ITC to enter into home & personal care biz

MUMBAI: Diversified business group ITC plans to enter home and personal care segment, besides scaling up its FMCG business in an apparent move to reduce dependence on the cigarette business, which it forecasts to face stiff challenges in the future.

"In view of the bleak taxation and regulatory scenario for tobacco, exacerbated by debilitating discontinuities like VAT etc, it is quite likely that industry volumes will be under pressure," ITC Chairman Y C Deveswar said in a letter to shareholders.

Without setting any time-frame for venturing into the home and personal care segments, Deveswar said, the company plans to sell such products through a network of 6,400 web kiosks and 18 supermarkets.

He said the company would aggressively scale up its activities in the FMCG sector, in which it aims to be a leading player.

"This is sought to be achieved through collaboration among the various businesses, significant investments in brand building and further enhancement of supply chain, sales and distribution capabilities," he said.

"Over the medium to long term, these initiatives are expected to provide the basis for sustainable growth in shareholder value."

Bullish on the FMCG sector, the company said the key demand drivers would be the rising disposable incomes, relatively low levels of per capita consumption, growing urbanisation, favourable demographic profile and the increased penetration of organised retail.