Millennium Post
Business

ITC FMCG biz's annual consumer spend over `24K cr in FY22

ITC FMCG bizs annual consumer spend over `24K cr in FY22
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New Delhi: ITC recorded an annual consumer spend of over Rs 24,000 crore in FY22 in the FMCG business, wherein the company operates with over 25 mother brands in segments including food, personal care, education and stationery, as per its latest annual report.

The FMCG business of ITC has grown at an "impressive pace" over the past several years and achieved impressive market standing in a relatively short span of time, said the company which still gets around half of its revenue from tobacco business.

ITC portfolio of "over 25 world-class Indian brands, largely built through an organic growth strategy in a relatively short period of time, represents an annual consumer spend of over Rs 24,000 crore and reach over 200 million households in India," the annual report said.

Its home-grown, purpose-led Indian brands support the competitiveness of domestic value chains, especially in the agri space, thereby ensuring creation and retention of value within the country, said ITC, adding the total addressable market expansion potential is among the highest in the Indian FMCG space.

Annual consumer spend is the sum which a consumer spends finally on buying goods. This is a combined revenue from the sale of products including trade margins and taxes.

ITC, which owns brands like Aashirvaad, Bingo, Sunfeast, Classmate, Savlon and YiPPee, "remains focused on rapidly scaling up the FMCG businesses anchored on strong growth platforms and a future-ready portfolio", the report said.

"Recent examples of such 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 to surface and clothes disinfectant sprays, sanitizers, masks, etc," it said.

In FY22, cigarettes contributed 39.68 per cent of ITC's total turnover, while FMCG others which consist of its branded packaged foods businesses, personal care products; education and stationery products, safety matches and agarbattis; apparel etc contributed 27.01 per cent.

Agri business, paperboards, paper & packaging and hotels contributed 20.52 per cent, 10.63 per cent and 2.16 per cent, respectively.

ITC turnover for the year ended March 31, 2022 was at Rs 59,101.09 crore.

Besides, ITC is proactively pursuing value-accretive acquisition, joint venture and collaboration opportunities in strategic areas towards accelerating growth and value creation for its FMCG business.

The Kolkata-headquartered company remains focused on building purpose-led brands powered by agile innovation and anchored on larger consumer needs.

Its businesses continue to increasingly leverage sixth sense', the Marketing Command Centre and Consumer Data Hub — an AI-powered hyper-personalised platform backed by a robust partner ecosystem for content and data — to gain insights on market trends and consumer

behaviour.

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