I like the title of the topic. Good to connect to you again @dd1474 after BSE. There are plenty of useful posts in HUL & ITC thread… I am reposting some of my contributions here…
This is the from the company…
ITC is investing in 20 state-of-the-art Integrated Consumer Goods Manufacturing and Logistics facilities (ICML) across the length and breadth of the country to enable the FMCG Businesses to rapidly scale up. These ICMLs would enable ITC to constantly craft and deliver best-in-class products, enhance cost efficiency whilst enabling greater value realisation to the farmer, help reduce India’s Agri wastage and provide ITC’s brands a competitive edge in terms of scal…
FMCG margin has been consistently getting better. I have attached a snapshot from HDFC Q2 report below.
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HDFC also said in a side note that ITC’s gross margin is at par with peers ( 40-45 % ) but low margin is due to Higher upfront brand investments and Losses in retail business. FMCG EBIT margin expansion was driven by enhanced scale, product mix enrichment and cost management initiatives notwithstanding higher investments in brand building and gestation costs of new categories.
Everyon…
There was lots of question about 25000 Cr investments… It was a ongoing process and not in a single year or so… Also in the recent interview Mr. Puri said that they are not stopping infrastructure capex as it takes long time to get the process done. But they are calibrating the capacity addition depending on the demand. Almost 9 ICMLs started the production and 2 more is in advanced stage. 9 more are in different stages of development.
ITC has been doing a capex of 2500 Cr per year across dif…
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