ITC targets underpenetrated products in FMCG space to push growth | The Financial Express

ITC targets underpenetrated products in FMCG space to push growth

To make the categories more appealing to the customers and improve sales, the company would be improving affordability, focus on price points, innovation, relevance, make it more attractive, Satpathy said.

ITC targets underpenetrated products in FMCG space to push growth
Beauty and personal care categories are being seen as high growth segments in the long-term by various FMCG players along with direct to consumer brands given the per capita consumption in personal care is still low in India.

ITC’s personal care division which boasts of products like soaps, shower gels, cream, shampoo, deodorants and perfume sprays sees growth opportunities in fragrances and shower gels going ahead given the categories are underpenetrated in the country.

“A lot of categories in India are underserved and under penetrated and have huge headroom to grow. So it is on us to leverage these opportunities with superior, differentiated and innovative offerings. So whether it is shower gel or fragrances, we are focused on growing those segments,” said Sameer Satpathy, chief executive, personal care told FE. Shower gels are something that are not well penetrated in even urban area, Satpathy said.

To make the categories more appealing to the customers and improve sales, the company would be improving affordability, focus on price points, innovation, relevance, make it more attractive, Satpathy said.

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Beauty and personal care categories are being seen as high growth segments in the long-term by various FMCG players along with direct to consumer brands given the per capita consumption in personal care is still low in India.

However, in the last few months, sales in discretionary beauty and personal care have been a bit subdued due to inflationary pressures. According to retail intelligence firm Bizom, personal care items showed de-growth during festival month of October because of inflation.

FMCG companies also hiked prices of their products in the past one year to pass on the higher cost in raw materials like palm oil, packaging cost to customers.

However, Satpathy said that ITC revised down the prices of Vivel soap in the last two-three months as palm oil prices eased from peak. “Soap prices had gone up because of increase in raw material cost and as they have cooled down, we have passed on that back to consumer,” Satpathy said.

Market sources say that the prices in Vivel soap have been reduced 15-20% in the last two months.

Satpathy said that there has been good growth in personal care segment post pandemic with mobility being restored and economic recovery taking place.

ITC’s personal care portfolio includes brands like Fiama, Vivel, Engage, Savlon, Charmis, its neem range consisting of Nimyle, Nimwash and Nimeasy.

During July-September, within the personal care products business, the fragrances category registered strong growth driven by Engage, Fiama and Vivel, the company said while the ‘hygiene’ category remained subdued, though significantly ahead of pre-pandemic levels, it said.

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First published on: 08-12-2022 at 01:00 IST