ITC

- Source link: (https://tinyurl.com/2zces3b6)

- Note: Reuters has not verified this story and does not vouch for its accuracy

(Bengaluru newsroom)

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Updates shares in paragraph 2, adds new quotes

Sept 4 (Reuters) - India late on Wednesday announced tax cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand, and simplified its complicated goods and services tax structure to two rate slabs from four, with some exceptions for luxury and "sin" goods.

The benchmark BSE Sensex .BSESN and Nifty 50 .NSEI rose as much 1.1% on Thursday. By 11:55 IST, they pared some gains and were up about 0.5% each.

Here is how the industry has reacted so far:

ANISH SHAH, GROUP CEO & MD, MAHINDRA GROUP

"The next-generation GST reforms... mark a defining moment in India's journey towards building a simpler, fairer, and more inclusive tax system.

"At Mahindra, we view these reforms as transformative. They simplify compliance, expand affordability, and energise consumption, while enabling industry to invest with greater confidence."

SAURABH AGARWAL, PARTNER & AUTOMOTIVE TAX LEADER, EY INDIA

"The rationalization of GST rates on automotive vehicles and parts is a truly welcome and significant development. By making vehicles more affordable across all segments, this move will not only boost consumer spending but also simplify complex classification disputes that have long burdened the industry."

SAMIR SHAH, EXECUTIVE DIRECTOR & CFO, HDFC ERGO GENERAL INSURANCE COMPANY

"The GST Council decision to exempt individual health insurance from GST is a welcome development. This move aligns perfectly with the broader ambition of the regulator of 'Insurance for All by 2047,' providing a tangible step forward in that direction.

"While it is anticipated that there will be lowering of the premiums due to lowering of the taxes, we are yet to understand the extent of this reduction as this will also depend upon availability of the input tax credit, which will become clearer over the coming days."

NILESH SHAH, MANAGING DIRECTOR, KOTAK MAHINDRA ASSET MANAGEMENT CO

"The GST announcement lowers inflation, increases growth, boosts consumer sentiment, doesn't disturb the path of fiscal consolidation, improves ease of doing business and partially offers adverse effects of tariffs."

SHAILESH CHANDRA, PRESIDENT, SOCIETY OF INDIAN AUTOMOBILE MANUFACTURES

"This timely move is set to bring renewed cheer to consumers and inject fresh momentum into the Indian automotive sector. Making vehicles more affordable, particularly in the entry-level segment, these announcements will significantly benefit first-time buyers and middle-income families, enabling broader access to personal mobility."

C S VIGNESHWAR, PRESIDENT, FEDERATION OF AUTOMOBILE DEALERS ASSOCIATIONS

"The 56th GST Council meeting marks a watershed moment for India's automobile retail industry. This is a decisive step that will boost affordability, spur demand, and make India's mobility ecosystem stronger and more inclusive.

"One area that may need earliest clarification is about levy and treatment of cess balances currently lying in dealers' books, so that there is no ambiguity during transition."

SANJEEV ASTHANA, CEO, PATANJALI FOODS LIMITED

"At Patanjali Foods, we are fully committed to passing on these benefits to our consumers. This initiative will not only enhance FMCG penetration across urban and rural India but also act as a catalyst for broader economic revival by lifting consumption and supporting allied sectors.

"Our categories such as ghee, soaps, biscuits, noodles, honey, and chyawanprash will benefit from this reduction."

RADHIKA RAO, SENIOR ECONOMIST AT DBS BANK

"Lower GST rates will be positive for growth in the second half of the year and FY27, besides improving operational efficiency and expanding the size of the formal economy."

SHRIPAL SHAH, MD & CEO, KOTAK SECURITIES

"The GST rate cuts come at the right time which is just ahead of the festive season and against the backdrop of U.S. tariff tiffs. Lower taxes on essentials, FMCG products, autos and cement will leave consumers with more money in hand.

"This should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings. It also carries the potential to ease inflation. The key will be how quickly companies pass on the benefits to customers."

DEVARSH VAKIL, HEAD OF PRIME RESEARCH, HDFC SECURITIES

"The GST reforms represent a paradigm shift toward economic rationality, with rate reductions on essentials like dairy, medicines, and food directly benefiting consumers due to their inelastic nature.

"Combined with RBI rate cuts, FY26 income tax rebates, and moderating inflation, these reforms create multiple stimuli for consumption and economic growth."

SUDARSHAN VENU, CHAIRMAN, TVS MOTOR COMPANY

"The GST tax cuts are a major move by the government to further turbocharge growth. For our industry especially, it’s a welcome move as it will help two wheelers become more accessible and also help those looking to upgrade."

NEERAJ AKHOURY, PRESIDENT, CEMENT MANUFACTURERS' ASSOCIATION AND MANAGING DIRECTOR, SHREE CEMENT

"Bringing GST down to 18% corrects a long-standing anomaly, aligns cement with other core building materials, and enhances global competitiveness. As a key input for infrastructure and housing, fairer taxation is expected to boost consumption and support projects from affordable housing to large-scale infrastructure."

NITIN RAO, CEO, INCRED WEALTH

"History has shown that such measures add significantly to GDP growth and a repeat is expected.

"Positive this will play out, though a small concern remains wherein recent measures like the rate cuts + budgetary measures taken on reduced taxes have not created necessary consumption boosters. We will have to wait and see if this welcome third step reverses the consumption trend or there is a deeper problem around availability of money with consumers."

RAHUL SINGH, CIO-EQUITIES, TATA ASSET MANAGEMENT

"The GST rate rationalisation, following the income tax cuts and lower interest rates, is a serious effort to boost consumption and hence the overall economic growth outlook.

"This coupled with certain process reforms is also positive for SMEs (small and medium enterprises). While the direct beneficiaries include consumer, autos, cement, healthcare and insurance sectors, the second order beneficiaries in terms of growth will be retail banks & NBFCs (non-bank financial companies)."

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

"By lowering input costs for farmers, simplifying compliance for MSMEs (micro, small and medium enterprises), and enabling small sellers, artisans/weavers and smallholder farmers to seamlessly join e-commerce across states, these reforms will further strengthen India's growth engine.

"Timely implementation of these reforms ahead of the upcoming festival season will surely give a huge boost to consumption across categories, widen market access, and accelerate our collective journey towards a Viksit Bharat."

SHEETAL ARORA, CEO, MANKIND PHARMA

"The GST revisions go beyond tax rationalization, they represent a structural shift in how India is enabling healthcare access. By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signaled that affordability and innovation can go hand in hand."

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

"The recent GST rationalization reflects the government’s commitment to India’s clean energy transition. The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets. It also sends a strong signal to investors, improving the financial viability and attractiveness of the renewable energy sector."

(Reporting by Chandini Monnappa, Bharath Rajeswaran, Manvi Pant, Kashish Tandon, Meenakshi Maidas, Nandan Mandayam, Yagnoseni Das, Vivek Kumar M and Hritam Mukherjee in Bengaluru; Editing by Mrigank Dhaniwala and Nivedita Bhattacharjee)

(([email protected]; https://www.linkedin.com/in/chandini-monnappa-8a37b013b/;))

** Jefferies says India's overall tax burden on cigarettes may not change, which would be a relief for ITC ITC.NS

** India's GST Council is set to meet on September 3-4 to decide on tax cuts across several categories

** Cigarettes make up about 40% of revenue of diversified conglomerate ITC

** Brokerage says while overall tax burden on cigarettes may not change for ITC, there is a possibility that the salience/mix of ad valorem or specific cess may change

** Maintains "buy" rating on ITC but expects stock to be rangebound "until there is clarity on the revised tax regulations" - Jefferies

** Keeps PT at 535 rupees, ~32% higher than current price

** Avg rating of 37 analysts is "buy", median PT is 496 rupees, ~22% higher than current price - data compiled by LSEG

** YTD, ITC down ~11%

(Reporting by Anuran Sadhu in Bengaluru)

(([email protected]; +91 8697274436;))

** Indian conglomerate ITC ITC.NS reported a beat first-quarter profit view on Friday, led by higher sales of cigarettes and packaged food, particularly in rural areas

** Shares trading 0.7% higher, top gainer on FMCG index .NIFTYFMCG which is trading flat

CIGARETTE VOLUME STRONG; PROFIT IMPACTED BY COMPETITON

** Citi ("Buy", PT: 500 rupees) says it sees continued stead volume growth in cigarettes business but intensifying competition and high-cost leaf tobacco could keep margins under pressure in near-term

** Jefferies ("Buy", PT: 535 rupees) says while ITC's cigarette volumes rose to a multi-quarter high, margins continued to trend down

** Brokerage adds high-cost lead tobacco inventory, along with weak pricing growth due to stiff competition, remains a concern

** HSBC ("Buy", PT: 510 rupees) says the cigarette business remained steady during Q1, with other segments being muted

** Brokerage pares FY26-28 EPS estimates by 2-3%, factoring in lower margins in ITC's business segments

(Reporting by Kashish Tandon in Bengaluru)

((kashish.tandon[email protected]; Mobile: +91 8800437922))

Adds ITC comments in paragraphs 3 and 10, segment details in paragraph 8, background in paragraph 9

Aug 1 (Reuters) - Indian conglomerate ITC ITC.NS reported a slightly better-than-expected first-quarter profit on Friday, buoyed by higher sales of cigarettes and packaged food, particularly in rural areas.

A recovery in rural demand, which started two years ago, has cushioned the impact of sluggish urban sales.

"Rural demand continued to demonstrate resilience," ITC said in a statement, adding it is also seeing early signs of revival in consumer goods demand in urban areas as inflation has eased in recent months.

ITC has been steadily expanding its rural presence over the last three years, growing its network of local distributors by nearly 40%.

Its standalone profit stood at 49.12 billion rupees ($561.7 million) for the quarter ended June 30, marginally lower than the 49.18 billion rupees reported a year earlier. This was just above analysts' estimate of 49.1 billion rupees, according to data compiled by LSEG.

Revenue from its cigarettes division, its largest, grew 8% although ITC did not disclose volume growth. Its other consumer goods business grew 5%, supported by steady demand for packaged food such as Sunfeast biscuits and cakes and Aashirvaad wheat flour.

ITC also said it raised prices across key products to offset rising raw material costs, including edible oil, wheat, and cocoa, but did not disclose the extent of the hikes.

These factors, coupled with a 39% jump in revenue in its agri busines, boosted its topline by nearly 20% year-on-year to 210.59 billion rupees.

On Thursday, ITC peer and Dove soapmaker Hindustan Unilever HLL.NS, the Indian unit of UK's Unilever ULVR.L, reported an 8% increase in quarterly profit, driven by an ongoing recovery in rural sales.

ITC also pointed to better quarters ahead for India's consumer goods sector, betting on easing inflation, lower interest rates, and personal income tax cuts to bolster growth.

ITC's shares, down roughly a tenth this year, closed 1.1% higher ahead of its results.

($1 = 87.4520 Indian rupees)

(Reporting by Praveen Paramasivam, Ananta Agarwal and Chandini Monnappa in Bengaluru; Editing by Sonia Cheema)

(([email protected];))

July 2 (Reuters) - A shareholder in India's Nykaa FSNE.NS, Hong Kong-based investor Harindarpal Singh Banga and his family, plan to sell stake worth 12.84 billion rupees ($149.93 million) in the beauty products retailer through a block deal, news portal NDTV Profit reported on Wednesday.

The sale will likely be at a 4% discount to Nykaa's current market price, the report said, citing people aware of the development.

Nykaa's shares closed 2.2% higher at 211.59 rupees. The company did not immediately respond to a Reuters request for comment.

Banga, who invested in Nykaa before it went public, owned 4.97% stake in the company as of March 2025, exchange data showed. He pared some of his stake in August last year, selling 40.9 million shares via a bulk deal.

The Indian market logged $5.5 billion worth of secondary market sales by large shareholders of listed companies last month, according to LSEG data. These include Reliance Industries' RELI.NS stake sale in Asian Paints ASPN.NS and British American Tobacco's $1.5 billion stake sale in ITC ITC.NS.

($1 = 85.6420 Indian rupees)

(Reporting by Manvi Pant; Editing by Janane Venkatraman)

(([email protected]; +918447554364;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Updates to add graphic.

By Shritama Bose

MUMBAI, June 27 (Reuters Breakingviews) - What’s good for Indian tycoons is not always good for India. Dutch paint maker AkzoNobel AKZO.AS is selling a controlling stake in its local unit to the domestic JSW Group. The deal fits into its goal to focus its global portfolio amid a hypercompetitive market – but it also deepens India’s capital outflow woes.

The $12 billion maker of the Dulux paint brand on Friday said it would offload up to a 75% stake in Akzo Nobel India to privately held JSW Paints for $1.1 billion. It will retain full control over its local powder coatings business and research unit. The proceeds from the sale will be used to cut debt and buy back shares of the parent.

The transaction comes at an opportune time for AkzoNobel, which decided last October to concentrate on coatings in key geographies. It eases the company away from a market shaken up by the entry last year of local tycoon KM Birla’s Grasim Industries GRAS.NS, whose discounts to grab market share are hurting the margins of incumbents. It makes financial sense too, valuing Akzo Nobel India at 22 times EBITDA, more than twice the multiple at which the parent’s Amsterdam-listed shares trade.

Inspired by these sorts of punchy valuations, multinationals in India have been paring stakes in local units. British American Tobacco BATS.L sold shares in ITC ITC.NS to raise $1.5 billion last month, and U.S. appliance maker Whirlpool WHR.N plans to slash its stake in its Indian business to 20% from 51%. Less benign reasons underpin other transactions. Germany’s Siemens sold 90% in its loss-making wind turbine division to TPG amidst cutthroat competition. Swiss drugmaker Novartis is looking for a buyer for its Indian operations, which it says are relatively small compared to other geographies.

The slate of assets on offer bodes well for Indian founders looking to grow through acquisitions. But it undermines India’s vaunted position as a haven for global capital. Net foreign direct investment during the eight months to the end of November 2024 dropped to $500 million from $8.5 billion in the same period of 2023, per data from the Reserve Bank of India. Blame it on repatriations by global firms, which stood at $44.5 billion for the 12 months ended March 2024, having risen every year since March 2020.

Strong valuations aren’t exactly bad news. But if they wind up making India look less of a magnet for global capital, they’re not uniformly good news either.

Follow Shritama Bose on Linkedin and X.

CONTEXT NEWS

Dutch paint manufacturer AkzoNobel on June 27 said it had signed an agreement to sell up to a 75% stake in its Indian unit to privately held JSW Paints. The transaction is based on a total enterprise value of approximately 1.4 billion euros ($1.64 billion) and includes AkzoNobel’s liquid paints and coatings business in India.

The Amsterdam-listed company expects the net cash proceeds to be approximately 900 million euros, of which around 500 million euros will be used for deleveraging. AkzoNobel intends to launch a 400 million euro share buyback programme after the deal is closed.

“This divestment is a first step in the strategic portfolio review announced in October 2024, aimed at focusing the company’s capital and capabilities on leading positions in key global coatings markets,” AkzoNobel said.

Akzo Nobel India shares were up 8.2% as of 0852 GMT on June 27. AkzoNobel group shares were up 0.2%.

(Editing by George Hay; Production by Oliver Taslic)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

June 13 (Reuters) - ITC Ltd ITC.NS:

• ITC LTD - BUYS ENTIRE SHARE CAPITAL OF SRESTA NATURAL BIOPRODUCTS

• ITC LTD - ACQUISITION MADE FOR 4 BILLION RUPEES CASH-FREE DEBT-FREE

• ITC LTD - ADDITIONAL CONSIDERATION OF UP TO 725 MILLION RUPEES PAYABLE IN 24 MONTHS

Source text: ID:nNSE7Kzyn6

Further company coverage: ITC.NS

(([email protected];))

May 28 (Reuters) - Britain's FTSE 100 .FTSE index is seen opening flat on Wednesday, with futures FFIc1 down 0.02%.

* BRITISH AMERICAN TOBACCO: British American Tobacco BATS.L said on Tuesday it intends to sell a 2.3% stake in Indian consumer goods company ITC ITC.NS worth about $1.4 billion in a block trade deal.

* RIO TINTO: the U.S. Supreme Court gave a boost on Tuesday to plans for one of the world's largest copper mines, as the justices declined to hear a Native American group's bid based on religious rights to block Rio Tinto RIO.L and BHP BHP.AX from gaining control of land in Arizona long used for Apache sacred rituals.

* UNILEVER: Unilever ULVR.L has agreed to guarantee its ice cream workers' employment terms in Europe and Britain for at least three years after the business' spin-off, according to a memo, tripling the usual period in such deals.

* OIL: Oil prices inched up as the U.S. barred Chevron CVX.N from exporting crude from Venezuela under a new asset authorisation, though expectations of more output from OPEC+ continued to limit gains.

* METALS: Copper prices in London were stable, supported by improved risk appetite across financial markets following U.S. President Donald Trump's latest tariff respite, though a firm dollar kept gains in check.

* FTSE 100: The UK blue-chip index .FTSE closed up 0.7% on Tuesday in broad-based gains as investors cheered U.S. President Donald Trump's delayed tariffs on European Union imports.

* UK CORPORATE DIARY:

* For more on the factors affecting European stocks, please click on: LIVE/

TODAY'S UK PAPERS
> Financial Times PRESS/FT
> Other business headlines PRESS/GB

(Reporting by Ankita Bora in Bengaluru)

(([email protected]))

May 27 (Reuters) - British American Tobacco PLC BATS.L:

• BRITISH AMER.TOBACCO - RESPONSE TO RECENT SPECULATION

• BRITISH AMERICAN TOBACCO PLC - BAT EVALUATING POSSIBLE DISPOSAL OF PART OF ITC SHAREHOLDING

• BRITISH AMERICAN TOBACCO PLC - BAT CONSIDERING ON-MARKET TRADE FOR ITC SHAREHOLDING

Source text: ID:nRSa2692Ka

Further company coverage: BATS.L

(([email protected];))

** ITC ITC.NS reports higher Q4 profit on cigarettes business growth, rural market strength

** Stock up 1.2% to 431 rupees

** Of 37 analysts covering stock, at least seven cut PTs post results, three downgraded stock and five upgraded, per data compiled by LSEG

PRESSURES HAVE PEAKED, UPWARDS FROM HERE

** JP Morgan ("overweight"; PT 475 rupees): Q4 core profit in line with brokerage's estimate; better-than-expected cigarette sales volume growth

** Goldman Sachs ("buy"): Cigarette sales growth "steady"; margin pressure across cigarettes and FMCG "has peaked"

** BofA Securities ("buy", PT 470 rupees): Expects reversal of inflation trends in FMCG, cyclical downturn in paper segment over next 2-3 months to drive better earnings growth

** Investec ("buy", cuts PT to 493 rupees from 498 rupees): Expects ITC to get back to double digit earnings growth in FY26 with sequential improvement across segments

** Sees lower margins in FMCG, cigarettes, but risk reward is favorable

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

May 22 (Reuters) - Indian consumer goods major ITC ITC.NS reported a rise in fourth-quarter profit on Thursday, benefiting from resilient rural demand.

The maker of "Yippee" instant noodles and "Gold Flake" cigarettes reported a standalone profit before tax and exceptional items of 64.17 billion Indian rupees ($746.48 million) for the quarter ended March 31, compared with 62.88 billion rupees a year earlier.

(Reporting by Ananta Agarwal and Shivani Tanna in Bengaluru; Editing by Shilpi Majumdar)

(([email protected]))

May 8 (Reuters) - India's consumer goods sector reported an 11% growth in value in the March quarter, as rural growth outpaced that in urban areas for the fifth straight quarter, market research firm NielsenIQ said on Thursday.

Rural areas - which account for just over a third of overall consumer goods sales - have become a bright spot for an industry that is struggling with higher living costs and slow wage growth in large cities.

"Rural markets continue to drive growth, whereas urban metros continue to see a shift toward E-commerce," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said.

Although rural consumption growth slowed in the March quarter, with volumes rising 8.4% compared to 9.2% in the previous three months, it still outpaced urban demand, where growth decelerated to 2.6% from 4.2%.

Price increases also contributed to the overall value growth, with the cost of staples such as edible oil rising 5.6% during the quarter, compared with just 0.3% in the same period a year ago.

Low base, rural growth, and easing inflation are helping smaller players, which saw 17.8% growth in value, outpacing the broader FMCG market, the report said.

Indian consumer goods maker Marico MRCO.NS reported fourth-quarter profit above analysts' expectations, boosted by improving rural demand and price increases for its key packaged oil brands—underscoring the strength of non-urban markets.

The company also said it plans to expand its presence in villages across India.

Smaller manufacturers are driving consumption compared to larger players, whose volume growth has halved compared to the December quarter, NielsenIQ said.

Hindustan Unilever HLL.NS and Nestle India NEST.NS reported weaker fourth-quarter profits, with Hindustan Unilever cutting its margin forecast amid high commodity costs and sluggish urban demand.

Going ahead, NielsenIQ said revised tax slabs and a favorable monsoon forecast could further lift consumption in the coming quarters.

(Reporting by Ashish Chandra in Bengaluru; Editing by Sonia Cheema)

(([email protected]; +91 7982114624;))

** Shares of Aditya Birla Real Estate AITE.NS rise 2.3% to 2,002 rupees

** ITC ITC.NS signs agreement to acquire co's the pulp and paper business for up to 35 bln rupees ($409.5 mln)

** Brokerage Antique says the sale is positive for co as it will bring fresh capital, simplify structure, and boost high-growth areas

** With steady revenue and no long-term debt, the paper business lacks growth as it undertakes only maintenance capex, brokerage says

** Reiterates 'buy' rating on AITE with a Street-high PT of 3,448 rupees; says it remains positive on co's growth prospects in the medium to long term, stock is its top pick

** Avg rating is a "strong buy" and median PT is 2,992.50 rupees - LSEG

** AITE is down ~22% YTD, while ITC is down about 10%

($1 = 85.4770 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru)

(([email protected];))

March 31 (Reuters) - Indian conglomerate ITC ITC.NS said on Monday it would acquire the pulp and paper business of Aditya Birla Real Estate AITE.NS for up to 35 billion rupees ($409.7 million).

The acquisition will add 480,000 metric tonnes per year of capacity to ITC's paperboards and specialty papers business, the company said.

The deal comes as ITC's paperboards, paper, and packaging segment faces headwinds from low-priced Chinese and Indonesian supplies in global markets, weak domestic demand and an unprecedented surge in wood prices.

"The acquisition will strengthen the market standing of ITC's paperboards and specialty papers business and engender new opportunities in the domestic and international markets," said B Sumant, ITC executive director.

ITC, which already produces over 1 million metric tonnes per year, said the transaction is expected to close in about six months, subject to regulatory approvals including clearance from the Competition Commission of India and the transfer of land leases.

($1 = 85.4380 Indian rupees)

(Reporting by Yagnoseni Das in Bengaluru; Editing by Maju Samuel)

(([email protected];))

** Shares of consumer goods maker ITC ITC.NS down 2.52% to 430 rupees

** Co's mainstay cigarette business sees robust Q3 sales but margins contract by 270 bps on leaf tobacco inflation

** Core profit margin in FMCG segment contracts 240 bps on steep raw material inflation, despite volume growth of around 4%

** "The competitive intensity continues to remain high in certain categories such as noodles, snacks, biscuits" - Antique Stock Broking

** Paperboard segment performance impacted by low-priced Chinese supplies

** Stock rated 'buy' on avg by 35 analysts, with median PT at 530 rupees - LSEG

** Session's decline trims ITC's 12 month gain to about 5%

(Reporting by Ananta Agarwal in Bengaluru)

(([email protected]))

Feb 6 (Reuters) - Solid demand in rural areas, as well as higher prices of staples including edible oil and wheat flour, helped the consumer goods sector report a 10.6% sales growth in the December quarter, market researcher NielsenIQ said on Thursday.

India's rural areas - which account for just over a third of consumer goods sales - have proven a bright spot for an industry struggling with an inflation-led spending slowdown in large cities.

"Rural markets (continued) to lead the charge, outpacing urban consumption (during the December quarter)," Roosevelt Dsouza, head of customer success for consumer goods at NielsenIQ, said in a statement.

Sales volume jumped 9.9% in rural areas in the December quarter, up from 5.7% in the previous quarter - double the 5% increase in urban centers, NielsenIQ said. But it added urban pockets also improved from the September quarter's 2.6% growth.

Rural areas have outperformed urban locations for the last four quarters, benefiting from income support schemes rolled out by several Indian states, while slowing salary increases in cities have squeezed consumer spending.

In the October-December quarter, overall volume rose by 7.1% - the highest in over a year - driven by demand for laundry products and edible oil, even as prices rose by 3.3%, according to NielsenIQ.

Dabur India DABU.NS and Hindustan Unilever HLL.NS reported a higher December-quarter profit on recovering rural demand.

However, large consumer goods makers, with topline exceeding 50 billion rupees ($571.2 million) are also facing stiff competition from smaller rivals, whose sales increased roughly twice as fast during the festive quarter, NielsenIQ said.

Consumer goods makers have also raised product prices to counter price increases in commodities such as copra and cocoa, with cooking oil maker Adani Wilmar ADAW.NS and Hindustan Unilever warning of further hikes.

Indians also preferred smaller product packs during the quarter, NielsenIQ said, echoing comments from Hindustan Unilever.

($1 = 87.5400 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)

(([email protected]; +91 867-525-3569;))

** Shares of ITC Hotels ITCT.NS down 2.7% in debut trade at 175 rupees vs discovered price of 180 rupees determined in pre-open session

** Consumer goods giant ITC ITC.NS spun off its hotel to focus more on its core cigarettes and food business

** ITC was down 0.4% at 433.75 rupees

** In special trading session earlier this month, ITC's price was adjusted lower to 455.6 rupees to account for spin off

** ITC shareholders got one ITC Hotels share for every 10 ITC shares held

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Ujjaini Dutta

BENGALURU, Jan 10 (Reuters Breakingviews) - Smoking is about to look even less attractive. Shares of India’s ITC ITC.NS, the $65 billion conglomerate backed by British American Tobacco BATS.L, have barely moved since the company announced plans in July 2023 to spin off hotels despite a rally in the emerging market's equities. Now ITC faces the prospect of higher taxes on its core cigarettes business. For boss Sanjiv Puri, the challenges of unlocking value will mount as growth in the economy slows.

His decision to list the hospitality business, which generates about 4% of the group’s revenue, makes sense. Despite the slowdown in consumption, the Indian premium tourism market is growing exponentially. ITC Hotels, whose shares are due to start trading in February, is a luxury specialist with some 140 properties from New Delhi to Colombo.

Indian Hotels IHTL.NS, part of the Tata Group and a direct competitor, trades at 58 times forward earnings. That's more than twice the multiple of ITC, which will share any success because it retains a 40% stake in the unit. In the meantime, separating from its parent will make it easier for the capital-intensive hotel chain to attract investors because many institutional funds shun tobacco stocks.

The fact ITC shares are stuck, however, reflects a threat rather than an opportunity. Last month, a group of ministers mulling a rationalisation of a goods and services tax proposed adding a fifth, higher, slab of 35% for tobacco products as well as aerated beverages, news agency PTI reported, citing an official. The current rate for cigarettes, which generate nearly half of ITC sales, is 28%.

Sin products are an obvious target for officials who want to boost government revenue: ITC's cigarette sales have barely recovered to the level they were at prior to the initial implementation of a nationwide GST in 2017. Companies expected the sheer number of tax slabs to reduce over time, not increase. Worse, Indians are lighting up again in the black market because cigarettes there aren't subject to tax. Those products were harder to come by during the pandemic but supply is easing again.

Puri, in his capacity as president of the influential Confederation of Indian Industry, is calling for lower taxes and a simpler three-tier GST structure to boost consumption. That would help restore some puff to both ITC and the economy.

Follow @ujjainidutta_

CONTEXT NEWS

Shares of ITC Hotels, a unit spun off from Indian tobacco-led conglomerate ITC, are expected to start trading in February.

In December, a group of ministers on the country’s Goods and Services Tax council proposed hiking the tax on sin goods like cigarettes, aerated beverages and tobacco products to 35%, from the current 28%, news agency PTI reported, citing an official.

(Editing by Una Galani and Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on DUTTA/
[email protected]))

Updates to account for new adjusted closing price

** ITC ITC.NS drops 5.4% to 455.60 rupees "discovered" price to adjust for hotels business spin off

** Stock last at about 450 rupees, down little over 1% from adjusted close of 455.60 rupees

** Stock had closed at 481.6 rupees on Friday, in biggest one-day slide since Nov 2024

** Stock fell 26 rupees to discovered price vs ICICI Direct estimate of 12-15 rupees and Centrum Broking's 17 rupees

** FMCG and tobacco major's hotels demerger was effective Jan. 1; shareholders to get ITC Hotels stock in 1:10 ratio

(Reporting by Savio Dsouza)

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Jan 3 (Reuters) - Gujarat Hotels Ltd GHTL.BO:

• ITC TRANSFERS 45.78% STAKE IN CO TO ITC HOTELS

Source text: ID:nBSE4qQT4y

Further company coverage: GHTL.BO

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Dec 30 (Reuters) - ITC Ltd ITC.NS:

• ITC HOTELS SHARES TO BE LISTED WITHIN 60 DAYS FROM DATE OF RECEIPT OF NCLT ORDER

• ITC AND ITC HOTELS TO EXECUTE A TRADEMARKS LICENSE AGREEMENT

Source text: ID:nBSEbJbqGq

Further company coverage: ITC.NS

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** Shares of cigarette-maker ITC ITC.NS climb 1.4% to 471 rupees, among top gainers on FMCG index .NIFTYFMCG which is up 0.8%

** India's finance minister on Saturday said there was no decision by the GST Council on changing rates on some items, including tobacco, against wider market expectations

** Earlier this month, a group of ministers recommended hiking tax on 'sin' goods such as tobacco to 35% from 28%, PTI reported, which the finance ministry was "speculative"

** ITC among 11 stocks on 15-member FMCG index rated "buy" or higher, rest rated "hold" - LSEG data

** Stock climbs 2% YTD vs FMCG index's 2% decline

(Reporting by Kashish Tandon in Bengaluru)

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Dec 18 (Reuters) - ITC Ltd ITC.NS:

• DEMERGER OF HOTELS BUSINESS OF COMPANY - RECORD DATE

• FIX 6TH JAN AS RECORD DATE FOR DETERMINING SHAREHOLDERS TO WHOM SHARES OF ITCHL WOULD BE ALLOTTED

Source text: ID:nBSE7rH0Nr

Further company coverage: ITC.NS

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Dec 17 (Reuters) - ITC Ltd ITC.NS:

• UPDATE ON DEMERGER OF HOTELS BUSINESS OF COMPANY

• RECEIVES NCLT ORDER SANCTIONING SCHEME OF ARRANGEMENT

• APPOINTED AND EFFECTIVE DATE OF SCHEME SET FOR 1ST JANUARY 2025

Source text: ID:nBSE5tXtkV

Further company coverage: ITC.NS

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** Indian cigarette maker ITC ITC.NS up 2.3% at 471 rupees

** ITC among top gainers in Nifty 50 stocks .NSEI and fast moving consumer index .NIFTYFMCG

** No decision taken by Goods and Services Tax Council (GST), chaired by federal finance minister, on imposing 35% GST on cigarettes, country's junior finance minister says

** A group of ministers had proposed 35% GST on cigarettes from present 28%, as per media reports

** ITC up 1.9% YTD vs 3% fall in consumer stocks and ~14% gains in Nifty 50

(Reporting by Sethuraman NR and Nikunj Ohri)

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Nov 29 (Reuters) - ITC Ltd ITC.NS:

• ACQUIRES ENTIRE SHARE CAPITAL OF GREENACRE HOLDINGS

• ACQUISITION OF SHARES OF GREENACRE HOLDINGS

• ACQUIRED ENTIRE SHARE CAPITAL OF GREENACRE HOLDINGS FOR 421 MILLION RUPEES

Source text: ID:nBSE4XXg0H

Further company coverage: ITC.NS

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** ITC ITC.NS rises as much as 4.3%, logging biggest intraday pct gain since July 23

** Stock set to snap seven day losing streak; top gainer on Nifty 50 index .NSEI, which is down 0.6%

** Gold Flake cigarettes maker's profit rose 3% to 50.78 bln rupees ($604 mln), but missed analysts' estimates of 51.14 bln rupees - LSEG

** Emkay Research says growth will likely see acceleration with agri business, which includes tobacco cultivation, back to healthy growth

** Adds co has strong competitive positioning in agri, but near-term margin stress calls for better execution of sales

** Jefferies says cigarette vol growth a relief vs misses seen in peers

** Stock rated "buy" on avg; median PT is 550 rupees vs current price of 492 rupees - LSEG

($1 = 84.0710 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Oct 24 (Reuters) - ITC Ltd ITC.NS:

• ITC Q2 PROFIT 50.78 BILLION RUPEES; IBES PROFIT EST. 51.14 BILLION RUPEES

• ITC Q2 REV FROM OPS 205.37 BLN RUPEES

Source text for Eikon: [ID:]

Further company coverage: ITC.NS

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** Shares of Indian tobacco-to-hotels conglomerate ITC Ltd ITC.NS fall as much as 2.2% to 478.40 rupees

** Over 3 mln shares traded in 7 block deals in the price range of 479.80 - 482.65 rupees/shr - all at discount to co's last closing price of 488.90 rupees, LSEG data shows

** Stock on track to lose for third straight week, fell 1.6% so far this week

** More than 7.3 mln shares traded as of 10:27 a.m. IST, vs their 30-day moving avg of over 12.1 mln shares

** Mean rating of 35 analysts rating the stock is 'buy'; their median PT is 551.50 rupees - LSEG data

** ITC last down 1.7%; gained ~4% YTD so far

(Reporting by Meenakshi Maidas in Bengaluru)

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