: Hotels-to-consumer goods conglomerate Ltd on Tuesday said revenues of the company’s packaged consumer goods business grew at a compounded annual growth rate (CAGR) of 14% over the last three years with the business launching 300 products in the same period.

In 2022-23, the company’s packaged consumer goods business comprising brands such as Aashirvaad atta, Sunfeast cookies, Fiama soaps, Engage deodorants, etc. reported revenues of 19,123 crore. Meanwhile, the business reported a 310 basis-point jump in Ebitda (Earnings before interest, taxes, depreciation, and amortization) margins in the last three years, the company said during its Institutional Investors and Financial Analysts Day held on Tuesday. Overall, the packaged consumer goods business (excluding cigarettes) has grown five-fold in revenues since 2009-10. In a presentation to the stock exchanges on Tuesday evening, ITC identified a future-ready portfolio, an efficient supply chain, smart-omni-channel network and value accretive mergers and acquisitions (M&As) as some of the strategic pillars to grow its consumer goods business over the coming years. Meanwhile, the company has also been working on strengthening the core portfolio within brands such as Sunfeast, Bingo, Aashirvaad, Savlon, Sunrise, etc., while also entering adjacent categories such as more kitchen staples under Aashirvaad, smoothies under Sunfeast and shower gels under Fiama, among several other such launches. It is also driving premiumization. had earlier reported that the company is increasingly launching more premium products. For instance, 37% of ITC’s personal-care portfolio is now premium; The number was 26% till two years ago. Similarly, 35% of all packaged foods and beverages portfolio is now premium. ITC is also tapping new areas of growth such as health and wellness products through brands such as Yogabar and Mother Sparsh—brands ITC has invested in. Meanwhile, the company is committed to Ebitda margin expansion by 80-100bps every year. Of the 100bp expansion, 30-40bp will be generated from value-added premium products, 20bp from scale and balance from cost optimisation, said analysts who participated in the company’s analyst day. “Personal care has been comparatively difficult for ITC. It has refreshed the personal-care portfolio in the last few years. It will stay invested in this category and is currently focusing on areas with low penetration. The company has done two acquisitions in the last eight years in personal care,” said Abneesh Roy of Nuvama Securities in a post-meet update on the company. In terms of M&As, the company will focus on value accretive businesses and will not run for just growth, he said. Its Aashirvaad brand of kitchen staples has crossed 8,000 crore in consumer spends last fiscal, the company added; while Sunfeast crossed over 5,000 crore. Other brands such as Bingo! chips, Yippee! noodles, Sunrise spices, Classmate notebooks and Mangaldeep incense sticks commanded upwards of 1,000 crore in annual consumer spends last fiscal. “ITC is building a large future-ready, competitive and resilient FMCG business for today and tomorrow with focus on growth with higher profitability,” Sanjiv Puri, chairman and managing director of ITC, said. “A digital superstructure—DigiArc has been put in place to create a smart enterprise ecosystem utilising AI, Industry 4.0, etc. spanning insighting to product development, supply chain to distribution and content to commerce-raising efficiencies, enhancing agility and enabling higher order competitiveness. Digital commerce is growing at a fast pace. New vectors of growth being pursued through higher value added products and services, opportunities at the intersection of digital and sustainability,” he said. Livemint tops charts as the fastest growing news website in the world to know more.
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