The Hindu : Business : ITC Foods to raise capacity

Online edition of India's National Newspaper
Wednesday, Sep 07, 2005

Business

Business

ITC Foods to raise capacity

M. Rajeev

Hopes to increase market share in biscuit segment

BHADRACHALAM: Encouraged by the response to its new products, the foods division of ITC is eyeing more than 100 per cent growth in turnover this year. Against the present turnover of little less than Rs. 400 crore, ITC Foods hopes to increase the turnover in excess of Rs. 800 crore by the end of the current fiscal.

In view of the rapid growth in volume of food products in the atta and confectionery segments, the division has embarked on scaling up the capacities of its plants. "We have already added three new mills to the Ashirvad brand atta and plans are afoot to scale up the operations in respect of Sunfeast," ITC Foods divisional chief executive, Ravi Naware, said.

The company, with more than a dozen products in the confectionery segment, hopes to increase the market share in the biscuit segment from seven per cent to 13 per cent. While the overall business of food and related segments was estimated at a huge Rs. 5 lakh crore, the branded and packaged segment comprised only seven-eight per cent. "Given the rapid growth of packaged and branded segments pegged at around 15 to 20 per cent every year, there is a huge potential even to grow organically," he told The Hindu.

While the company had finalised plans for expansion in the atta, confectionery and biscuit segments, it would also shortly launch its spices products in the southern region. The spices products launched in the north and west had thus far received good response.

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