Kolkata, Jul 25 (PTI) Diversified conglomerate ITC Ltd plans to invest Rs 20,000 crore across its businesses over the medium term to strengthen manufacturing capabilities and scale emerging growth vectors, Chairman and Managing Director Sanjiv Puri said on Friday.

"Encouraged by the promise of the Indian economy, your company has invested in eight world-class manufacturing facilities in the recent past, with an outlay of nearly Rs 4,500 crore," Puri informed shareholders at the company's Annual General Meeting held virtually.

"As we continue to scale new horizons, ITC plans to invest Rs 20,000 crore across businesses in the medium term," Puri said, without providing further details.

He had earlier announced this investment plan during the 2024 AGM speech.

The investment could span in areas such as FMCG, sustainable packaging and export-oriented value-added agricultural products. As we continue to scale new horizons.

While he did not provide a specific timeline for the proposed capex, Puri said the investment will be directed toward areas aligned with the company's 'ITC Next' strategy, which seeks to build a future-ready portfolio through both organic and inorganic expansion.

He said the company has built 40 state-of-the-art manufacturing assets, enriching ITC's robust ecosystem of 250 dedicated factories and 7,500 MSMEs. "Across your company's businesses, over 90 per cent of value-addition takes place in the country, enlarging ITC's contribution to the economy," he noted.

A key pillar of this strategy is ITC's foray into the online food services space through a fast-scaling food-tech platform.

"A new vector of growth envisioned in the ITC Next strategy is your company's Food-Tech business, which leverages your company's strengths in foods, hotels and digital technologies to tap into the fast-growing online food services segment," Puri said.

The business has already scaled up to 60 cloud kitchens across five cities under four brands — ITC Master Chef Creations, Aashirvaad Soul Creations, Sunfeast Baked Creations, and Sansho by ITC Master Chef.

"This business has registered a CAGR of 108% in the 3 years since inception, setting new benchmarks in culinary innovation and tech-enabled operations, gaining increasing consumer franchise," he said, adding that the platform is now being progressively introduced across the country.

On ITC's global outlook, Puri reiterated that its global ambitions are anchored in a strong domestic foundation. "It is our firm belief that Indian brands must adorn the global stage and towards that, establish an enduring legacy in Bharat first, before making an impact overseas," he said.

ITC's FMCG portfolio currently represents an annual consumer spend of over Rs 34,000 crore and reaches more than 260 million households across India, with a growing presence in over 70 international markets. "The growing consumer patronage and trust over the years for your company's products emboldens our aspiration to expand our FMCG portfolio with the overarching ambition to serve domestic and global consumers with these world-class home-grown brands of impeccable quality," Puri said.

The company launched over 100 new products last year across categories such as health and nutrition, hygiene, naturals, convenience and on-the-go, while continuing to build on mega brands and pursue value-accretive acquisitions like 24 Mantra Organic, Prasuma, Yoga Bar and Mother Sparsh.

Responding to shareholder queries, Puri said the company had introduced over 300 new products in the past three years, highlighting innovation as a continuing priority to meet dynamic consumer preferences.

On the performance of the paperboards and packaging business, Puri acknowledged that it remains a "cyclical industry" currently facing headwinds due to "dumping of cheap imports and a surge in wood prices". He added that the industry has sought "safeguard measures" from authorities to address structural challenges. PTI BSM RG