Sanjiv Puri, the Chairman and Managing Director (CMD) of ITC Limited, recently shared his views on the fast-growing Fast-Moving Consumer Goods (FMCG) industry in India. Puri believes that India’s rapid economic growth is directly linked to the growth of the FMCG industry. With the government’s focus on sustainable and inclusive growth, coupled with policies to accelerate physical and digital infrastructure, India is poised to become a global manufacturing hub. The FMCG sector, with its immense potential, is expected to play a crucial role in this transformation.
Puri highlights that an aspirational society and a young demographic are contributing to the growth of the consumer market in India. As per experts, consumption rises significantly when per capita incomes cross $4,000, a milestone expected to be achieved by India by 2030. This rise in income levels, coupled with increasing consumer preference for trusted brands, convenience, health and wellness products, and premium offerings, presents immense opportunities for the FMCG sector.
In 2024, Puri envisions a rising Bharat with unbounded aspirations, massification of digital access, and democratisation of premiumisation, which will further broaden opportunities for the FMCG sector. The increasing penetration of digital technology and access to gainful markets for farmers through initiatives like ITCMAARS (ITC’s Agri and Rural Services) will create newer opportunities for growth.
He also emphasises the critical importance of transforming the agricultural sector to unleash FMCG growth through a virtuous cycle of consumption, investment, and income. ITC has launched an extensive Climate Smart Agriculture program to build climate resilience and secure livelihoods for farmers. Additionally, initiatives like ITC’s Mission Millets promote sustainable agriculture and consumer awareness, contributing to the growth of the FMCG sector.
RTM Watch’s Take
Sanjiv Puri’s positive outlook on the FMCG industry in India aligns with the country’s galloping economy and the government’s focus on sustainable growth. The rising consumer market, increasing incomes, and changing consumer preferences present significant growth opportunities for FMCG companies. With ITC’s initiatives in climate-smart agriculture and sustainable practices, the company is well-positioned to capitalise on these opportunities. The FMCG sector’s growth will not only contribute to India’s economic development but also fulfil the aspirations of a rising Bharat.
