India: ITC moves into e-cigarette business

India: ITC moves into e-cigarette business

ITC, India’s largest cigarette manufacturer, has announced that it is intending to expand its business by moving into the electronic cigarettes market, the Economic Times reports.

According to company chairman YC Deveshwar, ITC is in conversations with government to develop a framework under which its range of e-cigarettes can be launched. Mr Deveshwar said that by the time it was established that e-cigarettes were less harmful than standard products, the market might already have been swamped with foreign products, to the detriment of Indian companies. He commented: "We are ready with e-cigarettes. However, some people want to ban it in India".

Meanwhile ITC also plans to enter into other FMCG industries such as food and beverages with products like tea, coffee, chocolates and dairy. Mr Deveshwar said: “As part of our plan to become India’s largest FMCG company by 2030, we would enter into every possible FMCG segment sooner or later”.

Mr Deveshwar announced the company’s intentions during the ITC’s 103rd annual general meeting. "We are trying to build the ITC of tomorrow from the cash flows generated from the cigarette business", he said.

Source: Economic Times