Tata Consumer Products Ltd is accelerating its push into digital commerce, artificial intelligence and growth categories as it positions itself for the next phase of expansion amid changing consumer preferences and the rapid evolution of India’s retail landscape.
“Rising incomes, increasing health and wellness awareness, demographic advantages and the expansion of digital commerce are creating long-term growth opportunities,” said Chairman N. Chandrasekaran in the latest annual report.
Growth businesses now accounted for 31% of its India portfolio, reflecting a gradual transformation from a traditional beverages company into a diversified multi-category food and beverages player.
AI and digital transformation strategy
As part of its digital transformation journey, Tata Consumer Products is leveraging an AI Launchpad and the group’s consumer data ecosystem to develop industry-specific AI solutions at scale and augment workforce productivity.
During the year, the company also undertook a calibrated transformation of its go-to-market model in India to sharpen category focus, improve productivity and strengthen execution across the distribution network.
It is also investing in business-critical skills through structured learning programmes, self-directed learning and cross-functional initiatives to build future-ready capabilities.
Quick commerce drives alternate channels
Alternate channels continued to outperform traditional retail, with new-age channels contributing 41% of the company’s India business.
“The growth has been led by the rapid expansion of quick commerce, a channel we have proactively embraced. At the same time, traditional retail remains the backbone of our go-to-market efforts,” he said.
Revenue crosses ₹20,000 crore mark
Tata Consumer Products, a leading producer of tea, coffee, packaged foods, pantry staples and ready-to-drink beverages, reported a 15% increase in consolidated turnover at ₹20,290 crore for FY26 compared with the previous year.
“Over the past years, we have systematically diversified our portfolio, nurtured our brands and built new growth engines while strengthening our core categories. Our company crossed the historic revenue threshold of ₹20,000 crore this year and is now a multi-category F&B company,” he said.
Focus on long-term value creation
“The work we’ve done over the past few years has put us in a strong position. With a solid financial base and a portfolio that reaches millions, we are ready to scale further.
Our focus is on the fundamentals: driving growth, enhancing margins and strengthening our brand equity. We are committed to turning this operational discipline into consistent long-term value for our stakeholders,” he said.
While acknowledging the possibility of short-term volatility, the Chairman said the company’s diversified portfolio, strong balance sheet and disciplined execution would continue to help unlock future growth opportunities.