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Our Bureau

Kolkata , July 23

Clarifying the company's position with regard to procurement of wheat, the ITC Chairman, Mr Y.C. Deveshwar, has said that ITC buys directly from the farmer as an actual user, strictly in accordance with the company's business model.

Categorically stating that the company was not hoarding any wheat, and was also not indulging in any price manipulation, Mr Deveshwar said that direct procurement was being carried out for actual use by the Foods Division for making atta, biscuits, and pasta. "Our current stocks are enough for our foods business."

He added that buying and selling of wheat or any other agricultural commodity was not illegal. "We in ITC do it with great responsibility."

Stating that there were some cash cows, some stars, and some new areas, in the portfolio of new businesses of the company, he said that huge expenditure has to be incurred in the challenging FMCG business for creation of brands.

Responding to shareholders' queries on the future of the cigarettes business, and how the company intended to approach the issue of tobacco control, Mr Deveshwar said that the per capita consumption of cigarettes in India was the lowest in the world.

Stating that the company was dealing in a legal product that has a demand, he said that it cannot be wished away as it involved the livelihood of millions of farmers, who first need to find out an alternative crop for tobacco. "We are conducting the business in a responsible manner."

Explaining the company's approach with regard to corporate social responsibility (CSR), he said that the concept as practised was enmeshed in the adopted business model itself, and linked to the value chain.

Describing the company as a responsible corporate citizen, he said that the HR resources and core competence vested in the company's business divisions are being utilised successfully. "We have adopted an enlightened approach."

On what other new businesses the company now look into, given the competition coming in with very big players entering the retail chain, he said that there were plenty of opportunities.

"But everything depends on the nature of the opportunity and the existing skills that can be matched to ITC's resources."

He, however, admitted that there was cause for worry, as competition was bound to hot up.

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ITC clarifies on wheat procurement

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