\"The company has made relentless efforts in building world class brands, which had garnered an annual consumer, spend of Rs 11,000 crore,\" added Deveshwar.
ITC has set a target of garnering revenue of Rs 1 lakh crore by 2030 from its FMCG business. Y C Deveshwar, chairman said today it look to increase presence in this segment.
Presently, revenue from FMCG business stands at around Rs 9,000 crore.
ITC was targeting to gather a business volume of Rs 1 lakh crore from FMCG business alone by 2030, Deveshwar said the company was investing heavily in brands to create consumer franchise in number of ways.
"The company has made relentless efforts in building world class brands, which had garnered an annual consumer, spend of Rs 11,000 crore," added Deveshwar.
Deveshwar said ITC was not on the bottom-line growth path but on the top line instead. He adds, "This is why the company is creating the brands of tomorrow".
On the cigarettes business, he said the regulatory environment was not entirely rational.
"I wonder some NGOs are acting as agents of overseas cigarette companies helping smuggling of cigarettes into the country. Smuggling of cigarettes is rising while the legal cigarette industry is losing volumes which are causing the Indian farmers to lose income", he said.
Deveshwar also states that ITC would be one of the most profitable FMCG companies in future.
He says, "Profits are not the only indicator of success. For instance e-commerce companies are losing cash as they are in the process of building market position. This is what ITC is doing by investing in brands”.
Regarding investments, he said ITC was investing Rs 3,500 crore in West Bengal in two factories, InfoTech centre and one hotel. The company is also investing Rs 6,000 crore at the Telengana paper mill to double capacity. ITC was envisaging an outlay of Rs 25,000 crore across 65 projects in the country.
ITC Ltd has also posted yesterday a subdued 3.61 per cent rise in net profit at Rs 2,265.44 crore for the first quarter ended 30th June, due to pressure on cigarette sales and sluggish demand for other FMCG products.
ITC also said in the previous fiscal, during June quarter, net sales have been declined 7.18 per cent to Rs 8,505.53 crore for the quarter as against Rs 9,164.42 crore.