- India’s third-largest listed food company ITC saw it’s food business reach the Rs 10,000 crore sales mark in the financial year 2019-20
India’s third-largest listed food company ITC saw it’s food business reach the Rs 10,000 crore sales mark in 2019-20, cutting Britannia ‘s lead to around Rs 600 crore. Nestle India is a segment master.
ITC’s Aashirvaad brand’s retail sales crossed Rs 6,000 crore in last fiscal sales, rising by more than 30%, as recorded in the latest annual report. That makes the company one of the biggest in India’s food market.
According to the annual report, ITC ‘s food sector grew by 7.3 percent with gross sales of Rs 10,377.73 crore in FY20.
On the other hand, biscuit manufacturer Britannia Industries NSE 0.06 percent had last fiscal clocked revenue of Rs 10,986.68 crore. The gap in revenue between Britannia and the food company of ITC in FY18-19 was more than Rs 810 Crore. Nestle is India’s largest listed food company with the last fiscal revenue of 12,368.9 crore Rs.
ITC ‘s Chief Food Business Officer Hemant Malik said that growth across different food categories has been driven by a strong portfolio of world-class brands, a slew of first-to-market creative offerings, a range of distinctive products tailored to meet the changing needs of customers, diverse regional tastes and preferences, as well as growing wellness segment offerings.
He said Aashirvaad atta has improved its regional standing market and reached more than 3.6 crore households. In June this year, according to IMRB data, Aashirvaad achieved its highest ever volume share of 39.2 percent within the branded connection market.
ITC, which has ambitions to become India’s largest FMCG firm, places heavy bets on the food sector to achieve its target and reduce reliance on the flagship cigarette sector which has been under volume pressure due to repeated tax increases. The last fiscal food company accounted for 80 percent of the total revenue of ITC’s FMCG.
The Sunfeast biscuit brand is the second-largest FMCG brand by ITC that clocked Rs 4,000 crore and retail sales of bingo Snacks in last fiscal was Rs 2,700 Crore.
ITC is a market leader in the fields of packaged atta, snacks bridges, cream biscuits, notebooks, and the second largest in the snacks and potato chips category, instant noodles, deodorants, and agarbatti.
Due to the Covid-19 lockdown that affected overall FMCG business results last year, however, the company’s stationery products business took a beating in January through March segment.
