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Will ITC demerge its FMCG business?
ITC is reportedly mulling demerger of its software business at a valuation of around ₹ 25,000 crore. Following this news, ITC share price added 4\% intra-day on Wednesday and closed 1.7\% higher. Earlier this year, there were rumors that ITC would demerge its lucrative FMCG business and hotel business.
Is ITC demerging its business?
Cigarettes to hotels conglomerate ITC Group is reportedly mulling demerger of its software business ITC Infotech at a valuation of Rs 20,000-25,000 crore. The company is likely to appoint investment bankers going ahead. It was last seen trading Rs 239.40 on the NSE on Thursday afternoon.
Does cigarette come under FMCG?
The retail market for FMCGs includes businesses in the following International Standard Industrial Classification (ISIC) (Revision 3) categories: ISIC 5220 retail sales of food, beverages and tobacco in specialized stores. ISIC 5231 retail sales of pharmaceutical and medical goods, cosmetic and toilet articles.
Is ITC hotel business profitable?
The hotel business seems to have become the biggest drag on profitability, having sucked in 2 per cent of operating profit generated by all other businesses in Q3. ITC on Thursday reported an 11.6 per cent year-on-year decline in net profit at Rs 3,662.85 crore. Revenue came in at Rs 12,580.40 crore, up 4.7 per cent.
Usually, when a company demerges its business, it announces a distribution of shares from the new company for its existing investors. This also leads to a fall in the price of the company’s own stock.
ITC Infotech is a wholly owned subsidiary of ITC Ltd. ITC is one of India’s leading private sector companies and a diversified conglomerate with businesses spanning Consumer Goods, Hotels, Paperboards and Packaging, Agri Business and Information Technology.
Does ITC still make cigarette?
ITC is the market leader in cigarettes in India. ITC’s wide range of brands, includes Insignia, India Kings, Classic, Gold Flake, American Club, Wills Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.
How many ITC Hotels are there in India?
With more than 100 hotels in over 70 destinations, ITC Hotels has set new standards of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety.