ITC is monetising its distribution network to shore up non-tobacco revenues

ITC now wants to open new channels of growth, for which it is monetising itsdistribution network.

ITC is planning to offer its distribution network of around 4.3 million shops across India to startups and small FMCG businesses, but for a fee.
It is also interested in acquiring stake in some of these smaller companies.

"The way ITC has a packaging business where it does packaging for rival FMCG brands apart from its own, it also wants to monetise its distribution network," one of the sources told ET.

Presently, the cigarette sales are under pressure due to increase in taxes and ITC wants to increase non-tobacco revenues. It has even created a separate division for distribution, which was earlier a part of India Tobacco Division (ITD).

B Sumant, who was the divisional chief executive of ITD, has been given a new role now.

His prime responsibility will be to lead the distribution business and he will report to ITC executive director (FMCG) PV Dhobale and president (FMCG) Sanjiv Puri.

Reportedly, around 60% of ITC's net revenue is generated from the non-cigarette business.

(Image: Indiatimes)