The company, which primarily operates in the food and beverage space, will now move into categories such as detergents, home cleaners, body washes and creams and will depend on acquisitions to implement the plan.
focus on organizational simplification and
An executive said that in the last one year, Tata Consumer will now pursue a bigger scale by expanding its portfolio.
Officials said the management team has a mandate to be aggressive and play big in categories where it can be among the top three players, an M&A scheme funded by Tata Sons and huge cash on its balance sheet (around Rs 3,000). crores), officials said. Officials said the company’s M&A team is already exploring markets for acquisition opportunities. “The holding of the Tata brand in the minds of consumers is clearly an opportunity to be tapped well in the country. We already have a strong brand equity in food items and will be using it in the home and personal care sectors as well. ,” said one of them.
Tata Consumer did not comment.
Executives said the company is looking for a category in the FMCG space where it can make an impact through scale. Even in the food sector, it may include branded dry fruits, a niche that is seen as a commodity with no branded players.
Tata Consumer has created an entirely new executive management team focused on execution, led by Chief Executive Sunil D’Souza, who was hired in April 2020. Chief Operating Officer Ajit Krishnakumar, who was appointed in January 2020, is in charge of the backend. Integration which includes handling of supply chain, logistics, integration of affiliates and overall operational functions. Executives said nearly half of the company’s talent in the sales and marketing teams today is external hires, with a clear focus on execution.
“The mandate is to build a huge FMCG company that is also agile and agile in the market. A new culture that is well suited to an agile FMCG company is being created that focuses on productivity, efficiency and growth… (and) that taps into growth opportunities in India’s vast consumption market and in creating shareholder returns,” said a top company executive, requesting anonymity.
The FMCG company had appointed Deepika Bhan as the president of its packaged food business in April 2022. Bhan worked with Hindustan Unilever as the global brand director of haircare for the South Asia market and with PepsiCo and Tata Motors. Puneet Gupta joined Tata Consumer in April 2021 to lead strategy and M&A.
Tata Consumer also appointed Gary Ackles as its president of international business in January 2022 to replace Adil Ahmed, who is retiring this month.
In March 2022, as part of its second major restructuring of food and beverages, Tata announced the merger of Tata Coffee with Tata Consumer. Earlier it had merged the salt and branded pulses business of Tata Chemicals with Tata Consumer.
Tata Consumer stock has gained 27% in the last one year, while the Nifty FMCG index is up 12.3% and the Nifty 50 index is up 16.4%. Ever since Tata Consumer was included in the high-tracked Nifty 50 index by the National Stock Exchange in April last year, the stock has outperformed all consumer goods stocks except ITC. With a market capitalization of around Rs 75,000 crore, the Tata Group firm is the seventh largest consumer goods company in India.
“The restructuring of Tata Consumer’s India and overseas business will enable the company to better leverage supply chain, create customer-centric business verticals and accelerate decision making and execution. It will be the single listed entity occupying the full value of TCPL Group.” Will build,” Edelweiss said in a report.
The company’s portfolio of products includes tea, coffee, water, salt, pulses, spices, ready-to-cook offerings, breakfast cereals, snacks and mini meals. The company has an annual turnover of around Rs 12,500 crore with operations in India and international markets.
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