India’s Booming Consumer Market: TCPL’s N Chandrasekaran Reveals Long-Term Growth Potential

N Chandrasekaran, Chairman of Tata Consumer Products Ltd (TCPL), highlighted India’s robust economic growth, with a notable 8.2% increase in the fiscal year 2023-24. Despite global economic uncertainties, driven by geopolitical shifts impacting supply chains and energy security, Chandrasekaran remains optimistic about India’s sustained growth trajectory.

Long-Term Structural Opportunity

Chandrasekaran emphasised India’s consumer market as a significant long-term opportunity. With factors like a youthful demographic, rapid urbanisation, expanding middle class, increasing disposable incomes, and rising consumer aspirations, the market presents ample growth prospects. He projected that India’s middle class will expand from 30% to 50% of the population by the decade’s end, marking a substantial demographic shift.

Strategic Acquisitions and Market Expansion

Discussing TCPL’s strategic moves, Chandrasekaran highlighted the acquisitions of Capital Foods and Organic India. These acquisitions aim to bolster TCPL’s presence in high-growth, high-margin segments of the market. He noted TCPL’s success in doubling its distribution network to 4 million retail outlets since 2020 and achieving significant revenue growth through innovation.

Performance and Growth Initiatives

Chandrasekaran provided insights into TCPL’s financial performance, reporting a 10% revenue growth to ₹15,206 crores in FY24. He also lauded the record-setting expansion of Tata Starbucks, which opened 95 new stores in the same fiscal year. Additionally, he commended the strong performance of TCPL’s international business operations.

Company Background

TCPL, formed in 2020 through the merger of Tata Chemicals’ consumer products business with Tata Global Beverages, boasts a diverse portfolio of iconic brands including Tata Salt, Tata Tea, Tetley, Eight O’Clock Coffee, Good Earth Tea, and Tata Sampann. The company also operates Tata Starbucks, a joint venture that continues to expand its footprint in the competitive coffee market.