ITC's appetite for staples grows as it moves away from tobacco

The company is betting on its non-cigarette FMCG portfolio to deliver growth and convince the markets that it is moving away from its tobacco dependence

ITC projects itself as a diversified conglomerate with a portfolio of cigarettes, hotels, agri-commodities, paperboards and specialty paper, and fast moving consumer goods. But the Street has rarely been convinced. With cigarettes accounting for 84 per cent of profit before interest and tax, ITC remains a tobacco play for the markets, and this is becoming a problem in two ways. 

In the past year, market returns on ITC stock have been minus 25.03 per cent. Over a two-year timeframe, the performance has been worse — minus 39.94 per cent — and over three years minus 32.7 per cent. That’s largely