New Delhi/Mumbai: Diversified conglomerate ITC Ltd is increasing its presence in new enterprise segments equivalent to food-tech, wellness, sustainable packaging and agri-tech platforms, as a part of its broader ‘ITC Subsequent’ technique.
Talking on the firm’s 113th annual normal assembly, chairman Sanjiv Puri stated the group is constructing a “future-ready portfolio” to navigate a difficult enterprise atmosphere. He stated the atmosphere was at a important “TURN”—turbulence, uncertainty, fast change and the necessity for novel methods.
“Future readiness will not be merely about adapting to vary, it is about anticipating, innovating and proactively shaping the long run,” Puri stated.
Meals-tech and model extensions
ITC’s food-tech vertical, which mixes its packaged meals, hospitality and digital platforms, has seen a 108% compound annual progress charge over the past three years. Working by means of 4 manufacturers—ITC Grasp Chef Creations, Aashirvaad Soul Creations, Sunfeast Baked Creations and Sansho—the full-stack platform at present runs 60 cloud kitchens in 5 cities and is being scaled up throughout the nation.
In FY25, the firm launched over 100 new merchandise throughout classes equivalent to well being and vitamin, hygiene, naturals, safety and comfort. One such launch is Pranah, a spread of incense sticks and scented candles centered on aromatherapy. “Shoppers are searching for new therapeutic experiences as a part of their wellness pursuits,” Puri stated.
ITC additionally launched Proper Shift, a model aimed toward customers above the age of 40, providing nutrition-based merchandise developed utilizing clinically confirmed pure substances and proprietary formulations.
Frozen meals and acquisitions
The corporate continues to increase its frozen meals enterprise by means of the ITC Grasp Chef vary, which incorporates over 80 SKUs of Indian and Western snacks, breads and seafood. Its acquisition of Prasuma has added greater than 170 frozen Pan Asian meals choices, obtainable in over 100 cities.
ITC’s enlargement into area of interest and premium classes contains Sunfeast Baked Creations, a line of premium cookies positioned for fast commerce channels, and a Japanese Hokkaido milk-based cleaning soap bar beneath its Fiama model.
“We’re additionally introducing new manufacturers and pursuing value-accretive acquisitions to deal with rising alternatives and whitespaces,” Puri stated.
Natural and pure portfolio
He added that the corporate is consolidating its place within the natural section by means of its acquisition of 24 Mantra Natural, which operates throughout 1.4 lakh acres of licensed farmland in 10 states and affords over 100 SKUs. It enhances the sooner acquisition of Yoga Bar and the current funding in Mom Sparsh, a participant within the pure child care house.
“These strategic acquisitions have been structured in a way that enables ITC to achieve from the entrepreneurial zeal of the founders, whereas leveraging ITC’s institutional strengths,” Puri stated.
ITCMaars and agri-tech push
ITC stated its agri-tech initiative, ITCMaars, helps over 2,050 Farmer Producer Organisations (FPOs) and 22 lakh farmers throughout 11 states. The platform integrates companies equivalent to AI-enabled crop advisories, image-based diagnostics, drone purposes, market linkages and entry to inputs and credit score.
To advertise farming-as-a-service, ITC is engaged on constructing an ecosystem of native entrepreneurs beneath fashions equivalent to ‘drone didis’. Puri stated these interventions have led to a 15–20% enhance in yields and as much as 30% enchancment in internet returns for farmers.
The platform is being positioned as a long-term enterprise alternative, alongside its relevance to the core agri and meals segments.
Sustainable packaging and resilience
The corporate’s new packaging companies beneath manufacturers equivalent to Filo, Bioseal and Fyba are positioned as sustainable alternate options to single-use plastics. The Fyba unit in Madhya Pradesh makes use of renewable supplies equivalent to bamboo, bagasse and wastepaper. Puri stated this vertical has grown 2.4x over FY22 ranges.
To handle local weather threat, ITC has undertaken assessments at 140 websites and throughout a number of worth chains. Its ‘local weather sensible agriculture’ programme now covers 31 lakh acres throughout 100 districts, with a goal of 40 lakh acres by 2030. Watershed growth efforts now span 18 lakh acres, enabling estimated annual water financial savings of 1,400 million kilolitres.
“Local weather change is predicted to impression meals safety and livelihoods. Adaptation is now as important as decarbonisation,” Puri stated.
Medium-term investments and provide chain technique
The corporate final yr introduced plans to take a position ₹20,000 crore over the medium time period throughout FMCG, packaging, agri and export-linked manufacturing. Greater than 90% of ITC’s uncooked materials wants at the moment are met by means of native sourcing. Its community of 250+ factories contains built-in client items manufacturing and logistics hubs aimed toward enhancing agility and lowering reliance on exterior provide chains.
Puri stated world disruptions have uncovered the fragility of conventional provide networks. “The necessity to construct agile, diversified and localised manufacturing and provide networks is important to boost resilience,” he stated.
ITC’s merchandise now attain over 260 million Indian households and are current in over 70 world markets. “It’s our agency perception that Indian manufacturers should adorn the worldwide stage, however solely after establishing a legacy in Bharat,” Puri added.
The FMCG main is about to announce its June quarter earnings on 1 August. Analysts at Nuvama Institutional Equities point out an general income progress of 9.9% year-on-year. “The cigarette section is projected to see a 4% year-on-year enhance in volumes, resulting in a 5% rise in internet income and a 3.4% progress in EBIT,” they stated. Ebit is earnings earlier than curiosity and taxes.
Whereas FMCG gross sales are anticipated to develop by 5% year-on-year, Ebit margins are more likely to contract sharply by roughly 22% because of adverse pricing in notebooks, which have the next salience in Q1FY26E, as per the Nuvama report launched in July.
On Friday, ITC shares have been marginally decrease at ₹409.55 on the Nationwide Inventory Trade in a largely weak market.