This success story is driven by two strong fundamentals. The first being
ITCs diverse proven capabilities. Be it sourcing high quality agri-produce. The
widely acknowledged cuisine expertise of its hotels business. The robust FMCG
distribution infrastructure. The decades-old tradition of building enduring brands by
anticipating and exceeding consumer expectations. Or the world-class paperboards and
state-of-the-art packaging solutions available in-house. These have combined to give the
Company a distinct advantage in the marketplace.
Secondly, ITCs foray
has been timed to leverage the exponentially growing potential of the branded packaged
food market in India. Demographic shifts are leading to an increase in nuclear families.
Rise in discretionary incomes and changing lifestyles are driving the demand for
convenient yet healthier consumption options. These trends are strong indicators of a
potential upsurge in the demand for packaged foods.
The Government recognises
the critical role the food processing industry can play in driving economic growth and
generating employment. The priority accorded to the food processing sector, particularly
the industry friendly policies relating to bank credit, excise duties, etc. will further
drive the rapid growth of processed foods in the country.
The share of branded
packaged foods, currently estimated at 8% of the total domestic food sector of Rs 550,000
crores, is expected to more than double in the next six years.
ITC is well-positioned to
ride this boom.