ITC’s Volumes To Improve In Coming Quarters, Says Food Division CEO
Demand disruption from GST has had limited impact on urban dominated products.
Sales volumes of ITC Ltd. is expected to improve in the coming quarters as disruption from the Goods and Services Tax fades, Hemant Mallik, chief executive officer of the company’s food division told BloombergQuint in an interview.
The GST may have caused a disruption, but it was a known and expected disruption, Mallik said, adding that the impact—more on rural-dominated goods—has stabilised now. While most of the food products will show double-digit growth, only some of the rural-dominated products such as biscuits and confectioneries will show single-digit growth, he said.
ITC's revenue from its fast-moving consumer goods segment, other than cigarettes has grown steadily over the last decade, crossing 18 percent of its total revenue in the financial year 2016-17.
Here’s the entire conversation with Hemant Mallik where he talks about his strategy to become the number one player in the packaged goods market in the next three years, the products he is banking on, and competition from new entrant Patanjali in the juices segment.