ITC Eyes Food Business

ITC is planning to expand into food business by entering new segments like fruit juice, tea, coffee and chocolate.

Responding to the shareholders during the annual general meeting, ITC chairman Y C Deveshwar said, "We are on a take-off point but we are building the company for the next 100 years. We want to grow in new areas...in areas of fruit juices, tea, coffee, chocolates and in dairy products. There will be new gestation. This is the best time to absorb the cost of gestation of new area and build the company for tomorrow."

"Our company is aiming for a revenue of Rs one lakh crore from the new FMCG business alone by the year 2030," Deveshwar added.

This is for the first time that an official statement came from its chairman on foraying into beverages and chocolates.

Commenting on the imposition of higher tax on cigarettes, the ITC chairman said, "I am of the view that it is a tactical approach that cigarettes are being taxed heavily. Let me tell you, only 12% tobacco use is legitimate cigarette consumption. On the rest, there is very little tax increase on other areas."

Sunfeast and Aashirvaad — the two major brands of ITC foods — have each crossed Rs 2,000 crore mark by consumer spends. The other major food brands and sub-brands of the company include Bingo, Yippee, Mint-O and Candyman.