ITC AGM: Managing Director Sanjiv Puri highlights future plans, export potential and areas for growth | India is blooming

ITC, the hotel conglomerate at FMCG, convened its annual general meeting (AGM) on Wednesday where Chief Executive Officer Sanjiv Puri highlighted the company’s next strategy in key segments, the potential for export, new products and future technology ventures.

Puri said the opportunities arising from India’s growth have also encouraged the company to invest in five new manufacturing facilities which will be commissioned in the short term in areas such as food processing, as well as packaging. , among others.

ITC said its new FMCG ventures generated annual consumer spending of Rs 24,000 crore. The carefully selected portfolio, with substantial room for growth, is estimated to have a total addressable market potential of Rs 5,00,000 crores by 2030, which is among the highest in the Indian FMCG space.

The company’s products are available in nearly 70,000 points of sale thanks to our dynamic omnichannel network.

During the year, new Integrated Consumer Goods Manufacturing and Logistics (ICML) facilities were commissioned in Medak, Telangana, bringing the total to 10 such modern facilities. Additionally, three co-located automated logistics centers have been established which, coupled with next-generation agile supply chains, will enable superior and efficient execution.

In recent years, we have established overseas distribution agreements that have resulted in significant growth in exports of ITC’s “Proudly Indian” brands to more than 60 countries.

Over time, these exports will make a substantial contribution to the growth of its value-added FMCG portfolio.

Additionally, three co-located automated logistics centers have been established which, coupled with next-generation agile supply chains, will enable superior and efficient execution.

Puri said ITC’s interventions in FMCG start-ups led to robust revenue growth of 25% in the last two years of the pandemic, reaching nearly Rs 16,000 crore in FY22 .

The traditional cigarette business segment also recovered during the year as economic activity normalized and is now ahead of pre-pandemic levels.

The legal cigarette industry has been badly affected by contraband and tax evasion over the years and a relatively stable tax regime should allow the industry to recover volumes over time. ITC will continue to strengthen the product portfolio with a focus on innovation, premiumization and superior on-the-ground execution to counter the threat of illegal cigarettes and strengthen market position,

Agri-Business sources over 40 lakh tons of agricultural products from 22 states and 20 agricultural value chains and is a leading exporter to over 95 countries worldwide. Over time, it plans to engage and empower over 4,000 FPOs, benefiting over one million farmers.

An exceptional performance was achieved this year with growth of 36% in segment sales and nearly 55% in segment results. The strategic focus on enriching the product line, structural cost management, sustainable packaging and Industry 4.0 will continue to drive superior and competitive performance in the years to come.

The next vision envisions a strategic focus on promising growth vectors by developing value-added cartonboard and creating next-generation sustainable packaging solutions.

Investments in Industry 4.0, coupled with increased focus on technological excellence, integrated and renewable fiber value chain and import substitution are improving competitiveness by setting new benchmarks in productivity, quality and strategic cost management.

ITC develops innovative sustainable packaging solutions on the laminated board and molded fiber platforms and has recently launched several B2B brands to provide innovative options to the food and beverage and takeaway segments, among others.

With increased consumer and regulatory pressures to replace single-use plastics, this area holds immense potential and ITC is committed to making a growing contribution to this sector, Puri said.

Enabling large-scale climate action, import substitution and support for livelihoods, ITC has implemented an extensive reforestation programme. Cumulatively, the program has covered 9.5 lakh acres, supporting over 170 million person-days of employment.

ITC Hotels and Welcomhotels have achieved, well in advance, the 2030 carbon emissions targets set out in the Paris COP21 agreement. Additionally, ITC Grand Chola in Chennai, ITC Gardenia and ITC Windsor in Bengaluru have become the first 3 hotels in the world to receive LEED Zero Carbon certification.

The trend of resurgence in domestic tourism, MICE and banquets highlights the immense opportunities for trusted brands like ITC Hotels in a post-pandemic era.

Puri said that ITC’s implementation of the “asset rights” strategy, as well as strategic interventions in recent years, investments in digital technologies and the search for alternative structures in line with recovery dynamics of the industry, position it well to adapt to the next horizon of growth.

Leveraging its deep expertise in product lifecycle management services, ITC Infotech recently acquired a substantial portion of the PLM professional services business of PTC Inc.

This makes it one of the largest organizations in this segment and strengthens its leadership position in digital manufacturing while expanding its global presence, Puri said.

Targeted investments in select areas, technologies and a focus on the customer and employee, position it well as a future-ready global company with immense promise to be a significant value creator.

ITC has now been carbon positive for 17 years, water positive for 20 years and solid waste recycling positive for 15 years. The company has maintained its “AA” rating by MSCI-ESG for the 4th consecutive year.

In addition, the CDP awarded ITC a “Leadership Level” rating for climate change and water security.

“ITC continues to be included in the Dow Jones Sustainability Emerging Markets Index. This year, continuing our mission to promote a circular economy, a major milestone was reached with the company exceeding its commitment to plastic neutrality, collecting and managing more than 54,000 tonnes of plastic waste in 35 states and territories around the world. ‘Union. I will discuss some of the larger initiatives in a later section,” Puri said.

ITC said it seeks to build a Future Tech business with investments in consumer-centric innovation, technology, a digitally enriched smart ecosystem and sustainability.

‘ITC e-Store’ is now operational in 15 cities, with more than 45 categories and 700 products. Overall sales through e-commerce channels increased 3x in FY20, he said.

ITC said about 42% of ITC’s total energy needs are met from renewable sources despite a growing footprint of operations. Recent investments in the high-pressure recovery boiler and solar farms will also contribute to ITC’s Sustainability 2.0 goals of achieving 50% of total energy consumption and 100% of electricity needs from renewable sources. renewable by 2030.

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