• Home
  • Food menu
  • Seeing India’s appetite, ITC adds breakfast items to its menu

Seeing India’s appetite, ITC adds breakfast items to its menu

By on November 23, 2021 0
The conglomerate Cigarettes-to-hotels Ltd. has made a foray into the Indian breakfast segment with a ready-to-cook and ready-to-mix range and staples under its FMCG ‘Aashirvaad’ brand, taking a stand against multinationals Kellogg, PepsiCo and Nestle, and Indian companies MTR and Gits Food.

Hemant Malik, general manager of ITC’s food business division, told ET that the company has launched breakfast staples including rawa, suji and vermicelli, and plans to expand the brand. to the adjacent categories of dalia, poha and multi-mil cereals.

The market for breakfast staples in India has a potential of over 10,000 crore, growing over 12% each year.

The ready-to-cook, ready-to-mix and commodity categories have higher margins compared to packaged products, but low penetration of brand players.

Malik said the company can use its existing sources of supply, as most are wheat-based and have manufacturing capabilities.

“Aashirvaad is largely a brand offering products for meals, whether it is atta, salt, legumes or ghee. We are expanding the brand to other value-added segments with which we can prepare breakfast or snacks, ”said Malik. “Some of these categories are huge in scope and have the ability to generate good margins by leveraging our scale, wheat adjacency and supply chain efficiency.”

He said that the realization of the price per kilogram of these products is much more than the regular attack.

ITC has introduced instant mixes idli sambhar, upma, instant poha, instant suji halwa, idli and dosa in the ready-to-cook category. It will also extend ‘Aashirvaad’ to Besan. Aashirvaad is ITC’s largest brand in the non-cigarette FMCG segment, with consumer spending (which includes sales, trade commissions and taxes) of over 6,000 crore. While the brand started with the packaged attack – where it has over 40% of the 13,000 crore market that caters to over 40 million households – it has grown over the years into organic pulses. , salts, dairy products, flour of superior quality. and spices.

“The expansion of the Aashirvaad category will help enhance the portfolio. We want the brand to play in the Indian cuisine breakfast space and not Western grains like oats, ”said Malik. “We launched vermicelli and a pack of 20 for ready-to-cook options like poha, upma, suji halwa. The institutional selling opportunity for these value-added products is also huge. ”

ITC’s food business is the largest in the non-cigarette FMCG segment, with gross revenue of 12,241 crore in 2020-2021, growing 18% year-on-year. In the last fiscal year, it recorded sales of 2,467 crore in other categories, including personal care, education and stationery products, safety matches and agarbatti. In contrast, ITC’s cigarette business generated gross sales of 20,333 crore in FY21. The food business is also profitable for the company.

Source link