Operating in an ever-evolving FMCG industry, consumer behaviours and preferences serve as a compass for guiding our strategic endeavours. While we gear up to embark on the next phase of our journey, we acknowledge the impact of these trends on our business trajectory.
The burgeoning middle class in India presents a significant avenue for growth, given the low per capita consumption as well as the low penetration of branded products in several categories. Simultaneously, growing affluence is leading to a new cohort of quality-conscious, discerning customers who are less focused on price; thereby presenting an opportunity for us to drive premiumisation. Recognising this dual opportunity, we have continued our commitment to offering a diverse portfolio catering to varying consumer segments. Our strategic emphasis on product innovation and quality ensures that we not only capture market share in the mainstream segment, but also establish a strong foothold in the premium segment.
We have a well-rounded portfolio straddling price points from mass to premium.
Consumers today have hectic lifestyles, which is leading to an increasing demand for products that offer convenience. We have observed a trend towards the adoption of cooking aids, reflecting consumers’ quest for hassle-free meal preparation without compromising on taste or nutrition. Capitalising on this trend, we are bolstering our offerings in categories, such as sauces, ready-to-cook meals, spices and other cooking aids, providing consumers with convenient solutions that align with their evolving needs.
Acquisition of Capital Foods will significantly enhance our offerings in the cooking aids space.
In an era marked by heightened health consciousness, consumers are increasingly prioritising products that promote holistic well-being and nutritional efficacy. Leveraging this trend, we have expanded our portfolio to include a diverse range of healthy offerings, enriched with natural ingredients. By catering to the evolving needs of health-conscious consumers, we strive to encourage healthier lifestyles and drive sustainable growth.
36% of new product launches in FY 2023-24 were focused on Health & Wellness
Nutrition policy instituted to serve as a blueprint for new product development
Acquisition of Organic India, providing further fillip to our Health & Wellness agenda
The rapid proliferation of digital technologies continues to reshape the operating landscape, revolutionising consumer engagement, supply chain management and operational efficiencies. Embracing this digital evolution, we are leveraging the power of AI and data analytics to enhance our decision-making processes, optimise resource allocation and deliver personalised experiences to consumers across various touchpoints. Our strategic investments in digital infrastructure and capabilities underscore our commitment to staying at the forefront of technological innovation, ensuring agility and resilience in an ever-evolving marketplace.
We have rolled out a next-gen Selling Engine as well as AI-driven intelligent procurement
Today, consumers are not only discerning about taste and quality but are also increasingly attuned to the sustainability credentials of the products and brands they choose. This heightened consciousness across certain consumer cohorts is driving a fundamental shift in purchasing behaviour. As consumers seek products that align with their values and contribute positively to the planet, sustainability will increasingly emerge as a pivotal factor shaping brand loyalty and purchase decisions.
During the year, we announced sustainability targets for FY 2025-26, reaffirming our long-term commitments across four key focus areas- ‘Better Sourcing’, ‘Better Planet’, ‘Better Communities’ and ‘Better Nutrition’. These commitments are aligned with the Tata Group’s ‘Project Aalingana’, outlining the Group’s strategy for a sustainable and equitable future.
The accelerated adoption of e-commerce and quick commerce channels has fundamentally transformed consumer shopping behaviours, ushering in an era of seamless integration between online and offline experiences. Embracing this omnichannel experience, we have enhanced our digital presence and distribution network to ensure ubiquitous accessibility and convenience for consumers.
Ecommerce accounts for >10% of India business, up from 3% in FY 2019-20
Quick commerce now accounts for ~30% of our e-commerce revenues in India, enabled by our early identification of the rising importance of this channel.
