New Delhi

ITC Chairman and Managing director Sanijv Puri stated that the company is witnessing signs of volume growth as inflation begins to ease. He said that the trend is expected to continue over the forthcoming quarters, PTI reported.

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According to Puri, this would undoubtedly result in an increase in volume, but it won't happen immediately. Puri made this statement in New Delhi, outside of the B20 Summit, which was hosted by the Confederation of Indian Industry (CII).

Puri commented on the ITC’s decision to demerge its hotel division, saying that by creating a wholly-owned new subsidiary, ITC Hotels Ltd., it will benefit the current shareholders.

“It will be a pure-play, focused on hospitality, which can leverage the institutional strengths of ITC. And ITC in turn will be able to leverage the synergy on its hospitality business, or its FMCG businesses,” PTI quoted Puri as saying.

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It is a “very robust” strategy that will help the hotel industry advance faster while maintaining synergies, and it will boost ITC’s financial KPIs, he added.

According to Puri, there are two main causes of inflation: the first is the increase in foreign geopolitical variables, and the second is the problems with climate change.

“However, now, India is much better placed in the rest of the world and I would like to compliment the government for stewarding management of inflation and being extremely proactive in taking the right steps to control that,” he said.

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ITC and several other FMCG manufacturers have reported volume growth and profitability improvement for the June quarter. Aashirvaad, Bingo, Sunfeast, YiPPee, Fiama, Vivel, and Savlon are just a few of ITC’s 25 brands.

Puri told PTI, “We are already seeing green shoots of pickup on volumes as inflation is moderating,” in response to a question regarding the recovery of consumer mood and volume growth, particularly in the rural market. He believes that when inflation slows, market prices will rise or the climate shall improve. He voiced his worries about the operating environment’s ongoing weather instability.

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