Tata Consumer Products targets premium tea segment to boost growth, regain market leadership 

INDIA – Tata Consumer Products Ltd (TCPL), the fast-moving consumer goods arm of the Tata Group, has announced plans to focus on premiumizing its tea portfolio to accelerate growth and unlock value for shareholders.  

TCPL, formerly known as Tata Tea, markets orthodox and CTC tea under multiple premium and economy brands in India. 

Puneet Das, president of packaged beverages – India and South Asia, stated that tea remains the core of TCPL’s packaged beverages business, while coffee, though still a smaller category, is expanding rapidly.  

He said the company sells packaged beverages through both general trade and e-commerce channels, with approximately 80 percent of sales originating from general trade. 

Das highlighted West Bengal as one of the company’s largest markets for loose tea, including premium and CTC variants. He noted that bulk tea prices surged last year due to reduced production, pressuring margins across the packaged tea sector.  

While TCPL passed some of the cost increases to consumers, it also absorbed a significant portion, which impacted profitability. However, margins have begun to recover and are expected to normalize by the third quarter. 

According to Informist Media, Das told reporters in Kolkata that TCPL is aiming to reclaim its volume leadership in the tea market, which it ceded to Hindustan Unilever in 2017-18.  

He said the gap between TCPL and HUL is now less than one percent in volume terms and around 4-5 percent in value terms. 

TCPL recently introduced premium offerings, including a green tea infused with L-Carnitine, an amino acid linked to fat metabolism. The company also brought cricket legend Sachin Tendulkar onboard as an ambassador for Organic India, a brand it acquired in 2024. 

Management expects total value growth of 6-8 percent in the tea segment this fiscal and is confident of maintaining profit margins near 30 percent by the third quarter of FY26. 

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