Imperial Tobacco Company of India Limited (ITC).

Presented to :united world school of business First year student

Presented by Kumar shivender

INTRODUCTION
‡ ITC Limited which previously stood for µImperial Tobacco Company one of India's foremost private sector companies. ‡ Transform itself from a leading Cigarette manufacturer to an umbrella group which offers diversified products. ‡ Successful in Hotel Business(ITC welcome group) and collaborated with Sheraton Corporation.

including e-enabled services and business process outsourcing. . ‡ ITC's wholly owned Information Technology subsidiary. ‡ ITC's Agri-Business is one of India's largest exporters of agricultural products. is pursuing emerging opportunities in providing end-to-end IT solutions. ITC InfoTech India Limited.Contd..

‡ Mission: To enhance the wealth generating capability of the enterprise in a globalizing environment. delivering superior and sustainable stakeholder value.VISION & 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.

it realized that there was huge revenue potential for a launch of wider product range to the Indian consumer base. ‡ Leads to concentrate to the other business opportunities. ‡ ITC¶s FMCG business has one of largest retail networks in the country(2 million retailers) ‡ Government ban on advertisements of cigarettes. ‡ The company felt the to diversify from the early 1970 and started entering those business that provides good ROI and a potential for future expansion.NEED FOR DIVERSIFICATION ‡ Core business of ITC is in the manufacture of cigarettes and tobacco. high tax rates. ‡ On domestic front. . decline for the demand of cigarettes.

DIVERSIFICATION OF ITC Branded Apparel Hotel Stationery Cigaretes Packaged Foods Incense Sticks Paper boards Personal Care Information Technology Agricultu -ral Industry Safety Matches .

‡ Introduced Aashirwad brand of wheat(atta) in 2002. ‡ Brand offers ready to serve products. . bristol filter. ‡ To boost sales growth introduce festivals packs of brands like: flake filter. berkeley filter and Scissor filter.Diversification Strategy Cigarettes : ‡ Focus to deliver highest product quality and value to consumers helps them to lead in cigarettes industry. ‡ Entered into biscuit market by launching Sunfeast brand in 2003. Branded food business(2001): ‡ Launch kitchen of India(Canned foods from ITC Bukhara restaurants).

Safety matches ‡ Increase market share and its sales by offering unique designs and value added features such as AIM.Stationery products: ‡ Launch greeting cards under the brand name Expressions. Hotels(1975) ‡ Four brands. Welcome hotels. Fortune hotels.ITC Welcome group. Welcome heritage . ‡ Gain popularity due to introduction of cards in different languages.

000 cr and ITC has ‡Dependence on tobacco revenues lion¶s share in it ‡ Negative Connection of Tobacco ‡Strong brand recognition and product portfolio ‡Distribution network ‡Management Opportunity ‡Low per capita consumption Of personal care products ‡Rural Market ‡Regulatory restrictions on cigarettes ‡E-Choupal ‡Ban on smoking ‡ Terror attacks Threat ‡Competition both Domestic & International ‡Increasing Tax on cigarettes .SWOT Analysis Strength Weakness ‡Cigarette market is 22.

Cheap labour supply. Becoming status symbol. Other forms of cheap tobacco intake. Changing attitudes towards tobacco.PEST analysis Political Ban on communication Luxury tax Bidee : cigarette ratio-10:1 Profit margin is high.TQM etc. May 31 is no tobacco day. Economical Socio cultural Technological . Adapting other concepts like QC. Change in life style.

The BCG Matrix for ITC Ltd.Others ‡ITC Infotech Dogs ‡Branded apparel . Cows ‡FMCG-Cigarettes ? ‡FMCG. Stars ‡Hotels ‡Paperboards/ Packaging. ‡Agri business.

In case of tobacco industry Low bargaining power of customer Low substitutes due to strict laws High bargainng power of supplier Porters 5 forces High rivalry High threats of new entrants .

Gaining market share ‡ Nascent businesses of Packaged Foods & Confectionery. Packaging and Agri-Exports. Hotels. Paperboards. Outstanding market leader ‡ Cigarettes. Branded Apparel and Greeting Cards. .Market share of ITC Ltd.

Critical Success Factor ‡SITE AND LOCATION ‡FINANCIAL STRENGTH ‡BRAND RECOGNITION .

000 hectares of dry lands and moisture-stressed areas.000 hectares creating an estimated 35 million person days of employment among the disadvantaged. ‡ ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ‡ ITC's Sustainable Community Development initiatives include women empowerment. ‡ ITC's Watershed Development Initiative brings precious water to nearly 35. ‡ ITC's Social and Farm Forestry initiative has greened over 80.Corporate Social Responsibility ‡ ITC's businesses generate livelihoods for over 5 million people. . primary education.

Forbes magazine under the section of world¶s leading companies(2004). ‡ Received the world business award in 2004 initiated as a part of United Nations µMillennium Development objectives due to leading role in reducing poverty and creating work opportunities at a national level. ‡ Received µEnterprise Business Transformation Award 2004¶ for Asia pacific region by Wharton Infosys.HONOURS & AWARDS ‡ Ranked 4th in net profit amidst India¶s private sector corporation. .

Issues with ITC ‡ ‡ ‡ ‡ Advertisement ban 2003 Analyst view Decrease in sales of Cigarettes Health awareness .

Touching your life. Everyday .ITC.

ITC ‡ Cigarettes ‡ ‡ ‡ ‡ ‡ ITC Hotels ITC FMCG goods Stationery Expressions E. Everyday . Touching your life. p&G Navneet Archies IFFCO and others ITC.choupal COMPETOTERS ‡ ‡ ‡ ‡ ‡ ‡ GPI (godfrey phillips india ltd) Hotel oberoi Hul.

Products of ITC ITC. Everyday . Touching your life.

Everyday . Touching your life. paper & cards ITC.Stationary.

Cigarettes ITC. Everyday . Touching your life.

Everyday . Touching your life.ITC Hotels ITC.

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