ITC Acquires Over 10 PC Stakes In Blupin Technologies

The ITC has acquired a 10.07 per cent stake in Blupin Technologies Pvt Ltd, a company behind Mylo which is focused on the parenting journey of young families.

The brand Mylo addresses the needs of its customers via relevant content, health tools, conversations and community sharing features. Mylo also offers its users direct-to-consumer (D2C) personal care brands.

The FMCG brand had announced the acquisition for up to INR 39.34 crore in April this year.

While announcing the investment, Sameer Satpathy, Chief Executive (Personal Care Products Business), lTC had said, “Within a short period of time, Mylo has demonstrated great potential in the evolving Content-to-Community-to-Commerce model by nurturing an online platform where people learn, share, trust and belong.”

“The Company has acquired 400 equity shares of INR 10 each and 2,980 Compulsorily Convertible Cumulative Participating Preference Shares of INR 100 each of Blupin Technologies Private Limited, representing 10.07 per cent of its share capital on a fully diluted basis,” ITC said in a regulatory filing.

The investment will provide the company an early mover advantage in the evolving content-to-community-to-commerce space and will provide an expanded presence in the D2C space, ITC said.

The company’s standalone net profit rose 11.81 per cent to INR 4,190.96 crore on a 16.49 per cent increase in net revenue to INR 15,331.48 crore in Q4 FY22 over Q4 FY21.

FMCG Market

Fast-moving consumer goods (FMCG) sector is India’s fourth-largest sector with household and personal care accounting for 50 per cent of FMCG sales in India. Growing awareness, easier access and changing lifestyles have been the key growth drivers for the sector.

The urban segment is the largest contributor to the overall revenue generated by the FMCG sector in India. However, in the last few years, the FMCG market has grown at a faster pace in rural India compared to urban India. Semi-urban and rural segments are growing at a rapid pace and FMCG products account for 50 per cent of the total rural spending.

According to India Brand Equity Foundation (IBEF), the FMCG market in India is expected to increase at a Compound Annual Growth Rate (CAGR) of 14.9 per cent to reach USD 220 billion (Rs 17.05 lakh crore) by 2025.

The industry grew by 16 per cent in Calendar Year 2021 (CY21) a nine-year high, despite nationwide lockdowns, supported by consumption-led growth and value expansion from higher product prices, particularly for staples.

The rural market registered an increase of 14.6 per cent in the same quarter and metro markets recorded positive growth after two quarters. Final consumption expenditure increased at a CAGR of 5.2 per cent during 2015-20.

Companies with dedicated websites recorded an 88 per cent Year-On-Year (YOY) rise in consumer demand in 2020. Since then, more businesses have begun to adopt the D2C model, and India is now home to over 800 D2C brands looking at a USD 101 billion opportunity by 2025.

E-commerce companies reported sales worth USD 9.2 billion (around Rs 70,000 Cr) across platforms in October and November (2021), driven by increased shopping during the festive season. With festive season sales, Flipkart Group emerged as the leader with a 62 per cent market share.

Advertising volumes on television recorded healthy growth in the July-September quarter, registering 461 million seconds of advertising, which is the highest in 2021. FMCG continued to maintain its leadership position with 29 per cent growth in ad volumes against the same period in 2019. Even the e-commerce sector showed a healthy 26 per cent jump over 2020.

About ITC

ITC Limited is an Indian conglomerate headquartered in Kolkata. It has a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers and agribusiness. The company has 13 businesses in five segments. It exports its products in 90 countries. Its products are available in 60 lakh retail outlets.