The trend of premiumisation has been on the rise across a range of sectors in India. Amid a changing middle class in the country, customers in small towns and cities are also showcasing an increasing appetite for premium products. Vikas Gupta, who is the global head for research and development at fast moving consumer goods major Tata Consumer Products, sat down with DH’s Shakshi Jain to discuss the mega trend, contribution of R&D to sales of the company, and more.
Edited excerpts.
What has been your department’s contribution to the company’s top line?
We have achieved industry best in class 5 per cent innovation to sales contribution since our journey started in 2020. The percentage contribution has seen 5X growth over the last 3 years over a growing revenue base. We would like to maintain our position of driving innovation as a strategic pillar of Tata Consumer’s growth journey.
How many patents and publications have been filed from your end in the last three years?
We have filed 7 patents in the last three years in India and some of them in international markets.
What is the break up between premium versus mass consumer products at Tata Consumer Products?
Our innovation focus across consumer mega trends – premiumisation, health and wellness and convenience has been core to new launches in the last three years. We have consistently increased the premiumisation play across product categories and are looking at a 50:50 split among premium and mass product launches in FY24.
How has your R&D allocation increased year-on-year?
One of the 6 strategic pillars of growth for Tata Consumer Products is Innovation. In our endeavour to drive ‘fit for future’ R&D, we have created state of the art facilities across three locations in India and invested into future capabilities. We have expanded our teams and are investing not only in infrastructure but Skill up for R&D in technical spaces. We stay committed to investing in innovation and R&D. Over the last 3 years, , there has been a 10-15 per cent year-on-year increase in spend allocations for development budgets.