ITC STEPS ON GAS TO GROW IN NONCIGARETTE BUSINESSES

ITC Ltd, the cigarettes-to-shampoo firm, is working on an eight-point strategy to reinvent itself and accelerate growth in its non-cigarette businesses, especially branded packaged foods, a segment it entered 15 years ago, CEO Sanjiv Puri said.

The “create the new ITC” strategy is part of the company’s plan to reach ₹1 lakh crore in revenue from its non-cigarette packaged goods business by 2030.

The growth in the branded packaged food business will be fuelled by the company’s entry into fruit, vegetables and sea food, adding one new product every quarter.

The company has also lined up an investment of ₹25,000 crore in 65 projects, including 20 integrated factories for consumer goods with logistics facilities, covering an area of 28 million sq ft across the country. Of these, three units will be operational this year, and four more over the next one year.

“Given the fact that the capital employed, and people, is disproportionately higher in new business areas, essentially fast moving consumer goods, we’ll grow there faster. We hope to see the economy get into a new growth trajectory (leading to higher consumption), and we’ll have a faster growth, essentially the non-tobacco segment,” Puri said.

In the year to March, cigarettes accounted for over 60% of ITC’s total revenue of ₹55,002 crore, according to regulatory filings.

Under the eight-point strategy, ITC wants to bring in products and services that are “superior, distinct or new in the market to address future needs of consumers, backed by significant investments in R&D, and make strategic investments in creating physical infrastructure and capacity building, said Puri.