You are on page 1of 54

Indian Tobacco Company (ITC).

Presented by
Subrata Mahapatra
Supratik Mukherjee
Surya Sarthi Ghosh
Suvadip Saha
Tithi Ray
ITC. Touching your life. Everyday
ITC
• ITC market capitalisation- $ 30 billion with a turnover more than $ 6 billion.
• Has been highly acclaimed for its mode of business and growth by various
magazines like – FORBES, business today, business world ,business week and
the economic times
• ITC is an outstanding market leader in its traditional businesses of Cigarettes,
Hotels, Paperboards, Packaging and Agri-Exports
• it is rapidly gaining market share even in its nascent businesses of Packaged
Foods & Confectionery, Branded Apparel, Personal Care and Stationery,
Information Technology, Personal Care and Stationery and FMCG.
• ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion
in the last decade) through its agri-business and e-choupal.
• ITC employs over 26,000 people at more than 60 locations across India and
consistently rewarding more than 4,15,000 shareholders .
HISTORY AND EVOLUTION

• ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited. The name of the Company was changed from
Imperial Tobacco Company of India Limited to India Tobacco Company
Limited in 1970 and then to I.T.C. Limited in 1974. The Company now stands
rechristened 'ITC Limited'.
• It initially started with Cigarettes and Leaf Tobacco businesses.
• ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business.
• ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. Since then ITC's Hotels business has
grown to occupy a position of leadership, with over 100 owned and managed
properties spread across India.
• In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India.
• It has also made an immense contribution to the development of Sarapaka,
an economically backward area in the state of Andhra Pradesh. It is directly
involved in education, environmental protection and community
development.
• In 2004, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.
• In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and
British joint venture. In August 2002, Surya Tobacco became a subsidiary
of ITC Limited and its name was changed to Surya Nepal Private
Limited (Surya Nepal).
• In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to the
cigarette industry. 
•  In 1990, leveraging its agri-sourcing competency, ITC set up the Agri
Business Division for export of agri-commodities and they have reached
out to 4 million farmers in 10 states.
• A line of premium range of notebooks under brand “Paperkraft”was
launched in 2002. Classmate” over the years has grown to become India’s
largest notebook brand.
• In 2008, ITC repositioned the business as the Education and Stationery
Products Business and launched India's first environment friendly
premium business paper under the “Paperkraft” Brand and  entered new
categories in the office consumable segment with the launch of Textliners,
Permanent Ink Markers and White Board Markers in 2009.
• ITC also entered the Lifestyle Retailing business with the Wills Sport,
Wills Classic formal wear (2002), Wills Clublife evening wear (2003),
John Players. In 2006, Wills Lifestyle became title partner of the country's
most premier fashion event - Wills Lifestyle India Fashion Week.
• In 2000, ITC spun off its information technology business into a wholly
owned subsidiary, ITC Infotech India Limited.
•  It began in August 2001 with the introduction of'Kitchens of India' ready-
to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and
staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaadatta (wheat flour),
introduction of Sunfeast as the Company entered the biscuits segment and
snacks category with Bingo!
• In eight years, the Foods business has grown to a significant size with over
200 differentiated products under six distinctive brands.
• ITC now markets popular safety matchesbrands like iKno, Mangaldeep,
Aim, Aim Mega and Aim Metro.(2002)
• ITC's popular agarbattis brands include Spriha and Mangaldeepacross a
range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur,
Sambrani and Nagchampa.(2003)
• ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and
bath & body care products for men (Inizio Homme) and women(Inizio
Femme) in July 2005. 'Fiama Di Wills‘ and Vivel are its vivid products.
Vision and Mission
• Vision:-Sustain ITC's position as one of 
India's most valuable corporations
through world class performance,
creating growing value for the Indian 
economy and the Company’s
stakeholders
• Mission:-To enhance the wealth generating 
capability of the enterprise in a 
globalizing environment,
delivering superior and sustainable
stakeholder value
Chairman’s speech

Issue of bonus shares in the ratio 1:1.


Vision, vitality and values
continuously invest in existing and new capabilities
adoption of environment friendly technologies
 is expected to triple in size in FMCG sector to over Rs
3,55,000 crores by 2018 thus creating investment
opportunity for ITC of up to Rs. 8,000 crores over the next 7
to 10 years to drive growth in this sector.
an investment opportunity of up to Rs. 6,000 crores in
Paper, Paperboards & Packaging industry by increasing
the per capita consumption.
ITC’s Hotels carries an investment opportunity up to Rs.
9,000 crores in the next 7 to 10 years to fuel its growth
Agri-business will be progressively leveraged to widen
Company’s FMCG distribution network.
R & D : Investing in the game changers of tomorrow
ITC’s corporate strategies are

• Create multiple drivers of growth by developing a portfolio of world class businesses


that best matches organizational capability with opportunities in domestic and export
markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
• Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally competitive.
• Enhance the competitive power of the portfolio through synergies derived by
blending the diverse skills and capabilities residing in ITC’s various businesses.
• Create distributed leadership within the organization by nurturing talented and
focused top management teams for each of the businesses.
• Continuously strengthen and refine Corporate Governance processes and systems to
catalyze the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.
Strategy of Organization to manage
diversity of Portfolio

Formal 3-tiered governance structure:


 Board of Directors :
 Comprising executive (4) and non-executive directors (11)
 Strategic supervision

 Corporate Management Committee :


 Comprising executive directors and senior managers
 Strategic management

 Divisional Chief Executive & Divisional Management Committee :


 Executive management

ITC. Touching your life. Everyday


Board of directors
Chairman
Y.C Deweshwar

Executive Director
Anup Singh K.vaidyanath

Non Executive Director


Anil Baijal, R.K.Kaul,s.H Khan,
S.B.Mathur, D.K Mehrotra, H.G.
Powell, P.B Ramanujam, Anthony ,
B Vijayraghwan, Basudev Sen
divison
of tobacco • Kurush N Grant, T.V Ramaswamy, Hemant Malik, R Tandon
ITC. Touching your life. Everyday
Key persons
INTERNAL ENVIRONMENT
ANALYSIS
• HRM POLICY
• R&D
• OPERATIONS & LOGISTICS
• SUPPLY CHAIN

ITC. Touching your life. Everyday


CORPORATE SOCIAL
RESPONSIBILITY

Healthcare services have develop water and forest ITC offers facilitation to
been provided to over resources to enhance soil farmers to form agri-
45,000 mothers-at-risk fertility, business societies, pool
and children below 5 adopt soil and water knowledge and resources,
Women join their ITC management practices, improve productivity and
supported self-help quality
the teachers at village ITC
cow artificially Supplementary Learning Over 8 years, ITC has
inseminated at ITC’s cattle Centre persuaded assisted nearly 2,700
development centre parents to send children families to construct their
to evening coaching own sanitary units.
ITC assists rural families to
construct low cost classes at the Centre apply superior farming
sanitary units for their methods to improve
homes quality and quantity of
farm yields.

ITC. Touching your life. Everyday


Business
Branded
Hotel
Apparel

Stationery Cigarett
es

Package Incense
d Foods Sticks

Paperbo Personal
ards Care

Informa
tion Safety
Technolo Matches
Agricult
gyITC. Touching your life. Everyday
ural
Industry
FMCG
• It is ITC's strategic intent to secure long-term growth by synergizing and
blending the diverse pool of competencies residing in its various businesses to
exploit emerging opportunities in the FMCG sector

• Over the last few years, ITC has rapidly scaled up presence in its newer
FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing,
Education and Stationery products, Personal Care products, Safety Matches
and Incense Sticks (Agarbatti) with Segment Revenues growing at an
impressive compound annual growth rate of 38% during the last 5 years.

• The Company’s unwavering focus on quality, innovation and differentiation


backed by deep consumer insights, world-class R&D and an efficient and
responsive supply chain will further strengthen its leadership position in the
Indian FMCG industry

ITC. Touching your life. Everyday


ITC’s FMCG Portfolio

• Cigarettes & Cigars


• Foods
• Lifestyle Retailing
• Personal Care
• Education & Stationery
• Safety Matches
• Agarbattis
ITC. Touching your life. Everyday
Cigarettes & Cigars
• ITC is the market leader in cigarettes in India. It commands 70% of
India’s Rs.1300 bn domestic market. With its wide range of invaluable
brands, it has a leadership position in every segment of the market. It's
highly popular portfolio of brands includes Insignia, India Kings, Classic,
Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and
Flake. Out of the top 10 brands in India, 6 belong to ITC.
• The Company has been able to build on its leadership position because of
its single minded focus on value creation for the consumer through
significant investments in product design, innovation, manufacturing
technology, quality, marketing and distribution
• ITC's pursuit of international competitiveness is reflected in its initiatives
in the overseas markets. In the extremely competitive US market, ITC
offers high-quality, value-priced cigarettes and Roll-your-own solutions.
In West Asia, ITC has become a key player in the GCC markets through
growing volumes of its brands.
• ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru,
Munger, Saharanpur and Kolkata. These factories are known for their high
levels of quality, contemporary technology and work environment.
ITC. Touching your life. Everyday
COMPETITOR ANALYSIS
 The cigarette market in India has 3 other major players
•  Godfrey Phillips India (GPI), a Philip Morris affiliate,13%
of market share
•  Vazir Sultan Tobacco (VST), a BAT affiliate, 13% of the
total market share
•  Golden Tobacco Company (GTC) with 8% of the market
share.
 Domestic competitors
• Kanhayya tobacco
• MR tobacco
• Sapna enterprises
• Sudarshan tobacco
 ITC still attains a gigantic market share of 66%
ITC. Touching your life. Everyday
Foods

• The Foods business is today represented in 4 categories in the market- Ready


To Eat Foods, Staples, Confectionery, Snack Foods.

• ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the Kitchens of India brand

• In order to assure consumers of the highest standards of food safety and


hygiene, ITC is engaged in assisting outsourced manufacturers in
implementing world-class hygiene standards through HACCP certification

• The unwavering commitment to internationally benchmarked quality


standards enabled ITC to rapidly gain market standing in all its 6 brands-
Kitchen’s of India, Aashirvaad, Sunfeast, mint-o, candyman and Bingo!
•  
ITC. Touching your life. Everyday
Lifestyle Retailing
• ITC's Lifestyle Retailing Business Division has established a nationwide
retailing presence through its Wills Lifestyle chain of exclusive specialty
stores.
• With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to
the male youth of today.

• With its brands, ITC is committed to build a dominant presence in the apparel
market through a robust portfolio of offerings.

ITC. Touching your life. Everyday


Personal Care

• In line with ITC's aspiration to be India's premier FMCG company, recognised


for its world-class quality and enduring consumer trust, ITC forayed into the
Personal Care business in July 2005.

• ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills',
'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received
encouraging consumer response and is being progressively extended
nationally.

• Extensive insights gained by ITC through its numerous consumer


engagements have provided the platform for its R&D and Product
Development teams to develop superior, differentiated products that meet the
consumer's stated and innate needs. The product formulations use
internationally recognised safe ingredients, subjected to the highest standards
of safety and performance.
ITC. Touching your life. Everyday
Packaging
• ITC's Packaging & Printing Business is the largest value added converter of
paperboard packaging in South Asia.
• Its client list includes several well-known national and international
companies like Nokia, Colgate Palmolive, Pernod Ricard, Diageo,
British American Tobacco, Philip Morris International, Agio Cigars,
UB Group, Tata Tetley, Tata Tea, Reckitt Benckiser, Radico
Khaitan,etc
• Product Lines
ITC's Packaging Business has 3 major product lines
• Carton Board Packaging
• Flexible Packaging
• Tobacco Packaging
• ITC Packaging has also pioneered offering of Green Packaging which
includes usage of raw material from sustainable sources and converting it in a
facility which is 100% powered by renewable WIND ENERGY.
PRODUCT LINES OF ITC’S
PACKAGING BUSINESS
• FLEXIBLE
PACKAGING • CARTON PACKAGING

• TOBACCO • GREEN PACKAGING


PACKAGING
CLASSMATE-an ITC product
• .
ITC launched its Classmate brand in 2003 with the notebooks category By
2007, Classmate became the largest Notebook brand in the country.
• The papers used in Classmate and Paperkraft notebooks are superior in quality
and environment-friendly.
• Classmate papers are safe and certified non-toxic.
• Classmate added new products to its portfolio which now consists of
notebooks, pens, pencils, mechanical pencils, math instruments, erasers and
sharpners.
• CLASSMATE NOTEBOOKS • CLASSMATE GEOMETRY
BOX

• CLASSMATE SHARPNERS • CLASSMATE PENS


PAPERKRAFT
• Paperkraft is the lead provider of all premium executive stationery needs.
• The Paperkraft range of products aims at satisfying the stationery and office
consumables needs of office executives and working professionals.
• The current Paperkraft portfolio includes Premium Business Paper, Paper
Stationery, Markers and Highlighters.

• Paperkraft Premium Business Paper • Paperkraft Paper Stationery

• Paperkraft Markers
ITC's Agri-Business
 One of India's largest exporters of agricultural products
 Farm linkages in 14 states covering Soya, Wheat, Marine products,
Coffee etc.
 Focus on value added agri commodities
 Unique CRM program in commodity exports
 Leveraging IT for the transformational ‘e-Choupal’ initiative
 Rural India’s largest Internet-based intervention
 Over 40,000 villages linked through 6500 e-Choupals
servicing over 4 million farmers
 Distinctive sourcing capability for ITC’s Foods business.
e-Choupal
• ITC's Agri Business Division has conceived e-Choupal as a more efficient supply
chain aimed at delivering value to its customers around the world on a sustainable
basis.
• Launched in June 2000, 'e-Choupal', has already become the largest initiative
among all Internet-based interventions in rural India
• The Value Chain-Farm To Factory Gate
e-Choupal(contd)
The Model in Action
• 'e-Choupal' leverages Information Technology to virtually cluster all the value
chain participants, delivering the same benefits as vertical integration does in
mature agricultural economies like the USA.
• Real-time information and customized knowledge provided by 'e-Choupal' enhance
the ability of farmers to take decisions and align their farm output with market
demand and secure quality & productivity.
• With a judicious blend of click & mortar capabilities, village internet kiosks
managed by farmers - called sanchalaks - themselves, enable the agricultural
community access ready information in their local language on the weather &
market prices, disseminate knowledge on scientific farm practices & risk
management, facilitate the sale of farm inputs and purchase farm produce from the
farmers' doorsteps.
• 'e-Choupal' services today reach out to over 4 million farmers growing a range of
crops - soyabean, coffee, wheat, rice, pulses, shrimp.
Comparison with Haryali Kisan Bazar
Hariyali
Other companies
kisaan bazaar
Loan for pass
through to
farmers Extension service

ICICI Bank Farmers

Produce procurement
Repayment of
loan with interest
DSCL

ITC. Touching your life. Everyday


ITC. Touching your life. Everyday
ITC Hotels
•ITC Welcomgroup, India's premier chain of luxury hotels was launched on
October 18, 1975, with the opening of its first hotel - Chola Sheraton in
Chennai

•Over 100 hotels in more than 80 destinations

•Second largest hotel chain in India

•The group today operates under several distinct brands:


ITC - Luxury Collection Hotels
WelcomHotel Sheraton Hotels
Fortune Hotels, which has 54 hotels with 4446 rooms in 41 cities across
India
Welcome group of Heritage Hotels

•Its restaurants Bukhara, Peshawari, Dakshin, DumPukht and Kebabs &


Kurries are well known cuisine brands today.
ITC. Touching your life. Everyday
Achievements
•ITC’s new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia
was conferred the highest rating for green buildings in the world –the
LEED India Platinum Rating.

•This recognition makes it the world’s largest platinum rated hotel and is
yet another manifestation of ITC’s leadership in Sustainability Practices

•It is the only company in the world to be carbon positive, water


positive and solid waste recycling positive.
Reports on ITC Hotels
for the year 2010
• The aftermath of the terrorist attack in Mumbai in
November 2008, the swine-flu pandemic and the general squeeze on
corporate travel combined to adversely affect the performance of the
Indian hotel industry during the year 2010

• The impact was particularly severe during the first half with occupancies
and average room rates witnessing steep declines

• Given the adverse business environment, Company’s hotels business


posted a 9% decline in Net Revenues during the year though the business
maintained its leadership position in terms of operating efficiency

• The chairman is still hopeful about investing in this sector because The
World Travel and Tourism Council (WTTC) estimates that the Indian
travel and tourism industry will grow at 12% annually until 2019,
requiring an additional 50,000 rooms over the next 2 to 3 years
Future Plan of Action
• The company is planning to invest $2 billion in hospitality
business in next few years which is one of the thrust areas for investment of ITC along with
FMCG and paper. It may be noted that the hotel division of ITC has a turnover of over Rs
1,000 crore.

• Construction activity of the new super luxury properties at Chennai and Kolkata are
progressing satisfactorily

• In pursuit of Company’s ‘Triple Bottom Line' objectives, the business has and will be
investing in wind energy to provide clean power to its Mumbai property, the ITC Maratha.
Additionally, solar energy is being used to produce steam at the ITC Maurya, New Delhi and
the ITC Royal Gardenia, Bengaluru.

• ITC Hotels , is foraying into retail mall and service apartments. Most of the new mega hotel
projects of the company will have luxury retail space and service apartments. It will be part of
ITC's strategy to de-risk the hotel business as hospitality is highly seasonal business. The
company would introduce the new business model in ITC Grand Chola in Chennai(40,000
square feet of luxury retail space).
ITC info-tech
•Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of
global IT services and solutions.
•The company services industries including, Banking Financial Services &
Insurance (BFSI), Consumer Packaged Goods (CPG), Retail,
Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.
•ITC Infotech's leadership capabilities also accrue from business critical
engagements with leading organisations across five continents, and a service
delivery footprint spanning over 140 countries.
•This section also aims at the motive of people first and has got many awards and
recognition under its belt.
•The company became the first Indian IT company to receive the prestigious
Social Accountability (SA) 8000:2008 certification. SA8000 is widely accepted
as the most viable and comprehensive international workplace management
system.

ITC. Touching your life. Everyday


Group of Companies
SUBSIDIARIES
1. ITC INFOTECH
2. SURYA NEPAL PRIVATE LIMITED.
3. LANDBASE
4. WIMCO LIMITED
5. KING MAKER MARKETING INC.,USA
6. TECHNICO PTY LIMITED.,AUSTRALIA
7. RUSSELL CREDIT LIMITED.
8. SRINIVASA RESORTS LIMITED
9. FORTUNE PARK HOTELS LIMITED
10.BAY ISLANDS HOTELS LIMITED
11.GOLD FLAKE CORPORATIONS LIMITED

ITC. Touching your life. Everyday


JOINT VENTURES
1. MAHARAJA HERITAGE RESORTS LIMITED
2. ITC FILTRONA

ASSOCIATE COMPANIES
3. GUJRAT HOTELS LIMITED
4. INTERNATIONAL TRAVEL HOUSE

ITC. Touching your life. Everyday


ITC Ltd - BCG Matrix

•Agri Business •FMCG-Foods


•Hotels
G •Paperboards &
•ITC Infotech
R Packaging
O
W
T
H •Branded
•FMCG- apparel
Cigarettes •Packaged
foods

MARKET SHARE
STRENGTHS

1. Managing diverse business. ITC has 105 subsidiaries connected with its various operations.

2. Wealth of local knowledge & international expertise helps it to be globally competitive.

3. High quality standard products & services

4. Excellent export earnings

5. ITC used its experience of transporting and distributing tobacco products to remote and distant
parts of India to the advantage of its FMCG products

6. Excellent brand making capability helping it to diversify it into retailing ,it & hotels segments

7. Agri-export segment showing excellent growth of 28 %


WEAKNESS

1. Diversification into various lines which are unrelated

2. High competition from established brands which has resulted in reduction in profit
margins.

3. Steep increase in cigarette taxes has adversely affected the revenue earned as the revenue is
mainly earned from cigarettes

4. Due to high price of cigarette, consumers are switching to other cheaper forms of tobacco

5. Its hotel industry has still not created a big share in the market size
OPPORTUNITIES

1. Big untapped market available for cigarettes , hotels , it, retail garment, packaging & agricultural
products

2. Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be
developed using strategies of market development, product development and marketing
penetration.

3. Per capita consumption of personal care products in India is the lowest in the world
offering an opportunity for ITC's soaps, shampoos and fragrances under their Wills brand

4. Proper publicity of the hotels would increase its brand image & revenue.
THREATS

1. Negative publicity Ban on smoking, could affect its cigarette segment

2. Excise duty on unfiltered cigarettes less than 60mm in length was


increased 387% last year, Hike was 142% for those between 61mm
and 70mm long.

3. High competition from established brands on all fields be it hotels,


FMCG, Agribusiness

4. Competition from unbranded products

5. Due to terrorist attacks the tourism industry has taken a back seat
which would affect the hotel segment
FROM ANNUAL REPORT 2010

ITC. Touching your life. Everyday


Segment wise Revenue during
FY 2008-2011
16%

FMCG - Cigarettes
45%
Hotels
Paperboards,Paper &
20%
Packaging
Agri Business
FMCG - Others

15%
4%

ITC. Touching your life. Everyday


Segment wise Gross and Net Sales from operations
Twelve Months
ended
Quarter ended Quarter ended 31.03.2010
      31.12.2010 31.12.09
 (Rs. in Crores) (Rs. in Crores)
Segment Revenue (Rs. in Crores)  
a) FMCG - Cigarettes - Gross 5236.26 4422.53 17283.03
- Net 2772.60 2398.95 9321.15
- Others - Gross 1104.19 891.75 3641.68
- Net 1102.13 890.01 3633.90
Total FMCG -
Gross 6340.45 5314.28 20924.71
-
Net 3874.73 3288.96 12955.05
b) Hotels - Gross 303.25 264.51 910.81
- Net 281.63 247.65 850.71
Agri Business
c) - Gross 1066.74 905.16 3862.14

- Net 1066.74 905.16 3862.14


Paperboards,
Paper &
Packaging -
d) Gross 916.67 845.31 3233.61

-
Net 877.33 811.80 3107.79
Total - Gross 8627.11 7329.26 28931.27
- Net 6100.43 5253.57 20775.69
Less : Inter-
segment revenue
- Gross 661.84 667.82 2671.67

- Net 646.94 654.01 2622.50


Gross sales /
Income from
operations 7965.27 6661.44 26259.60
Net sales / Income from operations 5453.49 4599.56 18153.19
Segment wise Profit
(Rs. in Crores) (Rs. in Crores) (Rs. in Crores)
Segment Results      
a) FMCG - Cigarettes 1532.95 1309.84 4938.12

- Others (73.60) (86.03) (349.51)

Total FMCG 1459.35 1223.81 4588.61

b) Hotels 88.60 76.29 216.64

c) Agri Business 141.08 104.08 436.36

Paperboards,
Paper &
d) Packaging 191.42 201.41 684.26

Total 1880.45 1605.59 5925.87


Less : i) Interest (Net) 22.96 10.87 53.36
ii) Other un-allocable income net of un- (173.78) (106.30) (142.80)
allocable expenditure

Profit Before Tax 2031.27 1701.02 6015.31


Tax Expense 642.19 556.85 1954.31
Profit After Tax 1389.08 1144.17 4061.00

ITC. Touching your life. Everyday


Financial analysis
2009-10
Key Economic Indicators Rs. Crores
 Gross Turnover 26260

 Market Capitalisation 100475*

 Profit Before Tax 6015


 Profit After Tax 4061

 EPS – Rs 10.73
 Net Worth 14064

 Book Value per Share (Rs.) 36.8

 Capital Employed 14957


* Market Capitalisation as on 31/3/10

ITC. Touching your life. Everyday


Ratio analysis

ITC. Touching your life. Everyday


CONCLUSION

• ITC promoting their brands through advertisement campaign as well as


door to door promotion.
• ITC is also focusing on Retailers and Wholesalers to promote their brand.
• The demand for some of their product is low, because people don’t
know about their brands very well.
• ITC knows their strength and weakness in the personal care market, so
they are applying new concept to overcome their weaknesses.
• ITC now offering more margins, exiting offers and long credit period to
retailers and wholesalers.

ITC. Touching your life. Everyday


THANK YOU

ITC. Touching your life. Everyday

You might also like