Tata Consumer Products Limited (TCPL) is set to increase its advertising spend in the new financial year to enhance the visibility of its recently acquired brands—Ching’s Secret and Organic India. This strategic move aligns with the company's goal to expand market reach, strengthen brand recall, and drive sales growth across both urban and rural markets.

Ajit Krishnakumar, Chief Operating Officer of TCPL, confirmed this plan in an exclusive interview with Moneycontrol on March 31, 2025. He emphasized that the higher ad spend is necessary to support the company's premiumization strategy and drive growth in the fast-moving consumer goods (FMCG) sector.

Investment in Branding and Expansion Strategy

In FY24, TCPL's advertising and sales promotion budget stood at ₹977.69 crore, marking a 12.87% increase over FY23. The company expects further growth in marketing investments in FY25, particularly for brands like Ching’s Secret, which operates in the high-advertising desi Chinese food category.

Krishnakumar highlighted that strong advertising is crucial to make these brands "nationally available" and drive their market penetration. He also hinted at further acquisitions, with a focus on adjacent categories that complement TCPL’s existing product portfolio.

Acquisition of Capital Foods and Organic India

TCPL acquired Capital Foods (Ching’s Secret, Smith & Jones) and Organic India in January 2024 for a total enterprise value of ₹7,000 crore. These acquisitions strengthen TCPL's pantry platform, expanding its core portfolio to include health and wellness products alongside its existing tea, coffee, and packaged foods business.

Ching’s Secret, a market leader in the desi Chinese food category, is widely known for its noodles, sauces, soups, and seasonings. Organic India, on the other hand, specializes in organic wellness products such as tulsi tea, herbal infusions, and dietary supplements.

Krishnakumar emphasized that advertising for Ching’s Secret will increase significantly, given its positioning as a high-branded category requiring strong market recognition.

Premiumisation to Counter Urban Demand Slowdown

With the urban FMCG market facing a slowdown, TCPL is adopting a premiumisation strategy to drive growth. This involves launching high-value, premium variants across its product categories to target affluent consumers.

Krishnakumar stated, "Premiumisation is the need of the day. You will see more high-end product variants across all our offerings." This approach aligns with the broader industry trend where FMCG companies are shifting focus to higher-margin premium products amid fluctuating demand in mass-market segments.

Future Outlook: More Acquisitions and Brand Expansion

TCPL currently has a retail reach of 1.5 million stores across India and plans to expand further through strategic acquisitions in categories that enhance its existing value chain. The company aims to strengthen its brand presence, improve distribution, and capitalize on emerging consumer trends.

With a ramped-up advertising budget, premiumisation strategy, and continued focus on acquisitions, Tata Consumer Products is poised for strong growth in the FMCG space in the coming years.

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