The Hindu Business Line : ITC Hotels working on arrangement for Sheraton brand use

Bangalore March 23 ITC Hotels is still in the process of finalising the new arrangement over use of the Sheraton brand, according to Mr Y.C. Deveshwar, Chairman of ITC. This follows the end of ITC Hotels's 30-year-old contract with Starwood Hotels and Resorts to exclusively use its Sheraton brand name in India.

Speaking to newspersons on the sidelines of a meet organised by the CII as part of the CII Governance Series, Mr Deveshwar said: "We will jointly declare the arrangement once it is finalised." However, he refused to give more details. ITC's reported plan to open three hotels - in Chennai, Bangalore and Ahmedabad - is on course, he said. "The Chennai hotel, proposed to come up on an eight-acre plot on Anna Salai, could perhaps be India's biggest." On VAT on tobacco, Mr Deveshwar, said that it could affect margins. He added that VAT is levied to stop the cascading effect of taxes; but cigarette is already a "heavily taxed" product and a 12.5 per cent VAT is "a burden" and will lead to a "tax on tax." This will negate the very principle of the value-added tax, he added. Touching upon the various businesses of ITC Ltd, Mr Deveshwar said that the foods division was doing "very well" with a diverse portfolio that includes biscuits, ready-to-eats and atta.

Recently, ITC Foods entered the snacks segment with its Bingo brand. "We want to be India's largest foods company and a valuable FMCG company. This is our vision." On whether ITC plans to take ITC Infotech public, Mr Deveshwar said: "It is structured differently as a separate company and not as a division," so that it has the option of remunerating employees according to industry practice. But as far an IPO is concerned, nothing has been decided, he said.

Earlier, addressing the meet, Mr Deveshwar, who is also Past President of the CII, said that good governance is all about creating value.

"The three things that create value are the values of the organisation that will guide what it will or will not do, a vision that is futuristic, all encompassing and impactful, and vitality or capacity of the organisation."

Diversification is an extremely aspect of corporations today, especially in an emerging economy like India, he said, quoting the example of his own company that has a wide range of businesses. "The challenge lies in balancing the short-term ideas with long-term plans."

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