ITC

Sept 28 (Reuters) - ITC Ltd ITC.NS:

• ITC - BUYS 13,445 EQUITY SHARES OF SPROUTLIFE FOODS

• ITC - COST OF ACQUISITION OF SPROUTLIFE SHARES IS ABOUT 6.45 BILLION RUPEES

Source text: ID:nBSEccpbZ6

Further company coverage: ITC.NS

(([email protected];))

Sept 11 (Reuters) -

• INDIA TOP COURT ASKS FEDERAL GOVERNMENT TO PROVIDE TIMELINE FOR IMPLEMENTATION OF FOOD WARNING LABELS - ORDER

• INDIA COURT ASKS GOVERNMENT TO EXPLAIN WHY IT IS PROPOSING ONE WARNING LABEL ON FOOD PACKS, AND NOT SEPARATE ONE FOR EACH NUTRIENT OF CONCERN-ORDER

• INDIA COURT ASKS GOVERNMENT TO EXPLAIN WHY IT IS TAKING A TWO-PHASED APPROACH TO IMPLEMENT FOOD WARNING LABELS ON PACKS

Further company coverage: ITC.NS KO.N MDLZ.O NESN.S NEST.NS PEP.O

(([email protected];))

Sept 10 (Reuters) -

• INDIA FOOD INDUSTRY GROUP TELLS SUPREME COURT USING 100 GRAM THRESHOLD FOR FOOD WARNING LABELS WON'T BE APPROPRIATE

• INDIA TOP COURT HEARING WARNING LABELS DEBATE SAYS CONCERNED ABOUT HEALTH OF CITIZENS, ESPECIALLY CHILDREN

• INDIA TOP COURT QUESTIONS FOOD REGULATOR WHY IT IS PROPOSING WARNING LABELS IN TWO PHASES

• INDIA FOOD REGULATOR TELLS TOP COURT IT IS OPEN TO IMPLEMENTING STRICTER WARNING LABELS FROM FIRST PHASE ITSELF

Source text: [ID:]

Further company coverage: NESN.S, NEST.NS, KO.N, PEP.O, ITC.NS, MDLZ.O

(([email protected];))

** IT consulting and services company Happiest Minds' shares HAPP.NS fall as much as 3.87% to 348.65 rupees apiece, a near-two-month low

** Stock slid 10.9% on Tuesday, extending losses after ITC ITC.NS announces plans to merge its unit ITC Infotech with HAPP

** HDFC Securities downgrades HAPP to "Add" from "Buy" and cuts the price target to 400 rupees from 400 rupees

** Deal price implies no takeover premium; the 15-month integration timeline brings uncertainty, plus there is no clarity on the retention plans of the existing management, says HDFC Securities

** While HAPP has fallen since the announcement, ITC ITC.NS has gained about 4.8% in two sessions

** HAPP shares are down 23.4%, and ITC is down 33.5% in 2026 so far, according to exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

(([email protected]; +91 9769003463;))

Updates with closing levels, adds fresh analyst comment

By Mridula Kumar

Sept 1 (Reuters) - India's Happiest Minds HAPP.NS shares fell as much as 12% on Tuesday after Indian conglomerate ITC ITC.NS unveiled plans to merge its unit with the IT services provider, fueling concerns over a prolonged integration.

The deal comes at a time when India's $315 billion IT industry is racing to bulk up capabilities to combat AI-led disruption of the software market.

ITC Infotech India, a wholly owned subsidiary of ITC, will buy 22.1% of Happiest Minds for about $140 million in cash. ITC Infotech would list on the BSE and the NSE after the deal.

The combined entity will set a target of $1 billion in revenue in fiscal year 2028, ITC said in an exchange filing on Monday. Happiest Minds Managing Director Venkatraman Narayanan said the merger would happen by second or third quarter of fiscal 2028.

"All the approvals are going to take a lot of time. There will be uncertainty until the merger and then the listing happens in almost one or one and a half years", Karan Uppal, lead IT analyst at PhillipCapital, said.

"There is no clarity in terms of the leadership post the merger. My sense is that it will mostly be led by ITC Infotech, so there could be some leadership churn which can happen at Happiest Minds."

The acquisition will be subject to approval of the Competition Commission of India.

Shares of Happiest Minds trimmed some losses and closed 10.9% lower at 362.7 rupees. ITC shares closed 4.3% higher at 266.6 rupees.

Morgan Stanley said the deal was small relative to ITC's overall market value, but said it could expand ITC Infotech's presence in the United States, broaden its client base and improve its capabilities.

Sagar Shetty, an ‌analyst at online trading platform StoxBox, said the market reaction appears to be driven by uncertainty over valuation and a lack of clarity on what Happiest Minds shareholders will receive from the merger.

(Reporting by Mridula Kumar in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)

(([email protected]))

The board of ITC Infotech, ITC's wholly owned technology subsidiary, approved the proposed ₹1,330 crore cash acquisition of a 22.106% stake in Happiest Minds Technologies from promoter Ashok Soota and Ashok Soota Medical Research LLP. It also approved a scheme to amalgamate Happiest Minds, under which shareholders would receive 25 ITC Infotech shares for every 81 Happiest Minds shares; ITC was to hold about 73.4% of the resulting listed entity. The proposed purchase was to be funded through a rights issue by ITC Infotech, and the two businesses together had more than 19,000 employees, with FY26 revenue of ₹4,718 crore at ITC Infotech and ₹2,315.11 crore at Happiest Minds. The transaction remained subject to shareholder, stock-exchange, Competition Commission of India and National Company Law Tribunal approvals. ITC operated businesses spanning cigarettes, FMCG, agribusiness and paperboards and packaging, and had no net debt at the close of FY26.

Powered by Tijori

Aug 31 (Reuters) - India's ITC ITC.NS said on Monday its IT arm would acquire a 22.1% stake in IT services provider Happiest Minds Technologies HAPP.NS for about 13.3 billion rupees ($139.76 million).

($1 = 95.1625 Indian rupees)

(Reporting by Urvi Dugar in Bengaluru; Editing by Diti Pujara)

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

By Bharath Rajeswaran

Aug 19 (Reuters) - Robust profit growth for India's Nifty 50 companies has brightened the outlook for domestic markets, but global risk aversion and a strong IPO pipeline could temper a broader rally in the near term, according to Abakkus Investment Managers.

The benchmark Nifty 50 .NSEI and Sensex .BSESN are down 7.9% and 9.8% year-to-date amid crude-driven inflation and a record $25 billion in foreign outflows. In comparison, regional peers, such as South Korea and Taiwan, are up about 50% each.

Abakkus, which manages assets worth $5.2 billion, sees elevated crude prices, rising global yields and volatility in the AI trade as key external risks for Indian equities.

"Domestically, consumer demand and corporate profitability is strong as seen in the better-than-expected Q1 results, but globally, they are not," Aman Chowhan, head of equities of Alternates at Abakkus AMC, told Reuters on Wednesday.

However, Chowhan said that "after a weak first half, India should outperform EM and Asian peers relatively, but its direction will still be dictated by global risk sentiment, with crude and the AI trade likely setting the market's tempo."

Expanding equity supply is another hurdle, with IPOs, qualified institutional placements, and block deals competing for limited capital, Chowhan said.

"Every other day there's an IPO… some promoter selling, some QIP," Chowhan said, adding "fresh issues and institutional placements are siphoning liquidity from secondary markets as investors chase listing gains and growth stories."

After 27 mainboard IPOs raised 225.72 billion rupees ($2.36 billion) in the first half of 2026, a packed August pipeline signals sustained primary market supply in the near term.

Chowhan estimates that 40-50% of capital may, therefore, be absorbed by such offerings, restricting a broader market rally.

Against this backdrop, Abakkus favors leading niche NBFCs and mid-sized banking stocks, citing stronger credit growth.

It also expects foreign investors to return to equities only gradually as years of weak returns in key sectors, such as financials and IT, have made them cautious of increasing their exposure.

($1 = 95.7525 Indian rupees)

(Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia Cheema)

(([email protected]; +91 9769003463;))

Aug 3 (Reuters) - Shares of India's ITC ITC.NS rose 2.6% on Monday after brokerages said better-than-expected cigarette volumes suggested the worst impact of a recent tax hike may be over, with phased price hikes likely to boost profitability in the coming quarters.

ITC, known for consumer goods products and cigarette brands such as Gold Flake and Classic, reported a 27% slump in quarterly profit on Friday to 35.79 billion rupees ($375.24 million).

($1 = 95.3800 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru; Editing by Sherry Jacob-Phillips)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

July 31 (Reuters) - ITC Ltd ITC.NS:

• ITC Q1 PROFIT 35.79 BILLION RUPEES

• ITC Q1 REVENUE FROM OPERATIONS 269.43 BILLION RUPEES

Further company coverage: ITC.NS

(([email protected];;))

** India's ITC ITC.NS posted marginal rise in quarterly adjusted profit, helped by cigarette price hikes that somewhat offset tax and cost pressures

** Shares fall over 1.5% to 303.30 rupees

PRICE HIKES WEIGH ON VOLUMES

** Jefferies ("Hold," PT: 350 rupees) says the "real test" lies in June quarter as the full impact of higher taxes and partial price hikes could hurt volumes, profitability

** Elara ("Accumulate," PT: 335 rupees) says Q4 does not reflect the true volume impact due to tax changes, with Q1FY27 expected to provide clarity on the effect of price hikes

** Macquarie ("Neutral," PT: 330 rupees) sees a sharp hit to profitability in the June quarter before gradual improvement

** Nomura ("Reduce," PT: 300 rupees) says staggered price hikes may not fully offset the tax burden, keeping margins under pressure in the near term

(Reporting by Bipasha Dey in Bengaluru)

(([email protected];))

May 21 (Reuters) - Indian consumer goods major ITC ITC.NS reported a near 74% fall in fourth-quarter profit on Friday, as higher taxes weighed on margins in its core cigarettes business.

The company, which makes Gold Flake cigarettes, reported profit fell to 51.13 billion rupees in the March quarter from 195.62 billion rupees a year earlier.

The company had recorded a one-time gain of 151.79 billion rupees in the year-ago quarter following the demerger of its hotels business.

(Reporting by Surbhi Misra and Devika Nair in Bengaluru; Editing by Janane Venkatraman)

(([email protected] | X: https://twitter.com/SurbhiMisra_ |;))

May 19 (Reuters) - ITC Ltd ITC.NS:

• ITC - SHAREHOLDING IN MOTHER SPARSH BABY CARE HAS INCREASED FROM 39.47% TO 49.32%

Source text: ID:nBSE9vR26b

Further company coverage: ITC.NS

(([email protected];))

May 7 (Reuters) - ITC Ltd ITC.NS:

• ITC - NCLT SANCTIONS AMALGAMATION OF SRESTA AND WIMCO WITH ITC LIMITED

Source text: ID:nBSE2Z4C0D

Further company coverage: ITC.NS

(([email protected];))

Adds comments from trade sources and details on export prices

By Rajendra Jadhav and Mayank Bhardwaj

MUMBAI/NEW DELHI, May 4 (Reuters) - Indian traders have begun exporting wheat for the first time in four years, as ample stocks, higher global prices and firmer freight rates have opened a window for them to make small shipments to buyers in Asia and the Middle East, trade sources said.

Consumer goods conglomerate ITC ITC.NS has started loading 22,000 metric tons of wheat at the western port of Kandla for shipment to the United Arab Emirates, sources said, declining to be identified as they were not authorised to speak to the media.

ITC did not immediately respond to a Reuters request for comment.

India, the world's largest wheat producer after China, has allowed exports of the grain this year, lifting a ban on overseas sales imposed in 2022.

New Delhi extended curbs in 2023 and 2024 after extreme heat shrivelled crops and depleted stocks, pushing domestic prices to record highs and fuelling speculation it might need to import wheat for the first time since 2017.

Last year's favourable weather led to a robust harvest, quashing speculation about imports, helping the government rebuild depleted reserves and giving it the confidence to allow exports.

Earlier this year, Prime Minister Narendra Modi's government allowed traders to export 2.5 million tons of wheat, before permitting another 2.5 million tons late last month for shipments.

Despite the permission to export, lower global prices and higher Indian rates dissuaded traders from signing export deals.

But the Iran conflict has pushed up freight costs and some buyers who need immediate shipments have turned to India, the trade sources said.

The deal to export 22,000 tons of wheat to the United Arab Emirates was signed at around $275 per ton free on board, sources said.

Despite the first export deal in four years, India is unlikely to see a surge in wheat exports, as domestic prices have risen in recent days because of crop damage, making Indian wheat more expensive than rival supplies from Australia or the Black Sea region.

Australian and Black Sea supplies are priced at around $290-$300 per ton, including cost, insurance and freight, leaving Indian wheat at least $20 a ton more expensive in global markets.

Only buyers with immediate supply gaps are likely to turn to Indian wheat, while those with adequate inventories of Australian, Argentine or Black Sea supplies will find it less attractive given its relatively higher prices, the sources said.

Importers with urgent, short-term requirements and seeking shipments within 30-45 days are the most likely to buy Indian wheat, they said.

(Reporting by Rajendra Jadhav and Mayank Bhardwaj; Editing by Clarence Fernandez and Muralikumar Anantharaman)

(([email protected]; Reuters Messaging: x.com/Rajendra1857))

** Shares of ITC ITC.NS up 4% so far this week, on track for biggest weekly percentage gain since July 2024

** Stock trading at 327 rupees on Friday as of 3 p.m. IST, up 0.4%

** Prospects of co hiking cigarette prices to offset impact of excise duty, effective from February 1, lifts shares

** January was ITC's worst month in more than 25 years as stock slid on fears of earnings hit from excise duty impact

** Earlier this week, UBS said ITC's price hikes imminent, expects core earnings to rebound in FY28

** Think valuation has become quite appealing now and a risk

worth taking - UBS

** 35 analysts on average rate the stock "hold", their median PT is 355 rupees - data complied by LSEG

** Stock down 19% YTD

(Reporting by Nishit Navin in Bengaluru)

(([email protected]))

By Aditya Kalra and Emma Rumney

NEW DELHI/LONDON, Feb 11 (Reuters) - India has ruled out relaxation of a ban on e-cigarettes that would have allowed heat-not-burn tobacco products, dealing a blow to a lengthy private lobbying campaign by Philip Morris International for New Delhi to permit such devices.

India banned e-cigarettes, including heated tobacco products, in 2019. With more than 100 billion cigarettes sold annually, it is the seventh-largest cigarette market by volume, where tobacco kills more than a million people a year.

The world's most valuable tobacco firm, Philip Morris PM.N had hoped India could be a key market for its heated tobacco device, IQOS, which the company says is less harmful to health than smoking.

"The government of India is not considering revoking, amending or relaxing this ban," the health ministry said in response to Reuters queries about the lobbying by Philip Morris.

"India remains committed to evidence-based tobacco control and cessation measures," it said in a statement, adding that the law on e-cigarettes explicitly prohibits heat-not-burn devices, and that situation will stay.

A Reuters review of confidential company letters from 2021 to 2025 shows the Marlboro-maker privately lobbied top Indian officials and a parliamentary panel to consider the science behind devices like IQOS, research it and exempt heat-not-burn products from the ban.

Philip Morris executives also met many state government officials in Davos in January to discuss how the company can create long-term value in the tobacco sector, using products such as IQOS, photographs on LinkedIn show.

A spokesperson for Philip Morris did not comment on the ministry's statement, but said it "regularly engages with governments around the world, including at major international forums such as Davos, to discuss how smoke-free products can greatly advance public health."

Reuters is the first to report India's decision and details of Philip Morris' lobbying.

In an interview with Reuters on Friday, Jacek Olczak, the firm's chief executive, said he had engaged with various people in India, adding that it was "illogical" for the market to be closed to smoking alternatives such as heated tobacco and vapes, but not cigarettes.

It is not clear if any other company is lobbying India against the ban on e-cigarettes. Philip Morris says it has a share of 76% of the global market for heated tobacco products.

IQOS BOOM

Philip Morris had a 7.6% share of India's cigarette market in 2024, up from just 1.75% in 2019, Euromonitor estimates.

Its rival, British American Tobacco BATS.L, owns a stake in India's ITC ITC.NS, which dominates the market.

Andrei Andon-Ionita, analyst at Jefferies, said an IQOS launch in India would have given PMI a way to capture a far bigger slice of the market, offering the "next leg of the growth story" for the product as other key markets mature.

Launched in 2014, IQOS has more than 35 million users worldwide and is Philip Morris' flagship smoking alternative, which it says has been a hit in countries like Japan.

Some regulators, such as the U.S. FDA have concluded that IQOS can benefit public health if smokers use it instead of cigarettes, but the World Health Organization has warned of risks posed by heated tobacco.

India's 2019 ban shut the door on many products from companies such as vape maker Juul and Philip Morris.

Olczak said India's decision to ban smoking alternatives ignores science and data showing that smoking rates decline when alternatives are available, however.

LOBBYING PRIVATELY

About 151 billion IQOS units were sold last year in 79 markets.

Philip Morris ran a four-year-long campaign to push Indian officials and a parliamentary panel on health to allow heated tobacco devices, letters show.

In one 2023 letter, Ankur Modi, then its chief strategy officer, asked India to think about tackling smoking-related harm via alternatives, "similar to harm reduction policy for HIV/AIDS", which involves measures such as condom promotion.

The letters also proposed bringing Philip Morris scientists and experts, such as former US FDA officials, to present data and global experience to show how such devices "improve lives".

"PMI is deeply committed to, and invested in the future of lndia," the company said in a November letter to the health secretary, calling for a review of scientific data on heated tobacco products by the Indian Council of Medical Research.

In a statement, state-run ICMR told Reuters it was "not considering or undertaking any research on heated tobacco products".

(Reporting by Aditya Kalra and Emma Rumney; Editing by Clarence Fernandez)

((Email: [email protected]; X: @adityakalra;))

** 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;))

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

• Q3 RESULTS INCLUDE ONE TIME CHARGE OF 2.74 BILLION RUPEES ON NEW LABOUR CODES

Source text: ID:nNSE3KRPFm

Further company coverage: ITC.NS

(([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]))

** At least six brokerages, including JP Morgan and Jefferies, downgrade their ratings on ITC's ITC.NS shares as new tax on cigarettes seen hitting earnings growth and weighing on stock multiples

** Stock tanked 9.7% on Thursday to close at its lowest since April 2023

VALUATION MULTIPLES TO RESET AFTER UNPRECEDENTED TAX HIKE

** JP Morgan (downgrades to "neutral", PT cut to 375 rupees) says tax hike to impact volumes, earnings growth and weigh on stock multiples, restricting upside in stock for next 6 to 9 months

** Jefferies (downgrades to "hold", PT cut to 400 rupees) says ITC may need about 40% price hikes to pass on the impact of tax hike, which will impact volumes

** Motilal Oswal Financial Services (downgrades to "neutral", PT at 400 rupees) says such a sharp tax increase is unprecedented and has surprised the brokerage firm given the backdrop of stable taxes over the last few years

** Nuvama (downgrades to "hold", PT at 415 rupees) says a double-digit tax hike could push consumers towards smuggled cigarettes; adds historically volumes have dropped 3%-9% after sharp hike in taxes

(Reporting by Vivek Kumar M)

(([email protected];))

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;))

Adds background, details from paragraph 2

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.

The move could increase prices of cigarettes for an estimated 100 million smokers in the world's most populous country.

In December, the Indian government approved a new law - the Central Excise (Amendment) Bill 2025 - that replaces a temporary levy on cigarettes and tobacco products.

The excise duty would be imposed on cigarettes in addition to a 40% goods and services tax, the order issued late on Wednesday showed.

Total taxes on cigarettes in India currently make up about 53% of retail prices, well below the World Health Organization benchmark of 75% aimed at discouraging consumption. This includes a 28% goods and services tax and additional value based levy based on the size of the cigarettes.

The higher levies could impact sales of cigarettes manufacturers like ITC ITC.NS and Godfrey Phillips India GDFR.NS.

(Reporting by Nikunj Ohri, Chris Thomas; editing by Diane Craft)

(([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)

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