ITC's FMCG business records 21% rise in annual consumer spend in FY23

Diversified conglomerate ITC's FMCG business has recorded a 21 per cent rise in annual consumer spend to nearly Rs 29,000 crore in 2022-23, according to the latest annual report of the company. ITC operates in the FMCG space with 25 home-grown brands.

The company measures annual consumer spend as the sum total of what the consumer spends on buying the goods of the company. It is the net sales turnover of the brands along with channel margins and taxes.

"Your company's vibrant portfolio of over 25 world-class Indian brands, largely built through an organic growth strategy in a relatively short period of time, represents an annual consumer spend of nearly Rs 29,000 crore and reaches over 230 million households in India," ITC said addressing its shareholders in the report.

This is around 21 per cent higher than the financial year 2021-22. In the last annual report, ITC said its FMCG business had an annual consumer spend of over Rs 24,000 crore.

In terms of distribution reach, ITC said in FY23 its products reached 230 million households, up from over 200 million households in FY22.

In FY 2022-23, gross revenue from the sale of products and services stood at Rs 69,480.89 crore, in which its cigarettes business contributed Rs 28,206.83 crore and FMCG business was at Rs 19,122.50 crore.

Its ITC e-Store, a D2C platform, is now operational in 24,000+ pin codes and continues to receive excellent consumer response.

The company operates in the food space with brands such as Aashirvaad, Bingo, Sunfeast, and YiPPee, while in the personal care, it has brands such as Fiama, Vivel, Savlon etc.

ITC is well poised to address value-added adjacencies and categories of the future by leveraging the 25 powerful mother brands it has established over the years.

"Recent examples of such brand extensions include Aashirvaad to Dairy, Ready-to-Eat, Vermicelli, Salt and Spices; Sunfeast to Dairy Beverages and Cakes; Bingo to Namkeens; ITC Master Chef to Frozen Snacks and Cooking pastes; Classmate to Writing instruments; Savlon to Sanitisers, Wipes and Disinfectant sprays etc," it said.

Besides the domestic market, ITC FMCG business also continues to expand its export footprint, with a reach now spanning over 60 countries.

In personal care, the company witnessed a surge in inflation, which led to moderation in demand, especially in rural markets.

However, progressive improvement was witnessed during the course of the year, said ITC.

"Portfolio premiumisation, the launch of an innovative and differentiated range of products and agility in mitigating the impact of commodity inflation enabled the business to strengthen the core and grow emerging categories during the year, in spite of a challenging operating environment," it said.

It is also setting up a personal care and home care products manufacturing unit in Uluberia, West Bengal, ITC added.