Strap: The FMCG business comprises branded packaged foods, personal care products
KOLKATA, July 11 (PTI): Diversified conglomerate ITC Limited Tuesday said it is focussed on scaling up its FMCG business anchored on strong growth platforms and future ready portfolio.
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Categories characterised by low household penetration offer significant headroom for long-term growth, the company said in its annual report released on Tuesday.
The company’s addressable market expansion potential is amongst the highest in the Indian FMCG space.
The annual report said that FMCG businesses continue to make strategic investments in building categories for the future.
The company is pursuing ‘value accretive’ acquisition, joint venture and collaboration opportunities towards accelerating growth and value creation, it said.
The FMCG business comprises branded packaged foods, personal care products, education and stationery products, incense sticks and safety matches. It generated a revenue of Rs 19,000 crore in the financial year 2022-23, representing an annual consumer spend of Rs 29,000 crore.
Regarding the FMCG-cigarettes business, the company said after two years of disruptions due to the pandemic, the legal industry recovered during the last fiscal.
Stability in taxes on cigarettes backed by deterrent actions by the enforcement agencies enabled the legal cigarette industry to partially claw back volumes from illicit trade, according to ITC.
The company has over the years made significant investments in setting up state-of-the-art integrated consumer goods manufacturing and logistics facilities (ICML) in close proximity to large demand centers.
ITC recently commissioned a new ICML at Khordha in Odisha, taking their total number to 11, the annual report said.
The company has identified exports as a new growth vector. The FMCG business expanded its export footprint spanning over 60 countries, with the production linked incentive scheme providing filip to ITC’s exports across biscuits, cakes, snacks, dairy and ready-to-eat categories.
On hotels business, the report said ITC continues to leverage the ‘asset-right’ strategy with 120 properties and 11,500 rooms. The segment contributed around Rs 2585 crore in last fiscal with EBITDA at Rs 831 crore.
ITC is also making interventions to combat climate change by promoting ‘climate smart agriculture’, the report said. The programme has benefitted over seven lakh farmers in 17 states.
Green house gas emissions of select crops have been reduced by up to 66 per cent and net returns of farmers rose up to 90 per cent from 2016 to 2021.
According to the ITC report, the company continues to make significant progress in improving the circularity of waste generated in operations.
