>A Feast for the Senses :
ITC in Branded Packaged Foods

It is ITC’s strategic intent to leverage its unique e-Choupal based agri-sourcing strength in conjunction with its traditional capabilities in branding, trade marketing and distribution to exploit growth opportunities in value-added branded foods. ITC’s Foods business aspires to become the most trusted provider of food products in India.
Chairman Y C Deveshwar

ITC’s foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of ‘Kitchens of India’ ready-to-eat Indian gourmet dishes. In June 2002 ITC entered the confectionery, staples and biscuits segments. In just five years, the Foods business has grown to a significant size with 100 differentiated products, five distinctive brands, an enviable distribution reach, a rapidly growing market share and a solid market standing.

This success story is driven by two strong fundamentals. The first being ITC’s diverse proven capabilities. Be it sourcing high quality agri-produce. The widely acknowledged cuisine expertise of its hotels’ business. The robust FMCG distribution infrastructure. The decades-old tradition of building enduring brands by anticipating and exceeding consumer expectations. Or the world-class paperboards and state-of-the-art packaging solutions available in-house. These have combined to give the Company a distinct advantage in the marketplace.

Secondly, ITC’s foray has been timed to leverage the exponentially growing potential of the branded packaged food market in India. Demographic shifts are leading to an increase in nuclear families. Rise in discretionary incomes and changing lifestyles are driving the demand for convenient yet healthier consumption options. These trends are strong indicators of a potential upsurge in the demand for packaged foods.

The Government recognises the critical role the food processing industry can play in driving economic growth and generating employment. The priority accorded to the food processing sector, particularly the industry friendly policies relating to bank credit, excise duties, etc. will further drive the rapid growth of processed foods in the country.

The share of branded packaged foods, currently estimated at 8% of the total domestic food sector of Rs 550,000 crores, is expected to more than double in the next six years.

ITC is well-positioned to ride this boom.