ITC open to demerge hotels business, list IT arm: Sanjiv Puri – Times of India
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KOLKATA: ITC chairman Sanjiv Puri on Wednesday said it is not ruling out the possibility of restructuring different businesses, including demerger of hotels and even listing of ITC Infotech, a subsidiary of the FMCG-to-hotel-to-tobacco conglomerate.
At the company’s AGM, Puri also said it aims to optimise shareholder value while addressing concerns over underperformance of ITC’s stock price. Shareholders used the AGM to raise the issue of demerger of hotel as well as the listing of ITC Infotech as part of an organisational restructuring.
“We had said last year that we will look at an alternative structure, which we are reiterating this time. We accept that given the situation faced by the hotel industry, it is not the right time to do it. We will have to wait for the recovery,” Puri said.
Puri said hotel segment is worst hit though it has made some recovery, becoming cashpositive in the second half of the previous fiscal. According to him, the situation gives an opportunity to look at alternative revenue streams as well. “We are also looking at how to bring in operational efficiencies. And these are happening. Our asset-light model will help us grow faster and optimise capital intensity,” he said.
On ITC Infotech, wholly owned subsidiary of ITC, Puri said the company is making good progress and it would let the company grow this business. “And, from time-totime, these (listing) things get evaluated and when it is felt it is the right thing to do, it will be pursued.”
At the company’s AGM, Puri also said it aims to optimise shareholder value while addressing concerns over underperformance of ITC’s stock price. Shareholders used the AGM to raise the issue of demerger of hotel as well as the listing of ITC Infotech as part of an organisational restructuring.
“We had said last year that we will look at an alternative structure, which we are reiterating this time. We accept that given the situation faced by the hotel industry, it is not the right time to do it. We will have to wait for the recovery,” Puri said.
Puri said hotel segment is worst hit though it has made some recovery, becoming cashpositive in the second half of the previous fiscal. According to him, the situation gives an opportunity to look at alternative revenue streams as well. “We are also looking at how to bring in operational efficiencies. And these are happening. Our asset-light model will help us grow faster and optimise capital intensity,” he said.
On ITC Infotech, wholly owned subsidiary of ITC, Puri said the company is making good progress and it would let the company grow this business. “And, from time-totime, these (listing) things get evaluated and when it is felt it is the right thing to do, it will be pursued.”
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