With the mounting taxes - from excise duties to value-added tax — the company could not miss the negative vibes.
It was only a matter of time before the rising tax burden eroded ITC's robust revenues from the Rs 6,635-crore (Rs 66.35 billion) cigarette business (FY08 estimates) for a capital employed of Rs 2314.64 crore (Rs 23.15 billion) (that powers all its new ventures).
The ever-increasing tax levies have shrunk the cigarette market as well, with many downgrading to low-cost but more harmful tobacco options such as khaini and gutkha.
Where there is goodwill…
Paperboards and foods are perhaps the first two in a series of businesses to come supported by ITC's sustainability efforts.
For example, the livestock development programme - a part of ITC's Sunhera Kal project, which has started to supplement those families which are in the immediate catchment areas of their factories (in Munger, Bihar, for instance) - may one day equip ITC with the resources for dairy farming.
Milk is one of the farm products on Sivakumar's list of future sourcing; rice, coarse cereals, pulses and fruit are the others.
Image: An Indian dairyman is getting ready to deliver milk. | Photograph: Manpreet Romana/AFP/Getty Images
Also read: How rich-poor salary gap is widening
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