Mumbai: The Indian Tobacco Company (ITC) has become the third most valuable tobacco company globally. ITC surpassed British American Tobacco (BAT) to bag this spot. The transition follows a sell-off in BAT shares. London-based BAT in the past week, sold off its shares and that brought its market cap below ITC to $64 billion.
ITC Limited is an Indian Multinational conglomerate company. It is headquartered in Kolkata. ITC has a diversified presence across industries such as FMCG, hotels, software, packaging, paperboards, specialty papers and agribusiness. The company has 13 businesses in 5 segments. It exports its products in 90 countries.
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It was established in 1910 as the Imperial Tobacco Company of India Limited. The company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C in 1974.
ITC has a market capitalization of $68.6 billion. Till now, the shares of the Nifty company have increased by 35%. There is a 15% gain in the benchmark 50-share index of the company.
The tobacco business now constitutes 37% of ITC’s gross revenue but it gives 78% of the company’s profit before tax. Other segments that contribute to the company’s profits are hotels, FMCG, and paper products businesses. In the second quarter, cigarette revenues for the company grew 10% on year to Rs 7,658 crore and generated over 46% of the total revenue of ITC. The particular segment remained the largest contributor as it shared 75% of profits in the quarter. On the other hand, the company’s operating profit rose 8% YoY on a high base.
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