ITC rolled out more products in FY20 despite slowdown

Diversified conglomerate ITC launched 60 new products in the non-cigarettes fast-moving consumer goods (FMCG) space during FY20, bettering its earlier record, in a year marked by slowdown. During FY19, it launched over 50 new FMCG products, which was a record number for the company. The FY20 launches, however, were in a testing environment.

ITC said in its annual report that in the initial stages, the contagion had a significant impact on the hotels and education and stationery products businesses as it coincided with the peak season and the onset of the school session, respectively. “Operations of all businesses were impacted towards the close of the year as the pandemic gained momentum,” the report mentioned.

It also said that actions of the government and the RBI had supported confidence building measures but further measures might be warranted to improve demand.

ITC'S non-cigarettes FMCG segment, particularly the essentials portfolio, reaped the benefits of increased in-home consumption. Some of the brands saw growth of as high as 50 per cent.

From pre-covid levels, Yippee! noodles, for instance, saw a growth of 50 per cent, Sunfeast Marie, too, clocked in a similar growth. Overall, Sunfeast biscuits has seen a growth of more than 20 per cent. Demand for branded packaged food products like Aashirvaad atta has also seen an unprecedented surge.

“ITC Master Chef frozen snacks has also expanded to 70 cities during this time. Our range of hygiene products also witnessed robust growth in record time,” Executive Director B Sumant said.

The only dampener now is localised lockdowns. “The temporary lockdowns, which is required to contain the increasing spread of the pandemic, can cause temporary and localised disruptions to manufacturing and the supply chain,” Sumant said.

However, he said that given ITC'S distributed capacity, efforts had been made to ensure adequate stock availability of its FMCG products in the market across these states.