THE MAKING OF A BELLWETHER

ITC, PRINCIPALLY KNOWN FOR ITS TOBACCO BUSINESS FOR MOST PART OF ITS CORPORATE LIFE, HAS QUIETLY TURNED INTO AN FMCG MAJOR THAT HAS SEEN SUSTAINED GROWTH IN ITS FOODS SEGMENT WITH OTHER CATEGORIES ALSO KICKING IN

- KRISHNA GOPALAN

NOT FOR A MOMENT DOES SANJIV PURI TAKE HIS EYES OFF YOU. “DO YOU LIKE THE MISHTI DOI?” HE ASKS IN A TONE THAT IS QUIETLY CONFIDENT. ONCE YOU REPLY IN THE AFFIRMATIVE, HE SMILES AND OFFERS YOU SOMETHING MORE TO EAT. IN HIS TASTEFULLY DONE UP OFFICE IN KOLKATA, THE CHAIRMAN & MD OF ITC IS THE QUINTESSENTIAL CURIOUS MIND ON CONSUMER TASTES AND WANTS TO PUT THAT TO SOUND MARKETING USE BY LAUNCHING THE RIGHT PRODUCT.

QUALITY IS PARAMOUNT and in two decades, the company, once synonymous with cigarettes, has become a large player in India’s high-growth fast-moving consumer goods (FMCG) business. Now, it has got to revenues of ₹16,000 crore in FY22 spread across four segments—branded packaged foods, personal care, education and stationery, and matches and agarbattis. With a tinge of pride, Puri says the company has created over 25 “mother brands”. He makes it clear that ITC aims to become India’s largest FMCG company. Only the recently-listed Adani Wilmar (₹54,386 crore) and Hindustan Unilever (₹52,704 crore) are ahead of it.

Just to go back in time, ITC, about a decade ago, said its vision was to be an FMCG company with a turnover of ₹1 lakh crore by 2030. That is some distance away but in his usual understated manner, Puri says they will get there. Meanwhile, the share of non-cigarette FMCG and agri business combined is now touching 50 per cent of ITC’s consolidated revenues, while the share of cigarettes has fallen from 49 per cent in FY18 to 39 per cent in FY22. (See graphic ‘The Big Shift’.) Obviously, Puri is looking to sustain the growth momentum that took off from nothing since its foray in 2001 to where it is today.