Food-Tech Surge: ITC’s Cloud Kitchen Business Scales at 108% CAGR

ITC’s foray into the food-tech and cloud kitchen space has seen remarkable growth, with the company reporting a compound annual growth rate (CAGR) of 108 percent in this vertical. Launched under its ITC Master Chef brand and other food service formats, the company’s food-tech strategy combines its deep expertise in packaged foods with a rapidly scalable cloud kitchen infrastructure. This initiative marks ITC’s entry into direct-to-consumer (D2C) hot meals and food delivery, tapping into the rising demand for convenience and quality in urban markets.

The expansion has been largely driven by ITC’s integration of technology, culinary innovation, and a strong backend supply chain. Through its cloud kitchen model, ITC is able to deliver a variety of freshly prepared meals, including regional Indian cuisines, snacks, and combo offerings, via popular food delivery platforms. The company has strategically positioned these kitchens in metros and tier-1 cities to ensure efficient coverage and faster delivery times. Strong performance in key cities and positive consumer feedback have encouraged ITC to scale operations aggressively.

One of the notable strengths of ITC’s food-tech approach is its ability to leverage synergies with its packaged food brands and its in-house agri-sourcing network. By integrating quality raw materials with a chef-curated menu, ITC offers a product that balances affordability, hygiene, and taste. This positions the brand competitively against traditional restaurant players and newer delivery-only startups. ITC has also been investing in digital ordering infrastructure, AI-led kitchen optimization, and consumer behavior analytics to enhance operational efficiency and menu personalization.

Looking ahead, ITC plans to expand its food-tech footprint nationally, with additional cloud kitchens and digital food formats. The success of this venture reflects the growing opportunity in India’s organized food delivery and ready-to-eat segment. For a company traditionally known for FMCG and tobacco, this shift represents a diversification into consumer-facing digital businesses with long-term growth potential. ITC’s performance in this segment underlines its evolving strategy to remain relevant in a rapidly changing consumption landscape. Sources:FinancialTracker