ITC redesigns cigarette portfolio after tax hike, earmarks ₹20,000 crore for growth

ITC is recalibrating cigarette pricing and accelerating portfolio innovation to contain illicit-market risk after the February 2026 tax revision. The company also plans to invest ₹20,000 crore over five years, while retaining room for value-accretive acquisitions.

— Filed Thu, 23 Jul, 2026, 21:58 IST · Source Business Standard · Companies · Updated

ITC is using calibrated cigarette pricing to limit illicit-market losses after higher taxes, while redesigning its portfolio through innovation. The conglomerate plans ₹20,000 crore of investment over five years and retains capacity for value-accretive acquisitions.

Why this matters

The move extends ITC’s recent cigarette-portfolio rework as tobacco taxes approached 70% and follows its agri business doubling revenue to ₹20,300 crore.

Retail-company signals are accelerating, up 1,056,700% QoQ.