New Delhi: Tata Group’s consumer goods arm, Tata Consumer is investing significantly in R&D and looking at new categories and acquisitions, as part of its strategy to become a full-fledged FMCG company, said N Chandrasekaran, chairman, Tata Sons.
He was speaking at the 60th annual general meeting of Tata Consumer Products.
“The company is working on becoming a full-fledged FMCG company. But it can’t be done overnight. It’s a process that we will go through,” Chandrasekaran said.
He added that currently, the brand is working on expanding its beverages and food businesses. Additionally, TCPL is actively investing in R&D and innovation to build new categories and also exploring acquisition opportunities in respective categories, to kickstart and accelerate its journey.
The chairman pointed out during his address at the AGM that TCPL’s R&D spending increased by almost 70 per cent over last year.
Highlighting that the company is investing in building ‘fit for future’ R&D capability, Tata’s top boss said, “Our innovation agenda is being driven by key consumer trends such as health & wellness, convenience, and digitization.
We have identified the key platforms we want to play in, and this framework has helped us accelerate the pace of innovation and tap into new consumption occasions, thereby expanding our target addressable market.”
He claimed that Tata Consumer’s innovation-to-sales ratio this year increased to 3.4 per cent from 0.8 per cent in FY20. The company’s new brands including Tata Sampann, NourishCo, and Tata Soulfull saw a combined YOY revenue growth of 53 per cent in the financial year ended March 31, 2023.
TCPL consolidated revenue for FY23 increased 11 per cent to Rs 13, 783 crore with an EBITDA growth of 7 per cent. Its profit after tax stood at Rs 1,320 crore.