Indian conglomerate ITC highlighted the significant expansion of its sustainable products portfolio and the impressive revenue growth achieved by its paperboards and specialty papers division in its recently published annual report for the financial year 2022-2023. ITC’s sustainable solutions, including the ‘Filo’ series and ‘Omega’ series, gained strong traction in both domestic and international markets, the company reported.
The ‘Filo’ series of sustainable solutions, such as ‘FiloBev’ for cups, ‘FiloServe’ for quick-service restaurants (QSRs), bakeries, and food retail, and ‘FiloPack’ for packaging sweets and deep freeze applications, continued to witness robust demand. These products found success in meeting the needs of eco-conscious brands both domestically and internationally.
Additionally, the ‘Omega’ series, including ‘OmegaBev’ and ‘OmegaBev Vio’, which are certified compostable by the Central Institute of Petrochemicals Engineering & Technology (CIPET) and registered with the Central Pollution Control Board (CPCB), expanded its franchise with large eco-conscious brands.
Recognizing the immense growth potential in the sustainable products space, ITC said it is stepping up investments in this fast-evolving sector. The company aims to cater to increasing customer demand for bio-degradable solutions that substitute single-use plastics while meeting stakeholder and regulatory expectations across industries such as food serving and delivery, pharmaceuticals, beauty, and electronics.
“The business is stepping up investments in this fast-evolving space which holds immense growth potential,” ITC said.
In addition, the company established a wholly owned subsidiary, ITC Fibre Innovations Limited, to enter the premium Moulded Fibre Products (MFP) space. Construction of a state-of-the-art MFP manufacturing facility in Madhya Pradesh is underway to meet the growing demand for biodegradable and plastic substitute products.
“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 company said.
Strong performance in the specialty papers segment
The paperboards and specialty papers division approximately doubled its revenue compared to the previous year. The division’s strong performance in the specialty papers segment was driven by various factors, including product mix enrichment and diversification of the customer base.
Despite challenges posed by cheap imports from China, the division leveraged the anti-dumping duty on Décor paper to support the domestic industry, foster domestic value chains, and facilitate import substitution. Moreover, the division made structural interventions to reduce dependence on imported pulp, resulting in a substantial increase in in-house pulp production.
ITC emphasized its commitment to digital transformation and Industry 4.0 initiatives to enhance operational efficiency, reduce waste, optimize costs, and improve safety across the value chain. The company leverages technologies such as Industrial Internet of Things (IoT), integrated data platforms, artificial intelligence/machine learning (AI/ML) algorithms, and computer vision-based solutions.
Collaborations with startup ecosystem partners and established solution providers have enabled the development of custom-fit scalable solutions, with over 100 use cases already implemented to contribute to margin expansion.
Focus on recycling
Sustainability remains a priority for ITC’s paperboards and specialty papers division. The division’s manufacturing units continue to recycle nearly 100% of the solid waste generated during operations by converting it into lime, fly ash bricks, cement, grey boards, egg trays, and other usable materials. Additionally, the division recycled approximately 1.1 lakh tonnes of waste paper during the year, contributing to ITC’s positive solid waste recycling footprint.
Paperboard demand to remain robust
Looking ahead, ITC expects strong demand for paperboards driven by end-user segments such as pharmaceuticals, apparel, fast-moving consumer goods (FMCG), consumer durables, and e-commerce. The demand for writing and printing paper is also expected to remain firm, supported by the government’s focus on primary and secondary education.
ITC said that it continues to craft innovative packaging solutions leveraging its deep understanding of end-user needs and the capabilities of its Life Sciences and Technology Centre. Recognizing the need for sustainable packaging and the emerging demand for plastic substitutes, ITC continues to leverage its flagship ‘InnovPack’ campaign and is focusing on end-use segments with the potential for rapid adoption of sustainable packaging and plastic substitution solutions.
To meet the evolving needs of customers and cater to the Western region, ITC has commissioned a greenfield manufacturing plant in Nadiad, Gujarat. Equipped with state-of-the-art technology for the cartons packaging platform, the facility’s capacity utilization is expected to progressively increase, further enhancing customer service levels.
Overall, ITC’s paperboards and specialty papers division continues to drive sustainable growth, focusing on innovative solutions, eco-friendly practices, and customer-centric strategies to maintain its leadership position in the industry.
