NEW DELHI: Diversified business group ITC is understood to be gearing up to invest up to Rs 1,000 crore in the FMCG segment in the next four years which will include setting up new facilities and enhancing existing capacities.
According to UBS Investment Research, which had met the company's top management recently, ITC is planning to invest Rs 600 crore to Rs 1,000 crore in the next three years.
The Kolkata-based company did not confirm the figure but said it will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity.
"Given the rapid growth of the fast moving consumer goods segment in India which is expected to triple in size in the next 10 years, ITC is pursuing an aggressive investment led growth strategy,"ITC Executive Director Kurush Grant told PTI.
Without confirming how much the company plans to invest, Grant said ITC is investing heavily in technology and manufacturing, fixed assets, brand building, R&D, product development and consumer insights to build market standing.
"We will invest in building state of the art manufacturing facilities, logistics as well as ramping up existing capacity," he added.
The UBS Investment Research report, however, said "(ITC's) losses in other FMCG are coming down, but they (ITC management) warn that the new food businesses will involve higher investments; Rs600 crore to Rs 1,000 crore over the next 3-4 years."
Under the FMCG division, ITC sells branded packaged foods under the brands Bingo, Sunfeast and Yippee among others, personal care range like Vivel and Fiama di Wills apart from stationery products, cigarettes and lifestyle apparel.
Over the last few years company has rapidly scaled up its FMCG businesses and has entered in new categories over the last few years like instant noodles, pasta, biscuits among others. In the quarter ended December 31, 2011 its FMCG business registered a revenue of Rs 4,603.66 crore, witnessing a growth of 19 per cent over the previous fiscal.
"This expansion of the FMCG portfolio not only requires establishment of new manufacturing operations but also creation of efficient supply chain, enhancement of logistics infrastructure and efficient multiple distribution channels across multiple locations," Grant said.
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Showing posts with label ITC. Show all posts
Showing posts with label ITC. Show all posts
Wednesday, January 25, 2012
Sunday, December 4, 2011
ITC to build $300 million hotel in Lankan capital
COLOMBO: ITC Ltd of India is to invest USD 300 million to set up a luxury hotel in Colombo, the government here today said.
The government has approved a USD 300 million foreign direct investment enabling the hotel to be built on 5 acres of land in close proximity to military headquarters in Colombo's famous Galle Face landmark beachfront on a 99-year lease.
"ITCL is a reputed hotel investment group in India, with investments and hotel in India. The government hopes that its presence in Sri Lanka will be a significant contribution toward promoting FDI and the tourism industry in the country," the government information department said.
The Board of Investment of Sri Lanka is to enter a Memorandum of Understanding with ITCL enabling the firm to execute the project under concessionary tax terms with permitted exemptions on investments.
This block of land was earlier allocated to China Aviation Technology Import Export Corporation (CATIC) for USD 73.5 million for a similar project.
The Chinese firm later withdrew and the Sri Lankan government is in the process of reimbursing USD 54.4 million dollars already paid by CATIC for the lease of land.
The government has approved a USD 300 million foreign direct investment enabling the hotel to be built on 5 acres of land in close proximity to military headquarters in Colombo's famous Galle Face landmark beachfront on a 99-year lease.
"ITCL is a reputed hotel investment group in India, with investments and hotel in India. The government hopes that its presence in Sri Lanka will be a significant contribution toward promoting FDI and the tourism industry in the country," the government information department said.
The Board of Investment of Sri Lanka is to enter a Memorandum of Understanding with ITCL enabling the firm to execute the project under concessionary tax terms with permitted exemptions on investments.
This block of land was earlier allocated to China Aviation Technology Import Export Corporation (CATIC) for USD 73.5 million for a similar project.
The Chinese firm later withdrew and the Sri Lankan government is in the process of reimbursing USD 54.4 million dollars already paid by CATIC for the lease of land.
After ITC closure, Manipal Group warns service halt in Nepal
KATHMANDU: A month after Indian tobacco giant ITC's joint venture in Nepal shut down its garment factory due to workers' militancy, now it is the turn of the Manipal Group, one of the single largest Indian investors in Nepal, to warn that it could suspend its hospital services in view of continued disruptions.
The Manipal College of Medical Sciences run by the Manipal Group in Pokhara city in central Nepal has run into fresh trouble since Sunday with a group of junior Nepali doctors going on strike, alleging discrimination between the pays of local and expatriate doctors.
The strikers refused to attend a meeting called in Kathmandu Monday with the medical regulatory body, Nepal Medical Council, as well as the management and Nepal Medical Association.
The college also runs a 700-bed teaching hospital and despite the strike, the authorities have continued to provide services to patients.
"However, if this continues, I have informed the chief district officer that we will be forced to suspend hospital services," said B.M. Nagpal, dean of the college.
Soon after its inauguration in 1994, the college and hospital has been facing union unrest, illegal strikes and an adverse media campaign.
"The allegations that there is a pay disparity between Indian and Nepali doctors are false," Nagpal said. "We are a business organisation. Why should we employ doctors from outside at a higher pay?"
However, Nepal is still unable to provide the number of senior doctors and specialists whose presence is mandated by the regulator.
"Till that is rectified, we have to get doctors from India," Nagpal said. "And if you get them from outside, you have to pay them an expatriate allowance to cope with additional expenses in a new country. That is the universal accepted norm."
All multinational organisations follow the principle, including the UN and European Union and even the Kendriya Vidyalaya run by the Indian government in Kathmandu.
However, Manipal is being targeted for a smear campaign that says the organisation discriminates against Nepali doctors.
"The strikers are saying expatriates receive higher pay, giving the examples of doctors who were brought from India on contract," Nagpal said. "A contract is not the same as employment. If you don't get the specialists and senior doctors you need in Nepal, you have to get them from outside. And for that, you have to pay them more."
Nagpal points out that Manipal has been grooming its students, training them and absorbing them. Currently, there are 120 faculty members out of whom 52 are from Nepal.
Hospital sources say the strikers have been abetted by the Maoist trade union. In the past, the union triggered cut-throat rivalry among the other trade unions at Manipal, causing frequent illegal strikes demanding pay raises in contravention of agreements signed with the management.
Some of the local doctors have been running private practices in violation of their service agreement and in spite of drawing a non-practice allowance.
The Manipal crisis comes after ITC's joint venture, Surya Nepal, the republic's biggest tax payer, was forced last month to shut down its garment factory in eastern Nepal that produced ITC's John Players and Springwood brands of clothing.
The closure came after militant workers, mostly women, vandalised the state of the art factory and took management staff captive, holding them without food and water for 24 hours.
The Manipal College of Medical Sciences run by the Manipal Group in Pokhara city in central Nepal has run into fresh trouble since Sunday with a group of junior Nepali doctors going on strike, alleging discrimination between the pays of local and expatriate doctors.
The strikers refused to attend a meeting called in Kathmandu Monday with the medical regulatory body, Nepal Medical Council, as well as the management and Nepal Medical Association.
The college also runs a 700-bed teaching hospital and despite the strike, the authorities have continued to provide services to patients.
"However, if this continues, I have informed the chief district officer that we will be forced to suspend hospital services," said B.M. Nagpal, dean of the college.
Soon after its inauguration in 1994, the college and hospital has been facing union unrest, illegal strikes and an adverse media campaign.
"The allegations that there is a pay disparity between Indian and Nepali doctors are false," Nagpal said. "We are a business organisation. Why should we employ doctors from outside at a higher pay?"
However, Nepal is still unable to provide the number of senior doctors and specialists whose presence is mandated by the regulator.
"Till that is rectified, we have to get doctors from India," Nagpal said. "And if you get them from outside, you have to pay them an expatriate allowance to cope with additional expenses in a new country. That is the universal accepted norm."
All multinational organisations follow the principle, including the UN and European Union and even the Kendriya Vidyalaya run by the Indian government in Kathmandu.
However, Manipal is being targeted for a smear campaign that says the organisation discriminates against Nepali doctors.
"The strikers are saying expatriates receive higher pay, giving the examples of doctors who were brought from India on contract," Nagpal said. "A contract is not the same as employment. If you don't get the specialists and senior doctors you need in Nepal, you have to get them from outside. And for that, you have to pay them more."
Nagpal points out that Manipal has been grooming its students, training them and absorbing them. Currently, there are 120 faculty members out of whom 52 are from Nepal.
Hospital sources say the strikers have been abetted by the Maoist trade union. In the past, the union triggered cut-throat rivalry among the other trade unions at Manipal, causing frequent illegal strikes demanding pay raises in contravention of agreements signed with the management.
Some of the local doctors have been running private practices in violation of their service agreement and in spite of drawing a non-practice allowance.
The Manipal crisis comes after ITC's joint venture, Surya Nepal, the republic's biggest tax payer, was forced last month to shut down its garment factory in eastern Nepal that produced ITC's John Players and Springwood brands of clothing.
The closure came after militant workers, mostly women, vandalised the state of the art factory and took management staff captive, holding them without food and water for 24 hours.
Friday, July 29, 2011
TC to invest Rs 5,000 crore for buying shares of rivals FMCG, IT and agri-products companies : YC Deveshwar
KOLKATA: ITC plans to invest up to Rs 5,000 crore buying shares of its rivals across sectors it operates in, its chairman YC Deveshwar said.
"We currently have a liquidity in our books to the tune of Rs 4,000-5,000 crore of funds. We would like to deploy it as equity investments in sectors where we operate, have a thorough understanding and hence feel safer about our investment," he told newsmen after the company's 100th AGM here on Friday.
The cigarettes-to-hotels conglomerate will look at a wide range of rival companies in FMCG, IT and agri-products for treasury investment. ITC also plans to get into dairy business, making pasteurised milk, milk powder, cheese, milk chocolates and butter, Deveshwar told the AGM. "It's actually a compliment to rivals if we invest in them. As far as I know, some of them are actually happy with our investment," said Deveshwar.
ITC's investment inEast India Hotels (EIH) andHotel Leelaventure have yielded handsome returns. The company boughtEIH shares at Rs 35, and on Friday it closed at Rs 96.05 on the BSE. Hotel Leelaventure share closed at Rs 45.75. ITC also holds stakes in cigarette companyVST Industries and food companyAgro Tech Foods, which makes Sundrop oil and ACT II popcorn.
ITC, which holds little less than 15% in EIH and Leelaventure, had at one point created a takeover threat in both these companies. Asked whether ITC may increase its stake in EIH and Leelaventure up to 25%-the new trigger point for mandatory buyout offer as per market regulator Sebi's new takeover code-Deveshwar said the company will do so if the share price is attractive. "It will be decided by the treasury. If required, we may also sell shares if prices are attractive," he said.
ITC also plans to enter the dairy business by rolling out products like pasteurised milk, skimmed milk powder, cheese, milk chocolates and butter. "We are starting a project in Munger in Bihar where we are engaged in animal husbandry project to improve the yield of cattle. The first products to be launched in the market will be ghee and skimmed milk powder," he said.
Deveshwar said in the AGM that ITC plans to turn its personal care and branded food business profitable over the next six year.
"We currently have a liquidity in our books to the tune of Rs 4,000-5,000 crore of funds. We would like to deploy it as equity investments in sectors where we operate, have a thorough understanding and hence feel safer about our investment," he told newsmen after the company's 100th AGM here on Friday.
The cigarettes-to-hotels conglomerate will look at a wide range of rival companies in FMCG, IT and agri-products for treasury investment. ITC also plans to get into dairy business, making pasteurised milk, milk powder, cheese, milk chocolates and butter, Deveshwar told the AGM. "It's actually a compliment to rivals if we invest in them. As far as I know, some of them are actually happy with our investment," said Deveshwar.
ITC's investment inEast India Hotels (EIH) andHotel Leelaventure have yielded handsome returns. The company boughtEIH shares at Rs 35, and on Friday it closed at Rs 96.05 on the BSE. Hotel Leelaventure share closed at Rs 45.75. ITC also holds stakes in cigarette companyVST Industries and food companyAgro Tech Foods, which makes Sundrop oil and ACT II popcorn.
ITC, which holds little less than 15% in EIH and Leelaventure, had at one point created a takeover threat in both these companies. Asked whether ITC may increase its stake in EIH and Leelaventure up to 25%-the new trigger point for mandatory buyout offer as per market regulator Sebi's new takeover code-Deveshwar said the company will do so if the share price is attractive. "It will be decided by the treasury. If required, we may also sell shares if prices are attractive," he said.
ITC also plans to enter the dairy business by rolling out products like pasteurised milk, skimmed milk powder, cheese, milk chocolates and butter. "We are starting a project in Munger in Bihar where we are engaged in animal husbandry project to improve the yield of cattle. The first products to be launched in the market will be ghee and skimmed milk powder," he said.
Deveshwar said in the AGM that ITC plans to turn its personal care and branded food business profitable over the next six year.
Monday, February 21, 2011
Indian IT firms go to US campuses to hire local US talent
Bangalore: After years of hiring experienced professionals to serve top customers in the US, Indian tech firms are now seeking to hire fresh engineering graduates from American universities, as stricter immigration norms and high unemployment rate make local hiring attractive in the country.
In a year when India’s top outsourcing firms are under pressure to position themselves as more global companies not necessarily responsible for America’s ‘jobless economic recovery’, experts and company officials say a war for local US talent is set to become a priority.
Apart from stricter and costlier visa permits in the US, outsourcing customers such as GE are also asking Indian vendors to play a role in addressing high unemployment rates.
India-based tech firms including Wipro, Tata Consultancy Services , Infosys and Cognizant are now battling it out to hire hundreds of fresh engineering graduates from campuses of Pennsylvania State University , Rutgers, University of Massachusetts , University of Connecticut , North Carolina State University and University of Michigan , among many others.
Companies such as Infosys, which counts JP Morgan among its top customers, say they have started hiring from US campuses.
“We have a target of hiring 250 local employees every quarter in the US for the next four quarters,” said S Gopalakrishnan,
CEO of Infosys. “As we develop our consulting and systems integration services, we need to hire more at all levels in the United States. Brand recall for companies like ours is improving every year, we are slowly getting there,” he said.
US talent pool much smaller
“There is no big cost difference because we have to pay American salaries even to our Indian employees going there,” he added.
However, unlike India, which produces nearly 600,000 engineering graduates every year, the US pool is much smaller, ensuring a much more intense fight for whatever talent is available.
“Though IT is a popular choice, compared to Indian colleges, the pool of students looking out for a career in IT is smaller and all tech firms are tapping into this pool; so definitely, the war for talent is there,” said Priti Rajora , global head, talent acquisition, Wipro Technologies .
On their part, India’s top outsourcing companies TCS, Infosys, Wipro and HCL have already started setting up development centres in locations such as Atlanta and Michigan. While TCS aims to double its foreign workforce from 10,000 currently to 20,000 over the next five years, Infosys and Wipro could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% currently.
In a year when India’s top outsourcing firms are under pressure to position themselves as more global companies not necessarily responsible for America’s ‘jobless economic recovery’, experts and company officials say a war for local US talent is set to become a priority.
Apart from stricter and costlier visa permits in the US, outsourcing customers such as GE are also asking Indian vendors to play a role in addressing high unemployment rates.
India-based tech firms including Wipro, Tata Consultancy Services , Infosys and Cognizant are now battling it out to hire hundreds of fresh engineering graduates from campuses of Pennsylvania State University , Rutgers, University of Massachusetts , University of Connecticut , North Carolina State University and University of Michigan , among many others.
Companies such as Infosys, which counts JP Morgan among its top customers, say they have started hiring from US campuses.
“We have a target of hiring 250 local employees every quarter in the US for the next four quarters,” said S Gopalakrishnan,
CEO of Infosys. “As we develop our consulting and systems integration services, we need to hire more at all levels in the United States. Brand recall for companies like ours is improving every year, we are slowly getting there,” he said.
US talent pool much smaller
“There is no big cost difference because we have to pay American salaries even to our Indian employees going there,” he added.
However, unlike India, which produces nearly 600,000 engineering graduates every year, the US pool is much smaller, ensuring a much more intense fight for whatever talent is available.
“Though IT is a popular choice, compared to Indian colleges, the pool of students looking out for a career in IT is smaller and all tech firms are tapping into this pool; so definitely, the war for talent is there,” said Priti Rajora , global head, talent acquisition, Wipro Technologies .
On their part, India’s top outsourcing companies TCS, Infosys, Wipro and HCL have already started setting up development centres in locations such as Atlanta and Michigan. While TCS aims to double its foreign workforce from 10,000 currently to 20,000 over the next five years, Infosys and Wipro could see non-Indians account for 10-15% of their total employee base in next 3-5 years, from around 5% currently.
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