N Chandrasekaran, chairman of Tata Consumer Products Ltd (TCPL), told shareholders at the company’s annual general meeting (AGM) on Wednesday that the world is being reshaped by geopolitical shifts, supply-chain realignments, energy transitions, rapid advancements in artificial intelligence (AI), and climate events.
He said that in this environment, businesses have been prioritising resilience, productivity and trust-based decision-making.
TCPL is leveraging AI to accelerate product development cycles, capture emerging consumer trends, improve demand forecasting, optimise supply chains and drive innovation.
He told shareholders that the year began with positive developments, including the India-European Union (EU) trade agreement and the interim India-US trade deal. However, in early March, the start of the West Asia crisis brought rising concerns about stagflation — falling output coupled with rising inflation.
“India remains the fastest-growing major economy, led by its demographic strength, expanding digital infrastructure and rising aspirations. It continues to offer strong growth and a large market,” Chandrasekaran said at TCPL’s AGM.
Speaking about domestic consumption patterns, he said they are evolving. Changing lifestyles, new retail formats and digital commerce are transforming how Indians shop and consume.
“This presents a significant opportunity for companies that can combine consumer-first thinking with agile innovation, execution excellence and trusted brands,” he said.
He said TCPL has completed its evolution from a tea-and-salt business into a multi-category fast-moving consumer goods (FMCG) company.
The sector is witnessing new sales channels led by the rapid expansion of quick commerce, which continues to outpace traditional retail. TCPL said new channels now contribute more than 35 per cent of its India business. However, Chandrasekaran said traditional retail remains the backbone of its go-to-market efforts.
On Starbucks’ expansion plans in India, Chandrasekaran told investors that the coffee chain has 502 stores and plans to add around 50-100 stores annually.
He sees Starbucks as a high-potential business. “We have had discussions with our partner, and we think eventually the company can have 8,000 stores in India,” Chandrasekaran said while answering shareholders’ questions.
“This year we have made both EBITDA and EBIT positive. Now, as we grow, we want to improve margins and start adding to profitability,” he added.
TCPL’s goal is to expand its portfolio and product mix while balancing premiumisation and volume growth.
Chandrasekaran said, in response to a shareholder’s question, that India is both a mass market and a premium market, with multiple consumer segments.