets.

“We are taking a deliberate approach to grooming internal talent; this includes creating structured leadership pipelines, cross-functional learning experiences, and long-term capability building. Our goal is clear: to nurture talent from within and build an organisation that leads not just today, but into the future,” he said.

Convenience-focused portfolio

Going forward consumer convenience across its products will be of key importance, the firm stated.

“The portfolio is shaped for the future, particularly on the convenience side, digital side. Ready to cook is a focus area for us. And we are now focusing on breakfast, mini meals, and snacking. Snacking is a great opportunity. With the Capital Foods and Soul Foods acquisition, it becomes an important and credible play for us,” said Balaji, responding to shareholders’ query.

Tea prices

As the tea prices remained inflated last year, the company will be implementing price increases on its product offerings.

“Inflation last year has been very sharp, particularly in tea. Our first port of call in these kinds of environments is to ensure that we tighten our belts and get our cost savings right. At the same time, we will be forced to do calibrated price increases, thinking through the entire cycle, because you wouldn’t want to price yourself ahead of the market, and the market completely crashes,” added Balaji. 

Published on June 18, 2025