Cigarettes-to-hotel conglomerate ITC expects its FMCG products will have a market of Rs 500,000 crore by 2030, said Sanjiv Puri, the group’s chairman and managing director, on Wednesday.
The company aims to take its brands overseas, Puri told shareholders at the company’s annual general meeting in Kolkata. “In recent years, we have established distribution arrangements abroad enabling appreciable progress of exports of ITC’s ‘Proudly Indian’ brands to over 60 countries. Over time, such exports will make a substantial contribution to the growth of your company’s value-added FMCG portfolio.”
The FMCG business–it is among the company’s newer diversifications and has about 25 brands in its portfolio–crossed consumer spending of Rs 24,000 crore in FY22. “The carefully selected portfolio, with substantial headroom to grow, is estimated to have a total addressable market potential of Rs 5,00,000 crore by 2030, which is amongst the highest in the Indian FMCG space,” said Puri.
The company launched 110 products in FY22, highlighting its consumer centricity, agility, innovative capacity, and digital transformation. “It also reflects the ITC Next strategy to fortify and scale up our mega brands such as Aashirvaad, Sunfeast, Bingo! And Yippee!, leverage some of these power brands to address value-added adjacencies and invest in categories of the future.”
Puri flagged near-term challenges from geo-political tensions and severe economic stress caused by untamed inflation and supply-side disruptions.
“The recessionary trends and debt crisis in certain geographies are also of concern for the global economy,” said Puri.
He also said that India demonstrated resilience and achieved robust recovery driven by the government’s proactive policy measures and the company was optimistic about the prospects of the Indian economy. “ITC’s future-ready and purpose-driven businesses and brands are well poised to seize the emerging opportunities and make a meaningful contribution to national priorities.”
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