1. Buyer’s Perspective Sugar Summit International, 2018 New Delhi
Somnath Chatterjee
Head of Procurement & Logistics
ITC Ltd, Foods Division

2. Foods driving growth of overall FMCG; mainly consumption led
FOODS CATEGORY
NON-FOODS CATEGORY
MAT SEP’17
FMCG: 3,35,831 Cr | Gr: 14.1% 13 15 13
OTC CATEGORY
Value Gr%
Price Gr%

3. East & West fuels All India growth; ROU & Rural outpace Metro growth
MAT SEP’17
FOODS: 1,83,801 Cr | Gr: 15% | 9.1MN OUTLETS 11 13 14 10 16 13 10 19 19 13 16 18
Urban: 65% (14%)
Rural: 35% (15%)
Grocer/GS with Chemist shows healthy growths
Gr Vs MAT’16

4. We are Currently Operating in 13 Categories
2017
~10,000 crores
We would be operating in 18 categories
2030
~65,000 crores

5. Sugar Cycle – India View

6. FMCG concerns Cyclical Swing in production Price Volatility
No effective hedging tools
Default risk in physical contracts
Quality
Source: NCDEX

7. Structured End to End Solutions – Opportunities for trader partners
Key Role of Trade Houses / Sugar Experts
Requirement for more Hedging tools viz. Options, EFP, BEOs etc.
Requirement to set up a Trade dispute Arbitration Body
Bulk Transportation

8. Sugar demand trend in India
Weather to drive
Ethanol to resolve surplus
Cane Price rationalization
Future sugar realization
Refineries to be a weapon

9. Sourcing Adjacencies - Sugar @ ITC

10. GST and Waybill Requirements
E Way bill system is live from 1st February 2018
Invoices having different States for “Bill to” and “ Ship to” places
Vehicle must carry both miller’s as well as trader’s invoices and waybills

11. FSSAI packaging and labelling Norms
Presence of FSSAI registration number & FSSAI Logo on sugar bags
Presence of Batch Number/ Lot Number on sugar bags
The labeling shall have manufacturing details in MONTH and YEAR of manufacturing.
(Example - JAN 2015)
BEST BEFORE declaration
(Example- BEST BEFORE TWENTY FOUR MONTHS FROM PACKAGING)
Veg Logo presence on sugar bags.
NABL accredited lab report for all FSSAI parameter - Twice in a year

12. Inappropriate Packaging & Labeling
No FSSAI Logo
No Batch Number
No Month-Year of Manf.
No VEG Logo
No Batch Number
No Month-Year of Manf.
Illegible Coding

13. Form-E Mandate

14. Vehicle Cleanliness and Compliances
Vehicle Documentations
Hygiene
Tarpaulins
Proper Load

15. Vehicles with Coal Contamination and without Tapaulin

16. Foreign Matter Contamination

17. Hygiene Related Issues
Dirty Bags
Wooden Chips Pierced in Bags
Dirty Bags

18. THANK YOU!