In a bid to become a full-fledged Fast Moving Consumer Goods(FMCG) company, Tata Consumer Products (TCP) is eyeing ventures in new product categories and acquisitions.

Speaking at the company’s 61st Annual General Meeting(AGM), N Chandrasekaran, Chairperson of Tata Group, stated that the company is actively expanding its direct and indirect reach.

“The company is transforming itself and we are expanding the beverage and food business and are looking at new categories. Tata Consumer Products is also looking at acquisitions in new categories to become a complete FMCG company. To support its growth strategy, the company has completed the acquisition of Capital Foods and Organic India. This will expand its total addressable market into high growth, high margin categories,” said N Chandrasekaran.

TCP majorly operates in the food and beverage business and offers tea, coffee, liquid beverages, salt , pulses, plant-based meat and cold pressed oils. 

The new category ventures come at a time when the FMCG sector has witnessed a decline in volumes and consumption.

Further, TCP scaled its distribution and has reached 4 million retail outlets in the domestic market.

“The company is expanding its direct and indirect reach across the country. The south India market is very important for us and we have focused on improving distribution. We have changed our advertisement strategy to become more local and products like Sampann are being customised to the southern palette,” he said.

Vending machines

TCP is also planning to install vending machines for its product offering.

“The company is looking to tie up with corporations for its coffee. We are also looking at vending machines. Tata Consumer Products launched 34 products in the last fiscal year,” said N Chandrasekaran.

The company also witnessed a 5x growth in its innovation revenue since FY21 with 5 per cent innovation to sales contribution. 

“India’s middle class is expected to grow from about 30 per cent of the population to 50 per cent by 2030, meaning about 300 million people will enter the middle/consuming class, a huge opportunity. Apart from this a young population, rapid urbanisation, increasing disposable incomes and rising aspirations bode well for the overall FMCG space in India. I believe TCPL is well positioned to navigate the evolving macro-economic landscape and unlock value creation opportunities,” added N Chandrasekaran.