ITC Ltd. has emerged as India’s second-largest fast-moving consumer goods (FMCG) company by revenue, marking a significant milestone in its transformation from a tobacco-focused business into a diversified consumer goods giant. Speaking at the company’s Annual General Meeting (AGM), Chairman and Managing Director Sanjiv Puri said ITC’s non-tobacco FMCG business has crossed ₹24,000 crore in annual revenue, underscoring the success of its long-term diversification strategy.
The achievement places ITC behind only Hindustan Unilever Ltd. (HUL) in terms of FMCG revenue in India. Over the past decade, ITC has expanded aggressively across packaged foods, personal care, home care, education and stationery products, dairy, frozen foods, nutrition, and premium food categories, reducing its dependence on cigarettes while building one of the country’s broadest consumer product portfolios.
ITC Climbs to Second Spot in India’s FMCG Market
Addressing shareholders, Puri said ITC now aspires to become India’s largest FMCG company.
Key announcements included:
- Non-tobacco FMCG revenue has surpassed ₹24,000 crore.
- ITC is now India’s second-largest FMCG company by revenue.
- The company aims to secure the top position in the coming years.
- Growth will be driven through innovation, premiumisation, distribution expansion, and acquisitions.
Key Milestone
| Item | Details |
|---|---|
| Company | ITC Ltd. |
| Current Ranking | Second-largest FMCG company in India by revenue |
| Non-Tobacco FMCG Revenue | Over ₹24,000 crore |
| Long-Term Goal | Become India’s largest FMCG company |
From Tobacco Giant to FMCG Powerhouse
ITC’s transformation has been one of the most significant strategic shifts in Indian corporate history.
While cigarettes remain an important profit contributor, the company has steadily diversified into multiple consumer categories, including:
- Packaged foods.
- Biscuits and snacks.
- Dairy products.
- Ready-to-cook and frozen foods.
- Personal care products.
- Home care products.
- Education and stationery.
- Agarbattis and matches.
Today, ITC says its FMCG portfolio includes 25 mother brands reaching more than 260 million households across India.
Major Consumer Brands
| Category | Brands |
|---|---|
| Foods | Aashirvaad, Sunfeast, Bingo!, YiPPee!, Kitchens of India |
| Personal Care | Fiama, Vivel, Savlon, Engage |
| Dairy & Nutrition | Aashirvaad Svasti |
| Education & Stationery | Classmate, Paperkraft |
| Incense & Matches | Mangaldeep, Aim |
Growth Strategy
Sanjiv Puri outlined several priorities that will drive ITC’s next phase of growth.
These include:
- Accelerating product innovation.
- Expanding premium offerings.
- Increasing investments in manufacturing.
- Strengthening digital and modern trade channels.
- Pursuing strategic acquisitions in high-growth categories.
The company has already strengthened its portfolio through acquisitions such as Yoga Bar and 24 Mantra Organic, enabling faster expansion into health foods and premium nutrition segments.
Navigating Industry Challenges
ITC’s milestone comes at a time when India’s FMCG sector is facing rising input costs driven by higher prices for edible oils, crude oil derivatives, and packaging materials.
Despite healthy demand supported by rural recovery and premiumisation trends, companies across the industry are dealing with margin pressures as cost inflation outpaces price increases.
In addition, ITC is responding to a sharp increase in cigarette taxation through calibrated price hikes, product launches, and continued investments in its non-cigarette businesses to diversify earnings.
Why the Milestone Matters
Reaching the second position in India’s FMCG market reflects the success of ITC’s long-term strategy to build a diversified consumer goods business beyond tobacco.
The milestone demonstrates:
- Strong execution across multiple FMCG categories.
- Reduced dependence on cigarette revenues.
- Growing acceptance of ITC’s brands among Indian consumers.
- Improved scale to compete with established FMCG leaders.
As India’s consumer market continues to expand, ITC is well positioned to benefit from rising incomes, premiumisation, and increasing demand for branded packaged products.
Looking Ahead
ITC’s emergence as India’s second-largest FMCG company by revenue marks a defining moment in the company’s decades-long transformation into a diversified consumer goods leader. Crossing ₹24,000 crore in non-tobacco FMCG revenue demonstrates the scale achieved through sustained investments in brand building, innovation, acquisitions, and distribution. While cigarettes remain a key contributor to profitability, the company’s expanding portfolio of food, personal care, home care, and stationery brands is increasingly driving long-term growth.
Looking ahead, ITC’s ambition to become India’s largest FMCG company will depend on maintaining strong momentum in high-growth categories, expanding premium offerings, integrating recent acquisitions, and navigating industry-wide cost pressures. With its broad brand portfolio, extensive distribution network, and continued focus on innovation, ITC is positioning itself to compete more aggressively with market leader Hindustan Unilever in one of the world’s fastest-growing consumer goods markets.
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