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Monday, April 21, 2008

ITC to invest over Rs 15k cr in the next few years

Cigarette to soap maker, ITC Ltd, has earmarked in excess of Rs 15,000
crore investment over the next few years.

The proposed capex is higher by two-and-a-half times than the entire
amount it had invested in the previous decade. It had spent Rs 6,000
crore to "enhance the competitiveness of its businesses".

"Investment plans of over Rs 15,000 crore over the next few years
would further enlarge ITC's economic contribution," the company has
said in its sustainability report 2007.

The company had earned foreign exchange to the tune of USD 2.8 billion
in the previous decade, which comprised over two per cent of the
countrys total agri exports.

However, when contacted a company official declined to give the
details of the proposed investment plans, but said that so far ITC was
a debt-free company and had financed investments from its own
sources.

"We do not disclose details of our future investment plans. So far, we
are a zero debt company and have financed investments from our own
resources," the official told PTI.

Recently, the company Chairman Y.C. Deveshwar has said that the
company would put up a food-processing unit in Howrah, West Bengal
with an investment of Rs 300 crore. The plant would be operational in
this year itself.

In addition to that, the company is constructing two super deluxe
luxury hotels at Bengaluru and Chennai.

ITC recorded Rs 12,179 crore net turnovers in 2006-2007, up from 9,790
crore in 2005-06. Contribution to the exchequer also went up to Rs
8,455 crore during 2006-07 from Rs 7,677 crore in 2005-06.


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