West Asia turmoil reinforces need for resilient business models, says ITC's Sanjiv Puri

The prolonged uncertainty arising from the West Asia crisis has moved global volatility from being an occasional disruption to a structural challenge, threatening energy security, trade and supply chains, ITC chairman & MD Sanjiv Puri said today, urging Indian businesses to build resilience, strengthen domestic value chains and prepare for a more fragmented global economy. 

Addressing shareholders at the company's annual general meeting, Puri said businesses must rethink their growth strategies as geopolitical tensions, climate risks and technological disruption converge to reshape the global economic order.

"The prolonged uncertainty arising from the West Asia crisis has severely impacted the global economy, threatening energy security and trade. Indeed, the multitude of events in the recent past only reinforce the fact that global volatility is no more sporadic, it is now systemic," he said. 

According to Puri, decades of hyper globalisation have given way to a fragmented and less trusting world marked by weaponised supply chains, volatile commodity prices, inflationary pressures and disruptions to food, energy and trade. While these challenges have raised uncertainty, they have also created an opportunity for countries and businesses to build stronger and more resilient ecosystems, he said. 

Companies across sectors are reassessing sourcing strategies amid continuing geopolitical tensions and supply chain disruptions.

Despite this backdrop, Puri said ITC has maintained steady growth over the medium term. The company's net segment revenue has crossed ₹83,300 crore, growing at a compound annual growth rate of 10.7% over the last five years, while EBITDA grew at a CAGR of 9.7%. Non-cigarette businesses now contribute nearly two-thirds of segment revenue, and ITC has distributed nearly ₹85,000 crore in dividends during the same period. 

Foreign exchange earnings of the ITC Group aggregated nearly $6.5 billion over the past five years, with agri exports contributing more than 60%. During the same period, its FMCG business grew from around ₹14,720 crore in FY21 to more than ₹24,200 crore in FY26 with sustained improvement in profitability. 

Puri argued that resilience alone is no longer sufficient and businesses must become "anti-fragile", capable of emerging stronger from periods of disruption.

"Strengthening resilience calls for locally anchored value chains, stronger MSME partnerships, diversified and trusted sourcing, import substitution, climate stewardship and robust digital adoption," he said. "The winners of tomorrow must also thrive amongst adversity, nurture new competencies, accelerate innovation and spur new engines of growth." 

He added that Indian enterprises should focus on creating globally competitive brands, investing in research and development, AI-led transformation, manufacturing and exports while supporting sectors such as agriculture, tourism and wood-based industries. 

Calling the present moment an "inflexion point", Puri said businesses have a larger role in strengthening India's competitiveness while contributing to sustainable and inclusive growth.

"It is my deep conviction that businesses, as a crucial organ of society, serve a larger transformational purpose by contributing meaningfully to national competitiveness, sustainable and inclusive development," he said.