ITC's FMCG biz clocks in consumer spend of over ₹34,000 cr in FY25

Consumer spend on ITC's FMCG brands grew 4.6 per cent to over Rs 34,000 crore in FY25, with rural demand holding up despite muted growth across the broader sector

Consumers spent more than ₹34,000 crore on ITC’s non-cigarette fast-moving consumer goods (FMCG) products in 2024-25 (FY25), according to the company’s latest annual report.

 

The company mentioned that its over 25 “world-class” Indian brands, largely built through an organic growth strategy leveraging institutional synergies in a relatively short period of time, represented an annual consumer spend of over ₹34,000 crore and reached over 260 million households in India.

 

The segment revenue from the FMCG business in FY25 was at ₹21,981.57 crore and Ebitda stood at ₹2,163.92 crore. Ebitda stands for earnings before interest, taxes, depreciation and amortization.

 

Consumer spend is net sales turnover, including margins and taxes. In FY24, the annual consumer spend stood at nearly ₹32,500 crore.

 

The consumer spend in FY25 reflected a growth of about 4.6 per cent over FY24. It is at the lower end compared to recent years, albeit in the face of challenges in consumption expenditure facing the overall FMCG sector.

 

In FY24, the growth in consumer spend was about 12.1 per cent, and in FY23 it was 20.8 per cent as the economy came out of the grip of the Covid-19 pandemic. In FY22, growth in consumer spend was more than 9.1 per cent.

 

ITC’s management commentary in the annual report mentioned that the impact of inflationary pressures on household savings weighed on consumption expenditure, particularly in urban markets. However, demand in rural markets was relatively resilient. The weakness in consumption was reflected, inter alia, in the muted volume growth of the FMCG sector. 

 

However, the company expects consumption expenditure to pick up, progressively led by continued recovery in rural demand backed by a good monsoon along with improvement in urban demand as inflation stabilises and tax cuts announced in the Union Budget boost disposable income.

 

The cumulative impact of pickup in capital expenditure (capex) in the second half of FY25, and frontloading of government capex outlay in FY26, along with interest rate cuts and liquidity support from the Reserve Bank of India (RBI), would also be supportive of growth, the company mentioned.

 

Amid subdued demand conditions, ITC launched 100 new FMCG products during the year, anchored on the vectors of health and nutrition, hygiene, protection and care, convenience and on-the-go, indulgence, et al.

 

The company said that FMCG businesses were well poised to be rapidly scaled up across the three growth platforms — fortifying the core, addressing value-added adjacent opportunities leveraging mother brands, and nurturing new vectors of growth.

 

Multi-dimensional interventions, including strategic acquisitions in high-growth and future-facing categories, have been made to accelerate growth, and enhance competitiveness and market standing of the FMCG businesses, it further added.