The convergence of evolving food trends and technology driven online delivery solutions has given rise to an innovative and rapidly growing industry known as food tech. The industry in India has seen tremendous growth in recent years, driven by a combination of factors including rising disposable incomes, growing health consciousness, emerging consumer demands for convenience and indulgence, and increasing adoption of digital technologies. Riding on the wave of a flourishing internet economy, direct-to-consumer companies, QSRs, and cloud kitchens have enabled the consumers to consume food with immediate fulfilment. Though it is still early days, the industry looks poised to grow 4-5 times from the present size of $8-9 billion to $35-40 billion by 2030, presenting a compelling opportunity for businesses to capitalise on, according to a recent study e-Conomy 2023 by Google, Temasek and Bain & Company.
ITC has identified Food Tech services as a new vector of growth at the intersection of digital and its diverse enterprise strengths. As a 'new age' business venture leveraging the institutional synergies of Foods and Hotels Businesses, Food Tech presents a growth opportunity for the Company.
The inception of ITC's Food Tech service is born from the opportunity to deliver quality food at home conveniently with speed. Driven by the goal to provide premium dining experience at the comfort of consumers' homes, ITC has charted the course to become India's first 'delivery focused ' premium Food Tech venture, marrying the culinary expertise of ITC Hotels and large-scale manufacturing capabilities of ITC's Foods Business.
ITC has leveraged the deep understanding of cuisines resident in its Hotels Business that helps craft offerings with meaningful differentiation in the respective categories. Tapping on the institutional strengths of ITC's Foods Business encompassing procurement advantage, crucial manufacturing capabilities to industrialise solutions at scale as well as R&D knowhow, these products have been made cloud kitchen friendly to deliver premium food experience at home in easy-to-eat sustainable packaging. Standardization of quality in the Food Tech service is maintained and achieved consistently as the entire operation is owned and managed by ITC.
Powering this new wave and enabling the last mile requires a model that is not only robust but keeps in mind technology, logistics and hyperlocalisation. ITC has adopted a tech-first hub-and-spoke business model, in which hyperlocalisation is enabled through nimble and agile operations and a demand responsive supply chain.
Catering to specific consumer trends and preferences, ITC offers unique dishes under three brands - ITC Aashirvaad Soul Creations, ITC Master Chef Creations and ITC Sunfeast Baked Creations.
Started from the Cloud Kitchen of ITC Windsor in 2021, ITC's Food Tech brands have created a strong mark in a short span of time with high consumer love, retention and word of mouth. The Service has witnessed encouraging success in Bengaluru with a current footprint of 23 Cloud Kitchens catering to almost the entire city. The services have been extended to Chennai with 9 cloud kitchens and in Hyderabad with 7 cloud kitchens.
As a new vector of growth, ITC is investing in building foundational capabilities and setting up systems for scale up for its Food Tech venture. The Company will look to gradually expand the footprint in other national markets, whilst honing the portfolio and operating model.
ITC invests in people and practices that are good for the planet.
