Thursday, September 19, 2024

ITC announces INR 20,000 crore investment drive

Highlights sustainable packaging initiative

CMD Sanjiv Puri. Photo: ANI

ITC is set to invest INR 20,000 crore over the next five years to bolster its business operations, announced CMD Sanjiv Puri. Addressing shareholders at the Annual General Meeting (AGM) in Kolkata, Puri emphasized the company’s resilience amidst current challenges, highlighting ongoing investments aimed at enhancing structural competitiveness and positioning ITC to capitalize on emerging market opportunities.

“Our firm belief in India’s growth trajectory is highlighted by our significant investment commitment of INR 20,000 crore for the medium term,” Puri stated.

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Speaking at a subsequent media briefing, he outlined the allocation of these funds, with approximately 40% earmarked for expanding the FMCG segment, 20% for the paperboards & packaging division, and the remainder allocated to the agribusiness, corporate initiatives, and innovations.

Puri also updated on the progress of demerging the hotel business into a standalone entity, slated for listing by year-end. Underpinning this strategy, he highlighted the addition of 32 hotels in the past two years, with plans to grow the portfolio to 200 units in the near future, bolstered by a robust segment ROCE.

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In the paperboards & packaging sector, he noted sustained leadership in value-added segments through strategic innovations and capacity expansions, leveraging an integrated business model and Industry 4.0 initiatives. Key advancements include investments in renewable energy and India’s first bleached chemi-thermomechanical pulp facility.

Highlighting ITC’s commitment to sustainability, Puri mentioned the launch of ‘Filo’ brand sustainable packaging solutions, aimed at replacing single-use plastics. The company recently commissioned a molded fiber plant in Madhya Pradesh to further this initiative.

Furthermore, he acknowledged the growth trajectory of ITC Infotech, the company’s wholly-owned subsidiary, driven by strategic partnerships and its ‘Orbit Next’ strategy. He also noted the positive impact of recent value-accretive acquisitions across the ITC Group.

Mahan Hazarika
Mahan Hazarika
Mahan Hazarika has been serving as the Editor of The Packman since 2017, demonstrating an impressive decade-long expertise in the field of writing about the printing and packaging industry. In his leisure time, he indulges in his passions for music, travel, and watching movies.

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