ITC to invest ₹20k cr in the next 5 years, max in FMCG scetor
Times of India | 27 July 2024ITC is also introducing a new brand for health and wellness sector called Right Shift.
Speaking to reporters after the company’s AGM, Puri said in FMCG it would invest around 35-40% (Rs 7,000-8,000cr) of the projected amount.Paper board and packaging would account for 30-35% while the rest of the investment would be in other businesses, including agriculture.
The investments will be made for capacity augmentation, innovation and upgradation. Puri said the FMCG investments will be made in three-four areas. It would be in Integrated Consumer Goods Manufacturing and Logistics facilities (ICML) to reduce the cost of delivery, apart from new sites and new products.
Puri made it clear that the investments will be more of organic nature though there will be some inorganic component also. Elaborating on plans for paperboard, he said ITC was looking for a new location for the business. “Our site in Bhadrachalam is saturated. We have to look for other sites,” he added.
Speaking on Right Shift, Puri said the brand — nutrition for the 45+ — could be introduced in the next 10 days. The portfolio will include meals, snack items, drinks and others. “Instead of looking back, we want to enable them to look ahead, feel free and explore more, irrespective of age,” Puri said.
The ITC chairman pointed out that the FMCG business had a margin expansion of 100 BPS almost every year. “We would like to maintain this,” he said.
ITC’s non-cigarette FMCG products reach 250 million households with a consumer spend of Rs 32,500 crore. “The drivers of structural competitiveness unleashed by ITC Next strategy reinforce our aspiration to be No.1 in this industry,” Puri said during the AGM.
