Kolkata: Non-cigarette business of diversified conglomerate ITC Ltd contributes nearly 52.4% of the company’s net turnover.
In the report of the directors of ITC for the year ended 31 March 2008, it said that the company was uniquely positioned to tap the emerging opportunities in the FMCG sector by blending and synergising the diverse pool of competencies residing in its various businesses.
ITC, which operates in various business areas such as branded packaged foods, lifestyle retailing, education and stationery products and personal care products, is upbeat on the future of newly formed business portfolios.
The company said that it was bullish on the future prospects of the FMCG industry as it was anchored on the interplay of demographic dividend, rising incomes and increasing urbanization.
Low penetration of many FMCG products and the growing population of working women also augured well for the sector’s growth.
Accordingly, the company has decided to scale up the new FMCG businesses like branded packaged foods, lifestyle retailing and others.
Regarding the company’s cigarette business, ITC said 30% tax was posing to be a big challenge.
ITC said the company had been able to retain leadership position in the market and improved its market standing in the consumer mind-space in key competitive markets across the country.
On exports, ITC reported a volume growth of more than 16% over the previous year.
Referring to lifestyle retailing, the company said Wills Lifestyle brand was rated amongst the top five luxury brands in the country according to a survey by a leading international magazine.
The introduction of Essenza Di Wills and Fiama Di Wills range of personal care products had helped augment the its lifestyle portfolio.
The stationery business recorded an impressive sales growth of 72%.
The hotels business witnessed yet another year of robust growth aided by India’s economic momentum.
The paperboards, paper and packaging recorded a steady growth with segment revenues growing by 13%.