ITC Foods to increase focus on health-friendly products

Company says that the health sector is very small for ITC but they predict it will grow significantly

FMCG major ITC foods plans to bring new products that are health-friendly and has already started research and development work at its life science center in Bengaluru.

"Going forward we will focus a lot on the health sector. We were the first to introduce a complete maida free and sugar and artificial sugar free biscuit in the market. We are working on product innovation in that space going further," said V L Rajesh, divisional chief executive, ITC limited, Food division.

Rajesh said that the two areas the company will focus on is health and indulgence. He says that from the point of view of general public health sector will be the big focus.

"It is a difficult area. There needs a lot of research and testing, so tests are already on and we are working on it," Rajesh added.

Currently, the company says that the health sector is very small for the company but they predict it will grow significantly.

Other than the biscuits, the company will also focus on juices and noodles segment. The company already has healthy versions of noodles that it introduced in June this year and all natural juices on the shelf, it will be adding more variants of the same. The company also launched the Aashirvad sugar release control atta.

The company has 8.5 per cent market share juices and around 10 per cent market share in the juices segment in metros in the last quarter. ITC food division launched their juices B Natural last year in seven variants and have now increased it to 9 variants.

"It (juices) has not grown to my expectation but we are just one year old. We have learnt a lot in the last one year and we are sure to grow," said Rajesh.

The market share in the noodles segment has increased from 15 per cent to 25 per cent post the Nestle crisis, he said.

The company also entered the premium coffee business on Tuesday by launching two premium coffee variants of Sunbean gourmet coffee- Nicamalai and Panagiri. The premium coffee will be available in the ITC luxury hotels only and will be served in the cafe and also sold as a packet at a cost of Rs 800 for 200 gms. The coffee business is a collaboration between three ITC companies - food, hotels and agri produce division.