The company is aiming to create global Indian brands in the years to come
Kolkata: Diversified conglomerate ITC is aiming to clock in a turnover of Rs 1 lakh crore from its brands in the new fast-moving consumer goods (FMCG) businesses by 2025.
“It is within the realm of possibility that your company can achieve a turnover of over Rs 1 lakh crore from its brands in the new FMCG businesses by 2025/30,” Chairman Y C Deveshwar, said addressing shareholders at the company’s annual general meeting.
The company is aiming to create global Indian brands in the years to come. Its new FMCG businesses have gained traction with the top line having exceeded Rs 7,000 crore in the year gone by, Deveshwar said. The non-cigarette FMCG business will break-even this year and will hopefully be profitable from next year.
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There were, however, problems in the growth path, as Deveshwar pointed out the company has still not been able to invest the Rs 26,000 crore it had outlined three years back. The main stumbling block happened to be land.
“We have invested Rs 2,000 crore in FY13 and should invest about Rs 6,000-7,000 crore this year,” Deveshwar told reporters later in the day.
All the projects of ITC have got delayed primarily due to delay in possession of land. “First, getting land is a problem and then once you get it, conversion for manufacturing is another issue,” he said.
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Unlike other companies, Deveshwar pointed out, ITC would not have to go to banks for funds, it was cash-rich. “We are just waiting to invest,” he said.
As on March 31, ITC’s reserves and surplus stood at Rs 21,497 crore.
Deveshwar said the cigarette business provided the basis for cash flows that were enabling the creation of world class Indian brands in multiple consumer segments.
“They are also the basis for building capital intensive hotels and paperboard businesses,” he added.
ALSO READ: Tobacco, agri businesses push ITC net up 18%
Executive Director Nakul Anand said the hotel business would see an addition of 600-700 rooms in the current financial year. “Five to six properties will be added this year. A total of 15-18 projects are underway which would be a mix of owned and managed hotels,” he said.
The company has recently launched personal care brands such as Essenza Di Wills, Fiama Di Wills, Vivel and Superia which have been well received by the consumer, indicated Deveshwar.
Stressing on the need for having a global identity, Deveshwar said, “The mission is to create unique products, born out of deep consumer insight to win growing consumer franchise and build world class brands that would progressively dominate the Indian global market.”
ITC’s brands such as Aashirvaad and Sunfeast have already garnered annualised consumer spends of over Rs 2,000 crore each. While the former brand is a clear market leader in its segment, Sunfeast Dark Fantasy has emerged as a leader in the premium cream biscuits category, the chairman claimed.
According to him brands like Bingo!, Candyman, and Vivel were estimated to have attracted consumer spends of over Rs 500 crore each.
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