ITC plans third food unit in Bangalore

Kolkata: Cigarette-to-foods major ITC is looking at setting up its third factory in Bangalore, according to Ravi Naware, divisional chief executive of the foods division.

At present, the company manufactures its salty snacks range Bingo, cream biscuits and shampoos at its existing plant in Haridwar. It is also in the process of setting up its second plant in Pune at an investment of Rs 100 crore. “We have not decided on the investment for the Bangalore plant yet, but able to finalise the land,” Naware said.

ITC is also looking at inorganic growth.

“We would want to acquire a company to open up new opportunities and markets for us. We are also looking at acquiring companies that would help us enter categories where we are not operating right now,” Naware said, adding that the company was open to any kind of investment for a worthwhile acquisition deal.

ITC is also looking at expanding its foods basket in its existing categories.

“We are strongly looking at segmenting the market. For instance, we are looking at launching different variants of atta under the Aashirvaad brand. The variety in the grain of atta would bring about different tastes in rotis, as desired by different Indian communities,” Naware said. In spices, ITC is looking at adding more variants such as spice mixes.

The company is also bullish on associating itself with health and wellness-related categories. For instance, it recently launched ‘multi-grain’ biscuits under the Sunfeast brand which is reportedly a healthy option for people of all age groups.

ITC’s FMCG sales grew by 68 per cent during 2007-06 over 2005-06 to touch Rs 1,704 crore during the year.

The branded packaged foods business, which saw sales rising 51 per cent over the previous year, is expected to accelerate growth through cheaper agri-sourcing using e-choupals, in-house cuisine expertise, product development capabilities and branding, sales and distribution competencies.