June 29, 2018
Aashirvaad atta, Sunfeast cookies, and Bingo snacks are helping to bond ITC’s credentials on the Indian packaged foods on upward lead.
In FY17, packaged food sales were at Rs. 8,036.4 crore, but the revenues are not comparable due to the transition to the GST regime, in which sales are calculated net of GST. Earlier calculations included the impact of the excise levy.
The company’s packaged foods division now accounts for 76% of the total sales of FMCG business. The business also clocked gross profit of Rs. 164.1 crore in FY18, driven by the food business, with other categories yet to break even. ITC continues to be the third largest listed packaged foods company in India: Nestle (Rs. 9,472.5 crore domestic sales in CY17) leads the table, followed by cookies maker Britannia (standalone sales of Rs. 9,380.2 crore in FY18). ITC has ambitions to establish itself as India’s biggest packaged foods company.
In foods, ITC is the market leader in packaged atta, premium cream biscuits, and the bridges segment in snacks. It is the second largest in instant noodles and the third in packaged juice.
By way of consumer spend that includes taxes, Aashirvaad is largest food brand at more than Rs. 4,000 crore, followed by Sunfeast at more than Rs. 3,500 crore, and Bingo at more than Rs. 2,000 crore. In FY18, ITC had entered into packaged fruits and vegetables, blended spices and frozen prawns, and is betting on the dairy business as the next big growth driver.