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.

 

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

PMI Q2 Revenue Rises 10.4% as IQOS and VEEV Expand, U.S. ZYN Growth Slows
PMI Q2 Revenue Rises 10.4% as IQOS and VEEV Expand, U.S. ZYN Growth Slows
Philip Morris International’s second-quarter net revenues rose 10.4% to a record $11.19 billion, as heated tobacco and e-vapor expanded across international markets. IQOS remained the main smoke-free growth engine, while VEEV shipments jumped 55.1%. In the United States, however, ZYN shipments increased just 1.8% and consumer offtake was broadly flat to slightly higher. Cigarette volumes also rose, showing that PMI’s transformation is advancing, but growth is becoming increasingly uneven across categories and markets.
PMI
Jul.22
China’s Shanghai Tobacco Group Launches CNY 10.98 Million (Approximately US$1.53 Million) Procurement for Heated Tobacco Production Utility Equipment
China’s Shanghai Tobacco Group Launches CNY 10.98 Million (Approximately US$1.53 Million) Procurement for Heated Tobacco Production Utility Equipment
Shanghai Tobacco Group Co., Ltd., a tobacco manufacturing company under China National Tobacco Corporation (CNTC), has launched a public tender for heated tobacco products (HTPs) production utility equipment at its Shanghai Cigarette Factory. The project is valued at CNY 10.98 million and covers six combined air-conditioning units, electrical cabinets and control systems for production facilities. The procurement includes equipment design, supply, installation, commissioning and related training services.
Aug.07
Supreme Vape Revenue Rises 15% Despite UK Disposable Vape Ban
Supreme Vape Revenue Rises 15% Despite UK Disposable Vape Ban
UK consumer goods group Supreme said its vaping revenue rose 15% to £148.1 million in the year to March 31, 2026, despite the UK disposable vape ban taking effect during the period, while the company identified the Vaping Products Duty due in October as the next major industry milestone.
Regulations
Jul.03 by 2Firsts Perspectives
Germany Plans Tobacco Tax Hike, With Cigarette Prices Nearing €12 Per Pack by 2030
Germany Plans Tobacco Tax Hike, With Cigarette Prices Nearing €12 Per Pack by 2030
Germany plans to raise tobacco taxes over the coming years, potentially pushing the average price of a 20-cigarette pack to about €11.78 by 2030. The proposal also covers fine-cut tobacco, cigars, pipe tobacco and e-cigarette liquids.
Jul.14
CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
CCPIT Says Trade Friction Index for China-Related Electronics Sector Remains High, With Vape Products Among Areas of Focus
China Council for the Promotion of International Trade (CCPIT) held its July regular press conference on July 31, 2026, releasing the May 2026 Global Economic and Trade Friction Index. CCPIT spokesperson Yang Fan said the global trade friction index stood at 95 in May, remaining at a medium-to-high level. By industry, the electronics sector recorded the highest trade friction index among 13 monitored industries. In China-related trade frictions, the index stood at 93, with electronics products including drones, chips and vape products among areas where friction remained elevated.
Aug.03
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
FDA Authorizes Four More Nicotine Pouches as Review Pilot Expands Beyond Initial Decisions
The FDA has authorized four additional on! nicotine pouches, bringing the U.S. total to 30. The decision marks another outcome of the agency’s nicotine pouch review pilot, whose communication and review practices are now being applied more broadly across the category. It also extends Helix’s authorized portfolio from on! PLUS to the earlier on! line. Yet all FDA-authorized nicotine pouches still come from subsidiaries of PMI or Altria, underscoring how concentrated U.S. regulatory access remains.
Aug.05