ITC, a diversified conglomerate in India, has experienced significant growth in its FMCG (Fast-Moving Consumer Goods) business over the past three years. With a compound annual growth rate (CAGR) of 14%, ITC’s FMCG business has seen remarkable success. The company’s foods business has witnessed a CAGR of 13% over the past ten years and has achieved three times growth in the last decade. Aashirvaad, one of ITC’s flagship brands, has emerged as a Rs 8,000 crore brand, reflecting its popularity among consumers.
This growth can be attributed to ITC’s focus on developing strong brands that resonate with consumers. The brand offers a range of products, including atta (flour), ghee, salt, spices, and instant mixes. Since its inception in May 2002, Aashirvaad has become the number one branded packaged atta across the country. To add to this, Sunfeast has crossed Rs 5,000 crore in terms of consumer spends, while brands like Bingo, Yipee, Mangaldeep, Classmate, and Sunrise have crossed Rs 1,000 crore in consumer spends.
ITC’s Strategic Approach
ITC has been proactive in strengthening Aashirvaad’s presence in the kitchen through adjacencies. The company has expanded its product range and focused on creating newer vectors of value addition to up-trade consumers. With over 25 world-class mother brands in the FMCG segment, ITC has achieved a consumer spend of Rs 29,000 crore in FY 23. The company has also launched 300 new products in the FMCG segment in the last three years, expanding its reach to 7 million outlets and 2.6 million households.
RTM Watch’s Take
ITC’s impressive growth in its FMCG business, specifically Aashirvaad’s rapid rise, showcases the company’s ability to develop and nurture successful in-house brands. The consistent focus on innovation, expanding product portfolios, and creating value for consumers has contributed to ITC’s remarkable growth in the FMCG sector. As ITC continues to strengthen its presence in the market, it is expected to further consolidate its position as a leading player in the FMCG industry.
