ITC Limited

Type Industry Founded Headquarter s

Public (BSE: 500875) Conglomerate 24 August 1910 Kolkata, India Yogesh Chander Deveshwar, Chairman

Key people

K. Vaidyanath, Director, Kurush Grant, Director, Rajiv Tandon (CFO) Cigarettes Hotels Apparel Tobacco Foods

Products

Stationery Personal Care Paperboard and specialty papers Printing and packaging Matches and Agarbattis Infotech

Paperboards & Specialty Papers. ITC's aspiration to be an exemplar in sustainability practices is manifest in its status as the only compnay in the world of its size and diversity to be 'carbon positive'. Packaging and Agri-Exports. While ITC is an outstanding market leader in its traditional businesses of Cigarettes. Packaging.150 (2009) ITC Limited. Contents • • • • • • • 1 2 3 4 5 6 7 List of products & brands Rural initiatives Corporate philanthropy Forbes ranking Global and other Honours References External links . Personal Care and Stationery. Stationery. Packaged Foods & Confectionery. Agri-Business. It employs over 26.' In addition. it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery. Paperboards. Hotels. a majority of whom represent the poorest in rural India. Personal Care. Branded Apparel. 2010. ITC Limited completes 100 years on 24th August. Information Technology. ITC's businesses have created sustainable livelihoods for more than 5 million people. The company has its registered office in Kolkata. 'water positive' and 'solid aste recycling positive. The company is currently headed by Yogesh Chander Deveshwar.[1] is an Indian conglomerate with a turnover of US $ 6 billion and a market capitalisation of over US $ 22 Billion.000 people at more than 60 locations across India and is listed on Forbes 2000. ITC has a diversified presence in Cigarettes.Revenue Employees ▲ US$6 billion (2009) 26. Hotels. Branded Apparel. Safety Matches and other FMCG products.

Personal Care Products business(Fiama di Wills. Berkeley. ITC Welcomgroup is also the exclusive franchisee of The Luxury Collection brand. Gold Flake. Aim brands] Other businesses include: • • • Paperboard. Bingo brands in Ready to Eat. Mangaldeep.List of products & brands ITC has a diversified presence in • Cigarettes: W. Based out of Hotels Division Headquarters at the ITC Green Centre in Gurgaon. Candyman. Wills. Classic (Verve. Minto. O. Graphic and other Paper. • Hotels: ITC Welcomgroup Hotels. Silk Cut. Staples. Infotech (through its near-wholly owned subsidiary ITC Infotech India Limited which is a SEI CMM Level 5 company) . Specialty Paper. Packaging and Printing for diverse international and Indian clientele. Lucky Strike and Flake. Apparel business (Wills Lifestyle and John Players brands). Essenza di Wills. Mild & Ultra Mild). Insignia. Sunfeast. Bristol. D. Scissors. Palaces and Resorts is India's second largest hotel chain with over 80 hotels. Vivel. Regular. Biscuits. & H. Confectionery and Snack Foods). haircare and skincare) Stationery (Classmate and Paperkraft brands) Safety Matches and Agarbattis [Ship (through ownership of WIMCO). ITC has a strong presence in: • • • • • Foods business (Kitchens of India. Superia brands of products in perfumes. Capstan. India Kings. Navy Cut. iKno. Ashirvaad.

reach more than 4 million farmers in about 40. When Classmate notebooks were launched. Forbes ranking ITC features on the Forbes Global 2000 rankings for 2007 at position 1256 [2]. tobacco. This transformational strategy. The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. shrimp. . and other cropping systems in rural India has also created a highly profitable distribution and product design channel for the company—an ecommerce platform that is also a low-cost fulfillment system focused on the needs of rural India. who would otherwise continue to operate and transact in 'unevolved' markets. it came up with the initiative of contributing 1 rupee towards the education of poor children.000 villages. What began as an effort to re-engineer the procurement process for soy.Rural initiatives ITC's Agri-Business is India's second largest exporter of agricultural products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The company places computers with Internet access in rural farming villages. Its potential is being tested through pilot projects in healthcare. Free access to Internet is also opening windows of rural India to the world at large.from every single notebook it sold. which has already become the subject matter of a case study at Harvard Business School. The e-Choupal system has also catalyzed rural transformation that is helping to alleviate rural isolation. and improve their productivity and incomes. services through 6500 Echoupal across 10 states. wheat. create more transparency for farmers. the e-Choupals serve as both a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub. As of July 2010. water management and cattle health management with the help of several service providers including non-governmental organizations. significantly enhancing the Company's marketing reach. ITC eChoupal e-choupal is now being regarded as a reliable delivery mechanism for resource development initiatives. Corporate philanthropy ITC Echoupal creatively leverages information technology to set up a meta-market in favour of India's small and poor farmers. is expected to progressively create for ITC a huge rural distribution infrastructure. educational services.

[4] Global and other Honours • ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based Global Reporting Initiative (GRI). the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate Governance' in the same year. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction. These Awards have been instituted by the Institute of Directors. ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award.[3] ITC also featured on the Forbes World's Most reputable Companies List at position 95. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. to get the LEED Platinum rating . ITC has won the inaugural 'World Business Award'. It won the $100. The award has been instituted jointly by the United Nations Development Programme (UNDP). ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic. the worldwide business award recognising companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. social and natural capital for the nation. Bengaluru is the first Indian Hotel and world's largest. multistakeholder international initiative to develop and disseminate globally applicable Sustainability Reporting Guidelines. The Stockholm Challenge 2006 for the e-Choupal initiative. ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007.000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. in association with the World Council for Corporate Governance and Centre for Corporate Governance. a UN-backed. sustainability and transparency. International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF). • • • • • • . its scale and replicability.ITC is the only Indian FMCG company that features on the Forbes Global 2000 rankings for 2009 at position 987.the highest green building certification globally. New Delhi. ITC Hotel Royal Gardenia. This award is for using Information Technology for the economic development of rural communities.

The Corporate Social Responsibility Crown Award for Water Practices from UNESCO and Water Digest for its distinguished work carried out in the water sector in India. The Company has been recognised for its pro-active and holistic approach to IT adoption and the seamless alignment of IT with business strategy. • • • • • • • • . The NASSCOM – CNBC IT User Award 2008 in the Retail & Logistics category. Times Foundation and the NASSCOM Foundation. ITC also received the National Award for Excellence in Water Management 2007 in the 'beyond the fence' category from the CII Sohrabji Godrej Green Business Centre for its leadership role in implementing water and watershed management practices. recognising outstanding work done by socially conscious companies. instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated e-Choupal initiative. The Institute of Chartered Accountants of India Award for Excellence in Financial Reporting with its Annual Report and Accounts. adjudged as a commendable entry under the Category 'Manufacturing and Trading Enterprises’. The Best Corporate Social Responsibility Practice Award 2008 jointly instituted by the Bombay Stock Exchange. The Readers' Digest Pegasus Award for corporate social responsibility. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector. The 'Enterprise Business Transformation Award' for Asia Pacific (Apac). The company also won the award in 2004 for its e-Choupal initiative. The Corporate Award for Social Responsibility 2008 from The Energy and Resources Institute (TERI) in recognition of its exemplary initiatives in implementing integrated watershed development programmes across 7 states in India. This Award aims at promoting information dissemination of good practices towards sustainable development in the Asia-Pacific region.• United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo for ITC's exemplary initiatives in agri business through the eChoupal. The Award recognizes and honours Asian companies for outstanding. This is the fourth time that ITC has won Nasscom's Best IT User Award since it was instituted in 2003. innovative and world-class projects. The watershed programme also won the Asian CSR Award 2007 for Environmental Excellence given by the Asian Institute of Management. The Company also received the Ryutaro Hashimoto Incentive Prize 2007 for Environment & Development from the Asia Pacific Forum.

. Brands .Building A Brand What factors are important in building brand value? Professor David Jobber identifies seven main factors in building successful brands. as illustrated in the diagram below: Quality Quality is a vital ingredient of a good brand. consistently.• The Business Today Award for the Best Managed Company in recognition of its outstanding initiatives in the consumer products segment. These must be delivered well. or the training shoe that often falls apart when wet will never develop brand equity. The branded washing machine that leaks. Remember the “core benefits” – the things consumers expect.

Research confirms that. packaging and the way in which it is delivered. The repositioning of the Lucozade brand from a sweet drink for children to a leading sports drink is one example. higher quality brands achieve a higher market share and higher profitability that their inferior competitors. service standards. Competitors – drawn to the high growth and profit potential demonstrated by the “market-mover” – will enter the market and copy the best elements of the leader’s brand (a good example is the way that Body Shop developed the “ethical” personal care market but were soon facing stiff competition from the major high street cosmetics retailers. Repositioning Repositioning occurs when a brand tries to change its market position to reflect a change in consumer’s tastes. There is plenty of evidence to support this. All elements of the promotional mix need to be used to develop and sustain customer perceptions. in many ways. . In fact. Communications Communications also play a key role in building a successful brand. However. In terms of brand development. We suggested that brand positioning is essentially about customer perceptions – with the objective to build a clearly defined position in the minds of the target audience. Strong brands have a clear. being first into a market does not necessarily guarantee long-term success. Coca Cola and Sellotape that. Initially. image. product guarantees. perhaps because its original market has matured or has gone into decline. the challenge is to build awareness. defined the markets they operate in and continue to lead. First-mover advantage Business strategists often talk about first-mover advantage. by “first-mover” they mean that it is possible for the first successful brand in a market to create a clear positioning in the minds of target customers before the competition enters the market. successful positioning usually requires a combination of these things. including brand name. statistically. often unique position in the target market. Positioning Positioning is about the position a brand occupies in a market in the minds of consumers. Another would be the changing styles of entertainers with above-average longevity such as Kylie Minogue and Cliff Richard. This is often required when a brand has become tired. Positioning can be achieved through several means. then to develop the brand personality and reinforce the perception. Think of some leading consumer product brands like Gillette.

By this we mean that the whole business should understand the brand values and positioning. Think of the brands that you value in the restaurant. .Long-term perspective This leads onto another important factor in brand-building: the need to invest in the brand over the long-term. It is likely that your favourite brands invest heavily in staff training so that the face-to-face contact that you have with the brand helps secure your loyalty. This means that management must “invest” in a brand. communicating the brand’s message and creating customer loyalty takes time. Building customer awareness. perhaps at the expense of short-term profitability. This is particularly important in service businesses where a critical part of the brand value is the type and quality of service that a customer receives. hotel and retail sectors. Internal marketing Finally. management should ensure that the brand is marketed “internally” as well as externally.

was ranked third.and it was the first to come out with two new flavours .12 lakh tonnes.500 crore annually and in terms of quantity it was around 5.THOUGH the ITC brand is almost synonymous with tobacco. according to an ITC executive. Branch Manager. Asked about the consumer readiness to accept biscuits. He attributed the company's success in the food products business to the depth in its distribution network. said the biscuits market in the country was estimated to be worth Rs 4. This has been borne out by the fact that atta and salt launched under the `Aashirvaad' brand name by ITC Foods division had done very well in the markets and in Coimbatore district. Maharashtra. it has in no way weighed with the people purchasing products of ITC's Foods division and the company has been able to capture nearly 10 per cent of the market share for biscuits within a year of the launch of `Sunfeast' range of biscuits. While in the rural markets Glucose biscuits do well. branded segment had a 60 per cent market share the rest was accounted for by the unorganised sector. ITC Ltd.Glucose. Speaking to Business Line after the launch of `Sunfeast' range of biscuits here the other day. . The biscuits market. Narayan. in the urban markets it is the cream biscuits segment. The `Sunfeast' brand of biscuits have been able to capture a 10 per cent market share where they have been launched. Mr Sunil S. Mr Narayan said ITC entered the biscuits market in August 2003 and it has introduced its products in Uttar Pradesh. Kerala. etc. he said ITC clearly demarcated its two businesses and food products were sold through groceries/departmental stores that did not deal in tobacco products. Coimbatore. too. ready-to-eat food products and chocolates marketed by ITC through its Foods Division despite the fact that ITC as a brand has long been associated with tobacco. with 9 per cent market share. which witnessed a growth of 12 per cent during last year in the country. ability in brand building and in identifying quality outsourcing opportunities. is expected to sustain its growth during the current year. ITC'satta has garnered a 19 per cent market share. Maharashtra and Uttar Pradesh were two of the largest markets for biscuits and Tamil Nadu.Orange Marie and Butterscotch Cream biscuits. He said the ITC Foods division launched biscuits in three segments . Hence there was no hesitation on the part of the consumers. Marie and Cream . While the organised.

from being essentially a favourite of children . he added. he hoped by the end of 2004-05.In Coimbatore. . He expected the market for biscuits to be good since the per capita consumption of biscuits was just about 10 kg in India where was it was 100 kg in countries like the US and even China. it would garner 20 per cent of the biscuit market. biscuits are emerging as a preferred snacks to be consumed with coffee or tea and this wider consumer choice promised growing demand for them. Moreover.

. Its brand building capabilities. ITC relies on three core competencies 1. The depth of distribution 2. Sunfeast has been a success because of these three competencies of ITC. So What is the core competency of ITC that is being leveraged when it decided to enter the Foods market.Brand : Sunfeast Company : ITC Ltd Can a cigarette manufacturer succeed in marketing Biscuits? What do management thinkers say about unrelated diversification? Unrelated diversification will succeed if it is based on the core competency of the firm. The ability of Quality outsourcing. ITC had the advantage of the well entrenched distribution setup which is matched only by HLL. Sunfeast was launched in 2003 was one of the diversification forays of ITC which wanted to establish itself as a serious FMCG player from its position of Tobacco products leader. 3.

Sunfeast also uses lot of Below the line promotions for brand building. To establish a brand in this tough market was never easy. SRK have the energetic persona that goes well with the brand. Goodday etc. The use of SRK makes sense since the TG is mainly kids . Sunfeast is also trying to garner more share in the Marie category which is estimated to be around 600 crore.2 kg per annum while the percapita consumption is 15 kg p. The mascot of Sunfeast is the Animated Sun which is the symbol of contentment. Sunfeast have maintained continous series of new launches like Milky Magic. Krackjack and Monaco while Britannia is the value leader with brands like 50: 50. The ad campaigns are catchy and full of colors and excitement. This platform is supported by a series product launches. Urban market prefer Cream biscuits. This mascot has been well received by the TG. It sponsors Sunfeast Open. satisfaction and Pleasure.G. Coconut. new tastes and new products are essential to built excitement in the market. strawberry. Sunfeast is positioned as an exciting brand. Thus Sunfeast has managed to get all the winning combinations in the right mix. pineapple cream etc. The percapita consumption of biscuits in India is only 1. Sunfeast have used the baseline " spread the smile" as the brand essence and the brand is endorsed by Shah Rukh Khan. Sunfeast using heavy promotion and careful brand building have already garnered 10% market share in this market. and Tamilnadu. Parle is the volume leader with brands like parle. milk bikis.a in developed nations. To expand the brand in to the snack category Sunfeast has launched Pasta Treat which talks of a healthy snacking option for kids. Recently Sunfeast launched a product for the premium segment named " Dark Fantasy" with chocolate flavour and cool advertisements.5000 crore. While the glucose biscuits are popular in Rural India . a recent initiative aiming at the school kids by providing them an . The biscuit market has now moved from the core Glucose base to more value added categories. Maharashtra. The product is also of very high quality. The market is dominated by Parle and Britannia. Since Biscuits are convenience goods .Indian biscuit market is estimated to be around 4500 . The key markets are UP. It launched the Marie with different flavours that has enabled it to gain a strong foothold in that category. Tiger.

opportunity to enhance creativity through painting competitions.Hope they don't mess the brand by extending it to underwears. We may see this brand expanding to many categories . The constant product launches and careful promotions have enabled Sunfeast to move to the top league in the biscuit market with in a span of 3 years. . " Hara Bano " campaign which set a world record in planting maximum number of saplings etc.

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