Artificial intelligence (AI) is bringing about rapid change in the fast-moving consumer goods (FMCG) sector, pushing companies to increase their digital investments, Tata Consumer’s non-executive, non-independent director PB Balaji said on Wednesday.
He was speaking at the company’s 62nd annual general meeting (AGM) held virtually on Wednesday. Balaji, 54, was the AGM chair in the absence of Tata Consumer chairman N Chandrasekaran.
Addressing shareholders, Balaji said that companies that embedded AI deeply into their operations would lead the next phase of growth and value creation. “At Tata Consumer, we are leveraging these trends, with a bold strategy, disciplined execution and an ambition to build a future-ready company.” Investments in demand forecasting, inventory optimisation and pricing intelligence were being increased as part of the company’s broader focus on AI, talent and digital ecosystem to operate with greater speed and precision, he said.
Tata Consumer Products, which was formed five years ago after merging the consumer products business of Tata Chemicals with Tata Global Beverages, closed FY25 with a revenue of Rs 17,618 crore and a net profit of Rs 1,287 crore, a growth of 16% and 6%, respectively, versus last year.
Balaji stressed that the company had no plans to enter dairy, biscuits and edible oils, and the focus remains on the broader food market, where cooking aids, healthier and guilt-free snacking and mini meals were gaining traction as trends.
“With factors such as growing urbanisation, time constraints, consumers are seeking convenience, leading to rising demand for cooking aids, ready-to-drink beverages and snacking,” he said.
Balaji said the company, which had maintained its revenue momentum in a challenging environment, had adopted an omni-channel strategy to tap into the divergent trends of premiumisation, health and wellness and convenience. This shift in strategy had come as Gen Z and millennials were expected to contribute to an increasing share of consumption in India, he added.
At a time when global growth was expected to moderate in the near term, India remained one of the fastest-growing large economies in the world, and there were significant shifts in consumer behaviour and business models, Balaji said.
He also said that while the company had significant gun powder from an inorganic perspective, it would focus on organic growth and look at only “bolt-on” acquisitions to fill white spaces in its portfolio.
“In FY25, we had 41 launches, with one launch every nine days in the year,” he said, adding that the company was stepping up its focus on innovative products to stay competitive. The innovation to sales ratio for Tata Consumer had crossed 5% for the year, he added.
The AGM began with members observing a minute’s silence to pay their respects to the Ahmedabad plane crash victims. Terming it as “one of the darkest days in the Tata Group‘s history”, Balaji said words were no consolation at the moment.
“Our thoughts are with the families and the loved ones of the people who died and were injured in the crash. We are offering support to everyone affected,” he said.