Latest news with #HemantMalik
Time of India
a day ago
- Business
- Time of India
ITC's growth recipe for food business is about strategic takeovers
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads After acquiring Yoga Bar and 24 Mantra Organic ITC Foods is now placing greater emphasis on strategic takeovers to speed up its expansion, enter fast-growing categories quickly, and cater to increasing consumer demand for healthier, more indulgent, convenient, and premium food options . Hemant Malik, executive director of ITC , told The Times of India that the approach is part of the company's broader 'ITC Next' strategy, which positions value-accretive acquisitions as a key driver of navigate the challenges posed by slow urban demand, weak household incomes, and high inflation, ITC plans to use both brownfield and greenfield investments. During the financial year, the company said it faced strong inflationary pressure on edible oil, wheat, maida, cocoa, and packaging materials. These pressures were partly handled through internal cost management, price adjustments, and a push towards selling more premium said he believes the premium category will grow at 'at least twice the pace of the overall FMCG business .' He said, 'We are creating offerings for the health-seeking new India, growing per capita India, Gen Z, as well as consumers seeking richer and new experiences. Many of them would have premium pricing. It's all about providing the right value to the consumers... Premium is not limited only to metros; there are premium customers across the country.'Currently, around 30% of ITC's food portfolio consists of premium products. The company's shift towards this higher-end segment appears to be working. In the financial year 2024-25, revenue from packaged foods rose by nearly 28% to ₹21,982 said health-focused products are emerging as the biggest growth driver. 'Health is the fastest growing segment for us, growing at 400 times that of the remaining foods business. We're also keeping a close watch on emerging consumer needs - whether it's health, nutrition, convenience, or indulgence. These trends shape how we evolve our portfolio and explore new categories. We are creating a lot of new products based on evolving consumer needs, for every life stage or cohort,' he to Malik, ITC sees significant scope for growth in the food segment, since a large portion of the market is still unbranded.
Time of India
2 days ago
- Business
- Time of India
ITC bets on buyouts to grow food business
NEW DELHI: After the recent acquisitions of Yoga Bar and 24 Mantra Organic, ITC Foods is sharpening its focus on strategic takeovers to accelerate growth, gain rapid entry into high-potential categories, and align with consumer preferences for health, indulgence, convenience, and premium offerings. Tired of too many ads? go ad free now This move aligns with the 'ITC Next' strategy, which prioritises value-accretive acquisitions as a core expansion driver, Hemant Malik, executive director, ITC, told TOI. The company plans to drive growth through a combination of brownfield and greenfield investments, navigating challenges of subdued urban consumption amid weak household incomes and spiralling inflation. During the year, there was severe inflationary pressure in edible oil, wheat, maida, cocoa, and packaging inputs, which, the company said, was partially mitigated through cost management initiatives, calibrated pricing actions, and a strategic push towards premiumisation. Malik expects the premium category to grow at least twice the pace of the overall FMCG business. "We are creating offerings for the health-seeking new India, growing per capita India, Gen Z, as well as consumers seeking richer and new experiences. Many of them would have premium pricing. It's all about providing the right value to the consumers... Premium is not limited only to metros; there are premium customers across the country," he said. At present, around 30% of the ITC portfolio is premium products. The strategy seems to be paying off. ITC's revenue from packaged foods increased nearly 28% to Rs 21,982 crore in FY24-25. "Health is the fastest growing segment for us, growing at 400 times that of the remaining foods business. We're also keeping a close watch on emerging consumer needs - whether it's health, nutrition, convenience, or indulgence. These trends shape how we evolve our portfolio and explore new categories. We are creating a lot of new products based on evolving consumer needs, for every life stage or cohort," Malik said. The food category still has significant headroom for growth - especially since a large part of it remains unbranded, according to Malik.
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Business Standard
20-05-2025
- Business
- Business Standard
Responsibility on food firms to pack micronutrients, says FSSAI chief
The food regulator on Tuesday drew attention to the increasing consumption of processed food, while highlighting that food-processing companies have the responsibility of ensuring that packaged food contains the right nutrients. At the same time, the Food Safety and Standards Authority of India (FSSAI) issued a statement on Tuesday directing all states and Union Territories to intensify inspections and conduct special enforcement drives to curb the illegal use of non-permitted fruit ripening agents, as well as the colouring and coating of fruit with synthetic colours or non-permitted wax. The move is part of the regulator's ongoing efforts to ensure safe food for consumers. 'We have not defined ultra-processed food in India, and any food can be classified as healthy or unhealthy depending on the amount of consumption. It is a great social responsibility of the industry to ensure that you pack your food with micronutrients and use appropriate sources of protein and fats,' said G Kamala Vardhana Rao, chief executive officer at FSSAI, while speaking at the 16th edition of Ficci Foodworld India. Meanwhile, Hemant Malik, Chair of the Ficci food processing committee and executive director at ITC, said that among the broad consumer trends shaping the sector is health and wellness — especially products addressing challenges like protein deficiency and gut wellness. Malik further expressed industry concerns about the labelling debate, advocating for serving-size-based front-of-pack nutrition information rather than per-100-gram measurements. 'The most consumption of packaged food is in small sizes,' he said, while cautioning against broadly categorising packaged food as 'ultra-processed', citing examples such as soy nuggets, which provide affordable protein despite being processed products. At the event, Deloitte and Ficci together launched a report shedding light on the sector's contribution, accounting for roughly 7.7 per cent of India's total manufacturing gross value added. According to the report, titled Spurring Growth: Driving Innovation and Unlocking Opportunities in the Indian Food Processing Sector, the sector is valued at $160 billion and represents nearly 30 per cent of the national food market.
The Hindu
06-05-2025
- Business
- The Hindu
Discussion on forces shaping work and the future of the workplace at The Hindu Huddle
The forces shaping work and the workplace have changed dramatically over the last few years. While technological advances have impacted roles, making some easier and putting others at risk, unprecedented events such as the COVID-19 pandemic have effectively changed our imagination of the workplace. Political shifts in some regions have fuelled an anti-DEI (diversity, equity, inclusion) movement. What then is the future of work and of the workplace? In a world that is adopting more and more digital technologies, which will be the most sought-after skills? In a post-pandemic world, is a hybrid model here to stay? These are some of the questions that will be explored during the The Hindu Huddle panel discussion titled 'Let's Talk Work: The Future of the Workplace'. The participants will be K. Ganesh, serial entrepreneur and partner, Growthstory; Hemant Malik, Wholetime Director and Divisional Chief Executive - Foods, ITC; Jayen Mehta, Managing Director, Gujarat Cooperative Milk Marketing Federation; and Suparna Mitra, Chief Executive Officer, Watches and Wearables Division, Titan. The conversation will be moderated by L.V. Navaneeth, CEO, The Hindu Group. The Huddle will be held on May 9 and 10 in Bengaluru. The panelists will throw light on how business models, employee and customer expectations, and technology are shaping the modern workforce and determining its priorities. They will touch upon key contemporary subjects such as AI integration, the evolving role of hybrid work, the nature of the gig economy, and the importance of upskilling and reskilling. They will examine commitments to ESG (environmental, social and governance) goals, employee well-being ,and organisational DEI through the lens of sustainable business goals and stakeholder expectations. If you have any questions that you would like our moderator to ask the panelists, write to us at huddle@
Yahoo
22-04-2025
- Business
- Yahoo
ITC seals deal to buy organic packaged foods brand 24 Mantra owner
Indian conglomerate ITC has struck a deal to acquire Sresta Natural Bioproducts, the owner of the 24 Mantra Organic brand, for Rs4.73bn ($55.2m). In a stock-exchange filing published, ITC said it expects the deal to be finalised in the first quarter of its 2025/26 financial year, a three-month period that ends in June. Under the terms of the deal, ITC will pay Rs4bn upfront to Sresta Natural when the transaction closes on a 'cash-free, debt-free basis'. An additional "founders consideration" of up to Rs725m is payable over the next two years, contingent on undisclosed "pre-agreed performance criteria", ITC said. Hemant Malik, an ITC director, said: '24 Mantra Organic has built a robust backend and sourcing network which is core to its trusted organic products portfolio.' He added: "We are confident that 24 Mantra Organic will fortify ITC's presence and market standing in the high growth organic products space, in both Indian and overseas markets." Set up in 2004, Sresta Natural Bioproducts has a product range that includes more than 100 organic items across categories such as grocery staples, spices, condiments, edible oils, and beverages, ITC said. Sresta Natural reported a consolidated turnover of Rs3.06bn for its 2023/24 financial year. Approximately 50% of its revenue was generated from international markets, mainly the US, the filing said. The company's sourcing base includes approximately 27,500 farmers cultivating around 140,000 acres of organic farmland across ten Indian states. Rajashekar Reddy Seelam, the founder and managing director of Sresta Natural, will remain "associated" with the business for two years to support the transition following the acquisition. Seelam said: 'After 21 years of partnering with Indian farmers to create trusted organic products, we are excited that ITC will be driving the next phase of growth for 24 Mantra Organic. 'We are confident that ITC's strengths in product development expertise and distribution strength across channels will help in taking 24 Mantra Organic to millions of homes for many generations to come, improve livelihoods of large number of farmers across the country and carry forward our legacy of ecological stewardship.' The Indian organic food market, including domestic and export segments, is estimated to be worth Rs100bn, the conglomerate said. ITC said organic food was 'an area of interest' to the company "given the strong synergistic linkages" with its existing packaged foods business and the sector's 'immense growth potential'. Furthermore, the deal is expected to enable ITC to utilise its 'institutional strengths to drive synergies' in areas including NPD, sourcing and manufacturing. In February, ITC agreed to acquire fellow Indian business Prasuma to strengthen its presence in frozen, chilled and ready-to-cook foods. "ITC seals deal to buy organic packaged foods brand 24 Mantra owner" was originally created and published by Just Food, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
