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In the mixture it is seen that ITC appears to have a identified FMCG segment to main growth driver irrespective of financial policy showing encouraging performance in group matrix. In the latest four quarters and full year data for the year 2020-2021 showed some interesting trends. The revenue from ex tobacco business grew from 16% in ITC 2020-2021 compared with peer group average of 8-9%. Also the comparative figures stands out on quarterly sequential basis in last four quarters.
The first quarter of 2020-2021, ITC’s FMCG sector was incremented up to 19% in comparison of decline about 2% reported by the peer group; later it was followed up by 15% during second quarter with peer group average of 8%. By the third quarter ITC’s FMCG business show a rise of 11% compared with the peer industry average of around 10%.
By the fourth quarter the industry average growth was 20% that was outperformed in business growth of 16%, it turned out to be mainly low base peer group because the revenue was fallen off (-)7% in the fourth quarter of 2019-20 compared with ITC growth segment of 5% revenue basis.
In 2015 ITC bought Savlon from Johnson & Johnson into disinfectant and antiseptic products, Savlon has crossed around Rs 1,000 crore in consumer spends in 2020-2021 from Rs 250 crore in previous year. it became the largest brand in company’s personal care product by overtaking Vivel.
Quarterly presentation of the company holds some clues in the performance of ex tobacco FMCG segment, ITC has launched over 120 new products during the year amid pandemic. cross segment synergies can become critical to sustain growth and the business can scale up to products such as B Natural juices, Fabelle chocolates and others.