ITC targets Rs 8 lakh crore FMCG market by 2035, pushes AI and acquisitions

The Rs 8 lakh crore target

ITC has set its sights on a massive opportunity. The company expects the Indian FMCG market to be worth Rs 8 lakh crore by 2035. To get there, it is betting on artificial intelligence and strategic acquisitions.

The move comes as ITC has already climbed to the second spot among Indian FMCG companies by revenue. The target now is the top position. The company's chairman and managing director said demand has improved across both rural and urban markets.

AI and venture debt bets

ITC is expanding its limited partner portfolio. The company has started investing in venture debt and AI-focused funds. This is a shift from its traditional approach of building brands in-house.

These investments are meant to give ITC a window into emerging technologies and business models. The company wants to stay ahead of the curve as consumer habits change. AI is expected to play a key role in supply chain, marketing and product development.

Acquisitions on the table

Acquisitions will be a key part of ITC's growth plan. The company has previously bought brands in segments like noodles, biscuits and personal care. More such buys are likely as it tries to fill gaps in its portfolio.

The FMCG market in India is highly competitive. Players like Hindustan Unilever, Nestlé and Britannia are all vying for share. ITC believes its distribution strength and brand-building ability give it an edge.

Rural demand, which had been sluggish for several quarters, is now showing signs of revival. Urban demand has also held up. This dual recovery is giving ITC confidence to push harder.

The path to the top

ITC's FMCG business already contributes a significant portion of its revenue. The company has been diversifying away from its traditional cigarette business for years. The target of becoming the largest FMCG player is part of that long-term strategy.

The company is not just looking at organic growth. It is willing to spend on technology and acquisitions to accelerate its journey. The Rs 8 lakh crore market size by 2035 represents a compound annual growth rate that would require consistent investment.

What remains to be seen is how ITC balances its core businesses with these new bets. The company has a history of methodical execution. The next few years will test whether that approach can deliver the growth it is targeting.