ITC targets ₹8 lakh crore FMCG opportunity by 2035

ITC has laid out an ambitious roadmap to capitalise on what Chairman and Managing Director Sanjiv Puri describes as an ₹8 lakh crore addressable FMCG opportunity by 2035. Speaking at the company's Annual General Meeting on Thursday, 23 July 2026, Puri outlined a multi-pronged strategy centred on artificial intelligence, omnichannel distribution, and strategic acquisitions—signalling the conglomerate's intent to dominate India's rapidly transforming consumer landscape.

Revenue Trajectory Points to Aggressive Expansion

ITC's FMCG businesses have demonstrated remarkable momentum, with revenue scaling from approximately ₹14,720 crore in FY21 to over ₹24,200 crore in FY26—representing a growth trajectory that positions the company to pursue market leadership. With a portfolio now spanning over 30 world-class brands, ITC has built the scale and diversity required to address multiple consumer segments simultaneously. Puri emphasised that the Indian FMCG market is poised for significant expansion, driven by structural shifts in consumer behaviour and demographics that are fundamentally reshaping category dynamics and channel strategies.

AI-Powered Micro-Segmentation Drives Product Innovation

At the heart of ITC's strategy lies an AI-led consumer insight ecosystem designed to enable micro-segmentation at unprecedented granularity. This technological capability allows the company to develop differentiated offerings tailored to specific consumer needs, lifestyles, and consumption occasions—moving beyond traditional demographic segmentation. For an industry where understanding nuanced regional preferences and emerging lifestyle patterns determines success, this AI-driven approach represents a significant competitive advantage. The ability to predict and respond to evolving consumer preferences in real-time positions ITC to capture emerging opportunities across premium and mass segments simultaneously.

Omnichannel Infrastructure as Competitive Moat

ITC's investment in what Puri describes as a "smart omnichannel network" with capabilities across ambient, chilled, frozen, and perishable supply chains reflects the company's understanding that distribution excellence will determine FMCG winners in the next decade. The rise of quick commerce platforms has compressed delivery timelines and expanded consumer expectations, requiring FMCG companies to maintain sophisticated cold chain and last-mile capabilities. ITC's multidimensional supply chain infrastructure enables it to participate across categories that require vastly different handling and distribution approaches—from shelf-stable packaged foods to fresh and frozen products. This infrastructure becomes particularly valuable as digital commerce penetration deepens across tier-2 and tier-3 markets.

Consumer Tailwinds: Premiumisation and Generational Shift

Puri identified several structural tailwinds reshaping the Indian FMCG landscape: the rise of aspirational Bharat, premiumisation trends, the emergence of Gen Z and Gen Alpha consumers, expanding digital access, and the explosive growth of quick commerce. These trends are not merely expanding the market but fundamentally altering category definitions, channel strategies, and consumer expectations. The premiumisation wave, in particular, offers established players like ITC an opportunity to migrate consumers up the value chain while defending mass-market positions—a dual strategy that requires brand architecture sophistication and operational excellence across price points.

Acquisitions as Strategic Accelerator

ITC is deploying strategic acquisitions to expand its presence in high-growth and premium categories where organic expansion would require significant time and resources. This inorganic growth strategy allows the company to acquire established brands, distribution networks, and category expertise simultaneously—accelerating market share gains in segments where first-mover advantage or specialized capabilities matter. For a conglomerate with financial muscle and distribution reach, acquisitions represent an efficient path to portfolio diversification and premiumisation.

The Wise Marketing Perspective

ITC's articulation of an ₹8 lakh crore addressable market by 2035 reflects both ambition and realistic assessment of India's consumption trajectory. However, the company's ability to capture a meaningful share of this opportunity will depend on execution excellence across multiple fronts simultaneously—brand building, AI-driven innovation, omnichannel distribution, and M&A integration. The FMCG landscape is witnessing intensifying competition from both traditional players and digitally-native brands that operate with lower legacy costs and faster decision cycles. ITC's institutional strengths in distribution and brand building must be augmented with the agility and consumer-centricity that characterise successful digital-first companies.

The emphasis on AI-led micro-segmentation is particularly noteworthy in an Indian context where consumer heterogeneity across regions, income levels, and cultural contexts creates both complexity and opportunity. Companies that master this complexity through data and technology will build defensible competitive advantages. ITC's investment in omnichannel infrastructure across temperature-controlled supply chains positions it well for categories like dairy, frozen foods, and fresh produce—segments that remain significantly underpenetrated in India but are poised for rapid growth as cold chain infrastructure improves and consumer willingness to pay premium prices increases.