ITC, the Rs 23,000 crore (Rs 230 billion) cigarettes-to-hotels major, is understood to have accumulated losses of Rs 700 crore (Rs 7 billion) over the past seven years in its foods business.

The segment, which is still in the investment mode, crossed the Rs 1,000 crore (Rs 10 billion) revenue mark in the last financial year and is losing on an average close to Rs 60 crore (Rs 600 million) on a yearly basis, according to industry sources.

While the company does not report segment results for the foods business until a specific vertical reaches a threshold limit, its entire FMCG business during the last financial year has reported revenues of Rs 2,523 crore (Rs 25.23 billion).

ITC clubs branded packaged foods (staples, biscuits, confectionery, snack foods and ready-to-eat foods), garments, educational and other stationery, matches, agarbattis and personal care products under the FMCG (others) head in its profit & loss statement.

ITC, while not offering to comment specifically on the loss of its foods business, said all financial information regarding its businesses is reported by the company from time to time as per statutory requirements and they do not offer comments on speculative information.  

ITC made its entry into the branded & packaged foods business in August 2001 with the launch of the Kitchens of India brand.