ITC Eyes Wider Export Market To Grow Staples To Biscuit Business, Says Sanjiv Puri


ITC Ltd. is eyeing overseas markets to help scale up its consumer goods segment and contribute significantly to its revenues.

The company has signed a distribution agreement to export its fast-moving consumer brands to over 60 countries, Chairman and Managing Director Sanjiv Puri told shareholders at the company’s 111th annual general meeting on Wednesday.

The tobacco-to-biscuit maker has also forayed into the frozen paratha, naan and chapati to boost exports. It launched ‘vermicelli’ under its Aashirvaad brand in FY22.

The diversified company has understood the need for higher investment including tapping the inorganic route to drive exports, the annual report said.

The recently announced product-linked incentive scheme with an estimated outlay of Rs 10,900 crore will provide a further fillip to exports of products across biscuits and cakes, snacks, dairy, and ready-to-eat categories, Puri said. The scheme includes ready-to-eat, fruits and vegetables, and marine categories as well as offers incentives for expenditure incurred towards branding and marketing.

The company is also scaling up its portfolio comprising spices, coffee, frozen marine products, and processed fruits for domestic and exports market, India’s largest exporters of agricultural commodities said in its annual report.

ITC’s fast moving consumer business reported 25% revenue growth of nearly Rs 16,000 crore in fiscal 2021-22 as economic activity normalised following two years of pandemic. The company’s FMCG business, excluding cigarettes, reaches 70 lakh outlets and to over 20 crore households across the country.

“The carefully selected portfolio, with substantial headroom to grow, is estimated to have a total addressable market potential of Rs 5 lakh crore by 2030,” Puri said. This is amongst the highest in the Indian FMCG space, he said.

The company plans to fortify and scale up mega brands such as Aashirvaad, Sunfeast, Bingo! and Yippee! to address value-added adjacencies and invest in categories of the future.

“We will continue to invest in categories of the future such as frozen snacks and floor cleaners,” the chairman said.

Puri also said ITC launched more than 110 new products during the year.

Recent examples of brand extensions include Aashirvaad to dairy, ready-to-eat, vermicelli, salt and spices; Sunfeast to dairy, beverages and cakes; Bingo to namkeens; ITC Master Chef to frozen snacks and cooking pastes; Savlon for surface and clothes disinfectant sprays, to sanitizers, masks, among others.

Cigarette And Hotels

Cigarette volumes surpassed pre-pandemic volumes in the second half of FY22, the company said.

“The legal cigarette industry has been severely impacted by smuggled and tax-avoided products over the years and a relatively stable tax regime is expected to enable the industry to claw back volumes over time,” said Puri. The company will continue to fortify the product portfolio with focus on innovation, premiumisation and superior on-ground execution, he said.

The hotel industry, Puri said, bounced back towards the end of FY22 with exit occupancies surpassing pre-pandemic levels. The company launched nine hotels this year and has a healthy pipeline of new properties, including ITC Narmada, which will be unveiled over the next few quarters.


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