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ITC may take on Patanjali with products focusing on 'Indianness'

ITC may take on the might of Patanjali, Dabur and others with its own range of health and well-being products that focuses on “Indianness” as the tobacco-to-FMCG major readies plan to enter the healthcare sector.

ITC Life Sciences & Technology Centre has been working on medicinal plants as ITC plans to get into health and wellness space, according to sources.

ITC on Friday decided to include ‘healthcare’ as a business area in the object clause of its Memorandum of Association as a precursor to its actual foray in the health and wellness area.

While that needs approval of shareholders by postal ballot, the ground work has already begun.

“Beyond brands, ITC is getting into cultivation of medicinal and aromatic plants to expand in health and wellness space,” ITC chairman YC Deveshwar had said at the annual general meeting held earlier.

ITC Life Sciences & Technology Centre, which has evolved over the years into a team of nearly 350 highly qualified scientists, equipped with world-class capabilities, is deep into it, looking at traditional Indian solution to health and wellness issues, sources said.

“Centre’s new mandate: to go beyond supporting and improving ITC’s existing products and services and create innovations that not only meet but anticipate consumer needs. Recognising the unique construct of the company in terms of its strong presence in agriculture, branded packaged foods and personal care products businesses, a convergence of R&D capabilities is being leveraged to deliver future products aimed at nutrition, health and well-being,” a company update on its life science and technology centre says.

Patanjali Ayurved, the most disruptive player in the FMCG, health and wellness space, has been giving sleepless nights to others like Dabur, Baidyanath, Emami and others who have been banking on consumer fetish for Indian remedies and ways of healthcare.

This has forced even Hindustan Unilever to come up and revive its own Ayush brand.

Beyond cigarettes, hotels and paper, and apparel, ITC has successfully diversified into snacks, personal care, also into even coffee and chocolates in a limited way.

The foray in desi healthcare would come at a time when its mainstay, the tobacco business is being increasingly affected by tightening regulations including graphic warnings, which the company has described as “extremely gruesome and unreasonable” in its earnings release.

It hasn’t made much impact on ITC’s cigarettes consumption though with cigarette revenue growing 2.24% on year to Rs 8,288 crore.

Source: dnaindia.com