After riding the pandemic wave with its own digital storefront, FMCG giant ITC has stopped taking orders on its standalone e-commerce platform, ITC Store as the platform had “served its purpose.” The online store, launched during the peak of the Covid-19 pandemic, has now “served its purpose,” the company told businessline.

ITC is now leaning into a multi-platform digital distribution strategy, a category that includes e-commerce, quick-commerce, and modern trade focusing on digitally enabled sales, along with strengthening its presence in general trade. According to industry sources, this channel accounted for 31 per cent of ITC’s FMCG portfolio in FY24, nearly doubling from 17 per cent in FY20.

Its brands are now widely available on platforms such as Swiggy Instamart, Zepto, BigBasket, Blinkit, Amazon and Flipkart. “The company has strengthened its mix and assortment on these platforms, leading to an appreciable growth of over 50 per cent in these channels,” an ITC spokesperson said.

“It has been a strategic endeavour to enhance the omnichannel reach of ITC’s trade, marketing & distribution infrastructure across physical and online channels. Given that today a large number of products are available across popular e-commerce platforms, the ITC Store has ceased operations,” the spokesperson added.

Investment plan

While exiting its centralised online store, ITC continues to invest in its own D2C websites, such as classmateshop.com, dermafique.in, fabelle.in, offering personalised and premium products that go beyond what is typically available on mass e-commerce platforms.

This shift comes at a time when digital sales are reshaping FMCG distribution. A 2024 NielsenIQ report indicated that over 60 per cent of FMCG companies view e-commerce as their most critical sales channel, with nearly 75 per cent of mid-sized firms identifying it as their top priority. Emerging brands, in particular, are witnessing 1.5x faster growth in e-commerce compared to category averages.

ITC reported a four-fold increase in standalone net profit to ₹19,561.57 crore for the quarter ended March 31, 2025 on the back of a one-time exceptional gain from the hotels business. Revenue from operations rose 9 per cent year-on-year to ₹18,494.06 crore, up from ₹16,907.18 crore in the corresponding period last year, aided by growth in the cigarette and agri businesses.

The non-cigarette FMCG segment, meanwhile, clocked ₹5,494.63 crore in revenue during the quarter, marking a modest 3.67 per cent y-o-y growth. However, the segment’s operating profit fell 27.73 per cent to ₹344.89 crore, reflecting cost pressures, partially mitigated through focused cost management initiatives, portfolio premiumisation and calibrated pricing actions.

Published on June 24, 2025