The consumer spend in the new FMCG business of ITC has touched 50% mark of the revenue earned by sector giant Hindustan Unilever (HUL) in the last fiscal.
As per the latest annual report of the FMCG-to-tobacco-to-hotel giant, the total consumer spend on its new FMCG business was Rs 19,700 crore in 2019-20 while the turnover of HUL during the last fiscal was Rs 39,518 crore as per stock exchange filings.
In pure FMCG business, HUL is considered to be the biggest in India. ITC’s new FMCG business had recorded consumer spending of Rs 14,000 crore three years back recording over 40% growth. Yippee and Aashirvaad continue to be the growth drivers for ITC in the segment as both recorded more than 30% growth in consumer spends on them in the last one year. Aashirvaad has grown to Rs 6,000 crore brand from Rs 4,500 crore while Yippee recorded Rs 1,300 crore consumer spends from Rs 1,000 crore last year.
Going by a three-year horizon from 2017, Bingo, too, has grown well from a little over Rs 1,000 crore to Rs 2,700 crore.
According to ITC, Aashirvaad remains the market leader in branded atta segment, Bingo is numero uno in bridges segment of snack foods (no. 2 overall in snacks & potato chips), Sunfeast is no. 1 in the cream biscuits segment and Yippee remains no. 2 in the noodles business.
“Despite the challenging conditions prevailing during the year (financial year 2019-20) and the significant slowdown following the outbreak of the pandemic, your company’s FMCG-others businesses recorded segment revenue of Rs 12,844.23 crore representing an increase of 5% over the previous year (on comparable basis, excluding the lifestyle retailing business). Most major categories enhanced their market standing during the year. Prior to the Covid outbreak, the FMCG-others segment was on track to register double-digit revenue growth for the fourth quarter, on a comparable basis,” ITC said in its latest annual report.
In the fourth quarter last fiscal, its non-cigarette FMCG business registered 2.8% year-on-year fall in its revenue to Rs 3,183.5 crore, while gross revenue witnessed a fall of around 6% year-on-year. The non-cigarette business includes branded packaged foods, education and stationery products, personal care products, safety matches and agarbattis, and apparel.
“Despite the unprecedented challenges faced amid the Covid-19 pandemic, the business continued to support your company’s branded packaged foods and personal care products businesses as well as other FMCG companies engaged in the manufacture of essential commodities enabling continuity of their critical supply chain during the crisis. The packaging and printing business has established itself as a one-stop shop, offering a wide range of superior and innovative packaging solutions that will serve as the foundation for sustainable growth,” the diversified conglomerate said in its annual report.