ITC Ltd’s packaged food business has crossed the Rs 7,000 crore sales mark in 2015-16, a growth of 10.7 per cent over last fiscal. With this, the company’s non-cigarette FMCG brands have garnered annual consumer spend over Rs 12,000 crore, as per disclosure in the recently published annual report.
The conglomerate’s packaged food business touched Rs 7,097.49 crore last fiscal as compared to Rs 6,411.27 crore in 2014-15. In terms of annual consumer spend, Aashirvaad and Sunfeast brands are over Rs 3,000 crore and Rs 2,500 crore respectively while Classmate and Bingo are over Rs 1,000 crore each, as per annual report.
The company said the FMCG industry faced another challenging year with demand conditions remaining sluggish for the third year in succession. “The year also witnessed price deflationary conditions with industry players passing on the benefit of decline in input prices to consumers with a view to bolstering sales volumes,” the company said.
ITC said while it may take few more quarters for the FMCG industry to revive demand, the green shoots of economic recovery, expectations of normal monsoon, low inflation, proposed implementation of the recommendations of the seventh pay commission and the ‘one rank one pension’ scheme augur well for the industry.
ITC last year also commissioned three company-owned manufacturing units for the packaged food business and is currently building over 20 new projects.