ITC sees huge growth potential in FMCG business

ITC Ltd. said that the FMCG business holds immense growth potential with its brands commanding an annual consumer spend of Rs 29,000 crore.

ITC Chairman Sanjiv Puri while speaking at the 112th AGM of the company in his address told the shareholders that FMCG brands are being exported to several countries and the business vertical has immense growth potential due to the rising per capita income of the people.

"The ITC Next strategy for the FMCG business is to build a future-ready portfolio. With more than 25 brands at the moment, the annual consumer spend is around Rs 29,000 crore", Puri said.

He said that the addressable market for the FMCG vertical of ITC is $5 trillion. "The business has an immense opportunity to harness this potential", Puri added.

In regards to the hotel business, the ITC board has given a nod to demerge the vertical and spin it off into a new entity.

Puri said that the business is well poised to capitalise on the growth potential of the tourism sector.

"We have pivoted to an asset-right strategy. With 120 hotels at the moment under ITC fold, managed properties comprise 55 percent of the total rooms", he said.

While talking about the cigarette business, he said the company has been introducing new brands with stability in the taxation regime, sales volumes are increasing.

ITC continues to strengthen the cigarette business, he added.

Puri said the FMCG business is linked to the agri-value chain. The ITC MAARS project will support 4000 FPOs by 2030, he said.