Sanjiv Puri announces ITC's investment in paperboards and packaging

With plans to invest Rs 20,000 crores over the next five years, ITC, as stated by Chairman and MD Sanjiv Puri, will allocate about one-third of this sum to its paperboards and packaging operations.

12 Aug 2024 | By Charmiane Alexander

Sanjiv Puri: The investments will focus on expanding capacity, upgrading technology, and driving innovation

ITC chairman and MD Sanjiv Puri has announced an investment outlay of about Rs 20,000 crores in the medium term, citing its confidence in the India story. The diversified conglomerate will invest in the FMCG business, as well as paperboards and packaging business. The rest will be spent on agriculture and other businesses.

Puri mentioned that 30-35% will be investments in the paperboards and packaging businesses over a period of five years. He said the site in Bhadrachalam is saturated and the group may look at a greenfield site for a paperboards factory.

Puri said, "The investments are largely for capacity augmentation, technology upgradation, modernisation and innovation". Puri said the outlay in the medium term is because of the company's confidence in the India story.

During the last financial year, ITC reported a 6.8% increase in gross revenue to Rs 69,446 crore. This excludes the agri business, which faced an impact because of regulatory trade restrictions amid food security concerns and inflation.

Meanwhile the paperboards, paper and packaging segment faced headwinds from muted demand in global markets, prevalence of low priced Chinese supplies and surge in wood costs.

The paperboards & packaging business sustained its leadership in the value-added segments with focused innovations, development of customised solutions for end-user industries and capacity augmentation. Structural competitiveness has been enhanced by leveraging its integrated business model, Industry 4.0 initiatives, strategic investments in renewable energy and in augmenting in-house pulp manufacturing capacity including India’s first bleached chemi-thermomechanical pulp facility.

Meanwhile a range of sustainable packaging solutions has been launched under the Filo brand to replace single-use plastics. A moulded fibre plant in Madhya Pradesh has been commissioned recently for the next horizon of sustainable packaging.

Puri confirmed a demerger timeline of 15-18 months for ITC hotels during his remarks at ITC's 113th annual general meeting on 26 July. This was something he had hinted about last year.