ITC Ltd to diversify tobacco and hotel businesses
ITC Foods business expands global footprint to over 50 countries – Times of India (indiatimes.com)
ITC plans to expand its offerings in categories such as chocolates and staples, after a foray into cakes and milkshakes, as it tries to boost its food portfolio. It should be noted that ITC is expecting to launch chocolate packs that would range between Rs 5 to 10. For starters, the company has already installed chillers in shops in North India.
Towards, the end of the quarter the consumer goods company is also eyeing to launch rice and pulses under its Aashirvaad brand. Currently, ITC is positioned in the premium space of selling salt, atta and ghee under the Aashirvaad brand. ITC’s new products will be available in a month.
Through the product launches, the company is working towards generating Rs 100,000-crore revenue from its fast-moving consumer goods business.
To kickstart its latest production line, the company has already launched three variants of cakes under the Sunfeast Caker brand at Rs 10 a pack, and three flavours of Sunfeast Wonderz Milk priced at around Rs 25-35. It could be strategically seen that placing these newly added products let them compete with Britannia in the cakes and biscuits segments, and with Amul in the milkshakes category.
ITC invested Rs 50 crore as of March 2021 in the subsidiary, however, only steady progress has been made during 2020-21 in the project’s construction activities.
Abneesh Roy, executive director of institutional equities at Edelweiss Securities, noted that the conglomerate is diversifying its flagship tobacco business into manufacturing nicotine and nicotine salts for exports to the US and European Union markets to capture the growing demand for nicotine-based oral and vaping products there.
ITC has its headquarters in Kolkata and inspite of the raging wave of the pandemic, they have announced to expand its presence in markets that are seeing a rise in global demand such as the US, Canada, Australia and New Zealand, the UK, Germany, Netherlands, Italy, Sweden, UAE, Saudi Arabia.