ITC Next Explores Acquisitions, Building Rs 1k Brands

In FMCG business, ITC’s ‘ITC Next’ strategy will continue to prioritize value accretive acquisitions as a core expansion driver and explore new opportunities that address consumer needs to build Rs 1000 crore brands, says Shuvadip Banerjee, Chief Digital Marketing Officer, ITC.

1. ITC has bought a few brands in the recent past. Tell us about how they have enriched your portfolio?

Acquisitions help us fill strategic white spaces and enhance our presence in varied segments. These acquisitions align with the ‘ITC Next’ strategy which prioritizes value accretive acquisitions as a core expansion driver.

2. Can you describe the growth of Rs 1000 crore-plus brands? How big is ITC’s food business in turnover terms and where do you see the business in the next five years?

ITC Foods is one of the largest and fastest-growing packaged foods businesses in India, with a robust portfolio of brands and offerings. Over the last two decades we have invested in building world-class FMCG brands. Several of our brands including Aashirvaad, Sunfeast, YiPPee!,

Sunrise has crossed the Rs 1000 crore mark in terms of consumer spends. Sub-brands such as Dark Fantasy, Bingo! Tedhe Medhe, Mom’s Magic have also crossed the Rs.1000 Cr benchmark. The growth has been driven by a deep understanding of consumer preferences, relentless focus on Quality, Innovation and differentiation.

As part of our ‘ITC Next’ strategy we will continue to explore new opportunities that address consumer needs with focus on innovation, category expansion, deepening consumer engagement and market leadership.

3. In the FMCG industry we are increasingly hearing about premiumization, while food inflation has been a reality. Can you elaborate on this post-pandemic trend? Tell us something about your own steps towards premiumization and how premium products have grown their share in the portfolio?

In the past few years, consumer behaviour has drastically shifted primarily driven by rising health awareness, lifestyle changes, digital influence etc. They are prioritizing products where they see a clear value add rather than just price and quantity. At ITC, ‘Premiumisation’ is anchored on the ‘Value’ we are able to offer to our consumers through our products backed with quality and trust. We are creating offerings for the health seeking new India, growing per capita India, Gen Z, as well as consumers seeking new sensorial experiences.

Few examples to elaborate on our premium play. We recently launched Right Shift a brand designed for consumers who are 40+ which otherwise is an overlooked demographic. The focus is ‘pro-ageing rather than ’anti-aging’. The portfolio includes a range of products with ‘good for you’ ingredients such as oats, millets, seeds, various pulses etc. Likewise, for the GenZ’s and younger audience who always want to experiment with new flavours, variants etc we have Korean inspired products under Bingo! and YiPPee! In biscuit, we have launched a first-to-market product called Sunfeast ‘Wowzers’ – a 14-layer cracker biscuit. In beverages, we have introduced bold desi flavours such as chatpata Kairi, Masala Tadka Chaach etc under Bingo! Tedhe Medhe.

4. How has the business grown for ITC Cloud Kitchen in recent years?

We started in 2020 with one kitchen in Bangalore and today we are present in Chennai, Hyderabad, Mumbai and Pune. We have 4 distinct brands Aashirvaad Soul Creations, ITC Master Chef Creations, and Sunfeast Baked Creations and Sansho by ITC Master Chef serving gourmet and quality food to our discerning consumers. Looking ahead, we aim to scale our business and enter more cities in India.