Tata Consumer Products is targeting both volume and price-led growth in FY27 despite commodity inflation and uneven demand conditions, company chairman N Chandrasekaran said at the 63rd annual general meeting (AGM) of the firm on Wednesday.
Addressing the virtual AGM, Chandrasekaran, who also chairs Tata Sons, the holding company of the Tata group, told shareholders the company would increase its capital expenditure by over 16% in FY27 to Rs 700 crore from Rs 600 crore in FY26. The additional Rs 100 crore would be utilised in setting up a new tea manufacturing facility in India with a capacity of 2,000 metric tonne in FY27, he said.
In FY26, Tata Consumer crossed the Rs 20,000 crore revenue milestone, with a 15% year-on-year topline growth and 20% on-year growth in net profit to Rs 1,547 crore. Growth was broad-based across India, international and non-branded businesses, Chandrasekaran said.
Tata Consumer, he said, would continue looking at both organic and inorganic opportunities as it sought to tap into the growing potential of the domestic fast-moving consumer goods market. “Tata Consumer is well-positioned to benefit from India’s consumption story,” he added.
Describing India as a “bright spot in the world”, Chandrasekaran said that the country remained among the fastest-growing economies globally. “This is primarily led by demographic strengths, and expanding digital and physical infrastructure,” he added.
He noted that while FY26 began with positive developments, including the signing of the landmark EU trade agreement and the interim India US trade deal, challenges grew with the West Asia conflict in March. “The start of the West Asia crisis has brought a lot of concerns about stagnation, falling output, coupled with rising inflation. India continues to offer a large market and robust growth opprortunities,” he said.
Commenting on global trends, he said, “The world today is being reshaped by geopolitical shifts, supply chain disruptions, and realignments, energy transition, and rapid advancements in AI.
“In such an environment, businesses are increasingly prioritising resilience, business continuity, productivity and trust-based decision-making over pure efficiency, he added.
On changing consumer preferences, Chandrasekaran said, “Indian consumers and their consumption patterns are constantly evolving. Lifestyles are changing. New retail formats are emerging.” He added that Tata Consumer was well placed for growth as digital commerce is changing the way consumers buy.