Business Standard

Behind ITC's hotels demerger

Why ITC threw down the gauntlet with the demerger of its hotels business

ITC
Premium

ITC

Indrajit Gupta
Last month, the board of directors at ITC cleared the demerger of its hotels division, kicking off an important — and long-awaited — transition for the cigarette-to-FMCG diversified conglomerate, and one of the country’s most valuable firms.

On the face of it, the strategic rationale for carving out the hotels division and separating it from the mothership is clear. However, the manner in which the proposed structure has been designed for the new entity — ITC Hotels — and ITC’s decision to retain a sizeable 40 per cent stake in the new entity, has invited critical commentary, with ITC’s share
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in