NEW DELHI: Over time, exports will make a substantial contribution to ITC’s value-added FMCG business, Sanjiv Puri, Chairman of the hotels-to-cigarettes conglomerate, said at the company’s AGM on Wednesday.
Puri said it is the company’s aspiration to take these brands to overseas markets. ITC launched 110 products during the year. “In recent years, we have established distribution arrangements abroad enabling appreciable progress of exports of ITC’s ‘Proudly Indian’ brands to over 60 countries.”
ITC’s newer FMCG Businesses have garnered an annual consumer spend of Rs 24,000 crore, according to Puri, who believes the portfolio is estimated to have a total addressable market potential of Rs 5,00,000 crore by 2030. ITC’s products are available in nearly 70 lakh outlets through its omnichannel network.
“ITC’s interventions in the newer FMCG Businesses have enabled robust growth of 25% in Revenue during the last two years of the pandemic, reaching nearly Rs 16,000 crore in FY22,” Puri said in his speech. He also added that despite the unprecedented inflationary headwinds, ITC sustained EBITDA margins last year and also improved margins by 650 basis points over the last 5 years.
“As part of the ITC Next strategy, the FMCG Businesses continue to create structural competitive advantages and enhance profitability through a gamut of interventions. These include investments in the brand portfolio, science-led innovation, a smart connected ecosystem.”