Tata Consumer Products surpasses US$208.96M revenue 

INDIA – Tata Consumer Products has crossed Rs 20,000 crore (US$208.96M) in annual revenue, marking a key milestone in its evolution from a tea-focused business into a diversified consumer goods company. 

Chairman N. Chandrasekaran said the achievement represents the completion of the company’s transformation from its origins as a tea joint venture with British firm Finlay into a multi-category fast-moving consumer goods group. 

According to Chandrasekaran, Tata Consumer has expanded its presence in packaged foods, pantry staples and ready-to-drink beverages through a combination of organic growth and acquisitions. These newer businesses now contribute more than 30% of the company’s India portfolio. 

He told shareholders that recent acquisitions, including Capital Foods, Soulfull and Organic India, are expected to deliver annual growth of around 25%. The three businesses currently operate at gross margins of 48%, compared with 35-36% for the rest of the portfolio. 

The company launched around 80 products during FY26, with innovation contributing 4.5% of total sales against a target of 5%. Research and development spending stood at about Rs 70 crore, representing less than 0.5% of revenue, although Chandrasekaran indicated that investment in the area would increase. 

Capital expenditure typically accounts for 2.4-2.5% of turnover, and together with R&D spending, represents approximately 3% of revenue. Capex is expected to rise to Rs 700 crore in FY27, supported by investment in a new tea extraction facility. 

“Innovation and acquisitions will help drive growth and margin improvement,” Chandrasekaran said, outlining the company’s strategy for its next phase of expansion. 

Tata Consumer Products has set a medium-term target of achieving EBITDA margins of around 17%, with a longer-term ambition of exceeding the 20% mark. The company said the objective reflects its focus on higher-value products, improved operational efficiency and portfolio optimisation. 

Meanwhile, Tata Starbucks, the company’s joint venture with Starbucks, achieved positive EBIT and EBITDA in FY26 and expanded its network to 502 stores across India. 

Chandrasekaran said the joint venture plans to open between 50 and 100 stores annually, adding that both partners believe the business could eventually grow to 8,000 stores in the Indian market. 

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