PremiumPackaged goods firm Tata Consumer Products chairman N. Chandrasekaran today flagged geo-political tensions and supply-chain challenges and said that demand-supply mismatches in crude and other commodities is driving up inflation
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Packaged goods firm Tata Consumer Products Ltd chairman N. Chandrasekaran on Monday flagged geo-political tensions and supply-chain challenges and said that demand-supply mismatches in crude and other commodities is driving up inflation. This, he said, is likely to impact demand across categories.
“As we work towards achieving the long-term vision for Tata Consumer, the current operating environment remains highly volatile," Chandrasekaran told shareholders at the company’s virtual annual general meeting on Monday.
“In this uncertain environment, we will continue to focus on strong execution, maintaining agility and nimbleness to adapt and navigate through short- term bumps, and more importantly to take advantage of opportunities that could arise," he said.
Tata Consumer sells packaged tea, coffee, water, salt, pulses, spices, and ready-to-eat offerings across markets globally. For the year ended 31 March 2022, it reported revenues of ₹12,425 crore. Its brands include Tetley Tea, Tata Tea, Tata Coffee Grand, Tata Salt, Tata Sampann and Tata Soulfull. In 2020, the Tata Global Beverages and Food division of Tata Chemicals merged to form Tata Consumer . Earlier this year, the company announced the merger of Tata Coffee’s business with Tata Consumer Products as part of a re-organization plan.
Meanwhile, on Monday, Chandrasekaran said Tata Consumer Products will increase annual capex for FY23 to ₹361 crore from ₹250 crore last fiscal.
“The company has a very aspirational growth plan. If you see what steps we have taken in the last two to three years, it has been, first of all, in consolidating the company, consolidating the portfolio within the company as well as across the group. We launched beverages and foods as two different verticals. We are scaling our distribution. We have also made acquisitions," he said.
The company will continue to increase its distribution footprint apart from increasing its portfolio. In India, the company reaches more than 201 million households and distributes to over 2.6 million outlets. In contrast, Hindustan Unilever Ltd’s products reach 9 million outlets.