ITC targets leadership in FMCG; portfolio expansion, premiumisation to drive growth: CMD Sanjiv Puri

ITC is sharpening its focus on becoming a leader in the fast-moving consumer goods (FMCG) space, with portfolio expansion and premiumisation set to drive the next phase of growth, Chairman and Managing Director Sanjiv Puri said in an exclusive interview to CNBC-TV18.

Puri said the company’s strategy is centred on building a broad and future-ready portfolio while scaling up its core brands. “We aim to be the largest FMCG player, and that is why we are building our portfolio in this manner,” he said, underlining the company’s long-term ambition in the segment.

He highlighted that ITC’s FMCG business has already seen significant scale-up over the years, growing from about ₹10,000 crore to around ₹22,000 crore. The next leg of growth, he said, will come from expanding into adjacencies, launching new categories and tapping into evolving consumer preferences.

India’s changing consumption patterns are creating new opportunities, particularly in premium and health-oriented segments. “Bharat is aspirational—there is demand for premium, specialised, and health-oriented products, but with taste,” Puri said, noting that this shift is enabling the company to target niche segments that can scale meaningfully over time.

The company is also leveraging new-age distribution channels to drive growth in such segments. According to Puri, these channels are enabling micro-segmentation and access to consumers that were earlier difficult to reach. “Even niche segments in India can be large,” he said.

ITC has been actively building new “categories of the future” through both organic launches and acquisitions. Its portfolio includes in-house brands such as Aashirvaad and Sunfeast, alongside newer offerings like gourmet and health-focused products. On the inorganic front, acquisitions such as Yogabar, Mother Sparsh, 24 Mantra and Prasuma are helping the company strengthen its presence in high-growth segments.

Puri pointed out that some of these emerging brands are already gaining scale. Smaller brands like Yogabar and Prasuma have achieved a combined run rate of about ₹1,300 crore and recorded strong growth last year, indicating the potential for future scale.

He added that ITC will continue to invest in innovation, research and development, supply chain capabilities and digital infrastructure to support its FMCG ambitions. The company is also focusing on premiumisation as a key lever to improve margins while catering to evolving consumer preferences.

Also Read | ITC Limited says FMCG demand improving in India, no immediate slowdown seen

While declining to specify a timeline for achieving market leadership, Puri expressed confidence in the company’s trajectory. “From taking baby steps 20 years ago to reaching ₹22,000 crore in FMCG today is already significant progress… given what we’ve achieved, I am confident we will get there,” he said.

With a large addressable market expected to expand further in the coming years, ITC is positioning itself to capture growth through a combination of scale, innovation and premium offerings, as it seeks to strengthen its standing in India’s competitive FMCG landscape.