ITC Eyes Rs.1Lakh cr Turnover from New FMCG Businesses
Diversified conglomerate ITC Ltd is eyeing a turnover of over Rs 1lakh crore from its non-cigarette FMCG business by 2030, chairman YC Deveshwar said.
The Economic Times - 27 Jul 2013
Addressing the company's 102nd annual general meeting here on Friday, Deveshwar said ITC is on the path to become India's largest FMCG company without taking into account its cigarette business. "This is evidently an audacious aspiration and one that may not necessarily be realised in my own lifetime. I, however, wish to place ITC firmly on the path to such accomplishments," he said.
ITC's non-cigarette FMCG business currently comprises of packaged food, personal care, education and stationary products, agarbaatti, safety matches and also includes its two lifestyle retail ventures Wills Lifestyle and John Players. This business had crosses Rs 7,000 crore revenue in the last fiscal, ending March 31, 2013.
Deveshwar said ITC's newer FMCG businesses growth has been rated by a recent Nielsen report to be the fastest among the consumer goods companies in India. Brands like Aashirvaad atta and Sunfeast biscuits have already garnered annualised consumer spends of over Rs 2,000 crore each. The Classmate brand of notebooks and scholastic products has notched up consumer spend of Rs 1,000 crore, while Bingo!, Candyman and Vivel are estimated to over Rs 500 crore each.
While Aashirvaad is the market leader in packaged atta segment, Sunfeast Dark Fantasy has emerged as the market leader in the premium cream biscuit category. In confectionery, Candyman too is a leader while ITC's instant noodle brand Yippee! is the second largest.
Talking about the cigarette business, Deveshwar said India is perhaps the only country in developing world where domestic brands have been able to outclass any foreign brand by a long margin. "The threat from foreign brands, however, is growing due to exponential growth of contraband cigarettes induced by the high rates of central and state taxes," he said.