New Delhi, May 18: As part of its new business model of outsourcing production from small and medium enterprises for almost all of its FMCG ventures, ITC has ventured into agarbathi business. The company has launched three brands-Spriha, Nivedan and Ashageet- in Maharashtra, Tamil Nadu, Karnataka and Pondicherry.

These incense sticks are manufactured in traditional 'masala method' using natural ingredients, said V M Rajasekharan, chief executive of ITC's agarbathi business.

ITC is sourcing Spriha from cottage industries' in Pondicherry, a unit of the Sri Aurobindo Udyog Trust of the Sri Aurobindo Ashram. The Nivedan and Ashageet brands are manufactured by the 'sankaranthi agarbathi company' in Bangalore and other locations.

The company has consciously chosen the outsourcing model as part of its broader social and economic mission of enhancing the competitiveness of the small and medium enterprises from which it sources its supplies, he said.

ITC will complement the efforts of these small scale industrial units with its research and development, brand building expertise, and keen understanding of consumer behaviour and marketing. It is the company's stated philosophy of commitment beyond the market to consciously contribute to enhancing the competitiveness of the larger value chain in the Indian economy, he added.

Bureau Report