ITC has emerged as the leading fast-moving consumer goods (FMCG) manufacturer in the food sector, outpacing competitors like Adani Wilmar, Britannia, and Parle Products, according to recent data from market tracker NielsenIQ. In the nine months leading up to September, ITC secured this position based on domestic sales, reaching a substantial ₹17,100 crore in food FMCG sales. This surge propelled ITC ahead of Britannia at ₹16,700 crore, Adani Wilmar at ₹15,900 crore, Parle Products at ₹14,800 crore, Mondelez at ₹13,800 crore, and Hindustan Unilever Ltd (HUL) at ₹12,200 crore, as per NielsenIQ data.
This signifies a significant leap for ITC, having climbed from the fourth position in the previous year, which was dominated by Adani Wilmar. NielsenIQ data from the same period in the preceding year reported Adani Wilmar’s sales at ₹16,100 crore, Britannia’s at ₹14,900 crore, Parle’s at ₹14,800 crore, and ITC’s at ₹13,900 crore.
Industry executives attribute ITC’s ascension to a noteworthy decrease in edible oil prices. The plummet in prices affected Adani Wilmar, the nation’s largest edible oil company, which witnessed a decline in revenue. Edible oil prices dropped to less than $1,000 per tonne in September from a high of $2,000 per tonne in April-May 2022. Concurrently, ITC profited from an increase in atta prices, especially from its Aashirvaad brand, a key revenue contributor to its food business.
Moreover, ITC boasts a broad product portfolio that is experiencing growth across various categories, with the company consistently introducing over 100 new food FMCG products each year. Hemant Malik, ITC Ltd’s Executive Director, emphasised that every product category within the company’s food business has contributed significantly to this fiscal year’s growth. ITC’s portfolio includes high-growth segments like biscuits, witnessing an 11% growth this year, and salty snacks, experiencing a market growth of over 20%, Malik highlighted, overseeing ITC’s foods business.
He underscored that the current market trends, along with the surge in atta prices, have played a pivotal role in driving revenue growth for the company. This surge has not only propelled ITC to the forefront of the FMCG food sector but also demonstrates a growing investor interest in Indian FMCG-focused companies.
