ITC aims for ₹8 lakh crore FMCG market by 2035, leveraging AI and acquisitions

ITC expects its FMCG market to expand to around Rs 8 lakh crore by 2035 as the conglomerate looks to strengthen its position through brand-building, digital commerce expansion, and strategic acquisitions, Chairman & Managing Director Sanjiv Puri said during the company's Annual General Meeting (AGM) on Thursday.

Addressing shareholders at the AGM, Puri said the Indian FMCG market was "poised for significant expansion" as the consumer landscape evolves rapidly.

"The rise of aspirational Bharat, premiumisation, Gen Z and Gen Alpha consumers, expanding digital access and the growth of quick commerce are reshaping categories, channels and expectations," he said.

To capitalise on these trends, ITC is leveraging an AI-led consumer insight ecosystem that enables micro-segmentation and supports the development of differentiated offerings tailored to evolving consumer needs, lifestyles and occasions, Puri said.

He also underscored the growing role of online and omnichannel commerce in the company's growth strategy.

"These differentiated products reach millions of homes through your company's smart omnichannel network with unique multidimensional capabilities across ambient, chilled, frozen and perishable supply chains," Puri stated.

The company is also using acquisitions to expand its presence in high-growth and premium categories. Puri said the Indian FMCG market offers significant headroom for growth.

"The Indian FMCG market is poised for significant expansion, with your company's addressable market estimated at around Rs 8 trillion by 2035, pointing to the immense headroom to grow. The consumer landscape in India is also evolving rapidly," he said.

Puri said ITC's FMCG businesses, which now have a portfolio of over 30 world-class FMCG brands, have maintained strong momentum, with revenue rising from around Rs 14,720 crore in FY21 to over Rs 24,200 crore in FY26, while also recording sustained improvement in profitability.

"Your company's aspiration to be the number one FMCG player is anchored on this larger vision," Puri said, mentioning ITC FMCG brands represent annual consumer spending of nearly Rs 37,000 crore and reach close to 280 million households and are exported to more than 70 countries.

Puri also mentioned India faces the twin challenges of adequate nutrition and rising lifestyle-related health concerns and said ITC was building a "good-for-you" portfolio under its "Help India Eat Better" mission to address gaps in protein, fibre, micronutrients and gut health.

He cited several examples, including a protein range from Yoga Bar aimed at Gen Z consumers, protein-rich breakfast shakes under Sunfeast for young professionals, and protein-fortified Aashirvaad atta.

He said an AI-led consumer insight ecosystem was helping the company drive targeted micro-segmentation to craft differentiated offerings based on life stages, lifestyle, channel, occasion, shelf-life requirements, and health needs.

Puri further said today's consumers seek a balance of taste and nutrition, convenience and trust, as well as value and premium experiences.

To meet these evolving preferences, the company is expanding its core brands while building a future-ready portfolio. It is leveraging an AI-driven consumer insight ecosystem to identify specific consumer needs and develop targeted products across different life stages, lifestyles, channels, occasions and health requirements.

"This vibrant portfolio has been enriched with new acquisitions in the area of promises that are already clocking an ARR of around Rs 1,350 crore, effectively synergising the entrepreneurial energy of startups with ITC's scale and institutional strength," he said.

Puri said the company was making rapid progress in scaling its core "power brands" while simultaneously building a "future-ready" portfolio attuned to evolving consumer needs, under its ITC Next strategy.

He said an AI-led consumer insight ecosystem was helping the company drive targeted micro-segmentation to craft differentiated offerings based on life stages, lifestyle, channel, occasion, shelf-life requirements and health needs.