ITC pledges to exceed FSSAI norms as it manages cigarette-tax pressure and pursues hotel growth

Chairman Sanjiv Puri said ITC will go beyond food-safety compliance requirements, seek to limit cigarette-tax-driven migration to illicit products, and continue expanding its hospitality business through owned hotels and partnerships.

— Source publishedThu, 27 Aug, 2026, 14:36 IST·First seen Thu, 27 Aug, 2026, 14:42 IST·Source CNBC-TV18 · Companies

What happened

ITC says it will exceed FSSAI compliance requirements, while managing cigarette price increases to limit shifts to illicit trade. Chairman Sanjiv Puri remains

Why this matters

ITC remains open to scaling its hotel business through a mix of owned assets and partnerships, creating potential opportunities for property and operating alliances.

What to watch

  • FSSAI inspections, new labeling or contaminant rules, and any enforcement actions involving large packaged-food peers.
  • Union Budget or GST Council changes affecting cigarette duties, compensation cess or tobacco-tax structure.
  • Legal cigarette volume trends, company commentary on downtrading, and estimates of illicit-cigarette market share.
  • ITC Foods margin movement, product recalls, retailer delistings or accelerated modern-trade/e-commerce distribution.
  • ITC Hotels room additions, management-contract pipeline, occupancy, RevPAR and capital-allocation disclosures.
  • Any corporate restructuring or capital-market action involving the hotel business following its separation from ITC.
  • Increase food-safety testing, supplier audits, traceability systems and compliance communications across packaged-food categories.
  • Use product renovation, premium packs and selective pricing to offset tobacco tax pressure while avoiding sharp downtrading in key cigarette segments.
  • Intensify engagement with government on illicit-cigarette enforcement, tax stability and border-control measures.
  • Prioritize hotel management agreements, franchise-like partnerships and selective owned properties in high-demand business and leisure markets.
  • Leverage hotels as showcase and distribution channels for ITC Foods, personal care, agri and premium gifting products.

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