Tata Consumer Products has said it will continue to look at acquisitions to become a large player in the packaged foods business.
The company recently acquired Kottaram Agro Foods, which houses the brand Soulfull, and Tata SmartFoodz, which have food products in the premium food space.
Under the Soufull, now rebranded as Tata Soulfull, the company sells packaged healthy snacks and cereals. Tata SmartFoodz has heat-to-eat food products ranging from pastas and noodles to biryanis. “Our vision is to become a really large player in the packaged foods business and within the packaged foods business. Given that it (packaged foods segment) is such a fast-evolving space, we will be happy to look at new categories as well,” said Deepika Bhan, president, packaged foods (India), Tata Consumer Products. “At this point, Tata Consumer has the wherewithal to be able to use the cash we have to acquire. We are okay to look at anything that’s interesting. We are happy to look at an inorganic way to grow. As we make those decisions, we will be conscious about what is building complementary strength on the table,” Bhan added.
Bhan said the consumers who are comfortable paying a certain premium for packaged goods are accessing the e-commerce channel. She said Tata Consumer Products, which sells staples like pulses and spices under the Tata Sampann brand, is the number one player in the vital staples of e-commerce. Tata Consumer’s India business sees more than 7 per cent of its sales come from e-commerce. Bhan said the company will take measured price increases, but didn’t elaborate on the extent to which the hike would be taken.
Source: Business-Standard