AI in FMCG: TCPL's Strategy for Growth

New Delhi, Jun 18 (PTI) Artificial Intelligence is rapidly transforming almost every function in the FMCG sector and investments in digital ecosystem will help Tata Consumer Products operate with greater precision and speed, a senior company official said on Wednesday.

Stressing the importance of Artificial Intelligence (AI), TCPL CFO P B Balaji while chairing the company's AGM, said the companies that embed AI deeply into operations will lead the next phase of value creation.

Artificial Intelligence is also rapidly transforming every function, right from demand forecast to inventory optimisation and pricing resilience to pricing intelligence, Balaji said, adding that digital first marketing and hyper-personalisation are rewriting the brand playbook in the FMCG sector.

TCPL, the Tata group FMCG arm, is "leveraging these trends with a bold strategy, disciplined execution and ambition to build a future-ready FMCG powerhouse."

"Our investments in AI, talent, and the digital ecosystem will help us operate with greater precision and speed," he said, adding, "We have built a strong foundation, which has been shaped by the values of the Tata Group, and a portfolio of purposeful brands, a resilient operating model."

Now, consumers are becoming more health-conscious, seeking better products from you and organic options. There is a clear trend of "premiumisation", which is happening across the vertical, even in staples, he said.

TCPL, which was formed five years ago after merging the consumer products business of Tata Chemicals with Tata Global Beverages, has undergone significant transformation. It operates across multiple categories and brands "that touch millions of lives on a daily basis."

At a time when global growth is expected to moderate in the near-term, India remains one of the fastest-growing large economies in the world, and there are significant shifts in consumer behaviours and business models.

With factors such as growing urbanisation, time constraint, consumers are seeking convenience, leading to rising demand for cooking aids, ready-to-drink beverages and snacking.

In revenue terms, TCPL has grown at an annualised rate of 13 per cent, EBITDA has grown at 14 per cent and net profit at 23 per cent. "This fiscal year, we continued this momentum with a revenue growth of 16 per cent, EBITDA growth of 8 per cent and despite cost-input inflation, the businesses remain strong," Balaji added.

Meanwhile, TCPL Managing Director & CEO Sunil D'Souza said TCPL is now among the top 10 FMCG companies in India. TCPL's growth business includes - Tata Sampann, RTD, Tata Soulfull, Capital Foods and Organic India, which are now 28 per cent of its India business.

TCPL's revenue from e-Commerce, including quick-Commerce for FY25, grew by 57 per cent.

On innovation, D'Souza said it is the lifeblood of any FMCG business, and TCPL focused on delivering a top-notch innovation to sales ratio of 5 per cent. "We have had a launch, one launch every nine days in the last year," he said.

In FY25, TCPL's Revenue from Operations was at Rs 17,618 crore, up 16 per cent.

The AGM started 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 are no consolation right now, but our thoughts are with the families and the loved ones of the people who died and were injured in the crash."

The AGM also paid homage to Ratan Tata, former Tata Group and Tata Sons chairman, who passed away in October last year.