The foods division of ITC Ltd is planning to launch a range of soya products under the Aashirvaad brand umbrella. Terming Aashirvaad a win-win-win product strategy (for customer, farmer and the company), Mr Chitranjan Dar, Divisional Chief Executive, ITC Ltd, Foods Division, said the company had well established the sourcing process of atta through its e-choupals and could match the same with soya.

Aashirvaad is now a Rs 1,000-crore brand with products including atta, salt, spices, instant mixes and ready meals.

The company is also pulling out its noodles and pasta products from under the Sunfeast brand and putting them under Yippee. “The brand (Yippee) is now better known and it can take pasta and noodles under its umbrella,” said Mr Dar

The Rs 1,000-crore Sunfeast brand will be a pure biscuits offering and the company may look at extending it to other bakery products such as cakes.

At present, Sunfeast would focus on growing in the Rs 3,600-crore premium biscuits segment.

ITC launched Yippee noodles about ten months ago and now has a 10 per cent market share in the country's Rs 1,300-crore instant noodles segment. Nestle's Maggi, the leader, has about 80 per cent market share.

The foods division, growing at CAGR of 25 per cent, is estimated to be the largest business segment among all the non-cigarette FMCG businesses of ITC Ltd.

Price hike soon

Mr Dar said consumers could expect a price increase soon as rising commodity prices would affect product prices. “Although sugar has stabilised, rising oil and maida prices will rock the boat and we are reworking on our strategy,” said Mr Dar, indicating that a 7-8 per cent price increase would be inevitable. He ruled out the possibility of FMCG companies becoming more cost-efficient. “The bottom has been scraped and there is very little the industry can pull off by way of efficiency. We will be compelled to increase prices now,” he said.

> anjali@thehindu.co.in

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