ITC's Non-Tobacco FMCG Business Crosses ₹24,000 Crore Mark
- 1ITC's non-tobacco FMCG business has crossed ₹24,000 crore in revenue, making it India's second-largest FMCG company behind Hindustan Unilever (₹61,975 crore), ahead of Nestlé and Britannia.
- 2The company's portfolio of over 30 brands reaches 280 million households and represents ₹37,000 crore in annual consumer spending, with exports to 70+ countries.
- 3ITC has grown its FMCG revenue from ₹17,000 crore in 2017 to ₹24,000 crore in 2026, and expects margins to expand by 80-100 basis points annually over the coming years.
- 4Recent acquisitions in high-potential categories are already generating ₹1,350 crore in annual recurring revenue as part of the company's diversification strategy.
- 5ITC is targeting an addressable FMCG market of ₹8 lakh crore by 2035, with plans to expand its 'good for you' health-oriented portfolio and premium offerings.
Conglomerate now second-largest FMCG player, sets sights on overtaking HUL's leadership position.
ITC has officially cemented its position as India's second-largest FMCG company by revenue, with its non-tobacco consumer goods business crossing the ₹24,000 crore milestone. Chairperson Sanjiv Puri announced the achievement at the company's annual general meeting, declaring ITC's ambition to eventually unseat Hindustan Unilever from the number one position. The development marks a significant inflection point in India's FMCG landscape, where a diversifying conglomerate is now breathing down the neck of established multinational giants.
Strategic Portfolio Scaling Beyond Tobacco
The ₹24,000 crore revenue figure represents more than just numerical growth—it signals ITC's successful execution of a decade-long diversification strategy. The company has systematically grown its FMCG business from ₹17,000 crore in 2017, building a formidable portfolio that now spans staples (Aashirvaad), biscuits (Sunfeast), snacks (Bingo!), noodles (YiPPee!), premium chocolate (Fabelle), personal care (Fiama), wellness (Yoga Bar), and stationery (Classmate). This ₹24,000 crore figure positions ITC ahead of Nestlé India (₹23,200 crore in 2024-25) and Britannia (₹18,500 crore in 2025-26), though still significantly behind HUL's commanding ₹61,975 crore revenue. What's particularly noteworthy for brand strategists is that ITC's portfolio now influences ₹37,000 crore in total consumer spending annually—indicating strong brand pull and repeat purchase behaviour across 280 million households.
Margin Expansion and Profitability Trajectory
Puri's guidance on margin expansion offers crucial insights for FMCG marketers navigating inflationary pressures and commoditization. ITC expects its FMCG margins to improve by 80-100 basis points year-on-year over the next few years—a significant commitment in a notoriously margin-sensitive sector. This projected expansion suggests ITC is moving beyond the heavy investment phase of brand building and distribution expansion into a more sustainable profitability phase. The margin improvement trajectory will likely come from a combination of premiumization (evident in acquisitions like Yoga Bar and launches like Fabelle), manufacturing efficiencies from scale, and better product mix management. For agency leaders and brand consultants, this signals ITC's confidence in its brands commanding pricing power—a critical metric of brand equity in the Indian market.
Acquisition Strategy and Category Expansion
ITC's inorganic growth strategy deserves particular attention from M&A-minded marketers. The company's recent acquisitions in high-potential categories are already generating ₹1,350 crore in annual recurring revenue, demonstrating effective post-merger integration and brand revitalization capabilities. While Puri didn't specify which acquisitions in the AGM address, ITC's recent moves into health and wellness categories align with the 'good for you' portfolio positioning he emphasized. This acquisition approach allows ITC to buy credibility and shelf space in emerging categories rather than building from scratch—a playbook that contrasts with its historical preference for organic brand development. The 70+ country export footprint also indicates ITC's ambition extends beyond domestic dominance to building globally relevant Indian brands.
The 2035 Vision: ₹8 Lakh Crore Addressable Market
Puri's articulation of an ₹8 lakh crore addressable FMCG market by 2035 provides important context for long-term brand planning. This projection assumes continued consumption growth driven by rising incomes, urbanization, and premiumization trends across India's demographic spectrum. ITC's strategy to develop 'world class brands' with a 'good for you' health orientation positions the company to capture disproportionate share of this expansion, particularly in higher-margin wellness and premium segments. The emphasis on health-oriented products reflects broader consumer trends accelerated since the pandemic, where functionality and wellness credentials increasingly influence purchase decisions across categories from staples to indulgence.
ITC's ascent to the number two FMCG position represents one of the most remarkable portfolio diversification stories in Indian corporate history. What makes this achievement particularly instructive for marketers is the speed and breadth of execution—building multiple billion-rupee brands across disparate categories within two decades, while competing against well-entrenched multinational corporations with century-long head starts. The company's success validates several strategic principles: the power of distribution infrastructure (leveraging ITC's extensive rural and urban networks), the advantage of understanding Indian consumer nuances, and the effectiveness of sustained brand investment even when immediate returns aren't apparent.
However, the gap to HUL remains substantial—ITC's ₹24,000 crore is still only 39% of HUL's ₹61,975 crore revenue. Closing this gap will require not just sustaining current growth rates but accelerating them while HUL simultaneously faces its own growth challenges. The real test for ITC's brand-building prowess will come in premium and super-premium segments where margins are higher but brand loyalty is stickier and consumer expectations more exacting. ITC's margin expansion guidance suggests confidence, but the competitive intensity from both legacy players and emerging D2C disruptors will demand continued innovation in product development, brand communication, and channel strategy.
ITC's journey from a tobacco-dominant conglomerate to India's second-largest FMCG player in under a decade demonstrates that category leadership positions are not permanently fixed, even in mature markets. For brand strategists and marketing leaders, the lesson is clear: sustained commitment to brand building, strategic portfolio construction across price points and occasions, and relentless distribution expansion can overcome even the most formidable first-mover advantages. As the Indian FMCG market continues its projected expansion toward ₹8 lakh crore by 2035, the question isn't whether established hierarchies will be disrupted—it's which brands will demonstrate the strategic clarity and execution discipline to claim disproportionate share of that growth.
This article is an editorial rewrite based on reporting originally published by Times of India. The original article has been rewritten and contextualised for India's marketing community by The Wise Marketing Desk using AI-assisted editorial tools.
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