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Regular-article-logo Tuesday, 22 July 2025

FMCG TO BE ITC GROWTH ENGINE IN THE FUTURE 

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OUR BUREAU Published 26.07.02, 12:00 AM
Calcutta, July 26 :    Calcutta, July 26:  Winds of change are now blowing through the corridors of Virginia House. ITC Ltd, the numero uno cigarette maker of the country, is now sniffing cash in the fast moving consumer goods (FMCG) segment. Buoyed by the initial success, ITC chairman Y.C. Deveshwar is now aiming at a turnover of Rs 5,000 crore from the FMCG business in 10 years. The FMCG business of the company had raked in Rs 22 crore in revenues last year. The fledgling business comprises branded apparels, greeting cards and packaged ready-to-eat food that was launched recently. To achieve the target, ITC will leverage its rural sourcing and distribution channel-e-choupal-which has now reached 6,000 villages. According to Deveshwar, ITC is setting up four e-choupals a day at an investment of Rs 1.5-3 lakh each. ITC intends to use this grand click-and-mortar channel, often referred to by Deveshwar as a 'distribution superhighway', to distribute goods and services, even produced by others, across the country. Deveshwar said the company was ready to invest up to Rs 100 crore in its e-choupal initiative to cover up to one lakh villages within seven to eight years. The e-choupal project, Deveshwar said, had the double advantage of cutting out wasteful intermediaries, thus providing a better price realisation for farmers and also giving cost advantage to end users like plants. Stake in EIH Deveshwar today scotched rumours about the tobacco giant making a takeover bid on EIH Ltd, but said the company has made 'strategic investment' in the hotel major. 'It is not our intention to make any hostile takeover bid. We do not want to be a predator,' Deveshwar said. When asked about the purpose behind ITC picking up a sizeable stake in EIH in recent times, he simply said 'it is a strategic investment.'    
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