In a strategic move to diversify its product range, ITC Ltd is entering the pouched milk and curd market. This step signifies the company’s ambition to broaden its footprint in the dairy industry. The decision was unveiled during a recent press conference by Hemant Malik, the Divisional Chief Executive of Foods at ITC. The company plans to launch these products under the well-established ‘Aashirvaad’ brand. Not stopping there, ITC also intends to expand its offerings by launching paneer and milkshakes within the next two months. This bold move to expand into the dairy segment will likely bolster its existing portfolio and underscore ITC’s commitment to catering to the diverse needs of its consumers.
Pricing and Product Availability:
The new dairy products from ITC will be competitively priced to ensure affordability and accessibility for a wide range of customers. The price ranges from ₹10 for a 240-ml double-toned milk pouch to ₹41 for a one-liter packet of toned milk. As part of the company’s strategic planning, the market launch of value-added products like milkshakes will occur across India, beginning with the South. Significantly, the company has also announced the imminent launch of paneer, which will further diversify the range of dairy products ITC offers. Initially, the products will be sourced from Munger in Bihar and extended to West Bengal.
Future Expansion Plans:
While ITC’s expansion into the dairy segment demonstrates its commitment to diversification, the company clarified that it does not plan to venture into the cheese and butter market immediately. Instead, the focus will be on creating more value-added products, with a particular emphasis on ghee. This approach reflects ITC’s understanding of ghee’s larger opportunity in the current market scenario.
ITC’s Market Strategy:
According to Mr. Malik, ITC’s entry into the pouched milk market is more than just about capturing market shares. Rather, it represents an effort to expand the ₹72,000-crore pouched milk market from the unorganized segment to the organized one. In line with this objective, the company targets a ₹400-₹500 crore contribution from its dairy segment in two years.
Market Share and Revenue Projections:
While setting ambitious goals, ITC has prepared strategic plans that will contribute to the projected growth of the dairy sector. The plans encompass widening the product range, steady market expansion, and focusing on value-added products. By leveraging its solid brand reputation and understanding consumer preferences, ITC anticipates driving growth and stability in this sector. The company’s comprehensive approach and robust business strategies position it favorably to realize the target contribution of ₹400-₹500 crore from the dairy sector within the next two years.