For ITC Ltd, 2007-08 continued to be year of quiet growth. Just more launches in its relatively new segment of non-cigarettes fast-moving consumer goods, and solid growth. As in the past few years, ITC?s non-cigarettes businesses continued to grow at a scorching pace, accounting for a bigger share of overall revenues. ?The non-cigarette portfolio grew by 37.6% during 2006-07 and accounted during that year for 52.3% of the company?s net turnover,? an ITC spokesman said. In fact, over the first three quarters of 2007-08, ITC?s non-cigarette FMCG businesses have grown by 48% on the same period last year, ?Indicating that its plans for increasing market share and standing are succeeding?.
The branded packaged foods business continued to expand rapidly, with the focus on snacks range Bingo. The biscuit category continued its growth momentum with the ?Sunfeast? range of biscuits launching ?Coconut? and ?Nice? variants and the addition of ?Sunfeast BenneVita Flaxseed? biscuits. Aashirvaad atta and kitchen ingredients retained their top slots at the national level, with the spices category adding an organic range. In the confectionery category, which grew by 38% in the third quarter, ITC cited AC Nielsen data to claim market leader status in throat lozenges. Instant mixes and pasta powered the sales of its ready-to-eat foods under the Kitchens of India and Aashirvaad brands.
In Lifestyle apparel, ITC launched Miss Players? fashion wear for young women to complement its range for men.
Overall, the biscuit category grew by 58% during the last quarter, ready-to-eat foods under the Kitchens of India and Aashirvaad brands by 63%, and the lifestyle business by 26%.
For the industry, the most significant initiative to watch was ITC?s foray into premium personal care products with its Fiama Di Wills range of shampoos, conditioners, shower gels, and soaps. In the popular segment, ITC has launched a range of soaps and shampoos under the brand name Superia.
Ravi Naware, chief executive of ITC?s foods business, was quoted recently as saying that the business will make a positive contribution to ITC?s bottomline in the next two to three years.
In hotels, ITC?s Fortune Park brand was making the news during the year, with a rapid rollout of first class business hotels.
In the agri-business segment, the e-choupal network is trying out a pilot in retailing fresh fruits and vegetables. The e-choupals have already specialised in feeding ITC high quality wheat and potato, among other commodities, grown by farmers with help from the e-choupal information system. In rural retail, ITC plans to grow its network of rural malls branded Choupal Sagars to form the backbone of a distribution strategy.
In the paper business, ITC had already pioneered the production of paperboard using ECF or elemental chlorine-free technology, and has now begun marketing paper cups branded Spectra. With the huge growth in out-of-home eating and the entry of multinational brands and standards, ITC expects this business to grow strongly.
The paper business reported an 11% increase in revenues in the third quarter, backed by better volumes in the value-added portfolio of paper and paperboards and robust performance of the packaging business. As the new fiscal begins, ITC will have added a pulp mill to the business, together with a new paper machine that will increase capacity by 100,000 tonne per annum in 2008-09 and feed its stationary business.
