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ITC Sees Turnover from FMCG Brands Crossing Rs 10k Cr in FY14
The Economic Times - 27 Jun 2014

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.

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