From cigars to perfume sticks: The sustainable journey of ITC limited

Abstract

ITC Limited, once heavily reliant on tobacco, faced a strategic challenge in reducing dependence on a controversial product while maintaining profitability and public trust. Rising health concerns, regulatory pressures, and changing consumer preferences made tobacco unsustainable as a long-term focus. This case study examines ITC’s dual transformation: diversification into fast-moving consumer goods (FMCG), personal care, and agribusiness, and integration of sustainability into its operations. The company achieved carbon, water, and solid waste recycling positivity, while investing in renewable energy, rural development, and ESG reporting. These shifts required significant operational restructuring and brand repositioning to overcome legacy perceptions. The study highlights how ITC balanced strategic growth with environmental and social responsibility, offering insights into corporate reinvention in emerging economies. It also explores how ITC’s approach can inform policy frameworks that promote responsible business conduct and long-term value creation. By analysing ITC’s integrated approach to diversification and sustainability, the study contributes to the broader discourse on corporate transformation, ESG leadership, and the role of business in advancing sustainable development.