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Monday, April 21, 2008

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

MUMBAI: Diversified conglomerate ITC has earmarked in excess of Rs
15,000 crore investment over the next few years, the company has said
in its sustainability report 2007. The proposed capex two-and-a-half
times higher 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".

The company had earned foreign exchange to the tune of $2.8 billion in
the previous decade, which comprised over 2% of the country's total
agri exports. When contacted a company official declined to give the
details, 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 said.

Recently, the company chairman YC 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 2006-07, up from Rs
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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