23 October 2026 Punjab Khabarnama Bureau : ITC Chairman and Managing Director Sanjiv Puri has highlighted acquisitions as an increasingly important driver of the company’s growth strategy, as the diversified Indian conglomerate looks to strengthen its business portfolio, enter new categories and expand its presence in consumer markets.
Puri’s remarks underline the growing importance of strategic acquisitions alongside organic growth, product innovation and investment in existing businesses. For companies operating in the fast-moving consumer goods (FMCG) sector, acquisitions can provide a faster route to entering new product categories, accessing established brands and reaching additional consumers.
ITC operates across several business segments, including consumer goods, hotels, paperboards and packaging, and agribusiness. Its consumer-facing portfolio includes established brands in packaged foods, personal care, education and stationery, among other categories.
Acquisitions Become an Important Growth Strategy
Acquisitions allow companies to expand their operations by purchasing or taking control of existing businesses. Rather than developing a new brand or product category entirely from scratch, a company can use an acquisition to gain access to an established customer base, distribution network, product portfolio or specialised capabilities.
For ITC, this approach can complement its existing brands and distribution infrastructure. An acquired business may also benefit from access to the company’s manufacturing capabilities, marketing resources and relationships with retailers.
Puri’s emphasis on acquisitions reflects the role that inorganic growth can play in a broader corporate strategy. Organic growth remains important, but acquiring businesses can help companies accelerate expansion when the strategic fit and financial terms are appropriate.
FMCG Sector Sees Competition for Growth
India’s FMCG market has become increasingly competitive, with established companies and newer consumer brands competing for market share across food, personal care and household products.
Changing consumer preferences, the growth of online shopping and the expansion of quick-commerce platforms have created opportunities for brands to reach customers through additional channels.
Companies are also seeking products that address emerging consumer needs, including convenience, premium offerings and differentiated food and personal-care products.
In this environment, acquisitions can help established companies broaden their portfolios and respond to new market opportunities. Buying a brand that already has customer recognition can sometimes be faster than building a comparable business through internal development alone.
However, an acquisition does not guarantee success. Its performance depends on the purchase price, the strength of the acquired brand, consumer demand and the company’s ability to integrate the business effectively.
ITC’s Diversified Business Portfolio
ITC has developed a diversified business model over several decades, with consumer goods forming an important part of its expansion strategy.
Its packaged-food portfolio includes brands such as Aashirvaad, Sunfeast, Bingo! and YiPPee!, while its personal-care business includes products sold under brands such as Fiama, Vivel and Savlon.
The company has also expanded its consumer portfolio through acquisitions in the past. Such transactions can provide access to established products and new market segments while allowing the company to use its existing distribution and operating capabilities.
The broader strategy is to combine established businesses with opportunities in emerging and higher-growth categories. Acquisitions can support this objective when they strengthen the company’s long-term competitive position.
Organic Growth and Acquisitions Can Work Together
Although acquisitions can accelerate expansion, companies generally need to balance them with investments in their existing businesses.
Organic growth can come from launching new products, improving distribution, investing in advertising, expanding manufacturing capacity and developing stronger relationships with consumers.
For a company such as ITC, these activities remain important because existing brands require continued investment to maintain market share and respond to competition.
Acquisitions can add new growth opportunities, while internal investments help strengthen the company’s established operations. The balance between the two approaches depends on market conditions, available investment opportunities and the expected returns from each business.
Integration and Financial Discipline Remain Important
Successful acquisitions require careful evaluation before a deal is completed. Companies must consider a target business’s financial performance, brand strength, growth potential, liabilities and competitive position.
After an acquisition, integrating the business can present additional challenges. Companies may need to align supply chains, management structures, technology systems and distribution arrangements while retaining the features that make the acquired brand attractive to customers.
Financial discipline is also essential. Paying too much for a business or underestimating integration costs can reduce the returns from an otherwise promising transaction.
For ITC, the long-term value of acquisitions will therefore depend not simply on the number of businesses it purchases, but on whether those businesses contribute sustainably to revenue, profitability and shareholder value.
What This Means for ITC’s Future Growth
Puri’s comments highlight acquisitions as a significant part of ITC’s evolving growth approach. Strategic purchases can help the company broaden its consumer portfolio, strengthen its presence in selected categories and access new capabilities.
At the same time, continued investment in established brands, innovation and distribution will remain important to the company’s performance.
The key challenge will be identifying businesses that complement ITC’s existing strengths and offer attractive long-term growth opportunities. If acquisitions are supported by disciplined investment and effective integration, they can become a meaningful contributor to the company’s expansion.
As competition across India’s consumer market continues, ITC’s combination of organic expansion and strategic acquisitions is likely to remain an important element of its business strategy.