On Friday, the Chairman of the Tata Consumer Products Ltd (TCPL), N Chandrasekaran stated that it is extending its performance into the e-commerce scope apart from escalating up a traditional distribution network. In May, Tata Group had obtained a majority stake in online grocery seller BigBasket for an unrevealed sum of money.
Tata group is now vigorously stretching into the e-commerce space, where the salt-to-software conglomerate is against peers like billionaire Mukesh Ambani’s Reliance and Amazon.
After joining the consumer products business of Tata Chemicals with Tata Global Beverages, the company was retitled TCPL. TCPL has proclaimed a consolidated revenue from performances of ₹11,602.03 crores in FY21.
Chandrasekaran, who is also the chairman of Tata Sons, addressed the shareholders at the company’s virtual annual general meeting. The holding company of the Tata group stated TCPL will extend the expansion of the Starbucks coffee chain in India despite a hit in revenue after the pandemic.
Further, he declared, “We have significantly focused on strengthening the distribution, traditional distribution as well as e-commerce. This is an area you will see continuous strengthening, which will only help the company,”.
The TCPL focuses on more products and runs them through a strong distribution network “both offline and e-commerce, its own e-commerce platform and to leverage our Tata Super App”.
Tata group is now vigorously getting into the e-commerce space, where the salt-to-software amalgamates and is against the likes of billionaire Mukesh Ambani’s Reliance and Amazon.
Last month in may, Tata Group had procured a majority stake in online grocery seller BigBasket for an undisclosed sum of money. Tata Digital Ltd, a wholly-owned entity of Tata Sons, has taken a majority stake in Supermarket Grocery Supplies, which administers BigBasket.
It also runs an e-commerce platform, Tata CLiQ, which deals in segments like apparel, electronics and footwear categories.
On Starbucks, Chandrasekaran said TCPL would continue its expansion despite its business being hit during the second wave of the pandemic.
The business of Starbucks has become successful in 2020-21 and had inaugurated new stores but was impacted by the second wave.
“We would continue to expand it,” Chandrasekaran said.
Tata Starbucks is a 50:50 joint venture between Tata Consumer Products Ltd and Starbucks Corporation and manages around 200 stores in India.
On its tea cafe Tata Cha, Chandrasekaran said it was an “experiment and currently no definitive plan to scale this up”. TCPL serves three Tata Cha stores in Bengaluru.
Chandrasekaran said while replying to a shareholder’s queries about the company’s manufacturing and distribution point of view, Tata consumers will proceed to perform the lead role in the fast-moving consumer goods (FMCG) division.
Recently, TCPL purchased some acquisitions as Kottaram Agro Foods, the maker of the Soulfull brand of breakfast cereals and millet-based snacks.
“Our focus currently is to expand both the distribution and the adjacent categories in beverages and foods. There are a lot of scopes but there are definitely plans and other categories in the FMCG segment in the years to come,” Chandrasekaran stated.
On new product launches in 2021-22, Chandrasekaran replied, “I think the company has a strong product pipeline, and they will continue to launch those products.”
Leave a Reply
You must be logged in to post a comment.