Now Reading: Tata Consumer may take price hikes if cost pressures persist
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Tata Consumer may take price hikes if cost pressures persist
Tata Consumer Products Ltd (TCPL) expects to maintain double-digit revenue growth in FY27, driven by healthy consumer demand and volume-led expansion across categories. MD & CEO Sunil D'Souza said the company may…
Tata Consumer Products Ltd (TCPL) expects to maintain double-digit revenue growth in FY27, driven by healthy consumer demand and volume-led expansion across categories. MD & CEO Sunil D'Souza said the company may take 'calibrated' price hikes if elevated commodity, packaging and energy costs persist. TCPL reported a 12% rise in revenue and 29% increase in net profit in the June quarter.
The company has so far avoided broad-based price increases despite pressure from higher tea, coffee, edible oil, packaging and fuel costs. In salt, TCPL has already raised prices by Rs 2 per pack from Rs 30 to Rs 32 due to higher imported coal costs and energy expenses. For tea, selective price hikes have begun as tea prices rose 7-10% in recent months. Depending on the category, price increases could range from zero to 4-6%.
TCPL's growth businesses, including Tata Sampann and Capital Foods, grew 47% in the June quarter and now contribute nearly 30% of the India business. The company expects these to reach about 45% in three to four years. D'Souza identified persistently high petroleum prices as the biggest risk to consumer demand recovery.
Indian Opinion Analysis
TCPL's cautious pricing strategy reflects the balancing act FMCG companies face as input costs rise but consumer spending is still fragile. The company's focus on volume-led growth is notable because price-driven growth can erode market share in price-sensitive categories like salt and tea. With growth businesses already contributing nearly a third of India revenue, TCPL's bet on premium brands like Organic India and Soulfull positions it to capture health-conscious consumers. The real test will be whether TCPL can pass on costs without losing ground to regional rivals, especially in tea, where local brands often undercut on price. Watch for the September quarter margin data to see if cost pressures force wider price hikes.
Source: retail.economictimes.indiatimes.com
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