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ITC plans Walmart act in India: Deccan Herald
Kolkata, July 28: ITC, the cigarette giant which is trying to conjure a future beyond tobacco, is keen to become synonymous with what Walmart is in the USA, chairman Y C Deveswar told newsmen here last night after the company`s 92nd AGM.
Kolkata, July 28: ITC, the cigarette giant which is trying to conjure a future beyond tobacco, is keen to become synonymous with what Walmart is in the USA, chairman Y C Deveswar told newsmen here last night after the company’s 92nd AGM.
“You may forget the buildings of Walmart and think about the low-cost fulfillment capabilities. This is what we are trying to achieve in ITC.Our aim is to be present at places with a population of less than 5,000 people,” Mr Deveswar observed.
According to him, ITC, as part of its strategy to rejig its focus has been laying IT-enabled network in 14 States. Once the company attains a “certain size”, it will be in a position to roll out many a product, he said, adding, “We may even end up selling bicycles and motorcycles some day.”
Elaborating on ITC’s latest strategy, Mr Deveswar pointed out that for any new business that ITC is currently into, it would lay stress only on the “topline and not the bottomline.”
“It’s like Coca-cola or Pepsi entering into a new market and then going through a long period of negative cash flows which makes good business sense,” he observed.
The company has not been doing well on the agri-business front though the Hotel division has looked up a little bit this year.
Mr Deveswar said he had discussions with Hindustan Lever Chairman M S Banga on how the two companies might work together in the water management segment since both have developed a wide rural network. “We are open to acquisitions and may even make greenfield investments if required,” he said.
“You may forget the buildings of Walmart and think about the low-cost fulfillment capabilities. This is what we are trying to achieve in ITC.Our aim is to be present at places with a population of less than 5,000 people,” Mr Deveswar observed.
According to him, ITC, as part of its strategy to rejig its focus has been laying IT-enabled network in 14 States. Once the company attains a “certain size”, it will be in a position to roll out many a product, he said, adding, “We may even end up selling bicycles and motorcycles some day.”
Elaborating on ITC’s latest strategy, Mr Deveswar pointed out that for any new business that ITC is currently into, it would lay stress only on the “topline and not the bottomline.”
“It’s like Coca-cola or Pepsi entering into a new market and then going through a long period of negative cash flows which makes good business sense,” he observed.
The company has not been doing well on the agri-business front though the Hotel division has looked up a little bit this year.
Mr Deveswar said he had discussions with Hindustan Lever Chairman M S Banga on how the two companies might work together in the water management segment since both have developed a wide rural network. “We are open to acquisitions and may even make greenfield investments if required,” he said.