ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • India
    • Economy
    • Politics
    • Markets
  • World
    • Economy
    • Politics
    • Markets
  • Companies
    • Auto
    • Banking & Financial Services
    • Pharma
    • Energy
    • Infrastructure
    • Media
    • IT
    • Telecom
    • Consumer Products
    • Aviation
    • FMCG
  • Personal Finance
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
  • Mutual Funds
  • Technology
  • Automobile
    • Cars
    • Bikes
  • Small Business
    • SME
    • Startups
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
    • AUTHORS
Home » Companies News

ITC's food division eyes 10% revenue from chocolates in 5 years

The company's branded packaged food business, which spans categories like staples, spices, ready-to-eat, snack foods, bakery and confectionery, among others, reportedly clocked sales of over Rs 8,000 crore last fiscal.

  • Twitter
  • Facebook
  • GPlus
ITC's food division eyes 10% revenue from chocolates in 5 years
The website of ITC's luxury chocolate brand Fabelle. Photo: Official Website
By PTI
Updated: Sun, Dec 03, 2017
04:35 pm
Mumbai, PTI
RELATED NEWS
ITC Q3 result: Company clocks 4 per cent rise, profit at Rs 3,209 cr ITC Q3 result: Company clocks 4 per cent rise, profit at Rs 3,209 cr
These Sensex companies add Rs 42,513 crore in market valuation; SBI, HUL, ITC, Infosys and Maruti Suzuki see surge These Sensex companies add Rs 42,513 crore in market valuation; SBI, HUL, ITC, Infosys and Maruti Suzuki see surge
ITC’s Yippee noodles now  Rs.1,000 crore brand ITC’s Yippee noodles now Rs.1,000 crore brand
ITC’s Sunfeast Yippee commands over 22% market share in overall market in India ITC’s Sunfeast Yippee commands over 22% market share in overall market in India
ITC sees 5% rise in Q2FY19, bags Rs 2,955 crore; cigarette revenue drops ITC sees 5% rise in Q2FY19, bags Rs 2,955 crore; cigarette revenue drops

Diversified conglomerate ITC expects chocolate category to contribute 10 per cent to its food division revenue in next five years, a top company official said.

The company had entered into chocolate category with brand Fabelle in May last year.

"In five years time we should see a 10 per cent share of the total food business from chocolates," ITC Foods Divisional Chief Executive Hemant Malik told PTI here.

The company's branded packaged food business, which spans categories like staples, spices, ready-to-eat, snack foods, bakery and confectionery, among others, reportedly clocked sales of over Rs 8,000 crore last fiscal.

The chocolate industry in the country is pegged at Rs 8,000 crore and ITC is now looking at the mass premium space.

"We will phase ourselves. There is no point in launching too many products. We will be looking at various spaces and be a full portfolio player (in chocolate category)...Overall market share in five years, we should have 15-20 per cent," Malik said.

The company manufactures chocolates from its Bengaluru facility at present and it has added another factory at Haridwar.

"We have a factory in Bengaluru and we have also set-up a factory in Haridwar, which will help us enter into the mass range. We want to bring something new and differentiated to the market. We are developing new products and testing our products. Once we feel we are ready, we will come to the market," he said.

On the revised GST rates for chocolates from a tax slab of 28 per cent to 18 per cent, he said, "we have corrected our prices accordingly. Once that happens, it becomes more accessible to the consumers and hopefully the market will increase".

ITC launched its luxury chocolate brand Fabelle at boutique stores in it hotels, which also serve as experience centres, and plans to expand its reach in the retail format.

"We launched Fabelle one and half years back in the chocolate luxury space. We have seven boutiques that we have launched in our hotels. We are trying to take it outside (our hotels) and we are taking it to malls," he said.

The company has opened an outlet in Kolkata for its boxed chocolates and is opening a larger outlet in Delhi where people can buy boxed chocolates and also see the desserts, he said, adding that the company could also look at retailing boxed chocolates at airports.

The tobacco-to-hotels firm, which is focusing more on its non-tobacco businesses, aims to be an Rs 1 lakh crore company in the FMCG space by 2030, with the packaged foods contributing Rs 65,000 crore.

It also plans to enter coffee category soon, and Malik said the company is evaluating opportunities in health and nutrition space for its existing categories.

"We have already forayed into the health and wellness segment with some very niche and innovative products. We are formulating products which will have health benefits. While indulgence will play a large part in the food market, the nascent health segment is expected to grow and we will make a significant play in this area," he said.

TAGS:
ITCITC food divisionITC chocolatesITC chocolates revenueGST ratesITC on GSTluxury chocolate brandFabelleFMCG
RELATED NEWS
ITC Q3 result: Company clocks 4 per cent rise, profit at Rs 3,209 cr ITC Q3 result: Company clocks 4 per cent rise, profit at Rs 3,209 cr
These Sensex companies add Rs 42,513 crore in market valuation; SBI, HUL, ITC, Infosys and Maruti Suzuki see surge These Sensex companies add Rs 42,513 crore in market valuation; SBI, HUL, ITC, Infosys and Maruti Suzuki see surge
ITC’s Yippee noodles now  Rs.1,000 crore brand ITC’s Yippee noodles now Rs.1,000 crore brand
ITC’s Sunfeast Yippee commands over 22% market share in overall market in India ITC’s Sunfeast Yippee commands over 22% market share in overall market in India
ITC sees 5% rise in Q2FY19, bags Rs 2,955 crore; cigarette revenue drops ITC sees 5% rise in Q2FY19, bags Rs 2,955 crore; cigarette revenue drops

LATEST NEWS

Saudi Arabia signs deals to invest $20 bn in cash-strapped Pakistan

Top shares to buy: Here are the top pick counters for market investors, say experts

Niti Aayog delegation visits Saudi Arabia, Invest India grid launched

Customs duty hike: Cement, fruit shipments from Pakistan among 10 most hit imports after Pulwama terror attack

Farm sector doles 'disturbing trend', says former RBI Guv

JNPT development works will generate 1.25 lakh jobs: Gadkari

Saudi signs deals to invest USD 20 bn in cash-strapped Pakistan

Aero India 2019: Drones, balloons banned for Bengaluru air show for security reasons

Govt assures of positive steps on BSNL unions, associations' demands

Public Provident Fund investment: Forget market volatility, retire with Rs 1.8 crore, grow money by 400%, save tax

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • Amazon Prime Day
  • Income Tax
  • Bharti Airtel
  • NPA
  • Home Loan

Trending Topics

  • Farm Loans
  • 7th Pay Commission
  • Sanitary Pads
  • National Stock Exchange
  • GST

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved