ITC open to acquisitions in non-cigarette FMCG business

By: | Published: July 28, 2018 4:18 AM

Eyeing further growth in the non-cigarette FMCG business, the country’s largest cigarette maker, ITC, is open to acquisitions and is also planning to launch around 30 new products, mostly innovative, this fiscal.

itc, itc shareThe company said it is pursuing a long-term strategy to build a cost-effective cold chain infrastructure for preventing agricultural wastage.

Eyeing further growth in the non-cigarette FMCG business, the country’s largest cigarette maker, ITC, is open to acquisitions and is also planning to launch around 30 new products, mostly innovative, this fiscal. “We can also do something organically,” Sanjiv Puri, managing director of the diversified conglomerate, said during a media conference after the 107th Annual General Meeting.

The company may explore the possibility of acquiring ‘Horlicks’ brand, but it is not interested in buying ‘Complan’. “If it is (available) at a right price, why not? But I don’t think bid is now open for that,” Puri told reporters when asked whether the company is interested in acquiring Horlicks. Reportedly, GlaxoSmithKline (GSK) is exploring a possibility of selling its dietary supplement brand.

On Complan, the MD, however, said, “That is a very clear no (for acquisition).” According to media reports, Kraft Heinz is also considering a sale of children’s energy drink brand Complan in India.

In the last financial year, ITC had launched 30 new products in non-cigarette FMCG segment. “This fiscal similar number of products will be launched,” Puri said.

The company said it is pursuing a long-term strategy to build a cost-effective cold chain infrastructure for preventing agricultural wastage. “Recognising the crucial need to unlock the lost value trapped in agri-wastage, our company is actively pursuing a long-term strategy to build a cost-effective cold chain that will contribute to raising rural incomes and lend a new growth driver to the company’s agri-business,” chairman YC Deveshwar told shareholders during the AGM.

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