BUSINESS MIX OF ITC LTD.

FMCG ‡ Cigarettes ‡ Foods ‡ Lifestyle Retailing ‡ Greeting, Gifting & ‡ Safety Matches ‡ Agarbattis

Stationery

Paperboards & Packaging ‡ Paperboards & Specialty Papers ‡ Packaging Agri - Business ‡ Agri-Exports ‡ e-Choupal ‡ Leaf Tobacco Hotels Group Companies ‡ ITC InfoTech etc.

MARKET SHARE OF ITC LTD Outstanding market leader  Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. Gaining market share  Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

Segment

Dominance

Contribution % Revenue PBIT

Cigarettes

70% share

77.0%

87.7%

Paper & Packg.

Packaging board ± No. 1 in Asia

7.3%

10.7%

Agri business

1of the largest xporters from India

7.0%

3.7%

Hotels

ITC Group ranks No.2

4.3%

5.4%

FMCG (Others)

20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment

4.4%

-7.5%

LIMITATIONS:  Assumes market growth rate. A firm may grow the market.  A ³Dog´ may be helping other products.  High market share/Growth is not the only success factor.  Linkage between market share and profitability is questionable.

THE BCG MATRIX FOR ITC LTD.

Stars ‡ Hotels ‡ Paperboards/ ‡ Agri business.

? ‡ FMCG- Others Packaging.

Cows ‡ FMCG-Cigarettes

Dogs ‡ Maybe ITC Info tech.

LEARNING POINTS:  Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach.  Embracing difficult and challenging corporate strategy. (Ex: Paperboards).  EHS philosophy: Contribution to the triple bottom line- Economic, Environment and social capital.  ? - To be handled with care.  Strategic forays into emerging high growth markets.  E-Choupal is a transformational strategy.  Strong brand building capability will be tested.

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