Itc FMCG Business: ITC FMCG Business to reach $4 billion

Kolkata: Sanjiv Puri-led FMCG business may cross the $4 billion mark. Taking into account consumer spending in 2023-24, it currently stands at Rs 32,500 crore. This figure is just over 50% of FMCG giant Hindustan Unilever’s revenues and 30% more than Nestle India’s revenues. Consumer spend on ITC was Rs 29,000 crore in 2022-23. HUL’s revenue for FY23-24 was Rs 61,442 crore, while Nestle’s revenue for the same period was Rs 24,541 crore. The revenue of ITC’s FMCG business segment was Rs 20,966 crore in the last financial year. ITC’s FMCG business includes personal care products, food, stationery, agarbatti and others. Its portfolio includes over 25 brands. “Our brands have reached over 250 million households in the country,” the company said. ITC also said in its annual report that its FMCG business has outperformed the industry in both urban and rural markets, driven by innovation, portfolio premiumization, strategic portfolio expansion, execution of channel-specific business plans, increased distribution reach and excellent execution last mile. ITC’s FMCG businesses reported segment EBITDA (earnings before interest, tax, depreciation and amortization) of Rs 2,338 crore, up 19.7%. Margins improved 94 bps to 11.2%. During the year, the company also introduced over 100 new products to target markets in areas such as health and nutrition, hygiene, protection and care, comfort and travel, and pleasure. ITC said its digital sales have grown rapidly in recent years and, together with modern trade, now account for 31% of its FMCG portfolio. In the 2019-20 financial year, it was 17%. According to ITC, the increase in internet usage, especially via smartphones, widespread adoption of digital payments, wide product range and faster deliveries continue to contribute to the growing importance of the e-commerce channel. “ITC’s cooperation with leading e-commerce platforms in all aspects of activity, i.e. category development, supply chain, consumer offer and customer acquisition, allowed us to significantly increase the scale of sales in this channel. This was driven by the development of exclusive packaging ranges, channel-specific business plans and ‘Digital First’ brands,” the company said.

We have also recently published the following articles

ITC scales up ‘Food Safe Spices’ and other value added agri-products to accelerate growth

ITC’s Agri Business is diversifying into premium Arabica coffee, boasts a state-of-the-art spice processing facility and adheres to Rainforest Alliance standards.

Business or Love? Jennifer Lopez and Ben Affleck Hang Out at the Production House

Amid the gossip, we live apart, thinking about and collaborating on upcoming films.