ITC Ltd is close to finalising a joint venture agreement with an international trading house for giving a fillip to its international trading activities.
Announcing this at a press conference in Calcutta shortly after the company's board met to declare the annual results for 1997-98, the company chairman Y C Deveshwar said that international trading would continue to be one of ITC's core areas of focus.
"We will continue commodity exports to enhance foreign exchange earnings. We are seeking a strategic alliance with an international player to strengthen our hands on this business", said Deveshwar.
The ITC chairman also said that they were scouting for suitable partners for joint venture either through technical collaboration or equity participation, for the speciality paper division, which is a necessary input to cigarette manufacture. "We have got a shortlist of international players and we should be able to strike an arrangement to benefit the growth of this business", said the ITC chairman.
Y C Deveshwar also unveiled major plans to internationalise the ITC Hotels chain and had already begun to look overseas, especially in the Far East for possible acquisitions, against the backdrop of diminished currency in recent times in these countries. He also said that unlike the past, ITC will itself make substantial investments into ITC Hotels.
Commenting on the dismal performance of associated firm ITC Bhadrachalam, Deveshwar pointed out that out of the Rs 49 crore net losses incurred in 1997-98, Rs 40 crore has been accounted for provisioning for ITC Bhadrachalam's financial services subsidiary, which is steeped in losses.
The chairman said that ITC Bhadrachalam was in the process of winding down its financial services subsidiary. He also promised full support for reviving ITC Bhadrachalam.
He also said that the judicial manager of ITC Global had approached ITC for financial assistance for creditors' dem-ands to be fulfilled.
Deveshwar further said that ITC was willing to pay out $ 26 million provided all creditors rank pari passu. ITC is itself a creditors of ITC Global, its wholly owned subsidiary headquartered in Singapore.
