ITC Plans ₹20,000 Crore Expansion Strategy Amidst Domestic Growth Focus

ITC Chairman Sanjiv Puri announced plans to invest ₹20,000 crore to expand manufacturing operations across various sectors. The investment aims to enhance production capacity and reinforce the company's footprint in India under its 'Bharat First' strategy. ITC's revenue now comes from 65% non-cigarette businesses, with the cigarettes segment recording a 5.8% revenue growth. The non-cigarette FMCG business expanded with packaged food and personal care categories, while the hospitality segment saw revenue climb 14.29% but profits dip 9%.

Diversified conglomerate ITC Ltd has announced plans to invest ₹20,000 crore over the medium term to expand its manufacturing operations across various sectors. The investment aims to enhance production capacity and reinforce the company's footprint in India under its 'Bharat First' strategy, as announced by Chairman Sanjiv Puri at the company's Annual General Meeting (AGM) on July 25, 2025 [1].

The investment will see the establishment of eight new manufacturing units, building upon the eight already established in recent years. Puri emphasized that the focus is on value accretion through new brand launches and deepening the company's domestic presence before making significant overseas expansions [1].

ITC's revenue for the first quarter of fiscal year 2026 (Q1 FY26) showed a marginal 0.26% year-on-year decline in consolidated net profit, standing at ₹5,091.59 crore compared to ₹5,104.93 crore a year ago. However, gross revenue rose by 7.5% to ₹20,029.60 crore, indicating resilience despite a challenging macroeconomic environment [1].

A significant portion of ITC's revenue now comes from non-cigarette businesses, with 65% of the total revenue attributed to these segments. The cigarettes segment recorded a 5.8% year-on-year increase in revenue to ₹8,842.22 crore. The non-cigarette FMCG business expanded with packaged food and personal care categories, contributing to a 6.3% increase in revenue to ₹5,498.80 crore [1].

The hospitality segment saw revenue climb 14.29% to ₹713.3 crore, but pre-tax profit declined 9% to ₹122.21 crore. The dip was attributed to the operational impact of the newly launched luxury hotel, ITC Ratnadipa in Colombo, and the addition of seven new managed properties, including its first overseas Fortune Resort in Bhaktapur, Nepal [1].

The Paperboards, Paper, and Packaging segment faced challenges with a 6.78% drop in revenue to ₹1,976.85 crore and a 45.6% plunge in pre-tax profit to ₹256.15 crore due to high domestic wood prices and competition from low-cost Chinese imports [1].

Agri-business delivered strong top-line growth with revenue up 22.19% to ₹6,997.89 crore, but pre-tax profit declined 2.2% to ₹344.60 crore due to cost inflation in leaf tobacco and depreciation related to a new nicotine derivatives facility [1].

References:
[1] https://www.business-standard.com/companies/news/itc-investment-manufacturing-expansion-bharat-first-revenue-q1-125072500613_1.html
[2] https://www.latestly.com/agency-news/latest-news-itc-to-invest-rs-20000-crore-in-new-manufacturing-units-in-medium-term-chairman-sanjiv-puri-7020563.html