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

ACT Government Bill Targets Illicit Tobacco and Vapes with Tougher Powers

ACT Government Health Minister Rachel Stephen-Smith introduced the Tobacco and Other Smoking Products Amendment Bill 2025, expanding authorised officers’ inspection, seizure and penalty powers to address illicit tobacco and vaping. The Bill enables $1,600 infringement notices for selling prohibited smoking products and classifies illicit tobacco as a prohibited smoking product under Territory law.

Oct.23 by 2FIRSTS.ai

Samsung's battery explosion case proceeds as court finds manufacturer maintained “sufficient contacts” with the state

The Minnesota Court of Appeals has ruled that Samsung SDI Co., Ltd., a South Korean battery manufacturer, is subject to Minnesota jurisdiction in a product-liability case involving a vape battery explosion. The court found the company had “sufficient minimum contacts” with the state through extensive business activity.

Oct.20 by 2FIRSTS.ai

Philip Morris and R.J. Reynolds Face Trial Over Woman’s Lung Cancer Death in Massachusetts

According to Law360, the family of Maria Petruzziello has taken Philip Morris and R.J. Reynolds to trial in Massachusetts, alleging the companies are responsible for her 2019 lung cancer death after decades of smoking. Plaintiffs argue her experience mirrors many smokers, while the defense points to her years-long cessation and personal choice.

Dec.03 by 2FIRSTS.ai

Bangladesh High Court Questions Legality of BEZA’s Approval for Philip Morris Nicotine Pouch Factory

The High Court in Bangladesh has asked government bodies to explain why the approval granted to Philip Morris to establish a nicotine pouch factory should not be deemed illegal. Petitioners argue the decision contradicts existing policies and a 2016 Appellate Division ruling that restricts new tobacco-related enterprises. Authorities have ten days to respond.