Closely monitoring near-term trends to see impact on consumer behaviour: Tata Consumer Products MD

‘Mitigating impact of supply-chain stress, high energy prices and geopolitical tensions requires strategic focus, agility and efficient execution’

Terming the current macro environment as ‘highly volatile’ due to geopolitical tensions, supply-chain stress and inflation, Tata Consumer Products Ltd. (TCPL) MD and CEO Sunil D’Souza said the company was closely monitoring near-term trends to see how these economic headwinds affected consumer behaviour.

The company would be monitoring the global situation and inflation closely and put in ‘practical and adequate’ mitigating measures, Mr. D’Souza said in the latest annual report of the Tata group’s FMCG arm.

Global supply-chain stress and higher energy prices had led to widespread inflation, and geopolitical strains had further exacerbated the situation. Mitigating the impact required strategic focus, agility and efficient execution, he said.

"On a positive note, we are in the staples business and hence relatively better positioned to ride out these speed bumps. We also have a plethora of initiatives to drive growth and create efficiencies that can enable cost optimisations," Mr. D'Souza added.

These factors give lend the company confidence to be able to deliver profitable growth notwithstanding the impact of the operating environment, he said.

Talking about changes in consumer behaviour, Mr. D'Souza said awareness levels were very high. There were some secular trends shaping the consumer landscape in India with rising disposable incomes, increasing urbanisation, and the democratisation of the Internet.

These trends were leading to consumers seeking better quality and trusted brands with increased convenience. The pandemic had further accelerated digital adoption and had also brought health and wellness ‘front and centre’ for consumers, he pointed out.