ITC, India’s third-largest packaged food company, broke its records yesterday. The company’s food business grew by 7.3%. Gross sales for FY20 was clocked at Rs 10,377.73 crore. ITC’s competitor Britannia and Nestle recorded the gross sales worth Rs 10,986.68 crore and Rs 12,368.9 crore respectively.
Last fiscal, the gap between Britannia and ITC was of Rs 810 crore. This fiscal year, it has reduced to around Rs 600 crore. This is a signal that how fast the company is growing in the food business. Its aim of being a market leader won’t take long if the company continues to do this well.
ITC’s Aashirvaad brand atta, which is a market leader in its segment, grew by almost 30% to record sales of more than Rs 6,000 crore. ITC’s second-largest FMCG brand, Sunfeast, crossed the sales of Rs 4,000 crore, followed by Bingo! sales worth Rs 2500 crore.
Better performance in this segment is crucial as the company looks to reduce its dependence from the flagship cigarette business. The cigarette segment is under continuous scrutiny due to heavy government tax rates.
ITC’s packaged food portfolio
- Kitchens of India
Expanding the business
This Multinational conglomerate company also announced the acquisition of Sunrise Foods Private Ltd (SFPL). The deal was valued at around Rs 2,150 crore. SPFL, a Kolkata-based family-owned company, is a 70-year-old spice manufacturing company. Sunrise is a focussed company which operates in the Eastern part of India. This acquisition will help ITC enjoy the benefits of synergies and make use of the established supply chain operations of SPFL.