ITC plans Rs 20,000 cr investment and hotels demerger as BAT prepares exit
ITC pursues a hotels demerger with British American Tobacco exiting, alongside a Rs 20,000 crore investment push and openness to an FMCG spin-off. ITC Hotels leaned into food delivery via Zomato and Swiggy, with ITC Maurya launching gourmet home-delivery menus amid pandemic-driven shifts.
What happened
ITC plans Rs 20,000 crore investment, hotels demerger with BAT exiting, and openness to FMCG demerger. ITC Hotels partnered with Zomato and Swiggy for food
Key facts
- Rs 1,587 crore BAT sales +10%
- dividend to BAT -9%
- Rs 20,000 crore investment
- Q1 net profit -26%
- 50% capacity cap
Why this matters
BAT's exit plus the hotels demerger and potential FMCG spin-off open a rare window for M&A, stake acquisitions, and portfolio restructuring around ITC's core assets.
What to watch
- Demerger record date and hotel-entity listing timeline
- BAT stake movement below key thresholds (25%, 20%)
- FMCG spin-off feasibility statements from management
- Cigarette taxation/GST changes affecting core cash flow
- Q2 margin trajectory and dividend policy post-restructuring
- Board approval and scheme filing for hotels demerger with share-swap ratio disclosure
- BAT to signal stake-sale mechanism (block deal, buyback participation, or gradual dilution)
- Capex allocation breakdown across FMCG, paperboards, and agri-tech verticals
- Deepen food-delivery/cloud-kitchen tie-ups with Zomato and Swiggy to monetize hotel brands asset-light