According to ITC’s latest annual report, the FMCG business of the diversified conglomerate has experienced a notable 21 percent increase in annual consumer spending, reaching nearly INR 29,000 crore during the fiscal year 2022-23. Within the FMCG sector, ITC operates with a portfolio of 25 domestic brands.
The company calculates annual consumer spend by adding up the total amount spent by consumers on purchasing the company’s goods. This includes the net sales turnover generated by the company’s brands, as well as the channel margins and taxes associated with those sales.
“Your company’s vibrant portfolio of over 25 world-class Indian brands, largely built through an organic growth strategy in a relatively short period of time, represents an annual consumer spend of nearly INR 29,000 crore and reaches over 230 million households in India,” ITC said addressing its shareholders in the report.
This represents a growth of approximately 21 percent compared to the financial year 2021-22. According to ITC’s latest annual report, their FMCG business recorded an annual consumer spend of over INR 24,000 crore.
ITC reported that its products reached 230 million households during FY23, representing an increase from the previous fiscal year where it reached over 200 million households in FY22.
During the fiscal year 2022-23, the gross revenue generated from the sale of products and services amounted to INR 69,480.89 crore. Within this, the cigarettes business accounted for INR 28,206.83 crore, while the FMCG business contributed INR 19,122.50 crore.
ITC’s D2C platform, the ITC e-Store, is currently operational in more than 24,000 pin codes and continues to receive an outstanding response from consumers.
The company is active in the food industry, offering a range of brands including Aashirvaad, Bingo, Sunfeast, and YiPPee. Additionally, in the personal care sector, it owns brands like Fiama, Vivel, Savlon, and more.
ITC is strategically positioned to capitalize on emerging value-added sectors and future categories by harnessing the strength of its 25 established flagship brands cultivated throughout the years.
“Recent examples of such brand extensions include Aashirvaad to Dairy, Ready-to-Eat, Vermicelli, Salt and Spices; Sunfeast to Dairy Beverages and Cakes; Bingo to Namkeens; ITC Master Chef to Frozen Snacks and Cooking pastes; Classmate to Writing instruments; Savlon to Sanitisers, Wipes and Disinfectant sprays etc,” it said.
In addition to its presence in the domestic market, ITC’s FMCG business is actively expanding its global footprint, reaching over 60 countries through its export operations.
According to ITC, the personal care segment experienced a rise in inflation, resulting in a decline in demand, particularly in rural markets. However, the company observed a gradual improvement in market conditions throughout the year.
“Portfolio premiumisation, the launch of an innovative and differentiated range of products and agility in mitigating the impact of commodity inflation enabled the business to strengthen the core and grow emerging categories during the year, in spite of a challenging operating environment,” it said.
It is also setting up a personal care and home care products manufacturing unit in Uluberia, West Bengal, ITC added.
