ITC plans Rs 20,000 crore investment to boost FMCG, paper & packaging production in India. CMD Sanjiv Puri outlines strategy at AGM. Details here.
ITC’s Mega Domestic Investment Plan
Kolkata – Diversified conglomerate ITC Ltd has announced plans to invest Rs 20,000 crore in scaling up domestic manufacturing across its FMCG, paper, and packaging businesses. The move comes as part of Chairman Sanjiv Puri’s ‘Bharat-First’ strategy, prioritizing localized production, supply chain resilience, and sustainable growth amid global economic turbulence.
Key Highlights of ITC’s Expansion Plan
✔ Rs 20,000 crore investment in medium-term manufacturing capacity
✔ Focus on FMCG, paperboards, packaging, and agri-business
✔ 65% revenue now from non-cigarette segments (up from 58% in 2020)
✔ 8 new manufacturing plants established in recent years
✔ Reaches 260 million Indian households (vs. 250M in FY24)
Why ‘Bharat-First’? ITC’s Growth Strategy
1. Building Supply Chain Resilience
- Shift from global dependence to localized value chains
- Strengthening farm-to-fork, plantations-to-paper integration
- Supporting MSMEs & domestic sourcing to counter import dumping
2. FMCG & Innovation Push
- 100+ new products launched in FY25
- Focus on health, nutrition, convenience, and indulgence
- Leveraging Life Sciences & Tech Centre (LSTC) for R&D
3. Sustainable & Distributed Manufacturing
- Decentralized production for regional adaptability
- Climate-responsive operations amid rising ESG focus
Market Performance & Future Outlook
📊 FMCG Business Growth
- Revenue: Rs 21,982 crore (FY25) vs. Rs 20,967 crore (FY24)
- Consumer Spend: Rs 34,000 crore (4.6% YoY growth)
🚀 Emerging Opportunities
- Rising urbanization & digital adoption
- Growing demand for premium, healthy FMCG products
- Government’s PLI & Make in India push
💡 Sanjiv Puri’s Vision
“This is India’s moment—a confluence of favorable policies, young demographics, rising incomes, and entrepreneurial energy. Our investments will harness these tailwinds while building resilience against global volatility.”
Challenges & Competitive Landscape
⚠ Cheap imports & inflationary pressures softening demand
⚠ Regulatory hurdles in tobacco segment
⚠ Rivalry with HUL, Nestlé, Patanjali in FMCG
Yet, ITC remains bullish, banking on:
✅ Strong distribution network (6.5M+ retail outlets)
✅ Brand trust (Aashirvaad, Sunfeast, Bingo!, Fiama)
✅ Backward integration (agri-sourcing, packaging)
Conclusion:
With Rs 20,000 crore committed to local manufacturing, ITC is doubling down on India’s consumption boom while insulating itself from global supply shocks. By blending innovation, sustainability, and deep rural penetration, the conglomerate aims to cement its position as a homegrown FMCG champion.
