Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>FMCG companies are expected to register strong margins in Q1 as they will see the full effect of earlier-taken price hikes playing out. Cooling raw material prices will help. </li><li>Demand for staples have been stable, but the beauty and personal care category has not yet recovered fully. </li><li>The summer has seen a decline or low growth in ice creams and juices due to unseasonal rains. </li></ul>With cooling raw material costs, the FMCG sector is expected to kick in the first quarter of FY24 with ‘good quality’ profits, backed by improvement in margins. Input costs have been cooling over the last few quarters and have either remained stable or seen mild moderation, and companies have not been passing them off very generously in the form of price cuts. “We expect most of the companies to register stronger sequential gross profit margin (GPM) improvement in 1Q24F with input cost inflation cooling down further, high-priced inventory getting consumed and the full effect of earlier-taken price hikes playing out,” said a research report by Nomura. Certain categories such as hair oils, edible oils and soaps had witnessed price cuts in earlier quarters, which will flow through in the first quarter, as per BNP Paribas. Also, new price cuts and promotions were seen in laundry, edible oils and other home care categories during the quarter but no major price cuts were seen in biscuits and salts. Double digit revenue growth expected Price cuts and volume growth for the sector are directly proportional for the sector, and as of now most of growth seen in the sector was pricing-led. But that’s changing, analysts say. Demand from urban areas has been stable, with slight sequential improvement in rural demand as well. Also, the demand for staples have been stable, but the beauty and personal care category has not yet recovered though improving due to the price cuts. All in all, the sector should be able to present a good revenue growth for the quarter – notwithstanding the cooler summer this April-June with unseasonal rains that affected sales of juices and ice creams. “We estimate staples/discretionary (ex-ITC) pack to register 10.2%/8.8% revenue growth. We expect a good quarter from Nestle, Godrej Consumers and ITC and a weak print from Marico,” says a report by Kotak. Antique Stock Broking also expects the FMCG sector (not including ITC) to report early double digit revenue growth with moderation in pricing led growth. ITC is expected to see a fall in revenue as its agri business is expected to see a drop due to high-base effects. Nomura expects Nestle, Tata Consumers and Dabur to report the highest revenue growth YoY, and with ITC and Marico to post lower value growth. FMCG sector revenue growth projections YoY <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Company </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nomura </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kotak Institutional Equities </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Antique Stock Broking </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">HUL </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;"> 9.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">ITC </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6.1% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.6%* </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">-6% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Marico </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Dabur </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9.4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">9% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Godrej Consumer </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10.2% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">10% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Tata Consumer Products </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">11.3% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">12.5% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NA </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Nestle India </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">15.7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16.6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">16% </td></tr></tbody></table>Source: Research reports *Kotak has considered standalone results for ITC Price cuts &amp; rising competition The street will closely watch management commentary on pricing, as analysts believe that the sector is poised for a good show in the first half of FY24 with a raw material cost tailwind. “However, in the second half of FY24 we expect revenue growth to moderate as pricing benefits should fade and growth would have to be volume-led,” said a report by BNP Paribas. There has been no aggressive price war as of now in the sector as of now, but if price cuts are not taken by large players in the segment, it might lead to unorganized players gaining market share. In the last one year, many consumers have ‘downtraded’ to unbranded products or local brands during periods of high inflation. “Prices of most stock keeping units (SKUs) have increased sharply over the last two years. Soap and detergent prices have risen 40-50% over that period. So far the price cuts have been limited and largely confined to the value segment. We believe price cuts might be needed to drive volumes,” said BNP Paribas. Without pricing strategies laid out, most FMCG players might see revenue growth challenges re-emerge this year, especially in the second half. SEE ALSO <a href="https://www.businessinsider.in/business/corporates/news/it-companies-like-tcs-infosys-wipro-hcl-tech-q1-2023-24-earnings-preview/articleshow/101482733.cms">IT sector Q1 earnings preview: All eyes on deal wins, revenue guidance cuts</a> <a href="https://www.businessinsider.in/thelife/news/want-your-veggies-to-taste-like-chocolate-a-vr-glass-may-help-trick-your-mind/articleshow/101487079.cms">Want your veggies to taste like chocolate? A VR glass may help trick your mind</a>

FMCG sector Q1 preview — Caught between price cuts and volume growth

<ul><li>Fabelle launched its first chocolate boutique in Bengaluru and has today expanded to 15 boutiques across top 6 metros.</li><li>Its aim is now to grow its reach further in both the luxury and the <keyword id="6037459" type="UNKNOWN" weightage="20" keywordseo="mass-premium-segment">mass premium segment</keyword>. It is ensuring it is available at all touchpoints to ensure a great experience for its consumers.</li><li> In a market where well-established players are also putting their best foot forward to woo consumers with their mass premium segment offerings, <keyword id="8251479" type="UNKNOWN" weightage="20" keywordseo="Anuj-Rustagi">Anuj Rustagi</keyword>, Chief Operating Officer, Chocolate, Coffee, Confectionery and New Category Development - Foods, <keyword id="186707" type="COMPANY" weightage="20" keywordseo="ITC-Limited">ITC Limited</keyword>, tells us Fabelle's strategy to bite a bigger piece of the Indian market. </li></ul>It was back in 2016 that ITC ventured into the premium chocolates segment with the launch of Fabelle. The brand had been in the making for close to 10 years. To provide an ‘immersive, participative and engaging chocolate experience to consumers’, the brand launched its first chocolate boutique, a global format to retail chocolates in the country in the same year, starting with Bengaluru. The brand now has expanded to 15 boutiques across top 6 metros. Within the next two years, Fabelle extended its offerings to the mass premium segment. This move was in line with the brand’s endeavour to take its offerings to a wider audience. It was then that it made itself available at premium retailers like Nature’s Basket, Foodhall, Spencer’s etc. To further expand its reach, the brand has invested Rs 100 crore on a manufacturing facility. The brand is now on a mission, to bite a bigger piece of the country’s chocolate market that has well-established players like Mondelez, Nestle, and now even Amul putting their best foot forward with the launch of their premium chocolate ranges. Over the past few years, the brand has been using the power of digital to its advantage, to reach out to its target audience. <keyword id="441877" type="PERSON" weightage="20" keywordseo="direct-marketing">Direct marketing</keyword> and word-of-mouth have helped it create a loyal base. We recently caught up with Anuj Rustagi, Chief Operating Officer, Chocolate, Coffee, Confectionery and New Category Development - Foods, ITC Limited, to understand how the brand is navigating a segment that has some strong players already and to understand its strategy to growing its footprint in the market. Excerpts: Q) Walk us through brand Fabelle’s journey from 2016 till today. What kind of growth have you witnessed and how do you plan to reach out to more consumers? Considering the scope and potential to grow the Indian chocolate market, we launched Fabelle in 2016. We launched our first chocolate boutique, a global format to retail chocolates in the country in 2016, starting with Bengaluru and has expanded to 15 boutiques across top 6 metros. After building credibility and consumer trust in the premium luxury chocolates segment, we extended our offerings to the mass premium segment in 2018 by taking our offerings to premium retailers in the country like Nature’s Basket, Foodhall, Spencer’s et al. We also invested Rs 100 crore to set up a greenfield state-of-the-art manufacturing facility in Haridwar with a capacity of 5,000 tonnes per annum. Further to this, we had also set up a cold chain in our warehouses, redistribution centers and also at retail touch points, to deliver our chocolates in the most pristine condition to our consumers. The company invested in the latest global cooling technologies and real-time digital monitoring systems to ensure that the cold chain is efficient and always functioning, so that there’s no product quality deterioration. Once the required logistics were in place, we leveraged ITC’s strong distribution network to expand our retails touch points and are currently available via 10000+ retailers in India. Currently, we are also amplifying our reach via the digital ecosystem through food delivery service apps like Swiggy, Zomato, ITC eStore, Amazon. Our business has grown much ahead of the category and our internal forecast. Q) Do you plan to come up with more 'massy' products with lower price points? We entered the mass premium/FMCG segment in 2018 with two unique formats – Fabelle Choco Deck and Fabelle Soft Centres. Earlier this year, riding at the back of encouraging consumer response which we received after launching Ruby Gianduja in the luxury segment, we extended the experience of Ruby Chocolate to the larger consumer base by launching Fabelle Choco Deck Milk &amp; Ruby Chocolate Our products are already available in 10 SKUs at popular price points, ranging between Rs 25 to Rs 350. Going forward, Fabelle will continue to focus on creating one-of-a-kind chocolate experiences in India that are highly aspirational and in line with global brands and possibly better. We will focus on expanding the presence of luxury segment across all relevant touchpoints with the right range and also build a portfolio of products that span not only in the luxury segment but also in premium mass retail segments under Fabelle. Q) Fabelle has a website but it's more of a discovery platform. Are there plans to start selling on fabelle.in too or will you continue only selling on other ecommerce platforms? Indeed Fabelle’s website is a discovery platform but I our offerings across the luxury and mass premium range are already being retailed through our own D2C ecosystem, which consists of a takeaway menu, ITC eStore, ITC Hotels App or ITC Store on Wheels for purchase. We're also utilizing the traditional e-commerce channels like Amazon, Big Basket, Flipkart to make the luxury range available and delivered to consumers. Emerging channels like EasyDiner, Dunzo etc are also being explored to enable people to buy chocolates. Q) You launched your first brand campaign earlier this year, almost 4 years after launching the brand. What kept you away from traditional advertising till now? Our media choices have been to sharp target our consumers in key geographies using digital as a key medium which also enables consumers to get more information and engage with brands directly, especially in the luxury segments. Besides digital, positive word-of-mouth has been a key part of our marketing communication mix in building the brand’s familiarity amongst the larger audience, alongside our new, trend setting launches like Ruby Gianduja, Trinity Truffles, Independence Day and work with chocolatiers like Billie Mckay, Sarah Todd etc which has given Fabelle the desired visibility. Direct marketing is also a key lever to engage with UHNI and HNI consumers and creating customised experiences in gifting and for self-consumption. As our brand presence extended across segments, across price points, we felt it was an appropriate time to include TV in marketing mix for our mass premium range while continuing focus on digital and earned media. Q) Other players are also strengthening their offerings in the premium <keyword id="6110187" type="UNKNOWN" weightage="20" keywordseo="chocolate-segment">chocolate segment</keyword>. How have you been able to create a niche for yourself? Earlier, Indian consumers purchased imported brands that were available via alternate channels in a range of retail outlets across key metro cities as no major global premium chocolate brand operated officially in India. Erratic supplies, lack of product quality, authenticity, product range suited to Indian consumers, variety for self-consumption and gifting were some of the major concerns of Indian consumers with regards to the global brands available in India via alternate channels. International travel (prior to the pandemic), exposure to global food trends via social media, food blogs and sites, food programs (Masterchef) and an increase in purchasing power are redefining lifestyle choices of the upper middle class and elite consumers. Hence, India has become a key market for major luxury brands leading to a rapid rise in demand for gourmet food and the same is also seen in the chocolates category. Gourmet experiences in chocolates are defined as handcrafted, using finest ingredients, crafted by experts and those that engage all senses. Brand imagery has also become important as increasingly prosperous Indians are choosing brands that are in line with their aspirations of consuming premium global products/offerings while gifting has also emerged as an important trend in premium chocolates segment. With all of the above, consumers were also seeking an immersive experience. To address these need-based gaps, we launched our first chocolate boutique in 2016 which has now expanded to 15 boutiques. We are now looking at attractive markets like Amritsar to further extend our presence. The overall experience in the Chocolate Boutique led by Fabelle Master chocolatiers and boutique associates is aimed to create an engaging experience that not only makes a range of chocolate products available to consumers but also an experience that helps consumer know more about chocolates like the origins, chocolate processing techniques and appreciating the nuances of a luxury chocolate experience. Furthermore, we are the only chocolatier to offer 60+ diverse range of chocolate experiences through 5 varieties of globally popular hand-crafted creations. We are the only brand to retail all 5 types’ chocolates in the world - White, Milk, Dark, Ruby and a new type ‘Dark Milk’. Q) The premium chocolate segment is still a very small part of the chocolates business. How are you wooing more consumers, and increasing your market share? In the luxury segment, during the pandemic, we shifted our presence from physical to digital platforms to take luxury closer to consumers to wish to indulge within the safe confines of their homes. We enabled that shift through presence across digital mediums, e-commerce channels, food delivery sites like Swiggy and Zomato, enabled take-aways from our boutiques and tele-ordering. Our unique Fabelle on Wheels also visits residential societies for consumers to make direct purchase. Besides this, we have also focused on gifting during Diwali for Corporates and individuals alike with launch of innovative products like Continents Desserts Collection, Indian Desserts Collection etc. As normalcy gradually resumes, we have also opened operations at our boutiques while ensuring 100% adherence to safety and hygiene standards. In the FMCG space, we are expanding our distribution reach to all key touchpoints and ensure that the right price product is placed at the right channel. Product offerings which are at price points of Rs 25, Rs 40 and Rs 45 are available in small format outlets as well whereas in the large format outlets we operate in the price points of Rs 70 to Rs 350. As our brand presence extended across segments, across price points, we felt it was an appropriate time to include TV in marketing mix for our mass premium range while continuing focus on digital and earned media. Q) What is your growth strategy going ahead? Do you plan to take your brand to smaller cities? At the moment, we retail out of six major cities in India including Bangalore, Mumbai, Delhi, Kolkata, Hyderabad and Chennai in the luxury and the mass premium segment. Currently, our efforts are focused towards making our chocolates more accessible to consumers based out of these markets and we also plan to expand our presence in other Tier 1, Tier 2 &amp; rural markets.

How digital, direct marketing and word-of-mouth has helped Fabelle reach out to a targeted audience and expand its presence in 4 years

<ul><li>
ITC's new chocolate, the Fabelle's Trinity - Truffles Extraordinaire, costs ₹1 lakh.</li><li>According to the Guinness World Records, it is now the <keyword id="8247247" type="UNKNOWN" weightage="20" keywordseo="most-expensive-chocolate-in-the-world">most expensive chocolate in the world</keyword>.</li><li>The company co-created the chocolate with Michelin Star chef, <keyword id="8247251" type="UNKNOWN" weightage="20" keywordseo="philippe-conticini">Philippe Conticini</keyword>.</li></ul>Indian Tobacco Company’s chocolate brand Fabelle Exquisite Chocolates, made it to the Guinness World Records for making the world’s most <keyword id="8247249" type="UNKNOWN" weightage="20" keywordseo="expensive-chocolate">expensive chocolate</keyword>. Unveiled in Mumbai today, Fabelle’s Trinity — Truffles Extraordinaire, costs a whopping ₹1 lakh. 
 
 <div type="image" title="choco2" msid="71703871" hostid="261" caption="&amp;lt;p&amp;gt;The three types of chocolate that come in the box&amp;lt;/p&amp;gt;"></div>





 The limited edition chocolate comes in a hand-made box, each of which contains 15 truffles and each truffle weighs around 15 grams. The box is only made-to-order to customers have to place their orders in advance. 
 
 <div type="image" title="choco3" msid="71703846" hostid="261" caption="&amp;lt;p&amp;gt;Hand-made box for Fabelle&amp;#8217;s Trinity &amp;#8212; Truffles Extraordinaire&amp;lt;/p&amp;gt;"></div>




 ITC's chocolate business is only two years old, but has been trying to create a niche for itself as a luxury chocolate brand. Fabelle roped in Michelin Star chef Philippe Conticini, to help co-create chocolates for the Indian market. “After several months of R&amp;D, we have delivered a product, in which india can take pride in and stayed committed in our constant endeavor of being at the forefront of introducing Indian consumers to distinct chocolate experiences,” stated Anuj Rastogi, CEO of ITC Limited’s new categories <keyword id="6181" type="COMPANY" weightage="20" keywordseo="Food">food</keyword> division.

ITC unveils the world’s most expensive chocolate at ₹1 lakh —  and earns a Guinness record

<keyword id="6357073" type="ORGANIZATION" weightage="100" keywordseo="ITC">ITC</keyword> 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 <keyword id="366117" type="PERSON" weightage="100" keywordseo="Aashirvaad">Aashirvaad</keyword> — 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 <keyword id="88717" type="ENTERTAINMENT" weightage="100" keywordseo="Bingo">Bingo</keyword>, <keyword id="1510738" type="UNKNOWN" weightage="100" keywordseo="Yippee">Yippee</keyword>, Mint-O and <keyword id="194233" type="PERSON" weightage="100" keywordseo="Candyman">Candyman</keyword>.

ITC Eyes Food Business

Fast <keyword id="2842313" type="UNKNOWN" weightage="20" keywordseo="Expanding-Markets">Expanding Markets</keyword> (<keyword id="63066" type="ORGANIZATION" weightage="20" keywordseo="Fem">FEM</keyword>), as a new unit of measure, are micro economic indicators which demonstrate the health of a nano economy, based on an exponential acceleration, over a prolonged period of time. These indicators are often hidden in the nuances of macro economic and regression analysis, as we have been doing, in the good old way of thinking where business opportunities are located. It is by looking at our current society in India, that we remind ourselves that Indians traditionally and culturally are known to have a sweet tooth. In the festival of Diwali, probably the biggest festival in the Indian calendar, a long-standing tradition is one of exchanging mithai, the Hindi word for sweets. 
 
Globalization may mean macro changes and yet the micro changes may have macro effects. In more recent times, the traditional mithai shops have taken a hit; Indians seem to be showing a departure in taste palates in favour of the more modern, neatly packed chocolate boxes. These sugary delights especially packaged for Diwali are available anywhere, in the price range of USD 1.5 to USD 100 and more, form the affordable to for the affluent. 
 While <keyword id="35050" type="CITY" weightage="20" keywordseo="gdp">GDP</keyword> rates in India have taken a hit in the last three years, and the current budget demonstrates even more concern on the ability to stick to a growing curve, or at least maintaining curve. But while the GDP dilemma is keeping policy makers awake at night, there is one industry, relatively new in its current scale, which is booming, and the growth story is far from complete. 
 
To put things in perspective, the chocolate industry is growing at a rate of nearly 3x that of GDP. Such spiralling high growth rates lead us to believe that the chocolate industry may in fact be a good example of FEM. 
 
Outline India, a research start-up focusing on field data collection within the socio–economic domain, took on this study under their guidance to explore if this was indeed the case, and the result can be summarized in the below infographics. 
 
 
 
India’s current chocolate consumption pattern suggests very low per capita levels of around 1.2 owing to few traditional players and high import tariffs on import of chocolates. This however, leaves ample scope in terms of change in domestic production and consumption rates. To bolster this argument, India’s hot and humid climate is conducive to cocoa production, key to the chocolate industry. As of 2011, India is also the largest milk producer in the world. With the middle class growing, average incomes rising and information asymmetry levels going down, consumers are more aware than ever before, about available choices to them. With more cultural exposure and an urge to appear more western in terms of behaviour and at par with the international consumer, levels of chocolate consumptions are rising, especially among urban Indians. Also cited are health reasons that favour chocolates over the more the more traditional Indian sweets. A majority of these savouries, house a higher number of calories and shorter shelf lives. No longer is chocolate considered a ‘luxury item’ or one meant only for ‘special occasions’. 
 
In terms of what may prove to be a dampener? On the supply side, there have been numerous hurdles; the most important being bad connectivity and infrastructure. As a solution, a majority of the chocolate factories sprung up on the outskirts of big city centres, which were also best entry points for producers. A keen effort is being made to improve supply side channels to ease distribution. For instance, breaking away from the traditional supermarkets and discount stores, the big names such as Ferrero Rocher and Mars are trying to integrate into the lives of the upper middle class Indians by becoming available at the more accessible and approachable grocery stores. Local producers like <keyword id="29464" type="PERSON" weightage="20" keywordseo="Parle">Parle</keyword> and <keyword id="6357073" type="ORGANIZATION" weightage="20" keywordseo="ITC">ITC</keyword> with expansive distribution network are targeting the lower middle class as well, with a wider range of offerings via their pre-existing mom and pop stores or Kirana shops distribution networks. 
 
While the chocolate industry grows at 15% annually, projections put the expected market size at USD 2.8 billion by 2015 and USD 3.2 billion by 2018. 
Current market penetration rates are as low as 6 to 7 % at household level and about 22% in cities. This leaves scope for much change. 
 
One of the best known ad campaigns in the industry by Cadbury read, “Khane ke baad kuch mitha ho jaaye” which translates to Grab something sweet after a meal, only this time, the company was pitching a chocolate, breaking into and away from the traditional Indian household mindset which correlates sweet with mithai. The big guns are going the extra mile to suit the Indian consumer; <keyword id="75190" type="CITY" weightage="20" keywordseo="Nestle">Nestle</keyword> for instance launched a sweeter version of dark chocolate in India. Kraft is looking to invest USD 400 million for cocoa production in India in this decade. GDP may not be the brightest piece of headlines in these days, but while the macro arena gets engaged on issues of aggregate nature, there are small, powerful and fast moving markets, which are creating an entirely new “indian” concept of growth. 
 
((Dr. Amit Kapoor is President and CEO of <keyword id="2773756" type="UNKNOWN" weightage="20" keywordseo="India-Council-on-Competitiveness-and-Honorary">India Council on Competitiveness and Honorary</keyword> Chairman of Institute for Competitiveness, India. He tweets @kautiliya and can be contacted at <a href="mailto:amit.kapoor@competitiveness.in">amit.kapoor@competitiveness.in</a>. The piece is co-authored with <keyword id="2842315" type="UNKNOWN" weightage="20" keywordseo="Mark-Esposito">Mark Esposito</keyword> and <keyword id="2842314" type="UNKNOWN" weightage="20" keywordseo="Terence-Tse">Terence Tse</keyword>)

Fast Expanding Markets in India

<ul><li>This startup promises relief to those suffering from nicotine addiction, Parkinsons, chronic pain and <keyword id="15418" type="General" weightage="70" keywordseo="anxiety" source="Orion">anxiety</keyword> with its <keyword id="14728" type="General" weightage="70" keywordseo="cannabis" source="Orion">cannabis</keyword> laced products.</li><li>More than 50 plus startups have mushroomed in India over the last two years after the FSSAI allowed sale of <keyword id="1957434" type="General" weightage="80" keywordseo="hemp" source="Orion">hemp</keyword> seed or hemp seed oil as food or ingredients in food.</li><li>Cannabidiol found in hemp products is not a psychoactive substance that gives a “high”. <keyword id="6607408" type="General" weightage="90" keywordseo="cbd" source="Orion">CBD</keyword> has medicinal properties and can be used as therapy for many ailments. </li></ul> If you are looking to kick the butt, but are finding it hard to do so, you may consider switching to “hemp rollens” – cigarettes made from cannabis leaves and flowers. And it is perfectly legal. Trost, a two-year old startup, sells a variety of products made from cannabis that promise to give relief from epilepsy, chronic pain, anxiety and even autoimmune disorders. Says Harshal Goel, Founder of Trost, a startup that produces therapeutic products derived from hemp extracts, “Cannabidiol or CBD has a plethora of benefits because it has medicinal benefits. From epilepsy to Parkinsons, CBD can help people. It also helps to manage chronic pain.” Not surprising that he has named his startup Trost – which means solace in German. Today, consumers can find solace in CBD laced chocolates and protein powders too. In 2021, the Food Safety and Standards Authority of India issued a notification that said hemp seed, hemp seed oil and hemp seed flour could be sold as food or used as an ingredient in food products provided that they conformed to stipulated standards. Following which startups are now selling hemp-based protein powders too and not just hemp-based herbal cigarettes. Ayurvedic blend of potent herbs The concept of hemp cigarettes is rooted in "Dhuma Yoga," an Ayurvedic blend of five potent herbs including cannabis, datura, henbane, vasa, and cavya - to create a distinct form of smoke therapy called Dhumapana. According to Trost, burning these herbs creates smoke that the user inhales and exhales through their nose and mouth. According to some ayurveda aficionados, this therapy can enhance respiratory health. It is not just in India that CBD is becoming acceptable. The future of cannabis was also discussed at the World Economic Forum in 2020. Traditionally, cannabis has been seen as a means of getting “high”, but researchers have also found medicinal use cases of the plant, provided the presence of psychoactive substance THC is negligible. Hemp should not be confused with <keyword id="40905" type="General" weightage="100" keywordseo="marijuana" source="Orion">marijuana</keyword> as it also contains negligible amounts of THC (tetrahydrocannabinol), which gives a “high.” Consumption of hemp flowers and extracts like CBD oil or hemp seed oil are legal in India, provided they do not contain 0.3% of THC. This is booming business now for more than 50 startups in India that seek to bring solace to Indians battling anxiety or chronic pain. <div type="image" title="Harshal_Trost" agency="Business Insider India" msid="103686011" hostid="261" sizebytes="102332"></div> Cannabis: A licensed business Several states in India have legalised cultivation of industrial hemp. In 2018, Uttrakhand legalised its production and soon Uttar Pradesh followed suit. In April 2023, the state government of Himachal Pradesh also decided to legalise the cultivation of cannabis to boost the local economy. The Ministry of AYUSH is also issuing licences to startups that want to offer CBD products as cures for a variety of ailments. To buy these products, you need to have a prescription from an ayurvedic doctor. Like Trost, most of the startups have mushroomed in the last few years. In 2017, Harshal Goel, then a student at City University, London, learned about Switzerland's legalisation of low-THC cannabis. Intrigued, he visited Switzerland to explore the plant's potential and legal framework. Inspired by the innovation around cannabis products like chocolates and creams, Goel launched medicinal herbal hemp cigarettes in Switzerland. After seeing the success of his venture in Switzerland, he returned to India and founded Trost to offer natural, plant-based products as therapies. If you have recently visited Thailand, you must’ve noticed cannabis shops sprouting like wild weed. The country decriminalised marijuana or ganja in June 2022 and it has given its economy, which is heavily dependent on tourism, a big boost. The decriminalisation, like in many states in the US, was first done in 2018 for medical purposes. Hemp rollens or herbal cigarettes is its most popular product because it helps smokers kick the butt, even though the experience of smoking rollens is very different from a tobacco cigarette. But Trost may be the future of the likes of tobacco majors like ITC. The promise of this pudding can be gauged from the $650 mn that Philip Morris, a global tobacco major, is committing to acquire a cannabis company based in Israel. According to reports in July 2023, Philip Morris is close to acquiring <keyword id="1609269" type="General" weightage="100" keywordseo="medical-marijuana" source="Orion">medical marijuana</keyword> inhaler maker, Syqe Medical, for $650 mn. This would not be the first investment Philip Morris has made in the company as it has earlier invested $20 mn in a company that offered metered inhaler doses of medical marijuana for pain management. Fastest growing plant on the planet Cannabidiol may be new to India, but cannabis is not. In fact, leaves of the female cannabis plant is known as “bhang” which is also offered to Lord Shiva. But startups like Trost are not offering that kind of solace. Trost is a D2C startup that not only offers CBD based therapies but also sells tobacco-free rollens made from cannabis Not only do these cigarettes help deal with nicotine addiction, it also promises to calm the nerves and have a relaxing effect. Industrial hemp is a botanical class of cannabis, which is often used in medicines to relieve anxiety, <keyword id="23666" type="General" weightage="70" keywordseo="stress" source="Orion">stress</keyword> and pain. No wonder, apart from bamboo, hemp is the fastest growing plant on the planet. Interestingly, hemp also contains THC but not in the same quantity as marijuana does. While Trost may be promising solace to a post-pandemic world where anxiety and stress are as common as cold and flu, these hemp startups cannot advertise. To create more awareness around their products, they are even looking at offline stores. Hemp and cannabis startups like Trost, Boheco, Happie Herb, Cannary, Wildleaf and Oreka are members of an industry body called Pan India Medical Cannabis and Hemp Association (PIMCHA) to educate governments on the benefits of medicinal cannabis and root for the industry’s cause through legal reforms.

You Searched For "ITC chocolate" and got 6 results

FMCG sector Q1 preview — Caught between price cuts and volume growth

Katya Naidu

How digital, direct marketing and word-of-mouth has helped Fabelle reach out to a targeted audience and expand its presence in 4 years

Samarpita Banerjee

ITC unveils the world’s most expensive chocolate at ₹1 lakh — and earns a Guinness record

Prabhjote Gill

ITC Eyes Food Business

BI India Bureau

Fast Expanding Markets in India

Amit Kapoor

From Weed To Wellness: Cannabis is no longer a bad word thanks to startups like Trost that promise to bring solace to users

Malini Bhupta

Popular Keywords

Buying Guides