ITC recorded an annual client spend of over Rs 24,000 crore in FY22 within the FMCG enterprise, whereby the corporate operates with over 25 mom manufacturers in segments together with meals, private care, training, and stationery, as per its newest annual report.
The FMCG enterprise of ITC has grown at an “impressive pace” over the previous a number of years and achieved spectacular market standing in a comparatively quick span of time, mentioned the corporate which nonetheless will get round half of its income from the tobacco enterprise.
ITC’s 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 over Rs 24,000 crore and reach over 200 million households in India,” the annual report mentioned.
Its home-grown, purpose-led Indian manufacturers assist the competitiveness of home worth chains, particularly within the agri area, thereby guaranteeing the creation and retention of worth inside the nation, mentioned ITC, including the full addressable market growth potential is among the many highest within the Indian FMCG area.
Annual client spend is the sum which a client spends lastly on shopping for items. This is a mixed income from the sale of merchandise together with commerce margins and taxes.
ITC, which owns manufacturers like Aashirvaad, Bingo, Sunfeast, Classmate, Savlon, and YiPPee, “remains focused on rapidly scaling up the FMCG businesses anchored on strong growth platforms and a future-ready portfolio”, the report mentioned.
“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; Savlon to surface and clothes disinfectant sprays, sanitizers, masks, etc,” it mentioned.
In FY22, cigarettes contributed 39.68 p.c of ITC’s complete turnover, whereas FMCG others which include its branded packaged meals companies, private care merchandise; training and stationery merchandise, security matches, and agarbattis; attire, and so forth contributed 27.01 p.c.
Agri enterprise, paperboards, paper & packaging, and accommodations contributed 20.52 p.c, 10.63 p.c and a couple of.16 p.c, respectively.
ITC turnover for the 12 months ended March 31, 2022, was at Rs 59,101.09 crore.
Besides, ITC is proactively pursuing value-accretive acquisition, three way partnership, and collaboration alternatives in strategic areas in the direction of accelerating progress and worth creation for its FMCG enterprise.
The Kolkata-headquartered firm stays centered on constructing purpose-led manufacturers powered by agile innovation and anchored on bigger client wants.
Its companies proceed to more and more leverage ‘sixth sense’, the Marketing Command Centre, and Consumer Data Hub — an AI-powered hyper-personalised platform backed by a strong companion ecosystem for content material and information — to achieve insights on market tendencies and client behaviour.
“Over 110 new products were launched across target markets during the year, leveraging the robust innovation platforms of ITC’s Life Sciences and Technology Centre (LSTC),” mentioned ITC.
It can be engaged on digital-first manufacturers comparable to strengthening its presence within the premium skincare area by ‘Dermafique’.
Its D2C platform, ITC e-Store, is now operational in 15 cities providing customers on-demand entry to a spread of FMCG merchandise throughout 45 classes and over 700 merchandise.
ITC has lined important floor and scaled up its digital investments exponentially lately, it seeks to embrace digitalisation as a basis functionality, very important to accelerating worth creation, providing novel methods of interacting with customers and reconfiguring worth chains, and reworking enterprise fashions.
In the agri enterprise, ITC is enhancing its Value-added Agri Products (VAAP) portfolio comprising spices, espresso, frozen marine merchandise, and processed fruits amongst others for home and export markets.
ITC contribution from exports additionally went up 15.77 p.c of its complete turnover in FY22 from 10.75 p.c in earlier 12 months. ITC exports to over 100 nations. It is one in every of India’s largest exporters of agri commodities.
“ITC will also be exploring additional opportunities for growth through value accretive M&As as well as enhanced investments to drive exports,” it mentioned.
Foreign alternate earnings of the ITC Group during the last 10 years aggregated almost USD 8.2 billion, of which agri exports constituted 59 p.c.
“During the financial year 2021-22, your company and its subsidiaries earned Rs 11,472 crore in foreign exchange. The direct foreign exchange earned by your company more than doubled to Rs 9,779 crore, mainly on account of exports of agri-commodities,” it mentioned.
ITC branded packaged meals companies export to just about 60 nations and plans to “rapidly scale up” by leveraging the model fairness of core manufacturers comparable to Aashirvaad, Sunfeast, and Kitchens of India and investment-led incentives below the Centre’s PLI scheme.
“The recently announced PLI scheme is expected to provide further fillip to exports of your company’s products across Biscuits & Cakes, Snacks, Dairy and Ready-to-Eat categories,” mentioned ITC, including it additionally continues to discover alternatives in proximal markets as a possible vector of progress going ahead.
