‘Our confidence In The India Story Is Unwavering’: Sanjiv Puri, ITC Chairman & MD

Despite the headwinds, the investments made across all our businesses to enhance structural competitiveness and build an enterprise of the future, position ITC well to leverage emerging opportunities in the market. “Our confidence in the India story is unwavering and is reflected in ITC’s investment outlay of about Rs 20,000 crore in the medium term,” said Sanjiv Puri, Chairman and MD, ITC.

 

Interacting with reporters later in the day, Puri, when asked about ITC Group’s readiness to support the move announced by the finance minister during her budget speech to provide internship to unemployed youth. “We support the move. We will wait to see the details of the programmes. We along with our subsidiary partners are quite happy to do this,” Puri said.

 

At the AGM, Puri shared that the value-added by ITC’s economic activities in the last four years aggregated to around Rs 2,42,000 crore, of which over Rs 1,61,000 crore accrued to the Exchequer.

 

ITC also announced a Rs 20,000 crore capital expenditure plan to expand its capacities in fast-moving consumer goods (FMCG), paperboard, and other business segments. Puri revealed during the press interaction that the investment will be made over the next five years. Approximately 35-40 per cent of the expenditure will focus on expanding and upgrading capacities in the FMCG business, translating to Rs 7,000-8,000 crore. These investments will enhance Integrated Consumer Goods Manufacturing and Logistics facilities (ICML) to reduce time and distance between the factory and market. Currently, ITC has 11 ICMLs with two more under construction.

 

The paperboard and packaging business will see an investment of Rs 7,000 crore, including a new Greenfield plant, as the existing plant in Bhadrachalam, Andhra Pradesh, has reached saturation. Addressing the inflation scenario and rural demand, Puri mentioned that rural markets are being closely monitored, and a good monsoon could aid in demand revival. Extreme heat conditions have recently impacted rural demand, though the January-March 2024 quarter saw rural volume offtake surpass urban areas for the first time in three years.

 

Speaking at the AGM, Puri shared that the growing competitiveness of ITC’s world-class brands has enabled the company to take its products and services to over 100 global markets. “Foreign exchange earnings of ITC and its subsidiaries have more than doubled since FY20 to over Rs 9,500 crores. ITC is also proactively pursuing strategic investments, particularly in neighbouring markets, such as the FMCG facility set up by ITC’s Subsidiary, Surya Nepal. ITC’s wholly owned subsidiary, WelcomHotels Lanka, also launched the iconic ITC Ratnadipa, widely acknowledged as a jewel in Colombo’s hospitality landscape. As part of the asset-right strategy for ITC Hotels, opportunities with focus on proximal markets will continue to be explored over time,” he said.

 

Puri shared that the ITC Next strategy leverages the Company's century-long relationship with farmers to promote value-added agriculture, accelerate digital adoption and build climate resilience. ITC’s world-class brands anchor demand-responsive agri-value chains that ‘produce the buy’, providing its businesses with unique competitive advantages. “As one of the largest procurers of agri-commodities, ITC supports 20 agri-value chains, sourcing over 3 million tonnes from 200 districts in 22 States. This enables ITC to derive unique sourcing efficiencies apart from offering identity-preserved, attribute-specific, traceable agri-commodities to discerning customers in India and overseas. ITC exports agri-commodities to over 85 countries, linking farmers to global value chains,” he added.