Very insightful interview.
- ITC’s strategy of backward integration has served them well over time and company is doubling down on it through expansion in their MAARs network.
- ITC plans to spend 3000 cr. on capex annually with 70% going towards FMCG.
- There might be hit in topline in the future as some topline growth recently has come from large trading opportunities in agri commodities segment which come at very low margins
- FMCG strategy is to create mega brands and once done, expand through offerings in adjacencies
- Currently have 6 mega brands (1000 cr.+ annual sales) and hoping to add a couple more brands in this club
- Currently in discussion with another D2C brand in mother and child space
- With more stable tax regime on cigarattes in the recent past, should be able to claw back some market share from unorganized players
Disclosure: Invested (position size here, sold shares in last-30 days)