ITC spices :
I have covered about ITC spices a while ago here.
ITC focuses on sustainable food safe spices. The new factory that was inaugurated recently is a fully backward integrated factory covering from seed to product. Its important to note that ITC is working with the farmers around this region for many years.
About ITC Global Spices processing Unit
Spices : Chilli, Turmeric, Blended organic spices
Area : 6 Acres
Capacity : 20,000 Tonne per annum ( phase I )
production lines : 4 lines ( Tropical spices, seed spices, High VO spices and sterilised products )
certification: BRC, FDA FSMA, FSSC 22000, USFDA Organics, NPOP
When the Phase II is completed it would be 38,000 Tonnes. They are also working on spices competitiveness with farmers using agri full stack application ITC MAARS. WIth such a scale and automation I expect them to be efficient and may bring costs down compared to competitors. There is also a huge scope of export markets.
ITC distribution Network :
I did and scuttlebutt and wrote about increased rack space for ITC products in tier-2, tier-3 cities. Covered here.
with recent article saying that ITC is focussing on the Rural areas, our conviction on improved distribution is validated.
In the last quarter report company has claimed that ‘Fiama’ and ‘Vivel’ has got a good traction.
One of my good friend who works in FMCG says distribution is the King when it comes to selling FMCG. ITC seems to be more aggressive in distribution compared to earlier. They always had good connections due to their cigarette business. But with FMCG they are now more and more visible and gaining shelf space in markets.
This is from the tier-3 rural side. I was quite happy to see Fiama/Vivel got almost same shelf space as Pears.
This also agrees with the claim that they got more traction. I did not see Fiama/Vivel there a year ago.
Overall happy with aggressive efforts and pushing more distribution to reach end retail stores. My observations are mostly from southern part of India. Conclusions may vary depending on your location. So please take my observations with a pinch of salt.
PS:
This is not an investment advice. Holding same as of last post. No transactions last 30 days.
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