HBI Staff | Hyderabad 
According to ET, British American Tobacco (BAT) is set to exit the hotels business of Indian conglomerate ITC following the latter’s decision to demerge its hospitality division. BAT, a long-time stakeholder in ITC, has reportedly chosen not to participate in the demerged entity, ITC Hotels Ltd, which is aimed at allowing ITC to unlock greater value for its shareholders.
ITC recently announced plans to spin off its hotels business into a separate entity, positioning it to operate independently while focusing on its core strengths in the luxury and business hotel segment. This move is in line with ITC’s long-term strategy to simplify its operations and enhance its growth prospects. By separating the hotels division, ITC aims to give it a more focused approach to expansion, capitalizing on India’s growing tourism and hospitality sector.
BAT’s decision to check out of the demerged business highlights the multinational’s strategic shift in priorities, as it continues to focus on its core business in tobacco and nicotine products. ITC’s hotels division, which has been a significant player in India’s hospitality industry, will continue its growth trajectory with an enhanced focus on operational efficiency and innovation in hospitality services.
This transition is expected to lead to a more agile and competitive entity under ITC Hotels Ltd, further bolstering the brand’s standing in the Indian and international markets.
Source : ET
