Strategic Roadmap

STRONG PROGRESS
AGAINST OBJECTIVES

Our strategy is designed to achieve responsible, sustainable and profitable growth. We set clear objectives for the business, which we continue to track, to measure our progress.

Capitals

Financial
Manufactured
Intellectual
Social and Relationship
Natural
Human

	REJUVENATING THE BASE BUSINESS	INVESTING FOR GROWTH	DRIVING INNOVATION	OPERATING EFFECTIVELY	REVIEWING PORTFOLIO OPTIONS
What we said we would do	Continue to strengthen brand health and leverage global synergies and insights	Expand the current portfolio of products through new launches Evaluate inorganic opportunities for expansion in core markets Prioritise entry into high-growth scalable categories	Continue to develop innovative solutions that target underserved consumer needs	Launch initiatives for digitisation, sales force automation, distribution optimisation and supply chain efficiencies	Deliver profitable growth with a balanced portfolio of multi-category brands Create a pan-India retail experience in partnership with Starbucks
Challenges faced in 2019	Inadequate presence in some markets Spread of COVID-19 towards the end of the year	Softening of rural demand	Decline in everyday black tea category Higher intensity of competition	Rise in commodity costs Depreciation of the Indian rupee	Slowdown in household spending
What we did	Completed merger of the Consumer Products business of Tata Chemicals with Tata Global Beverages Kickstarted the integration process between the two businesses Ramped up play in modern trade and e-commerce Acquiring Pepsi’s stake in the NourishCo JV, to make it Tata Consumer’s fully owned subsidiary	Acquired branded business of Dhunseri Tea & Industries to secure market share in Rajasthan Test launched a host of new food product categories through e-commerce outlets	Supported the core business (Tata Tea, Tetley, Tata Salt and Tata Sampann) with new and innovative campaigns Sustained innovation in the non-black tea category (Tetley Cold Infusions in the UK and Tetley Super Teas in Canada) and the Foods business (Tata Sampann – pulses, spices and ready-to-eat mixes – in India) Entered adjacencies to address hyperlocal market requirements	Initiated the digital transformation project of sales and distribution function Scaled up digital tea buying initiative, DigiTea Increased automation Optimised packaging in Himalayan and Tata Salt	Exited Czech Republic business to focus on core growth markets Opened 39 new Tata Starbucks stores, including a foray into Gujarat
What we want to do	Continue to invest in our core brands in food and beverage for building sustainable profitable growth Focus on brand building, premiumisation, distribution and alternate channels for growth	Leverage a differentiated offering and a 'right-to-win' strategy to build larger play across different markets successfully	Capitalise on industry trends to serve consumer needs specific to markets and geographies	Realise cross-business synergies Study alternate business structures to improve profitability Build capabilities across the value chain and invest in a high- performance high- efficiency work culture	Realign capital investment to markets/businesses with higher growth potential and ability to generate sustainable returns Explore additional avenues for growth
Capitals impacted
Associated risks	Global events, Consumer demand, Plantation yield, Interest rate and exchange rate, Commodity costs	Consumer demand, Channel mix	Consumer demand, Product safety and integrity	Global events, Product safety and integrity	Consumer demand, Channel mix