ITC today said that with government’s policies in place, the consumer demand slump that many industries have been facing for some time can be expected to be alleviated.
One of the biggest FMCG companies in India ITC today said that with government’s policies in place, the consumer demand slump that many industries have been facing for some time can be expected to be alleviated. At ITC’s Annual General Meeting on Friday, Chairman Sanjiv Puri said: “Notwithstanding the recent slowdown in consumer uptake, structural drivers of growth are in place. Given the Government’s strong policy direction, demand can be expected to pick up over time.” The outlook for the consumer market in India is promising with estimates that India could become the world’s third largest consumer market by 2030, according to the World Economic Forum and Bain & Company. In fact, the consumer spending in India is likely to witness a boom to $6 trillion from $1.5 trillion today, he added.
Speaking about the company’s plan for diversification, the newly-appointed chairman said that the business conglomerate looks to foray into new categories and sub-segments in FMCG vertical. This will be supported by multi-dimensional investments and strategic opportunities for acquisitions, Sanjiv Puri said addressing the stakeholders. ITC has also been strengthening its existing brands and products and has launched over 50 products last year itself including Sunbean coffee, Aashirvaad Atta, YiPPee! Noodles, Sunfeast Wonderz Dairy Beverages among others. ITC also forayed into the Frozen Foods segment and the Food Services channel.
Further, ITC sees a lot of potential in the Fast Moving Consumer Goods segment due to rising prosperity level, per capita consumption level and favourable demographics. The company has recorded about one-fourth of its Segment Revenue from the newer FMCG businesses, Sanjiv Puri said. Continuing this, ITC Ltd’s chairman said that the company also has many products in the pipeline for progressive launch. This will “create new levers of growth for the FMCG businesses,” he said at the AGM. Catching up to the start-up trend, ITC is also engaging with the start-up ecosystem.
- The story was first published on www.financialexpress.com on July 12, 2019, at 5:51 pm.