ITC Plans To Enter UAE Food Market Through Partnership (25-Feb-2010)
According to a report, ITC is planning to enter into a partnership with the Al Seer Group in order to enter the food market of the UAE and the Gulf Cooperation Council (GCC).
A company source said that as of now ITC does not market any of its products in UAE and therefore is planning to enter the UAE market in a big way for which it is planning to make alliance with the Al Seer Group who will distribute the ITC''s confectionary products in the market.
The products like wheat biscuits under its brand Sunfeast, cream and tea biscuits cookies, crackers, candies, eclairs and chews etc is planned by ITC to market in the UAE and GCC.
In 2003, ITC entered the biscuits segment with its brand Sunfeast and has now a market of nearly 10 per cent in this segment.
ITC, current turnover is above $5 billion and has a market capitalisation of $19 billion, is participating for the first time in the Gulfood exhibition. The firm displayed a number of its confectionery products in Dubai World Trade Centre.
ITC is currently trading at Rs.247.3, down by 0.08%.
The stock hit an intraday high of Rs.248.85 till now, as against the 52-week high of Rs.271.3.The stock hit a low of Rs.245.6 during the day. The stock had hit a 52-week low of Rs.155.75 on March 9, 2009.
The stock opens at Rs.248.05 at BSE. The total traded volume of the scrip on BSE till now stood at 121795.
ITC Ltd has an equity capital of Rs 380.44 crore as of 2009 Dec. The face value per share is Rs 1. At the current price of Rs 247.3, the P/E multiple stood at 28.8631912710995 with book Value of 35.97 and P/BV at 6.88.
The total shareholding pattern of the company as on Dec 2009 stood at Promoters- 0.00%, Institutional Investors- 50.60%, General Public- 11.64% and other investors- 37.76%.
Considering the current price of Rs. 247.3 at 3:34:00 PM , the stock had underperformed the market over the past one month till 25/02/2010 declined -3.34% as compared to the Sensex''s return of -0.17% and NSE Nifty''s -0.17 % returns.
Considering the current price of Rs. 247.3 at 3:34:00 PM , the stock had underperformed the market over the past one quarter till 25/02/2010 fell -4.07% as compared to the Sensex''s return of -3.92% and NSE Nifty''s -3.92 % returns.
Moreover, ITC has a strong foods division supplying packaged foods, snacks, confectionery and biscuits.
Earlier the group was in to manufacturing tobacco but in the past few years it has diversified its business into packaged foods, consumer goods, hotels, information technology, branded apparel and agri business.
On the other hand, the company officials attending Gulfood were tight lipped about their plans in the GCC market.
Meanwhile, with an objective to expand its presence, ITC Ltd. earlier this month said that it is eyeing to open 9 more Fortune brand of hotels during the next 10 months.
Currently, the company has the largest chain of hotels in India with a total of 110 hotels.
Mr. Pawan Verma, Senior Executive Vice-President (hotels division) of ITC Ltd. said that 6 hotels would come up in Delhi, while 1 each would be opened in Mumbai, Gandhinagar and Kolkata,
Fortune Park Hotels Ltd, a wholly-owned subsidiary of ITC Ltd. opened Fortune Park Vallabha with seven hotels last year and has an occupancy rate of 60 %. It is one of the fastest growing hotel chains, serving both the leisure and business travellers from across the globe.
Mr. Verma also said that Fortune would be adding 1,000 hotel rooms during 2010 to its existing 2,600 rooms with an investment of Rs. 500 crore.
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