The company's turnover from non-tobacco brands grew 16% year-on-year despite slowdown
ITC's non-tobacco FMCG business crossed Rs. 10,000 crore in brand turnover last fiscal, within 10 years of the Kolkata-based conglomerate foraying into the business.
According to data published in ITC's 2013-14 annual report and company officials, ITC's non-tobacco FMCG brands turnover - which is cumulative annualised consumer spend on its brands - grew 16% year-on-year despite a slowdown in the Indian consumer products industry.
Two of its brands - Aashirvaad packaged atta and Sunfeast biscuits - crossed Rs. 2,500 crore turnover in 2013-14, up from about Rs. 2,000 crore each in the year before, while the Classmate notebook brand improved its turnover to Rs. 1,200 crore from Rs. 900 crore in 2012-13.
ITC's packaged food business, which is the largest contributor to its FMCG pie, grew 21% to record Rs. 5,717-crore sales.
With this, ITC has widened the gap over Hindustan Unilever (HUL) in the food business, after toppling the country's top FMCG marketer by a small margin in 2012-13. ITC also narrowed its gap with Britannia, which posted Rs. 6,307-crore revenue last fiscal. HUL's food business net revenue was Rs. 4,896 crore in 2013-14.
Some experts expect ITC's food business to outgrow Britannia in two years. "ITC's foray into high growth categories like juices and dairy business this year will trigger the pace of growth along with strong back-end sourcing," said Abneesh Roy, associate director (institutional equities - research) at Edelweiss Securities.
Roy said ITC should focus more on foods as its personal care business has not achieved much success.
According to ITC's annual report, it is the market leader in packaged atta, cream biscuits, safety matches, student stationary business and is the second largest player in noodles. Its Sunfeast YiPPee! noodles brand grew nearly three times the industry average to become the fastest-growing brand in its category.