In a determination to move towards harnessing the burgeoning potential within the Fast-Moving Consumer Goods (FMCG) sector, ITC Limited has underscored its commitment to substantial growth. The company’s FMCG brands, with an impressive annual consumer spend of Rs 29,000 crore, were highlighted as a cornerstone of this strategic endeavour. Speaking at the 112th Annual General Meeting (AGM) of ITC, Chairman Sanjiv Puri addressed shareholders virtually, elucidating the ambitious vision for the company’s FMCG arm.
Puri emphasized that ITC’s FMCG brands are making their presence felt across multiple international markets, a testament to their strong global appeal. He underscored the imminent growth prospects facilitated by the anticipated rise in per capita income among consumers. The key strategy, known as “ITC Next,” has been meticulously crafted to bolster the portfolio, concentrating on the amplification of megabrands while fortifying the company’s competitive stance.
Presently boasting an impressive portfolio of more than 25 brands, ITC’s annual consumer spend of Rs 29,000 crore underscores the substantial market traction it has gained. This figure is a testament to the strong rapport the company enjoys with consumers.
The ITC Next strategy resonates with the broader goal of preparing for the future, aligning the company to navigate global uncertainties while prioritizing competitiveness, growth, and profitability. Puri articulated that the addressable market potential for ITC’s FMCG sector stands at a substantial USD 5 trillion, indicating a promising runway for expansion.
With the comprehensive approach outlined in ITC Next, the company positions itself to take full advantage of market opportunities, demonstrating its readiness to lead across various segments. Beyond the FMCG domain, Puri discussed the demerger of the hotel business into a new entity, recognizing the potential for growth in the tourism sector.
A key facet of ITC’s strategy involves pivoting towards an asset-right approach, optimizing its hospitality portfolio, and focusing on managed properties. Additionally, the company continues to fortify its cigarette business by enhancing product quality and reinforcing its market standing.
Puri highlighted the ITC’s resilient response to challenges, particularly in curtailing illicit trade within the tobacco sector. The company’s initiatives reflect a commitment to innovation, inclusivity, and climate positivity, encapsulated within the ITC Next strategy.
The company’s blueprint for growth encompasses diverse avenues, including investments in FMCG infrastructure, digital architecture, distribution channels, agriculture value chains, and sustainable practises. The FMCG business is intricately linked with the agri-value chain, as demonstrated by the ITC MAARS project, which pledges support to 4000 farmer-producer organizations by 2030.