I-T searches at Pipavav group firm in Mumbai, Delhi

Income tax sleuths today searched the premises of Nikhil Gandhi-promoted SKIL Group, which runs Pipavav Shipyard in Mumbai and in the national capital for suspected tax evasion

I-T searches at Pipavav group firm in Mumbai, Delhi Income tax sleuths today searched the premises of Nikhil Gandhi-promoted SKIL Group, which runs Pipavav Shipyard, in Mumbai and in the national capital for suspected tax evasion.

"We conducted the searches from this morning," an I-T source said, adding that though it is being treated as a case of "regular tax evasion" as of now, the department may look into the insider trading aspect as well. An SKIL spokesperson confirmed that I-T officers "visited" its offices in Mumbai and Delhi, and said that the management is cooperating. The I-T sources said they have questioned the brother and sister-in-law of Gandhi and the searches are expected to continue tomorrow. However the company chairman Gandhi, who is away in Delhi, has not been questioned yet, they added.

Shares of SKIL Group's flagship company, Pipavav Defence and Offshore Engineering, tanked by over 4% as the news of the searches trickled in during the trading hours, but recovered to close 0.95% down at Rs83.15 on the  BSE, whose 30-share Sensex closed 2.55% up at 16,958 points.

Pipavav has been in the news recently for a controversial joint venture it had forged with state owned Mazgaon Docks for construction of vessels for the Navy.

The private company's rivals, including Larsen & Toubro and ABG Shipyard, were quick to cry foul and also got the Defence Ministry to stall the proposal.
However, in a recent media report, a senior defence ministry official was quoted as saying that the ministry has found "no malafide" in selection of partner by the Mazgaon Dock. The fate of the JV is not yet clear.

In the late afternoon Pipavav Defence and Offshore Engineering was trading at around Rs81.80 per share on the Bombay Stock Exchange, 1.62% down from the previous close.

User

HUL eyes 13% market share in shampoos by FY13

Hindustan Unilever launched its Dove nourishing oil care range of products -- oil care shampoo, daily treatment conditioner, oil care weekly vita-oils repair mask and oil care vita-oil serum -- in the premium category

Hindustan Unilever (consumer goods giant) said it is looking at cornering over 13% of the shampoo market next fiscal with its leading hair care brand Dove in the next fiscal.

"We have already launched these products globally. Today we have launched it in this market. With this we expect to gain 13%-15% market share in FY13," HUL general manager, hair care business, Piyush Jain said.

He further said "the company entered the hair care segment in 2007 and since then we have achieved a market share of 10%."The shampoo market is estimated to be around Rs3,500 crore. To achieve the target, the company launched its Dove nourishing oil care range of products -- oil care shampoo, daily treatment conditioner, oil care weekly vita-oils repair mask and oil care vita-oil serum -- in the premium category which contains a blend of vita oils including coconut, almond and sunflower oils.

Dove, which initially started as soap brand, has diversified into the hair care and antiperspirant segments recently.

In the late afternoon, HUL was trading at around Rs326.05 per share on the Bombay Stock Exchange, 1.09% down from the previous close

User

The Life Insurance Corporation coughs up crores for tobacco investments

LIC has invested Rs3,600 crore in three tobacco companies in 2010-11, and has acquired more shares of ITC over the years. This has been revealed through an RTI query

Business moves do not get more ironical than this. When tobacco has been identified as the biggest preventable cause of death across the globe, public sector behemoth Life Insurance Corporation of India (LIC) has coughed up a huge amount to invest in tobacco companies.

LIC has invested more than Rs3,600 crore in three tobacco companies in 2010-11, an RTI query has revealed. Anti-tobacco activists and cancer specialists are outraged, and believe that it is unethical and ironical that India’s largest insurance company would invest in something that is injurious to health.

The information was sought by an activist’s consortium called Voices of Tobacco Victims. The public information officer’s (PIO) reply shows that LIC has invested Rs3,600 crore in three tobacco companies. Indian Tobacco Company (ITC) has seen the biggest investment of over Rs3,500 crore last year, while the other two companies are VST Industries and Dharmapal Satyapal (DS) Ltd, which manufactures smokeless (chewing) tobacco. LIC also owns shares of ITC, and the number has steadily gone up over the years—from 51 crore in 2009 to over 99 crore on 31 March 2011.

However, instances of the government holding shares in big companies are not new. The Specified Undertaking of the Unit Trust of India (SUUTI) held substantial shares in Axis Bank, ITC and Larsen and Toubro (L&T). These companies, though professionally managed, want the government to hold stock for fending off hostile takeover bids. British American Tobacco (BAT), the parent company of ITC, holds almost 32% stake in its Indian arm; and its attempts to gain a majority stake have been well-publicised.

Though the public insurer’s strategy may be perfectly legal, it is ethically incorrect for LIC to invest in tobacco companies without the prior approval of the investors, said Dr Vishal Rao, convener, Tobacco Free Bangalore and national executive member of the Federation of Head & Neck Oncology. “India is one of the early signatories to an international treaty called Framework Convention for Tobacco Control (FCTC). The huge investment by LIC in one of the biggest tobacco companies of India is surely against the spirit of FCTC,” he said.

In her reply, LIC CPIO (chief public information officer) Saroj S Dikhale has said that LIC does not charge any extra premium from tobacco users and smokers for issuing an insurance policy. “Depending on quantity, duration and type of tobacco consumption, while large numbers of customers are accepted without any extra premium, some of the applicants may be charged higher premium,” the reply said. However, it is not known how many claims have been rejected by LIC due to the insured’s habit of tobacco consumption.

According to a WHO (World Health Organization) study in 2010, around 34% of the population above 15 years in India consume tobacco in different forms. Minister of state S Gandhiselvam said in a written reply in Parliament a few months back that around eight to nine lakh Indians die every year due to diseases that result from tobacco consumption.

Dr PC Gupta, director, Shekharia Institute of Public Health said, “It is a shock that the investment with ITC has doubled in the last two financial years rather than coming down over the year. On one hand, the government is spending nearly Rs10,000 crore on treatment of tobacco-related illness and on the other hand, they are investing Rs3,500 crore in a leading cigarette manufacturer.”

A case against the harmful effects of gutka (chewing tobacco) is pending before the Supreme Court for an outright ban. “If the Supreme Court bans it, then what will happen to the invested public money in DS Group?” remarked Dr Pankaj Chaturvedi, associate professor at Tata Memorial Hospital, who has been working closely with the activist group.

Will LIC dump its tobacco shares? Only the health ministry can take a call—but the insurance giant is under the ambit of a different regulator.

User

COMMENTS

malq

5 years ago

It is also likely that Life Insurance Corporation of India invests in tobacco companies like LIC to assist its bottom line. A memorandum from Philip Morris to the new Czech governement was (apparently) leaked to the press in the early 90s. It argued that the medical cost of lung cancer and other smoking-related diseases was more than offset by the early deaths - and therefore lower pension payments - caused by the same diseases. In India, the same could be true at LIC - more smoking, earlier deaths, lower payouts.

citizenindia

5 years ago

personally i think banning tobacco is not a solution. as it will foster illegal industry , something our law will never be able to contain. the awareness has to come from within. try and discourage smoking so that it stops as a result of changed consumer behaviour. and if someone still wants to consume tobacco inspite of it being taxed and warned, so be it . gutka industry isnt regulated the way cingarette is. and itc isnt just a tobacco co anymore. its big in hospitality , retail , entering agri . tobacco is the cash cow. i think itc makes a good investment bet . the morality part can be debated though. if i were the govt, id sell itc stake to the foreign promoter at a premium, use the money to spread awarness against tobacco.

REPLY

Uma

In Reply to citizenindia 5 years ago

If bans dont work, then legalize the Opium trade too because it is source of several life saving drugs.

Why people try to teach morality to "Janta" only why cant the tobacco industry follow the path of morality?

How long are we going to be fooled that ITC is not a tobacco company!!!

If teaching values was so simple, world be such a nice place to live.

How can an industry blissfully watch the disaster unleashed by their own product and continue to blame it on "personal choice"?

Obama had access to the best health care and found it so difficult to quit smoking....what do you expect from poor Indians!

malq

In Reply to citizenindia 5 years ago

90% of ITC profits/revenues come from the tobacco business, one way or the other, and that's a simple fact. For a moment ignore the colonial vestiges and ownership aspects. And as for LIC:- LIC's Mission Statement, here:- ""Mission :- Explore and enhance the quality of life of people through financial security by providing products and services of aspired attributes with competitive returns, and by rendering resources for economic development." The first thing is "quality of life". http://www.licindia.in/mission_vision.ht... . . . So how does tobaccio enhance "quality of life"?

vivek p

5 years ago

Dear malq,

Thanks to RTI , today there is some avenue to get some info.But it does not give stariaght line info.

Having worked in insurance & banking profession (in PSUs as well), I know the inside rules and “actual practices”. If you come to know “how and why” decisions are taken in PSUs, you will feel that public money is channelized into private pockets of a team of sr. executives at insurers/banks and finance ministry officials.

Examples below explain you the true picture (and each example can be subject of a RTI query) -

1. Investment department of PSU insurance companies is influenced (bribed) by all concerned – brokers (for brokerages), companies (for funds), PE/investment guys to control short term as well as longterm movement of stocks. You will be surprised to know that how many times call money market is used to park funds to delay a particular level investment to help the influencers. The yearly fund available for investment vary from Rs. 5,000 crore to Rs. 100,000 crores depending upon the PSU insurer/bank. Add to this a 10 times bigger no. for the funds already invested in previous years. You get minimum funds available for investment/movement to the tune of Rs. 25,000 crore to more than Rs.100,000 crore (LIC) with each PSU entity.

2. Calculate 0.01% to 0.1% of the above amount and you will get the commissions/bribes numbers available as a bounty to be shared among....

3. Children of sr. executives are working in private banks/PE/investment arms of corporates who are given the jobs because of their fathers’ position only. You can understand the way investment decisions will be taken.

4. From one to three years before retirement/quitting PSUs, the sr. executives start advising the firms of the influences with the pre-agreement that after retirement/quitting, they will join them as consultants/advisors/directors. Check the consultants/stock/insurance brokers/TPAs working with insurance companies and behind majority of them are retired PSU executives. No doubt such brokerages/TPAs are always getting business irrespective of professional level of services given by them.

5. Bad debts or sunk investments –IRDA only came into existence in 1999 and for many years IRDA did not have a reporting format. Even today IRDA only receives report. It does not ask how & why of sunk investments. Insurers have shares (physical) of companies which even do not exist today.

6. Bribes are given both in cash and kind – five star hotel dinners, club memberships (paid by influencers), foreign trips with family all paid, jobs to children in corporates, shopping, movies tickets, wines, women and all…

7. At one point of time a union activist had extracted info that all sr. executives of a PSU insurer/bank had taken their families to Europe & America and found out actually who paid the hotel/airline bills. It was paid by the “influencers”. Incidentally, the Sr . executives also claimed the bills (for themselves, not the family) as a reimbursement of official tour travelling and hotel expenses. On enquiry, the hotel/ airlines revealed the real paying parties and the family details who accompanied them.

Sad part is that there are hundreds of such trips every year in insurers/banks and this kind of scam is still RUNNING in all PSUs. Even today personal trips of children/wives of sr. executives are financed by corporates by pre-arranged air-tickets/taxis/guest houses/shoppings all over India and internationally.

(Nothing happened even after reporting the facts with documents to Finance ministry as one Finance ministry official called the complainant and told him that he is being sent a letter for two two months training in London by the company).

8. On training I recall that one engineer at one of Oil PSU ( now sold to privates) saw in his personal file that he was nominated for attending a training program in Germany for 3 months where as he was never informed. On complaint to the Petroleum Minister with copy to Prime Minster, President of India , it was found that one official from the ministry had gone in his place. And it was happening for many engineers for many years. Later on all engineers were sent to Germany but no action was taken against the ministry officials.

9. Harshad Mehta was a clerk in investment dept of a PSU insurers and he leant from his seniors workings. No doubt he failed because he gambled on hundreds of crores by becoming a manager of the show rather than working like his seniors who only took bribes/favours of a few thousand to few lakhs.

10. I don’t file the RTI app as I know the facts and numbers and more importantly the authority to whom we’ll complain i.e. CVO of each insurer/bank and CVC organization are part of the same team. Many officials have done bungling of crores and after “managed minor punishment” (means censure/warning and no promotion for 3 years) they are back to prime postings with normal promotions. (It will be a another big report in itself how CVO and officials in the Vigilance/Audit departments are posted in PSU insurers/banks)

REPLY

Mohit

In Reply to vivek p 5 years ago

Great one Vivek, I have in the past tried to address such problems to Money Life folks as well as regulators but to no vain. The redent HDFC front running is a classic case how this will be muted by powerful Deepak Parekh. Both SEBI and IRDA keep mum when it comes to PSU - dont have to ask why. Yes in many ways both Private sectors and public sectors do play hand in hand when it suits them. Why dont you post this in facebook. We have to get some jouranalist to cover thiese stories as well.

uma

In Reply to vivek p 5 years ago

that is awesome....you seem to be a whistle blower.....you seem to be doing an ANNA! keep it up...dont lose heart.

vivek p

In Reply to uma 5 years ago

thanks for encouraging words. Real issue is the punishment mechanism is not good. For which we support ANNA's janlokpal so that at least those who are caught get due penalty.

malq

In Reply to vivek p 5 years ago

Dear Vivek P, thanks for writing in.

Please let us know if you would like to send copies of your correspondence to us c/o MoneyLife for possible follow up?

Thanks/VM

vivek p

In Reply to malq 5 years ago

Old cases' guilty parties are now retired and enjoying in private firms/consultancies.

Like ur exposure of SEBI, lot of dirty dealings are there in insurers/banks also including IRDA,RBI.

Sure I'll give you copies of new cases from now onwards.

Voice of Tobacco Victims

In Reply to malq 5 years ago

Dear Vivek P,
could you please share some of you knowledge and work done so far with the VoV team? You can write @[email protected]

vivek p

In Reply to Voice of Tobacco Victims 5 years ago

through this article I came to know about VOTV. But apart from ethical/moral/social angle , how can we stop them legally? I am happy to join you thorugh my little efforts.

Does fundamental right to life - Art 21 can be used in Supreme Court to force govt to ban tobaccco as it, in a way, restricts life?

B V Vijaya BE CIS

5 years ago

Each action has its own consequences. Here LIC invests to make profit by investing in “Good & Strong” shares available in the capital market. Neither it is producing cigarettes nor advices smoking.
If you think of ethics, well LIC should not invest in Tobacco companies. Mahatma Gandhi was against liquor & wanted people to ban. But all Govts get their major income from this sector. The expenses in solving liquor related crisis thru Police Dept, Judicial wing & financial loss to dependents of persons dying because of liquor, loss to Nation by virtue of loss of productivity of & social impact are far much more than the income the Govt. gets of this sector. So also with smoking.
Let each of us think on this element. The media should also think of their responsibility & not to high light or make more glamour by publishing such articles.
There TWO Mutual Funds who do not invest in shares of liquor manufacturing.
Media should also think of not glamorising / giving too much of importance for facts which are some times controversial. There are so many subjects which could be thought form the over all health of society & Nation. Let us think in the right direction.
MERA BHARAT MAHAN HAI

REPLY

uma

In Reply to B V Vijaya BE CIS 5 years ago

Vijaya, it is sad that a company that earns most of it profit from sale of a product that is designed solely to kill is considered is "good and strong" in your mind. I agree that liquor is equally disastrous but it boasts of safe level unlike tobacco that is harmful regardless of dosage and duration.

J V Bhat

5 years ago

Very sad to note that a company like LIC which was once the pride of India is nowadays in news for all the wrong reasons. Since the last decade LIC is undergoing a massive transformation. While a certain percentage of it may be good for the Insurer, it is equally important to note that there have been several protests in LIC where the employees have blamed the management for mismanaging the company. Secondly in 2005 or 06 it sponsored the Zee Cine awards by spending hundreds of crores, but later it was learnt that the Chairman at that time had some vested interests in that sponsorship. From then onwards LICs reputation has always been at stake. From controversies to large scale corruption. I think the CBI should initiate a proper unbiased inquiry of how LIC has been investing its funds for the past decade. It will surely open a can of worms but will also wipe off the stained corridors of LIC and LIC will once again be called the pride of the nation.

D N RAO

5 years ago

It is a shame on the part of LIC to invest Rs.3600 crores in TOBACCO companies which are ruining the lives of human beings. How come LIC Invests in TOBACCO companies without the approval from LIC Policyholders. Central Govt. officials should take stringent action against the erring officials of LIC for having invested the public money in the TOBACCO companies that are destructive to human beings. The concerned officials shall be dismissed from service. The invested money should be brought back and reinvested in constructive companies that are useful to human beings.

REPLY

UMA

In Reply to D N RAO 5 years ago

The current value of LIC's share in ITC is 20,000 crore. UTI has shares worth 18,000 crore as recently published. Other Govt agencies - Oriental, New India, General insurance companies have shares nearly 2000 crore each. It seems Govt of India is running this tobacco company!! What a shame!

malq

In Reply to D N RAO 5 years ago

DN Rao, thank you for writing in.

A simple RTI applicatio on the subject would be enough to start getting the truth out on this one.

Humbly submitted/vm

sapan

5 years ago

its ok no problem. NAV should go up.

sumana roy

5 years ago

So much of righteous indignation about an article that merely reports what an anti-tobacco association has said.
This smacks of the same intolerance shown by the guys who bashed up Prashant Bhushan.
But lets get serious... Is LIC increasing its stake in ITC only because it is a great investment opportunity?
Or is this a part of the strategy where so-called "professionally" managed companies - ITC, L&T wanted govt institutions to hang on to a chunk of their equity to prevent a hostile takeover. In ITC's case its largest shareholder BAT is seen as hostile by incumbent management and in L&T it happened after the Birla takeover attempt. Axis Bank is another example but for different reasons...

REPLY

UMA

In Reply to sumana roy 5 years ago

How can you label a tobacco company "responsible" and "professional". Every consumer product has a grievance redressal mechanism. Tobacco companies are the only once who leave their customer high and dry.....most of them have disease and disability but blame destiny not industry.

John Pinto

5 years ago

Does the MDT do any real research. then they will know that ITC is a diversified company with interests in many more things like FOOD, Consumer durables, FMCG, Agriculture, paper etc. Investment in ITC is much more that just investment in Tobacco and tobacco related products. Voices of Tobacco Victims and MDT is it one blind man leading another

REPLY

UMA

In Reply to John Pinto 5 years ago

one must know how to hide your ignorance. ITC's 90% profit still comes from cigarette! Diversification is a careful strategy to fool society, investors and government. Their entry into kid's FMCG ( biscuits, noodle, stationary, wafers) is a way to build their image among their potential cigarette buyer...kids and adolescents!

malq

In Reply to John Pinto 5 years ago

John Pinto, if ITC is a "diversified company", then all of us are the red-nosed reindeer and Yogi Deveshwar is Santa Claus. Barring hotels, where also much remains to be understood on realities, the core business of ITC does happen to be tobacco in all its different forms.

AND your good ITC has a lot to answer as far as Operation Berkshire goes, too . . . http://en.wikipedia.org/wiki/Operation_B... . . .

Humbly submitted. from Monghyr.

Raghav Jain

5 years ago

LIC earns huge profits by investing in Blue chip companies. ITC is a giant and needs no introduction. The profits earned by LIC are distributed among the policy holders in way of Bonus. It is in the interest of Public. LIC has nothing to do with cigarette smoking.

REPLY

malq

In Reply to Raghav Jain 5 years ago

Raghav ji, so if next week a well known "giant" like the Medelin Cartel group or the "D Company", both of whom also have plenty of legitimate businesses,decided to ask for funds from LIC, then on the basis of profits alone your due diligence would be complete, and you would have no objections?

Brilliant. Maybe you should apply for a post at ITC CorpComm/PR. Or wait, Pinto ji go gusaa aa jayega. . .

Humbly submitted/malQ

Manoja

In Reply to malq 5 years ago

Malq,

The last I heard, Medelin Cartel and D Company are both declared terrorist organisations or criminal organisations. So they will fail at the very first step of due diligence carried out.

Same is not the case with ITC. They are carrying on a perfectly legitimate business in an organised manner. Unless there is a law which declares smoking to be a criminal activity, I dont see any reason why ITC should not be a sound investment option.

malq

In Reply to Manoja 5 years ago

Manoja, the words I used was "like", in the case of Medelin, D Company or ITC. As far as laws pertaining to smoking are concerned, they are evolving, and you may be well advised to read the risks associated with, for example, the MSA:-

http://en.wikipedia.org/wiki/Tobacco_Mas...

There is a sufficient risk involved in investing in tobacco companies in India, too, which LIC is not empowered to place public funds into.

Is smoking a criminal activity in India? Yes, it is, increasingly so.

Can people be prosecuted for selling aids to smoking? Yes, they can.

Is ITC carrying out an organised business in a legit manner? Well, there does happen to be more than one school of thought here.

Humbly submitted.

UMA

In Reply to Manoja 5 years ago

Manoja ji, that is the irony. D company may have killed few hundred people and you call them terrorists. One million Indians die every year due to tobacco and you call them legitimate. It is indisputable that ITC is the leading cigarette maker of India. LIC is supposed to insure life and not ENSURE DEATH!

Dr Vaibhav G Dhoka

5 years ago

Investment by L I C or any other financial institution in any company without any malafide intention is RIGHT.After all any investment by them should be in the interest of of public. Because companies like ITC have entered in many many new business propositions and therefore should not be seen as wrong.

REPLY

Uma

In Reply to Dr Vaibhav G Dhoka 5 years ago

you need to know more about ITC and other tobacco companies...you seem to be too innocent. Tobacco has survived only because of malpractices and deceit. LIC can not not feign ignorance of facts that are well known to even common man.

SDM

5 years ago

This is a patently absurd argument that LIC must not invest in ITC (or other tobacco companies). Investment by LIC in ITC shares does not make LIC policy holders light up a cigarette

Extending the argument, maybe the Govt should stop tobacco cultivation?

Or allow manufacture of cars that can be driven above the speed limit!

REPLY

uma

In Reply to SDM 5 years ago

1. having 21% share in a company which earns 90% profits by sale of cigarettes holds LIC accountable for 20% of deaths caused by these products.

2. Govt can not stop tobacco cultivation because of the massive pressure of the tobacco lobby that enjoys huge political patronage. One of the NCP top leader is called BIDI king!

3. ITC doled out nearly 10 crore as political donations to all major parties in 2010-11!

4. Believe me, one can live without a cigarette...you cant without a car. I would certainly ban a particular car that kills every third user! This is exactly what tobacco does.

malq

In Reply to SDM 5 years ago

SDM ji, the argument is not absurd, it is very valid.

# From the point of view of life insurance, tobacco/smoking reduces the lifespan, thereby increasing premiums since payouts will end up being earlier.

# From the point of view of legalities, under the Companies Act Section 68, it would be interesting to know and see what disclosures ITC made to LIC about their products when soliciting funds.

Humbly submitted/vm

Deepak Khemani

5 years ago

Well MDT is only reporting the news. As far as LIC's investment in these companies goes it has be seen as only that. INVESTMENT period.
LIC as an investor invests crores of Policy holders' money for the long term(a typical LIC Endowment policy has a period of 15-20 years). These investments generate dividends and capital appreciation which is paid out as bonuses to policy holders every year. To see this investment in isolation is taking things a bit too far.
If it was wrong to invest in these companies then these companies should be banned and not allowed to make products that kill!

REPLY

uma

In Reply to Deepak Khemani 5 years ago

20,000 crore investment in a company that in your opinion should be banned from doing business! it is sad that you dont see anything wrong in it! LIC does not charge higher premium from smokers, it rejects claims if disease is related to tobacco. Isnt this sound paradoxical....who is the ultimate loser? The smoker! who is the biggest gainer - tobacco industry! We are the fools believing that someone will stop this trade of miseries and blood money!

John Pinto

In Reply to Deepak Khemani 5 years ago

Perfect.. Selling cigarets is not a crime.. Smoking them well that another matter . It is slow suicide ad that what the association of cancer victims should concentrate on.

malq

In Reply to John Pinto 5 years ago

Probably those who make more profits also out of this business of smoking are undertakers, right, "John Pinto"? Terrible choice of pseudonyms . . .

Govind Shanbhag

5 years ago

MDT - what is the big deal. ITC is a corporate with various activities and mfg.of cigarette is only one of their diversified activities. Why investment in ITC is big hue n cry ???

REPLY

John Pinto

In Reply to Govind Shanbhag 5 years ago

Every Choice has its consequence.You smoke you deserve cancer. LIC is right in investing in any company .. These associations should concentrate on helping people instead of targeting the Investors or the Cigarette companies.. This article is foolish

UMA

In Reply to John Pinto 5 years ago

john, go to the nearest cancer center or a hospital and witness the tragedy perpetrated by your favoured company! No one make conscious choices at 12 years of age ( age of tobacco initiation in India)! You are only pushed into it by shrewed marketing and peer pressure. By the time you become conscious, you are addicted and tobacco wont leave you till death!

malq

In Reply to John Pinto 5 years ago

There are deeper issues. There is excise evasion, for which ITC Directors went to jail, still unresolved. There is this business of selling loose cigarettes, which is not permitted as per law. There is the whole situation of resisting "smoking kills" labelling. There is the subject of clone marketing using tobacco brands for unrelated products.

LIC has a charter to the larger interests of the Nation. Not to take forward slow death and then pay for the medical bills also.

A movement to get LIC and other government agencies to stop lending to tobacco companies needs to be launched. And tobacco farmers need to be given an incentive to grow other crops which will support the other business interests of ITC. Win win for all.

Except John Pinto. Pinto ko gusaa kyon aataa hai, re? Is he from that undertaker's group?

UMA

In Reply to malq 5 years ago

malq, tussi great ho! Infact, ITC is investing in everything and indulging all forms of CSR except crop subsititution. Infact, Indian tobacco industry has been actively trying to derail alternative farming issues. In this whole trade, ITC is amassing vulgar profits while farmers remain where they were surrounded by poverty. Tobacco industry infact exploits farmers!

Hemant

In Reply to John Pinto 5 years ago

Well said.

We are listening!

Solve the equation and enter in the Captcha field.
  Loading...
Close

To continue


Please
Sign Up or Sign In
with

Email
Close

To continue


Please
Sign Up or Sign In
with

Email

BUY NOW

The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)