Thread by @dmuthuk

Lot of queries and tagging me on Manu's blog. Hence this thread.

Every company and it's management has both strength and weaknesses. I see more strengths than weakness with ITC.

Management can't be labelled as laid back. It has acted with extreme dynamism during this pandemic.

Broadly concur with views on hotels. Hotels have been a great experience for customers & not shareholders.

Infotech is more of captive business and of insignificant size. So no point in discussing that.

In all other verticals, which are primary for ITC, they're doing well.

Double digit EBITDA margin in FMCG should happen in next 2 years. Building a FMCG business from the scratch and aiming to reach Rs.1 lakh crore turnover by 2030 is no joke. Management has proved that it is capable of walking the talk.

Savlon and B Natural are good acquisitions. They are among the leaders now in their respective categories. Can't compare Orkla's 68% acquisition in Eastern with ITC's 100% acquisition in Sunrise. Full control comes only at a premium.

Again it's no joke to be the leader selling 4 out of 5 cigarettes in India. Keeping low profile while talking about cigarettes should not be construed as laid back. ITC is literally a monopoly in Indian cigarettes. They're gaining market share too.

Management has implicitly accepted their capital mis-allocation in hotels and that's why has moved to asset right model. No point in blaming again and again for the capital already consumed and standing now as hotels.

No FMCG has 37,000 crores of cash in books or cash flow of Rs.15,000 crores every year. I believe cigarettes may be demerged only after FMCG too becomes a cash machine. So if at all it happens, not before 3 to 5 years.

Around Rs.25,000 crores of capex has happened for FMCG in the last decade. Major portion of capex to achieve target of Rs.1 lakh crore in FMCG is done & dusted. So surplus cash flows would get converted to hefty dividends. They've Rs.37,000 crores cash chest for any acquisition.