ITC Ltd will focus on nutrition, health and well-being for the FMCG business, chairman and CEO YC Deveshwar said.
“Most of ITC’s businesses are well positioned to contribute, in good measure, to the triple bottom line objectives of the company. However, it is the new FMCG businesses, through the establishment of world-class Indian brands, that hold the highest promise for value-creation, both for the company and for the Indian economy,” he said addressing shareholders during the company’s 105th Annual General Meeting on July 22, 2016.
“World-class brands lend a huge intangible value to products and services, enabling them to command a premium and loyalty from consumers. When a country’s institutions build world-class brands, they enrich its economy. Successful brands are not only a perpetual source of value-creation but also a badge of honour for the country of their origin,” he said.
“The mission to create world-class brands in India must, therefore, assume the fervour of a national movement. Such world-class Indian brands will help create, capture and retain larger value for the economy,” he added.
He explained that creating a new generation of world-class brands demands tremendous staying power with substantial investment commitment over the long haul, along with deep consumer insight, continuous application of cutting-edge R&D, differentiated product development capacity, state-of-the-art manufacturing, and an extensive trade marketing and distribution network.
“I am happy to be able to state that in a short period of a decade, ITC has been able to build many successful brands that are fast gaining strength. Consumer spend in the new FMCG brands today is almost twice the size of ITC in 1996,” he said.
The 25 newly created mother brands of ITC – spanning a wide range of goods – are expected to continuously expand consumer franchise.
Some of the noteworthy brands include Aashirvaad, Sunfeast, Bingo!, YiPPee!, B Natural and Candyman in the foods space; Fiama, Vivel, Engage and Savlon in the personal care arena; Classmate in the Education and Stationery segment; Wills Lifetstyle and John Players in Lifestyle Apparel; Mangaldeep in Agarbattis and Aim in the Matches segment.
“ITC aspires to be the No 1 player in the new FMCG businesses and has set a revenue target of Rs 1,00,000 crore by 2030,” he said.
Deveshwar said the the capability to drive superior efficiencies in supply-chain management is critical to sustaining the competitiveness of ITC’s FMCG businesses.
“ITC is investing substantially in physical infrastructure assets close to markets to reduce wastage from multiple handling and transportation by co-locating manufacturing and distribution facilities. Around 20 such modern Integrated Consumer Goods Manufacturing and Logistics facilities are under development. This will substantially enhance supply-chain efficiency at much lower cost,” he added.
ITC Plans Multiple Projects With Rs 25,000 crore Outlay
ITC Ltd has planned multiple projects with an outlay of Rs 25,000 crore over the next five years, Chairman and Chief Executive Officer YC Deveshwar told shareholders on Friday.
Unfortunately the weak cold-chain infrastructure and the virtual absence of well-established end-to-end players impede the growth of processed food industry, more so in the case of perishables where it is most needed, Deveshwar said at the company’s 105th annual general meeting.
“It is for this reason that your company is exploring the opportunity to invest in a state-of-the-art cold chain to cover farm produce, including fresh, frozen and dehydrated fruits and vegetables,” he said.
He said he advocates for synergy of superior agri-sourcing and culinary expertise.
“Such synergy is expected to infuse competitiveness to your company’s Sunbean brand of premium coffee that is due to be launched shortly,” said Deveshwar.
He said the company has engaged with farmers to implement an integrated farm management programme to grow high quality super safe spices.
“A new range of such spices, tested for as many as 450 contaminatants at par with European standards, in comparison to only 10 in the domestic market, will be available shortly for the Indian health-concious consumer,” he said.