ITC's Food Arm Is Emerging As the Behemoth's Key Pillar Of Growth Although severe inflationary headwinds were witnessed across several key inputs during the third quarter; Atta, spices, snacks, frozen snacks, dairy drove growth in the period
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ITC's FMCG businesses delivered resilient performance amidst muted demand conditions with segment revenue growing 4.0 per cent year-on-year(YoY) to INR 5,418 crore; up 5.2 per cent YoY in the third quarter of FY2025. Its food arm is constantly adding up to the company's strong growth trajectory. ITC's Branded Packaged Foods business is one of the fastest growing food businesses, driven by the market standing and consumer franchise of its popular brands - Aashirvaad, Sunrise, Bingo! Sunfeast, Fabelle, Sunbean, Yippee! Kitchens of India, B Natural, ITC Master Chef, Farmland, mint-o, Candyman, Jelimals and GumOn.
Although severe inflationary headwinds were witnessed across several key inputs ( edible oil, wheat, maida, potato, cocoa, packaging inputs etc.) during the quarter; Atta, spices, snacks, frozen snacks, dairy drove growth in the mentioned period.
"The impact of sharp escalation in key input costs was partially offset through focused cost management, calibrated pricing actions and premiumization. Competitive marketing investments were sustained during the quarter despite short term inflationary pressures towards supporting growth and market standing," the company noted in a statement. Competitive intensity continues to remain high (including from local players) in certain categories such as noodles, snacks and biscuits.
In this quarter 'Aashirvaad' Atta posted robust growth reinforcing its leadership position in the Branded Atta industry. Value added variants and staples adjacencies continue to scale up rapidly (~1.8x over two years) and now comprise ~14 per cent of Aashirvaad Staples portfolio.
The company's 'Sunrise' spices delivered strong growth during the quarter and continued to strengthen its market standing in the core market of West Bengal while expanding in other adjacent markets including North East, Bihar and Jharkhand. Sunfeast Biscuits and Cakes continues to strengthen its portfolio on the back of differentiated products and powerful brand propositions anchored on strong consumer connect and local insights.
YiPPee! Noodles sustained its position as second amidst heightened competitive intensity. The business continued to strengthen its portfolio through a combination of product laddering across multiple price points, wider assortment to cater to diverse consumer cohorts and scale up of differentiated offerings. The brand continued to invest in various high decibel campaigns to connect with regional culture codes to generate positive consumer buzz and increase visibility.
Bingo Snacks delivered resilient performance during the quarter and continued to strengthen its product portfolio with the launch of snacks/namkeens. The 'ITC Master Chef' range of frozen foods continued to deliver strong growth in both retail and food service channels, powered by over 60 differentiated offerings in both vegetarian and non-vegetarian segments. In the Dairy & Beverages category, 'Aashirvaad Svasti' fresh dairy portfolio comprising pouch milk, curd, lassi and paneer recorded strong growth. The segment continues to centre its marketing initiatives around regional festivals to deepen consumer engagement.
In order to strengthen the food portfolio further, ITC will acquire 100 per cent stake in Prasuma over a period of three years. The first tranche of 43.8 per cent stake shall be acquired upfront and balance stake will be acquired, in tranches, by June, 2028, basis pre-defined valuation criteria and subject to other conditions as stated in the definitive agreements.
