Salient points
- Itc Foods has acquired Yoga Bar and 24 biological mantra to accelerate its expansion and satisfy the growing demand for consumer of healthier and premium food options as part of its “next ITC” strategy.
- Hemant Malik, executive director of ITC, said that the premium food category should grow at least double the rhythm of the overall market of consumer goods in rapid movement (FMCG), with products focused on health the main growth factor.
- Currently, about 30% of the ITC food portfolio consist of premium products, contributing to an increase of almost 28% of the revenue from packaged foods for the 202-25 exercise.
After acquiring Yoga Bar and 24 Mantra Organic, ITC Foods is now placing a greater emphasis on strategic acquisitions to accelerate its expansion, quickly enter rapidly growth of categories and satisfy the most healthy, more indulgent, convenient and premium food options. Hemant Malik, executive director of ITC, told the Times of India that the approach is part of the wider “ITC” strategy of the company, which positions value acquisitions as value as a key growth engine.To navigate in the challenges posed by the slow urban demand, the income of weak families and the high inflation, ITC provides for both Brownfield and Greenfield Investments. During the financial year, the company claimed to have had to face strong inflationary pressure on edible oil, wheat, maidas, cocoa and packaging materials. These pressures have been partially managed through the management of internal costs, price adjustments and a push for the sale of more premium products.
Malik has declared that he believes that the premium category will grow “at least double the rhythm of the overall business of FMCG”. He said: “We are creating offers for the new India in search of health, growing per capita India, Gen Z, as well as consumers who seek richer and richer experiences. Many of them would have premium prices. It is only a matter of providing the right value to consumers … Premium is limited only to Metros; there are premium customers across the country.”Currently, about 30% of the ITC food portfolio consist of premium products. The company’s passage towards this high -end segment seems to work. In the financial exercise 2024-25, revenue from packaged foods increased by almost 28% to £ 21,982 cror.
Malik said that health focused products are emerging as the largest growth pilot. “Health is the most quickly growing segment for us, growing at 400 times that of the remaining activity of food. We are also keeping a watch up close on the emerging needs of consumers – whether they are health, nutrition, comfort or indulgence. These trends moderate the way we evolve our wallet and explore new categories. We are creating many new products based on the evolution of consumption, for each life phase.
According to Malik, ITC sees a significant scope for growth in the food segment, since most of the market is still without a brand.
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