ITC may enter hospital, healthcare business (Second Lead)

July 23rd, 2010 - 9:32 pm ICT by IANS  

Kolkata, July 23 (IANS) Diversified FMCG major ITC may enter the hospital and healthcare business.
“We may look into hospital business. It is in the same service area (hospitality),” Chairman Y.C. Deveshwar said

Friday, responding to a suggestion from a shareholder at the 99th annual general meeting of the company here.

Stressing that the country is growing fast and “we need to grasp the opportunities,” Deveshwar said ITC is planning to invest around Rs.23,000 crore over the next seven-10 years across all business segments, including consumer goods, paper, packaging and hospitality.

“The fast moving consumers goods sector in India is expected to triple in size to over Rs.355,000 crore by 2018.”

“I can sight an investment opportunity for ITC of up to Rs.8,000 crore over the next 7-10 years to drive growth in this sector,” he said.

on the hospitality business, he said: “At conservative estimate, India needs 50,000 rooms in the next two-three years. This sector, too, carries an investment opportunity for ITC of up to Rs.9,000 crore in next seven-10 years to fuel growth.”

Regarding investment in paper, paperboards and packaging sector, he said: “Per capita consumption is around 5 kg per person per year in India compared to nearly 300 kg in US, 200 kg in UK and 45 kg in China. With the spread of education and economic growth, demand is expected to grow manifold.”

He said in paper, paper board and packaging sector there was an investment opportunity of Rs.6,000 crore.

Asked how the company plans to fund Rs.23,000 crore investment, he said: “We do not need to raise any funds for this investment.”

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