ITC Overtakes Britannia in Packaged Foods Market

ITC Ltd. has surpassed Britannia Industries, positioning itself as the second-largest listed packaged foods company in India by sales, following Nestle. For the fiscal year ending March 31, 2024, ITC’s foods division recorded consolidated sales of ₹17,194.5 crore, according to the company’s latest annual report. This figure includes both domestic and international sales and represents a 9% increase from the previous year.

The Kolkata-based conglomerate, known for brands such as Aashirvaad atta, Bingo potato chips, and Sunfeast biscuits, now holds a dominant position in the market. Meanwhile, Britannia, another key player in the sector, reported consolidated sales of ₹16,769.2 crore for the same period, with a total income of ₹16,983.4 crore when considering its non-core food business.

Nestle India remains at the top, reporting total sales of ₹24,275.5 crore for a 15-month period ending in March 2024, due to a change in its fiscal calendar. For the 12 months ending March 31, Nestle’s local unit posted sales of ₹19,563 crore.

ITC’s growth has been attributed to a combination of strategic factors, including a 7-8% increase in atta prices, which bolstered sales of its leading Aashirvaad brand. Additionally, the company saw 10% growth in categories such as biscuits and salty snacks. ITC’s focus on expanding its portfolio with premium brands and the consistent launch of over 100 new products annually have also significantly contributed to its sales boost.

Earlier, data from NielsenIQ highlighted ITC’s rise as the largest packaged foods company in India by domestic sales, overtaking both listed and unlisted competitors, including Britannia and Parle Products, during the nine-month period up to September 2023. This trend has continued, solidifying ITC’s position in the market.

The FMCG sector of ITC posted gross sales of ₹20,966 crore in FY24, reflecting a 9.6% increase from the previous year. Despite repeated requests, ITC did not provide comments for this report.

As ITC continues to expand its market share, industry observers will be keenly watching how the competitive landscape evolves in the coming months.

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