Business
Sanjiv Puri’s ‘Next’ strategy drives ITC into future-ready lane with smart innovation in FMCG, Hotels, Agri
Diversified consumer goods conglomerate ITC appears to be closing in on turning its fast-moving-consumer-goods (FMCG), agriculture and hotel segments as its main growth drivers, with chairman Sanjiv Puri shepherding the ‘Next’ strategy for its next horizon of growth through bold acquisitions, and disruptive digital innovation.
This new strategy is aimed at ensuring that the ITC remains future-oriented, consumer-centric, and nimble to create enduring value for stakeholders, something that the financial results are mirroring with FMCG and agriculture contributing nearly half of its total revenues in the April-June quarter.
The FMCG segment has been driven by higher demand for hygiene products, fragrances, spices, snacks, agarbattis and dairy products, with Salvon standing out as a growth engine of sorts.
ITC acquired Savlon from Johnson & Johnson in 2015, foraying into the disinfectant and antiseptic products market. Savlon crossed Rs 1,200 crore in consumer spends in 2020-21, growing more than 13 times since acquisition, making it the largest brand in the company’s personal care products portfolio, overtaking Vivel.
ITC has launched over 120 new products over the last one year, with product innovations in hygiene, nutrition and convenience segments. These include Savlon’s foray into surface and cloth disinfectant sprays, ‘neem’ based cleaning solutions Nimwash and Nimeasy, convenience-focused products such as ITC Master Chef Frozen Snacks, and scale up nascent categories and products such like B Natural juices, Fabelle chocolates amongst others.
In four years from 2016-17 to 2020-21, the FMCG segment’s earnings before interest, taxes, depreciation and amortisation (EBITDA) margins have improved by 640 bps.
FMCG on fast lane
The company today is one of the largest incubators of world-class Indian brands. ITC FMCG business has garnered consumer spends of over Rs 22,000 crore and delighting more than 150 million households.
Scaling up and fortification of existing growth platforms consisting of megabrands is an essential cog in the wheel of ITC’s next strategy. The company has expanded its purpose-led brands like Savlon, Aashirvaad, and Sunfeast into adjacent categories with remarkable success. These brands have immense headroom to grow given the relatively lower household penetration and rising per capita income. ITC is exploring more value accretive inorganic opportunities as an additional pillar of growth.
Puri’s strategy to make ITC future-ready manifests in Life Sciences and Technology Centre (LSTC). LSTC helped ITC to launch 120 products amid the pandemic to meet emerging preferences. Towards this goal, the company has launched 9 state-of-the-art integrated consumer goods manufacturing facilities (ICML) to create structural advantages and drive enhanced competitiveness is also worth mentioning.
The new-age consumer is a digital native with extensive engagement in social and e-commerce platforms. Recognizing this, ITC is identifying emerging trends in real-time through its Marketing Command Centres called ‘Sixth Sense’ to speedily launch differentiated products as also creatively engage with consumers.
Under the ‘Next’ strategy, Puri has clearly sought to explore opportunities to craft disruptive business models anchored at the intersection of digital and sustainability. It is deploying a smart ecosystem with an integrated real-time operations platform across the organization to enable next-generation supply chains and smart manufacturing with digitally enabled factories.
The company has adopted multi-dimensional digital interventions for smart sourcing, smart logistics across businesses, and Industry 4.0 implementation in manufacturing. This is in addition to customized apps to facilitate digital ordering and trade engagement.
It has fast-tracked its journey in e-commerce, to meet the growing preference for ‘contactless shopping’. This is besides strengthening the direct-to-consumer platform, ‘ITC e-Store’ to reach consumers in newer geographies and introducing more ‘digital first’ brands to leverage the growing e-commerce space.
ITC under Puri’s stewardship is unwavering in its resolve to build a formidable FMCG business. Revenues from its FMCG business during the quarter stood at Rs 3726 crore, accounting for 25 per cent of the quarterly revenues. The agriculture segment turned in revenues of Rs 4,091 crore, accounting for 28 per cent of the company’s total quarterly revenues of Rs 14,649 crore before netting out inter-segment revenues of Rs 1,764 crore.
Big data, AI in agri
ITC’s decades-old agri business, powered by the e-choupal network, also appears to be coming of age.
Once the legal framework is in place that allows farmers to sell their produce outside their areas of cultivation, there is a clear opportunity in agri-business, similar to what ITC e-choupal in India and Pinduoduo in China have done successfully with scale.
Both are examples of using big data, technology network and artificial intelligence (AI) in farming to offer a better deal to peasants, make agriculture a rewarding vocation and bring them closer to the global markets by building digital platforms linking retailers with products consumers.
These will enable aggregation from farmers, incentivise creation of warehousing networks along highways, village storage schemes and the digitised app-based system for direct marketing by farmers, a model that ITC e-choupal has broadly demonstrated over the years.
Baareh Mahine Hariyali, an ITC e-Choupal initiative, which has combined multiple initiatives of cropping intensity (wheat, rice and summer moong), productivity enhancement and market linkages.
As reported by ITC, over 2 lakh farmers have already benefited from the interventions under the ‘Baareh MahineHariyali’ programme — over 35,000 farmers who have adopted the package of practices reported doubling of income and those who have implemented the programme partially reported increase in their incomes by 30 per cent to 75 per cent.
ITC, under Puri, is now implementing e-Choupal 4.0 at scale to bring the benefits of the digital revolution to agriculture. Envisaged as a ‘phygital’ system, the e-Choupal 4.0 is designed as a crop agnostic integrated solution framework that will synergistically aggregate technologies like remote sensing, precision farming, drone-based services, quality assaying and e-marketplace.
ITC e-Choupal 4.0 aims to strengthen agricultural entrepreneurship and agri-tech startups through agri services aggregator models, thereby empowering farmers with next generation agricultural practices. The aim of the model is to sharpen personalisation of agri services driven by data and analytics.
This may well be the right time for ITC’s integrated agribusiness enterprises with significant presence across crop development, procurement, supply chain, processing and marketing to decisively shift gears through a tech-driven matrix mounted on apps, blockchain, warehousing, AI and big data.
With the launch of Super App ‘ITC-MAARS’ that will bring the next phase of transformation in its agri-business and support the e-choupal through strength and scale under Puri.
Hotels and more
ITC’s hotel business has acquired scale and market standing over time. It is now set for a turnaround with the management decision to pursue asset right strategy while simultaneously leveraging ITC’s world-class properties.
Against this backdrop, the move to refresh ‘Welcomhotel’ is a long-awaited development as it will help the company to generate leads and pipeline for management contracts. Also, the launch of a new boutique brand christened ‘The Storii’ to offer the new-age traveller curated nature experiences will help the company make inroads into the emerging segment.
Business
Petroleum dealers seek exemption from MDR on fuel sales

New Delhi, Sep 17: Representatives of the All India Petroleum Dealers Association (AIPDA) met senior officials of the Ministry of Petroleum and Natural Gas on Thursday to discuss their demand for exemption from the merchant discount rate (MDR) on UPI transactions on fuel sales at petrol pumps.
The dealers’ body said in a statement that the issue was discussed with senior officials of the Petroleum Ministry as the additional MDR cost could put pressure on dealer margins, as retail fuel sales are made on prescribed commissions.
The new UPI framework levies an MDR of Rs 5 per transaction on petrol and diesel purchases above Rs 2,000. Such transactions account for around 30-40 per cent of total purchases across retail outlets in the country, according to dealers.
Petroleum Ministry officials sought to explain the rationale behind introducing MDR, which was required to support the development of the next layer of India’s UPI digital infrastructure.
“Petroleum dealers have been at the forefront of adopting digital payments and have worked closely with the government to promote their use across the country,” the AIPDA said.
The association said it expects to continue the dialogue with the government.
“We look forward to continuing the dialogue towards a mutually beneficial solution for consumers, petroleum dealers, and all stakeholders in India’s UPI ecosystem,” the statement said.
Dealers have raised concerns as digital payments have become an important mode of payment at petrol pumps, particularly for higher-value purchases.
Petroleum dealers have sought a complete exemption for fuel retail transactions, citing the nature of their business and the impact of MDR-related costs on their margins.
The Finance Ministry clarified that MDR is neither a tax nor a charge collected by the government or NPCI. It is distributed among payment ecosystem participants, including banks and payment application providers, to support the operation and continued expansion of the UPI ecosystem.
Transactions above Rs 2,000 in essential and thin-margin sectors, including railways, telecommunications, insurance, fuel and agricultural inputs, will attract a flat MDR of Rs 5 per transaction. The flat charge will provide cost certainty for critical public services and businesses operating on narrow margins.
Business
Maharashtra forms Kelkar panel to tackle fiscal stress, boost revenues

Mumbai, Sep 17: In a major push to reinforce Maharashtra’s fiscal health and support its long-term growth roadmap, Maharashtra Chief Minister Devendra Fadnavis announced the constitution of the Maharashtra Sustainable Public Finance Committee.
Headed by renowned economist and former Union Finance Secretary Dr Vijay Kelkar, the high-level panel, which was announced late Wednesday evening, is tasked with recommending measures to ensure sustainable growth in tax and non-tax revenues.
The decision forms an integral part of the state’s ‘Viksit Maharashtra @ 2047’ vision document, which outlines a strategic roadmap to scale the state’s economy to $1 trillion by 2030 and $5 trillion by 2047—coinciding with the centenary of India’s Independence.
The panel has been tasked with making recommendations to modernise the tax system, plug revenue leakages, and rationalise tax rates, fees, and exemptions; identify untapped revenue streams and maximise returns from public assets and state enterprises; streamline public spending while balancing expanding committed expenditures such as salaries, pensions, interest payments, and welfare schemes; and devise a fiscally responsible roadmap to reduce reliance on borrowings for infrastructure projects and budget deficits.
The Kelkar Committee comprises Prof Karthik Muralidharan (founder-director, CEGIS), Dr Nitin Kareer (former Chief Secretary, Maharashtra), T Rabi Sankar (former Deputy Governor, Reserve Bank of India) and Dr Ashima Goyal (President, The Indian Econometric Society).
The formation of the panel comes at a critical juncture for Maharashtra. While the state actively pursues an investment-led growth strategy across core sectors—including infrastructure, human resource development, water security, urban management, and energy transition—it faces growing fiscal constraints.
Maharashtra government’s Vision document has suggested restructuring the government expenditure policy to align with long-term capital formation, identifying alternative financing models and private capital inflows.
Fiscal deficit targets are capped within standard Fiscal Responsibility and Budget Management (FRBM) boundaries, targeting 2.8 per cent to 3.0 per cent of Gross State Domestic Product (GSDP) while keeping the revenue deficit under 0.7 per cent of GSDP, and implementation is tracked quarterly via a dedicated Vision Management Unit chaired by the chief minister.
Adhering to the targets set under the FRBM Act has proved challenging due to rising welfare commitments and debt servicing costs. Consequently, the government has frequently resorted to market borrowings to fund capital projects and offset short-term liquidity shortfalls.
The newly appointed Kelkar Committee is expected to deliver structural fiscal remedies to reverse this trend and secure long-term financial sustainability for the state.
Business
From GDP to startups: Key numbers tracking India’s economic and infrastructure growth as PM Modi turns 76

New Delhi, Sep 17: As Prime Minister Narendra Modi on Thursday turned 76 with his tenure marked by expansion across India’s economy, financial inclusion, infrastructure and startup ecosystem.
Several key numbers highlight the scale of changes recorded during his time as prime minister. On of them is India’s real gross domestic product (GDP) which grew 7.8 per cent in the April-June quarter of fiscal 2026-27 with manufacturing and services supporting the expansion.
As per government data, real gross value added rose 8.2 per cent, while investment grew 11.9 per cent, household consumption increased 7.1 per cent and exports rose 12 per cent.
Apart from that, India’s nominal GDP is estimated at around $4.15 trillion that underscores the expansion of the world’s major emerging economy despite global trade and geopolitical uncertainties.
In addition, India’s foreign exchange reserves also rose to a record $785.7 billion in the week ended September 4, according to Reserve Bank of India data.
The reserves have increased for 10 consecutive weeks and surged nearly $120 billion over that period. Also, India is the world’s fourth-largest holder of foreign exchange reserves.
Moreover, the number of beneficiaries under the Pradhan Mantri Jan Dhan Yojana stood at 59.21 crore as of September 2, according to the government, while deposits in the accounts totalled Rs 3.17 lakh crore and 41.39 crore RuPay debit cards had been issued.
Women accounted for 32.98 crore accounts, while 46.03 crore beneficiaries were in rural and semi-urban areas, the official data said.
On the infrastructure front, the nation’s national highway network under PM Modi’s leadership has expanded to 146,572 km from 91,287 km in fiscal 2013-14.
The Economic Survey said average annual highway construction rose to 9,704 km during 2014-25, compared with 4,174 km during 2004-14.
Under his guidance, the number of startups recognised by the Department for Promotion of Industry and Internal Trade has risen to more than 2.47 lakh as of August 2026 from 502 in 2016
Meanwhile, Startup India rules have also increased the turnover threshold for startup recognition to Rs 200 crore, while DeepTech startups have a higher ceiling of Rs 300 crore.
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