On Friday, ITC Limited, a diversified conglomerate, announced that its FMCG business holds significant growth potential, boasting brands that drive an annual consumer expenditure of INR 29,000 crore.
Addressing shareholders at the company’s 112th Annual General Meeting, ITC’s chairman, Sanjiv Puri, highlighted that the FMCG brands are being distributed to numerous countries, emphasizing the substantial growth potential of this business segment attributed to the increasing per capita income among populations worldwide.
“The ITC Next strategy for the FMCG business is to build a future-ready portfolio. With more than 25 brands at the moment, the annual consumer spend is around INR 29,000 crore”, Puri said.
He said that the addressable market for the FMCG vertical of ITC is USD five trillion. “The business has immense opportunity to harness this potential”, Puri added.
In relation to the hotel business, the ITC board had granted preliminary approval for the demerger of this division, intending to establish it as a distinct and independent entity.
Read More: ITC board approves hotel business demerger, expects ROCE to improve significantly
Puri expressed that the business is strategically positioned to seize the burgeoning opportunities within the expanding tourism sector.
“We have pivoted to an asset-right strategy. With 120 hotels at the moment under ITC fold, managed properties comprise 55 per cent of the total rooms”, he said.
In terms of the cigarette business, he mentioned that the company has been launching fresh brands while benefiting from a consistent taxation framework, resulting in an upward trend in sales volumes.
ITC continues to strengthen the cigarette business, he added.
Puri said the FMCG business is linked to the agri-value chain. The ITC MAARS project will support 4000 FPOs by 2030, he said.