Tata Consumer Products (TCPL) CFO highlights the role of AI in driving FMCG growth and its impact on operations, marketing and value creation. Learn about TCPL's digital transformation and future planning.
Emphasizing the importance of artificial intelligence (AI), TCPL CFO PB Balaji is chairman of the company's AGM, saying that companies that have embedded AI deeply into operations will lead the next phase of value creation.
Artificial intelligence rapidly translates everything from demand forecasting to inventory optimization and pricing resilience, adding that digital first marketing and hyperpersonalization is rewriting the brand playbook for the FMCG sector, according to pricing intelligence.
TCPL, TATA Group FMCG ARM, says it has “has bold strategy, disciplined execution, and trained execution and ambition to build a future-ready FMCG powerhouse.”
“Investing in AI, talent and digital ecosystems helps us operate at greater accuracy and speed,” he said, “We have built a strong foundation shaped by the values of the TATA Group and a strong foundation shaped by a deliberate brand portfolio, a resilient operating model.
Nowadays, consumers are becoming more health conscious and are looking for better products from you and organic options. There is a clear trend towards “premiumization.” This is happening throughout the vertical, even with staples, he said.
Founded five years ago after integrating TATA Chemicals' Consumer Products Business with TATA Global Beverage, TCPL has undergone a major transformation. It works in multiple categories and brands “touch millions of lives every day.”
When global growth is expected to ease in the near future, India is one of the fastest growing large economies in the world, with major changes in consumer behavior and business models.
Factors such as increased urbanization, time constraints and consumers want convenience will lead to increased demand for cooking aids, quick drinks and snacks.
Under the revenue terms, TCPL grew at an annual rate of 13% per year, with EBITDA rising to 14% and net profit to 23%. “In this fiscal year, we continue to do this momentum with a 16% revenue growth and an 8% EBITDA growth, and despite cost input inflation, companies continue to be strong,” Balaji added.
Meanwhile, TCPL Managing Director and CEO Sunil D'Souza said TCPL is one of India's top 10 FMCG companies. TCPL's growth businesses include Tata Sampann, RTD, Tata Soulfull, Capital Foods and Organic India. These are currently 28% of the Indian business.
TCPL revenues from e-commerce, including FY25's Quick-Commerce, rose 57%.
Regarding innovation, D'Souza says this is the lifeblood of any FMCG business, with TCPL focusing on providing a 5% sales ratio for the best innovations. “We started one launch every nine days last year,” he said.
In fiscal 2023, revenue from TCPL's operations was 16% higher than Rs 17,618.
The AGM began with members observing a minute of silence to pay tribute to the victims of the crash crash on an Ahmedabad plane.
Calling it “one of the darkest days in the history of the Tata Group,” Balaji said, “Now, words are not comforting, but our idea is with families and loved ones injured in the crash.”
The AGM also paid tribute to former Tata Group and Tata Sons chairman Ratan Tata, who passed away last October.
