ITC Food's Growth and Future Prospects |
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Challenges
The Road AheadThe foods industry was considered the next "sunrise industry" in India. In terms of total output addition (value), foods industry surpassed IT and pharmaceuticals in the period 1993-2000 . The government's high priority on commercialization and value addition to agricultural produce led to liberal reforms and tax benefits in the late 1990s which had a positive impact on the growth of the industry. At the end of 2005, the overall growth rate of the foods industry was estimated to be between 10 and 15%... ITC's ProspectsITC was planning to expand its reach over the rural market with the planned opening of over 30 Chaupal Sagars, its rural hypermarket. Fifteen Chaupal Sagars were to be set up by the end of 2006. This was expected to generate revenues of around Rs. 200-300 million annually. Within a span of 10 years, ITC planned to set up 700 Chaupal Sagars. It also intended to extend its e-choupal network to 5,200 installations which would eventually serve 31,000 villages and 3 million farmers. These initiatives were expected to strengthen ITC's distribution and procurement networks and cost-competitiveness... ExhibitExhibit I: ITC Balance SheetExhibit II: The ITC Group Exhibit III: Products under 'Kitchens of India' Exhibit IV: Kitchens of India Desserts Exhibit V: Products under Aashirvaad Exhibit VI: Market Shares in the Indian Organized Biscuits Market Exhibit VII: ITC's Competitors in the Ready-to-Eat Segment Exhibit VIII: ITC's Competitors in the Confectionery Market |
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