The share of fruit-based beverages in the overall food division of ITC is fairly less at the moment but Rajesh sees it going upto 7 percent to 9 percent in the couple of years.
NEW DELHI: Tobacco-to-hotels-to-FMCG conglomerate ITC Ltd, that in January entered the fruit-based juices and beverages market with the launch of B Natural juices, is eyeing in ecxess of 10 percent market share in the organised juice market currently dominated by Dabur’s Real and Pepsi’s Tropicana.
“At present our market share in the organised juice segment is around 7 percent and we hope to get it over 10 percent by around this time next year. We now have 9 variants in our B-naturals portfolio,” said VL Rajesh, divisional chief executive at ITC’s Food Division, on the sidelines of the launch of B Natural’s new variant Punjab da Kinnow.
The food division at ITC which was started in 2002 with the launch of their atta brand Aashirvaad, has today expanded to 11 categories including confectionery, biscuits, snacks, noodles and juices and the business last year crossed $1 billion in turnover.
The share of fruit-based beverages in the overall food division of ITC is fairly less at the moment but Rajesh sees it going upto 7 percent to 9 percent in the couple of years. In coming two years ITC will also expand to around 16 businesses in the food division from the current 11 businesses.
The company would be manufacturing the new beverage in its Bengaluru facility and is looking forward to the opening of ITC’s new facility in Kapurthala in Punjab which can start producing B Natural’s new variant once it is operational next year. The Kapurthala facility will be spread across 70 acres and will entail an investment of Rs 1,400 crore according to the company.
ITC food division currently has four manufacturing facility and Rajesh expects that numbers to go upto 10 in the next couple of years.
“We have multiple factories coming up in the next couple of years all across the country with state of the art technology. We are looking to open six more factories taking the count to 10. This would entail investments in excess of Rs 4,000 crore,” he said.
The factories would come up in Maharashtra, Punjab, Tamil Nadu, Assam, West Bengal and Karnataka.
According to Rajesh, ITC’s food division investments are multi-fold.
“A lot of investment is going into the manufacturing facilities and the R&D facilities which runs into thousands of crore. And apart from that we are investing hugely in the brand and product development in the foods business. We are investing in line to be market leaders,” he said.