ITC focuses on cost cuts over price hikes as input costs rise, says CMD Sanjiv Puri

ITC prioritises cost efficiencies over price hikes to manage inflationary pressures, Chairman and Managing Director Sanjiv Puri said, indicating that the company is taking a calibrated approach even as input costs rise across segments.

Speaking to exclusively to CNBC-TV18, Puri said the company’s first response to inflation is internal optimisation rather than passing on higher costs to consumers. “Our approach is to first manage costs through internal efficiencies and only then pass them on to consumers,” he said, adding that ITC has implemented only “some marginal increases where relevant” so far.

The maker of Aashirvaad and Sunfeast products is witnessing inflation in key raw material categories, particularly those linked to petrochemicals. Packaging materials and edible oils are among the major cost drivers, while chemicals are also impacting segments such as paperboards. However, Puri indicated that the overall inflationary pressure for ITC is lower than what some peers have reported.

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Puri said inflation could intensify if global factors, especially tensions in West Asia, persist. Higher crude oil prices are already feeding into input costs, and their impact may gradually be passed on to consumers as inventory buffers reduce. This, he cautioned, could influence demand if price increases become more widespread.