Foods-to-hotel major ITC is planning to export its ready-to-eat foods and confectioneries to the US, Europe and the Middle East, Kurush Grant, divisional chief executive, said.

Grant said, "We already have a distribution channel in the US and it was a definite choice."

The company is eyeing revenues of around Rs 500 crore (Rs 5 billion) in four years from the foods' business. Grant was speaking on the sidelines of the company's biscuit launch.

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ITC launches biscuits in expansion plan

ITC Foods markets its products under flagship brand "Kitchens of India" and the recently launched "Aashirvad Ready Meals". Apart from this, it also markets Minto -- targeted at the adult confectionery market and Candyman -- targeting the children's sweets segment.

Grant said the company is open to acquisitions in the foods business, if it made strategic sense. The division was expected to post profits in 4-5 years.

Of the Rs 500 crore (Rs 5 billion) revenues, ITC expects to garner around Rs 150-200 crore (Rs 1.5-2 billion) from the newly launched biscuits segment. Ravi Naware, divisional chief executive ITC foods division, said the company is eyeing a 10-11 per cent share of the biscuit market in three years.

According to Naware, the biscuit market is around Rs 4,500 crore (Rs 45 billion) and the organised sector accounts for Rs 2,700 crore (Rs 27 billion).

At present, there are two biscuit manufacturing locations in Burdwan and Nagpur. However, ITC will increase manufacturing units with the volumes of business.

"We will have regional manufacturing centres in the north, west and south," Naware said.

As part of the asset light strategy, all the products are being outsourced. The company's biscuits -- glucose, marie and cream segments, were launched under Sunfeast brand. Sunfeast range of biscuits includes two new product innovations -- orange flavoured marie and butterscotch flavoured cream biscuits.

Naware said the latest offering from ITC Foods was in tune with the company's strategic direction to develop new product lines by synergising its proven competencies.

During the year, the company will also add crackers and cookies to the portfolio and thereby complete the offerings in the biscuit segment.

Sunfeast will be supported with television advertisements and consumer promotions to build awareness. The television campaigns would go on air shortly.