Kolkata, Jul 29: Diversified conglomerate ITC Ltd's Chairman Y C Deveshwar today said the non-tobacco FMCG business will become profitable before he retires from the company.
“Before I hang up my boots, the non-tobacco FMCG business will be profitable,” Deveshwar told shareholders at the 100th annual general meeting of the company here. The shareholders granted extension of Deveshwar's tenure as chairman of ITC for a period of five years with effect from February, 2012.
Replying to shareholders' queries, Deveshwar said the non-tobacco FMCG business of ITC was competing with several other companies.“We want to set out targets high for the business and also to make it big. Signs of turning around are already there,” Deveshwar said.
While ITC's 80 per cent of the revenue comes from the tobacco business, the non-tobacco FMCG business has been making losses since the time the company ventured into this area of activity.
On ITC Global, which was registered in Singapore for carrying out trading activity, Deveshwar said it was under judicial management and was now under winding up process. He said ITC Global was a Singapore-based entity with limited liability and parent ITC had no issue with it regarding to any claims made by the former. Not too in the distant future, the company would also be wound up, Deveshwar said.
Referring to the closure of WIMCO plants, Deveshwar said that the infrastructure would be used to manufacture products for businesses which the company had entered of late. ITC acquired the matchstick maker WIMCO but had to suspend operations as differential duty structure was affecting the business.
Deveshwar said that investments in East India Hotels and Leela had made good capital appreciation ever since those shares were bought by ITC.ITC's non-tobacco FMCG businesses were branded packaged foods, personal care products, education and stationery products and lifestyle retailing. The tobacco business was also clubbed under the FMCG category. PTI