Persistent Inflation Likely to Impact Demand Across All Categories, Says Chandrasekaran, President of TCPL
The current operating environment remains highly volatile and persistent inflation is likely to impact demand across all categories, Tata Consumer Products Ltd Chairman N Chandrasekaran said on Monday.
To navigate through these ‘near-term shocks’ in this uncertain environment, the company will focus on strong execution, maintaining agility and agility,’ he said while addressing the shareholders at the annual general meeting (AGM). “Geopolitical tensions, supply chain challenges and supply/demand mismatches for crude and several other commodities are driving persistent inflation, which will likely impact demand across all categories. ”In this uncertain environment, we will continue to focus on strong execution, maintaining the nimbleness and agility to adapt and navigate through short-term bumps; and above all to take advantage of opportunities that may arise. during this period,” said Chandrasekaran, who is also the chairman of Tata Sons, the holding company of the Tata Group.
Calling FY21 “very turbulent,” Chandrasekaran said challenges posed by the pandemic and more recently geopolitical developments have resulted in a highly volatile macro environment with far-reaching impact on people, economies and communities. businesses. .
”These unprecedented challenges have also presented us with opportunities to adapt to new ways of thinking, to be agile and to build for the future. This mindset has helped your business achieve strong overall performance,” he said.
TCPL has made significant progress – expanding distribution, accelerating the pace of innovation, reimagining the supply network and driving digital transformation across the value chain. “These are investments we are making for the long term and I am confident they will position us well for future growth,” he noted.
Currently, TCPL, which was formed after the merger of Tata Chemicals’ consumer products business with Tata Global Beverages, has a presence in over 201 million homes in India and distributes to over 2.6 million outlets.
“We expanded our portfolio in the Ready-to-Eat category with the acquisition of Tata SmartFoodz and the business was integrated quickly. Our growth businesses NourishCo, Tata Sampann, Tata Soulful and Tata Q have collectively grown by 52% over the year and we are investing in these businesses to fuel them further,” he added.
On his JV Tata Starbucks, Chandrasekaran said that despite the challenges posed by the pandemic, he opened 50 new stores last year, bringing the total to 268 in 26 cities. “Digital transformation across the entire organization and value chain is a priority area for us and work in this area is well underway,” he said.
Established in 2012, Tata Starbucks is a 50/50 joint venture between Starbucks Corporation and TCPL.
TCPL launched several products in the food and beverage portfolio, addressing consumer needs for health and wellness, taste and convenience, which also helped us expand our total addressable market, said Chandrasekaran.
“Innovation’s contribution to sales doubled during the year,” he said.
For the year ended March 31, 2022, TCPL’s consolidated revenue was Rs 12,425 crore.
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