'Confidence in the India story': ITC to invest Rs 20,000 cr in medium term, says CMD Sanjiv Puri
Kolkata: ITC plans to invest Rs 20,000 crore in the medium term, reflecting its strong belief in India's economic potential, according to Sanjiv Puri, the chairman and managing director of the consumer goods company, media reports said.
During the company's annual general meeting, Puri emphasised ITC's commitment to supporting India's growth into the world's third-largest economy by developing a "future tech, climate-positive, innovative, and inclusive national enterprise of pride."
“Our confidence in the India story is unwavering and is reflected in your company’s investment outlay of about Rs 20,000 crore in the medium term,” he said.
Despite facing challenging external factors, ITC's economic activities over the past four years have added approximately Rs 2,42,000 crore in value, with over Rs 1,61,000 crore contributed to the exchequer.
During this period, the company's overall revenues grew at a compound annual growth rate (CAGR) of 10.8%, reaching around Rs 79,000 crore.
Revenues from non-cigarette segments increased at a CAGR of 11.6%, now comprising about 65% of the company's net revenue.
"Segment EBIT posted a growth of 17.9%," said Chairman Sanjiv Puri, highlighting the earnings before interest and taxes.
During the pandemic, the company’s hotels and cigarettes businesses were impacted but have “charted a smart recovery” in the following period.
“The revenue and results of the cigarettes business over the last two years grew at a CAGR of nearly 13.5 per cent with volumes surpassing pre-pandemic levels.”
ITC’s hotels enterprise emerged “structurally stronger”, recording a revenue of around Rs 3,000 crore and EBITDA surpassing Rs 1,000 crore in FY24.
Puri noted that the exports have driven ITC’s growth. Backed by its brand strength, the company exported products and services to more than 100 global markets
“Foreign exchange earnings of your company and its subsidiaries have more than doubled since FY20 to over Rs 9,500 crore.”
ITC is making "strategic investments" in neighbouring markets, as evidenced by the FMCG facility established by its subsidiary, Surya Nepal Private Limited, and ITC Ratnadipa, developed by its wholly-owned subsidiary, WelcomHotels Lanka Private Limited.
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