IT stocks rout an overreaction; ITC using AI for productivity, efficiency: Sanjiv Puri

Mumbai, Feb 25 (PTI) Sanjiv Puri, the chairman and managing director of diversified group ITC, on Wednesday termed the sharp corrections in information technology stocks as an "overreaction" by investors.

Underlining that technology has always played an enabling role, Puri said the company with its genesis in the tobacco business and diversifying into sectors such as hospitality, FMCG and also IT services, uses AI for productivity and efficiency purposes.

"The market had a lot of overreaction. It has created a lot of overreaction," Puri told reporters on the sidelines of the annual NTLF event organised by IT industry's lobby grouping Nasscom.

"There are use cases which are helping us improve efficiencies, productivity in the factory, in the supply chain. There are use cases that are helping us address certain requirements which we are not able to address with tools earlier," Puri added.

The technology services industry has seen disruptions in the past as well, Puri said, pointing that concerns were raised when ITC decided to foray into the industry in 2000 around the Y2K time.

The company is using technology inputs across its businesses, Puri said, citing the example of the agri vertical where it is studying the weather patterns to assess the impact of rising temperatures across years.

When asked about the sluggish private capex, and ITC's plans, Puri said the company does not operate in businesses requiring heavy investments and added that it has a Rs 20,000 crore plan over the medium term.

The company will also be looking at acquisitions in an opportunistic way, he said, recalling that it undertook some acquisitions in the past. PTI AA MR