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COMPANY
ANALYSIS REPORT
BY: Koushik Mahanta & Pankaj Kumar

Company Analysis of ITC Limited

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ACKNOWLEDGEMENT
I, Koushik Mahanta and Pankaj Kumar would like to take this opportunity to express
my deepest gratitude to my faculty guide Prof. Dr. Dhriti Bhattarcharjee for the
continuous support and follow up during the entire process without which the successful
completion of project report would not have been possible.

I am also grateful to our institute Shanti Business School (SBS) and its director Dr.
Neha Sharma and Academic Director Dr. Rinki Rola for providing us with this
wonderful opportunity to work in such projects that has enhanced our learning despite
challenging times.

Finally, I would like to thank all the people associated directly or indirectly with us for
our report writing at SBS.

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Contents :

1.ACKNOWLEDGEMENT.

2. BUSINESS INFORMATION.

3. ORGANIZATIONAL INFORMATION.

4. KEY PERSONS OF ORGANIZATION.

5. ORGANIZATION STRUCTURE.

6. PRODUCT, SERVICE, GROWTH AND DEVELOPMENT.

7. SWOT ANALYSIS.

8. KEY ALLIANCES OF THE COMPANY.

9. KEY COMPETITORS OF THE COMPANY.

10. REFERENCE.

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BUSINESS INFORMATION
Industrial Overview- Fast Moving Consumer Goods (FMCG) industry which is additionally
called as Consumer Packed Goods (CPG), known as one of biggest industrial sector of India. FMCG
merchandise are those products which are required each day in our day-to-day existence. Every section
of the society spent a considerable amount of their earnings on these goods and all products of FMCG
segment have a quick turnover rate. Thus, FMCG sector is considered as an important contributor to
the economy.

Segments and Size- FMCG quarter has been ranked 4th inside the table of Indian industrial
sectors. There are three major product segments in this sector which are Household and Personal care

(50% share), Food and Beverages (31% share) and Healthcare (19% share) products. Household and
Personal care products are the industry leaders as far as FMCG goods are concern. Although every
section of the entire population of the country is user of FMCG products. However, city phase of
Indian demography contributes maximum to the overall sales era of Indian FMCG quarter. In figures,
almost 55% of the overall sales generated by Indian FMCG area is contributed by using Urban
markets. The growth of this quarter has been prompted via the elevated attention among human beings,
availability and accessibility of the goods and converting lifestyles.

Industry Growth- As of late a report said, FMCG area is developing at lightning pace in country
India when contrasted with metropolitan India (Sen and Chaudhuri ,2017). The absolute market size of
Indian FMCG market was assessed around US$ 68.38 billion in the monetary year 2018 with expected
growth of US$ 103.70 billion by financial year 2021 at a CAGR of 23.15 per cent. Specifically, rural
FMCG market in India is expected to have a growth of US$ 220.00 billion by financial year 2025 from

US$ 23.63 billion reported in financial year 2018. This developing pattern of FMCG area is likewise

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helped by the expansion in number of online customers. It is likewise anticipated that by the monetary
year 2025, number of on the web clients in India will be around 850 million.

Industry Players- FMCG market is a huge platform for any organization irrespective of business
volume and capital investment with tons of scope. Moreover, the growth rate of this particular sector is
upward climbing and carrying lot of prospect. In order to capitalize this opportunity many new
companies are entering into this sector. However, there are few companies which are catering to this
sector for many decades and certainly holding a decent number of market share along with great brand
equity. Some of those companies are Procter and Gamble, Hindustan Unilever Group (HUL), The
Coca-Cola Company, Pepsico, ITC Limited, Johnson & Johnson (J&J), Nestle, Godrej Consumer
Goods, Reckitt Benckiser etc. These companies are continuously doing well in Indian as well as in
global FMCG market. HUL is the multitasker of the industry which deals is various category of
products like toothpaste, men’s grooming kit, beauty products, snacks and biscuits, Ice cream, breads
etc. It is holding a decent number of market share in all the product categories. In year 2020, HUL has
reported the value of their market capitalization of 5 trillion INR. ITC and Pepsico is sharing the
packaged snack segment with their very popular wafer brands, Lays, Kurkure and Bingo. P&G is still
holding the title of India’s 2nd largest shampoo manufacturer. In spite of that their market share has
slipped to 27% from 29% of previous fiscal year. In the year 2020, Reckitt Benckiser has performed
outstandingly with the help of its brand Dettol which has became the top soap brand in India, reporting
volume growth of 11 per cent. Altogether different companies have their own expertise and they are
serving accordingly

Products & Services- FMCG segment is possibly one of the most under-appreciated businesses in
the Indian consumer space in recent times. Many companies have proven themselves as India’s

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foremost private sector companies and a diversified conglomerate with business spanning Fast Moving
Consumer Goods (FMCG)

Few Products & Brands of FMCG:

Products Brands

Foods Aashirvaad, Dairy milk, Sunfeast, Bingo! Maggie, Mint-O,

Farmland, Lays, Kwality walls, Parle-G
Personal Care Fiama Di Wills, Vivel, Gillete, Dettol, Ponds, Savlon Soap &
Handwash
Stationery Classmate, PaperKraft and Colour Crew

The Company’s institutional strength – deep understanding of the Indian consumer, strong trademarks,
deep and wide distribution network, Agri-sourcing skills continue to be effectively leveraged to rapidly
grow the new FMCG businesses. Over the last few years, FMCG sector has rapidly scaled up presence
in its newer businesses comprising branded packaged foods, lifestyle retailing, education and
stationery products, personal care products, safety matches and incense sticks (Agarbatti) with segment
revenue growing at an impressive compound annual growth rate of 38% during last 5 years. The
company’s unwavering focus on quality, innovation and differentiation backed up deep consumer
insights, world-class R&D and an efficient and responsive supply chain will further strengthen its
leadership position in the Indian FMCG industry. It is measure of the continued trust reposed in the
company by its consumers that the top two FMCG brands in the country today belong to ITC. The
company’s FMCG businesses leverage one of the largest retail networks in the country, consisting of 2
million directly serviced dealers.

TECHNOLOGY-FMCG industry is the large wide spread industry of a world, that handles the
production, packaging, distribution and marketing of consumer goods like stationery, glassware, paper

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products, household products, plastic goods, food and dairy products having packaged food products,
consumer electronics, hardware and sanitary products, and many more. With consumers inclining
towards the technology day by day, it has become necessary for the FMCGs to adopt information
technology to reach their targeted customers. Major Challenges that FMCGs faces are expanding
product portfolio, managing Stock keeping units, finding field employees, managing supply chains and
distribution channels, human resource department management including daily wages and payroll,
meet distinct obligation of customers, employees reporting, ensuring compliance with changing market
trends, get real time access to competitor’s activities, manage multi-channel marketing, and many
more. With these possible difficulties FMCG leaders across all industry verticals realize that IT can
play a game changing role that can stimulate revenue growth by attractive innovation and thus have
started investing in the same. Many IT Outsourcing companies have emerged as developing and
providing Information technology services to FMCGs as they are also well acquainted with the fact
that consumer is going mobile and FMCGs do need their services to keep pace with the consumers.

Sales Force Automation: As FMCGs is spread over large geography, sales are conducted by
different stores located in different areas. It is then a nightmare for sales and marketing guys to
amalgamate the things. IT companies helps in developing sales force which helps to connects with the
clients and suppliers. Catch and track orders, set targets, track field salesman, real time insight into
data, stock management, etc. are some of the automation sector features.

CRM: Another wonder of Information Technology for FMCGs is Customer Relationship

Management. and fact loves CRM. Reason being is that CRM help to retain important customers and
in case of FMCG CRM is practiced at retailer’s or distributor levels. Huge industry is using CRM to
setup customer care centers, launching newsletters, giving notifications, etc. Therefore, these were the
some of the importance of information technology because of which the FMCGs are rapidly inclined
towards IT industries for such solutions.

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Mobile apps: The major issues that FMCGs has to face is to create a brand recognition for the
consumers by placing them at the right time and right place. And that is where Mobility solutions
comes into existence. As the mobile apps is attracting the major space in user’s smartphone, it helps in
rendering highly personalized experience. Mobile apps also provide consumer to direct your products
from store at easy way, surf your product portfolio any time, get alerts on discounts & offers, purchase
online from everywhere anytime. Mobile apps have helped the FMCGs in building their customers
loyalty.

ORGANISATION INFORMATION

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History Development- ITC Ltd is one of the foremost private sector companies of India. ITC limited is
an Indian multinational conglomerate company who’s headquartered is in Kolkata, West Bengal, ITC
Ltd was incorporated on 24 August, 1910, under the name Imperial Tobacco Company of India Ltd. to
make tobacco & cigarettes. In 1975, the company entered to the hospitality business with the
acquisition of ITC– Hotel Welcome group Chola. In 1974 company has changed its name to ITC
Limited in 1974. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Most Reputable Companies by Forbes magazine. Company completed it’s 100 years in 2010 and in
2019-20 its annual turnover was about US$10.74 billion & their market capitalization was of US$35
billion (Kapoor, Anil & Misra, 2010). It employs more than 36,500 people in India. ITC Limited has
diversified presence across industries Goods which comprises of Foods, Personal Care, Cigarettes,
Branded Apparel, Education & Stationery Products, Matches; Hotels, Paperboards and Packaging,
Agri Business and Information Technology. The first step towards Indianization with 6% of Indian
shareholding of the company (ITC Portal, 2019). ITC became the first Indian company to assault into
consumer research during this period. Technology became the focal point for setting up of cigarette
machinery and filter-rod manufacturing facilities during the year 1960 because their aim was to
achieve self-sufficiency in cigarette-making. In 1973, ITC set up its integrated research center in
Bangalore, aimed at diversification and venturing into newer businesses with research and
development. The shareholding went up to 60% in 1970. Then during 1977 in Calcutta ITC Sangeet
Research Academy was set up. Then, in 1979 ITC entered into the paperboards business by promoting
ITC Batrachia Paperboards Limited. The year 1986 saw sturdy moves from the company with the
opening of an Indian restaurant in New York, acquisition and renaming of Vishwakarma Hotels to ITC
Hotels Limited, & by setting up of two new ventures – the ITC Classic Finance Limited and ITC Agro
Tech Limited. in 1988 ITC then entered into the edible oils industry with the launch of the Sun drop
brand of cooking oils.

Key Persons of the organization-

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▪ CHAIRMAN

Sanjiv Puri (58), is the Chairman & Managing Director of ITC effective from May 13, 2019.

BOARD OF DIRECTORS
Nakul Anand - He led the team at ITC Hotels to develop the concept of 'Responsible Luxury' in the

hospitality industry.

Sumant Bhargavan - responsible for the FMCG Businesses of the Company such as Cigarettes,

Foods, Personal Care, Education & Stationery Products, Matches and Agarbattis.

Rajiv Tandon – He is responsible for Finance, Accounting, Internal Audit & IT Functions and also

for the Investment Subsidiaries of the Company.

Shilabhadra Banerjee - He holds on to various eminent positions including that of Joint Secretary

in the Ministry of Petroleum & Natural Gas and the then Ministry of Urban Development.

Hemant Bhargava - Represents the Life Insurance Corporation of India ('LIC'). Currently he is on
the Boards of Larsen & Toubro Limited and The Tata Power Company Limited, amongst others. Atul

Jerath – He represents the General Insurers' (Public Sector) Association of India. Director of

Industrial Credit Company Ltd. David Robert Simpson - Representative of Tobacco Manufacturers

(India) Limited, it is the subsidiary of British American Tobacco

Organization Structures

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Company Analysis of ITC Limited

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Product and services, growth and development-

Cigarettes- ITC Ltd sells 81% of the Cigarettes, Bidis in India, where 275 million individuals use
tobacco items and the complete cigarette market is worth near $11 billion (around Rs. 757399.4
million (Kumar and Kumar, 2017). ITC's significant cigarette brands incorporate Wills Navy Cut, Gold
Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings.

Food varieties: ITC's significant food brands incorporate Aashirvaad, Sunrise Foods, Sunfeast,
Bingo! Kitchens of India, Sunfeast Yippee! B Natural, mint-o, Candyman, GumOn, Fabelle, Sunbean,
Sunfeast Wonderz Milk, ITC Master Chef, Farmland. ITC is India's biggest dealer of marked food
varieties with of over Rs. 4,600 crores in 2012–13. It is available across 6 classes in the food business
including nibble food varieties, prepared to-eat dinners, natural product juices, dairy items and candy
store.

Personal care products- ITC's own consideration items line incorporates aromas, haircare and
skincare classes. Significant brands are Fiama Di Wills, Vivel, Savlon Soap and Handwash, Essenza
Di Wills, Superia and Engage.

Stationery- Brands incorporate Classmate, PaperKraft and Color Crew. Dispatched in 2003,
Classmate proceeded to turn into India's biggest scratch pad brand in 2007.

Paperboard- Products, for example, strength paper, realistic and other paper are sold under the ITC
brand by the ITC Paperboards and Specialty Papers Division like Classmate result of ITC, notable for
their quality.

Packaging and Printing- ITC's Packaging and Printing division operates manufacturing facilities
at Haridwar and Chennai and services domestic and export markets.

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Dairy Products- ITC likewise has begun Dairy Products. At present, Dairy items are showcased
under Brand name Sunfeast Wonderz Milk which are enhanced milk. Be that as it may, they are not yet
in the normal every day utilization milk business.

Information Technology- ITC operates through its fully owned subsidiary ITC Infotech India
Limited.

SWOT Analysis of ITC:

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 Rural market  FDI in Retail Sector

Strength
 Increasing purchasing power of  Government policies regarding
peoples Cigarettes
 Strong brand presence & product  Highly dependent
Intense on Tobacco
competition in FMCG and
Advertising revenue
Hotel chains
 Diversified product and Services   Hotel
TaxesIndustry’s market share
 Distribution Channel
 Excellent R&D facilities

 Mergers and Acquisitions

 Publicity of Hotels to increase share
ww
Weakness

Opportunity
Opportunity ww
Threats
Opportunity

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Key alliances of ITC:

Dunzo:
The ITC has join hands with the logistic player during the lockdown for the
uninterrupted supply of essential items and foods.

Domino’s, Swiggy and Zomato:

ITC expects its new collaboration with Domino’s, Swiggy and Zomato in the wake of
the pandemic as we know that these are the unlike partners, the main aim of the
partnership is to open new distribution channel and become mainstream in future.

Amway: In May 2020, ITC has partnered with Amway India for distributing its new
immunity beverages to stay relevant and to compete with rivals Dabur, Coca Cola, Pepsi
Co in the breakfast market.

Starwood Hotels & Resorts: ITC has renewed its partnership with Starwood hotels &
resorts for 11 Luxury collection hotels.

Key Partners of ITC Infotech partners:

• Amadeus
• Amazon Web services
• Microsoft Azure

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• Pega
• LogmeIn
• Automation anywhere
• iexceed
• Gold Microsoft Partner
• UI Path

Bayers Crop Science:

Bayers Crop Science in June 2020 has partnership with Agri business division of ITC to
extend the reach of its crop protection product through ITC’s E-Choupal 4.0 platform.

Valmet:

ITC Limited invested in new high-class coated board-making technology to respond to

the demand of India’s fast-growing paper and board consumption. The continued shared
journey of the two companies stems from the high technology Valmet can offer
combined with the long and trusting relationship between the companies.

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Key competitors of the company:

ITC Competitors in FMCG segment

• HUL
• P&G
• Godrej Consumer Project
• Nestle
• Godfrey Philips India Ltd.
• Danone
• Coca-Cola
• Colgate
• Dabur
• Marico
• Loreal

ITC Competitors in Hotels:

• Taj Group Hotels
• Leela Hotels
• Oberoi Group of Hotels
• Sarovar Group of Hotels

ITC Competitors in Cigarettes:

• Philip Morris International
• Golden Tobacco

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REFERENCE

https://www.livemint.com/market/mark-to-market/itc-s-fmcg-biz-outloo
https://www.itcportal.com/about-itc/shareholder-value
https://www.ibef.org/industry/fmcg.aspx
Sen, J., & Chaudhuri, T. (2017). A predictive analysis of the Indian FMCG sector using time series
decomposition-based approach. Available at SSRN 2992051.
Kapoor, S., Anil, K., & Misra, A. (2010). Dividend policy determinants of Indian FMCG sector: A
factorial analysis. Journal of Modern Accounting and Auditing, 6(9), 50.
Kumar, M., & Kumar, Y. (2017). GST & its Probable Impact on the FMCG Industry in India.
International Journal of Research in Finance and Marketing (IJRFM), 7(4), 183-193.
Upamannyu, N. K., & Mathur, G. (2013). Effect of brand trust, brand affect and brand image on
customer brand loyalty and consumer brand extension attitude in FMCG sector. In Prima (Vol. 3, No.
2, p. 1). Publishing India Group.
Madsen, D. O. (2017). Not dead yet: the rise, fall and persistence of the BCG Matrix. Problems and
Perspectives in Management, 15(1), 19-34.
Cowie, G. A., Swift, E., Borland, R., Chaloupka, F. J., & Fong, G. T. (2014). Cigarette brand loyalty in
Australia: findings from the ITC four country survey. Tobacco control, 23(suppl 1), i73-i79.
Agarwal, V., & Ganesh, L. (2016). Effectiveness and Perception of 4P’s on Green Products in FMCG.
Age, 18(24), 45. Dost, F., Phieler, U., Haenlein, M., & Libai, B. (2019). Seeding as part of the
marketing mix: word-of-mouth program interactions for fast-moving consumer goods. Journal of
Marketing, 83(2), 62-81.
Saji, K. B., Mann, B. J. S., & Kaur, M. (2013). Exploring branding strategies of FMCG, services and
durables brands: evidence from India. Journal of Product & Brand Management

Company Analysis of ITC Limited