Multi-conglomerate ITC said consumer spending on the company’s FMCG products has increased 4.6 per cent to nearly Rs 34,000 crore in FY25, and the firm has expanded its play with 100 new products in the segment. The company also stated that novel technologies are continuously being leveraged to drive creation of healthier foods through systematic reduction in salt, sugar and fat without compromising on sensory attributes.
In its latest annual report, ITC highlighted that innovative science-based platforms and superior sensory attributes continue to drive creation of healthier and superior foods. In addition, research efforts continue towards reduction in salt, sugar and fat without compromising on sensory attributes. Efforts are also underway to increase nutrients that are beneficial for health/nutrition like fibre, vitamins and minerals.
The company noted growth in the premium portfolio was accelerated through increased visibility, focus on target cohorts and jointly curated campaigning, including collaborating on topical events across accounts. Digitally enabled sales have grown rapidly in recent years and, together with Modern Trade, now account for 31% of your Company’s FMCG7 portfolio (Vs. 17% in FY 2019-20).
ITC acknowledged challenges in the FMCG segment during the year, including muted consumer demand and heightened competition from regional and local players. Additionally, rising input costs — particularly for edible oil, wheat, maida, potatoes, and cocoa, significantly impacted margins, especially in the latter half of the financial year.
To address these pressures, ITC implemented cost management measures, strategic pricing, and product premiumisation. The company defines consumer spending as the total expenditure by consumers on its goods, which includes net sales turnover, channel margins, and taxes.
The FMCG division now features over 25 Indian brands, developed primarily through organic growth and leveraging internal synergies. Key brands such as Aashirvaad (branded atta), Bingo! (bridge snacks), Sunfeast (cream biscuits), and Classmate (notebooks) are market leaders in their respective categories.
ITC reported Rs 21,981.57 crore in revenue from its FMCG businesses. The firm is focusing on building a future-ready portfolio, emphasizing value-added product extensions and deploying omni-channel strategies and supply chain enhancements for rapid growth.
Over the past year, more than 100 new products focusing on areas like health and nutrition, hygiene, convenience, indulgence, and personal care were launched, supported by ITC’s Life Sciences and Technology Centre (LSTC) and agile product development teams.
The company’s current strategy centers on tapping into high-growth categories and value-added segments by leveraging its strong portfolio of 25 core brands.
