In a bid to sustain its competitive edge in the Rs 82,000-crore Indian FMCG industry, ITC is drawing up a blueprint for growth in the second quarter of FY10. To start with, ITC Foods is planning to extend its distribution network and manufacturing capacity to pump up volumes. The company’s strategy also included driving consumer franchise, improving market servicing and driving supply chain efficiencies, said Chitaranjan Dhar, chief executive officer of ITC Foods. ?The business is focusing on improving its margin profile with specific cost management actions too,? he said.
On the other hand, ITC Personal Care is investing behind consumer engagement campaigns and innovative offers to drive volumes in the overcrowded category. Innovation seems to be the name of the game at ITC.
On ITC Foods’s expansion plans, Dhar sadi that the company was planning to enhance its manufacturing capacities for different categories in different parts of India. “We are looking at expanding facilities for biscuits, staples and confectionery. The company is looking at manufacturing facilities in southern and eastern India,” he said. According to Dhar, the company is looking at new product launches to meet the changing needs of consumers in Q2. “We will be hiking our advertisement budget to announce new launches in Q2 FY10. Our main goal is to accelerate growth and drive volumes in Q2,” he added.
Sandeep Kaul, CEO, Personal Care, ITC, said: “Our core focus would be on continuing engagement with potential consumers on a 360 degree basis. We would also be offering new innovative offers based on our insights.”
According to Kaul, product development and research are being leveraged in a focused manner to build brand equity. “Investments in tax exempt manufacturing capacities being undertaken will provide benefits of assured quality, flexibility and cost advantages. The aggressive communication strategy with appropriate celebrity association backed by focussed consumer activation programmes is expected to build appreciable brand franchise,” he added.