ITC bets on value, not size, in acquisitions

After two testing years for the fast-moving consumer goods (FMCG) industry, ITC beli- eves it can outpace the market. In a video interview, Hemant Malik, executive director of ITC and in charge of its foods and personal care products businesses, tells Ishita Ayan Dutt that growth will come from multiple vectors — ranging from selective acquisitions to premiumisation — supported by early signs of recovery following recent tax cuts. Edited excerpts:

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Over the past two years, ITC has acquired businesses from organic staples to frozen and ready-to-eat food. How central are mergers and acquisitions (M&As) to ITC Foods’ growth strategy?

As an organisation, we were earlier relatively cautious about acquisitions, with our primary focus on building brands from scratch. However, with the ITC Next strategy, we have been actively evaluating acquisition opportunities. Our approach is guided by three strategic pillars: building a future-ready portfolio, focusing on high-growth categories aligned with emerging consumer trends, and acquiring strategic capabilities. Across all three, the principles are, first, to identify areas with considerable headroom for growth and, second, to ensure that ITC can add value by leveraging its enterprise strengths.

In 24 Mantra Organic’s case, sourcing is a key competitive advantage, and given ITC’s agri expertise, we saw a strong opportunity to scale the business. With Yoga Bar, we refined the value proposition after acquisition, with a sharper focus on protein-led offerings. Prasuma strengthened our future-ready portfolio in the frozen food space, while Sunrise stood out for its growth potential in spices.