How ITC succeeded in pivoting from its traditional tobacco business to FMCG under Sanjiv Puri
ITC’s pivot to fast moving consumer goods (FMCG) has helped the company to not just diversify and reduce dependence on its traditional tobacco business, but to also give a clear road map on its next stage of growth.
A look at ITC’s top line shows the revenue share of its tobacco business has nearly halved—from 62% in FY14 to 37% in FY23. This change can’t come about unless you understand the Indian consumer. Sanjiv Puri, chairman and managing director of ITC, is among the few executives who has a finger on their pulse.
In an exclusive interaction with ET, Puri talks about how the FMCG behemoth came to be.
For ITC, it has been a tale of where there is a consumer, there is a way. “We want to be present in every sphere where a consumer is consuming products,” says Puri. Much of ITC’s turn towards FMCG has been about creating the “right to win”, he adds.
Also read | ITC Next: How do you turn around an elephant and make it dance?
Puri, 61, has been working with ITC since January 1986 and was handed the top spot in May 2019.
He’s been around long enough to gauge the needs of Indian consumers. Under him, the company seeks to double down on its emphasis on consumer goods under ITC Next, which began in 2017.
BEGINNINGS OF FMCG
In some way, this journey began in 1991. Foreign players were set to enter the Indian market in a big way.
Doors were opening up, and ITC took note of the change in the air. ITC, which began as the Imperial Tobacco Company in Kolkata, has had a presence in the tobacco industry for over a century. It later realised the limited legroom for growth in it, given the changing attitudes towards cigarettes, and found a new route to thrive long term.
“When we started exploring this diversification, the Indian
