ITC’s 25 Years of Liberalisation: From Diversification to Responsible Competitiveness

1. Liberalisation and Transformation of Indian Business

Economic liberalisation shifted Indian companies from a relatively protected environment to a competitive and globally integrated economy.
ITC had to replace older technologies and practices with world-class manufacturing processes.
The transition required a change in managerial mindset—from dependence on limited domestic options and “jugaad” towards global best practices, technology and efficiency.
ITC's experience reflects how Indian firms adapted to liberalisation, globalisation and rising competition.

ITC expanded beyond cigarettes into FMCG, agriculture, paperboards, hotels and information technology.
Major milestones:

Non-cigarette FMCG revenues increased from about ₹10,000 crore to ₹24,000 crore between FY17 and FY26, reflecting faster growth after greater strategic focus.
The ITC Next strategy focuses on strengthening growth and profitability across businesses.
The company's experience demonstrates the importance of diversification with strategic focus, rather than diversification for its own sake.

ITC entered markets dominated by established domestic and multinational brands by leveraging its existing strengths.
Aashirvaad benefited from synergies between:

In paperboards, ITC developed a domestic fibre value chain through plantations, pulping technology and larger manufacturing capacities, reducing dependence on imported pulp.
The broader lesson is that Indian firms can improve competitiveness by combining local resources, technology, innovation and supply-chain capabilities.

ITC describes its approach as “responsible competitiveness”, combining commercial performance with long-term stakeholder value.
Competitiveness increasingly depends on:

The company's emphasis on developing entrepreneurial talent highlights the importance of human capital and organisational learning in sustaining competitiveness.
Building trust with customers, employees, partners and other stakeholders can become a long-term source of competitive advantage.

Liberalisation creates opportunities but also exposes firms to global competition and technological disruption.
Indian enterprises need to continuously upgrade technology, develop skilled talent and invest ahead of the curve.
Diversification should be supported by core institutional capabilities and market opportunities.
Domestic value chains can improve resilience and reduce excessive import dependence.
The ITC experience illustrates the broader transition of Indian businesses from protection-driven competitiveness to innovation-driven and globally benchmarked competitiveness.