Tata Consumer, the company that sells Tata Salt and Tetley tea bag
products, expects its food business to give noteworthy profits in the coming three years, having built the foundation for scaling up the segment with a differentiated portfolio, strong backend supply chain, and marketing and distribution networks.
Chief executive Sunil D’Souza said that the company will now rise beyond foods and beverages in the consumer goods space, since Tata Consumer historically has the DNA of a food company, and it will build the necessary skillsets within the organisation for this diversification.
Tata Consumer has instilled around ₹800 crores to fund acquisitions such as of NourishCo, Soulfull and Smartfoodz and for working capital, D’Souza said. Tata Consumer has aggressively been launching products in the last few months, both in the commodities space under the Sampann brand and value-added products such as Tata Simply Better plant-based meat, Tata Soulfull masala oats and Himalayan honey and preserves.
Tata Consumer has aggressively been launching products in the last few months with a mandate to build Tata Consumer into a premium FMCG company.
“The P&L of our businesses is a key priority, and I am not a fan of losing money,” he said. “While we are spending what it takes to build the business, we expect it to generate returns in the next two to three years.”
We are almost there in terms of building the foundation for our food FMCG business. Our teams are empowered, our brands are scaling up in the commodities space, and we are now launching differentiated products in the next 60-90 days that can demand higher margins”.