Sanjiv Puri assumes executive leadership of ITC

In a rather quiet and unceremonious development, the baton of the executive leadership of ITC Ltd., a ₹50,000-crore turnoverdiversified conglomerate, has passed on from Yogesh C. Deveshwar to Sanjiv Puri, who assumed charge on Monday.

Mr.Puri assumed charge as the Chief Executive Officer, while Mr. Deveshwar, who stepped aside on February 4, will remain the chairman in a non-executive capacity. He, however, will play a mentorrole.

It was business as usual on Monday at ‘Virginia House’, ITC’s iconic headquarters at downtown city, and there were no farewell words.

In a letter to employees Mr. Deveshwar said that his executive career in ITC, spanning for more than 48 years (including 21 years at the helm) between December 1968 and February 4, 2017 had come to a close. He said he was more optimistic of ITC than ever before.

The Union Budget has not dealt any major blow to the cigarette sector, which accounts for the bulk of ITC’s revenues. On the contrary, the informal tobacco sector (gutka and others) are now under the scanner. This is seen as a positive development for ITC by analyst firm Edelman Securities.

However, Mr.Puri (54), an IIT Kanpur and Wharton alumnus, will have his hands full trying to perk up the hotelindustry which could face a threat in case there is an economy slowdown in the wake of demonetisation.

Paper business too is under pressure. Mr. Puri also has the task of implementing a ₹25,000-crore capex plan across States and diverse business segments.

The company, which is known mostly for cigarettes, is marking an increasing presence in hotels, paper, agri business and a slew of non-cigarette FMCG segments. It is also planning a foray into healthcare.

Mr. Deveshwar said he will continue to be the chairman “for foreseeable future and in his new role, will have opportunity to support pursuit of ITC’s vision.”