ITC Limited
Sustainability Report 2006

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India's largest FMCG CompanyIt is a measure of the continued trust reposed in the Company by its consumers that the top two FMCG brands in the country today belong to ITC. The Company's FMCG businesses leverage one of the largest retail networks in the country, consisting of about 2 million directly serviced dealers. Its reach covers a wide range of the retail spectrum, from premium outlets in the metros to small shops in the interiors of rural India. The Cigarette business continues to occupy its position of leadership on the strength of continued value addition.

The Company rapidly scaled up the Branded Packaged Foods business during the year in the four current categories - Snack Foods, Staples, Confectionery and Ready-to-Eat - now offering over 100 distinctive products. In the Staples category, 'Aashirvaad Atta' further consolidated its position as the clear leader amongst national branded players with market share touching 45%. The year marked the expansion of the 'Sunfeast' range of biscuits with the launch of Cookies ('Sunfeast Golden Bakes') in 3 variants and Sweet & Salt Crackers ('Sunfeast Snacky') in 2 variants. During the year, outsourced and distributed manufacturing capacities were geared up to support the increase in scale of operations. The business is in the process of establishing its own production facilities across the country with a view to servicing proximal markets in an efficient and cost-effective manner.

The year also saw the roll out to target markets of 'Sunfeast Pasta Treat', a whole-wheat based non-fried product. Product range in the 'Confectionery' segment was expanded with the launch of 'mint-o masti blue' in a new pack design and 'Cofitino' in the hitherto unrepresented Toffees segment. The Ready-to- Eat product portfolio was augmented with the introduction of Instant Mixes in the 'popular' range under the 'Aashirvaad ReadyMeals' banner, launch of new variants of cooking pastes under the 'Aashirvaad' umbrella brand and a range of packaged desserts, conserves and chutneys under the flagship brand 'Kitchens of India'.


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