ITC AGM 2023: From hotel business demerger, to cigarettes - key takeaways from CMD Sajiv Puri's speech
ITC AGM 2023: The recently-announced demerger of ITC Hotels from the parent company will unlock value for ITC shareholders and sharpen capital allocation, said its Chairman and Managing Director Sanjiv Puri. The FMCG major, ITC held its 112th Annual General Meeting on August 11 where Puri address the company shareholders.
“For ITC, the reorganization of business will sharpen capital allocation, improve asset efficiency ratios, unlock value for shareholders and enable leverage of institutional synergies," Puri said. For the demerged entity, Puri said that the continued interest of ITC in it will provide long-term stability and instill a sense of assurance among partners, investors and employees while enabling the new entity to leverage ITC’s institutional strengths, including the timeless goodwill, world class brands and governance processes.
“The proposed reorganization will enable ITC to architect the next horizon of growth as a pure play hotels entity with a strong balance sheet, healthy pipeline, specially when industry is poised for robust growth," Puri added. Read Live Updates from ITC AGM here He informed that ITC’s hotel business recorded strong performance in FY23 with doubling of segment revenue and EBITDA margins expanding by 930 basis points (bps) over FY20.
He added that the ITC hotel business was well poised to capitalise on significant growth opportunities given its distinctive position in India’s tourism landscape. Meanwhile, spaking about the FMCG business, Puri said that the company built 25+ vibrant brands of FMCG business in a short span.
“Turnover of FMCG business grew by 1.8x, while the segment’s EBITDA margins expanded by 770 bps. ITC’s world class FMCG brands like paper boards, packaging, agri
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