ITC Logo
Media Centre
Press Report

ITC to invest Rs 100 cr in renewable energy
The Hindu Business Line - 07 Sep 2012

In a bid to reduce its dependence on  fossil fuel, FMCG major ITC Ltd plans to invest Rs 100 crore in renewables over  the next two years.

Renewable energy, which currently  accounts for about 38 per cent of ITC’s total consumption, is estimated to meet  up to 50 per cent of its total energy requirement in the next five years.

The company has installed close to 70  MW of wind power projects across India and a 90 tonne-per-hour biomass fire  boiler at a total investment of approximately Rs 400 crore.

Use across units

According to a senior company official,  ITC’s paperboards unit at Bhadrachalam (Andhra Pradesh) and Kovai (Tamil Nadu)  use biomass, while its factories at Bangalore and Pune and hotels - ITC Windsor  (Bangalore), ITC Gardenia (Bangalore), ITC Rajputana (Jaipur), ITC Maratha  (Mumbai) and ITC Grand Chola (Chennai) - use wind power either completely or partially.

ITC is also in the process of assessing  its energy requirements across other units. “We are in the process of  identifying how best we can make use of renewable energy,” the official said.  The cost incurred for installing one MW of wind energy works out to be close to  Rs 16 crore, as compared with Rs 4 crore for conventional energy.

Cost dynamics

“Though capital expenditure in  installing non-conventional energy sources is higher, it will turn  cost-effective in the long run as prices of fossil fuels are expected to move  up,” he explained.

In 2011-12, the company spent nearly Rs 450 crore on power and fuel, compared with Rs 420 crore in 2010-11.

ITC, however, refused to divulge  details on the cost benefits likely to accrue through the renewable energy  projects.

According to V.Srinivasan,  research analyst, FMCG, Angel Broking, ITC’s investments in the renewable  energy sector is a corporate social responsibility activity.

“Investments in renewable energy might  not have any direct impact on its profitability,” he said.

Click here to know more about the ITC's Sustainability Initiative