ITC Surpasses Britannia to Become India’s Second Largest in Packaged Foods

ITC Limited has solidified its position as a powerhouse in the Indian food industry, surpassing Britannia Industries to claim the title of India's second-largest listed packaged foods company by sales. This news, reported by The Economic Times (ET), underscores ITC's impressive growth trajectory and its dominance within the domestic market.

ITC Surges Ahead in Packaged Food Sales

• Consolidated Sales Figures: ITC's food business reported robust consolidated sales of Rs 17,194.5 crore for the fiscal year ending March 31, 2024 (FY24). This figure encompasses both domestic sales and export figures, showcasing the company's strong performance across various markets.

• Dominant Brands: ITC's success is fueled by its well-known food brands, including Aashirvaad atta (wheat flour), Bingo potato chips, and Sunfeast biscuits. These popular household names resonate with Indian consumers, contributing significantly to ITC's market share.

In comparison:

Britannia's Performance:

Britannia Industries, the previous holder of the second-place position, reported consolidated sales of Rs 16,769.2 crore for FY24. When considering their total income, which incorporates revenue beyond their core food segment, the figure reaches Rs 16,983.4 crore.

Nestle Remains Market Leader:

Nestle India maintains its position at the forefront of the Indian packaged foods market. However, it's important to note their total sales figure of Rs 24,275.5 crore for FY24 covers a 15-month period due to a recent shift in their financial reporting cycle.

Factors Driving ITC's Growth

• Strategic Expansion: ITC's strategy of expanding its premium brand portfolio has proven successful. This approach, coupled with the consistent launch of over 100 new products annually, has fueled its sales growth and brand recognition.

• Strong Performance Across Categories: ITC's growth is not limited to a single segment. The company witnessed a commendable 9% year-on-year increase in its food business sales during FY24. This outpaces Britannia's more modest 2.9% growth. Additionally, specific categories like atta (wheat flour) saw a price rise of 7-8%, while biscuits and salty snacks experienced a robust 10% growth year-on-year.

Earlier data from NielsenIQ had already hinted at ITC's dominance within the domestic packaged food market. They surpassed competitors like Britannia and Parle Products in the nine-month period leading up to September 2023. This trend continued throughout FY24, with ITC's FMCG division achieving a notable 9.6% year-on-year increase in gross sales, reaching Rs 20,966 crore.

Conclusion

ITC's ascension to the second-largest position in India's packaged foods market signifies a significant shift in the industry landscape. This accomplishment is a testament to the company's strategic expansion, consistent innovation, and strong brand presence across diverse food categories.

Here's a quick recap:

• ITC's FY24 sales figures showcase a robust performance, surpassing Britannia and solidifying their position as the second-largest player.

• Strategically expanding premium brands and consistently launching new products have been key drivers of ITC's growth.

• The company witnessed impressive growth across categories like atta (wheat flour), biscuits, and salty snacks.

Looking ahead, ITC's continued focus on innovation, brand building, and catering to evolving consumer preferences will be crucial for maintaining its leadership position. The Indian packaged food market is a dynamic space, and ITC's ability to adapt and cater to the growing demands of the Indian consumer will be a key factor in its future success. This achievement also highlights the increasing competitiveness within the Indian FMCG sector, paving the way for exciting developments in the years to come.