Going premium in personal care helps ITC boost sales

ITC has premiumised the personal care business with the contribution of premium products to sales doubling in the last four years to 38% and accounting for about two-thirds of all the new products launched in the last two years, said the divisional chief executive for the business Sameer Satpathy...

This focus on premium products has also helped ITC break even in the personal care business that is now generating profit consistently quarter on quarter, analysts said.. While Satpathy refused to specifically comment on this, he said this focus on premiumisation has a positive impact on the bottom line by improving margins.. "Premium products sales have moved up exponentially from pre-pandemic period and doubled to around 38% of our sales..

ITC operates in categories like body wash, deodorant, skin care and floor cleanser through this business which is the second critical piece of its strategy to grow the non-cigarette fast moving consumer goods (FMCG) segment..

In the personal care business, ITC is the second largest player in shower gel, women's deodorant while its herbal floor cleanser is now the leader in some markets like the East..

"Non-cigarette FMCG segment Ebitda margin stood at 11% backed by premiumisation, supply chain optimisation, cost management, digital initiatives and judicious pricing actions," BNP Paribas said in a recent report...

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