‘Mitigating impact of supply-chain stress, high energy prices and geopolitical tensions requires strategic focus, agility and efficient execution’
‘Mitigating impact of supply-chain stress, high energy prices and geopolitical tensions requires strategic focus, agility and efficient execution’
Terming the present macro surroundings as ‘highly volatile’ because of geopolitical tensions, supply-chain stress and inflation, Tata Consumer Products Ltd. (TCPL) MD and CEO Sunil D’Souza mentioned the corporate was intently monitoring near-term tendencies to see how these financial headwinds affected shopper behaviour.
The firm could be monitoring the worldwide state of affairs and inflation intently and put in ‘practical and adequate’ mitigating measures, Mr. D’Souza mentioned within the newest annual report of the Tata group’s FMCG arm.
Global supply-chain stress and better vitality costs had led to widespread inflation, and geopolitical strains had additional exacerbated the state of affairs. Mitigating the influence required strategic focus, agility and environment friendly execution, he mentioned.
“On a positive note, we are in the staples business and hence relatively better positioned to ride out these speed bumps. We also have a plethora of initiatives to drive growth and create efficiencies that can enable cost optimisations,” Mr. D’Souza added.
These components give lend the corporate confidence to have the ability to ship worthwhile development however the influence of the working surroundings, he mentioned.
Talking about adjustments in shopper behaviour, Mr. D’Souza mentioned consciousness ranges have been very excessive. There have been some secular tendencies shaping the buyer panorama in India with rising disposable incomes, growing urbanisation, and the democratisation of the Internet.
These tendencies have been resulting in customers looking for higher high quality and trusted manufacturers with elevated comfort. The pandemic had additional accelerated digital adoption and had additionally introduced well being and wellness ‘front and centre’ for customers, he identified.
“While these are some of the secular trends that will play out over the medium to long term, we are closely monitoring the near-term trends to see how inflation and other economic headwinds could affect consumer behaviour,” he mentioned.
TCPL would proceed to leverage the belief that the model impressed, increase portfolio and improve footprint to achieve extra customers in India, he added.
“There is a significant opportunity for us to grow our wallet share, shelf share, and business share,” he mentioned.
Currently, TCPL reaches greater than 201 million households in India and distributes to over 2.6 million retailers.
“We will continue to execute on our strategic priorities and accelerate our growth momentum. Innovation, supply chain optimisation and digitalisation will be focus areas for the year ahead. We will continue to strengthen our sales and distribution across traditional as well as modern channels,” he mentioned.
TCPL would deal with simplifying its enterprise construction in India as additionally abroad to drive additional efficiencies and synergies, Mr. D’Souza added. Recently, it introduced a re-organisation plan to mix Tata Coffee’s enterprise into TCPL.
On the outlook, TCPL mentioned it might “continue to see volume-led growth in India with a favourable young demographic profile, rising affordability, and urbanisation supported by the increase in penetration and rising share of the branded market.” The shift in preferences in direction of premium merchandise and customers making acutely aware decisions to devour trusted and more healthy merchandise, particularly publish COVID, will proceed to play out throughout the class.
“With Internet users multiplying and increased access to social media, we are also seeing the emergence of digital-only brands with a direct-to-consumer business model,” it mentioned.
Addressing shareholders within the annual report, TCPL chairman N. Chandrasekaran mentioned the corporate had made “substantial progress” over the strategic priorities for the enterprise.
“Progress was made on expanding our distribution significantly, accelerating the pace of innovation, redesigning our supply network, and driving digital transformation across the value chain.
“We are investing in these capabilities for the long run and I’m assured that these will catapult us in direction of our objectives,” said Mr. Chandrasekaran, who is also Tata Sons Chairman.
According to the Tata group head, one of the exciting opportunities before the company was to understand consumer trends and leverage them to expand portfolio and drive future growth.
There have also been several introductions across the foods and beverages portfolio, catering to consumer needs around health and wellness, taste and convenience, which helped to expand the total addressable market.
“We continued to take a position behind all these initiatives to make sure that these will act as development engines for the longer term,” he mentioned.
Source: www.thehindu.com
