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ITC allocates Rs 150 bn for expansion

india Updated: Jul 21, 2006 22:49 IST
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Diversified business giant ITC Ltd on Friday said it will invest up to Rs 150 billion ($3.2 billion) in the next few years to expand its business, with a major share likely to be earmarked for growth of the company's e-Choupal (Internet kiosk) network.

An investment of Rs 140 to 150 billion would be made in the next two years to enlarge ITC's economic contribution, YC Deveshwar, ITC chairman, said at the company's AGM.

He said ITC's value addition had grown at a compound annual rate of more than 12 per cent to over Rs 680 billion in the past decade.

Deveshwar also hinted that a major portion of the new investment would go into expanding the e-Choupal network. Nearly Rs.50 billion would be invested to increase the e-Choupal infrastructure to more than 6,000 installations covering 100,000 villages and 3.5 million farmers.

The e-Choupal business is rapidly developing into a reliable source for the two-way flow of goods and services in rural markets, he said.

Digital infrastructure for e-Choupal is being supplemented with a phased roll out of the Choupal-Faagars, which are basically designed as village super markets to serve as a hub for a cluster of villages, he added.

He said while 10 Choupal-Faagars are already operational, an additional nine are in advanced stages of completion.

"The rural retailing initiative will be scaled up by another 40 Choupal Faagars in 12-18 months," he said.

ITC also announced a 25.7 per cent growth in net turnover for first quarter of current fiscal and said it would expand its lifestyle retailing chain by adding eight new stores in the next 12 months.

Diversified business giant ITC Ltd Friday said it will invest up to Rs 150 billion ($3.2 billion) in the next few years to expand its business, with a major share likely to be earmarked for growth of the company's e-Choupal (Internet kiosk) network.

An investment of Rs 140 to 150 billion would be made in the next two years to enlarge ITC's economic contribution, YC Deveshwar, ITC chairman, said at the company's AGM.

He said ITC's value addition had grown at a compound annual rate of more than 12 per cent to over Rs 680 billion in the past decade.

Deveshwar also hinted that a major portion of the new investment would go into expanding the e-Choupal network. Nearly Rs 50 billion would be invested to increase the e-Choupal infrastructure to more than 6,000 installations covering 100,000 villages and 3.5 million farmers.

The e-Choupal business is rapidly developing into a reliable source for the two-way flow of goods and services in rural markets, he said.

Digital infrastructure for e-Choupal is being supplemented with a phased roll out of the Choupal-Faagars, which are basically designed as village super markets to serve as a hub for a cluster of villages, he added.

He said while 10 Choupal-Faagars are already operational, an additional nine are in advanced stages of completion.

"The rural retailing initiative will be scaled up by another 40 Choupal Faagars in 12-18 months," he said.

ITC also announced a 25.7 per cent growth in net turnover for first quarter of current fiscal and said it would expand its lifestyle retailing chain by adding eight new stores in the next 12 months.

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