As inflation gradually moderates, ITC is detecting positive signs of volume growth, with Chairman and Managing Director Sanjiv Puri expressing optimism that this momentum will persist in a sequential fashion. Speaking at the B20 Summit organized by the CII, Puri emphasized that while this development will lead to volume enhancement, it won’t occur instantaneously.
Puri also shed light on ITC’s strategy for the demerger of its hotel business, revealing plans to establish a wholly-owned subsidiary named ITC Hotels Ltd. This new entity, dedicated to hospitality, is designed to harness ITC’s institutional strengths, creating a platform for synergies between its hospitality and FMCG businesses. Puri labelled this approach a robust model poised to accelerate the hotel business’s progress and enhance ITC’s financial metrics.
Discussing the factors contributing to inflation, Puri attributed them to geopolitical circumstances and climate change. He commended India’s proactive management of inflation and its positive impact on the country’s standing in the global context.
The recently concluded June quarter witnessed ITC and other FMCG manufacturers reporting volume gains and improved margins. With a brand portfolio encompassing 25 well-known brands, including Aashirvaad, Bingo, Sunfeast, YiPPee, Fiama, Vivel, and Savlon, ITC remains optimistic about the resurgence of consumer sentiment and volume growth, particularly in rural markets.
Despite expressing concerns about the volatile operating environment due to weather patterns, Puri highlighted ITC’s effective management of such challenges. The company reported a 16.08% rise in consolidated net profit to Rs 5,180.12 crore in the June quarter, while its revenue decreased by 6% to Rs 18,639.48 crore due to the agribusiness division’s impact.
Puri emphasized India’s substantial potential in the agriculture sector and underscored the need for productivity improvement, market linkages, and resilience-building in the agriculture value system. As part of ITC’s efforts, it is contributing to climate-smart agriculture and focusing on productivity, quality, and market linkages.