Tata Consumer Products expects its foods business to generate significant profits in the next three years, having built the foundation for scaling up the segment with a differentiated portfolio, strong backend supply chain and marketing and distribution networks – as per the report published on ET.
The company that sells Tata Salt and Tetley tea bags will now pivot beyond foods and beverages in the consumer goods space, Chief Executive Sunil D’Souza said. Since Tata Consumer historically has the DNA of a foods company, it will build the necessary skillsets within the organisation for this diversification, he added.
The company has infused around INR 800 crore 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.
D’Souza took charge in March 2020 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 yrs. 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.”
Tata Consumer Products recently entered the alternate meat segment with the launch of Tata Simply Better- Plant Based Meat (PBM) range. With this new brand, the company is extending its product portfolio into a new category, targeting consumers who are looking to incorporate more plant-based ingredients for health, sustainability or other considerations.