Towards a better future

The Company has continued to invest in the future growth engines of its portfolio, and this has started delivering results, with the growth businesses recording 53% growth and increasing their salience significantly.

Dear Shareholders,

It is my privilege to present the Integrated Annual Report of Tata Consumer Products for FY 22-23.

I am pleased to report that your Company has made steady progress during the year and is on track in its transformation journey to becoming a leading FMCG player. Despite the continued challenges in the postpandemic world emanating from a highly volatile macro environment and geopolitical unrest, the Company has delivered a well-rounded performance across key metrics with double digit revenue growth and a strong EPS growth of 28% in FY 22-23.

Importantly, your Company has taken significant steps towards becoming growth oriented and building strong organisational capabilities. During the year, substantial progress has been made in strengthening the core businesses and expanding the total addressable market.

In September 2020 your Company had committed to doubling its numeric reach to 4 million outlets in three years and it is on track to achieve that. The Company has continued to invest in the future growth engines of its portfolio, and this has started delivering results, with the growth businesses recording 53% growth and increasing their salience significantly. In parallel, your Company is driving digital transformation across its business to streamline operations and increase efficiency and effectiveness. It has invested in building a ‘fit for future’ R&D capability and accelerated the pace of innovation, launching 2X the number of new products versus last year and entering several new categories.

There has been continued focus on streamlining and simplifying the business. My letter last year to you had outlined the plan to merge Tata Coffee’s business into Tata Consumer Products to drive revenue synergies and operational efficiencies, in addition to simplifying legal structures and driving cash efficiencies.

The process is well on track for completion in 2023. Also, as part of a larger strategic exercise, your Company has undertaken structural changes to infuse new talent and bring down cost structures in its international business.

The Company recognises that building a diverse and inclusive workplace is fundamental to achieving long-term business goals. Throughout the year, it has implemented a range of initiatives to strengthen the organisation’s talent pipeline through a combination of external recruitment and internal development programmes. Your Company has also focused on employee well-being and recognition and fostering an inclusive culture. It believes that these efforts will not only make the organisation future-ready but also create an engaged and progressive workforce.

The Tata Group is committed to building sustainable businesses. The group initiative, Aalingana outlines the Tata Group’s approach to planet resilience, the group’s aspiration of net zero by 2045 and the vision of securing the future by innovating today. It commits to embedding sustainability into business strategy by focusing on three interconnected pillars: driving the decarbonisation of our businesses and value chain; applying a systemic, circular economy approach to reduce resource use and waste; and preserving and restoring the natural environment.

As part of this initiative, Tata Consumer has announced its commitment to sustainability targets which include achieving net zero status, water neutrality, promoting a circular economy of plastics, advancing diversity in workforce, producing sustainable products, and implementing sustainable sourcing practices. Your Company believes that these commitments will help achieve its long-term goals and create a more sustainable future for all.

As we move forward, Tata Consumer Products will remain steadfast in executing against its strategy with a sharp focus on growth. Your Company is committed to strengthening its core businesses, accelerating innovation, and unlocking efficiencies while exploring new opportunities both organic and inorganic, and building for the future.

I am grateful for your unwavering support and the dedication of our employees, both of which have been instrumental in the steady progress the Company has made thus far. We value your partnership and look forward to reaching new heights together on this journey.

Warm Regards,

N. Chandrasekaran Chairman