ITC's eco push: Sustainable plastic alternatives soar 2.4 times in 3 years
Diversified conglomerate ITC Ltd is making significant strides in its sustainable materials and packaging capabilities, underscoring its focus on organic growth and long-term innovation, according to B. Sumant, Executive Director of ITC Ltd. In an interaction with ET Digital, Sumant talks about the company's expansion plans, supply chain resilience, investments in advanced R&D and digital technologies, and more. Edited excerpts:
The Economic Times (ET): How does ITC's paperboards and packaging business stand in terms of overall industry positioning?
B Sumant (BS): ITC's paperboards and specialty paper division (PSPD) is a market leader in the value-added paperboard segment. It has sustained its leadership position over the years through focused innovations, the development of customised solutions for end-user industries, and capacity augmentation. It has leveraged its integrated business model and pioneering work in adopting Industry 4.0 technology.Similarly, ITC's packaging & printing business is one of the largest value-added converters of paperboard packaging in South Asia. It converts over 100,000 tonnes of paper, paperboard, and laminates per annum into a variety of value-added packaging solutions for the food and beverage, personal & home care products, quick service restaurants, and consumer goods industries.
As part of the ITC Next Strategy, new vectors of growth are being nurtured at the convergence of mega trends in digital and sustainability, harnessing ITC's enterprise strengths. This includes developing alternative solutions to single-use plastic and addressing the growing demand for eco-friendly packaging. Between FY22 and FY25, ITC's sustainable products portfolio for plastic substitution grew 2.4 times, underscoring a decisive market shift toward responsible consumption. ET: ITC's paperboards and specialty papers division has been in the eco-friendly packaging space for some time now. What are the recent innovations driving sustainable transformation across industries?
BS: ITC's paperboards and packaging businesses are at the forefront of sustainable plastic substitution innovation, offering a robust portfolio of solutions that are replacing single-use plastics at scale. Among ITC's flagship offerings is the Filo Series—a versatile range of recyclable, industrially compostable, soil biodegradable, barrier-coated paperboards including FiloPack, FiloServe, FiloTub, FiloBev, and FiloBowl—designed for food service, delivery, and on-the-go consumption applications. The Filo Series products are also PFAS-free (forever chemicals).The company's innovation pipeline also encompasses FiloBev Mini—designed for on-the-go quick consumption of hot beverages; WrapWell—a recyclable food-grade paper replacing aluminium foil; BioSeal—a compostable, oil- and grease-resistant coating to replace plastics; and 'Germ-free coating'—a solution for microbial-free packaging surfaces addressing the consumer consciousness towards hygiene and safety. Similarly, there are many other innovative offerings.ET: Different supply chains, like e-commerce, demand different packaging needs. How does ITC approach this diversity in design and delivery?
BS: ITC adopts a differentiated, insight-led approach to sustainable packaging, grounded in design thinking, scientific rigour, and deep supply chain understanding. Recognising that each distribution channel, whether e-commerce, quick-commerce, or modern trade, demands distinct packaging attributes, ITC develops bespoke solutions that balance performance, aesthetics, and environmental responsibility.Partnerships with QSRs and DTH providers have resulted in the introduction of compostable solutions and recycled fibre moulds that replace disposable plastic. This tailored, channel-specific strategy enables ITC to deliver packaging that meets diverse operational and consumer needs while advancing the broader sustainability agenda.
ET: What are the biggest challenges in scaling sustainable packaging across the FMCG industry, and how is the company overcoming them?
BS: ITC's integrated strategy focuses on large-scale and impactful community-based waste management programmes as well as investments in cutting-edge sustainable innovations, anchored on a robust three-pronged framework of 'No plastic, Better Plastic and Less Plastic.' This innovative approach not only encourages ITC to continuously improve recyclability and optimise packaging across its own world-class FMCG brands but also enables it to offer a bouquet of sustainable packaging solutions for a range of consumer industries, replacing plastic with biodegradable materials designed for recycling. 'No Plastic' packaging innovations in ITC's own FMCG business include the Aashirvaad Khapli Atta pack, which features an eco-friendly dual-layer 'bag in bag' design. In another example, the Sunfeast Farmlite Core Digestive large pack was launched in a 100% paper outer bag.Similarly, some of the recent 'Less Plastic' initiatives among ITC FMCG brands include design optimisation undertaken for the packaging of Engage deodorant spray cans, which resulted in a reduction of 31% in packaging weight.
ET: What is the total capacity of ITC's value-added paperboards portfolio?
BS: The total capacity of ITC's Paperboards & Specialty Paper Business is over 9.8 lakh MT/year at present, of which, the capacity of its value-added paperboard portfolio is 6.6 lakh MT/year.
ET: How does ITC ensure cost-effectiveness in sustainable packaging?
BS: ITC ensures cost-effectiveness in sustainable packaging through a holistic, integrated value chain approach that spans innovation, manufacturing efficiency, and value chain security. The company follows design-to-cost principles to develop scalable, high-performing solutions that are both sustainable and affordable. Operational efficiencies are achieved with Industry 4.0 technologies, automation, and data-driven manufacturing processes, supported by lean manufacturing and TPM methodologies. At the supply end, ITC is strengthening domestic fibre value chains by expanding plantations and fibre catchments to secure competitive raw material sourcing.
ET: How is ITC leveraging innovation and R&D to develop next-generation packaging solutions?
BS: Innovation is central to ITC's sustainable solutions strategy. ITC provides a diverse range of sustainable packaging solutions and environmentally friendly alternatives to single-use plastics for a range of industries by leveraging the synergies between its Paperboards & packaging businesses and the research expertise in material sciences at ITC Life Sciences and Technology Centre. These collaborative efforts ensure that each solution delivers both sustainability and high performance, enabling ITC to stay ahead of the evolving market.
ET: What are ITC's future investments and expansion plans?
BS: ITC is actively scaling up its capabilities in sustainable materials and packaging, driven by a strong commitment to organic growth and long-term innovation. The company is expanding its manufacturing footprint, strengthening supply chain resilience, and investing heavily in advanced R&D and Digitech to meet rising demand for environmentally friendly solutions.
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