ITC turns to AI-led micro-segmentation as acquired brands clock Rs 1,350 crore ARR

New Delhi: ITC is using artificial intelligence-led consumer insights to divide the market by life stage, lifestyle, channel, occasion and health need as it builds its next pipeline of FMCG products. Addressing ITC’s 115th annual general meeting, Chairman and Managing Director Sanjiv Puri said the company’s consumer-insight ecosystem is enabling targeted micro-segmentation, allowing it to move beyond broad consumer categories and create products for specific cohorts and consumption occasions. “A critical foundation is ITC’s AI-led consumer insight ecosystem that drives targeted micro-segmentation to help craft a pipeline of differentiated offerings, be it by life stages, lifestyle, channel, occasion, shelf-life requirement and health need, among others,” Puri said. The strategy is visible in the way ITC is organising its nutrition and wellness portfolio. Yoga Bar’s protein range is being positioned for Gen Z consumers, while Sunfeast Breakfast protein-rich shakes target early jobbers. Aashirvaad Protein Atta is aimed at families, and the Right Shift range has been developed for consumers over the age of 40 with products fortified with fibre, protein and micronutrients. ITC is also expanding products addressing fibre intake, gut health and organic consumption through brands and ranges such as 24 Mantra Organic, Aashirvaad Millet Flour, Aashirvaad Multigrain Flour, Sunfeast Farmlite and Yoga Bar’s high-fibre breakfast cereals. ITC said the system supports micro-segmentation by channel as well, an important shift as quick commerce, modern trade, general trade and digital marketplaces create different requirements around pack sizes, shelf life, pricing and consumption occasions. Acquired brands reach Rs 1,350 crore ARR Puri said ITC’s acquired businesses in areas of future growth are already generating an annualised revenue run rate of around Rs 1,350 crore. “This vibrant portfolio has been enriched with new acquisitions in areas of promise that are already clocking an ARR of around Rs 1,350 crore, effectively synergising the entrepreneurial energy of start-ups with ITC’s scale and institutional strengths,” he said. ITC’s acquired portfolio includes Yoga Bar, 24 Mantra Organic, Prasuma and Mother Sparsh. ITC is using its research, manufacturing, distribution and supply-chain capabilities to scale brands operating in categories including health foods, organic products, frozen and chilled foods, and premium natural personal care. The acquisition of Mother Sparsh, for instance, has given ITC a presence in premium natural baby care, while its nutrition portfolio is helping the company target the growing demand for protein, fibre, micronutrients and gut-health products. These products are being distributed through what ITC described as a smart omnichannel network with capabilities across ambient, chilled, frozen and perishable supply chains. ITC has also extended its packaged-food capabilities into freshly prepared meals. Its fresh food business now operates through more than 70 cloud kitchens across five cities and has grown by more than 100% over the past three years. The portfolio includes Aashirvaad Soul Creations, ITC Master Chef Creations, Sunfeast Baked Creations and Sansho from ITC Master Chef. Puri said the business combines ITC’s food-science capabilities, culinary expertise, established brand trust and digital infrastructure. ITC sees Rs 8 trillion opportunity by 2035 ITC estimates that its addressable FMCG market in India will reach around Rs 8 trillion by 2035, providing significant room to expand its existing brands and enter new categories. Puri identified Aspirational Bharat, premiumisation, Gen Z and Gen Alpha consumers, widening digital access and quick commerce as the major forces reshaping categories, channels and consumer expectations. He described the emerging Indian buyer as a “maximiser consumer” who does not necessarily choose between seemingly competing propositions. “Today’s ‘maximiser consumer’ simultaneously seeks taste and nutrition, convenience and trust, indulgence and wellness, value as well as premium experiences,” Puri said. This is pushing ITC to build portfolios that can address mass demand and premium consumption simultaneously. The company is also attempting to combine indulgence with health, convenience with quality and traditional ingredients with modern formats. The company currently has more than 30 FMCG brands, which together account for annual consumer spending of nearly Rs 37,000 crore. Its products reach around 280 million households in India and are exported to more than 70 countries. Puri said the ambition to become India’s number one FMCG player is linked to building domestic brands that can retain a larger share of consumer value and intellectual property within the country. “When successful Indian brands win consumer preference at scale, they retain larger value within the country,” he said, adding that brands born in India must be capable of competing globally on quality and trust. FMCG revenue crosses Rs 24,200 crore ITC’s FMCG revenue increased from around Rs 14,720 crore in FY21 to more than Rs 24,200 crore in FY26, with the company reporting a sustained improvement in profitability. Non-cigarette businesses now contribute nearly two-thirds of ITC’s net segment revenue. The group’s net segment revenue has crossed Rs 83,300 crore, recording a compound annual growth rate of 10.7% over the past five years. ITC’s product-development capabilities are supported by its Life Sciences and Technology Centre, which has more than 400 scientists. The centre works across end-to-end value chains, including food, agriculture, personal care and paper. The company is also deploying an AI-first digital backbone across its manufacturing facilities to improve cost efficiency and responsiveness. ITC’s wider manufacturing ecosystem spans more than 300 factories, including 45 company-owned plants, and works with over 9,500 MSMEs. Puri said ITC’s growing FMCG presence gives it the confidence to pursue “a future where an ITC product adorns every household in India and makes its mark across continents.”