HQ
India
OWNERSHIP
Publicly Traded135
RANK
8
(out of 15)
FINAL SCORE
0.62
(out of 5)

Company Overview

ITC began as a tobacco company but has evolved into a conglomerate operating in multiple industries. Tobacco division sales, which now account for less than half of the total company revenue, are almost entirely due to cigarettes in India, with a small presence in cigars as well. Between 2017 and 2019, the company was active in two reduced-risk categories – NRT and cartridges. However, the ban on e-cigarettes in India effectively reduced the company’s offer in tobacco alternatives to NRT only. The company has made substantial investments in high-risk products, particularly in order to modernize and digitize cigarette manufacturing facilities and achieve higher levels of productivity.

Stance on Harm Reduction

In 2019, ITC’s tobacco-related earnings declined to less than 50%. This performance was mainly due to its diversification into other industries and high tax rates on tobacco, rather than a reflection of tobacco harm reduction policy. Furthermore, the company continues to highlight innovation and the release of new high-risk product variants and has mounted a challenge to regulations mandating graphic health warnings on tobacco packaging.

Notable Performance

0

Strategy and Management

ITC has no harm reduction commitment, but offers one reduced-risk product (NRT).
0

Product Sales

ITC’s sales are almost exclusively focused on cigarettes and cigars, even though a small share of total sales is linked to NRT products.
0

Capital Allocation

The vast majority of ITC’s investments support high-risk products, and cigarettes in particular.
0

Product Offer

NRT is the only reduced-risk product offered by ITC, while its portfolio is dominated by cigarette brands.
0

Marketing

ITC does not offer a detailed tobacco-focused marketing policy outside of conforming to laws and regulations.
0

Lobbying and Advocacy

ITC, in which the government owns a 24% stake, does not disclose details of political engagement policies.139

Net Value Sales

In 2019
High-Risk Products
100.0%
Reduced-Risk Products
0.0%

Products Offered

In 2019
High-Risk Products
2
Reduced-Risk Products
1

Capital and R&D Investment

Over 2017-2019
High-Risk Products
99.0%
Reduced-Risk Products
1.0%

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