ITC to Invest ₹20,000 Crore Over the Medium Term, Says CMD Sanjiv Puri

ITC Ltd, a company known for its products ranging from cigarettes to hotels, has announced plans to invest about ₹20,000 crore in the medium term. This decision reflects their strong belief in India’s growth potential.

At ITC’s 113th annual general meeting, Chairman and Managing Director Sanjiv Puri shared that the company is well-positioned to take advantage of new opportunities despite facing challenges. “Our confidence in India’s future is strong, which is why ITC plans to invest around ₹20,000 crore over the medium term,” Puri said. More details on the investment will be provided later.

Growth in Cigarettes and Hotels

In FY24, ITC reported a gross revenue of ₹69,446 crore and a profit of ₹20,422 crore. Non-cigarette businesses now make up about 65% of the company’s net revenue.

“The revenue from our cigarettes business grew at an average annual rate of 13.5% over the past two years, with volumes now higher than pre-pandemic levels. After facing many challenges, our hotels business has become stronger, with revenue nearly reaching ₹3,000 crore and EBITDA exceeding ₹1,000 crore in FY24,” Puri explained.

Over the past four years, ITC’s activities have added about ₹24.2 trillion in value, with over ₹16.1 trillion going to the government, according to Puri. Last year, ITC announced it would separate its hotels business into a new entity.

Puri also highlighted ITC’s growing international presence, stating that their brands now reach over 100 global markets. “Foreign exchange earnings for ITC and its subsidiaries have more than doubled since FY20, exceeding ₹9,500 crore. We are also making strategic investments, especially in neighboring markets, like the FMCG facility set up by our subsidiary, Surya Nepal Private Limited.” He added that ITC Hotels will keep looking for new opportunities, focusing on nearby markets as part of their asset-light strategy.

On Friday, ITC shares were trading at ₹492.35 on the BSE, up 0.52%.