ITC-ITC Hotels Demerger Update: Company Fixes Record Date Following NCLT Order - Details

ITC-ITC Hotels Demerger: ITC Limited has announced the demerger of its Hotels business into a separate entity, ITC Hotels Limited, effective January 1, 2025. The move follows the approval of the Scheme of Arrangement by the Hon'ble National Company Law Tribunal (NCLT), Kolkata Bench, in an order dated October 4, 2024.

The certified copy of the NCLT order was received by ITC Limited on December 16, 2024. As per the company’s statement, all conditions under Clause 28 of the Scheme of Arrangement, including filing of the NCLT order with the Registrar of Companies, West Bengal, have been satisfied. Consequently, the Appointed Date and Effective Date of the Scheme will both be January 1, 2025.

ITC’s strategic hotels demerger

The demerger is part of ITC’s reorganisation to unlock value for its stakeholders. By carving out the Hotels business into a standalone entity, ITC aims to facilitate focused management, attract dedicated investments, and accelerate growth opportunities for the hospitality segment. The move aligns with global trends where conglomerates streamline operations by separating their core and non-core businesses.

ITC’s Hotels business, which includes luxury brands such as ITC Hotels, WelcomHotel, Fortune Hotels, and WelcomHeritage, has established a strong presence across India. The segment has been a key contributor to ITC’s diversified portfolio, combining luxury experiences with sustainability-driven operations.

The demerged ITC Hotels Limited will operate as a fully independent entity, allowing it to pursue expansion strategies, attract new investments, and strengthen its market share in India’s booming hospitality sector. The hospitality industry in India is poised for substantial growth, driven by increased domestic tourism, rising disposable incomes, and global interest in the Indian market.

ITC’s multi-sector presence

Headquartered at Virginia House in Kolkata, ITC Limited is one of India’s largest conglomerates with a diversified portfolio spanning multiple sectors. In the FMCG segment, it leads with popular brands like Aashirvaad, Sunfeast, and Bingo!. The company is also a market leader in Paperboards & Packaging, offering sustainable packaging solutions. ITC plays a notable role in contributing to India’s agricultural economy through its Agri-Business segment. Additionally, it provides Information Technology services via ITC Infotech and is recognised for its luxurious offerings in the hospitality sector.