Whatever is right will be done at the right time: Sanjiv Puri on ITC Infotech

ITC Chairman and Managing Director Sanjiv Puri on Friday said the company will continue to evaluate strategic options for its businesses, including ITC Infotech, based on competitive context, business maturity, opportunities and overall value creation, without specifying any immediate plans for a demerger similar to the hotels vertical.

Responding to a query on the possibility of spinning off ITC Infotech as a separate listed entity at the AGM, Puri said, "We look at the business strategy, the competitive context, maturity of the business, and weigh the pros and cons of the current structure. Whatever is best, we recommend for shareholders' approval."

He stressed that ITC's structure is aligned with its strategic objectives, and decisions such as the demerger of ITC Hotels follow extensive reviews. "Just like we did for hotels, whatever is right will be done at the right time. Nothing is cast in stone," Puri asserted.


Highlighting the synergies ITC has leveraged across its diverse verticals, he pointed to the recent creation of the food tech business that drew on capabilities from the company's foods, hotels, and digital capabilities. "We've been able to do this in a very cost-efficient fashion," he said.

He also cited external assessments that affirmed the company's capital-efficient model. "An analyst report noted that ITC has created one of the most capital-efficient FMCG businesses, despite the total addressable market being as high as Rs 5 lakh crore," Puri said.

Referring to studies by leading consulting firms in 2002, 2006, and 2017, Puri said these reports observed that conglomerates delivered superior shareholder returns in about 50 per cent of cases.

"Value creation is not a function of diversification but of how that diversity is managed. With distributed leadership, strong governance and institutional synergies, ITC has turned this into a strength," he said.