ITC Limited is looking to increase its share in the Rs 2,500 Crore packaged fruit juice market in India to about 20% in the next five years from 7% at present.
ITC Limited, the diversified conglomerate with business interests in cigarettes, FMCG, lifestyle, apparels, hospitality and more, is looking to increase its share in the packaged fruit juice market in India to about 20% in the next five years from 7% at present, the company’s food division’s head Hemant Malik said. ITC started out in the juice segment in 2015 by acquiring B Natural brand.
The FMCG company is the third largest juice maker, after Dabur, which is in the top spot with its Real and Real Activ brands, and PepsiCo India’s Tropicana, which is at the second position.
“We are going to add 2-3% market share every year and in next five years, it should be around 18-20%” Malik told PTI. He added that the Market research firm Nielsen has estimated the packed juice segment market to be (worth) around Rs 2,500 crore and growing rapidly. He said that to expand its juice product portfolio, ITC is focusing on local flavours and will sell them under the same local name such as ‘Kinnow’ and ‘Jamun Joy’ under the B Natural brand. “Today we have added pomegranate,” Malik said.
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Apart from adding new flavours and focusing on local fruits, the company is also expanding its sales network to meet the lofty targets. It has also engaged Bollywood actress Shilpa Shetty as a brand ambassador for B Natural juices and beverages.
Commenting on network expansion, Malik said: “as the category is very less penetrated, the focus is to make it available to a wider range of consumers”.
ITC also plans to increase retail points of its luxury chocolate brand “Fabelle” and take it outside its hotels the only places where it is available currently. Another product, ITC is looking to take pan India is its Pure Cow’s ghee. Currently, the ghee brand is available only in Kerala, Karnataka and Tamil Nadu. Malik said, “We are (improving) our supply chain to make sure we will be able to get sufficient quantity of cow’s ghee and then we will be taking it across (the country).”
In the past one year, ITC shares have gained 28.27%, whereas the benchmark S&P BSE Sensex gained 19.75% and the S&P BSE FMCG Index gained 20.99%. Today ITC is up 2.43%, currently trading at Rs 280.15.