ITC’s last mile FMCG logistics to get a green makeover with more EVs in FY24

In a bid to operate more sustainable supply chains, ITC is going to introduce electric vehicles for last-mile logistics operations for its FMCG products. The FMCG giant aims to more than double EV use to cover over 75,000 trips in FY24 as compared to the current 30,000 trips annually. The EV program is currently operational in key cities across the country including Delhi, Kolkata, Bangalore, Mumbai, Hyderabad, Pune, Siliguri, and Patna. The company said it has prioritized EV use for last-mile deliveries as primarily it requires smaller-sized vehicles to cover shorter travel distances.

“ITC embarked on its sustainability journey a few decades ago and today, we stand at the forefront of the movement to integrate sustainability into every facet of business operations. The introduction of electric vehicles is yet another pivotal step in greening our value chain.”

B Sumant, Executive Director, ITC Ltd

Sumant emphasized that the decision will drive environmentally friendly actions directed toward achieving a carbon-neutral economy. He expressed the company’s strong dedication to substantially and expanding its green logistics initiatives in alignment with its ambitious Sustainability 2.0 Vision, all with the goal of making a substantial contribution to a more eco-friendly and pristine planet. He said that this initiative is also aligned with the Government’s net zero emission commitments and its Gati Shakti master plan that promotes the use of green logistics.

ITC is working with various EV aggregators and OEMs for its green logistics programs as the integration of EVs into the last-mile delivery chain will significantly reduce carbon footprint, while also enhancing cost competitiveness. This shift towards EVs will translate into annual savings on fuel expenditure. The company is also looking towards multi-modal transportation with a positive outlook.

It said it has strategically positioned its Integrated Consumer Goods Manufacturing and Logistics (ICML) facilities for its FMCG businesses in proximity to the market. This strategic placement enables direct shipments to customers, streamlining logistics and reducing environmental impact.