New Delhi: Tata Consumer Products Limited (TCPL) sees ‘digital transformation as a key driver’ for growth of the company and it is strengthening capability in this area, according to the company’s annual report. The Tata Group firm expects a long term shift in consumer behaviour due to the coronavirus pandemic, while in short term an increase at-home consumption with a reduction in orders for take-out or deliveries is expected.
TCPL expects a larger play in the foods and beverages businesses. “We see digital transformation as a key driver for growth and we are strengthening our capability in this area, including a digital platform for commodity buying, enabling the entire supply chain from demand planning to procurement and embedding digital technology and decision-making at the frontline of the sales organisation,” said TCPL Managing Director and CEO Suni D’Souza in the company’s annual report for 2019-20.
Recently, the company has tied up with several delivery providers and e-commerce partners to enable direct delivery to consumers.
“We are innovating with new marketplace models. We have tied up with delivery providers and e-commerce partners to enable direct delivery to consumers. We are also accelerating our digital agenda to take advantage of the new world realities,” he said According to him, there have been significant changes in consumer beliefs, habits and buying patterns during the pandemic and the recent lockdowns.
TCPL owns popular brands like Tata Salt, Tata Tea, Tetley, Eight O’ clock and Himalayan Water. On the outlook, the company said there will be a stronger focus on quality and hygiene – resulting in consumer preference shifting from unbranded to branded options. There will be higher growth and demand of staple products such as salt, pulses, tea and coffee – also part of essential commodities- for in-home consumption. Besides, there would be a rise of consumers who are more price and value-conscious in their choices, given the uncertainty of the COVID-19 pandemic.
“We are focusing on strengthening our ready-to-drink beverages portfolio. We are in the process of acquiring PepsiCo’s stake in NourishCo Beverages Limited, a 50:50 JV between the two companies. We will look to scale up NourishCo’s capabilities and footprint further and build a differentiated portfolio in this segment,” he added.
On Tata Starbucks, TCPL said by the end of May 2020, it had 60 stores opened for takeaway and deliveries in 10 out of the 11 cities we are present in.