Cigarettes-to-hotels conglomerate ITC, which has been strengthening its FMCG portfolio at home, is now looking at aggressively expanding it to overseas markets as well, chairman and managing director Sanjiv Puri said at the company’s 111th annual general meeting (AGM) on July 20.
The home of popular brands like Aashirvaad, Sunfeast, Bingo and Yippee, ITC has gone big on its fast-moving consumer goods (FMCG) business in recent years by launching new products, expanding distribution and entering new categories.
“As we achieve scale for your company’s FMCG portfolio, it is also our aspiration to take these world-class brands to overseas markets. ITC has established distribution arrangements abroad enabling appreciable progress of exports of ITC’s brands to over 60 countries,” Puri said.
“Over time, such exports will make a substantial contribution to the growth of your company’s value-added FMCG portfolio.”
Despite the challenging environment of the last two years, it clocked a 25 percent growth in its FMCG business (in the period, and reached a turnover of nearly Rs 16,000 crore in FY22, the company said.
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“Despite the unprecedented inflationary headwinds, your company sustained EBITDA margins last year and also improved margins by 650 basis points over the last five years,” Puri said while addressing shareholders.
ITC launched 110 products in the FMCG segment in FY22 and the company has brands across staples, confectionaries, and ready-to-cook segments.
“The carefully selected portfolio, with substantial headroom to grow, is estimated to have a total addressable market potential of Rs 5,00,000 crore by 2030, which is amongst the highest in the Indian FMCG space,” said Puri.
Expanding portfolio
ITC, during the year, extended its staples brand Aashirvaad to categories like organic foods, frozen breads and vermicelli, Sunfeast beyond biscuits to cakes and Savlon to surface disinfectant sprays.
“ITC is also investing in categories of the future with some segments being progressively scaled up such as natural-action Nimyle floor cleaners and ITC Master Chef frozen snacks.
"We continue to incubate new engines of growth to create beachheads in areas that hold promise for the future. In addition, value-accretive acquisitions like Sunrise spices and investments in tech-enabled startups like Mother Sparsh and Mylo, in fast-evolving spaces like mother and childcare, will provide new vectors to accelerate growth,” Puri said.
During the year, ITC also expanded its distribution and its products were now available at 70 lakh outlets across the country.
Puri said the company’s traditional cigarettes business also recovered during the year and was now ahead of the pre-pandemic levels.
“To counter the menace of illegal cigarettes and reinforce market standing, your company will continue to fortify the product portfolio with focus on innovation, premiumisation and superior on-ground execution,” he added.
At 1.35 pm, ITC was trading 1.12 percent higher at Rs 297.90 on the National Stock Exchange.
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