Diversified conglomerate ITC’s portfolio of non-cigarette FMCG brands represented an annual consumer spend of over Rs 24,000 crore for FY22, registering around 9% year-on-year growth.
The portfolio of non-cigarette FMCG brands, which includes Aashirvaad, Sunfeast, Yippee!, Bingo!, Savlon and B Natural, among others, had witnessed an annual consumer spend of over Rs 22,000 crore for FY21. The conglomerate, which released its annual report for FY22 on Wednesday, said the pandemic has led to a “marked shift” in consumer behaviour, increasing the demand for products focusing on health, wellness, safety and hygiene.
“Preference for trusted brands is on the rise. There is a significant demand for convenience, natural and organic. It is therefore critical for organisations to not only deal with the immediate context, but also speedily spot evolving trends and leverage their institutional strengths to design, develop and deliver products and services to consumers ahead of time,” it said, and added that the ITC Next strategy aimed to achieve the next horizon of growth by revitalising its offerings to address the fast evolving trends and consumer preferences.
Notably, HSBC, in its note on ITC in May, said the non-cigarette FMCG business is “a growth engine” for the cigarette-to-FMCG-to-hotel major, offering long-term structural double-digit revenue growth and rising margins.
According to the company, value-accretive acquisitions, joint ventures and collaborations continue to be proactively pursued towards accelerating growth and value creation.
ITC, in its annual report for FY22, said the non-cigarette FMCG segment turned in a resilient performance, with segment revenue growing by 8.6% amid subdued demand conditions.
“After a relatively muted first half, revenue in the second half of the year witnessed double-digit growth,” it said.