ITC not to exit tobacco business

Kolkata, Jul 21 (UNI) ITC Ltd today said it would not exit the tobacco business even though the non-cigarette businesses have contributed more than 50 per cent to its net turnover.

Replying to a query of the shareholders here, ITC chairman Y C Deveswar said, ''It will not be a responsible act on the part of the company to exit the tobacco area. A large number of farmers are dependent on tobacco farming in the country and we cannot suddenly abandon this business. We are a responsible company and we do business abiding by the law of the land.'' He said if cigarettes manufactured in the country were not available, the market would be flooded with contraband products from other parts of the country. The country will only lose the benefits of manufacturing, like employment in cigarette plants, he said.

He ruled out the possibility of entering the gutka or bidi business, which accounted for a much larger portion of tobacco consumption in the country.

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