What did you read from the recently concluded AGM of ITC Ltd?

On 20th July, the annual general meeting (AGM) of ITC was conducted in Kolkata. There is a silent change taking place at ITC in terms of business sfocus. Cigarettes were the mainstay and still drive more than 80% of its profits. However, predominance of cigarettes also means that it never got the valuations that other FMCG companies like HUL, Britannia or Nestle got. The crux of the AGM was to lay out a broad framework to put the company in a different growth and valuations trajectory, amidst the current global headwinds.

Let me beign with the broad theme of the AGM. Remember, there are several tectonic shifts underway in the global ecosystem. There has been rapid digital adoption across most businesses. There is a lot of futuristic innovation that is impacting almost every industry. The pandemic remagined the workplace and redefined the way people collaborated, worked and engaged. Some big themes in the ecosystem today are adoption of green technologies, mobility and infrastructure; redefined supply chains and rapid digital advancements.

ITC is quite clear which side of its bread is buttered. IT has, therefore, committed to invest in consumer-centric innovation and a digitally-enriched smart ecosystem. It may come as a surprise to know that ITC has over 900 patents filed, ranking it among the top private sector innovators in India. Let us take the agri business as a microcosm. Here, the focus is on being sustainable and future smart. This includes planet-friendly and micronutrient-rich millet-based products under the aegis of the popular Aashirvaad Super Foods brand.

ITC has been looking to enhance customer experience by providing customisation options. These include unique personalised solutions. Just to elaborate, in the Hotels Business, ITC’s digital investments facilitate customer acquisition, improved guest experience and smart revenue management. To cut it short, ITC has recognized digital as the next big megatrend of the decade. It will not only impact, but also disrupt conventional models. ITC committed itself to focus on sharpening its competitive edge and exploring opportunities that lie at the intersection of digital shift and sustainability.