The leading FMCG company ITC, which manufactures Ashirwad Atta and Sunfeast biscuits, is now moving towards a big change. This company, which made its name mainly through cigarette business for decades, is now placing a big bet on the health of the countrymen. In a special interview given at ‘Virginia House’, the company’s headquarters located on the famous Chowringhee Road in Kolkata, Chairman and Managing Director Sanjeev Puri made it clear that his next goal is to provide protein and fiber rich items to people’s plates. The company’s focus now is on those who are buying packaged food for the first time, as well as on urban consumers who are using weight loss drugs and who need more nutrition.
Reason for entering health market
Per capita consumption in India is still quite low, but the market is changing rapidly. People taking weight loss drugs (GLP-1) like Ozempic need more protein to maintain their muscle mass. The company wants to capitalize on this need. According to Sanjeev Puri, there is a huge shortage of protein in India. To overcome this, the company has launched products like high-protein flour, soya chunks and protein shake in the market. This portfolio is being continuously expanded through brands like Yoga Bar. Puri himself has recently lost six kilos of weight. He now prefers home-cooked food and even takes his food with him on long flights.
New strategy will be based on cigarette profits
Even though ITC is expanding rapidly in the business of personal care, agriculture, paperboard and hotels, the company’s main source of income is still cigarettes. If we look at the figures for the financial year 2025-26, the share of cigarettes in the total turnover of the company has been 41 percent. However, in terms of profit (EBITDA) this figure is 82 percent. Despite the recent huge increase in taxes, the company is increasing the prices gradually instead of increasing the prices all at once so that the illegal trade does not affect the business. Sanjeev Puri clearly says that his ultimate goal is to become the number one FMCG company in the country even without cigarettes.
Effect of recession on economy neutralized
Amidst rumors of recession in the market, ITC Chairman believes that at present there is no decline in consumer spending in India. Despite global uncertainties and inflation, the Indian economy is growing strongly. The government’s tax relief measures, infrastructure spending and rising rural investment have kept the market afloat. However, the company is definitely cautious about weather related risks like El Niño.
Huge investment in preparing for the future
Keeping in view the demand, ITC has prepared an aggressive strategy. The company is going to make a big investment of about Rs 20,000 crore in the hotel, manufacturing and consumer product business in the medium term. Fresh foods business is an important part of it, which is growing at the rate of 100 percent annually since its inception. At present, it has 70 kitchens running in five cities, which are now being planned to be expanded in North India also. Apart from this, there is also special emphasis on exports. The company’s total exports have doubled in the last six years. The company’s profit margin has also improved on the basis of better supply chain and premium products and a target has been set to increase it by 80 to 100 basis points every year.
Leave a Reply