Diversified conglomerate ITC Ltd is looking to scale up exports at an “accelerated pace” in focus markets across a range of categories, leveraging the equity of its core brands such as Aashirvaad, Sunfeast and Kitchens of India.

The company’s direct foreign exchange earnings grew by nearly 10 per cent at ₹10,777 crore in FY23, as compared with ₹9,779 crore in FY22, mainly on account of exports of agri-commodities.

Foreign exchange earnings of the ITC group over the last ten years aggregated nearly 9 billion, of which agri exports constituted about 60 per cent. During FY23, ITC and its subsidiaries earned ₹12,783 crore in foreign exchange, the company said in the latest annual report (2023).

Exports contributed to around 15 per cent of the company’s total turnover in 2022-23, marginally down from around 16 per cent in FY-22.  

The FMCG businesses continue to expand their export footprint, leveraging the equity of their brands – with a reach now spanning over 60 countries.

“ITC also continues to explore strategic opportunities in proximal markets as a potential vector of growth going forward. The PLI scheme has provided further fillip to ITC’s exports across biscuits & cakes, snacks, dairy and ready-to-eat categories,” it said.

The Ready-To-Eat (RTE) category continued to scale up in the institutional and export segments. During FY23, the Education and Stationery Products Business expanded its export footprint to newer geographies and segments and onboarded large global retailers.

The government’s Production Linked Incentives (PLI) scheme for the food processing industry will incentivise fresh investments, enable building Indian brands for the global market, promote exports and boost farmer incomes, it said and added that the company has been included under the PLI scheme towards sales-based incentives in the ready to eat, fruits and vegetables and marine categories respectively as well as for incentives towards expenditure incurred for branding and marketing in export markets.

ITC to rapidly scale up FMCG businesses

ITC is confident of rapidly scaling up its FMCG businesses on the back of a future-ready portfolio powered by purpose-led brands, quality, consumer insights, innovation and an agile, resilient and efficient supply chain. Notwithstanding the challenging conditions prevailing during 2022-23, the company’s FMCG businesses grew ahead of the industry in urban and rural markets driven by enhanced distribution footprint, last mile execution, deep consumer insights, innovation and premiumisation of product portfolio.

The FMCG segment revenue for FY-23 grew by around 20 per cent, with segment EBITDA growing at a faster pace of around 35 per cent to ₹1,954 crore. Segment EBITDA margins expanded by 120 basis points amidst severe inflationary pressures. The company’s portfolio of over 25 Indian brands, largely built through an organic growth strategy, represents an annual consumer spend of nearly ₹29,000 crore and reaches over 230 million households in the country.

ITC is “proactively pursuing” value accretive acquisition, joint venture and collaboration opportunities towards accelerating growth and value creation. The company is well poised to address value-added adjacencies and categories of the future by leveraging over 25 mother brands established over the years.

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