ITC

Adds details on increased deal size and final price and background

By Scott Murdoch

May 28 (Reuters) - British American Tobacco BATS.L has sold a $1.5 billion stake in Indian consumer goods company ITC ITC.NS at 413 Indian rupees per share, according to a term sheet seen by Reuters.

The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion.

The final sale price represented a 4.8% discount to ITC's closing price of 433.90 rupees on Tuesday.

Shares of ITC dropped nearly 3% to 421.70 rupees on Wednesday. The stock was the top loser on both Nifty 50 .NSEI and the FMCG index .NIFTYFMCG.

BAT will remain ITC's largest shareholder after the deal, according to LSEG data.

Goldman Sachs GS.N and Citigroup C.N led the deal, the term sheet showed.

The deal is the second major block trade in India this week after IndiGo INGL.NS co-founder Rakesh Gangwal sold a 5.7% stake in the low-cost carrier worth $1.36 billion.

BAT said it would increase its 2025 1.1 billion pounds ($1.49 billion) share buyback programme by 200 million pounds as a result of the deal, which is not expected to have any other impact on its annual outlook.

The London-listed cigarette maker had last year sold 436.9 million shares, or roughly 3.5% of ITC's outstanding shares, for about $2 billion in what was India's third-largest block deal ever.

The British firm in February forecast 1% growth in its annual revenue, citing tax headwinds in key markets such as Bangladesh and Australia.

($1 = 0.7401 pounds)

(Reporting by Scott Murdoch in Sydney; additional reporting Kashish Tandon, Prerna Bedi and Raechel Thankam Job in Bengaluru; Editing by Leroy Leo, Stephen Coates and Sherry Jacob-Phillips)

(([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) - ITC Ltd ITC.NS:

• ITC - ITC TO ACQUIRE PRASUMA

• ITC - ACQUISITION OF SHARES OF AMPLE FOODS PRIVATE LIMITED AND MEAT AND SPICE

• ITC - INITIAL INVESTMENT OF 1.31 BILLION RUPEES FOR 43.8% STAKE

• ITC - SECONDARY PURCHASES OF 560 MILLION RUPEES TO BE MADE TAKING CO’S STAKE TO 62.5%

Source text: ID:nNSE3Nl81H

Further company coverage: ITC.NS

(([email protected];))

Jan 29 (Reuters) - Shares of ITC Hotels ITCT.NS fell 2.7% in debut trade on Wednesday, following its demerger from consumer goods firm ITC ITC.NS.

The stock slipped to 175 rupees on the National Stock Exchange, compared to a discovered price of 180 rupees determined during a pre-open trading session.

ITC ITC.NS had in July 2023 decided to spin off its hotel business into a separately listed firm to focus on its core cigarettes and food business.

(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.

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)

(([email protected];))

** ITC ITC.NS ends 1.52% lower, biggest one-day slide since Nov. 21, 2024

** ITC futures and options contracts expire on Friday, ahead of share split on Jan. 6 for spun-off hotels business

** FMCG and tobacco major's hotels demerger was effective Jan. 1; shareholders to get one ITC Hotels share for every 10 ITC shares held as of Jan. 6 record date

** Indian exchanges to hold special pre-open call auction on Jan. 6 to determine fair price

** ITC closed at 481.6 rupees on Friday

** ICICI Direct estimates 12-15 rupees adjustment for split, while Centrum Broking estimates 17 rupees adjustment

** ITC Hotels expected to list in February; ITC to hold 40% stake

(Reporting by Savio Dsouza)

(([email protected];))

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

(([email protected];;))

** 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)

(([email protected]))

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

• ITC - ACQUISITION OF SHARES OF EIH LIMITED AND HLV LIMITED

• ITC LTD - ACQUIRES 2.44% OF EIH AND 0.53% OF HLV

Source text: ID:nBSE987kfX

Further company coverage: ITC.NS

(([email protected];))

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

(([email protected];))

** 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)

(([email protected]; (+91 9945291420); Reuters Messaging: [email protected]))

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

(([email protected];;))

** 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)

(([email protected] ; ( +91 8078332441))

Oct 24 (Reuters) - ITC ITC.NS missed second-quarter profit estimates on Thursday, as the Indian tobacco-to-hotels conglomerate incurred higher expenses amid a slowdown in urban markets.

The Gold Flake cigarettes and Sunfeast biscuits maker reported a profit of 50.78 billion rupees ($604.17 million) for the quarter ended Sept. 30, compared with 49.17 billion rupees a year earlier.

Analysts, on average, had projected a profit of 51.14 billion rupees, according to data compiled by LSEG.

($1 = 84.0490 Indian rupees)

(Reporting by Praveen Paramasivam; Editing by Mrigank Dhaniwala)

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

** 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)

(([email protected];))

Aug 8 (Reuters) - Indian consumer products' sales slowed sharply to a more-than-one-year low from April to June due to softening demand for personal care products and packaged wheat flour, especially in urban areas, market researcher NielsenIQ said on Thursday.

The overall sales volume growth slowed to 3.8% in the second quarter, compared with growth rates of 6.4% to 8.6% in the past four quarters, "largely due to macroeconomic headwinds," NielsenIQ said, without detailing the factors.

India's retail inflation hovered around 5% in the quarter, mostly due to high food prices, forcing consumers in the world's most populous country to cut back wherever possible to make ends meet.

The sales volume growth in rural areas slowed to 5.2%, from 7.6% in the previous quarter, but fared better than urban markets, where growth slowed even more sharply to 2.8% from 5.7%.

The growth in rural pockets outpaced urban areas for the first time in five quarters in the January-March period as consumer majors including Dove-soapmaker Hindustan Unilever HLL.NS trimmed prices to win back consumers.

In the coming quarters, packaged goods makers including rural-centric Dabur India DABU.NS and Emami EMAM.NS expect a further boost, helped by better monsoon and higher government spending, which usually translate to higher consumer spending.

"The timely arrival of monsoon, coupled with a rural-centric budget with a focus on rural infrastructure, agriculture and employment is a key positive for the sector," Dabur CEO Mohit Malhotra said on an earnings call earlier this month.

The likes of Maggi instant noodles-maker Nestle India NEST.NS and biscuits-manufacturer Britannia Industries BRIT.NS are also betting on rural recovery by making their products available at more stores.

For the June quarter, though, consumer goods makers have posted mixed results.

Urban-centric Nestle India reported its slowest growth in eight years as price increases drove consumers away, while more rural-focussed Hindustan Unilever reported higher earnings as price cuts boosted demand.

(Reporting by Praveen Paramasivam; Editing by Savio D'Souza)

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

BENGALURU, Aug 1 (Reuters) - Indian tobacco-to-hotels conglomerate ITC ITC.NS reported quarterly profit below market expectations on Thursday, as large consumer brands face increasing pressure from consumers shunning them for cheaper alternatives.

The Sunfeast biscuits maker posted a profit of 49.17 billion rupees ($587.4 million) for the first quarter ended June 30, from 49.02 billion rupees a year earlier.

Analysts, on average, had projected 51.62 billion rupees, according to data from LSEG.

($1 = 83.7060 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ashna Teresa Britto in Bengaluru; Editing by Mrigank Dhaniwala)

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

** Shares of cigarette maker ITC ITC.NS up as much as 3.8% to hit record high at 510.65 rupees; top gainer on the Nifty 50 .NSEI which is flat .BO

** Indian government keeps tobacco tax unchanged in Tuesday's union budget

** Jefferies says "no news is great news", hikes rating on stock to "Buy" from "Hold" earlier

** Sees move to provide tax stability to co over next 12-18 months, hikes TP to 585 rupees from 435 earlier

** While cigarette tax hikes are inevitable in medium-term, we believe they will be more moderate and less frequent - Morgan Stanley

** Sees stable tax environment as a relief from any near-term demand disruptions, retains "Overweight" with TP of 506 rupees

** Brokerage Macquarie echoes the sentiment, maintains "Outperform" and hikes TP by 5% to 560 rupees

** Analysts avg rating on stock is "Buy", median PT is 510.50 rupees - a 3.7% premium on last close, LSEG data

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

BENGALURU, July 23 (Reuters) - India's Hindustan Unilever HLL.NS posted a higher first-quarter profit on Tuesday, as much awaited rural recovery sparked demand revival in core segments.

The company, a unit of UK's Unilever ULVR.L, reported a 2.7% rise in profit to 25.38 billion rupees ($303.23 million) for the quarter ended June 30.

Analysts, on average, had expected a profit of 25.31 billion rupees, according to data from LSEG.

($1 = 83.6978 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected];))

Adds stock moves in paragraph 4

By M. Sriram

MUMBAI, June 14 (Reuters) - Vodafone Group VOD.L is looking to sell its entire $2.3 billion stake in India's Indus Towers INUS.NS through stock market block deals next week, two sources with direct knowledge said, as part of the British firm's effort to repay debt.

Vodafone owns 21.5% of mobile-tower operator Indus via various group entities. As of Friday's closing stock price in Mumbai, the investment is worth $2.3 billion.

The final size of the stake sale is yet to be decided and could be lower than 21.5% if demand, which is still being assessed, is insufficient, said the sources, who declined to be named as the discussions were private.

Shares of Vodafone Idea VODA.NS extended gains, rising as much as 4.8% after the Reuters report, while Indus Towers pared gains and closed up 0.3%.

Vodafone India and its British parent did not respond to requests for comment. Indus Towers declined to comment.

Vodafone has hired Bank of America, Morgan Stanley and BNP Paribas to manage the stake sale in Indian stock markets, the sources said.

Bank of America declined to comment while the others did not respond to Reuters requests for comment.

Vodafone in 2022 announced it would sell all of its then-28% stake, but has managed to sell only a small portion so far. The sources said the talks with rival telecom firms for a stake sale had not materialised.

Vodafone plans to repay part of its $42.17 billion net debt using proceeds from the Indus stake sale, the sources said.

Indus, which says it is one of the world's biggest tower companies, also counts India's second biggest telecom firm, Bharti Airtel, as a shareholder. It has nearly 220,000 towers, with services also including providing power, space and green technology for tower equipment.

Private equity giant KKR and Canadian fund CPPIB were also investors in Indus, but sold their entire stakes in February.

Block deals, where investors sell shares in stock markets, have become increasingly popular in India as the market has surged to record highs.

In March, British American Tobacco BATS.L sold its entire $2 billion stake in Indian tobacco firm ITC ITC.NS.

For the March 2024 quarter, Indus' net profit rose 20% to $221 million, while its revenue stayed flat at $860 million, according to regulatory filings.

($1 = 0.7873 pounds)

(Reporting by M. Sriram in Mumbai, additional reporting by Paul Sandle in London and Yagnoseni Biswas in Bengaluru, editing by Aditya Kalra, Susan Fenton and Alexander Smith)

(([email protected];; Reuters Messaging: Twitter: @followthemani))

Adds voting details, shares at close, background throughout

BENGALURU, June 6 (Reuters) - ITC ITC.NS shareholders approved the Indian consumer goods maker's plan to carve-out its hotels business on Thursday, in line with the recommendation of key proxy advisors.

About 99.6% of the tobacco-to-soap firm's minority shareholders voted in favour of the move, exceeding the regulatory requirement of a three-fourth majority.

The company's shares closed 1.2% higher after the outcome of the vote. They were up 1% earlier in the session.

As per media reports, proxy advisory firms Stakeholders Empowerment Services (SES) and InGovern Research Services last month asked shareholders to support the demerger proposal, while Institutional Investor Advisory Services (IiAS) opposed the move.

"ITC must provide greater clarity with respect to the size of the synergies it expects to get by maintaining the 40% equity in the hotels business," IiAS said a voting advisory note, referring to the stake that the company will hold in ITC Hotels, the newly formed entity. ITC shareholders will own the remaining stake.

The company, known for its Goldflake brand of cigarettes, announced the demerger plan in July last year and later said that the new entity would be tentatively listed in 15 months.

ITC Hotels will compete as an independent entity with rivals such as Tata-owned Indian Hotels Company IHTL.NS, which operates Taj Hotels, and EIH Associated Hotels EIHA.NS, which manages the Oberoi brand of hotels.

The hotels business contributed 4% to ITC's fiscal year 2024 revenue, while its mainstay consumer staples business made up 71% of the topline.

(Reporting by Hritam Mukherjee in Bengaluru; Editing by Sonia Cheema)

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

Adds comment from press release and details from paragraph 3

BENGALURU, May 23 (Reuters) - Indian consumer goods maker ITC ITC.NS reported fourth-quarter profit below expectations on Thursday amid increasing competition from smaller rivals for shelf space, which dented demand.

Consumer goods makers including Hindustan Unilever HLL.NS and ITC have indicated that easing prices of some ingredients has encouraged regional rivals, which typically offer products at cheaper prices, to return to the fray for market share.

The fourth quarter saw "weak demand conditions and significant increase in competitive intensity from regional/local players," the "Fiama" soap-maker said in a presentation.

Revenue from ITC's fast-moving consumer goods segment, which houses its foods and personal care business but excludes cigarettes, rose 7.2%, compared to a 19.4% growth in the year-ago period.

Demand in its paperboards, paper and packaging business also fell due to competition with cheaper Chinese products, which was reflected in a 7% drop in revenue.

Meanwhile, its agri business saw a 13% drop in revenue, as the Indian government imposed trade restrictions on exports of agricultural commodities due to concerns over food security and inflation.

Coupled with this, higher prices of leaf tobacco prices and other input costs led to a 8.3% rise in raw material expenses.

ITC, home to "Sunfeast" biscuits and "Aashirvaad" flours, reported a profit of 50.20 billion rupees ($603.2 million) for the quarter ended March 31, down 1.3% from last year and missing analysts' estimate of 51.11 billion rupees as per LSEG data.

Overall revenue from operations rose edged up 1.4% to 177.53 billion rupees, compared to a 2.2% growth in the previous quarter.

Separately, the company approved a dividend of 7.50 rupees per share for the financial year 2024.

Earlier this year, British American Tobacco BATS.L completed a $2 billion stake sale in ITC, removing a key overhang on the stock.

($1 = 83.2300 Indian rupees)

(Reporting by Ashna Teresa Britto in Bengaluru and Praveen Paramasivam; Editing by Varun H K)

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

Adds details, report context paragraph 10-12

By Rishika Sadam

HYDERABAD, May 2 (Reuters) - India's food safety regulator said on Thursday it had ordered testing and inspections at all companies making spice mixes, widening an investigation into the sector as global regulators look into suspected contamination in two popular local brands.

Hong Kong last month suspended sales of three spice blends made by India's MDH and an Everest spice mix for fish curry. Singapore ordered a recall of the same Everest mix as well, flagging high levels of ethylene oxide, which is unfit for human consumption and a cancer risk with long exposure.

MDH and Everest products are hugely popular in India and also sold in Europe, Asia and North America, and the companies have said they are safe. Still, U.S. and Australian food authorities said they are gathering more information on the matter, and India had already ordered testing of the two brands' products.

The Indian regulator has now ordered officials to conduct "extensive inspections, sampling and testing at all the manufacturing units", for powdered spices, with a focus on those making curry powders and mixed spice blends for local and foreign sales.

"Each of the product sampled will be analysed for the compliance with quality and safety parameters," the Food Safety and Standards Authority of India said in a statement.

The agency added checks would also be made for any presence of ethylene oxide, whose use is banned in India, and "appropriate actions will be initiated as fit" after testing was completed.

India is the world's biggest exporter, producer and consumer of spices, and its domestic market for the products was valued at $10.44 billion in 2022, according to Zion Market Research.

Beyond MDH and Everest, other major manufacturers include Madhusudan Masala MADD.NS, NHC Foods NHCF.BO and consumer giants Tata Consumer Products TACN.NS and ITC ITC.NS.

None of the companies responded to a request for comment.

The Spices Board says India exported spice products worth $4 billion in 2022-23.

The Global Trade Research Initiative, a New Delhi-based think tank, said in a report on Wednesday that rising global scrutiny could put more than half of country's spice exports at risk.

If China decides to implement similar measures as other countries, Indian spice exports could see a "dramatic downturn", the report said.

(Reporting by Rishika Sadam; Editing by Aditya Kalra,Jamie Freed and Mark Potter)

(([email protected];))