Exports will make a substantial contribution to the growth of ITC’s value-added FMCG products portfolio, Chairman and Managing Director Sanjiv Puri said addressing shareholders at the conglomerate’s 111th annual general meeting today, “As we achieve scale for ITC’s FMCG portfolio, it is also our aspiration to take these world-class brands to overseas markets. Over time, such exports will make a substantial contribution to the growth of ITC’s value-added FMCG portfolio,” he said in his AGM address. ITC has already established distribution arrangements of ITC’s ‘Proudly Indian’ brands to over 60 countries.

Connectivity and agile supply chain network

The company will also continue to invest in ‘future-ready capabilities to develop new routes to market with strategic partnerships, whilst expanding the breadth, depth and effectiveness of its distribution infrastructure’. For now, ITC products are retailed through nearly 70 lakh outlets across its omni-channel network. “ITC has built state-of-the-art Integrated Consumer Goods Manufacturing and Logistics (ICML) facilities across the country to create structural advantages with leaner operations and smart manufacturing leveraging Industry 4.0. During the year, a new plant was commissioned at Medak, Telangana, taking the total to 10 such modern facilities. In addition, 3 co-located automated logistics centres have been established which together with next generation agile supply chains will enable superior and efficient fulfilment,” Sanjiv Puri said.

Growth from new FMCG businesses

ITC has also launched a considerable number of products recently which have enabled a growth of 25 per cent in revenue during the last two years of the pandemic, reaching nearly Rs 16,000 crores in FY22. “Despite the unprecedented inflationary headwinds, ITC sustained EBITDA margins last year and also improved margins by 650 basis points over the last 5 years,” Sanjiv Puri said.

He also maintained that ITC Next strategy will further fortify and scale up mega brands under the company, including Aashirvaad, Sunfeast, Bingo! and Yippee!. “Over time, these investments together with the unique synergy of ITC’s enterprise strengths will increasingly contribute to growth and profitability, in spite of the gestation costs associated with scaling up nascent categories and new facilities,” he added.