The domestic market remains one of the bright spots for economic growth amid global volatility and uncertainty, Tata Consumer chairman N Chandrasekaran said in the company’s FY25 annual report, adding that strong demographics and economic fundamentals underpinned India’s growth.

“India’s direct exposure to the US is limited as its goods exported to the US are just over 2% of its GDP, one of the lowest among emerging markets,” he said, adding that the last few months had seen the global macro narrative shift amid changes in trade policy.

“The latest global growth estimates have been revised down, but India’s near-term macro-outlook remains strong with stable growth expectation in 2025, falling inflation, and ongoing monetary easing,” he said, adding that the need for strong, resilient, and visible supply chains had never been more critical.

Tata Consumer, which closed FY25 with revenue of Rs 17,618 crore, a growth of 16% over the previous year, had adopted an omni-channel strategy to tap into the divergent trends of premiumisation, health and wellness and convenience, Chandrasekaran said. This shift in strategy had come as Gen Z and millennials were expected to contribute to an increasing share of consumption in India, as much as 76% of the total consumption by 2030, he added.

“This presents an opportunity for cooking aids, packaged food, healthier and guilt-free snacking, and mini meal options, all of which we have added to our portfolio in the last few years,” he said. The company had also amplified its innovation capabilities which positioned the firm to capitalise on emerging trends, he added.

While Tata Consumer would continue to strengthen its core segments of tea and salt, the company had been taking initiatives to diversify its portfolio, Chandrasekaran added.

Growth verticals such as Tata Sampann, Tata Soulfull, Ready to Drink (formerly NourishCo), Capital Foods and Organic India had ended FY25 with over Rs 3,200 crore in revenue, accounting for 28% of the company’s India business, he said. Tata Consumer’s India business gives the company 70% of its overall revenue, with the rest coming from international markets.

Tata Starbucks, the joint venture with coffee major Starbucks, saw demand softness in FY25, the company said, pushing up losses (to Rs 135 crore), while revenue grew 5% versus last year (to Rs 1,277 crore) in the period under review.

With the FMCG landscape evolving rapidly, Chandrasekaran said that it was critical for companies to be present where ever the consumer was.

“We have continued to make strong progress in our sales and distribution expansion, with a total reach of 4.4 million retail outlets. We completed the implementation of a next-gen distributor management system to further enhance sales force productivity,” he added.

Modern trade, e-commerce and quick- commerce, Chandrasekaran said, were strong growth drivers for the company, with the firm building pharmacy and HoReCa channels too for the future.

“Quick commerce has seen exponential growth, yet physical distribution remains extremely relevant at the same time. The integration of AI and machine learning into our supply chain has further enhanced our ability to forecast demand, optimise inventory levels and unlock efficiencies,” he added.