Being consumer-centric key for FMCG brands: ITC's Sanjiv Puri at BS Manthan

At Business Standard's Manthan summit, ITC Chairman Sanjiv Puri said that consumer-centric growth, stronger R&D investment and deeper AI adoption are essentials for FMCG sector

Being consumer-centric and continuously evolving with contemporary trends is paramount for fast-moving consumer goods (FMCG) companies, said Sanjiv Puri, chairman and managing director of ITC, at the Business Standard Manthan Summit on Tuesday.

 

During a fireside chat titled ‘Reimagining FMCG for a Future-Ready India’, Puri said, "We must be where the consumer is and serve what the consumer needs. That means being omnichannel and continuously refreshing and revitalising our portfolio".

 

Giving an example of the same, Puri said ITC has scaled core brands while adding new growth vectors through acquisitions such as Yoga Bar, 24 Mantra, Prasuma and Mother Sparsh. 

 

Long way to go in R&D

In line with the theme that focuses on the FMCG sector's future, Puri said that India has “a long way to go” in overall research and development (R&D) investments, with private sector participation at about 40 per cent. "Investment in R&D is critical. India’s R&D intensity is historically low, but at ITC, it is core to our strategy. The ITC Life Sciences and Technology Centre is among the largest private sector innovation hubs after CSIR," he added.

AI makes things easier and faster: Puri

Artificial intelligence (AI), he said, is becoming integral to FMCG competitiveness as it helps in providing insights into product development, supply-chain management, execution, and marketing. "AI tools help shortlist optimal product formulations in hours rather than months. AI is integral to FMCG success,' Puri said.

 

Premiumisation is the way to go: Puri

On premiumisation, Puri said it was a natural outcome of economic progress and visible beyond metros. "India is an aspirational society. Premium products sell deeply across rural India," he said, pointing to strong rural traction for premium brands such as Choco Fills and Fiama Gel Bar. Rural demand, he added, should grow faster as it remains relatively underserved.

 

“I think the rural market should naturally be growing faster than urban, because that is where there is a lot of opportunity. It is a relatively underserved market compared to urban India... That is actually a healthy sign of India’s economic progress,” he added.

 

Resilience key in uncertain times

Responding to a question about evolving geopolitical uncertainties across borders, Puri said such factors could affect consumption if they slowed economic progress or erected trade barriers.

 

"But having said that, geopolitics, climate change, technological shifts, changing consumer preferences and demographic transitions across the world are par for the course now. This is how the world is going to be. That is why, for us at ITC, it is about navigating a ‘turn’," he said.

 

He added that the sector can no longer be surprised by certain unanticipated developments in the world. "We have to learn and stay invested and learn to navigate that situation. And we need to build, build our capabilities to be dealt with," Puri said.