Tata Consumer Products (TCPL) is set to transform itself into a comprehensive fast-moving consumer goods (FMCG) company, according to Chairman N Chandrasekaran.
Speaking at the company's annual general meeting, Chandrasekaran, who also chairs Tata Sons, revealed that TCPL has more than doubled its capital expenditure for the fiscal year 2025 to Rs 785 crore. A significant portion of this investment, approximately Rs 400 crore, will be directed towards establishing a new plant in Vietnam.
The company is actively exploring acquisition opportunities to drive growth, with a focus on financial viability and potential for expansion. In the last fiscal year, TCPL invested nearly Rs 7,000 crore in acquiring Capital Foods and Organic India.
Chandrasekaran highlighted the company’s interest in health-oriented and food products but also indicated that they are considering a broader range of FMCG segments.
“Last year’s capex was around Rs 308 crore but it is going to be significantly higher, almost more than double of that Rs 785 crore because of a big investment we are making in Vietnam in a new plant. It’s about Rs 400 crore, so there will be a big investment in capex this year,” said Chandrasekaran.
Millet-based products are a key area of interest for TCPL, with plans to introduce a variety of new products in this category. The company’s product portfolio is continuously expanding, with a steady stream of new introductions to meet growing consumer demand.
TCPL is also making decent investments in digital infrastructure to enhance operational productivity and improve customer experience. The deployment of artificial intelligence tools and ongoing infrastructure upgrades are part of the company’s strategy to stay ahead of market trends.
In May, Sunil D’Souza, MD & CEO at TCPL, spoke on the company’s approach to integrating AI, mentioning that TCPL has a dedicated team specifically for AI use cases.
To support its expanding product lineup, TCPL plans to increase its advertising spending strategically, to ensure its products are well-promoted and visible. This comes as the Indian consumer market continues to grow, driven by a rising population, a burgeoning middle class, rapid urbanisation, increasing disposable incomes, and higher consumer aspirations.
For the fiscal year 2024, TCPL reported a revenue of Rs 15,206 crore, a 10 per cent growth. Formed in 2020 through the merger of Tata Chemicals’ consumer products business with Tata Global Beverages, TCPL’s brand portfolio includes Tata Salt, Tata Tea, Tetley, Eight O’Clock Coffee, Good Earth Tea, and Tata Sampann. The company also operates the Tata Starbucks coffee chain.