ITC is intensifying its commitment to environmentally-friendly logistics by incorporating electric vehicles into its last-mile operations for fast-moving consumer goods (FMCG) products. The company’s goal is to significantly increase the deployment of electric vehicles, aiming to complete more than 75,000 trips in the fiscal year 2024.
Presently, the company’s electric vehicle (EV) initiative is active in major cities throughout the nation, including Delhi, Kolkata, Bangalore, Mumbai, Hyderabad, Pune, Siliguri, and Patna. At the moment, these EVs are facilitating more than 30,000 trips annually, and there is a continuous expansion of this program underway.
The company emphasized the utilization of electric vehicles (EVs) for last-mile deliveries, focusing on smaller-sized vehicles that are well-suited for covering shorter travel distances.
In a statement, B Sumant, Executive Director, ITC Ltd said, “ITC embarked on its sustainability journey a few decades ago and today, we stand at the forefront of the movement to integrate sustainability into every facet of business operations. The introduction of electric vehicles is yet another pivotal step in greening our value chain.”
“Moreover, it serves as a catalyst for promoting planet friendly interventions aimed at transitioning to a net zero economy. As we move ahead, we are committed to scaling up our Green Logistics efforts significantly in line with our bold and ambitious Sustainability 2.0 Vision in order to contribute to a greener and cleaner earth,” he added.
He mentioned that this initiative aligns with the Government’s goals of achieving net zero emissions and follows the Gati Shakti master plan, which advocates for the implementation of eco-friendly logistics practices.
As part of its Sustainability 2.0 agenda, ITC has set a target to satisfy 50 percent of its overall energy demands using renewable sources by the year 2030. Currently, renewables already account for 43 percent of ITC’s total energy requirements.
ITC is working with various EV aggregators and OEMs for its green logistics programmes “The integration of electric vehicles (EVs) into the final leg of the company’s value chain will significantly reduce carbon footprint, while also enhancing cost competitiveness. This shift towards EVs will translate into annual savings on fuel expenditure,” the company added.
The FMCG company expressed that a more supportive environment in the future will result in increased access to electric vehicles, extended range for the EVs, and improved charging infrastructure.
ITC is focusing on optimising the use of logistics across divisions. “The primary objective is to enhance operational efficiency by optimising transportation routes, deploying higher capacity vehicles and transitioning to lower-emission modes of transportation, such as rail, waterways and sea routes,” it added.
The company has strategically located its Integrated Consumer Goods Manufacturing and Logistics (ICML) facilities near the market to serve its FMCG businesses efficiently. This strategic positioning allows for direct deliveries to customers, simplifying logistics and minimizing environmental effects.
