Key Takeaways
- ITC Ltd’s food-tech business is seen as a major growth area, achieving a CAGR of 108% since launch.
- Consumer trends indicate increasing demand for health, wellness, and premium products, especially among younger generations.
- ITC is focusing on internal efficiencies and strategic pricing to navigate a challenging demand environment.
ITC Explores New Growth in Food-Tech
Sanjiv Puri, Chairman and Managing Director of ITC Ltd, announced that the company’s food-tech business is envisioned as a significant growth vector, emphasizing segments like health & wellness, nutrition, and functional foods as future megatrends. During ITC’s 114th Annual General Meeting, Puri highlighted that the food-tech initiative, which integrates ITC’s strengths in food, hotels, and digital technologies, has realized a compound annual growth rate (CAGR) of 108% since its inception.
Under the food-tech platform, ITC has launched four distinct brands: Master Chef Creations, Aashirvaad Soul Creations, Sunfeast Baked Creations, and Sansho by ITC Master Chef. The platform has expanded to 60 cloud kitchens across five cities, with plans for further expansion throughout India.
Puri noted that India’s consumer market is on the brink of a significant transformation, anticipating per capita incomes to surpass $4,000 by 2030. With Generation Z expected to account for half of all consumer spending by 2035, and Generation Alpha growing up in a digital world, their preferences are increasingly influencing market trends. “Consumers will demand premium products and personalized, purpose-driven experiences,” Puri stated, pointing to health-based and organic products as key growth areas.
The Chairman acknowledged the challenges faced by ITC’s non-cigarette FMCG business amid a soft demand environment due to external factors like inflation and climate change. However, he pointed out that rural demand is showing signs of improvement. In response, the conglomerate is adopting strategies to enhance internal efficiencies and recalibrate pricing.
Looking ahead, Puri is optimistic about demand recovery, expecting improvements as interest rates stabilize, weather conditions become more favorable, and inflation remains subdued. The company’s diverse capabilities position it well to capitalize on these evolving consumer trends and offer innovative value propositions.
As ITC continues to embrace these changes, it aims not only to adapt but also to lead in meeting the evolving expectations of India’s increasingly conscientious consumers.
The content above is a summary. For more details, see the source article.
