ITC lines up ₹20,000 crore capex in manufacturing expansion, exports, and import substitution

ITC Limited has proposed a medium-term capital expenditure plan of ₹20,000 crore across businesses with high multiplier impact as it expands manufacturing capacity, strengthens domestic value chains and scales up export-oriented operations, chairman & MD Sanjiv Puri said at the company's annual general meeting today.

The investment comes as the diversified conglomerate looks to reinforce its manufacturing ecosystem while supporting India's ambition of becoming a global manufacturing hub.

"Your company's confidence in the India story is reflected in its proposed medium-term capex of ₹20,000 crore for the group in areas that have a multiplier impact," Puri said. He added that the investment pipeline follows the commissioning of eight new facilities, with another six projects already under implementation.

The proposed investment builds on ITC's existing manufacturing network, which today spans more than 300 factories, including 45 owned plants, while engaging with over 9,500 MSMEs. Nearly 90% of the company's value addition takes place within India, with its agri and food processing businesses alone operating 170 factories that connect farmers to domestic and international markets.

The manufacturing expansion comes even as ITC has continued to grow despite a challenging operating environment. Over the past five years, the company's net segment revenue has crossed ₹83,300 crore, growing at a compound annual growth rate of 10.7%, while EBITDA grew at a CAGR of 9.7%. Non-cigarette businesses now contribute nearly two-thirds of segment revenue, and the company has distributed almost ₹85,000 crore to shareholders through dividends over the same period.

Manufacturing, sustainability and import substitution

Puri said ITC's leadership in paperboards and paper will be further strengthened through the proposed acquisition of Century Pulp and Paper, which will increase production capacity by more than 50% to 1.5 million metric tonnes. The company has also established a state of the art moulded fibre products facility to manufacture engineered compostable alternatives to single use plastics for both domestic and export markets.

He said the company's distributed manufacturing network is increasingly being powered by digital technologies, with an AI first backbone improving efficiency, responsiveness and cost optimisation across facilities. Several manufacturing units now meet nearly 100% of their electricity requirements through renewable energy sources, while others have achieved platinum-rated green building standards and global AWS benchmarks. Women now form the majority of the workforce in several manufacturing units, he added.

Alongside expanding capacity, ITC is also intensifying its focus on import substitution. Puri said the company pioneered the Bharat Fibre value chain for its paperboards business, helping green nearly 1.5 million acres while generating more than 270 million person days of employment. Investments in domestic pulp, capsule manufacturing and decor paper production are expected to generate foreign exchange savings exceeding ₹17,500 crore over the next decade.

"For us at ITC, this is the larger meaning of Bharat Build Manufacturing in Action. To build globally competitive domestic manufacturing assets, substitute imports, enrich the environment and support sustainable livelihoods," Puri said.