India Spotlight Index 2020

ITC

Product Profile Categories
Confectionery; Ready Meals; Rice, Pasta and Noodles; Savoury Snacks; Sweet Biscuits, Snack Bars and Fruit Snacks
PDF
Rank 9 / Score 2.1
Product Profile
Rank 11 / Score 4.4

Company Profile

Rank 9

Score 2.1

(%) Figure in brackets is the weighting of the category. All category, commitment, performance and disclosure scores are out of 10

Commitment

Performance

Disclosure

The bar graph to the left shows company performance across the seven Index categories, which are key topic areas of assessment, and scores are shown for each category. The circles above provide an alternate view on the company’s overall results, showing the score per indicator type.

Main areas
of strength

  • ITC is assessed in full for the first time in the India Index 2020. With its large and diverse portfolio of packaged foods and beverages in India, it is crucial the company is assessed as part of the current India Index iteration.
  • In 2016, the company was interviewed regarding its approach to address undernutrition. ITC has since demonstrated a continuous commitment to micronutrient fortification as an approach to help address undernutrition and micronutrient deficiencies in India. Further, the company shows examples of product innovation and reformulation to help address challenges related to obesity and non-communicable diseases.
  • ITC publishes annual Sustainability Reports with relevant information regarding the company’s packaged food products, including new product launches and how specific formulations aim to address identified health needs. The company also discloses its Food Products Policy, which covers important elements related to labeling and micronutrient fortification.
  • The company fortifies some of its products voluntarily. For example, one of its Aashirvaad Atta-branded products and its Sunfest Marie Light biscuits are fortified with B vitamins, iron and other nutrients. The company could further improve its approach to fortification by disclosing how it voluntarily aligns with the Food Safety and Standards Authority of India (FSSAI)’s Food Safety and Standards (Fortification of Foods) Regulation, 2018.
  • The company is committed to reducing the quantities of fat, salt and sugar within its products in alignment with FSSAI’s pledge and Eat Right Movement. ITC also states that none of its snack products contain industrially-produced trans fats and commits to ‘disclose added trans fats, if any, in all food products’, supporting FSSAI’s goal to eliminate industrially-produced trans fats from the food supply by 2022.
  • The company focuses on pricing and distribution strategies to ensure the affordability and physical accessibility of its healthy products, particularly for economically disadvantaged groups.
  • ITC’s corporate social responsibility initiatives, such as its Women Economic Empowerment Program, are helping to address nutrition and health issues in India. The company also supports FSSAI's Safe and Nutritious Food at School initiative which works to build awareness amongst children about healthy and hygienic food practices.

Priority areas
for improvement

  • ITC ranks ninth in the India Index with a score of 2.1 out of 10.
  • The company ranks eleventh in the Product Profile with a score of 4.4 out of 10. It is estimated that 11% of its 2018 sales in India were derived from products that achieve a Health Star Rating (HSR) of 3.5 or more out of 5 - the ‘healthy’ threshold. In the Confectionery category, ITC scores better than its peers in terms of healthiness, but in other product categories, the company’s relative performance is not as good. Overall, the Product Profile results demonstrate that the company has substantial scope to improve the nutritional quality of its product portfolio.
  • ITC should define which of its products are healthy based on objective nutrition criteria using an internationally recognized Nutrient Profiling System. The company should also implement a strategy towards a healthier product portfolio by adopting SMART – Specific, Measurable, Achievable, Relevant and Time-bound – formulation and/or reformulation targets, to ensure stakeholders can hold the company accountable.
  • The company publicly adheres to the Advertising Standards Council of India code, which addresses some general aspects of responsible marketing. To improve its performance, ITC is advised to adopt a responsible marketing policy covering all consumer groups, with specific commitments regarding children and teenagers. The company should further consider committing to only marketing products to children that meet the World Health Organization (WHO) South-East Asia Region (SEAR) regional standard. The Product Profile found that 4% of its products currently meet this standard.
  • The company could improve its labeling practices by ensuring nutrition information is provided on all products according to the Codex Alimentarius guidelines, and in compliance with local regulations in India. ITC is encouraged to implement an interpretive front-of-pack labeling system as soon as possible that aligns with other companies or industry associations, and is developed in partnership with the Government and other relevant stakeholders.
  • ITC could further increase public disclosure about its nutrition-related commitments, policies and practices in India and is encouraged to engage with ATNI to allow for a more complete assessment of these aspects.

Category Analysis

Governance

Governance

Products

Accessibility

Marketing

Lifestyles

Labeling

Engagement

Nutrition

A1
Nutrition strategy
A2
Nutrition management
A3
Reporting quality
B1
Product Profile
B2
Product formulation
B3
Defining healthy products
C1
Product pricing
C2
Product distribution
D1
Marketing policy
D2
Marketing to children
D3
Auditing and compliance
E1
Employee health
E2
Breastfeeding support
E3
Consumer health
F1
Product labeling
F2
Claims
G1
Influencing policymakers
G2
Stakeholder engagement

All category, criteria, commitment, performance and disclosure scores are out of 10

Commitment

Performance

Disclosure

The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
For this category performance indicators were not included. The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
The circle on the left represents the company result for this Index category, showing the rank out of 16 and the score below it. The colored segments represent the respective criteria contributions to the overall category score. The above circles indicate how the company performs on the three types of indicators within this category.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.
Companies are grouped into three different industry segments in this Index based on the type of products they predominantly sell (i.e. contributing 80% or more to their total food and beverage sales) – dairy, edible oil or mixed portfolio. The graph on the right shows how the company’s result within this Index category compares to that of its peers within the same industry segment.

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Peer Comparison

Product Profile

11
Rank 11 / Score 4.4

Portfolio-level Results

Average HSR
score products
(sales-weighted)
Healthy products
(HSR)
Products suitable to
market to children
(WHO SEAR)
Range of total
India F&B sales
included
% products
healthy
% sales
healthy
No. products
assessed
% products
suitable
% sales
suitable
No. products
assessed
1.6 8% 11% 183 4% 6% 188 90-100%
  • A total of 188 products from across five categories, representing 90-100% of ITC’s estimated 2018 sales, were included in the Product Profile. Of those, 183 products could be assessed using the HSR. Fifteen products (8%) were found to meet the HSR healthy threshold and the company is estimated to have derived slightly more than one-tenth (11%) of its 2018 sales from healthy products.
  • The company achieves an unweighted mean HSR of 1.5 out of 5. After sales-weighting the company’s mean HSR slightly improves to 1.6 out of 5, resulting in a mean healthiness score of 3.3 out of 10.
  • A total of 188 products were assessed to determine their suitability to be marketed to children according to the WHO SEAR nutrient profile model. Eight products, estimated to represent 6% of 2018 retail sales, were found to meet WHO SEAR criteria and were identified in the Rice, Pasta and Noodles category and the Savoury Snacks category.

Product Category Results

Category Confectionery Ready Meals Rice, Pasta and Noodles Savoury Snacks Sweet Biscuits, Snack Bars and Fruit Snacks
Mean HSR 1.1 1.2 2.8 1.8 1.3
% products
healthy
0 0 57 7 0
% products
suitable to
market to children
0 0 38 0 0
  • ITC’s best performing category is Rice, Pasta and Noodles, with a mean HSR of 2.8 out of 5. A total of 21 products were assessed in this category and 12 (57%) were found to meet the HSR healthy threshold. Few of the company’s products in the Savoury Snacks category were found to be healthy and none of the company’s products in the remaining categories (Confectionery, Ready Meals, and Sweet Biscuits, Snack Bars and Fruit Snacks) were found to meet the healthy threshold.

Relative nutritional quality of ITC's products by category compared to competitors

Mean HSR Confectionery Rice, Pasta and Noodles Savoury Snacks Sweet Biscuits, Snack Bars and Fruit Snacks
ITC 1.1 2.8 1.8 1.3
Amul GCMMF 0.6
Britannia Industries 2.2 1.4
Mondelez India 0.5 0.9
Nestlé India 0.7 3.0
Parle Products 1.1 2.3 1.5
PepsiCo India 1.7
  • When compared to the other companies that sell products in India within the Confectionery category (as part of their top-selling categories), ITC ranks joint first out of five, achieving the highest mean HSR of 1.1 out of 5.
  • In the Savoury Snacks and the Sweet Biscuits, Snack Bars and Fruit Snacks categories, ITC products score less well relative to those of the other companies. For both categories, the company ranks third out of four companies. In the Rice, Pasta and Noodles category, the company ranks second with a mean HSR of 2.8 out of 5.
  • ITC competes with other companies in four categories and achieves a relative category score of 5.5 out of 10 based on its ranking within those categories.

Conclusion

  • ITC’s mean healthiness score of 3.3 and relative category score of 5.5 result in an overall Product Profile score of 4.4 out of 10, ranking the company eleventh in this assessment.
  • The company should continue to improve the nutritional quality of all its products, and particularly within the Sweet Biscuits, Snack Bars and Fruit Snacks category, which do not perform well when compared to those of its competitors. The company is also encouraged to adopt strategies and relevant targets to shift its sales towards healthier products and categories.
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