ITC, a leading FMCG company, is making significant strides in the food-tech industry with its cloud kitchen business. Over the last three years, the company has achieved a compound annual growth rate (CAGR) of 108% in this segment. ITC’s food-tech vertical, which combines its foods, hotels, and digital operations, has expanded to 60 cloud kitchens across five cities, offering restaurant-quality meals under four brands. The company’s chairman, Sanjiv Puri, highlighted the business’s potential, stating that it is “setting new benchmarks in culinary innovation and tech-enabled operations” and is being introduced across India.
ITC’s foray into food-tech is part of its broader “Next” strategy, which aims to build future-ready portfolios through organic growth and new investments. The company is leveraging its consumer insights, culinary capabilities from its hotel division, and digital expertise to create a differentiated offering in the meal delivery space. While competitors are focusing on direct-to-consumer snack or grocery platforms, ITC is investing in full-stack meal delivery with branded offerings.
To support its ambitions, ITC has invested in eight manufacturing units and plans to deploy Rs 20,000 crore across businesses in the medium term. The company is also making significant progress in sustainable packaging, with its R&D arm developing compostable and recyclable packaging solutions. ITC’s packaging business has grown 2.4x since FY22, and the company has commenced operations at its new moulded fibre products facility in Madhya Pradesh.
ITC’s financial performance has been impressive, with a 68.9% increase in net profit to ₹35,052 crore in FY25, and a 10.4% increase in revenue from operations to ₹81,612.78 crore. While it remains to be seen whether ITC’s food-tech operation can scale nationally and compete with entrenched delivery-first players, the company’s focus on innovation, technology, and sustainability is yielding positive results. With its strong brand portfolio, culinary expertise, and digital capabilities, ITC is well-positioned to make a significant impact in the food-tech industry.