‘ITC to invest Rs 20K cr in next 5 yrs’

New Delhi: Diversified firm ITC Ltd will invest Rs 20,000 crore in the next five years, largely on its FMCG vertical for capacity augmentation, modernisation and innovation, company Chairman Sanjiv Puri said on Friday.

From a larger trend perspective, green shoots are becoming visible in the rural markets, although it remains a “monitorable”, with the forecast of a better monsoon this year, he said in a conference call.

About the details of the investment, he said, “As far as Rs 20,000 crore is concerned, a larger component would go into FMCG, which is roughly about 35-40 per cent and another one third or little bit less than would go into paperboard and packaging and the balance would go into other businesses as in agri, our traditional business also get into certain corporate investment that happens.”

Puri further said, “The investments are largely for capacity augmentation, and will also have for upgrade and modernisation and bringing in more variety and innovation… All of these will be the principles around which the investments will happen.”

ITC plans to set up a new greenfield unit for its paperboards and specialty papers as its exiting Paper Mill at Bhadrachalam, according to Puri is fairly saturated.

The company is now looking of a new site, he added.

Asked about the demand situation, he said, “The larger trend is that there are green shoots in rural (India), having said that it still remains a monitorable. We are hopeful that things should get better because monsoons are coming in.”

Monsoons are expected to be better than last year, he added.

Despite the headwinds, ITC has invested across all businesses to enhance structural competitiveness and build an enterprise of the future, he added.

On the hotels business, Puri said the demerger is on track and expect this to be completed in the next few months.

Puri also added that he expects the demerger of the hotel business to complete in the next 5-6 months and to get listed by the end of this year.