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The various
SBUs of ITC limited can be assumed to be taken in the context of the BCG
matrix,then the agro business, hotels and paperboards and packaging comes
under the star categorywhere they are the units with a high market share in a
fast-growing industry. The hope isthat these
Stars become the next cash cows
.The FMCG and cigarettes industry are the units with high market share. These
units typicallygenerate cash in excess of the amount of cash needed to maintain
the business.
They are to be"milked" continuously with as little investment as possible, since
such investment would be wasted in anindustry with low growth.
The ITC InfoTech comes under the dogs category, or more charitably called
pets
, are units withlow market share in a mature, slow-growing industry. These units
typically "break even",generating barely enough cash to maintain the business's
market share.

The FMCG etc are the


S
BUs that come under Question marks (also known as problem child) aregrowing
rapidly and thus consume large amounts of cash, but because they have low
marketshares they do not generate much cash. The result is large net cash
consumption. A questionmark has the potential to gain market share and
become a star, and eventually a cash cowwhen the market growth slows.