ITC Ltd Eyes Long-Term Growth in FMCG Amid Economic Challenges

ITC Ltd, under the leadership of Chairman Sanjiv Puri, remains positive about the future growth and profitability of its fast-moving consumer goods (FMCG) sector, despite facing macroeconomic challenges.

Speaking at the company's Annual General Meeting, Puri highlighted that ITC's FMCG business has reached considerable scale, with a market potential of about Rs 5 lakh crore. Key to this growth has been capital-efficient strategies and leveraging ITC's institutional strengths.

While acknowledging global inflation and climate-related food price pressures, Puri noted signs of recovery in rural demand. ITC is addressing market hurdles through internal efficiency improvements and strategic pricing, aiming for margin increases of 80 to 100 basis points annually. Digital channels now play a crucial role, contributing 31% to FMCG sales, signaling a robust portfolio build-up for future growth.

(With inputs from agencies.)