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Introduction:ITC Ltd is one of India's premier private sector companies with diversified presence in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, AgriBusiness, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products. Presently, ITC has a market capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. It employs over 21,000 people at more than 60 locations across India. ITC has been rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. ITC had a humble beginning and in the initial days it used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthday on August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later company's headquarter building, 'Virginia House' came on that plot. Progressively the ownership of the company Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's name were removed effective September 18, 2001 and the Company was rechristened as 'ITC Limited'.
Vision and Mission of ITC Ltd:• 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.
Bahrain. John Players. soft covers & multiple binding formats including spirals. cellular phone and IT packaging industries. Mangaldeep is also being exported to USA. Ananth and Mogra. Jasmine. ITC's Paperboards business has a manufacturing capacity of over 360. In 2002. Today ITC-Welcome group with over 70 hotels is one of the foremost hotel chains in India. Malaysia. Madhur. liquor. Packaging: ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. Durbar. UAE. an exclusive line of prestige fragrance products.000 tonnes per year and is a market leader in India across all carton-consuming segments. Bristol and Flake in its portfolio. Africa and the USA. India Kings. Tarangini. Safety Matches: ITC's brands of safety matches include iKno. Capstan. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). Scissors. Berkeley. Food: ITC made its entry into the branded & packaged Foods business in August 2001 with the . Greeting. personal products. ITC introduced Essenza Di Wills. Lifestyle Retailing: ITC entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. Delite and Aim. Bouquet. ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards. Nepal. ITC also exports premium brands to markets such as Europe. The Paperkraft designer stationery range consists of notepads & multi subject notebooks in hard. Classic. Navy Cut. VaxLit. Oman and South Africa. Sandalwood. In 2005. Aggarbattis: ITC has launched Mangaldeep brand of Aggarbattis with a wide range of fragrances like Rose. wiros etc. cigarette. Gold Flake. It offers a variety of value-added packaging solutions for the food & beverage. The Aim is the largest selling brand of Safety Matches in India. Gifting & Stationery: ITC's stationery brands "Paper Kraft" & "Classmate" are widely distributed brands across India. ITC's Greeting & Gifting products include Expressions range of greeting cards and gifting products. Paperboards: In 1979. It was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. Hotels: ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai which was rechristened Hotel Chola.ITC Business Units:ITC is involved in following businesses: Cigarettes: ITC is the market leader in cigarettes in India and has a wide range of popular brands such as Insignia. Singapore. Silk Cut. Anushri. ITC entered into the popular segment with its men's wear brand. Mangaldeep.
Candyman. Hotels.:Outstanding market leader Cigarettes. weak infrastructure and the involvement of numerous intermediaries. Branded Apparel and Greeting Cards. Staples and Snack Foods segments. Packaging and Agri-Exports. Mint-O. To ensure long-term value creation. Agri Exports: ITC's International Business Division (IBD) is the country's second largest exporter of agri-products. Placing products in the BCG matrix results in 4 categories in a portfolio of a company: . In 2002 it expanded into Confectionery. Marine Products. characterised by fragmented farms. ITC's brand in Food category include: Kitchens of India. Foodgrains (Rice. ITC's e-Choupal won the Stockholm Challenge 2006 award is for using information technology for the economic development of rural communities. Aashirvaad. Sunfeast. Pulses). and Bingo!. Wheat. and Processed Fruits. Coffee & Spices. It has 2 dimensions: market share and market growth. Gaining market share Nascent businesses of Packaged Foods & Confectionery. e-choupal: The e-Choupal model of ITC has been very effective in tackling the challenges posed by the unique features of Indian agriculture. Paperboards. ITC exports Feed Ingredients (Soyameal). The basic idea behind it is that the bigger the market share a product has or the faster the product's market grows the better it is for the company.launch of the "Kitchens of India" brand. BCG Matrix of ITC Ltd:Market share of ITC Ltd. Edible Nuts. The BCG matrix method is based on the product life cycle theory that can be used to determine what priorities should be given in the product portfolio of a business unit. among others. a company should have a portfolio of products that contains both high-growth products in need of cash inputs and low-growth products that generate a lot of cash.
Cows • FMCG-Cigarettes ? • FMCG.Others LOW HIG H Market growth rate (cash usage) LO W Dogs . • Agri business.Relative market share (cash generation) generation) HIGH Stars • Hotels • Paperboards/ Packaging.
5% The BCG Matrix method can help understand a frequently made strategy mistake: having a one-size-fits-all-approach to strategy. In ITC the cigarettes are the cash cows as they need low investment and can hold the market share easily as it needs little resource.7% 10. In such a scenario: A. they are often allowed to reinvest substantial cash amounts in their businesses which are mature and not growing anymore. 70% share Packaging board – No. Even worse.Segment Dominance Contribution % Revenue PBIT 77. Until now ITC does have units that are poor in performance.3% 4.4% -7. 'Aashirvaad' atta is No. C.3% 87. As a result (all) Question Marks and Stars Business Units get mediocre size investment . even worse. 1 in Asia 1of the largest exporters from India ITC Group ranks No. B.7% Cigarettes Paper & Packg.0% 7.4% 5. Dogs Business Units fight an impossible battle and.0% 3.7% 4.2 20% share of greeting cards market. such as a generic growth target (9 percent per year) or a generic return on capital of say 9. investments are made now and then in hopeless attempts to 'turn the business around'.5% for an entire corporation. Cash Cows Business Units will beat their profit target easily.1 in branded segment Agri business Hotels FMCG (Others) 7. their management have an easy job and are often praised anyhow.
3 % 60. value added products E-choupal.2 % Limitations of BCG matrix:Some limitations of the Boston Consulting Group Matrix include: • • • High market share is not the only success factor Market growth is not the only indicator for attractiveness of a market Sometimes Dogs can earn even more cash as Cash Cows Conclusion:- . Hotels.7% 17.funds. Fast track. FMCG goods such as personal care products face an uncertain future. choupal sagar.2 % Growth parameters Pricing power Inward traffic. Either these SBUs should receive enough investment funds to enable them to achieve a real market dominance and become a cash cow (or star). agri-business are covered under the stars of business units. occupancy Capacity utilization. decent share. In this way they are unable to ever become cash cows. Agri business FMCG-Others 34. These inadequate invested sums of money are a waste of money.9 % 22. packaging and paperboards. Category Cigarettes Hotels Paper CAGR 10. or otherwise companies are advised to disinvest and try to get whatever possible cash out of the question marks that were not selected.
staples. confectionary.Major strategies followed by ITC: • • • • • • Entering into less competitive or unexplored markets (ready to eat. wafers) Distribution network Market differentiation ( Ready to eat. biscuits) Cost control strategy (all products) Extensive advertising (biscuits. wafers) Regular introduction of new products (all products) .
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