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FMCG major ITC cuts ad spend to Rs 1,331 crore in FY25
ITC is boosting its FMCG portfolio by fortifying core brands. The company is also leveraging the premiumization of products for brand building
In FY24, ITC reported a 12% growth in consumer spending on FMCG's products at Rs 32,500 crore
FMCG giant ITC has slashed its advertising and promotional spending by 3.89% in the fiscal year 2025 to Rs 1,331.69 crore. The hotel-to-cigarette conglomerate spent Rs 1,385.64 crore in the previous fiscal. According to the ITC's annual report, the company's advertising complaints have also reduced by 50% in the past one year. ITC's advertising complaints reduced to 6 in FY25 compared to 15 in FY24.
The maker of brands like Aashirvaad, Sunfeast, and Bingo is leveraging trade marketing for brand visibility. According to the company, "Trade marketing & Distribution vertical continues to strengthen its multi-channel go-to-market capabilities towards ensuring effective market servicing and product availability".
Additionally, ITC is boosting its FMCG portfolio by fortifying core brands. The company is also leveraging the premiumization of products for brand building.
ITC's FMCG business recorded a revenue of Rs 21,981.57 crore in FY25 compared to Rs 20,966.83 crore in FY24.
The branded packaged food industry witnessed headwinds during the year due to subdued consumer demand and unprecedented inflationary pressure across several key inputs.
Overall, consumer spending stood at Rs 34,000 crore--a 4.6% rise year-on-year. The firm has expanded its play with 100 new products and segments.
In FY24, ITC reported a 12% growth in consumer spending on FMCG's products at Rs 32,500 crore.
Its FMCG portfolio consists of over 25 Indian brands, which are largely built through an organic growth strategy leveraging institutional synergies in a relatively short period of time.
ITC is expanding the export footprint of its FMCG businesses, with a reach now spanning over 70 countries.
ITC measures annual consumer spending as the sum total of what consumer spends on buying goods from the company. It is the net sales turnover of the brands, along with channel margins and taxes.
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