Kolkata: ITC is recalibrating its cigarette portfolio to cushion the impact of higher taxes, chairperson Sanjiv Puri said on Friday, attributing the company’s recent share-price weakness largely to increased taxation on cigarettes.Responding to shareholders at the AGM, Puri said ITC had adopted calibrated price hikes to minimise loss of market share to the illicit trade. “We are taking appropriate steps to deal with the increased taxes on cigarettes,” he said, recalling that the stock had recovered from around Rs 200 to over Rs 400 before tax changes affected sentiment.Puri also highlighted the growing contribution of ITC’s non-cigarette businesses. He said non-tobacco FMCG accounted for 25% of the company’s bottom line before the ITC Hotels demerger, up from 17-18% in 2017, while nearly 64% of revenue now comes from non-cigarette businesses. Analysts value about 40% of ITC from its non-cigarette portfolio, he added.Regarding his plans for Bengal, Puri said ITC plans to invest around Rs 2,000 crore in the state in upcoming projects, including solar initiatives. The company has already invested Rs 7,000-8,000 crore in the state.
