- 29 Mar 2023
- ICICIdirect Research
ITC to invest Rs 3000 crore across segmentsITC - 450 Change: 6.10 (1.38 %)
News: ITC will accelerate investments, which had slowed during the pandemic, with a corpus of around Rs 3,000 crore annually for the next few years, primarily for building manufacturing capacities and accelerating growth. The company expects the FMCG industry to bounce back on volume sales growth from the next fiscal year, led by rural demand, with early signs of recovery already visible. ITC is No. 2 in hotels with all segments reporting robust growth. It plans to create an “alternate structure” for the hotel business that will be undertaken in the “next couple of quarters".
Views: With high investments, the company is expecting strong growth to continue across segments specifically in FMCG, paper & hotels business. We remain positive on ITC on the back of strong growth across segments, capital efficiency and high dividend payout.