The Hindu Business Line : ITC Infotech in talks to buy US firm

Kolkata, July 30 ITC Ltd plans to acquire US based information technology firm through its technology subsidiary, ITC Infotech, Mr Y.C. Deveshwar, Chairman of the company, told reporters today after the 97th annual general meeting.

He said, “We are in talks with the company and hope to finalise the deal soon”. ITC Infotech has been making good progress and will also focus on the European market, he added.

The company, according to the Chairman, was on the lookout for other acquisitions but was waiting for appropriate targets. “We are constantly looking for acquisitions, but we should get the right target,” he said.

ITC also proposes to pump in surplus cash-in-hand into new assets. The company has invested Rs 4,000 crore in fixed assets over the last two years. The return on these investments might not come immediately but over a period of time.

Mr Deveshwar said the company was insulated against interest rate hikes, as the total interest burden to the overall size of the balance sheet was very small.

Explaining the reasons behind diversification into FMCG and other businesses, he said the restrictive regulatory environment had made the growth of the cigarettes business problematic. ITC, therefore, planned to focus on other aspects of growth.

“Cigarettes are being disproportionately taxed so we have embarked on multiple drivers of growth,” he added.

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