Tata Consumer Products Ltd, a leading producer of tea, coffee, packaged foods, pantry staples and ready-to-drink beverages, expects India’s evolving consumption landscape, rising disposable incomes and the growing influence of Gen Z consumers to create a long runway for growth for the FMCG sector.
The company is entering FY27 with strong growth fundamentals despite volatility in the global macro-economic environment, said its Managing Director & CEO Sunil D’Souza in the latest annual report.
Digital commerce and premiumisation drive growth
“Key trends such as health & wellness, convenience and premiumisation continue to accelerate, creating meaningful opportunities for brands that can combine scientific credibility with brand trust and relevance,” D’Souza said.
Asserting that digital commerce has emerged as a powerful growth channel, he said the company’s portfolio diversification, capability building and disciplined execution over the past few years have positioned it strongly for the next phase of expansion.
Focus on growth and margins
“The task ahead is clear: build on these strengths by accelerating revenue growth, improving margins, expanding our reach and strengthening brand equity,” he said.
According to the company, the theme of this year’s annual report ‘Serving More Moments. For Better’ reflects its strategy of expanding the portfolio and enlarging its target addressable market in line with evolving consumer needs.
Investments in digital and supply chain
As part of its transformation journey, Tata Consumer continues to strengthen future readiness across digital, supply chain and people capabilities.
The company’s soluble business delivered a record performance despite volatility in coffee prices. To support future growth, the company is expanding manufacturing capacity in Vietnam to build a more agile and responsive supply chain.
India business and acquisitions perform strongly
In India, the tea business delivered performance broadly in line with mid-to-high single-digit growth guidance, while the salt business recorded strong growth and the coffee portfolio-maintained momentum.
The company said it remains focused on accelerating growth in non-South markets, where long-term penetration opportunities remain significant. The ready-to-drink business demonstrated resilience despite heightened competition, while Tata Soulfull continued to strengthen millet-based offerings.
Capital Foods and Organic India strengthen portfolio
The company’s recent acquisitions — Capital Foods and Organic India — have been integrated into the Tata Consumer ecosystem and are strengthening their market presence.
Capital Foods, which owns brands such as Ching’s Secret and Smith & Jones, is expanding aggressively in South and East India, while Organic India reported strong growth driven by e-commerce momentum and expansion in pharma distribution.