BAT Considers Reducing Stake in Indian Company ITC

BAT by 2FIRSTS.ai

Dec.18.2023

BAT Considers Reducing Stake in Indian Company ITC

British American Tobacco (BAT) plans to reduce its stake in Indian company ITC from 29.02% to about 25%.

According to a report by Indian media outlet ET, British American Tobacco (BAT), the largest shareholder in Indian company ITC, currently holds a 29.02% stake but has recently expressed intentions to reduce its stake to around 25%.

Tadeu Marroco, CEO of BAT, emphasized during an interview that the stock adjustment action will face complicated challenges due to India's strict Foreign Direct Investment (FDI) rules on the tobacco industry.

Marlboro further elaborated on the two main complexities faced by the company in reducing its stakes in ITC. Firstly, the FDI rules mentioned above severely restrict foreign investment in the tobacco industry in India. Secondly, approval from the Reserve Bank of India (RBI) adds further difficulty to the sale of shares. During the recent BAT's annual trading update conference call, Marlboro stated to analysts that maintaining strategic influence and veto power within ITC does not actually require holding more than 25% of the shares.

Maroko emphasizes the complexity involved in divesting investments in ITC, which includes obtaining special approval from the Reserve Bank of India, undoubtedly adding bureaucratic hurdles. ITC holds a significant position in the tobacco industry in India, accounting for three-quarters of the legal cigarette market share.

Apart from the tobacco industry, ITC has emerged as the largest company in the fast-moving consumer goods (FMCG) sector in India. Furthermore, it is the second-largest hotel chain in the country and the largest private agricultural business. Additionally, it holds a prominent position in the paper industry.

References:

[1] British American Tobacco (BAT) Considers To Cut Stake in ITC To About 25 pc

Also Read:

[1] ITC Targets $500 Million Potential Market in Premium Tobacco Exports

[2] ITC Ltd: India's Diversified Giant Ousts BAT as Global Tobacco Leader

#Traditional tobacco #Asia #India #Market #British American Tobacco (BAT)

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn

Notice

1. This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2. The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3. This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4. Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

Copyright

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Novosibirsk Governor: Targeted Vape Restrictions More Effective Than Full Ban

Novosibirsk Region Governor Andrey Travnikov said during a live Q&A session that local authorities have no plans to impose a full ban on the sale of vapes and disposable e-cigarettes. He argued that a regional ban would be ineffective and could encourage gray market activity and cross-border resale.

Dec.12 by 2FIRSTS.ai

Over 179,000 E-Cigarettes Destroyed in Samut Prakan as Thai Government Tightens Enforcement

Thailand’s Office of the Prime Minister, led by Minister Santi Piyatat, has destroyed nearly 179,000 confiscated e-cigarettes and accessories worth 33 million baht (approx. USD 1,020,000) as part of the government’s ongoing campaign for a “Vape-Free Thai Society.”Officials said the action demonstrates Thailand’s strict enforcement of anti-vaping laws and its commitment to protecting youth and public health.

Nov.27 by 2FIRSTS.ai

Feature | Vape Politics in Russia: Local Governments Push Forward Despite Legislative Deadlock

As Russia’s federal vape policy stalls, regional governors are racing to implement local bans—now with the backing of President Vladimir Putin. The divide between swift local action and delayed national legislation is fueling debate over health, regulation, and the country’s broader approach to nicotine control.

Oct.28

Great Wall Cigar explores global industrial cooperation via embassy visits in Beijing

A delegation from the Great Wall Cigar Factory of China Tobacco Sichuan Industrial Co., Ltd. recently visited the embassies of Cuba, Morocco, and Indonesia in Beijing to explore opportunities for industrial cooperation and trade expansion.