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India a bright spot for growth amid global volatility: N Chandrasekaran
N Chandrasekaran, chairman of Tata Consumer Products, has said in the company's annual report for FY25 that India remains one of the bright spots of economic growth amid a volatile global environment.
He said India's long-term growth is underpinned by strong demographic and economic fundamentals and the ongoing structural reforms.
'India's near-term macro outlook remains strong with stable growth expectation in 2025, falling inflation, and ongoing monetary easing. India's direct exposure to the US is limited as its goods exports to the US are just over 2 per cent of its gross domestic product (GDP), one of the lowest among emerging markets,' he said in his address to the company's shareholders.
He added that consumer trends like premiumisation, health & wellness, and convenience are gathering pace and quick commerce has seen exponential growth. But physical distribution remains extremely relevant at the same time.
He also said in today's uncertain and complex global environment, companies need to stay agile and dynamic.
'The need for strong, resilient, and visible supply chains has never been more critical. Emerging technologies such as Gen AI, robotics, and blockchain are not just buzzwords but essential tools. The green energy transition globally is making notable progress, and this transition is driving substantial investment in technology, electric mobility, renewable power, hydrogen and sustainable fuel,' he added.
Chandrasekaran said that companies must include these trends in their strategies and foster a culture of agility and continuous improvement.
He added that 2025 started on a positive note with expectation of stable global growth, falling inflation and tailwinds from lower interest rates.
'However, this global macro narrative shifted with rising concerns around global growth and inflation as policy uncertainty rose sharply with dramatic shifts in trade policy. The latest global growth estimates have been revised down,' he added.
While talking about the company, Chandrasekaran said, 'At Tata Consumer, we have adopted an omnichannel strategy to tap into this large and growing opportunity. Gen Z and Millennials are expected to contribute to an increasing share of consumption; by some estimates, 76 per cent of the total consumption by 2030.'
He said that this presents an opportunity for cooking aids, packaged food, healthier & guilt-free snacking, and mini meal options. The company has added all of these to its portfolio in the last few years.
'The innovation capability we have built along with our portfolio transformation initiatives over the past few years position us well to leverage these emerging trends,' Chandrasekaran said.
On the fast-moving consumer goods (FMCG) space, he believes that the landscape is evolving rapidly and it is critical for brands to be present where the consumer is.
'In India, we continued to make strong progress in our sales and distribution expansion, with a total reach of 4.4 million retail outlets. We completed the implementation of a next-gen distributor management system to further enhance sales force productivity. Modern trade and e-commerce/quickcommerce continue to be strong growth drivers, and we have started building pharmacy and hotel, restaurant, and catering (HoReCa) channels,' he added.
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