ITC’s Sustainable Packaging portfolio grew two-folds in FY23 – ITC Annual Reports
11 July 2023
Amidst heightened inflationary pressures, the Business delivered robust performance during the year leveraging its integrated business model and strong end-user engagements. Structural interventions across the value chain including, inter alia, developing high yielding clones, augmenting value added paperboard & in-house pulp manufacturing capacity, product & process innovation, digital interventions including Industry 4.0 and creating superior distribution infrastructure continue to provide the Business sustainable competitive advantages. The Business fortified its clear leadership in the Value Added Paperboard (VAP) segment through innovation focused on developing customised solutions for end-use industries and maintaining best-in-class customer service levels. The Business is also the industry leader in the eco-labelled products segment as well as the premium recycled paperboards space.
The Business continues to ramp up its sustainable products portfolio and achieved appx. two-fold increase in revenue over the previous year. The ‘Filo’ series of sustainable solutions viz. ‘FiloBev’ (for cups), ‘FiloServe’ (for QSR, bakeries, food retail) & ‘FiloPack’ (packaging for sweets and deep freeze applications), continued to witness strong traction in both domestic and international markets. The ‘Omega’ series viz. ‘OmegaBev’ and ‘OmegaBev Vio’, certified compostable by Central Institute of Petrochemicals Engineering & Technology (CIPET) and also registered with the Central Pollution Control Board (CPCB), continued to increase its franchise with large eco-conscious brands. The Business is stepping up investments in this fast-evolving space which holds immense growth potential, supported by the R&D capabilities of ITC’s Life Sciences & Technology Centre and through external collaborations with global specialists.
During the year, ITC set up a wholly owned subsidiary, ITC Fibre Innovations Limited, to foray into the fast-growing premium Moulded Fibre Products (MFP) space. Towards this end, construction of a state-of-the-art MFP manufacturing facility in Badiyakhedi, Madhya Pradesh, is underway. Customers are increasingly seeking solutions that are bio-degradable, substitute single use plastic and meet stakeholder and regulatory expectations across industries including food serving and delivery, pharmaceutical, beauty and electronics. The raw materials for such products are sourced from environment-friendly, renewable, natural fibres such as wood, bamboo etc. The MFP business will leverage ITC’s expertise in fibre value chain, manufacturing excellence and strong sustainability credentials to rapidly scale up business going forward.
During the year, the Business delivered robust performance in the Specialty Papers segment. Market standing continues to be driven by product mix enrichment and diversification of the customer base. The domestic industry continues to remain under pressure on account of cheap imports from China. Anti-dumping duty on Décor paper continues to provide a level playing field for domestic industry, further enhance ‘Make in India’ opportunities & foster domestic value chains and enable import substitution. A strong distribution network, efficient supply chain and customised product portfolio leveraging cutting-edge innovation capabilities based on superior customer insights, provide structural competitive advantages to the Business to further consolidate its market standing in the fast growing Décor segment.
(The Packaging and Printing) Business continues to craft innovative packaging solutions leveraging its deep understanding of end-user needs and the capabilities of ITC’s Life Sciences and Technology Centre. Recognising the need for sustainable packaging and the emerging demand for plastic substitutes, the Business continues to leverage its flagship ‘InnovPack’ campaign and is focusing on end-use segments with potential for rapid adoption of sustainable packaging and plastic substitution solutions. Along with a steady pipeline of pioneering solutions anchored on molecular science research such as ‘Bioseal’ (compostable packaging solution), ‘Oxyblock’ (recyclable coating solution to enhance barrier properties in packaging) and ‘Germ free coating’ (solution for microbial free packaging surface addressing the consumer consciousness towards hygiene and safety), the Business has also pioneered several innovative solutions towards ‘Reducing, Reusing and Recycling’ of plastic substrates which are under various stages of commercialisation. Going forward, the Business will continue to invest resources to develop sustainable packaging solutions.
ITC’s FMCG brands adopting sustainable packaging solutions:
Fiama, Vivel and Savlon have been frontrunners in adopting sustainable packaging for the soap portfolio. The Fiama and Vivel wrapped soap portfolio has also transitioned to re-cyclable mono material while Savlon soap wrappers now contain 70% recycled plastic in the PET film used. Sustainable materials are being used for in-store merchandising for Fiama and Vivel soaps. Further, Fiama Shower Gel and Handwash bottles are now made with 50% Post-Consumer Recycled (PCR) material.