Making ITC Future-Ready

Sanjiv Puri banks on innovation, agility and technology in ITC's journey from a tobacco company to a diversified conglomerate.

- Ajita Shashidhar

WHEN ITC chairman Sanjiv Puri took charge of the diversified conglomerate in 2019, he had the humongous task of reducing the company’s dependence on the tobacco business, which contributed over 90% of overall revenue. Moreover, the market wanted ITC to unlock value by demerging its hotel business. Hotels business was in the red and despite its other engines (FMCG, paperboards and agri) growing impressively, the loss-making hotel portfolio hit valuations. The antitobacco drive and increased focus on sustainability made investors shy away from ITC despite its ESG scores being one of the best globally.

Initially, Puri remained non-committal about unlocking value. Finally, in August 2023, he announced the much-awaited demerger of the hotels business and secured shareholder approval by June 2024. Once demerged, the parent entity would hold 40% of the business, while the remaining 60% would be with shareholders.

Since May this year, Puri has also donned the hat of CII president, shuttling between the industry chamber’s headquarter in Delhi and ITC’s headquarters in Kolkata. But despite the hectic schedule, Puri looks calm and happy, though he attributes it to morning yoga and meditation, which he seldom misses. But he’s also not being asked the perennial question about ITC’s stock price, which has spiraled 86% since the demerger. The last 24 months have also seen the opening of 32 hotels, including new formats such as Storii and Mementos by ITC Hotels.