While about 40% will be invested to grow the FMCG business, about 20% will go to the Paperboards & Packaging business. The balance will be invested in the Agri business, for corporate purposes and in innovations, says Mr. Puri. | Photo Credit: ANI

ITC Ltd. plans to invest ₹20,000 crore in the medium term (five years) to scale up its businesses, CMD Sanjiv Puri said.

“Despite the near-term headwinds, the medium-term growth story remains strong and

investments made across all our businesses to enhance structural competitiveness and

build an enterprise of the future, position your company well to leverage emerging

opportunities in the market,” Mr. Puri told shareholders at the company’s Annual General Meeting (AGM) held in Kolkata. 

“Our confidence in the India story is unwavering and is reflected in your company’s investment outlay of about ₹20,000 crore in the medium term,” he added.

Elaborating at a media briefing post the AGM, he said while about 40% will be invested to grow the FMCG business, about 20% will go to the Paperboards & Packaging business. The balance will be invested in the Agri business, for corporate purposes and in innovations, he added.

Mr. Puri said the demerger of the Hotels business into a separate company was on track and the new entity is expected to be listed by the end of this year.

He said in line with the ‘asset-right’ strategy for the Hotels business, 32 hotels have been

opened in the last 24 months, taking the total to nearly 140 hotels. 

“Segment ROCE of hotels has risen by nearly 1,100 bps over the pre-Covid period,” he said adding the hotel’s portfolio would grow to 200 units in the coming years. 

He said the Paperboards & Packaging business sustained its leadership in the value-added segments with focused innovations, development of customised solutions for end-user industries and capacity augmentation. 

“Structural competitiveness has been enhanced by leveraging its integrated business model, Industry 4.0 initiatives, strategic investments in Renewable Energy and in augmenting in-house pulp manufacturing capacity including India’s first Bleached Chemi-Thermomechanical Pulp facility,” he added.

A range of Sustainable Packaging solutions has been launched under the ‘Filo’ brand

to replace single-use plastics. A moulded fibre plant in Madhya Pradesh has been

commissioned recently for the next horizon of sustainable packaging, he further said. 

The chairman said the company’s wholly owned subsidiary, ITC Infotech, sustained its growth momentum and global expansion through capability-led strategic partnerships. In line with its ‘Orbit Next’ strategy.

He also said the value-accretive acquisitions made by the ITC Group in recent years were also demonstrating appreciable progress.