ITC has recently announced their renewed focus on its non-cigarette FMCG business as the company has attained healthy growth rate from this segment in recent years. The company plans to double its turnover from this business segment within five years. Speaking further, ITC’s Director-in-Charge of non-cigarette FMCG business, Kurush Grant, said, “Share between the cigarette and the non-cigarette business is 58:42 percent in terms of top line. Non-cigarette business is growing at a faster clip,” ITC’s non-cigarette range includes branded packaged foods, personal care, lifestyle apparel, education and stationery, incense sticks and safety matches
Added further Grant said that the branded packaged food business was fairly big and ITC enjoyed a few advantages. These include sourcing raw materials from the farmers through the e-choupal network, getting the recipes and expertise from the chefs at its hotels “who know how to bring out the best taste … these are natural advantages which we leverage to get the right quality and deliver differentiated offerings to the customer..”
Presently, FMCG market is worth In terms of Rs.2.5-lakh crore. Speaking on growth rate Grant said,” We have bettered industry growth rate.” In an official statement company said that in 2012-13, its non-FMCG segment revenues grew by 26.5 per cent with a positive swing of Rs.114 crore at the PBIT (profit before interest and tax) level.