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ITC Annual Report Shows Wobbly Recovery Momentum In FY22

It emphasises that the company remains committed to the rapid scaling up of the FMCG business with robust growth platforms and is preparing a ready portfolio for the future

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ITC in its annual report for FY22 said that the recovery momentum in the year was very feeble due to Covid-19 and the unparalleled spike in prices due to disruptions in global supply chain, shortage of containers and clogging of ports.

The report stated that by taking advantage of market opportunities with agility, focusing on execution excellence, and taking proactive strategic interventions, the company registered significant growth in revenue and profits.

The report highlights that inflation continues to be a key indicator for the Fast Moving Consumer Goods (FMCG) business in coming years. 

Mobility improvements have contributed to strong growth in discretionary/out of home categories compared to the pre-pandemic levels.

It emphasises that the company remains committed to the rapid scaling up of the FMCG business with robust growth platforms and is preparing a ready portfolio for the future.

It predicted that Postal Life Insurance will provide a boost to exports as FMCG businesses continue to leverage their export footprint.

On the growth strategy it reiterated its focus on strengthening its core, expanding into adjacent markets with world-class mother brands and establishing future-oriented categories.

Despite being the world's second largest consumer of tobacco, legal cigarettes make up only 8 per cent of total consumption in India versus an average of 90 per cent globally. 

Respite from further increase in taxes has provided the legal cigarette industry with an opportunity to claw back volumes lost to illicit trade, the operating conditions remain challenging due to high levels of taxation, a significant illicit trade presence, and disproportionate regulatory pressure. 

While there were challenges in FY22, the business beat pre-pandemic levels in the second half.

It abides by the "Asset Right" strategy of ITC Hotels, which is an important component of the ITC Next strategy. In addition to sweating existing assets and expanding management contracts, the company plans to add new revenue streams. By expanding its value-added agricultural products portfolio, the company is embarking on NextGen agriculture.

The company intends to expand its presence in the naturals and ayurvedic space, evaluate value-adding inorganic growth opportunities and scale up its D2C presence.


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