ITC looking to invest in cold chains to grow agri-business

Diversified conglomerate ITC Ltd is planning to invest in “state-of-the-art” cold chains to cover farm produce that include fresh and frozen fruits and vegetables, said Chairman and CEO YC Deveshwar.

Addressing shareholders during the company's 105th annual general meeting here on Friday, Deveshwar said the company would look to establish cost effective regional cold chains across the country.

“Your company will enhance its leadership in the farm-to-fork value chain,” he said, addressing in what is supposed to be his last annual general meeting as the executive chairman of the company.

According to the Chairman, ITC has already launched “luxury chocolates” — targeting the premium segment — under the ‘Fabelle’ brand.

The chocolates are currently available at its hotels in Kolkata and Bengaluru.

“Very soon the Fabelle chocolates will be available at all ITC hotels, before being extended more widely,” he said.

The company is also in the process of launching a premium variant of coffee ‘Sunbean’.

The launch is expected “shortly”. According to sources, the Sunbean coffee is currently available at the coffee shop in its Kolkata hotel.

A set of new “super safe” spices at par with European standards is also set to be launched shortly.

Deveshwar has reiterated that ITC had targeted a ₹1,00,000 crore turnover from its new FMCG segment by 2030 and that it aimed to be an “Indian MNC” brand in the days to come.

Around 81 per cent of the value addition created by the company accrues to the exchequer at central and state levels.

Praising Baba Ramdev’s Patanjali as one such Indian brand to reckon with, Deveshwar said: “I am very proud that Patanjali has built an Indian brand, but, we will also compete with them. Competition is good for consumers.”

Functional food The company is also in the process of addressing widespread concern of Indian population in areas such as diabetes, cognition, gut and cardiovascular health. 

"Similarly, the product development in the personal care arena will be inspired from research focusing on Indianness, namely a blend of Indian genetics and environmental factors of prime relevance to Indian consumer of personal care products,” he added.

In the foods business, the company was “progressively entering” the health and wellness space.

“A plethora of possibilities is being examined in functional foods and food fortification for better nutrition,” Deveshwar said.

These “science-led” innovations will be boost the food business. 

The company’s plans to “cultivate medicinal and aromatic plants” have made rapid progress.

Tobacco biz upbeat Growth of ITC's tobacco business was good for its shareholders, the Chairman said.

The comments came after some shareholders pointed out that the growth of the tobacco business should ideally be less than that of others (non-tobacco and FMCG business).

“We are not competing within the company. The other FMCG businesses grew and along with that the tobacco business grew further. Growth of the tobacco business will be good for shareholders,” he said.

The tobacco business was increasingly coming under prohibition by various government regulations but continued to be the prime revenue driver of the company.

ÍTC shares closed at ₹249.55, down by 0.44 per cent, on Friday, on the BSE.

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