Tata Consumer Products Ltd. (TCPL), renowned for its extensive range of tea, coffee, water, salt, pulses, spices, and ready-to-eat offerings, is making a strategic move into the food services sector. The company plans to supply its diverse portfolio of products, including salt, tea, coffee, and gravies, to hotels, restaurants, and cafes (HORECA), announced Sunil D’Souza, TCPL’s managing director and chief executive.
“We are setting up our distribution system specifically for HORECA,” D’Souza stated. “Our extensive range of products—water, spices, pulses, tea, coffee, sauces, and dips—will cater to this segment. The acquisition of Capital Foods enables us to build a robust distribution channel dedicated to this market. We are still refining the operational details, but this presents a significant opportunity we have yet to explore.”
Earlier this year, TCPL acquired Capital Foods, known for its Ching’s Secret noodles and condiments, and Smith & Jones brands. The company also acquired Organic India, a purveyor of organic teas and health foods. These acquisitions allow TCPL to extend its reach beyond traditional retail channels into the business-to-business market.
Ching’s Secret, in particular, bolsters TCPL’s presence in the gravies and condiments segment. Additionally, Tata SmartFoodz Ltd., which offers ready-to-eat meals such as pasta, noodles, biryani, and combo meals, will also be a key player in this new venture.
D’Souza revealed that TCPL is considering the establishment of a specialized distribution arm to supply hotels and restaurants with its array of packaged foods. Currently, these products are distributed through third-party wholesalers.
“Many of our products are purchased by hotels and restaurants through wholesalers or unorganized distributors. Some multinational companies have already established food service businesses here, but we have not. This represents a valuable growth opportunity for us, and we plan to capitalize on it soon,” he said.
TCPL was formed in 2019 through the merger of Tata Chemicals, a seller of salt and pulses, with Tata Global Beverages. The company now boasts a wide range of packaged food products, spanning pantry staples to snacks.
Companies like Nestle India and Hindustan Unilever Ltd. are already active in the food services market. Unilever Food Solutions India offers a variety of products under brands such as Knorr, Kissan, Rex, and Brown & Polson, catering to professional chefs. Nestle operates Nestlé Professional in India, addressing out-of-home consumption needs through vending machines and food services.
With this strategic move, Tata Consumer Products Ltd. aims to establish a strong foothold in the HORECA sector, leveraging its diverse product range and recent acquisitions to expand its market presence.