ITC FOODS, the foods business arm of the
country’s largest cigarette maker aims to contribute Rs 500 crore to the
latter’s topline over the next four to five years time.
"Currently we have a very modest
contribution to ITC’s topline. This is bound to grow over the years by expanding our
product range," said Mr. Ravi Naware, chief executive of ITC Foods. The growth would
come by expanding the product range which currently includes staples, confectionery and
ready-to-eat (RTE) products. The company is also exploring to export RTEs, he added.
Mr. Naware also said the company did not
have any plans to enter the edible oil business. ITC’s premium edible oil brand-
Sundrop was sold to US ConAgra, when the company exited this business.
It may be recalled that during FY 2001-02,
ITC had gross income of Rs 9,982 crore with a profit after tax (PAT) of Rs 1,190 crore.
Mr. Naware who earlier announced the
simultaneous launch of the "Aashirvaad’ range of whole-wheat flour in the
southern markets, said the division also planned to enter into sale of iodised salt and
rice (basmati rice). Aashirvaad atta will be available through 6,000 outlets in south
India and would be retailed in half Kg, 1 Kg, 2 Kg and 5 Kg packs. Typically most of the
FMCGs like Hindustan Lever have entered into wheat flour and salt. The other major players
in this market include Godrej-Pilsbury and Naturefresh from Cargil.
Its entry into the staple food market is
being aided the successful implementation of the ‘e-choupal’ model by ITC’s
international business division. "For the staples like wheat flour, raw material
costs account for 75-80% of the total cost. We have been able to benefit significantly by
sourcing through e-choupal facility," he said. To cater to the southern market, it
has entered into a contract manufacturing agreement (CMA) with Bangalore- based
Shaktikiran Foods while Vishwas Foods of Sonepat, Haryana, has the CMA for north India.
