ITC Ltd , a diversified conglomerate, has announced the closure of its e-commerce platform itcstore.in after four years of operation. The company, known for its presence in various sectors including FMCG, hospitality, and agriculture, has decided to reassess its online strategy in response to changing market dynamics.

E-Commerce Platform Closure

The itcstore.in platform, which was launched in response to the Covid-19 pandemic, has been discontinued as the company believes it has served its intended purpose. This move marks a significant shift in ITC's digital retail approach, reflecting the evolving landscape of online consumer behavior post-pandemic.

Focusing on Third-Party Platforms

In a strategic pivot, ITC is now concentrating its efforts on third-party e-commerce platforms to drive online sales growth. The company has reported impressive results through its partnerships with popular quick-commerce and e-commerce platforms:

• Blinkit: ITC products are now available on this quick-commerce platform
• Instamart: Another quick-commerce channel where ITC has expanded its presence
• Amazon: The e-commerce giant continues to be a key distribution partner for ITC

Impressive Growth in Online Sales

The company's decision to focus on these third-party platforms appears to be paying off. ITC has reported a substantial 50.00% growth in sales through these channels, indicating a strong consumer preference for purchasing ITC products through established online marketplaces.

Strategic Implications

This move by ITC reflects a broader trend in the FMCG sector, where companies are increasingly partnering with established e-commerce and quick-commerce platforms rather than maintaining their own online stores. By leveraging the reach and efficiency of these platforms, ITC aims to:

1. Expand its digital footprint
2. Reach a wider customer base
3. Optimize its online distribution costs
4. Capitalize on the growing trend of quick-commerce in urban areas

As the digital retail landscape continues to evolve, ITC's strategic shift demonstrates the company's agility in adapting to changing consumer preferences and market conditions. The focus on third-party platforms may allow ITC to concentrate on its core competencies while benefiting from the established infrastructure and customer base of major e-commerce players.

In a significant market move, a substantial block trade of ITC Ltd shares was executed on the National Stock Exchange (NSE), highlighting investor interest in the diversified conglomerate.

Block Trade Details

A block of approximately 4,729,636 shares of ITC Ltd changed hands in a single transaction on the NSE. The trade, valued at Rs 197.32 crore, was executed at a price of Rs 417.20 per share.

Market Impact

Block trades of this magnitude often attract attention from market participants as they can potentially signal shifts in institutional holdings or strategic moves by large investors. However, it's important to note that the specific parties involved in this transaction have not been disclosed.

About ITC Ltd

ITC Ltd is a diversified conglomerate with a strong presence in various sectors, including:

• FMCG
• Hotels
• Paperboards and packaging
• Agri-business
• Information technology

The company is particularly known for its tobacco business but has been increasingly focusing on its non-cigarette FMCG portfolio in recent years.

This significant block trade underscores the ongoing interest in ITC shares among large-scale investors. As always, market participants will be keen to observe any potential impact on the stock's performance in the coming trading sessions.