We are making the organisation more effective and agile on multiple fronts. It was a year of unlocking synergies, with acquisitions and divestments, restructuring initiatives, and fast-tracking the integration of newly acquired businesses. We will continue to optimise and transform the supply chain For Better.
To enable a sharper focus on our core FMCG business, we transitioned the Tata Cha franchise- a tea café format Quick Service Restaurant (QSR) chain to Qmin-Shops operated by a subsidiary of Indian Hotels Company Limited (IHCL).
In our International Beverages business, we moved to a distributor-led operating model in Australia to drive further efficiencies
Most recently, we announced a reorganisation plan that entails a) Combining Tata Coffee’s business into Tata Consumer and its wholly-owned subsidiary through a composite scheme of demerger and merger and b) Purchase of minority interests in Tata Consumer Products UK through a preferential issue of equity shares. These actions further our objective of creating a future-ready organisation and will act as a steppingstone for further simplification. Importantly, these will result in operational efficiencies, faster decision-making and execution, creation of focused business verticals and unlocking of financial value.
We are transforming our supply chain in India to service our customers better and stay agile in the marketplace. Our journey towards building an integrated and efficient supply chain is well underway, with the following focus areas.
During the year, we consolidated our integrated production and delivery network into 38 centres and optimised it for lower cost and improved service levels to over 11,000 drop off points across India. This resulted in >25% savings in secondary freight/kg. Integrated business planning has been activated, with automated demand and supply planning, inventory optimisation and S&OP as the first step to a digitalised and future ready supply chain. We are embedding sustainability into our transformation journey, with 24% of our current energy needs in the supply chain network being met by solar power.
In our International business, we restructured the supply chain to ensure high levels of service and resilience. This means ensuring sufficient asset capacity and people flexibility to react to changes in demand, choice of right strategic partners, focus on improving forecast accuracy and collaborating with customers.
Awarded to Tata Consumer UK by Tesco
The foods 3P network optimisation project aims to make the organisation more future-ready for categories, which are witnessing strong growth, as well as realising cost synergies over the medium to long term. The key outcomes from the project are as follows:
