Diversified conglomerate ITC Ltd is looking to rapidly scale up the value-added agri products (VAAP) portfolio comprising spices, coffee, frozen marine products and processed fruits amongst others for domestic and export markets. It may be noted that agri-commodities exports are one of the biggest contributors to the company’s direct foreign exchange earnings.

The company witnessed 47 per cent jump in direct foreign exchange earnings at ₹9,779 crore in 2021-22, compared with ₹4,600 crore in FY21, driven mainly by exports of agri-commodities. Foreign exchange earnings of the ITC Group over the last 10 years totalled about $8.2 billion, of which agri exports constituted 59 per cent, according to the company’s latest annual report (2022).

The company has been able to leverage its deep rural linkages and extensive sourcing expertise towards strengthening and customising supply chains for traceable and identity-preserved sourcing of agri-commodities thereby aiding in scaling up the value-added portfolio.

ITC’s agri business division is focused on enlarging its scope of operations to include fresh and processed products in identified agri-commodities such as staples for the food service segment, fresh and frozen fruits and vegetables, the report said.

“The scope and scale of operations of ITC’s agri business have grown manifold over the years and currently encompass over four million tonnes in 22 States and over 20 agri-value chains. The strategic focus of the business in recent years has been to accelerate growth by rapidly developing and scaling up its Value-Added Agri Products (VAAP) straddling multiple value chains comprising spices, coffee, frozen marine products and processed fruits amongst others,” it said.

As these businesses develop critical mass, the business is also scaling up end-to-end presence across the value chain, supported by the R&D capabilities of its Life Sciences and Technology Centre and external collaborations.

To enhance the competitiveness of domestic agri-value chains, foster new business models and further augment value creation opportunities, ITC has successfully launched ITCMAARS (Metamarket for Advanced Agriculture and Rural Services) – a crop-agnostic ‘phygital’ full stack agritech platform in six States, with over 200 FPOs encompassing more than 40,000 farmers already added to the network.

Focus on exports

ITC is one of the leading exporters of value added frozen marine products from India. During 2021-22, the business touched record levels of sales driven by expansion into new markets in North America and West Asia.

In the processed fruits and vegetables segment, the business continues to expand its footprint in categories of fruit pulp and tomato paste across conventional and certified segments through a collaborative network comprising a large number of small and marginal farmers across four States.

ITC is among the leading players in whole spices such as chilli, turmeric, coriander and cumin. In line with its strategy of enhancing value addition, the business has, in recent years, expanded into ‘food safe’ markets such as USA, EU and Japan, leveraging its key strengths such as identity-preserved sourcing expertise, strong backward integration, superior processes, custody of supply chain and customer focused strategies.

“During the year, the business consolidated its position as a preferred supplier for discerning customers in the food safe segment, private labels, steam sterilised and organic products. Strong growth in exports was driven by new customers and richer product mix,” the report said.

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