Adani Enterp. 1911.25↑72.25(3.93%)
Adani Ports 679.75↑10.10(1.51%)
Apollo Hospitals 4553.20↑37.75(0.84%)
Asian Paints 2982.85↑53.15(1.81%)
Axis Bank 865.95↑6.10(0.71%)
B P C L 368.35↑7.55(2.09%)
Bajaj Auto 4457.70↑9.85(0.22%)
Bajaj Finance 6390.25↑210.00(3.40%)
Bajaj Finserv 1374.45↑27.45(2.04%)
Bharti Airtel 789.10↑9.80(1.26%)
Britannia Inds. 4587.05↑59.95(1.32%)
Cipla 933.50↑12.85(1.40%)
Coal India 237.45↑0.55(0.23%)
Divi's Lab. 3282.55↑13.80(0.42%)
Dr Reddy's Labs 4968.00↑15.75(0.32%)
Eicher Motors 3339.30↓-9.05(-0.27%)
Grasim Inds 1759.85↑23.95(1.38%)
H D F C 2862.05↑74.30(2.67%)
HCL Technologies 1066.80↑7.85(0.74%)
HDFC Bank 1727.80↑34.65(2.05%)
HDFC Life Insur. 546.50↑7.80(1.45%)
Hero Motocorp 2514.50↑11.85(0.47%)
Hind. Unilever 2506.75↑20.75(0.83%)
Hindalco Inds. 445.50↑3.20(0.72%)
ICICI Bank 921.70↓-1.15(-0.12%)
IndusInd Bank 1134.60↓-11.55(-1.01%)
Infosys 1273.55↑4.40(0.35%)
ITC 424.60↓-2.55(-0.60%)
JSW Steel 738.70↑6.25(0.85%)
Kotak Mah. Bank 1947.60↑16.65(0.86%)
Larsen & Toubro 2356.90↑0.60(0.03%)
M & M 1231.70↓-3.75(-0.30%)
Maruti Suzuki 8800.60↑3.30(0.04%)
Nestle India 21693.75↓-181.95(-0.83%)
NTPC 176.35↓0.00(0.00%)
O N G C 161.00↓-0.15(-0.09%)
Power Grid Corpn 238.85↓-0.85(-0.35%)
Reliance Industr 2448.00↑27.90(1.15%)
SBI Life Insuran 1167.45↑30.55(2.69%)
St Bk of India 580.00↑9.50(1.67%)
Sun Pharma.Inds. 974.00↑10.40(1.08%)
Tata Consumer 775.50↓-5.90(-0.76%)
Tata Motors 480.80↓-2.90(-0.60%)
Tata Steel 111.05↑1.35(1.23%)
TCS 3220.70↑40.80(1.28%)
Tech Mahindra 1045.45↑5.85(0.56%)
Titan Company 2670.40↑16.35(0.62%)
UltraTech Cem. 7502.25↓-4.95(-0.07%)
UPL 731.50↓-8.30(-1.12%)
Wipro 383.70↓-1.40(-0.36%)

NTPC, IOC try 'ITC diversification strategy' to craft plans for clean fuels

Like tobacco major, the state-owned power generator and fuel retailer are seeking to transition from toxic fossil fuel businesses to green energy but rely on those margins to grow these new ventures

S Dinakar

Premium

Photo: Bloomberg

6 min read Last Updated : May 04 2023 | 4:24 PM IST

What do ITC, India’s biggest tobacco company, NTPC, India’s biggest power generator, and IOC, the country’s biggest crude oil refiner, have in common? Besides the abbreviated names, all three companies sell products that are considered toxic for human health. All three are also trying to transition from these businesses. In fact, NTPC and IOC are plucking leaves out of ITC’s diversification strategy to craft plans for clean fuels.

ITC realised the societal and regulatory implications of its core cigarette business decades ago, and entered hotels, retail, and the fast-moving consumer goods sector, all of which are relatively low-margin, high-investment business with lower entry barriers for competition, compared to selling a licensed product such as cigarette. So, ITC still makes most of its profits from brands like Classic, Wills and Gold Flake.

Two decades later, NTPC and IOC are trying something similar after their fos