ITC to review organisational structure from time to time: CMD Sanjiv Puri tells shareholders

By: |
August 12, 2021 6:15 AM

On when is ITC planning to list its wholly-owned subsidiary ITC Infotech on the bourses, he said from time to time, “these things” get evaluated.

On Wednesday, Puri said the company was prepared to respond to the situation faced by its hotel business, and the pandemic gave it the opportunity to look at alternate revenue stream and how to bring in operational efficiencies.On Wednesday, Puri said the company was prepared to respond to the situation faced by its hotel business, and the pandemic gave it the opportunity to look at alternate revenue stream and how to bring in operational efficiencies.

Diversified conglomerate ITC will review its organisational structure from time to time going ahead, chairman and MD Sanjiv Puri said on Wednesday. He also said the company will take decisions on demerger or merger of different businesses on the basis of the macro context and the organisation’s strategy to create sustained shareholders value.

Replying to shareholders’ questions at the 110th AGM, Puri said as the hotel segment was most badly impacted due to the ongoing pandemic, it was not the “right time” to go for an “alternate structure”. “We accept that given the situation faced by the hotel industry, it is not the right tome to do it. We will have to wait for the recovery,” he said. Last year, the company had said it had started to look at “some alternate structuring” to enhance “value creation” for its hotels business.

On Wednesday, Puri said the company was prepared to respond to the situation faced by its hotel business, and the pandemic gave it the opportunity to look at alternate revenue stream and how to bring in operational efficiencies.

As the shareholders suggested different measures like demerger, issuing bonus equity shares and buyback of shares, the cigarette-to-FMCG-to-hotel major said it was “committed” to creating sustained shareholders value and was going to do what was good for the long term for the company. “Enterprise has to exist not just for today, it has to exist for tomorrow and day after. Sustained value creation will be the guiding Mantra. And, within that framework, we will do, we are committed to doing what is right to create value,” Puri said.

“Whether being together or being separate is a better solution is answered by what will give us the sustained value and then what are the merits and de-merits of situation. Nothing is cast in stone, and we will review this time to time in the context of the macros, the comparative context and the strategy of the organization,” Puri said, adding the conglomerate has to go for whichever gives it sustained value.

On when is ITC planning to list its wholly-owned subsidiary ITC Infotech on the bourses, he said from time to time, “these things” get evaluated.

Puri further said although three of the company’s segments — cigarettes, education and stationery and hotels — were impacted in the last financial year, it did a terrific job to recover well as the economy opened up and mobility increased. In the cigarette business, the company was nearly close to pre-Covid levels towards the end of FY21.

‘Pro-actively exploring inorganic opportunities’

Puri said the company is “proactively exploring” inorganic opportunities as part of the next horizon vision. “In this journey to the ITC next horizon, several strategic interventions are being executed to achieve sustained, competitive and profitable growth. Accordingly, the FMCG portfolio has been revitalised to make it future-ready, address emerging trends and develop categories of the future,” Puri said.

“Today’s new-age consumers are digital natives with extensive engagement in social and e-commerce platforms. Recognising the need to engage deeply with consumers, your company established state-of-the-art marketing command centres called ‘Sixth Sense’ in Bengaluru and Kolkata,” he told the shareholders.

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