Company scouts for CEO to build multi-speciality hospitals
FMCG-major ITC will foray into fruits, vegetables and other perishables segment, said chairman Y.C. Deveshwar.
“Investments are under way to create climate-controlled infrastructure for an efficient supply-chain,” he said addressing shareholders on Friday.
Elaborating, he said this would help create jobs in the manufacturing sector while preventing agriculture waste. Investments were also made in farming for aromatic and medicinal plants in line with ITC’s focus on agri-based health and wellness products.
Frozen prawns
The firm had already unveiled frozen prawns under its ‘Master Chef’ brand, which will soon be rolled out nationally.
Known best for its cigarettes, over a period of time, ITC has crafted a strategy to increase its footprint in other sectors. Apart from its traditional hotels, paper and stationery, lifestyle and agri business, it now has a major presence in packaged food and personal-care business. It also plans to get into healthcare.
To a question, Mr. Deveshwar said ITC was now looking for a CEO who would build a plan for healthcare venture. ITC would build multi-speciality hospitals where doctors’ income would not be linked to the hospital’s revenue, but with the patient’s well-being. He, however, declined to divulge details.
Mr. Deveshwar said that the GST rollout had been “surprisingly smooth” barring some initial hiccups.
He did not foresee any issues due to de-stocking by wholesalers, saying there would be no problem if consumer demand was good.
He was, however, not so optimistic on cigarettes saying the legal cigarette industry had lost 25% per cent volume with a 200% increase in taxation over six years. He saidpointed out that 68% of tobacco consumed in India escaped any regulatory watch. “Nobody questioned ITC when it was only a cigarette company.. where are these concerns now emanating from,” he quizzed.
CEO Sanjiv Puri said ITC had released for retail introduction its chocolates and coffee beans after incubating them within its own outlets. A board puzzle made out of child-friendly plastic was now being incubated as an early learning tool by the education and stationery division. “ITC will outgrow industry in its new FMCG business”, he said.
Analysts’ firm Edelweiss Securities said they expected ITC’s FMCG business to grow in double digits in fiscal 2018 aided by entry into new segments. It also said the recent revision in GST rates on cigarettes had led to another round of price hikes and may impact volumes