All ITC FMCG verticals are like startups. The mandate is to capture market and mind share with high quality products. Profits would always follow later.
The VC who does this unlimited funding is cigarette business.
No other FMCG company has invested for future like ITC.
Till 2017, ITC was ranked amongst top in long term consistent compounders. Nobody was then questioning it’s relatively high PE. In the previous 25 years, it has outperformed HUL by 10% ( ITC CAGR 19% versus HUL’s 9%). It was best Nifty performer in 2013.
ITC has created brands which are now very much recognisable in the market.
The company which sells noodles in India - NESTLE the main business is baby products not noodles.
