ITC, a prominent player in the FMCG industry, is prioritizing value accretive acquisitions as a core expansion driver under its ‘ITC Next’ strategy. According to Shuvadip Banerjee, Chief Digital Marketing Officer, ITC, the company will continue to explore new opportunities that address consumer needs and build Rs 1000 crore brands.
Recently, ITC has made several acquisitions that have enriched its portfolio by filling strategic white spaces and enhancing its presence in various segments. The company’s food business is one of the largest and fastest-growing packaged foods businesses in India, with a robust portfolio of brands and offerings. Several of its brands, including Aashirvaad, Sunfeast, YiPPee!, and Sunrise, have crossed the Rs 1000 crore mark in terms of consumer spends.
The growth of these brands has been driven by a deep understanding of consumer preferences, a focus on quality, innovation, and differentiation. ITC will continue to explore new opportunities that address consumer needs, with a focus on innovation, category expansion, deepening consumer engagement, and market leadership.
In the post-pandemic era, the FMCG industry is witnessing a trend of premiumization, driven by rising health awareness, lifestyle changes, and digital influence. Consumers are prioritizing products that offer clear value adds, rather than just price and quantity. ITC is responding to this trend by creating premium offerings that cater to the health-seeking new India, growing per capita India, Gen Z, and consumers seeking new sensorial experiences.
For example, the company has launched Right Shift, a brand designed for consumers over 40, with a focus on ‘pro-ageing’ rather than ‘anti-aging’. It has also introduced Korean-inspired products under Bingo! and YiPPee! for the younger audience. Additionally, ITC has launched Sunfeast ‘Wowzers’, a 14-layer cracker biscuit, and introduced bold desi flavors such as chatpata Kairi and Masala Tadka Chaach under Bingo! Tedhe Medhe.
ITC’s cloud kitchen business has also grown significantly in recent years. The company started with one kitchen in Bangalore in 2020 and has since expanded to Chennai, Hyderabad, Mumbai, and Pune. It has four distinct brands – Aashirvaad Soul Creations, ITC Master Chef Creations, Sunfeast Baked Creations, and Sansho by ITC Master Chef – serving gourmet and quality food to discerning consumers. Looking ahead, ITC aims to scale its cloud kitchen business and enter more cities in India.
Overall, ITC is well-positioned to capitalize on the growing demand for premium products in the FMCG industry, while also expanding its presence in the cloud kitchen space. With its focus on innovation, quality, and differentiation, the company is poised to achieve significant growth in the coming years.