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Indian Middle Class To Swell From 30% To 50% by 2030; Presents Opportunities In Consumer Business: Tata Chairman

Updated: Jun 14, 2024 05:32:59pm

Indian Middle Class To Swell From 30% To 50% by 2030; Presents Opportunities In Consumer Business: Tata Chairman

New Delhi, Jun 14 (KNN) N. Chandrasekaran, chairman of Tata Consumer Products Ltd (TCPL), addressed shareholders at the company's annual general meeting on Thursday.

He highlighted the significant growth potential in India's expanding middle class, which is projected to increase from approximately 30 per cent of the population currently to 50 per cent by 2030.

"This burgeoning consuming class represents a major opportunity," stated Chandrasekaran. He cited India's favourable demographics, including a young population, rapid urbanisation, rising disposable incomes, and increasing aspirations, as positive indicators for the overall fast-moving consumer goods (FMCG) sector in the country.

Acknowledging the global economic volatility driven by geopolitical tensions, Chandrasekaran noted that the baseline forecast projects the world economy will continue growing at 3.2 per cent during 2024 and 2025.

India, however, remains a strong growth market, with an anticipated growth rate of 8.2 per cent in the 2023-24 fiscal year.

Chandrasekaran expressed confidence in TCPL's ability to navigate this evolving macroeconomic landscape and capitalise on value creation prospects. "India's consumer market presents a long-term structural opportunity," he affirmed, emphasising TCPL's readiness to seize this potential.

The chairman highlighted the company's transformation journey to become a best-in-class FMCG player, with innovation revenue growing fivefold since fiscal 2021. TCPL now boasts a 5 per cent innovation-to-sales contribution, considered industry-leading.

Chandrasekaran also cited progress in digital transformation, including the launch of a new go-to-market platform aimed at revamping sales and distribution processes.

Additionally, TCPL's joint venture with Starbucks opened 95 stores in the last financial year, the highest number since inception.

"The simplification agenda continued to make progress," he stated, noting the completed merger of Tata Coffee and ongoing efforts to consolidate international legal entities.

Responding to shareholders' queries, Chandrasekaran revealed that the company's capacity expansion plans for fiscal 2025 would be more substantial, with a planned capital expenditure of Rs 785 crore, including a significant Rs 400 crore investment in a new plant in Vietnam.

(KNN Bureau)


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