ITC Foods, part of ITC’s FMCG segment, is looking to expand its portfolio into value-added adjacent categories that complement its core segments. According to Hemant Malik, Executive Director, ITC Limited who oversees the Foods Business, the company is focusing on high-potential growth areas.
As part of this strategy, the division known for its products like Aashirvaad Atta, Yippee Noodles, Sunfeast, and Bingo has expanded into vermicelli, besan powder, and rava.
Malik emphasised to businessline the importance of entering into new adjacencies for ITC Foods, highlighting its role in strengthening its portfolio and the company’s commitment to solving consumer challenges.
“We conducted extensive research across consumer segments and realised that needs vary within households, as every family cooks differently. Taking this into account during our product design process, we identified pain points by visiting consumers’ homes, understanding their specific needs, and addressing their challenges,” he explained.
Under the Aashirvaad brand, ITC launched its besan and rava in 2023, following the launch of its vermicelli in 2021.
In a highly unorganised market, ITC Foods markets itself by investing in research and differentiating its products. These adjacencies are vital for success as the person who cooks is discerning and can quickly assess the quality of ingredients. “The consumers understand when a product can make a significant difference in their cooking,” he noted.
For instance, it discovered that vermicelli tends to coagulate while cooking. After thorough research, the Foods division developed a solution and introduced vermicelli with the value proposition of ‘no chip-chip’.
“We addressed this issue by leveraging our innovation strengths and effectively communicated the solution to consumers across various languages,” he described.
ITC Foods applied a similar approach to rava and besan, recognising the opportunity to create a besan flour that doesn’t form lumps. “Unlike rice and wheat, there is no literature that explains the behavior of carbohydrates and proteins in besan, making it difficult to understand what causes lump formation,” Malik explained.
“After more than a year of extensive research to uncover the root cause, we finally developed a besan product that remains lump-free,” he recalled.
The Foods division registered a turnover of ₹17,000 crore in FY24 and is poised to continue expanding across different segments through adjacencies based on market opportunities, he said.