ITC Plans ₹20,000 Crore Capex to Expand Sustainable Manufacturing and Strengthen Import Substitution

ITC Limited has proposed a medium-term capital expenditure plan of ₹20,000 crore across businesses with high multiplier impact as it expands manufacturing capacity, strengthens domestic value chains and scales up export-oriented operations, Chairman and Managing Director Sanjiv Puri said at the company's annual general meeting.

Puri said the investments are aimed at building globally competitive manufacturing capabilities while advancing sustainability, import substitution and export growth across the company's businesses.

ITC's leadership in the paperboards and paper segment is expected to be further strengthened through the proposed acquisition of Century Pulp and Paper, which will increase production capacity by more than 50% to approximately 1.5 million metric tonnes. The company has also established a state-of-the-art moulded fibre products facility to manufacture engineered compostable alternatives to single-use plastics for domestic and export markets.

The company is also expanding the use of digital technologies across its distributed manufacturing network. According to Puri, an AI-first digital backbone is improving operational efficiency, responsiveness and cost optimisation across manufacturing facilities. Several units now meet nearly 100% of their electricity requirements through renewable energy sources, while others have achieved platinum-rated green building standards and global Alliance for Water Stewardship (AWS) benchmarks. Women now form the majority of the workforce at several manufacturing units, he added.

Alongside capacity expansion, ITC is intensifying its focus on import substitution. Puri said the company pioneered the Bharat Fibre value chain for its paperboards business, helping green nearly 1.5 million acres while generating more than 270 million person-days of employment. Investments in domestic pulp, capsule manufacturing and décor paper production are expected to generate foreign exchange savings exceeding ₹17,500 crore over the next decade.

“For us at ITC, this is the larger meaning of Bharat Build Manufacturing in Action. To build globally competitive domestic manufacturing assets, substitute imports, enrich the environment and support sustainable livelihoods,” Puri said.