ITC adopting disruptive business models as part of strategy reset
New Delhi: ITC has extensively reset its strategy and will explore opportunities to craft disruptive business models to set up structural drivers helmed by digital and sustainability for its next horizon of growth and make the company future-ready, Chairman Sanjiv Puri said on Wednesday.
The company is pursuing an accelerated journey to build a dynamic FutureTech' enterprise by investing in cutting-edge digital technologies to shape a new paradigm of competitiveness, create innovative business models and tap newer opportunities, he said while addressing shareholders at ITC's virtual annual general meeting. As part of the next horizon vision, the company is "proactively exploring inorganic opportunities" even as it has shrunk "business segments that were incongruent to our growth aspirations, such as the Lifestyle Retailing Business" while the existing growth platforms comprising megabrands will be scaled up and fortified.
Puri, who led the gathering to a minute's silence to pay homage to those who lost lives to the pandemic said,"The Black Swan event accentuated the undercurrents of digital and sustainability as predominant megatrends."
After the second wave of the pandemic, week-on-week improvement in market conditions consequent to the easing of restrictions augurs well for a pick-up in the recovery momentum but the possibility of subsequent waves still looms near-term uncertainties.
"The recovery over the last couple of months is encouraging, though the possibility of subsequent waves creates near-term uncertainties," he said adding ITC will constantly monitor and proactively address these dynamic changes with agility.
About ITC Next, Puri said each of the company's businesses has pivoted to create new frontiers for the future, with enhanced competitiveness as well as focus on cost management to strengthen leadership or rapidly attain the top positions in the case of newer segments.
"As a core element of the ITC Next strategy, your company will continue to explore opportunities to craft disruptive business models anchored at the intersection of Digital and Sustainability, the two defining trends in the new normal', leveraging its institutional strengths," he said. "Your company's digital transformation is being built on a foundation of an agile Digital First' culture. New frontiers are being explored across the entire value-chain ecosystem to add significant impetus to digital marketing, digital commerce, digital products and digital operations," said Puri.
The company is working on a smart ecosystem with an "Integrated Real-Time Operations Platform" that continues to be deployed across the organisation, enabling next-generation supply chains and smart manufacturing with digitally enabled factories. Multi-dimensional digital interventions are being implemented to ensure higher order efficiencies, heightened impact and faster go-to-market, he added.
About the FMCG business, Puri said it is focusing to build a formidable business at scale and several of its brands have already achieved leadership positions.
"These purposeful brands anchor large categories and have immense headroom to grow given the relatively lower household penetration currently, and particularly with per capita incomes rising in the future. Sustained investments to drive innovation and accessibility will continue to fuel growth and enhance market standing," he said. In FMCG segment, several "strategic interventions" are being executed to achieve "sustained, competitive and profitable growth".
Moreover, in the segment, ITC sales through e-commerce channels have more than doubled during the pandemic-impacted FY21. ITC also strengthened its direct to consumer platform,
ITC e-Store', reaching consumers in 11 metros.
