BUSINESS
Diversified conglomerate ITC will invest Rs 20,000 crore over the next five years as it looks at capacity ramp-up across verticals as well as seeks to fund new areas of growth, CMD Sanjiv Puri said in a virtual press briefing on Friday. The Rs 20,000-crore investment outlay, which was first announced at the company’s 113th annual general meeting (AGM), held on Friday, is higher than the investment of nearly Rs 15,000 crore ($2 billion) that was announced in 2021 and pointed to the company’s commitment to the ‘ India story’. “This is truly India’s moment in history. Mega opportunities are today emerging from the diversification in global supply chains, the all-pervasive digital revolution, and the urgent need for a green transition,” Puri, 62, said at the AGM. While 35-40% of the new Rs 20,000-crore outlay (Rs 7,000-8,000 crore) would be invested in the fast-moving consumer goods ( FMCG ) business, another 35% (Rs 7,000 crore) would be invested in setting up a new paperboards plant, since ITC Bhadrachalam in Andhra Pradesh was ‘fairly saturated’ in terms of capacity. The rest of the outlay (Rs 5,000-6,000 crore) would be invested in the agri-business and other segments, Puri said. The investment in the FMCG business would be focused on building Integrated Consumer Goods Manufacturing and Logistics facilities (ICML) with an aim to reduce time and distance between factory and the market . Currently, ITC has 11 ICMLs and two are under construction. The company is also set to launch a new nutrition brand called Right Shift in 10 days, which will be targeted at consumers over 40 years of age. Right Shift would include a portfolio of snacking, meal and beverage products, Puri said, with plans for future expansion. ITC was also looking at increasing the number of cloud kitchens (31 in number) as part of its new food tech vertical, which is currently operational in Bengaluru, Chennai and Hyderabad. “For now, we are not looking at going to more cities, but we plan to increase the base (of cloud kitchens) within the existing markets of operation,” Puri said. In the last two years, ITC has invested in three owned luxury hotels, eight state-of-the-art manufacturing facilities, including products covered under the production linked incentive scheme, and has grown distribution of fast-moving consumer goods (FMCG) products two times. The company has also opened 32 hotels in the last 24 months taking the total to nearly 140 hotels through both managed and owned properties. The pipeline of managed properties, which is part of ITC’s “asset-right model”, Puri said, would take the overall footprint to over 200 hotels in the coming years. Puri also said that ITC was proactively pursuing strategic investments in neighbouring markets such as the FMCG facility set up by the company’s subsidiary, Surya Nepal . The company’s wholly owned subsidiary, WelcomHotels Lanka, had launched ITC Ratnadipa hotel in Colombo. “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. None
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