ITC’s non-FMCG cigarette business saw their sales grow by 24% in only one quarter, and they have successfully managed to turn around their foods businesses as well. In the December 2010 quarter, The Bingo! range of potato chips had a growth in sales by 48%. Back in August 2001, ITC made a small food business entry with its Kitchens of India ready-to-eat preparations. And then, come March 2007 when ITC launched Bingo into the market, entered the fastgrowing branded snack foods segment.
In a cigarette business, cigarette companies are able to increase their sales by targeting new customers and by providing innovative products. ITC’s cigarette business has been able to grow by 24% in only one quarter due to their focus on these two areas.
In addition, ITC has also been focusing on its food businesses and has managed to turn them around successfully. The Bingo! range of potato chips had a growth in sales by 48% in the December 2010 quarter. This shows that ITC is a company that is capable of achieving success in various businesses.
After ITC introduced its wafer snack brand, Bingo, to the Rs 1,800-crore branded snack market16 per cent of that pie nationally and become the second most popular snacks company in the country (Source: AC Nielsen).
Bingo entered the branded snacks market in December last year with a portfolio of nine products in the wafer category. The Company has since then added potato chips, corn curls and extruded snacks to its product mix. The Company has plans to take the Bingo brand to newer geographies and product segments.
The Company’s focus on value creation for all its stakeholders remains constant, as it strives to create superior shareholder value through a combination of organic and inorganic growth opportunities, judicious capital deployment and disciplined financial management.
The Company’s strategy is built around five key pillars – Focussed Brands & Categories, Rural Expansion & Distribution Strengthening, International Business Growth, Cost Efficiency and Capital Management. Through this strategy, ITC aspires to capture the emerging opportunities in India and abroad, creating multiple drivers of growth.
ITC’s Branded Packaged Foods business has registered strong growth in recent years, driven by the successful rollout of its flagship Bingo! range of snacks as well as expansion into newer categories such as pasta, ready-to-cook kits, spices, biscuits and atta. The business today offers a wide range of products in the snacking, staples and confectionery segments under popular brands such as Bingo!, Yippee!, Sunfeast, Aashirvaad, Kitchens of India, Mint-o, Candyman and GumOn.
With a view to consolidating its presence in the packaged foods market and expanding its product range, ITC has made a number of strategic acquisitions in the recent past. In October 2015, ITC acquired Sunrise Foods, a leading spices company with a strong presence in Eastern India.
In December 2015, ITC entered the pasta market with the acquisition of Del Monte’s pasta business in India. In May 2016, ITC strengthened its position in the biscuits market with the acquisition of Gujarat Ambaliya Biscuits Company. These acquisitions have not only enhanced ITC’s product portfolio but also helped expand its distribution reach.
Looking ahead, ITC’s branded packaged foods business is well positioned to capture the emerging opportunities in the Indian food market through a combination of innovative products, efficient marketing and an expansive distribution network.
The company quickly realized that in order to be successful in the food industry in India, they would need to have a good understanding of local tastes and preferences. ITC wanted to provide Indian consumers with some new and exciting snacks options.
ITC’s Foods business comprises of branded packaged foods, confectionery, staples and ready to eat snacks. The Company has over 60% share in the organised Indian biscuits market.
ITC entered into the segment with the launch of its Sunfeast range of biscuits in August 2003. The Company quickly acquired significant share in the premium and cream biscuit categories. ITC’s Yippee! is today India’s second largest pasta brand. ITC’s Kitchens of India Ready Meals are sold across 47 cities in India. Aashirvaad Salt is a leader in the branded iodised salt segment with around 27% share. ITC’s Bingo! Snacks is today one of the fastest growing snack food brands in India.
The Company has also entered into the dairy business with the launch of Aashirvaad Svasti Ghee, India’s largest selling branded ghee. ITC’s Savlon is India’s leading antiseptic soap brand. The Company has also forayed into the premium personal products category with Vivel – a range of soaps and shower gels.
In the Branded Packaged Staples segment, ITC’s rice brands – Aashirvaad, Kitchens of India and Farmland – enjoy significant market share. The Company has a strong presence in the Atta segment with the flagship Aashirvaad Atta enjoying around 22% share in the organized Atta market.
Master Chef of ITC hotels created 16 unique flavors with a twist, such as Spicy Masala Remix, Chatkila Nimbu Achar, and Tandoori Paneer Tikka flavored potato chips. This was in stark contrast to Lays, which was coming up with flavors like Spanish Tomato, American Style Cream and Onion.
The new variant from Lays which are Indian flavors like Lay’s Chaat Street, Mint Mischief and Wafer Style is a direct result of the tough competition from Bingo. ITC also utilized the idea of using the very famous Gujrati Khakra to create their hugely successful Mad Angles product line.
Company even used to offer free samples of the products in market and on events. ITC’s Bingo! is one of India’s leading snacks brands. The company offers a wide range of chips, extruded snacks, corn puffs, and nuts under the Bingo! brand. ITC’s Bingo! chips are available in a variety of flavours, including chatpata sour cream and onion, tikka masala, classic salted, jeera masala, and more. ITC’s Bingo! also offers a range of convenient snacking solutions such as multipacks and on-the-go packs.
With its catchy ‘Bingo! It’s time to snack’ tagline, ITC’s Bingo! has established itself as a fun and vibrant brand that is synonymous with snacking. ITC’s Bingo! is also the official snack partner of the Indian Premier League (IPL).
ITC’s Bingo! chips are made from high quality potatoes that are procured from select farmers across India. The potatoes are then peeled and cut into uniform slices before being fried in vegetable oil. ITC’s Bingo! chips undergo a unique triple frying process that gives them their signature crunch.
