The Kolkata-headquartered diversified conglomerate ITC aims to be India’s largest fast-moving consumer goods (FMCG) company by 2030, ITC chairman YC Deveshwar said on Wednesday.
ITC’s diversification into the FMCG space helped the company create multiple drivers of growth. Today the company’s FMCG business is the fastest growing in the country. “Now we want to create world-class brands from India,” Deveshwar said.
He said the company was targeting Rs 1 lakh crore revenue from FMCG businesses by 2030.
The company has lined up plans to foray into new categories like fruit juices, tea, coffee, chocolate and dairy products. “We are building the ITC of tomorrow and will enter into new segments like fruit juices, tea, coffee, chocolates and dairy products,” he told the 103rd annual general meeting of the company.
Later at a press conference, he said that the company should continue to enter new areas and sooner or later foray into these areas. Responding to queries on why their plans to get into the dairy segment getting delayed, he said that unlike most others who prefer growing inorganically, ITC prefers growing organically. “We always believe in creating new economic activities and creating new jobs instead of growing through acquisition. We are therefore creating the back end first. When it comes to dairy business, we would like to get into animal husbandry first and think create forward linkages with dairy business. We are doing exactly that.”
“The company is also engaged in R&D activities to get into the functional food category, particular in wellness food categories like diabetes, cardio vascular and cognition”, he said.
Deveshwar told shareholders that while these new categories would have a high gestation cost, this is the best time to absorb these. The company is trying to build the ITC of tomorrow from the cash flows generated from the cigarette business, he said.
The company is already in the process of investing Rs 25,000 crore in 65 different projects.