ITC’s FMCG wing set to cross US$4B revenue mark 

INDIA- Food industry conglomerate ITC has announced its FMCG business wing is set to cross the US$4 billion revenue mark in the current financial year due to an aggressive diversification and promotional strategy.  

The company revealed that the revenues of its FMCG segment currently stand at Rs 32,500 crore (US$3.89 billion) for the 2023/2024 financial year. The revenue reported so far is 50% higher than Hudson Unilever and 30% higher than Nestle India.  

The revenues reported so far represent a significant growth in the company’s FMCG business. The business wing’s revenue for the previous financial year was Rs 20,966 crore (US$2.51 billion).  

According to the company, its FMCG brands have reached more than 250 million households in India in the past year alone. ITC also revealed its FMCG business wing has grown leaps and bounds ahead of the industry in both the rural and urban markets. 

The conglomerate attributes this significant growth to strategic portfolio expansion and augmentation, innovation, channel-specific business plans, and enhanced distribution. A key element of this portfolio expansion was the recent scaling up of its ‘Food Safe Spices’ agri products.  

ITC introduced more than 100 new products in its FMCG business wing in the past year in areas like hygiene, nutrition, personal care and fast food. 

The company also revealed its FMCG wing recorded an EBITDA (earnings before interest, tax, depreciation and amortization) increase of 19.7%, higher than any competitor in India, with margins projected to increase by 11.2%. 

The conglemorate also significantly attributes its growth and expansion in the past year to the proliferation of its digital sales and online presence. The company’s digital sales are set to constitute 31% of total revenues in the 2023/2024 financial year. It accounted for only 17% of total sales in 2019. 

ITC has reiterated its commitment to continue to grow and exploit its digital presence. 

The company said in a statement, “ITC’s collaborations with leading e-commerce platforms on all aspects of operations viz. category development, supply chain, consumer offerings, and consumer acquisition have enabled it to significantly scale up sales in the channel. This was augmented by the development of exclusive pack assortments, channel-specific business plans, and ‘Digital First’ brands.”