‘Will continue to look for acquisition opportunities’
NEW DELHI: Tata Consumer Products Ltd (TCPL) will continue to look for the right acquisition opportunities in different categories to fuel its growth, the company’s chairman N Chandrasekaran said on Monday.
Responding to shareholders’ queries in the annual general meeting of the company, Chandrasekaran, who is also the chairman of Tata Sons—the holding firm of the Tata group— said TCPL would focus on leveraging its product portfolio, expanding distribution and product innovation and entering new categories, while supporting both organic and inorganic growth opportunities in future.
“We also believe in inorganic expansion and yes inorganic expansion is one of the key strategies for the company. The cash in the company will be used definitely for the right inorganic growth opportunities,” he said.
Replying to another query on whether there is going to be acquisition in the water segFoods, ment, Chandrasekaran said, “Yes, we will continue to look for any expansion opportunities, both on the water side and also on the food and beverage side and into completely new categories, which may also come through acquisitions.”
Last year, TCPL acquired Tata SmartFoodz Ltd (TSFL) from its group firm Tata Industries for a cash consideration of ₹395 crore. Besides, it had also acquired Soulful business from Bengaluru-based Kottaram Agro engaged in the business of healthy breakfast cereals and millet-based snacks, to expand its product portfolio.
When asked about the company’s capex plan for the current fiscal, he replied: “Last year our capex was ₹250 crore and for FY23, this is going to be ₹361 crore, of which the project’s work will be about ₹161 crore.”
Stating that the company is on a growth path, he said, “It is better for the company to focus on leveraging the product portfolio and expanding the distribution and continue to innovate product portfolio and enter new categories. We will support both organic and inorganic growth opportunities.”
Elaborating on TCPL’s strategy, he said, “The company is focused on expanding the distribution, expanding product portfolio and time and bring in new categories and a lot of focus in the domestic market.”
On the international market, he said the focus will be on US, Canada and UK and to “rationalise our presence in all the other markets”.