ITC Foods is doubling down on strategic acquisitions to fuel growth in its food business, with recent takeovers like Yoga Bar and 24 Mantra Organic setting the tone for its expansion into premium, health-focused categories. The move aligns with the company’s broader ‘ITC Next’ strategy, which positions value-accretive acquisitions as a core pillar of long-term growth.
Hemant Malik, Executive Director at ITC, said the company is focusing on fast-tracking entry into high-growth segments like health, nutrition, indulgence, and convenience. “We are creating offerings for the health-seeking new India, growing per capita India, Gen Z, and consumers seeking richer experiences,” Malik noted.
Despite facing headwinds such as slow urban demand, high inflation, and weak household incomes, ITC is leveraging both brownfield and greenfield investments to scale operations. During FY 2024–25, the company navigated inflationary pressures on inputs like edible oil, wheat, cocoa, and packaging materials through internal cost controls, price adjustments, and a stronger push towards premiumisation.
That strategy appears to be paying off. ITC’s packaged foods revenue jumped nearly 28% year-on-year to ₹21,982 crore in FY25. Currently, premium products make up about 30% of ITC’s food portfolio, and Malik expects this segment to grow at “at least twice the pace” of the broader FMCG business.
Health-centric offerings, in particular, are emerging as a major driver. Malik revealed that this segment is growing at “400 times” the rate of the rest of the food portfolio. “Many of these products come with premium pricing, and demand is no longer confined to metro cities. Premium consumers are spread across the country,” he added.
With a significant portion of India’s food market still unbranded, ITC sees ample room for expansion through innovation and targeted acquisitions. The company is actively building a product pipeline tailored to evolving consumer preferences across life stages and cohorts, reinforcing its intent to lead in a fast-changing food landscape.