Cigarette-to-hotel-to-FMCG major ITC Ltd may look into the possibility of entering in to the healthcare sector. The board of the diversified conglomerate has recommended for the approval of its shareholders for the alteration of the objects clause of the company’s Memorandum of Association for venturing into the new sector.
In a stock exchange filing, ITC said its board of directors at a meeting held on Friday “recommended for the approval of the members, enlargement of the objects clause of the memorandum of association of the company to include ‘Healthcare’, such approval to be taken by means of postal ballot and e-voting”.
Notably, India’s healthcare industry is likely to witness a significant growth in the coming years.
The board of the country’s largest cigarette maker at its meeting appointed Sanjiv Puri, its chief operating officer (COO), as the chief executive officer (CEO) with effect from February 5. Puri will take the independent charge of the executive leadership of the company as Y C Deveshwar, currently chairman & chief executive, will move to a non-executive role from the next month.
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ITC’s standalone net profit grew 5.71% year-on-year to Rs. 2646.73 crore for the third quarter ended December 31, 2016 as its revenue from operations rose by 4.52% y-o-y amid lower consumer offtake and reduction in trade pipelines due to cash crunch post the government’s demonetisation move.
The company’s revenue from operation during the December quarter rose to Rs. 13,470.89 crore from Rs. 12,887.78 crore during the year-ago period. The company, in a statement, said the operating environment was extremely challenging during the quarter under review.