ITC

** Shares of ITC ITC.NS rise 4.9% to 325.45 rupees

** Nearly 13 mln shares in ITC traded across 22 block deals on NSE, with 21 deals at premium of 0.6% to 5.4%, LSEG data shows

** Effective Feb 1, India imposed an excise duty on cigarettes in range of 2,050-8,500 rupees ($22.8-$94.5) per thousand sticks based on length of products

** Other Indian cigarette makers Godfrey Phillips India GDFR.NS and VST Industries VSTI.NS up 10.2% and 4.7%, respectively

** In January, ITC, Godfrey Phillips India, and VST Industries dropped 20.1%, 26.3% and 8.9%, respectively

(Reporting by Vijay Malkar)

(([email protected];))

Feb 5 (Reuters) - Indian paper and packaging board maker JK Paper JKPA.NS posted a 58% drop in quarterly profit on Thursday, weighed down by intensifying competition and a one-off charge linked to the country's new labour codes.

JK Paper, which serves clients across sectors including consumer packaged goods and fast food, said consolidated profit after tax came in at 274 million rupees ($3.03 million) for the third quarter ended December 31.

India's paper and packaging sector, which includes firms such as ITC ITC.NS and JK Paper, has also been under pressure for several quarters due to a surge in low-priced imports, forcing local companies to take price cuts at the expense of margins.

The industry has urged the government to curb low-priced imports of paperboards as well as coated and uncoated paper.

JK Paper also booked a one-off charge of 143.6 million rupees linked to the new labour codes, which have shaved millions off corporate earnings in India for the third quarter.

Revenue from operations rose 8% to 17.63 billion rupees for the third quarter.

The New-Delhi-based company supplies a spate of products including office paper, coated paper, writing and printing paper and packaging boards. It has customers in more than 60 countries, such as the United States and Singapore.

"Some improvement is anticipated in the coming quarter due to improved demand and reduction in input costs," Harsh Pati Singhania, chairman and managing director, said in a statement.

Peers Emami Paper Mills EMAP.NS and West Coast Paper Mills WSTC.NS are yet to report their results.

($1 = 90.3450 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru and Praveen Paramasivam in Chennai; Editing by Ronojoy Mazumdar)

(([email protected]; +91 9558725583;))

** ITC ITC.NS down 20.5% so far in January, set for worst monthly performance since April 2000

** Multiple brokerages downgraded stock citing earnings hit from excise duty on cigarettes effective from Feb 1

** Co reported 10% Q3 profit fall on Thursday, on higher raw material costs, one-time labour code charge

** Dolat Capital downgrades ITC to "reduce" from "accumulate"; cuts PT to 330 rupees from 467 rupees

** Says volume and margins in the cigarette business would remain under pressure

** Stock up 0.6% on the day

** Stock rated "hold" on avg by 34 analysts, median PT at 390 rupees - data compiled by LSEG

($1 = 91.8760 Indian rupees)

(Reporting by Brijesh Patel in Bengaluru)

(([email protected]; Ph no. +91 9590227221;))

Adds segment details in paragraph 7 and background in paragraph 9

Jan 29 (Reuters) - Indian consumer goods conglomerate ITC ITC.NS reported a 10% fall in quarterly profit on Thursday, hurt by higher raw material costs and a one-time charge tied to the country's new labour codes.

The company, which also sells instant noodles and other food products, said its standalone quarterly profit fell to 50.89 billion rupees ($553.68 million) for the quarter ended December 31, from 56.38 billion rupees a year ago.

The company took a one-time charge of 2.74 billion rupees tied to the country's new labour codes.

India's new labour codes — the country's biggest overhaul of workers' laws in decades — have dragged profits of corporate firms across sectors, from Godrej Consumer Products GOCP.NS and Mahindra Holidays and Resorts India MAHH.NS to Wipro WIPR.NS and Infosys INFY.NS.

ITC's total expenses, too, rose 5% to 134.72 billion rupees due in part to higher prices of raw materials including edible oil, wheat and leaf tobacco.

Leaf tobacco prices have climbed in recent quarters at a time when export demand has picked up, weighing on ITC's profitability even as cigarette volumes have held up for India's market leader.

Revenue from the cigarettes business, ITC's largest segment, grew 8% in the third quarter. The company's consumer goods segment, which houses popular household brands such as Aashirvaad flour, Sunfeast biscuits and Yippee noodles, grew 11%.

Overall revenue rose 6% to 193.59 billion rupees.

However, ITC faces further pressure as India has imposed excise duty on cigarettes in addition to a 40% goods and services tax in a move that could increase prices of cigarettes for an estimated 100 million smokers in the country.

"Such a steep increase will provide further impetus to illicit trade," ITC said in a statement.

($1 = 91.9130 Indian rupees)

(Reporting by Komal Salecha in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman and Shailesh Kuber)

(([email protected];))

Adds details about recent management changes from paragraph 2 onwards

Jan 16 (Reuters) - India's Grasim Industries GRAS.NS on Friday named Sachin Sahay as the new chief executive of its paints business, Birla Opus.

Sahay's appointment comes more than two months after the textiles and chemicals manufacturer announced former CEO Rakshit Hargave's sudden departure, surprising analysts and stoking worries about the company's future growth path in a sector where competition is intensifying rapidly.

Since its launch in February 2024, Birla Opus has invested heavily in paint factories across India as well as offered hefty discounts, gaining ground mainly at the expense of market leader Asian Paints ASPN.NS.

Sahay, who will take charge of India's second-largest paints maker by capacity from February 16, joins from diversified conglomerate ITC ITC.NS, where he last served as executive vice president of sales.

(Reporting by Hritam Mukherjee and Abhirami G in Bengaluru; Editing by Janane Venkatraman)

(([email protected]; X: @MukherjeeHritam;))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own. Refiles to add hyperlinks.

By Ujjaini Dutta

BENGALURU, Jan 12 (Reuters Breakingviews) - Sometimes smokers are hit with a compelling reason to quit. India imposed fresh taxes on cigarettes last month, knocking as much as 17% off the shares of British American Tobacco BATS.L-backed $47 billion ITC ITC.NS and Godfrey Phillips India GDFR.NS which makes and sells Marlboro cigarettes under license with Philip Morris International PM.N. Foreign ownership limits and a ban on vaping had already dented the appeal of a market with 253 million tobacco users. The latest tax jolt is another nail in the coffin for overseas investment in the country.

Around the world, tobacco majors are shifting their focus to alternative products like e-cigarettes on the expectation that cigarette volumes will continue to decline on health concerns and tougher regulations. India's 2019 ban on e-sticks and heated tobacco products makes such a shift difficult for companies in the world's fifth-largest economy. The new excise duty only worsens the outlook.

Tobacco companies are well used to being slapped with sin taxes when government revenues need patching up. Smokes were already subject to a 40% levy following a rejig of goods and services taxes last year. The latest hike pushes the total tax on cigarettes to about 50%, according to brokerage Motilal Oswal. Analysts responded by revising down ITC's expected cigarette sales 13% lower for the next two full financial years, per S&P Global. Rather than quitting, though, most customers will simply downtrade to illicit smokes available in the black market.

Little wonder that BAT has been paring its stake in ITC, despite its 75% share by units of India's formal cigarette market. It has trimmed its 30% holding down to 23% over the past two years, joining other multinational companies in disposing their highly valued equity interests in the country to raise funds for their global business. Despite the tax hit, ITC trades on a rich 21 times one-year forward earnings, twice BAT's multiple, according to LSEG data. Indian cigarette makers are also less profitable, with ITC's net margin trailing its foreign partner's by four percentage points and Godfrey Phillips' roughly half, per Visible Alpha.

Smoking isn't good for you. India is succeeding in making it undesirable, even for corporations who are addicted to the stuff.

Follow Ujjaini Dutta on LinkedIn and X.

CONTEXT NEWS

India will levy an additional excise duty on cigarettes in the range of 2,050 to 8,500 rupees ($22.8 to $94.5) per 1,000 sticks, depending on length, the finance ministry announced late on December 31. The revised dues will take effect on February 1. The new tax will apply in addition to an existing 40% Goods and Services Tax.

Shares of India’s ITC, the $47 billion conglomerate backed by British American Tobacco, fell as much as 9.7% on January 1, while Godfrey Phillips India, the distributor of Marlboro in the country, dropped 17%.

(Editing by Una Galani and Antony Currie; Production by Aditya Srivastav)

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

** ITC ITC.NS slides 13.4% this week after the Indian government imposed a new tax on cigarettes

** Co's stock logs its worst week since mid-July 2017

** Stock has fallen 13% in the last two sessions since the new tax was announced

** Brokerages turn bearish on ITC shares, see impact to volumes, earnings growth from new tax

** ITC is the biggest loser on blue-chip Nifty 50 .NSEI index that is up 1.1% for the week and hit a new record high on Friday

** While analysts' rating on stock remains "buy" on average, number of "hold" and "sell" ratings hit at least two-year high -data compiled by LSEG

** Stock dropped ~12% in 2025, snapping a four-year winning run

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

Jan 1 (Reuters) - Shares of Indian tobacco companies fell on Thursday after the government imposed a new excise duty on cigarettes, making them costlier for an estimated 100 million smokers in the world's most populous country.

ITC ITC.NS, maker of Gold Flake and the market leader, dropped 2%, while Godfrey Phillips India GDFR.NS, the distributor of Marlboro in India, declined 4.1%.

ITC was the biggest loser on the Nifty 50 index .NSEI and also led declines on the FMCG index .NIFTYFMCG, which was trading 0.6% lower.

The finance ministry late on Wednesday notified an excise duty of 2,050–8,500 rupees ($22.82–$94.60) per 1,000 sticks, depending on cigarette length, effective February 1.

($1 = 89.8510 Indian rupees)

(Reporting by Kashish Tandon in Bengaluru; Editing by Rashmi Aich)

(([email protected]; 8800437922;))

NEW DELHI, Dec 31 (Reuters) - India has imposed an excise duty on cigarettes in a range of 2,050-8,500 rupees ($22.8-$94.5) per thousand sticks based on the length of the products, effective February 1, the finance ministry said in an order late on Wednesday.

(Reporting by Nikunj Ohri, Chris Thomas)

(([email protected]; +91 90284 60730; Reuters Messaging: twitter.com/nikunj_ohri))

Rewrites throughout with stake value, background on ITC Hotels and share price

Dec 4 (Reuters) - British American Tobacco BATS.L plans to offload its stake worth about $776 million in India's ITC Hotels ITCT.NS, the company said on Thursday, as it looks to reduce debt and exit a non-strategic asset.

The maker of Lucky Strike and Dunhill cigarettes said it intends to sell between 7% and its entire 15.3% stake in ITC Hotels through an accelerated bookbuild process.

BAT is the second-biggest shareholder in ITC Hotels, according to LSEG data. It inherited the stake through its shareholding in ITC Ltd ITC.NS, which spun off its hotels business in January.

"A direct stake in ITC Hotels is not a strategic holding for BAT," CEO Tadeu Marroco said in a statement.

BAT's shares rose 1.5% after the announcement, while India-listed ITC Hotels ended the session roughly flat.

The final number of shares sold will be determined to optimise the overall pricing outcome to the group, BAT said in a statement.

Its roughly 15% holding is currently valued at about $776 million, according to a Reuters calculation.

In a bid to cut its leverage, BAT has also been steadily reducing its stake in ITC Ltd ITC.NS. In May, it sold $1.5 billion worth of shares in ITC and $2 billion last year, in two of the biggest block deals in the Asian country.

ITC Hotels competes with EIH EIHO.NS, parent of Oberoi, and Indian Hotels IHTL.NS which owns the Taj brand. Its portfolio spans luxury to mid-scale segments across six brands.

(Reporting by Raechel Thankam Job in Bengaluru; Editing by Shailesh Kuber and Bernadette Baum)

(([email protected];))

Corrects dateline

Oct 30 (Reuters) - Indian consumer goods major ITC ITC.NS posted a better-than-expected second-quarter profit on Thursday, helped by higher sales volumes in its core cigarette business.

The maker of 'Sunfeast' biscuits and 'Gold Flake' cigarettes reported a 5.4% rise in standalone profit of 51.80 billion rupees ($589.34 million) for the quarter ended September 30.

Analysts, on average, had expected a profit of 50.71 billion rupees, according to data compiled by LSEG.

($1 = 87.8950 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru)

(([email protected];))

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

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

(Bengaluru newsroom)

(([email protected]; +91 80 6749 1310;))

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:

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.

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... 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

"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... 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 ... should directly boost demand, help traders and businesses see higher volumes, and may even favourably impact next quarter's earnings... 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... 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

"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."

NITIN RAO, CEO, INCRED WEALTH

" (I am ) positive this will play out, though a small concern remains where recent measures like the rate cuts and budgetary measures taken on reduced taxes have not created the necessary consumption boosters."

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.

"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."

RAJNEESH KUMAR, CHIEF CORPORATE AFFAIRS OFFICER, FLIPKART GROUP

"By lowering input costs for farmers, simplifying compliance for MSMEs 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."

SHEETAL ARORA, CEO, MANKIND PHARMA

"By removing GST on lifesaving rare-disease and oncology therapies and reducing it on essential medicines and diagnostics, the government has signalled that affordability and innovation can go hand in hand."

AMIT PAITHANKAR, CEO OF WAAREE ENERGIES

"The reduction will lower project costs and accelerate the capacity addition needed to meet India’s clean energy targets."

ARNAB BANERJEE, MD & CEO, CEAT

"By addressing a long-standing demand of the industry, the Council has not only provided a boost to the automotive ecosystem but also created room for greater formalisation, compliance, and sustainable growth in the sector."

SHENU AGARWAL, MD & CEO, ASHOK LEYLAND

"The specific relief for the commercial vehicle industry is especially welcome. On one hand, it will spur freight traffic, and on the other, it will bring down the cost of buses and trucks."

AASIF MALBARI, CHIEF FINANCIAL OFFICER, GODREJ CONSUMER PRODUCTS LTD

"This is a positive trigger for demand and a strong driver of volume growth. This move will ultimately contribute to overall economic momentum. We are fully committed to ensuring that the GST rates reduction benefits are passed on to consumers."

VENKATRAM MAMILLAPALLE, MANAGING DIRECTOR, RENAULT INDIA

"We believe the reform will accelerate rural and urban demand alike, boost manufacturing and contribute strongly to India's economic momentum."

UNSOO KIM, MANAGING DIRECTOR, HYUNDAI MOTOR INDIA

"The GST overhaul will directly benefit the automotive sector. The announced reforms align seamlessly with the government's commitment to Viksit Bharat and the Make in India initiative, encouraging domestic manufacturing and boosting demand across both urban and rural markets."

(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))

Corrects to say profit fell, not rose, in paragraph 2

Aug 1 (Reuters) - Indian consumer goods conglomerate ITC ITC.NS reported a slightly better-than-expected first-quarter profit on Friday, buoyed by strong demand in its mainstay cigarettes and consumer goods business.

The company, which also sells instant noodles and other food products, said its standalone quarterly profit fell to 49.12 billion rupees ($561.68 million) for the quarter ended June 30 from 49.18 billion rupees a year earlier.

Analysts, on average, had expected 49.1 billion rupees, according to data compiled by LSEG.

($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 27 (Reuters) -

• BAT TO SELL $1.36 BILLION STAKE IN INDIAN TOBACCO MAKER ITC - BLOOMBERG NEWS

Source text: https://tinyurl.com/yenh4b8d

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)

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** 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)

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** Shares of consumer goods maker ITC ITC.NS fall 1.1% ahead of third-quarter results

** Analysts' on average expect co to post a 7.3% Y/Y drop in Q3 profit at 51.90 billion rupees ($592.9 million) - LSEG data

** Consumer goods giants have been grappling with food inflation and moderation in urban consumption with gradual recovery in rural markets, said analysts at Nirmal Bang

** Rival Nestle India NEST.NS missed Q3 profit view on slowdown in consumer spending, while Hindustan Unilever HLL.NS said it expects near-term margins at lower end of its previous forecast range of 23%-24%

** Analysts covering ITC on avg have a "buy" rating on stock, same as on HLL, while NEST rated "hold" on avg - LSEG

** Stock had shed ~7% in Q3

($1 = 87.5300 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

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Updates with analyst comments, shares and valuations of rivals in paragraphs 5 through 8

By Hritam Mukherjee

Jan 29 (Reuters) - Shares of ITC Hotels ITCT.NS fell in debut trade on Wednesday, following its spin-off from consumer goods firm ITC ITC.NS, valuing the luxury hotels operator at 366.2 billion rupees ($4.23 billion).

The stock fell to as low as 172 rupees, compared to a discovered price of 180 rupees determined during a pre-open trading session. It was last down 2.2% at 176 rupees.

ITC ITC.NS spun off its hotel business into a separately listed firm to focus on its core cigarettes and food business, as the unit is among the conglomerate's smallest by revenue and also capital-intensive.

Shares of the parent firm, which now owns a 40% stake in ITC Hotels, were down 0.8%.

ITC Hotels' listing performance was in line with expectations, but the stock is witnessing selling pressure as it is set to exit key indices such as Nifty 50 .NSEI, Nifty FMCG .NIFTYFMCG and BSE Sensex .BSESN, said Prashanth Tapse, senior vice president of research at Mehta Equities.

Brokerage Jefferies estimated post-listing outflows to the tune of $190 million to $200 million.

Shares of rivals EIH EIHO.NS and Indian Hotels IHTL.NS, which own the "Oberoi" and "Taj" brands respectively, were up roughly 2% each.

ITC Hotels' market valuation is second only to Indian Hotels, which is valued at 1.08 trillion rupees. EIH has a market value of 222.67 billion rupees.

ITC Hotels, with its luxury property offerings, is stepping into the equity market at a time when affluent Indians are splurging on premium products ranging from watches to cars, apartments, and even bathrooms.

It operates more than 140 properties across India, Nepal and Sri Lanka, and offers premium amenities including private swimming pools, jacuzzis, and desert safaris.

India's luxury hotels market is expected to be valued at $4.83 billion by 2030 from $2.99 billion in 2025, estimates from market analytics firm Mordor Intelligence showed.

($1 = 86.5790 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Varun H K)

(([email protected]; X: @MukherjeeHritam;))

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.

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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)

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