ITC to invest Rs 23,000 crore over 10 years
Tobacco-to-toiletry conglomerate ITC Ltd is planning to invest Rs 23,000 crore in three of its key verticals — fast-moving consumer goods, paper and packaging and also the hospitality sector — over a period of 7 to 10 years.business Updated: Jul 23, 2010 23:19 IST
Tobacco-to-toiletry conglomerate ITC Ltd is planning to invest Rs 23,000 crore in three of its key verticals — fast-moving consumer goods, paper and packaging and also the hospitality sector — over a period of 7 to 10 years.
The diversified conglomerate sees opportuntinies to invest Rs 8,000 crore in FMCG areas like food, personal care and apparel and tobacco; Rs 9,000 crore in hotels, while the remaining would be pumped into the paper and packaging business.
Addressing shareholders at the company's annual general meeting here, ITC Chairman Y.C. Deveshwar said that all the investments would be made in the "promising businesses of tomorrow" for which ITC would not need to borrow any money. "Our cash flows are consistent and we need to consume the money fast," Deveshwar said.
ITC said it has no intention for making any hostile bid for rival hotel operator EIH LTD, nor it is in a position to make an open offer for picking up another 20 per cent stake in the company. ITC holds 14.98 per cent in EIH Ltd. EIH is a major player in the hospitality industry and runs the Oberoi group of hotels.
Deveshwar said that it has no intention of crossing the 15 per cent holding mark when it needs to approach the market regulator SEBI. The market has been rife with speculation that ITC might go for a hostile takeover of EIH as it has been steadily raising its stake.
First Published: Jul 23, 2010 23:13 IST