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August 4, 2001
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Money > Business Headlines > Report August 4, 2001 |
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ITC may market products of other companiesBS Bureau ITC Ltd on Friday said that it would explore partnerships to sell products of other companies by leveraging its marketing and distribution strengths and network. ITC chairman Y C Deveshwar told shareholders at the company's 90th annual general meeting on Friday that this could emerge as a fifth line of business in addition to the existing ones: cigarettes, hotels, paper and printing and lifestyle retailing businesses. "ITC is in talks with some companies to market their products but it would be premature to name either the product category or companies," Deveshwar told newsmen later in the day. In the existing businesses, the chairman said, the company's working would be in line with its quarterly performance, with more than 20 per cent topline and bottomline growth. This would be achieved despite greater investments in lifestyle retailing and franchising, besides cigarettes and paper. ITC would invest to build fledgling non-tobacco consumer brands like Wills Sport in garments and lifestyle retailing and Bukhara in foods business. "Once these brands were established, they would be taken global. In sectors like garments, where export restrictions would be lifted soon, the potential can be described as immense," said Deveshwar. Delving on the restrictions on advertisements of cigarettes in the country, the chairman said that here there was no level-playing field for the domestic players against the international ones, as currently, there were too many restrictions on advertising of Indian cigarette brands, although advertising of foreign brands was going on unhampered on channels like ATN and ESPN. To overcome this problem, ITC is in dialogue with the government to evolve a select channel for Indian cigarette advertising which would be shielded from non-adults, along with a proper code of conduct to ensure that tobacco was not sold as a lifestyle product or similar image connotations. "But these rules should apply to all the tobacco products and not just cigarettes, which were only 15 per cent of the total tobacco use in the country," said the chairman. Analysts pointed out that the model which ITC was seeking to develop was not new as several FMCG majors have been marketing products manufactured by others through owned network over and above the products manufactured in-house. Powered by YOU MAY ALSO WANT TO READ:
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