Professional Documents
Culture Documents
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
Executive Director
Anup Singh K.vaidyanath
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.
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.
• ITC made its entry into the branded & packaged Foods business in August
2001 with the launch of the Kitchens of India brand
• With its brands, ITC is committed to build a dominant presence in the apparel
market through a robust portfolio of offerings.
• 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.
• 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
Produce procurement
Repayment of
loan with interest
DSCL
•This recognition makes it the world’s largest platinum rated hotel and is
yet another manifestation of ITC’s leadership in Sustainability Practices
• The impact was particularly severe during the first half with occupancies
and average room rates witnessing steep declines
• 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.
ASSOCIATE COMPANIES
3. GUJRAT HOTELS LIMITED
4. INTERNATIONAL TRAVEL HOUSE
MARKET SHARE
STRENGTHS
1. Managing diverse business. ITC has 105 subsidiaries connected with its various operations.
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
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
5. Due to terrorist attacks the tourism industry has taken a back seat
which would affect the hotel segment
FROM ANNUAL REPORT 2010
FMCG - Cigarettes
45%
Hotels
Paperboards,Paper &
20%
Packaging
Agri Business
FMCG - Others
15%
4%
-
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
Paperboards,
Paper &
d) Packaging 191.42 201.41 684.26
EPS – Rs 10.73
Net Worth 14064