ITC Ltd. announced its entry into the pouched milk and curd segment, followed by paneer and milkshakes in two months.
Addressing a press meet here on Tuesday, Hemant Malik, divisional chief executive – Foods, ITC, said that while milk and dahi (curd) has been launched under the ‘Aashirvaad’ brand, milkshakes would be unveiled under a different brand.
For now, the milk, which has been testing marketed in Bihar, would also be available in West Bengal. The price range would vary between ₹10 (for a 240-ml double toned milk pouch) and ₹41 for a one-liter packet of toned milk.
“Value-added products like milkshakes would see a pan India launch starting with the South, but paneer would be launched here,” he said. The sourcing, now from Munger in Bihar, would be extended to West Bengal soon, he said, adding that this would expand ITC’s dairy portfolio from ghee to milk and curd.
To a question, he said that although teams were working on the project, ITC’s entry into cheese and butter was not being planned immediately. “Ghee is a much larger opportunity for us,” Mr. Malik said to media.
“We are not looking for market shares in milk, rather an expansion of the ₹72,000-crore pouched milk market from the unorganized segment to the organized segment… this has already begun happening,” Mr. Malik said.
ITC’s earnings from foods business in terms of consumer spends was over ₹9,000 crore. Consumer spending is revenue net of dealer margins
The foods business is present across staples, spices, ready-to-eat foods, snacks, bakery and confectionery, and juices and beverages. Mr. Malik said that a ₹400-₹500 crore contribution was being targeted from dairy in two years.
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