ITC Foods targets growth in north and west India amid shift to branded products

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Subscribe to enjoy similar stories. ITC Ltd will continue to scale its existing food brands and look for opportunities in the premium segment, as multitudes in India's relatively poorer parts, such as Bihar, Uttar Pradesh, and Rajasthan, are entering the consuming class, potentially boosting demand for branded food products, a senior company official said. The Kolkata-based fast-moving consumer goods (FMCG) company, which operates in categories such as staples, snacks, health foods, dairy and beverages, is also open to acquisitions to bolster its brand portfolio and drive growth, hinting at a couple of deals shortly.

ITC has stepped up launches within its foods portfolio over the past few years, entering more categories within dairy, spices and adult nutrition as it expands its over ₹17,000-crore foods portfolio. More consumers turning to branded from unbranded foods will help drive growth for the company, Hemant Malik, executive director, ITC Ltd, and head of the company's food business, said. “The packaged food category is only 18% of overall foods.

With our experience in the staples business, we have understood the drivers to affect this shift across multiple categories. This is a prime vector to drive business growth. We have added many adjacencies to our Aashirvaad staples portfolio including rava, besan, vermicelli, organic etc," he told Mint.

Malik said that large swathes of population in north and west India are entering the consuming class—such markets offer potential for increasing the penetration of branded products. “The second vector is capturing growth from what we call the emerging markets, particularly states like Uttar Pradesh, Bihar, Jharkhand, Madhya Pradesh, and Rajasthan. Till a few years ago, growth