ITC to set up 20 factories for FMCG business, says Chairman YC Deveshwar

ITC, the home-grown conglomerate, on Friday said it is in the process of setting up 20 factories for its FMCG products as it aims to garner Rs 1 lakh crore revenue from that business alone by 2030.

"We are in the process of building 20 factories. How much money we are going to spend... We are one company that is not looking for interest rate to dip before we think of our investment. We are not borrowing money, we want to invest. Its for FMCG," ITC Chairman YC Deveshwar said at the 2015 edition of India Today Conclave.

He further said, "There are some roadblocks, we are stuck on land... But let us contribute to this country in a significant way."

Deveshwar, however, did not elaborate on the investment the company would make for setting up these factories.

In the previous financial year, ITC's revenue from FMCG including cigarettes stood at Rs 23,555 crore.

The company's FMCG business includes cigarettes, foods, lifestyle retailing, personal care, education & stationery, safety matches and agarbattis.

On the government's 'Make in India' campaign, Deveshwar said, "It embodies a very far reaching ambition. Any strategy if it has to get fulfilled it must be comprehended by all participants.

India is a diverse country and the kind of problems India has... the biggest problem with India is that its a very young country."

The ITC Chairman said, "There are 12 million people coming to the job market every year and by 2025, 30 million more people will come to the job market. If we don't provide that quality job that has dignity, then we are moving towards a demographic disaster."

The company in its vision had said ITC will be able to achieve a turnover of over Rs 1 lakh crore from its brands in the FMCG business by 2030.

"It is within the realm of possibility that your company can achieve a turnover of over Rs 1,00,000 crore from its brands in the new FMCG businesses by 2025/30," Deveshwar said addressing shareholders at the company's annual general meeting in 2013.

The conglomerate is aiming to create global Indian brands in the years to come, Deveshwar had said.