FMCG business to be profitable in six years: ITCJuly 29th, 2011 - 8:38 pm ICT by IANS
Kolkata, July 29 (IANS) Multi-business conglomerate ITC Limited aims to turn its non-tobacco fast moving consumer goods business profitable by 2017 as it eyes the country’s number one position in the segment.
“I promise you that before I hang up my boots, the FMCG business will be a profitable business,” ITC chairman Y.C. Deveshwar told shareholders at the company’s 100th annual general meeting here.
Deveshwar has already announced that he will step down from the top post by 2017.
The AGM extended his tenure as chairman by five years to be effective from February 2012.
“We have set our targets very high. We want to be the largest in FMCG business in India.. So we have commenced not one but many businesses in the segment,” Deveshwar said.
In each segment like biscuits, snack food, confectionary or personal care, the company was competing with the best in that particular sector, he said.
“One day I believe it will bring good fortune for us.Already signs are there,” he said.
He said the commodity trading wing, ITC Global Holdings, which ITC has incorporated in 1992, would be wound up soon.
“It has been under judicial management, and now it is under winding-up process. There is also a case going on with the judicial managers wanting to claim some money out of the parent company ITC,” he said.
However, the multi-speciality major has argued that ITC Global was registered and operated in Singapore with limited liability and that no claim “lies with ITC”.
“We are hoping that in the not so distant future this company will be wound up,” he said.
Deveshwar said the company was marketing multi-grain atta both in the country’s southern and eastern parts.
“But we also have different blends. Over a period of time after this blend gets to be popular we will look at other blends also. As we go forward we will take into account such food that contributes to the wellbeing of consumers,” he said.
Presently 80 percent of ITC’s revenue comes from its tobacco business.
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Tags: agm, annual general meeting, atta, biscuits, blends, business conglomerate, commodity trading, confectionary, distant future, global holdings, good fortune, itc limited, judicial management, kolkata, limited liability, moving consumer goods, parent company, profitable business, snack food, wellbeing