ITC targets supply chain efficiencies to lift FMCG presence

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Kolkata | Published: August 1, 2015 12:30:32 AM

Cigarettes-to-hotel major ITC on Friday said it will integrate its warehousing facilities with each of the manufacturing plants to cut down on distribution...

Cigarettes-to-hotel major ITC on Friday said it will integrate its warehousing facilities with each of the manufacturing plants to cut down on distribution time and cost for non-cigarette FMCG products as it aspires for presence in every category of this segment. It is also using information technology heavily for making its delivery and supply chain efficient.

The Kolkata-based conglomerate said the integration process for the consumer goods category should be completed in 2-3 years. Talking to the media after the company’s 104th AGM, chairman YC Deveshwar said, “We have very ambitious plans. That is why we are creating integrated factories with warehouses so that production and distribution happen at the same place. It will bring in extra efficiency.”

Deveshwar said ITC has filed 351 patent applications as it focuses on developing more Indian brands. These patents are in the areas of agriculture, forestry, foods and consumer goods. “We are going to create Indian brands. We have brought in 350 scientists across the world to develop intellectual properties. We are aspiring to build world-class brands. Before going overseas, we will compete with foreign brands in the domestic market. It will take committed successive leaderships of our company to develop world-class brands, which can compete with major international brands,” he said.

The conglomerate is planning to garner a revenue of at least Rs 1 lakh crore from the ‘new FMCG’ business by 2030.

The new FMCG business includes its non-cigarette fast-moving consumer goods business that comprises packaged foods, personal care, apparel retailing, educational and stationery products and safety matches and agarbattis.
YiPPee! time

ITC said its YiPPee! brand in the noodles segment has stood out from competition on the back of superior quality standards, amid the controversy that has engulfed the segment.

“It is a matter of pride that YiPPee! noodles has stood out for its impeccable quality during the recent controversy that engulfed many other brands in this  category,” Deveshwar said. “Our noodle brand has passed all tests. Nobody has found any fault with them,” he said.

He said the ingredients and raw materials used to manufacture the noodles were also tested at ITC’s in-house testing centre. He, however, said the consumers needed reassurance from the company that the products were safe.

“Because of the unintended consequences, many consumers stopped consumption of noodles. So, we will start an advertising  campaign to reassure them,” Deveshawar said.

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