Sem 1 Final Project PDF

Student’s Name: - Chiranjib Banerjee
Section Name: - PGDM – 5
Roll Number: - 2022-1008-0001-0002
Company Name: - ITC
Product Name: - Candyman Fantastik
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Contents
EXECUTIVE SUMMARY .................................................................................................................. 4
BUSINESS MODEL CANVAS ............................................................................................................ 5
SECTOR INFORMATION ................................................................................................................. 6
SECTOR DEFINITION.................................................................................................................. 6
CATEGORIES OF SECTOR (FMCG) ............................................................................................. 6
SECTOR GDP CONTRIBUTION ................................................................................................... 7
SECTOR CAGR AND FORECASTING ........................................................................................... 7
SECTOR CATEGORIES WISE CAGR ............................................................................................ 8
CONSUMER BUYING BEHAVIOUR OF THE SECTOR .............................................................. 10
CONSUMER BUYING BEHAVIOUR OF CATEGORIES OF SECTOR ......................................... 11
SECTOR GROWTH FACTOR ..................................................................................................... 14
GROWTH/DEGROWTH PATTERN OF SECTOR PRE & POST-PANDEMIC ........................... 16
TOP 3 PLAYERS IN THE SECTOR............................................................................................. 17
PORTER 5 FORCE MODEL. ....................................................................................................... 19
PESTLE ANALYSIS .................................................................................................................... 23
SWOT ANALYSIS OF FMCG SECTOR........................................................................................ 25
COMPANY INFORMATION ........................................................................................................... 26
COMPANY DEFINITION ............................................................................................................ 26
COMPANY FOUNDED & FOUNDER DETAILS ............................................................................. 27
HISTORY OF ITC ........................................................................................................................... 27
ITC VISION .................................................................................................................................... 29
ITC MISSION.................................................................................................................................. 29
KEY BUSINESS HIGHLIGHTS OF THE YEAR ............................................................................... 29
STRATEGIC FRAMEWORK OF ITC .............................................................................................. 31
SHAREHOLDING PATTERN OF ITC ............................................................................................. 32
ORGANISATIONAL STRUCTURE OF ITC ..................................................................................... 36
MARKET SHARE OF ITC IN FMCG SECTOR ................................................................................ 36
SWOT ANALYSIS OF ITC .............................................................................................................. 37
MARKETING .................................................................................................................................. 38
SEGMENTATION, TARGETING AND POSITIONING (STP)..................................................... 38
MARKET MIX (4P’S) ................................................................................................................. 39
SWOT ANALYSIS OF CANDYMAN FANTASTIK....................................................................... 42
BCG ................................................................................................................................................ 42
PLC - PRODUCT LIFE CYCLE ........................................................................................................ 44
VALUE CHAIN ANALYSIS ............................................................................................................. 45
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FINANCE ........................................................................................................................................ 45
FINANCIAL SUMMARY OF ITC ................................................................................................. 45
BALANCE SHEET, INCOME STATEMENT, AND CASH FLOW STATEMENT ............. 46
P/E RATIO OF THE COMPANY AND INDUSTRY P/E ....................................................... 51
LIQUIDITY AND DEBT RATIOS, PROFITABILITY, SOLVENCY, TURNOVER, AND
WORKING CAPITAL RATIO OF ITC .................................................................................. 53
DU-PONT ANALYSIS .............................................................................................................. 56
MACROECONOMIC FACTORS THAT AFFECT THE STOCK PRICE OF ITC .............. 59
DEPRECATION POLICY, INVENTORY VALUATION, AND DIVIDEND POLICY OF
ITC ............................................................................................................................................. 64
COMPETITOR ANALYSIS OF THE ITC .............................................................................. 65
NAME OF SUBSIDIARIES, JOINT VENTURES OF ITC.................................................... 66
HUMAN RESOURCE MANAGEMENT ........................................................................................... 68
ORGANIZATION STRUCTURE .................................................................................................. 68
ORGANIZATIONAL CULTURE AND ETHICS............................................................................ 69
RECRUITMENT AND SELECTION PROCESS OF THE ORGANIZATION ................................. 70
EMPLOYER BRANDING OF THE ORGANIZATION.................................................................. 72
JOB DESCRIPTION AND JOB SPECIFICATION ....................................................................... 74
BACKGROUND VERIFICATION PROCESS ............................................................................... 75
ONBOARDING FORMALITIES AND DOCUMENTS REQUIRED FOR JOINING ....................... 77
METHOD OF TNA IN THE ORGANIZATION ............................................................................ 77
TRAINING PROCESS AND MODEL USED IN THE ORGANIZATION ....................................... 78
SUITABLE TRAINING METHODS FOR THE EMPLOYEES BASED ON COMPETENCIES AND
JD ................................................................................................................................................ 81
DESIGN TRAINING CALENDAR ................................................................................................ 82
PMS SYSTEM OF THE ORGANIZATION ................................................................................... 82
GOAL SHEET,KRA AND KRA OUTCOME BASED ON A PARTICULAR PROFILE .................. 84
ANALYZE THE EMPLOYEE BENEFITS OF THE ORGANIZATION .......................................... 85
REWARDS AND RECOGNITION SYSTEM OF THE ORGANIZATION ...................................... 86
DESCRIBE THE STATUTORY BENEFITS THAT THE COMPANY FOLLOWS ......................... 88
HRIS SOFTWARE TOOL USED IN THE ORGANIZATION ........................................................ 89
CONCLUSION ................................................................................................................................. 91
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EXECUTIVE SUMMARY
The project assigned to us is to study the business and make a sectorial, marketing, financial
and human resource plan with in depth analysis. India is the land of 1.36 billion people with
rising population and rising demand of consumer goods which is eventually helping the
industry to grow at the rate of 27.9% CAGR (compounded annual growth rate) 2020-2021.
ITC the name of every household brand is also growing at the rate of 21% CAGR from the
last 10years.
I have been given a product for my assignment which belongs to the FMCG sector under the
brand name of Candyman Fantastik. ITC’s Candyman Fantastik is one of India’s most trusted
Chocolate brands launched in 2002. Candyman Fantastik has a grit of inspiring kids to attract
and lure them with their chocolaty taste.
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BUSINESS MODEL CANVAS
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SECTOR INFORMATION
SECTOR DEFINITION
Fast-Moving consumer goods (FMCG) zone is India’s fourth-biggest zone and has been
increasing at a wholesome charge over time because of growing disposable income, growing
adolescent’s population, and growing logo focus amongst consumers. With family and private
care accounting for 50% of FMCG income in India, the enterprise is a vital contributor to
India’s GDP. India is a country that no FMCG player can afford to ignore due to its middle-
class population which is much higher than the total population of USA. The Indian FMCG
market continues to rise as more people start to move up the economic ladder and the benefits
of economic progress become accessible to the general public. More crucially, with a median
age of just 27, India's population is becoming more consumerist due to rising ambitions. This
has been further aided by government initiatives to increase financial inclusion and establish
social safety nets. The growing demand of FMCG market in India is rising humongous day by
day. The FMCG market in India is expected to increase at a CAGR of 14.9% to reach US$ 220
billion by 2025, from US$ 110 billion in 2020. Increasing digital connectivity in cities and
rural areas is driving demand for FMCG (via e-commerce portals). FMCG products that
dominate the market today are detergents, toiletries, tooth cleaning products, cosmetics, etc.
The FMCG sector in India also includes pharmaceuticals, consumer electronics, soft drinks
packaged food products and chocolates. There are three main segments in the sector — food
and beverages, which accounts for 19% of the sector; healthcare, which accounts for 31% of
the share; and household and personal care, which accounts for the remaining 50% share.
CATEGORIES OF SECTOR (FMCG)

There are three main segments in the sector — food and beverages, which accounts for 19% of
the sector; healthcare, which accounts for 31% of the share; and household and personal care,
which accounts for the remaining 50% share. The urban segment contributes to about 55% of
the revenue share, while the rural segment accounts for 45%. Rise in rural consumption will
drive the FMCG market. The Indian processed food market is projected to expand to US$ 470
billion by 2025, up from US$ 263 billion in 2019-20.
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SECTOR GDP CONTRIBUTION
FMCG is the fourth largest sector in the Indian economy.
It provides employment to around 3 million people accounting for approximately nearly 20%
of the total factory Employment in India. It is an important contributor to India's GDP growth.
SECTOR CAGR AND FORECASTING

Fast moving consumer goods (FMCG) is the fourth-largest sector in the Indian economy. The
urban segment contributes to about 55% of the revenue share, while the rural segment accounts
for 45%. ITC Q2 Results: Profit rises 21% YoY to Rs 4,466 crore, beats estimate. ITC's
performance for the quarter ended September 30, 2022, exceeded estimates; net profit rose
nearly 21% on year to Rs 4,466 crore, and the revenue-net of excise duty-increased nearly 27%
to Rs 16,129.91 crore. Strong growth was recorded across FMCG, Hotels, Agri and
Paperboards and Packaging Businesses.
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SECTOR CATEGORIES WISE CAGR
Strong and broad-based growth in FMCG – Others across markets & channels; Segment
Revenue up 21.0% YoY, at appx. 1.5x of Q2 FY20
̶ Staples & Convenience Foods and Discretionary/Out of Home categories drive growth
̶ Education & Stationery Products Business continues to witness strong traction
̶ Segment EBITDA margin at 9.5% (-50 bps YoY; +170 bps QoQ) – severe inflationary impact
mitigated through multi-pronged interventions
▪ Stability in taxes on Cigarettes, backed by deterrent actions by enforcement agencies, enable
continued volume recovery from illicit trade
̶ Segment Revenue up 23.3% YoY; Segment PBIT up 23.6% YoY
▪ Hotels Segment Revenue up 81.9% YoY and 25.6% over Q2 FY20
̶ ARR and Occupancy ahead of pre-pandemic levels
̶ Segment EBITDA at 156 cr. (up 138 cr. YoY and 68 cr. over Q2 FY20); Segment EBITDA
Margin at 29.0%
Key Highlights: Q2 FY23
▪ Robust growth in Agri Business; Segment Revenue up 44.0% YoY
̶ Wheat, Rice and Leaf Tobacco exports
▪ Paperboards, Paper & Packaging Segment continues to deliver strong performance;
Segment Revenue up 25.0% YoY
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while Segment PBIT up 54.0% YoY; Segment PBIT margins at 27.5%
̶ Strong demand across end-user segments; sustainable products portfolio continues to be scaled
up
̶ State-of-the-art Packaging & Printing facility at Nadiad, Gujarat commenced operations
during the quarter
̶ Integrated business model, Industry 4.0 initiatives, strategic investments and proactive
capacity augmentation enable margin
expansion amidst commodity price escalation
INDIAN FMCG MARKET SCOPE
Global Indian FMCG Market
Report
Details
Coverage
Base Year: 2020 Forecast Period: 2021-2027
Market Size in
Historical Data: 2016 to 2020 US $ 110 Bn.
2020:
Forecast Period
Market Size in
2021 to 2027 27.9% US $ 615.87Bn.
2027:
CAGR:
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• Food & Beverages • Pharmaceuticals
by Product • Household & Personal Care •
Consumer Electronics • Others
Segments
by
Covered: • Urban • Rural
Demographics
by Sales
• Online • Offline
channel
CONSUMER BUYING BEHAVIOUR OF THE SECTOR

Behaviour of consumers plays a crucial role in marketing the FMCG used by consumers and it
depends on various factors. In the current era of globalization, the customer needs and tastes
are changing over time. Undeniably, the fast-moving consumer goods (FMCG) is contributing
high to the growth of Indian GDP. It is necessary for marketers to learn about the factors that
are affecting the behaviour of consumers in buying fast moving consumer goods. It was found
that the behaviour of consumers varies by location, price, promotion, product and physiological
factors. However, the effect of these factors affecting the decision of consumers would vary
from one product to another. Everyone is a consumer. We consume goods to survive in this
world every day. We consume the products based on our needs, preferences, tastes or liking
and buying capacities. What consumer is buying, how they are buying, from where they are
buying and when they are buying and how much quantity they are buying would depend on the
family sized, social and cultural background, perception, self-concept, attitudes, belief values,
motivation, social class, personality and various other factors. While buying any product, one
would think of whether or not to buy or from which place they want to buy. In certain areas,
there would be rich people who can afford to buy the items in huge quantities in shorter period
of time. In poor societies, people could not meet their day-to-day needs. The marketers would
understand the needs of every consumer and their buying behaviours. However, to understand
this, they have to do extensive research on internal and external environment and then come up
with right marketing. There are various factors that affect the consumer behaviour in the FMCG
sector. They are as follows:
1. Consumer’s tastes and preferences
2. Hybrid experience
3. Prices of the related items
4. Consumer attitude
5. Sustainable choices
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CONSUMER BUYING BEHAVIOUR OF CATEGORIES OF SECTOR
The FMCG sector is divided into various categories:
1. Durable goods
2. Non-durable goods
3. Services
Growing share of the unionised retail sector in India has been one among the foremost
drivers for India’s FMCG market though' the share of organised marketing in India
continues to be terribly low compared to the opposite countries, it's among the quickest
growing retail markets, globally. The urban phase is that the biggest contributor to the
sector, accounting for two-third of total FMCG sector revenue. However, with the
emergence of recent consumption hubs in India, and economic process in smaller cities
the share of semi urban and rural FMCG markets is anticipated to grow considerably
throughout the forecast period. Over the last decade, India has witnessed a demographic
shift, with speedy adoption of web and growing digital media, and has significantly
altered the acquisition call of Indian customers. Growth is also likely to come from
consumer 'upgrading' in the matured product categories. With 200million people
expected to shift to processed and packaged food by 2010, India needs around US$ 28
billion of investment in the food-processing industry. Products belonging to the FMCG
segment generally have the following characteristics:
They are used at least once a month
They are used directly by the end-consumer
They are non-durable
They are sold in packaged form
They are branded
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Food and beverages sector
Food & beverages sector accounted for the largest share in India’s FMCG market. The
changing preferences of the upward middle-class families from the urban areas gave
importance to food & beverages sector and thus, fuelled the growth in the last few years. India
is the world’s second largest producer of food, next only to China, and has the potential of
being the largest player in food and agricultural sector. The food processing industry is one of
the largest industries in India and is ranked fifth in terms of production, consumption, export,
and expected growth
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Personal Care Sector
The Personal Care Products (PCP) market in India was valued at US$9.91 billion in 2015.
Personal care products such as bath and shower products, deodorants, etc., skin care, hair, skin
care, colour cosmetics and fragrances are the key segments of the personal care market. Each
of these segments has its own unique trends and growth patterns. oral care; hair care; skin care;
personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues,
diapers, sanitary); shoe care.
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Globally, the non-public care marketplace stood at USD700 billion in 2015, of which India’s
percentage stood at around1.4%. Bath and bathe merchandise which incorporates bar soap,
frame wash, bathe gel, etc. occupied the most percentage withinside the marketplace
accompanied with the aid of using hair care merchandise. Lower priced small amount
merchandise supplied with the aid of using the agencies have stepped forward the tempo of
penetration of FMCG non-public care merchandise marketplace. Growing literacy levels,
better authorities spending on welfare programs, growing assist to agricultural sector, and
growing DTH and cell connections have additionally acted as a catalyst in bolstering rural call
for FMCG non-public care merchandise in rural areas.
SECTOR GROWTH FACTOR
The FMCG sector is probable to peer an increase component of round 60 percentage in each
rural and semi-city regions of India through 2020. Hair care merchandise, family gadgets, male
grooming, girl hygiene, sweets and confectionary gadgets are discovered to be developing
quickly. Today, city India is eating over 66% of those speedy transferring client items whilst
rural India is eating over 34%. However, it's far predicted that rural India could boom the intake
of products to 40% in key FMCG categories. In city regions humans are maximum keen on the
usage of gadgets like non-public care, pores and skin care, family care and girl hygienic
merchandise. The call for those merchandise could be growing daily and are offered at an
appealing price. In meals segment, the processed foods, bakery, day by day merchandise
observes a long time increase in each city and rural regions. Growing populace in each city and
semi-city regions have resulted withinside the upward push of eating FMCG merchandise. The
producer is probable to get hold of massive income volumes withinside the coming years.
Growth in India's Rs 3.2 lakh crore fast moving consumer goods market (FMCG) has been the
highest in two years, according to market research agency Nielsen. Figures by Nielsen show
that overall FMCG growth has been 12.2 per cent, led by both volume and price, in the quarter
ended March 2017. This is at least 400 basis points higher than the year-ago period, when
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overall growth was 7.9 per cent. Nielsen's numbers are in line with what most companies
globally and nationally have been saying for a few quarters now.
Here are a few reasons why the tide is changing for consumer goods:
1. DEMAND SHOWING IMPROVEMENT POST NOTE BAN: Most companies

from Unilever to Dabur to Marico, Nestle and Mondelez have highlighted recently that
demand has recovered post the high-value note ban in the December quarter. They say
that consumers, especially, in urban areas have got past the hurdles faced during the
note ban, prompting sales to show improvement in the March quarter.
2. CONSUMER STAPLES IS RESILIENT AS A CATEGORY: Most analysts
believe that consumer staples as a category remains resilient to external factors such
as note ban since these are essential goods required for consumption and survival. So
while factors such as demonetisation can dampen demand for one quarter, it cannot do
so for long.
3. COMPANIES WERE QUICK TO ADAPT TO THE CHANGING SCENARIO:
To lessen the pain, companies were quick to manage inventory and distribution during
the note ban, increasing credit period for trade strapped for cash. In recent months,
companies have been talking to traders to switch to digital payments to ensure seamless
transfer of goods.
4. COMPANIES FOCUSING ON URBAN FOR NOW: Most FMCG companies
admit that business will take time to return to normal in rural areas owing to the note
ban. So, the focus for them will be on pushing sales in urban areas. While rural
constitutes a third of FMCG, two-thirds continues to come from urban areas so for the
medium to short term emphasis on urban till rural returns to normal, say analysts, is
not a bad idea.
5. GST PREPAREDNESS: That is expected to be critical for companies going forward.
How they accustom themselves to this tax regime will determine whether it will be
business as usual for them in the coming quarters.
Key gamers withinside the FMCG quarter are Hindustan Unilever Ltd, Nestlé India, AMUL,
Dabur India, Asian Paints (India), and Cadbury India, Procter & Gamble Hygiene and Health
care, Britannia, Pepsi, Coca-Cola and different agencies. As consistent with the take a look at
carried out through ASSOCHAM, agencies like Hindustan Unilever Limited and Dabur India
income are at the upward push in rural India. In fact, 1/2 of the income of those merchandise
are from rural regions. The merchandise which might be synthetic through Colgate Palmolive
India and Marico have 37% of intake whilst the goods synthetic through Nestle India Ltd and
GSK Consumer pressure see an upward push of 25% income from rural India.
With the boom in city regions, there are is a steep upward push in younger populace that is
giving enough possibilities for FMCG quarter to supply merchandise which might be utilized
by kids to attain massive profits The Finance Ministry has added Goods and Service Tax (GST)
in 2017. This a super circulates which have expanded the intake, manufacturing and
employment possibilities at once whilst decreasing all oblique taxes that expenses now no
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longer much less than 35% of overall fee of client items, that is the very best in Asian countries.
The key factor to knowledge from that is that, the India marketplace is developing at a quicker
tempo and is displaying many commercial enterprise possibilities. In this viewpoint, we've got
determined to perform a take a look at on client behaviour and their shopping for choices whilst
shopping for FMCG merchandise.
GROWTH/DEGROWTH PATTERN OF SECTOR PRE & POST-PANDEMIC
The FMCG area’s sales reached US$ one hundred ten billion in 2020.
▪ FMCG area will benefit aid for boom from Inland Waterways Authority of India (IWAI)
multi-modal transportation undertaking of freight village at Varanasi, if you want to carry
collectively retailers, warehouse operators and logistics provider providers, and funding really
well worth Rs. 1.7 billion (US$ 25.35 million).
▪ In September 2021, rural intake of FMCG elevated 58.2% YoY; that is 2x greater than the
city intake (27.7%).
▪ In September 2021, FMCG most important Godrej Consumer Products, introduced that it's
far searching at clocking a double-digit boom in FY22 with growth throughout diverse
segments.
▪ The Indian FMCG commercial enterprise rose through 16% in CY21, a 9-12 months high.
▪ In June 2021, MoM boom in FMCG income in city and rural markets become 63.6% and
32.8%, respectively. Tier-II towns led the manner in city boom, with a 23.7% MoM boom in
monthly stocking in step with kirana, while stocking in rural kiranas handiest climbed through
2%.
▪ The FMCG area's sales boom will double from 5-6% in FY21 to 10-12% in FY22. Price will
increase throughout product classes will offset the rate of uncooked materials, in conjunction
with quantity boom and a resurgence in call for discretionary items will power boom.
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TOP 3 PLAYERS IN THE SECTOR
1.
Hindustan Unilever Limited is India’s largest fastmoving consumer goods (FMCG) company
with a Historical presence in India of over 80 years. It is the largest in the list of top 5 FMCG
companies in India.
Nine Out of Ten Indian households use one or more of HUL Brands. Divisions – Home Care,
Beauty & Personal Care and Foods and Refreshment – includes a portfolio of brands that serve
consumers across the length and breadth of India.
Revenue: Rs 40,511 Cr
Employees: 5,645
Market Cap: 451,666 Cr.
Dividend Yield: 1.05 %
ROE: 81.95 %
Sales Growth (3Yrs): 6.89 %
Promoter holding: 67.18 %
Debt to equity Ratio: 0.01
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2.
Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels,
Paperboards, and Packaging, Agri-Business and Information Technology. ITC is among the
top FMCG brands in India.
Revenue: Rs 51,321 Cr
Employees:
ROE: 22.69 %
Debt to equity: 0.00
Price to book value: 5.47
Imperial Tobacco Company – Full Form
The Company was incorporated on August 24, 1910, under the name Imperial Tobacco
Company of India Limited. It is the second largest in the list of top 5 FMCG companies in
India.
As the Company’s ownership progressively Indianized, the name of the Company was changed
to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition
of the ITC’s multi-business portfolio encompassing a wide range of businesses, the full stops
in the Company’s name were removed effective September 18, 2001.
2.
Nestlé is the world’s largest food and beverage company. The company has more than 2000
brands ranging from global icons to local favourites, and are present in 191 countries around
the world. After more than a century-old association with the country, today, Nestle India has
a presence across India with 8 manufacturing facilities and 4 branch offices. It is the third
Largest in Top FMCG Companies in India.
Revenue: 12,117 Cr
Employees:
ROE: 45.30 %
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Debt to equity: 0.01
Price to book value: 34.93
NESTLÉ India set up its first manufacturing facility at Moga (Punjab) in 1961 followed by its
manufacturing facilities at Choladi (Tamil Nadu), in 1967; Nanjangud (Karnataka), in 1989;
Samalkha (Haryana), in 1992; Ponda and Bicholim (Goa), in 1995 and 1997, respectively; and
Pantnagar (Uttarakhand), in 2006. In 2012, Nestlé India set up its 8th manufacturing facility at
Tahliwal (Himachal Pradesh).
PORTER 5 FORCE MODEL.
Porter Five (5) Forces Model was proposed by Michael E. Porter in 1979. The purpose was to
assess and evaluate the competitive positioning and strengths of business organisations. The
model has three horizontal competitive forces (Threat of Substitute Products or services, the
threat of new entrants and rivalry among existing firms) and two vertical forces (Bargaining
power of buyers and bargaining power of suppliers). These forces shape the competition within
any industry. The overall industry competitiveness declines when these forces reduce
profitability. Porter found SWOT analysis lacking in rigour. Many new companies use the
Porter Five (5) Forces Model to decide whether it is profitable to enter in a particular industry.
Here is the pictorial presentation of the Porter Five (5) Forces Model:
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Threats of new entrants
Threat of new entrants reflects how new market players impose threats to the existing market
players. If the industry will be profitable and barriers to enter the industry will be low, it will
attract more players and hence, the threat of new entrants. will be high.
Here are some factors that reduce the threat of new entrants for ITC Limited India First:
Entry in the industry requires substantial capital and resource investment. This force also
loses the strength if product differentiation is high and customers place high importance to
the unique experience.
ITC Limited India First will face the low threat of new entrants if existing regulatory
framework imposes certain challenges to the new firms interested to enter in the market. In
this case, new players will be required to fulfil strict, time-consuming regulatory
requirements, which may discourage some players from entering the market.
The threat will be low if psychological switching cost for consumers is high and existing
brands have established a loyal customer base.
New entrants will be discouraged if access to the distribution channels is restricted.
ITC Limited India First will be facing high new entrants threat if
 Existing regulations support the entry of new players.

 Consumers can easily switch the brands due to weak/no brand loyalty.
 Initial capital investment is high.
 Building a distribution network is easy for new players.
 Retaliation from the existing market players is not a discouraging factor.
Threat of Substitute Products or services
The availability of substitute products or services makes the competitive environment

challenging for ITC Limited India First and other existing players. High substitute threat
shows that customers can use alternative products/services from other industries to meet their
needs. Various factors determine the intensity of this threat for ITC Limited India First
The Threat of Substitute Products or services increases when :
A cheaper substitute product/service is available from another industry
The psychological switching costs of moving from industry to substitute products are low.
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Substitute product offers the same or even superior quality and performance as offered by
ITC Limited India First’s product.
However, this threat is substantially low for ITC Limited India First when:
 The switching cost of using the substitute product is high (due to high psychological
costs or higher economic costs)
 Customers cannot derive the same utility (in terms of quality and performance) from
substitute product as they derive from the ITC Limited India First’s product.
Rivalry among existing firms
The Rivalry among existing firms shows the number of competitors that give tough
competition to the ITC Limited India First High rivalry shows ITC Limited India First
can face strong pressure from the rival firms, which can limit each other’s growth
potential. Profitability in such industries is low as firms adopt aggressive targeting and
pricing strategies against each other.
The Rivalry among existing firms will be low for ITC Limited India First if;
 There are only a limited number of players in the market

 The industry is growing at a fast rate
 There is a clear market leader
 The products are highly differentiated, and each market player targets different
sub-segments
 The economic/psychological switching costs for consumers are high.
 The exit barriers are low, which means firms can easily leave the industry without
incurring huge losses.
Similarly, there are some factors that increase the Rivalry among existing firms for ITC
Limited India First For example, the company will face intense Rivalry among existing
firms if market players are strategically diverse and target the same market. The rivalry
will also be intense if customers are not loyal with existing brands and it is easier to
attract others’ customers due to low switching costs. Competitors with equal size and
offering undifferentiated products with slow industry growth tend to adopt aggressive
strategies against each other. These all factors make the Rivalry among existing firms a
major strategic concern for ITC Limited India First
Bargaining Power of Suppliers
Bargaining power of suppliers in the Porter 5 force model reflects the pressure exerted by
suppliers on business organisations by adopting different tactics like reducing the product
availability, reducing the quality or increasing the prices. When suppliers have strong
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bargaining power, it costs the buyers- (business organisations). Moreover, high supplier
bargaining power can increase the competition in the industry and lower the profit and
growth potential for ITC Limited India First Similarly, weak supplier power can make the
industry more attractive due to high profitability and growth potential.
Bargaining power of suppliers will be high for ITC Limited India First if:
 Suppliers have concentrated into a specific region, and their concentration is

higher than their buyers.
 This force is particularly strong when the cost to switch from one supplier to other
is high for buyers (for example, due to contractual relationships).
 When suppliers are few and demand for their offered product is high, it
strengthens the suppliers’ position against ITC Limited India First
 Suppliers’ forward integration weakens the ITC Limited India First’s position as
they also become the competitors in that area.
 If ITC Limited India First is not well educated, does not have adequate market
knowledge and lacks the price sensitivity, it automatically strengthens the
suppliers' position against the organisation.
 Other factors that increase the suppliers’ bargaining power include-high product
differentiation offered by suppliers, ITC Limited India First making only a small
proportion of suppliers’ overall sales and unavailability of the substitute products.
Contrarily, the bargaining power of suppliers will be low for ITC Limited India First if:
 Suppliers are not concentrated

 Switching costs are low
 Product lacks differentiation
 Substitute products are available
 ITC Limited India First is highly price sensitive and has adequate market
knowledge
 There is no threat of forward integration by suppliers.
Bargaining Power of Buyers
Bargaining power of buyers indicates the pressure that customers exert on the business
organisations to get high quality products at affordable prices with excellent customer
service. This force directly influences the ITC Limited India First’s ability to accomplish
the business objectives. Strong bargaining power lowers profitability and makes the
industry more competitive. Whereas, when buyer power is weak, it makes the industry
less competitive and increase the profitability and growth opportunities for ITC Limited
India First.
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There are some factors that increase the bargaining power of buyers:
 A more concentrated customer base increases their bargaining power against ITC
Limited India First
 Buyer power will also be high if there are few in number whereas a number of
sellers (business organisations) are too many.
 Low switching costs (economic and psychological) also increase the buyers’
bargaining power.
 In case of corporate customers, their ability to do backward integration strengthen
their position in the market. Backward integration shows the buyers' ability to
produce the products themselves instead of purchasing them from ITC Limited
India First
 Consumers’ price sensitivity, high market knowledge and purchasing standardised
products in large volumes also increase the buyers' bargaining power.
 Some factors that decrease the bargaining power of buyers include lower customer
concentration (means the customer base is geographically dispersed), customers’
inability to integrate backwards, low price sensitivity, lower market knowledge,
high switching costs and purchasing customised products in small volumes.
PESTLE ANALYSIS
POLITICAL FACTORS-
Political stability : Political stability is one of the important most factor which influence
thegrowth of business directly. If Political stability is higher, then it leads to perfection
inbusiness & on the other hand if there is unstability the business will have to suffer.Taxation
policy : Tax policy of government will affect the price of inputs & it ultimately affectthe prices
of final products & it will directly affect the sale of product.Government intervenes : This
indicates that at what level the government intervences in theeconomy. If the government
intervence is more sometimes it helps the organization at largeextent.Subsidies : The subsidies
which are provided by government to different organisation atdifferent level also help it to
grow at faster rate & helps the organisation in reducing thefinance which is to be funded from
outside & it directly reduces interest amount paid infavour of fund raised from outside.Trading
policies : This indicates the policies related to import & export of goods and servicesfrom
different nations. If the policies are favourable more goods & services will be imported&
exported, & on the other hand if policies are unfavourable it will restricts the import
&export.Labour law : Labour law also affect the organisation, for example- child labour, a
child below14 year of age can not work In factory or any hazardious place.
ECONOMIC FACTORS
Interest rates : Interest rate directly affect the cost of capital, if the interest rate is higher thecost
of capital will increase & if it is lower then cost of capital will be lower. This directly affect
23 | P a g e
the profit of the organization & it’s growth. Tax charges : If the tax charged by the government
is lower then it will reduce the productprice & if it is higher then it will increase the prices of
the products.Exchange rates : This shows that what is the exchange rate or foreign currency
rate. Ifexchange rate is higher more amount is paid on import of goods & if it lowers less
amount isto be paid & on the other hand if it is higher the amount received will be more & if it
is lower the amount received will be low.National income : National income is important factor
as if affect the growth of theorganisation. If per capita income is more the amount spend will
be more & if it will be lowerthe amount spent will be less.Economic growth : Economic growth
is important factor in the development of theorganization. If economy grows at a higher speed
it will directly affect the growth of theorganization.Inflation rate : Inflation means the rise in
the value of all the product in the economy, ifinflation rate is higher the cost of products will
be higher & if inflation rate is lower the cost ofproduct will be lower. This directly affect the
growth of the organization.
SOCIAL FACTORS
Demographics : Demographics is the study of human population in the economy. It helps
theorganzation to divide the markets in different segments to target a large of customers.
ForExample- according to race, age, gender, family, religion, & sex.Distribution of income :
This shows that how income is distributed in the ecconomy. It directlyaffect the purchasing
power of the buyers. And ultimately leads to increase or decrease inthe consumption level of
the products.Changes in life style : Change in life style also leads to increase or decrease in the
demandfor different commodities. For example-
presently LCD & LED TV’s have replaced Digital
displayed TV set, this shows that the changes in life style of consumers.Consumerism : This
indicates that a large number of options are available while purchasingof goods to consumers,
so the choice becomes easy & quality products can be choose byconsumers. So while
purchasing a consumer have different choices to select productaccording to his
needs.Education levels : Education is one of the most important factor which influence the
buying
power of consumer, while selecting a particular good a consumer should know all it’s
features so it can differentiate them with another products.Law affect social behaviour :
Different laws are made by the government to safe guard therights of consumers. For example-
Consumer protection act, this law indicates that aconsumer can file a case against a seller if he
finds that he is cheated
TECHNOLOGICAL FACTORS
Advancement in technology : New technology helps in economising the scale of
production,this means that new technology helps in increasing the level of production, &
reducing thecosts of inputs, & maximising the level of profits.Discoveries & innovation :
Advancement in technology will leads to discoveries &innovations & further improvements in
technology so as to improve perfections in theproduction process.Competitive forces :
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Advancement in technology will also leads to competition in themarkets, more quality products
will be provided to consumers to cover a large number ofmarket. Automation : Change in
technology will leads to automation, this means that with newtechnology labour required is
less as machines are automatic. All the works are doneautomatically by the machines as earlier
it is labour oriented. Now all the work is machineoriented.Obselete rate : Day-by-day new
inventions are made so the rate of obselete is higher, as inComputer LAPTOPS have replaced
the PC. This shows that the technology becomesobselete very fast.Research & development :
This department plays a vital role in the development of theorganization. As this department
always do research that what are the demand of themarkets & how to make advancements so
the organization can survive in the competitiveworld.
ENVIRONMENTAL FACTORS
Ecological : The ecological and environment aspects such as weather, climate, &
climatechanges, which may especially affect industry such as tourism, farming, & insurance.
In FMCG Air conditioner’s d
emand increase in summer season.Environmental issues : Global warming is one of the major
issue now-a-days as externalfactor is becoming a significant issue for firms to consider. Many
remedies have been takento reduce Global warming.Environmental regulations : Various
regulations have been declared by government to safeguard the environment. For example- no
company should through its waste in rivers.
SWOT ANALYSIS OF FMCG SECTOR
The FMCG sector has the following SWOT analysis:
 Low operational costs

 Presence of established distribution networks in both urban and rural areas
 Presence of well-known brands in FMCG sector
 Deep roots in local culture and great understanding of consumer needs
 Lower scope of investing in technology and achieving economies of scale,

especially in small sectors
 Low export levels
 Counterfeits products. These products narrow the scope of FMCG products in
rural and semi urban market
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 Untapped rural market
 Rising Income Levels, i.e., increase in purchasing power of consumers.
 Large domestic market- a population of over one billion
 Export potential
 High Consumer goods spending
 Removal of import restrictions resulting in replacing of domestic brands

 Slowdown in rural demand
 Tax and regulatory structure
COMPANY INFORMATION
COMPANY DEFINITION
ITC is one of India's foremost private sector companies and a diversified conglomerate with
businesses spanning Fast Moving Consumer Goods, Hotels, Paperboards and Packaging, Agri
Business and Information Technology. The Company is acknowledged as one of India's most
valuable business corporations with a Gross sales value of ₹ 90,104 crores and Net Profit of ₹
15,058 crores (as on 31.03.2022). ITC was ranked as India's most admired company, according
to a survey conducted by Fortune India, in association with Hay Group.
ITC is amongst one in every Asian nation's foremost multi-business enterprise and is rated
among the World's Best massive firms, Asia's 'Fab 50', additionally them World's Most
honourable firms by Forbes magazine. it's also rated as 'India's Most loved Company' in a
survey conducted by Fortune India magazine and fodder Group. ITC also options united of the
world's largest property price creator within the goods trade in a study by the Boston Consulting
Group. ITC has been listed among India's most useful Companies by Business these days
magazine. the corporate is among India's '10 most useful (Company) Brands' in keeping with
a study conducted by complete Finance and printed by the Economic Times. ITC additionally
ranks among Asia's fifty best playacting firms compiled by Business Week.
ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard
and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its
wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in
'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC Infotech, is a specialized global
digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant
portfolio of 25 world- class Indian brands that create and retain value in India. ITC's world
class FMCG brands including Aashirvaad, SunFeast, Yippee! Bingo! B Natural, ITC Master
Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep,
Aim and others have garnered encouraging consumer franchise within a short span of time.
While several of these brands are market leaders in their segments, others are making
appreciable progress.
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COMPANY FOUNDED & FOUNDER DETAILS
ITC, the Company was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited. As the Company's ownership progressively
Indianized, the name of the Company was changed to India Tobacco Company Limited in
1970 and then to I.T.C. Limited in 1974. Since the corporate was based totally on
agricultural resources, it ventured into partnerships in 1911 with farmers from the
southern a part of Asian country to supply leaf tobacco.
Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was
crucial in building up the Indian management for the company. As the company's
ownership was progressively Indianized, under Haskar's leadership, the name of the
company was changed from "Imperial Tobacco Company of India Limited" to "India
Tobacco Company Limited" in 1970. ITC also became the first company in India to start
from the 1971 Scissor's Cup.
HISTORY OF ITC
ITC Limited" was originally named "Imperial Tobacco Company of India Limited",
succeeding W.D. & H.O. Wills on twenty four August 1910 as a British-owned company
registered in Kolkata. Since the corporate was based on agricultural resources, it ventured into
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partnerships in 1911 with farmers from the southern a part of India to supply leaf tobacco.
Under the company's umbrella, the "Indian Leaf Tobacco Development Company Limited"
was shaped in Guntur district of state in 1912. The 1st cigarette mill of the company was
established in 1913 in Bangalore.
In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.
ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to more strengthen
its presence helped established an autochthonous cigarette tissue-paper-making plant in 1946
to cut back import prices significantly. Then, a mill for printing and packaging was set up in
Madras in 1949 The company noninheritable the business organisation of Tobacco makers
(India) restricted and therefore the complementary planography printing company of Printers
(India) restricted in 1953.The company was born-again into a public company on twenty-seven
Gregorian calendar month 1954. the primary step towards Indianization was taken within the
same year with 6% of the Indian belongings of the company. ITC also became the first Indian
company to invade market research throughout this time. throughout the 1960s, technology
was given additional specialize in fixing cigarette machinery and filter-rod producing facilities
geared toward achieving self-reliance in cigarette-making. In 1973, ITC established its
integrated research facility in Bangalore, aimed at diversification and venturing into newer
businesses with research and development. With the evolution diversification plans, the name
of the corporate was modified to 'I.T.C. Limited' in 1974. The Indian belongings grew more to
40% during this time. ITC entered into the welcome sector with edifice business in 1975 with
the acquisition renaming of ITC Welcome group Hotel Chola in Madras. ITC selected the
welcome sector for its potential to earn high levels of foreign exchange, produce business
infrastructure and generate large-scale direct and indirect employment. The belongings went
over 60% in 1976 and additional hotels were started by the corporate within the following
years. ITC Sangeet analysis Academy was established at urban centre in 1977. In 1979, ITC
entered the paperboards business by promoting ITC Bhadrachalam Paperboards restricted. J N
Sapru took over because the company's chairman in 1983 and also the international growth
started with the acquisition of Hindu deity Nepal personal Limited in 1985. The year 1986 saw
vigorous moves from the corporate with the gap of AN Indian building within the town of
recent York, acquisition and renaming of Vishvarama Hotels to ITC Hotels restricted, fixing
of 2 new ventures – the ITC Classic Finance restricted and ITC Agro technical school restricted
below its umbrella. ITC additionally entered into the edible oils business with the launch of the
Sundrop complete of cookery oils in 1988. Tribeni Tissues Limited was noninheritable in 1990.
K L Chugh assumed the role of chairman in 1991 and ITC world Holding personal limited was
started as a global mercantilism company in Singapore in 1992. In 1994, all the hotels below
company were transferred into the listed subsidiary ITC Hotels restricted. ITC, through the
complete Wills, sponsored the 1996 Cricket World Cup.
Y.C. Deveshwar took over because the company's chairman in 1996 and also the corporate
governance structure was re-crafted to support the effective management of multiple
businesses. ITC exited from edible oils business and monetary services; oversubscribed the
ITC Classic Finance restricted to ICICI restricted and handled the Sundrop business to
ConAgra Foods Limited in 1998. within the year 2000, an innovative initiative for farmers
known as "e-Choupal" was started in Madhya Pradesh 2000. identical year witnessed the
launch of ITC's Wills Sport vary of casual wear with its 1st retail outlet in capital of India and
28 | P a g e
ITC's entry into writing paper product and gifting business introducing the 'Expressions' range
of salutation cards and schoolfellow notebooks. a completely in hand info technology
subsidiary, ITC Infotech India restricted was additionally started in 2000 and also the ITC
Bhadrachalam Paperboards restricted was unified into ITC Limited. The name of the corporate
was modified to "ITC Limited" omitting the dots and adapting the strategy "No stops for ITC"
in 2001. AN worker option theme was introduced for the first time and an internet portal for
the corporate was launched. Subsidiaries for ITC Infotech were established within the uk and
also the USA.
ITC 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
ITC MISSION
To enhance the wealth generating capability of the enterprise in a globalising environment,
delivering superior and sustainable stakeholder value.
KEY BUSINESS HIGHLIGHTS OF THE YEAR

ITC is a market leader in organized cigarettes business in Bharat. ITC stands at 79% market
share in cigarettes section in volume terms. Secondly, Godfrey Phillips India Ltd secures 11%
share & VST Industries Ltd at 8%.
Over last ten years the revenue contribution from alternative FMCG business inflated from
12% to 22%. FMCG Brands of ITC have created important market place with quality
preference in addition as popularity. although there have been massive brands already securing
shopper preference. however, ITC brands secured Brobdingnagian market holding.
(i) Cigarettes
ITC cigarettes brands embrace Insignia, India Kings, Classic, Gold Flake, yank Club, Navy
Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.Several new
variants were introduced throughout FY21 to cater to the endlessly evolving shopper
preferences and to make sure the long run readiness of the merchandise portfolio. These
embrace the launch of innovative offerings appreciate ‘Gold Flake Neo’, ‘Classic Connect’,
‘American Club Clove Mint’, ‘Gold Flake Indie Mint’ and ‘Capstan contemporary Flavour’.
fresh packs were conjointly introduced for many ‘Navy Cut’ variants.
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Cigarettes Industry:
After four consecutive years of decline, Bharat smoke business reported a rise of 1.5% in 2018.
Cigarette taxes in India ranks among the very best within the world. Therefore, high tax rates
make smokes unaffordable to an outsized section of shoppers & successively the tobacco
market experiences slow growth. The cigarette business in Bharat declined from 100.9 billion
sticks in 2013 to 82.5 billion in 2018. throughout constant period, retail sales price has inflated
from Rs. 568 billion to Rs. 831 billion.
Moreover, retaliatory taxes on the legal cigarette industry have resulted in zoom within the
illicit cigarette trade, creating India the fourth largest illicit cigarette market globally in keeping
with Euromonitor estimates. whereas legitimate cigarette industry volumes have declined
systematically over the last decade, illicit cigarette trade volumes in contrast have full-grown
quickly throughout constant period, accounting for regarding common fraction of the domestic
industry.
The large section especially has been severely wedged in recent years subsequent to the sharp
tax increase of 19% on this segment beneath GST. The steep increase in smoke taxes with
impact from first February, 2020, has provided additional bonus to illicit cigarette interchange
the country.
There are volumes drop by last three years. However, ITC achieved margin expansion.
(ii) FMCG Others
(a) Imprisonment has an effect on demand of FMCG products
Due to lockdown as individuals were staying more reception there have been marked
preference for larger pack formats as shoppers sought-after to cut back frequency of purchase.
Staples, noodles, biscuits, dairy farm products, sanitizers, hand wash, floor cleaners, and so on
witnessed sturdy demand throughout the primary half the twenty-one but the demand got
normalized during half of the year. On the opposite hand, discretionary classes and people with
comparatively higher strict Lockdown have an effect on demand of FMCG products
Due to imprisonment as people were staying additional reception there have been marked
preference for larger pack formats as shoppers wanted to cut back frequency of purchase.
Staples, noodles, biscuits, farm products, sanitizers, hand wash, floor cleaners, etcetera
witnessed strong demand throughout the primary half the FY twenty-one but the demand got
normalized during last half of the year. On the opposite hand, discretionary classes and people
with comparatively higher saliency of ‘out-of-home’ consumption saw contraction in sales.
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(b) E- commerce solutions
As to reply to the multiple challenges arising out of restricted quality of individuals and goods,
curbs on operating hours and outlet operations throughout FY 21, many technology-driven
solutions were deployed by the corporate to effectively service the surge in demand.
Company conjointly unrolled the ‘ITC e-store’ – an exclusive direct to-consumer platform – to
facilitate ‘contactless shopping’ and build its product accessible to consumers, that was the
necessity of the hour.
As a result sales through the e-Commerce channel over doubled during FY 21, taking its
saliency to over 5% of phase Revenue.
(c) New Additions to the portfolio

ITC launched over a hundred and twenty new and innovative products with compelling worth
propositions in record time, demonstrating agility associated execution excellence.
ITC’s spirited portfolio of over twenty-five best Indian brands currently represents an annual
client pay of over Rs. 22000 surprisingness of ‘out-of-home’ consumption saw contraction in
sales.
STRATEGIC FRAMEWORK OF ITC

The Strategy pronounces the ITC’s Vision as a global organization platform for interior
transport to assist expeditiously address international and regional desires in inland transport.
The platform provides a comprehensive restrictive framework for inland transport, admire the
role of the International Maritime Organization (IMO) and International Civil Aviation
Organization (ICAO). It sets the mission for ITC to contribute to property inland transport and
quality for achieving the sustainable development goals within the UNECE and UN Member
States through policy dialogue, harmonizing regulatory frameworks, as appropriate, promoting
new technologies, aiding in enhancing property and supporting the implementation of legal
instruments.
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The Strategy provides strategic objectives, list of priorities Associate in Nursing an action set
up as well as on resource mobilization and partnership. It organises the work on interior
transport around four pillars:
 Development of regional and international inland transport conventions
 Support to new technologies and innovations
 Support to regional, interregional and global inland transport policy dialogues
 Promotion of property regional and interregional inland transport property and
mobility.
 The Strategy conjointly stipulates road safety because the special priority.
With the choice to adopt the Strategy, ITC requested its subsidiary bodies (technical operating
parties and teams of experts) to figure towards the implementation of the Strategy. It requested
nearer collaboration with UNECE sister Regional Commissions, specialized agencies, the
Department of Economic and Social Affairs (DESA) and different relevant organizations and
institutions. It conjointly entailed demand-driven synergies and collaboration among UNECE
with other subprogrammes, as appropriate
SHAREHOLDING PATTERN OF ITC

ITC's equity shares are listed on Bombay Stock Exchange (BSE), National Stock Exchange of
India (NSE) and Calcutta Stock Exchange (CSE). The company's Global Depository Receipts
(GDRs) are listed on the Luxembourg Stock Exchange. ITC is a constituent of two major stock
market indices of India: BSE SENSEX and NIFTY 50 of NSE.
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Table III - Statement showing shareholding pattern of the Public shareholder
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Partly Shareholding %
Nos. of shares
paid-up calculated as pe
Category & Name of the Nos. of No. of fully paid underlying Total nos. of
PAN equity SCRR,
Shareholders shareholder up equity Depository shares held
(II) shares 1957
(I) (III) shares held (IV) Receipts VII = IV+V+VI
held As a % of
(VI)
(V) (A+B+C2) VIII
(1) Institutions
(a) Mutual Funds 331 1,232,625,574 0 0 1,232,625,574 10.0
Name
SBI-ETF Nifty 50 151,726,270 0 0 151,726,270 1.2
Name - - - - -
Venture Capital
(b) 0 0 0 0 0 0.0
Funds
Name - - - - -
Alternate
(c) 31 12,668,308 0 0 12,668,308 0.1
Investment Funds
Name - - - - -
Foreign Venture
(d) 0 0 0 0 0 0.0
Capital Investors
Name - - - - -
Foreign Portfolio
(e) 845 1,562,481,845 0 0 1,562,481,845 12.6
Investors
Name :
GQG Partners Emerging

135,886,187 0 0 135,886,187 1.1
Markets Equity Fund
Financial
(f) 120 979,376,831 0 0 979,376,831 7.9
Institutions/ Banks
Name :
Specified Undertaking of
974,531,427 0 0 974,531,427 7.9
the Unit Trust of India
Insurance
(g) 59 2,577,497,807 0 0 2,577,497,807 20.9
Companies
Name :
Life Insurance Corporation

1,938,743,442 0 0 1,938,743,442 15.7
of India
General Insurance
216,645,508 0 0 216,645,508 1.7
Corporation of India
The New India Assurance

183,326,650 0 0 183,326,650 1.4
Company Limited
The Oriental Insurance

136,362,834 0 0 136,362,834 1.1
Company Limited
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Provident Funds/
(h) 35 126,437,601 0 0 126,437,601 1.0
Pension Funds
Name - - - - -
(i) Any Other :
QIB - Insurance Company

127 349,112,781 0 0 349,112,781 2.8
Registered
Sub-Total (B)(1) 1,548 6,840,200,747 0 0 6,840,200,747 55.5
Central
Government/ State
(2) 0 0 0 0 0 0.0
Government(s)/ President
of India
Name - - - - -
Sub-Total (B)(2) 0 0 0 0 0 0.0
(3) Non-institutions
(a) Individuals -
i. Individual shareholders
holding nominal share 2,790,641 1,442,540,624 0 0 1,442,540,624 11.7
capital up to Rs. 2 lakhs.
ii. Individual shareholders

holding nominal share
394 158,518,144 0 0 158,518,144 1.2
capital in excess of Rs. 2
lakhs.
Name - - - - -
NBFCs registered with

(b) 0 0 0 0 0 0.0
RBI
Name - - - - -
(c) Employee Trusts 0 0 0 0 0 0.0
Name - - - - -
Overseas Depositories
(d) (holding DRs) (balancing 0 0 0 0 0 0.0
figure)
Name - - - - -
(e) Any Other :
(i) Bodies Corporate

7 3,619,939,662 0 0 3,619,939,662 29.3
(Foreign)
(ii) Bodies Corporate

7,285 126,324,271 0 0 126,324,271 1.0
(Domestic)
(iii) NRIs 37,740 102,804,387 0 0 102,804,387 0.8
(iv) Trust 102 5,133,720 0 0 5,133,720 0.0
(v) Clearing Members /

314 4,460,946 0 0 4,460,946 0.0
House
(vi) Foreign Nationals 2 222,120 0 0 222,120 0.0
(vii) Investor Education

1 25,597,286 0 0 25,597,286 0.2
and Protection Fund
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Authority Ministry of
Corporate Affairs
Name :
Tobacco Manufacturers
2,978,347,320 0 0 2,978,347,320 24.1
(India) Limited
Myddleton Investment
486,311,940 0 0 486,311,940 3.9
Company Limited
Rothmans International
154,954,890 0 0 154,954,890 1.2
Enterprises Limited
Sub-Total (B)(3) 2,836,486 5,485,541,160 0 0 5,485,541,160 44.5
Total Public
Shareholding (B)= 2,838,034 12,325,741,907 0 0 12,325,741,907 100.0
(B)(1)+(B)(2)+ (B)(3)
ORGANISATIONAL STRUCTURE OF ITC
MARKET SHARE OF ITC IN FMCG SECTOR

ITC is biggest cigarettes & second largest FMCG company in India with ~78% of market share
in cigarettes & presence in staples, biscuits, noodles, snacks, chocolate, dairy products &
personal care products. ITC, which owns brands like Ashirwad, Bingo, Classmate, Savlon and
Yippee, "remains focused on rapidly scaling up the FMCG biz anchored on strong growth
platforms and a future-ready portfolio”. ITC Ltd is going to expand exports of its FMCG
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products and make it a significant contributor to revenue in the years to come, said chairman
and managing director Sanjiv Puri.
SWOT ANALYSIS OF ITC

SWOT analysis of ITC Limited analyses the brand by its strengths, weaknesses, opportunities
& threats. In ITC Limited SWOT Analysis, the strengths and weaknesses are the internal
factors whereas opportunities and threats are the external factors. SWOT Analysis is a proven
management framework which enables a brand like ITC Limited to benchmark its business &
performance as compared to the competitors. ITC Limited is one of the leading brands in the
FMCG sector. ITC Limited's strengths look at the key aspects of your business that give you a
competitive advantage in the marketplace. Some important factors in a brand's strengths are its
financial position, experienced employees, unique products and intangible assets such as brand
equity. The strengths of ITC Limited's SWOT Analysis are listed below:
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MARKETING
MARKETING STRATEGY
SEGMENTATION, TARGETING AND POSITIONING (STP)
SEGMENTATION
Candyman Fantastik marketing objectives are mainly focused on three aspects,
 Increasing product awareness among targeted consumers
 Providing information about product features
 Reducing consumer resistance to buying the product
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Geographic Factors: Environment is a term used by marketers to describe the characteristics
of a population that can be used to influence the success of a business or commercial venture.
The most important demographic factors for businesses include age, sex, income, education
level, and occupation.
In the case of Candyman Fantastik, it targeted North Region, Northeast Region, Central
Region, East Region, West Region & South Region.
Age: Anyone above 5 years of age.
Gender: Male & Female
Income Groups: 5000-10000 || 10000-20000 || 20000+
Psychographic Factors: Low on Health Consciousness
Behavioural Factors: Rate of Usage & Loyalty Status
TARGETING
Chocolates are relished by people of all age groups and geographies in India, so there was no
particular target group singled out for Pulse. The candy, the stick filled with chocolate with its
beautiful taste, was expected to cut across age groups in a market focussed on kids, and
therefore, flooded with straight and sweet flavours. Candyman Fantastik was intended to be an
anytime, anywhere candy. And India being a country full of kids where you need to keep having
something to keep them going, it is one of the most soothing candies and loved by kids. Since
Rajasthani and Gujarati cuisines share a similar tanginess as Candyman, the company decided
to test-market it in these states first. The exercise proved so successful that it had to be
converted into a full-fledged launch.
POSITIONING
They have been trying to position themselves as chocolates for all age groups and not just kids.
The campaign has successfully created a picture in the mind of the customers that Candyman
is not just a chocolate but means of celebrations. The brand was positioned as a
candy/confectionery which is irresistible and adopted the tagline " Kuch Bhi Karega for
Candyman " translated roughly to " Will Do Anything for Candyman ". The brand was
targeting the kids (naughty types) who seek delightful candy experience.
MARKET MIX (4P’S)
PRODUCT: -
39 | P a g e
ITC launched the 'Candyman' range of confectioneries in August 2002. Led by the
‘Candyman’ Fruitee Fun' range of assorted fruit flavours ('Wild banana', 'Pineapple Punch',
'Orange Josh' and 'Mango Delite'), the 'Candyman' portfolio now includes deposited candy
products like 'Candyman Butterscotch Licks' and 'Candyman Eclairs' (Choco flavoured as
well as Vanilla Cream centre inside a Butterscotch outer shell). Candy man is a celebrated
brand name for confectionery from the house of itch foods. The brand has endorsed multiple
products - choco double eclairs, toffichoo, fruitee funn, creme lacto & crunchy to name a
few. It has delighted kids and adults with its sweet offerings. The most recent offering is
Candyman Fantastik - centre filled wafer biscuits. These are wafer sticks filled with rich and
luscious creme filling. The outer wafer has a crispy and crunchy bite, while the creme filling
inside has a chocolatey flavour making it irresistible. It has the right balance of wafer and
chocolate, making Candyman Fantastik ideal for consumption at any place and any time - to
cater to one's sweet tooth. These sticks are available in a premium outer packaging - that is
ideal for gifting to friends and family, treating kids or just keeping it at home to delight taste
buds and cater to one's sweet tooth. Each box has 20 individually packed sticks.
The coffee toffee segment also saw the successful launch of 'Candyman cofitino' in November
2005. The brand was further strengthened with the launch of 'Candyman Natkhat Mango' and
'Candyman Maha Mango'. In line with the strategy to provide innovative flavours to the
consumers, Candyman Mango Licks was launched in June2007 and Candyman Natkhat
Gowawa in October 2007. The 'Candyman' range of confectionary is targeted at 'fun-filled,
naughty kids' who seek a delightful candy experience through a range of candy types and
flavours.
ITC Ltd.’s confectionery brand Candyman Fantastik, acclaimed for its crispy wafer rolls filled
with luscious choco creme, has released a set of 12 new contextual TVCs for its campaign
‘Cricket’s Snacking Partner’. The campaign celebrates extraordinary, on-the-field, cricketing
moments that elicit exhilarating fan moments, calling for a sweet indulgent celebration.
Through this campaign, the brand endeavours to become an inclusive part of consumers’ at-
home, cricket watching experience. ITC forayed into the sizeable bridge chocolate and wafer
crème market with the launch of Candyman Fantastik last year. Fantastik from ITC Foods has
been amongst the most successful launches in this segment recently with an encouraging
consumer response for the unique offering. The three phased campaign, led by contextual
TVCs, amplified through subsequent influencer and extensive sampling activities, intends to
sweeten up consumers’ homebound cricket cheering experience. Candyman Fantastik Choco
stick’s unique cylindrical shape makes it a relevant mnemonic for stumps or the handle of a
cricket bat. The contextual TVCs translate the spirit of a cricketer’s ‘Fantastik’ celebratory
moment into one which can be replicated by consumers at home with the product, taking a
differentiated approach to sweet snacking experience. To further elevate the consumers’ match
viewing experience, Candyman Fantastik has launched an in-home mini treats pack, ideal for
snacking by oneself or with friends and family during match hours. The TVCs have been
developed around three major fan moments including a batsman’s cricketing milestone
represented by raising the bat, taking a wicket by completing a catch and feeling ecstatic about
it and rejoicing a team’s victory in the quintessential cricketing style by uprooting the stumps.
Each of these moments has a customized TVC for the fans from different cities like Mumbai,
Bangalore, Chennai and Hyderabad. The TVCs which start by re-creating the ‘celebrated
moment’ soon cut to the fans taking delight of the achievement, burst into excitement and
seeing themselves celebrating akin to the player shown in the beginning.
40 | P a g e
PRICE: -
Candyman, as the name itself describe, was born as a hard-boiled sugar candy product. The
brand was launched first in fruit flavours - Fruitee Fun variant which came in banana,
pineapple, orange and mango flavours. Candyman was launched with a campaign featuring a
naughty boy and a cartoon boy as the central characters. The campaigns revolved around the
fight between the real and cartoon boys for Candyman. The strength of Candyman was its
relentless innovation in terms of flavours and variants. Some of the variants of Candyman is
given below:
 Candyman Natkhat Mango

 Candyman Maha Mango
 Candyman Echlairs
 Candyman Mangolicks in 2007
 Candyman Toffichoo Strawberry in 2009
 Candyman Lacto Creme center in 2008
 Candyman Butter Scotch licks
 Candyman Choco Double.
These large number of choices together with the strong ITC distribution network gave
Candyman enough room for growth.
Candyman Fanstastik is priced at 5rs per stick as well as 10 rs per stick for children to buy at
affordable prices because it is meant for children targeted.
PLACE: -
The COO of ITC says Candyman Fantastik as:
 Wafer sticks filled with rich and luscious creme filling

 Right balance of wafer and chocolate
 Ideal for gifting to friends and family, treating kids
 Individually wrapped inside a zip-lock pack
Candy man is a celebrated brand name for confectionery from the house of itch foods. The
brand has endorsed multiple products - choco double eclairs, toffichoo, fruitee funn, creme
lacto & crunchy to name a few. It has delighted kids and adults with its sweet offerings. The
most recent offering is Candyman Fantastik - centre filled wafer biscuits. These are wafer
sticks filled with rich and luscious creme filling. The outer wafer has a crispy and crunchy
bite, while the creme filling inside has a chocolatey flavour making it irresistible. It has the
right balance of wafer and chocolate, making Candyman Fantastik ideal for consumption at
any place and any time - to cater to one's sweet tooth. These sticks are available in a premium
outer packaging - that is ideal for gifting to friends and family, treating kids or just keeping it
at home to delight taste buds and cater to one's sweet tooth. Each box has 20 individually
packed sticks. It was sold at retail shops to cater to children mainly of naughty types.
PROMOTION: -
41 | P a g e
Anuj Rustagi joined ITC as Chief Operating Officer for the chocolates, coffee and
confectionary cluster of the ITC Foods Business in 2017. Prior to ITC, he was a global brand
director at Unilever Plc, London. He says that “Candyman as a master brand is one of the Rs
500-crore plus consumer brands that ITC foods has. Within that, Fantastik has really been on
a fantastic journey in the last one year. It has been one of our best performing innovations and
it is handsomely contributing to the Candyman portfolio. And obviously, we got impacted by
COVID like all impulse categories did. But before that, we were clocking really well in
consumables, almost hitting a run rate of Rs 100 crore+. And, we are looking to get back on
the growth trajectory accounting for consumer habits and the change in the context”
This advertisement was surfaced on the internet during the IPL. ITC Ltd.’s confectionery
brand Candyman Fantastik has released a set of 12 new contextual TVCs for its campaign
‘Cricket’s Snacking Partner’. The campaign celebrates extraordinary, on-the-field, cricketing
moments that elicit exhilarating fan moments, calling for a sweet indulgent celebration.
Through this campaign, the brand endeavours to become an inclusive part of consumers at
home, cricket watching experience.
The three-phased campaign, led by contextual TVCs, amplified through subsequent

influencer and extensive sampling activities, intends to sweeten up consumers' homebound
cricket cheering experience. Candyman Fantastik Choco stick’s unique cylindrical shape
makes it a relevant mnemonic for stumps or the handle of a cricket bat. The contextual TVC
translate the spirit of a cricketer’s 'Fantastik' celebratory moment into one which can be
replicated by consumers at home with the product, taking a differentiated approach to sweet
snacking experience. To further elevate the consumers’ match viewing experience,
Candyman Fantastik has launched an in-home mini treats pack, ideal for snacking by oneself
or with friends and family during match hours.
SWOT ANALYSIS OF CANDYMAN FANTASTIK
BCG
Boston Consulting Group (BCG) Matrixes a four celled matrix (a 2 * 2 matrix) developed by
BCG, USA. It is the most renowned corporate portfolio analysis tool. It provides a graphic
representation for an organization to examine different businesses in its portfolio on the basis
of their related market share and industry growth rates. It is a two-dimensional analysis on
management of SBU’s (Strategic Business Units). In other words, it is a comparative analysis
of business potential and the evaluation of environment. According to this matrix, business
42 | P a g e
could be classified as high or low according to their industry growth rate and relative market
share. Relative Market Share= SBU Sales this year leading competitors’ sales this year.
Market Growth Rate= Industry sales this year - Industry Sales last year. The analysis requires
that both measures be calculated for each SBU. The dimension of business strength, relative
market share, will measure comparative advantage indicated by market dominance. The key
theory underlying this is existence of an experience curve and that market share is achieved
due to overall cost leadership matrix has four cells, with the horizontal axis representing
relative market share and the vertical axis denoting market growth rate. The mid-point of
relative market shares set at 1.0. if all the SBU’s are in same industry, the average growth rate
of the industry is used. While, if all the SBU’s are located in different industries, then the
mid-point is set at the growth rate for the economy. Resources are allocated to the business
units according to their situation on the grid. The four cells of this matrix have been called as
stars, cash cows, question marks and dogs. Each of these cells represents a particular type of
Star
STAR
A star is a fast-growing market leader. They generally have the largest profits but needs a lot
of cash to finance rapidly. The best strategy is to protect existing market share by reinvesting
earnings in product improvement, better distribution, more promotion and production
efficiency. Management needs to ensure that its existing consumer base is increasing
business.
CASH COWS
A Cash Cow produces more cash then it requires to grow and hence, the name.
The product is in a low growth market but has a dominant market share.
The best strategy is to maintain the market share by being a price leader and
making technological improvements. The excess cash generated can be used by
other products in the portfolio where large investments are required.
QUESTION MARK
A Question Mark, also known as a problem child, shows rapid growth but lower
profit margins. It has a low market share in a high growth market. It needs a
great deal of cash to increase market share.
The strategy is to either use the cash to invest heavily in gaining market share,
acquire competitors or drop the SBU at all. Marketers need to make a lot of
efforts to make the problem child progress to a star.
DOGS
A Dog has a low market share in a low growth market. Most dogs eventually
leave the marketplace.
43 | P a g e
The strategy is either to divest or harvest. Divesting is the practice of shutting
down the SBU. In contrast, harvesting is the practice of cutting back all the
investment to maximise profits, even if it loses all market shares. Let’s now move
on our firm in focus ITC Ltd and see what ITC BCG matrix is like. But first, we'll
look into the Product Mix of ITC.
PLC - PRODUCT LIFE CYCLE

Every product has life cycle. Every product would have a limited life and will pass through
different stages bearing different challenges and opportunities. As sales and profits in these
life cycle stages vary, a different marketing strategy should be followed by company at every
stage. There are four stages of a product life cycle – Introduction, growth, maturity and
decline. It is not compulsory that a product must undergo all stages in its life cycle.
44 | P a g e
VALUE CHAIN ANALYSIS
Value chain analysis is a way to assess each activity in a company's value chain to understand
where opportunities for improvement lie. When conducting a value chain analysis, you need
to consider how each step increases or decreases the value of your end product or service.
FINANCE
FINANCIAL SUMMARY OF ITC

ITC Limited reported earnings results for the second quarter and six months ended September
30, 2022. For the second quarter, the company reported revenue was INR 190,626.8 million
compared to INR 153,131.5 million a year ago. Net income was INR 46,197.7 million
compared to INR 37,137.6 million a year ago. Basic earnings per share from continuing
operations was INR 3.73 compared to INR 3.02 a year ago. Diluted earnings per share from
continuing operations was INR 3.72 compared to INR 3.02 a year ago. For the six months,
revenue was INR 392,146.8 million compared to INR 300,009.5 million a year ago. Net
income was INR 90,095.3 million compared to INR 69,902.4 million a year ago. Basic
45 | P a g e
earnings per share from continuing operations was INR 7.29 compared to INR 5.68 a year
ago. Diluted earnings per share from continuing operations was INR 7.28 compared to INR
5.68 a year ago.
BALANCE SHEET, INCOME STATEMENT, AND CASH FLOW

STATEMENT
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INCOME STATEMENT OF ITC
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P/E RATIO OF THE COMPANY AND INDUSTRY P/E
According to ITC's latest financial reports and stock price the company's current price-to-
earnings ratio (TTM) is 25.2084. At the end of 2022 the company had a P/E ratio of 20.1.
Price-to-Earnings ratio, P/E Multiple, or P/E Ratio is an important valuation multiple

that is defined as:
P/E = Market Capitalization / Net Income
or, using per-share numbers:
P/E = Stock Price / Earnings Per Share (EPS)
Applying the above formula, P/E ratio of ITC is calculated as :
Current Market Cap [ ₹442,075.0 Cr] as on Nov 11,2022
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(/) Earnings [ ₹17,511.1 Cr] based on TTM-Consolidated Results
(=) P/E Ratio [ 25.25x]
P/E Ratio indicates the multiple of earnings investors are willing to pay to own one
share of the company.
Thus, for ITC , the investors are currently willing to pay 25.25 times earnings to own 1
share of the company.
PE Multiples are the most widely used valuation multiple in practice.
THE ABOVE FIGURE REPRESENTS THE P/E RATIO OF THE FMCG SECTOR
Since P/E ratio uses Net Income in the calculation, P/E multiples are not always reliable
for valuing companies with negative earnings.
In such cases, you may consider using Price to Book ratio or Price to Sales ratio of ITC
P/E ratios, also, would not adjust for differences in the capital structure between
companies.ITC 's latest p/e ratio is 25.25x.
52 | P a g e
- ITC 's p/e ratio for fiscal years ending Mar2022 to Mar2018 averaged 22.22x.
- ITC 's operated at median p/e ratio of 20.43x from fiscal years ending March 2018 to
2022.
- Looking back at the last 5 fiscal years, ITC 's p/e ratio peaked in Mar2019 at 28.88x.
- ITC 's p/e ratio hit its five-year low in Mar2020 of 13.81x.
LIQUIDITY AND DEBT RATIOS, PROFITABILITY, SOLVENCY,

TURNOVER, AND WORKING CAPITAL RATIO OF ITC
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M M M M Ma
ar ar ar ar r
Investment Valuation Ratios '22 '21 ’20 ’19 '18
Face Value 1. 1. 1. 1. 1.0
00 00 00 00 0
Dividend Per Share
Operating Profit Per Share (Rs) 16 13 15 15 13.
.76 .81 .67 .02 51
Net Operating Profit Per Share (Rs) 49 40 40 39 35.
.23 .03 .19 .44 60
Free Reserves Per Share (Rs)
Bonus in Equity Capital 90 90 90 90 91.
.32 .43 .55 .80 20
Profitability Ratios
Operating Profit Margin(%) 34 34 38 38 37.
.05 .50 .98 .06 93
Profit Before Interest And Tax Margin(%) 30 29 33 33 33.
.27 .58 .87 .66 67
Gross Profit Margin(%) 31 31 35 35 35.
.19 .16 .65 .17 09
Cash Profit Margin(%) 27 28 33 28 27.
.54 .96 .38 .14 18
Adjusted Cash Margin(%) 27 28 33 28 27.
.54 .96 .38 .14 18
Net Profit Margin(%) 25 26 30 26 25.
.12 .71 .98 .04 94
Adjusted Net Profit Margin(%) 24 25 29 24 24.
.38 .35 .43 .92 89
Return On Capital Employed(%) 33 30 31 33 32.
.95 .67 .95 .56 50
Return On Net Worth(%) 24 22 24 22 21.
.93 .44 .19 .03 46
Adjusted Return on Net Worth(%) 25 22 24 22 21.
.32 .83 .84 .44 08
Return on Assets Excluding Revaluations 49 47 51 46 43.
.91 .92 .76 .89 30
Return on Assets Including Revaluations 49 47 51 46 43.
.91 .92 .76 .89 30
Return on Long Term Funds(%) 33 30 31 33 32.
.95 .67 .95 .56 51
Liquidity And Solvency Ratios
Current Ratio 1. 1. 2. 1. 1.7
73 65 03 89 6
Quick Ratio 0. 0. 1. 1. 1.1
96 84 26 24 0
Debt Equity Ratio
Long Term Debt Equity Ratio
Debt Coverage Ratios
Interest Cover 52 40 36 42 189
7.50 3.54 9.66 2.36 .95
Total Debt to Owners Fund 0. 0. 0. 0.0
00 00 00 0
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Financial Charges Coverage Ratio 57 44 39 45 203
1.51 0.45 9.74 3.11 .70
Financial Charges Coverage Ratio 43 33 31 30 140
2.28 3.14 1.01 8.99 .11
Management Efficiency Ratios
Inventory Turnover Ratio 5. 5. 5. 6. 6.2
94 06 73 28 9
Debtors Turnover Ratio 24 19 14 14 16.
.45 .46 .98 .40 85
Investments Turnover Ratio 0. 0. 0. 6. 6.2
99 84 78 28 9
Fixed Assets Turnover Ratio 2. 1. 1. 2. 2.2
01 76 83 09 7
Total Assets Turnover Ratio 1. 0. 0. 0. 0.8
01 85 76 82 3
Asset Turnover Ratio 0.98 0.78 0.79 0.86 0.87
Average Raw Material Holding

Average Finished Goods Held
Number of Days In Working Capital 32.12 46.61 64.53 44.49 30.99
Profit & Loss Account Ratios
Material Cost Composition 45.21 42.72 37.16 37.07 34.74
Imported Composition of Raw
Materials Consumed
Selling Distribution Cost 1.64 2.21 2.02 2.05 2.07
Composition
Expenses as Composition of Total
Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net Profit 42.44 46.74 55.24 59.55 61.27
Dividend Payout Ratio Cash Profit 38.11 41.55 49.88 53.60 55.22
Earning Retention Ratio 58.23 54.05 46.20 41.53 37.62
Cash Earning Retention Ratio 62.43 59.08 51.30 47.27 43.89
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DU-PONT ANALYSIS
Return on Equity Benchmarks
Comparable Companies
VSTIND BTAF.F 4I1 IM
Return On Equity
Latest Twelve Months NA 8% -89%
Fiscal Year - 1 36% 10% -67%
Fiscal Year - 2 42% 9% -60%
Fiscal Year - 3 36% 10% -64%
Fiscal Year - 4 32% 109% -49%
Fiscal Year - 5 33% 72% -54%
Average 36% 36% -64%
Median 36% 10% -62%
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Benchmarks Ticker
VST Industries Limited NSEI:VSTIND
British American Tobacco p.l.c. OTCPK:BTAF.F
Philip Morris International Inc. DB:4I1
Imperial Brands PLC OTCPK:IMBB.F
Prataap Snacks Limited NSEI:DIAMONDYD

Supporting Calculations
Financial Performance
Increasing Reconciliation
Financial Performance
Comparable Companies
(in millions) VSTIND BTAF.F 4I1 IM
Latest Fiscal Year Mar-22 Dec-21 Dec-21
LTM Period Jun-22 Jun-22 Sep-22
Revenues
Latest Twelve Months 12,038 26,378 31,714
Fiscal Year 11,782 25,684 31,405
Fiscal Year - 1 11,110 25,776 28,694
Fiscal Year - 2 12,393 25,877 29,805
Fiscal Year - 3 10,990 24,492 29,625
Fiscal Year - 4 9,476 19,564 28,748
Fiscal Year - 5 9,224 14,130 26,685
Net Income
Latest Twelve Months 3,369 5,375 8,721
Fiscal Year 3,202 6,789 9,083
Fiscal Year - 1 3,108 6,400 8,036
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Fiscal Year - 2 3,041 5,704 7,168
Fiscal Year - 3 2,268 6,032 7,895
Fiscal Year - 4 1,819 37,485 6,021
Fiscal Year - 5 1,515 4,648 6,948
Total Assets
Latest Fiscal Quarter Prior NA 136,995 41,589
Latest Fiscal Quarter NA 151,871 40,717
Fiscal Year 15,906 137,365 41,290
Fiscal Year - 1 14,858 137,690 44,815
Fiscal Year - 2 13,970 141,005 42,875
Fiscal Year - 3 12,049 146,342 39,801
Fiscal Year - 4 10,641 141,054 42,968
Fiscal Year - 5 7,976 39,773 36,851
Fiscal Year - 6 8,270 31,515 33,956
Common Equity
Latest Fiscal Quarter Prior 9,404 62,897 (10,551)
Latest Fiscal Quarter 10,743 73,755 (9,137)
Fiscal Year 10,743 67,101 (10,106)
Fiscal Year - 1 9,404 62,583 (12,567)
Fiscal Year - 2 7,871 63,812 (11,577)
Fiscal Year - 3 6,640 65,354 (12,459)
Fiscal Year - 4 5,821 60,669 (12,086)
Fiscal Year - 5 5,390 8,092 (12,688)
Fiscal Year - 6 3,704 4,804 (13,244)
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MACROECONOMIC FACTORS THAT AFFECT THE STOCK PRICE OF
ITC
The stock market has become an essential market playing a vital role in economic prosperity
that fostering
capital formation and sustaining economic growth. Stock markets are more than a place to trade
securities;
they operate as a facilitator between savers and users of capital by means of pooling of funds,
sharing risk, and
transferring wealth. Stock markets are essential for economic growth as they insure the flow of
resources to
the most productive investment opportunities. In essence, a large number of economic variables
like gross
domestic product, interest rates, current account, monthly supply, employment, their
information etc. have an
impact on daily stock prices (Kurihara, 2006). This paper reflects how stock price is determined
by
considering the effect of different factors and outlines whether the internal, external and
economic factors
have impact on stock pricing. This study is about to know whether Dividends, paid up capital,
market capital,
corporate social responsibility, lawsuits, Retained Earnings, AGM, EGM, Earning Per Share,
Rumors, Margin
Loan, Net Income, Face Value, Return on Investment, Goodwill of the firm, Company News,
Analysts
Report, Sentiment, Rumors, etc depends on stock price or merely some special factors like
stock dividend, P/E
ratio, government policy, macroeconomics fundamental, investors sentiment, analyst report,
Goodwill, AGM,
EPS, to determine the share price. Whether the investors consider these determinants before
investment
decision or not or increase or decrease the stock price in accordance to change the agents
advice, company
59 | P a g e
news, etc. or merely in accordance with the change of Dividends and Earnings. The researchers
endeavor to
find out the most fundamental determinant factors which are directly influence on share price
movement and
on what bases investors should select his or her investment portfolio.
Analyzing a theoretical view in explaining the impact of different determinant factors of stock
price and provide
a clear view and fundamental concept towards the respective investors, portfolios managers
and companies about
the influencing capacity of each base factor i.e. internal factor, external factor, economic factor,
political factor
and environmental factor. Stock prices are affected by a number of factors and events, some of
which influence
stock prices directly and others that do so indirectly. The following are the factors that affect
or even predict the
buying or selling of stock that ultimately affects stock prices of companies.
 Qualitative Factors
Company Goodwill: Old customer comes old place is Goodwill and it is an intangible but
saleable asset that
may be worth many times the worth of its physical assets. Goodwill includes the worth of
corporate identity, and
is enhanced by corporate image and a proper location. It is the important wheel to sell, to earn
and to raise the
value of share.
Market Sentiments: Hearing rumor and looking at stock indexes or its future price movement
is the market
sentiment. The price of the stock of a company is affected most
of the time by the general market direction during a session. In a bull market, the stock price
of most companies
will rise and will fall in a bear market.
Company Announcements: Stock prices fluctuate as investors and traders try to predict
earnings, management
changes and industry trends, when a company makes an announcement the investors aren't
happy with this can
force the stock price to fall.
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Annual general meeting (AGM): It is to comply with presentation and approval of the audited
accounts,
election of directors, appointment of auditors, compensation of officers, confirmation of
proposed dividend, and
issues raised by the stockholders called annual meeting in the Bangladesh. Investors are
looking forward to the
AGM to get lucrative dividend declaration.
Unexpected Circumstances: Examples of unforeseen circumstances that can affect prices
include natural
disasters or worldwide crash and Technical influence has effect on aggregated and individual
stock prices.
Analysts’ Report: Reports produced by independent analysts also influence share prices. If an
analyst changes
their recommendation from sell to buy for example, the shares will often raise in value i.e.
company will affect
its share price very quickly. Analysts’ reports are always worth reading whereas shares are not
worth buying.
Print and Electronic Media: They say a lie repeated from thousand platforms becomes the truth.
An investor
has to take care whether they are planted stories or genuine positive developments happening
with the company.
The role of the press and the views expressed by it on the share market conditions, influence
the decisions of the
investors.
Hype: Investors have an interest in promoting particular stocks and industries to increase profits
and value of
their own shares. Stocks price can be affected by hype about a company or the release of new
products. This can
occur even when the hype has no foundation in truth.
Change in Government Policies: A matter of progress, government may review its policies,
rules & regulations
like FDI and FII inflow restrictions, entry exit barriers for foreign banks, EXIM regulations,
and change in Basel
Norms etc. are the important govt. policies. So, a change in these policies affects the market
scenario and
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definitely affects the price of the share and Political Confusion has a significant impact on the
stock price.
International Situation: Improvement of diplomatic relations between the multinationals, share
prices will rise.
Investors should be improvements in diplomatic relations, seize the opportunity to purchase
shares related to
transnational corporations.
 Quantitative Factors
Dividend: Dividend refers to cash payment or distribution of a firm's income among its
stockholders, in the form
of additional fully-paid shares. After the announcement of a dividend the stock price may
increase by an amount
close to the dividend per share value. However, the stock price may drop on the ex-dividend
date by the dividend
per share amount.
Market Capital: Market capital of a company means the value of the company. It may have the
causes of
increasing share price to fulfill Basel II or other things.
Price/Earning (P/E) Ratio: The P/E Ratio is commonly used to assess the owners’ appraisal of
share value. The
higher P/E ratio is the greater investors’ confidence. If the price of the share is too much lower
than the earning
of the company, the stock is undervalued and it has the potential to rise in the near future and
vice versa.
Earnings per Share (EPS): EPS is the amount earned on behaves of each outstanding common
stock not the
distributed amount to shareholders. This is perhaps the most important factor for deciding the
health of any
company and they influence the buying tendency in the market.
Net Income: Company's total earnings, which may have the reason of high dividend and
important determinant,
because expected dividend depends on it.
Return on Investment: ROI means how effectively the firm uses its capital to generate profit.
Investors want to
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get that share of which management more efficient to earn high return on invest.
Retained Earnings: Sum of all profits earned since the firm's inception and not distributed to
stockholders as
dividends but are either reinvested or kept as a reserve for specific objectives.
Takeover or Merger: Company being taken-over or company taking over another is anticipated
to get a stock
price boost or drop in its share price.
Stock Splits: Theoretically, it should not have an impact to the stock price. But it is observed
that the stock price
increases after or before a stock split.
Warrants Exercise: Warrants means you have the right to buy shares from a company after the
exercise date at
specified price. With resulting the share price drops in the same earnings price.
Margin loan: A loan from a broker to a client that essentially functions as a margin account.
The funds may be
used for any purpose, and the loan is secured with securities owned by the client.
Supply and Demand: The price is directly affected by the trend of stock market trading. When
more consumers
purchase a particular type of stock, its price will automatically increase and when sell that, its
price will then
plunge.
Inflation: Stock markets are affected by inflation. Even the perception of investors and traders
on what is likely
to happen with inflation will also impact to stock prices in various ways.
Interest rates: Low interest indicates low demand for capital with driving share price down.
Bull markets are
usually associated with low interest rates and high Capital Gains, and bear markets with high
interest rates and
low Capital gains.
Exchange Rates: Exchange rates have a direct impact on the price and value of stocks in home
as well as it will
affect the price of stocks in abroad. Long-term movements in exchange rates are affected by
fundamental market
forces of supply and demand
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DEPRECATION POLICY, INVENTORY VALUATION, AND DIVIDEND
POLICY OF ITC
ITC is one of India’s foremost private sector companies with a market capitalisation of Rs. 3.13
Lakh Crore.
ITC has a diversified presence in FMCG, Hotels, Packaging, Paperboards & Specialty Papers
and Agri-Business.
We are doing the valuation analysis of the stock on the basis of following valuation factors :
Revenue Gro CAGR Growth of Revenue & Profit Before Tax (PBT)
ITC Ltd Stock Valuation Analysis – PAT Projections FY2019-20
ITC Ltd Stock Valuation Analysis – PAT Projections FY2019-20
Here, we have calculated the CAGR growth of revenue and Profit Before Tax (PBT) of ITC
Ltd.
For FY2018-19 :
Revenue = Rs.44,983 Cr
PBT = Rs.18,444 Cr
After calculating the CAGR growth, the lowest growth rate (Here, 6.24%) is taken for further
calculations of PBT projections for FY2019-20.
Thus, PBT Projection FY2019-20 = Rs.18,444 Cr * (1.0624) = Rs.19,595 Cr
Corporate tax rate of ITC Ltd was 32% earlier. Now, Considering the new reduced corporate
tax rate for FY2019-20 ie. 25.17%,
Profit After Tax (PAT) Projection FY2019-20 = Rs.19,595 Cr (1 – 25.17%) = Rs.14,663 Cr
(For the detailed calculations, please refer above table.)
ITC Ltd Market Capitalization Projections by considering Historical Average PE Ratios
ITC Ltd Stock Valuation Analysis – Market Cap Projections
ITC Ltd Stock Valuation Analysis – Market Cap Projections
The historical average PE ratios for 3, 5 and 10 years are 30.49, 31.26 and 30.90 respectively.
So we have calculated the future market cap projections of ITC Ltd by considering those PE
ratios also.
However, by considering the realistic expectations from the market, we have to consider the
current PE Ratio of ITC Ltd for calculating its market cap projection.
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Thus, Current PE = 24.69 and PAT FY2019-20 projection = Rs.14,663 Cr
Market Cap Projection of ITC Ltd stock = 24.69 * Rs.14,663 Cr = Rs.3,62,029 Cr
While, the current market cap = Rs.3,15,000 Cr
So, % Growth in the market cap would be = 14.92%
Thus, ITC Ltd’s market cap can reach up to Rs.3,62,029 Cr by the end of current financial year
2019-20.
Also, with the active participation of institutional investors for buying ITC stock would suggest
the re-rating of the stock. Since, Both the Indices (Sensex as well as NIFTY) have considerable
weightage for the stocked, Profit Before Tax (PBT) Growth, PE Ratio, Market Capitalisation,
etc.
COMPETITOR ANALYSIS OF THE ITC

Competitors are part of the stakeholders in every business organization. As a multinational
conglomerate company, ITC faces huge competition in the market. They have encountered
competition from all sides, here are some of its competitors.
Competitors in the FMCG section
Godfrey Phillips India Ltd
HUL
Nestle
P&G
Godrej Consumer Products
Coca-Cola
Danone
Dabur
Colgate
L’oreal
Marico
Competitors In Hotels of ITC

Taj Group of Hotels
Leela Hotels
Sarovar Group of Hotels
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Oberoi Group of Hotels
Competitors in Cigarettes of ITC

Golden Tobacco Limited
Philip Morris International
Raghunath Tobacco Company Ltd
Godfrey Phillips India Ltd
Vazir Sultan Tobacco Company
So, we can see here the major competitors of ITC. It faces massive competition in all sections
of the market. As a result, they adopt a variety of marketing methods to increase their market
share. With this, we come to the end of the Business Model of ITC Limited. On the study of
the business model of ITC company, we have known that it has implemented its business model
very well in all its sectors. It has grown largely in the tobacco industry and has a great potential
to grow in its other sectors in the market. It provides its customers with a wide range of products
like apparel, Hotels, Agribusiness, Paperboard and packaging, ITC infotech, etc.
It uses a reasonable pricing method for its middle-class segment products and premium prices
for its luxurious products. ITC uses different promotional platforms like social media, print
media, television, etc. It has many different competitors in the market like Godfrey Phillips
India Ltd, HUL, Nestle, Taj Group of Hotels, Oberoi Group of Hotels, etc in different markets.
NAME OF SUBSIDIARIES, JOINT VENTURES OF ITC
Greenacre Holdings Limited, a wholly owned subsidiary, is engaged in property

infrastructure maintenance. 100% held by ITC Limited. General trading. ITC Essentra Limited,
India, is a 50% joint venture of Gold Flake Corporation Limited with Essentra Filter Products
International Limited, UK.
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HUMAN RESOURCE MANAGEMENT
ORGANIZATION STRUCTURE
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ORGANIZATIONAL CULTURE AND ETHICS
ITC’s property initiatives are driven by the idea that organisations have to serve a bigger
social purpose keeping national priorities in focus. The Triple Bottom Line commitment of
the corporate to at the same time build economic, social and environmental capital has
spurred innovation to orchestrate a symphony of efforts that address a number of the foremost
difficult societal problems together with widespread impoverishment and environmental
degradation. The Triple Bottom Line approach is driven by Company’s deep conviction that
companies possess the transformative capability to make way larger societal worth by
leverage their entrepreneurial vitality, power and innovative capacity. united efforts, over
many years, have LED to the creation of property livelihoods for around six million people,
several of whom represent the foremost underprivileged in society. The broad based mostly
execution of this strategy has helped build an ever improving, accountable business
ecosystem, that environmentally speaking, seeks to refill quite what it consumes. The
Company has aligned its policies and guidelines with the principles enunciated under the
Business Responsibility Reporting framework. The context of the BR principles is embodied
in the Sustainability Policies and Code of Conduct adopted by the Company, implementation
of which is ensured through well-established systems and processes across all its businesses.
ITC's Core Values are aimed at developing a customer-focused, high-performance
organisation which creates value for all its stakeholders. ITC’s Core Values encompass the
principles of Trusteeship, Customer Focus, Respect for People, Excellence, Innovation and
Nation Orientation. A Board approved policy provides the framework for ITC’s corporate
governance philosophy, which is anchored on the values of trusteeship, transparency, ethical
corporate citizenship, empowerment, control and accountability. ITC believes that since large
corporations employ societal and environmental resources, governance processes must ensure
that they are utilised in a manner that meets stakeholders’ aspirations and societal
expectations. For superior Triple Bottom Line performance, ITC’s Governance processes
ensure that sustainability principles are embedded in business strategies and execution plans.
69 | P a g e
The practice of Corporate Governance in ITC takes place at three interlinked levels: Strategic
supervision by the Board of Directors Strategic management by the Corporate Management
Committee headed by the Managing Director of the Company Executive management by the
Divisional Chief Executive assisted by the Divisional Management Committee Reference to
Division includes Strategic Business Unit, Business Vertical and Shared Services.
The three-tier governance structure ensures that:
(a) Strategic supervision (on behalf of the shareholders), being free from involvement in the
task of strategic management of the Company, can be conducted by the Board of Directors
(the Board) with objectivity, thereby sharpening accountability of management;
(b) Strategic management of the Company, uncluttered by the day-to-day tasks of executive
management, remains focused and energised; and
(c) Executive management of the divisional business free from collective strategic
responsibilities for ITC as a whole, remains focused on enhancing the quality, efficiency and
effectiveness of the business to achieve best-in-class performance.
RECRUITMENT AND SELECTION PROCESS OF THE ORGANIZATION
ITC headquartered in Kolkata, West Bengal, India has a multi business portfolio which
includes FMCG, Hotels, Agri business, Information Technology, Paperboards & Packaging.
The recruitment in ITC is done for many posts every year. ITC conducts recruitment process
every year to select new candidates.
Recruitment is the process of attracting qualified candidates for a job role and Selection is
the process of identifying and selecting the right candidate for that job.
Selection is the process of hiring employees among the shortlisted candidates and providing
them a job in the organization.
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The ITC application form seeks information about your educational background, professional
experience, family and personal data. Apart from the above the form also contains essay type
questions that help us understand you and career expectations better. The first level of
assessment is done on the basis of you application form checking it against the job
specifications and fit outlined for the specific vacancy
If you are shortlisted in the application screening stage, you move to the preliminary
assessment centre, group activity, one of multiple rounds of preliminary interview(s) or a
combination of these processes. The exact nature of the process varies across job. The
preliminary assessment stage offers us an opportunity to test the strength of your candidature
particularly in the areas of technical competence, domain knowledge and other professional
attributes imperative to the job under consideration.
Final assessment may comprise of interview(s) that help us understand where you come from,
your values, accomplishments, expectations, goals, knowledge, abilities and skills. At the
same time, we welcome questions to help you understand us as a company and what we have
to offer.
The selection process of the company consists of 4 rounds. These rounds are as follows:
 Written Exam
 Group Discussion
 Technical Interview.
 HR, PI round.
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Academic Criteria:
Applicant should be an engineering graduate from any recognized university
Candidates should have minimum of 65% throughout in graduation, 12th and 10th
No backlogs are allowed.
Pattern of Written Exam:
Section No. of questions
Aptitude 30
Technical 10
Total 40
Details:
Aptitude Test consists of questions on Quant, Critical Reasoning, Logical Reasoning,

and English
Technical paper consists of questions on core subjects on graduation like computer

science, electrical, mechanical, etc,
Overall, the level of the paper is easy to moderate Only those candidates who clear the
written exam will qualify for the next rounds that are Group Discussion and
interviews.
EMPLOYER BRANDING OF THE ORGANIZATION

Employer brand is a term referred to describe the company's reputation and popularity from a
potential employer's perspective and describes the values the company gives to its employees.
Employer Branding is the process of creating and maintaining your company's Employer
Brand.
ITC's Employer Brand is comprised of an A+ rating for Retention and an A rating for
Happiness. Employer Branding is an important aspect for companies looking to obtain and
retain talent.
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JOB DESCRIPTION AND JOB SPECIFICATION
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BACKGROUND VERIFICATION PROCESS
A background check is a process a person or company uses to verify that an individual is
who they claim to be, and this provides an opportunity to check and confirm the validity of
someone's criminal record, education, employment history, and other activities from their
past.
Background Verification Form
Applicant No./Employee ID: Location: Date of Joining / interview:
Personal Details
Applicant Name
(First name, Middle name,
Sur name)
Former Name/Maiden
Name (If applicable)
Date of Birth: Father’s Name:
Gender Male Nationality Marital Status

Female
Email ID: Mobile No:
Current Address: Period of stay form (mm/yy)
to (mm/yy)
Permanent Address: Period of stay form (mm/yy)

to (mm/yy)
Educational Details (Highest Qualification)

Name of the College
Address of the College
Name of the University
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Name of the Course: Major Subject: From – To: Full Time
Part Time
Copy of certificate attached
Employment History
Name of current Employer: Address:
Employee ID: Work Period Designation: Department:

From:
To:
Reporting Manager Name & Designation: Email Id:
Contact No:
Position Permanent Last Drawn Salary: Reason for Leaving:
Contract
Temporary
Documents Submitted for This Employment
Experience Certificate Relieving Letter Payslips Any Other
Previous Employer (1)
Name of the Employer: Address:

From:
To:
Contact No:
Contract
Temporary
Previous Employer (2)
Name of the Employer: Address:

From:
To:
Contact No:
Contract
Temporary
Declaration
I confirm that the above information is true to the best of my knowledge and understanding.
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Applicant Name: __________________ Signature: __________________
Date: _____________.
ONBOARDING FORMALITIES AND DOCUMENTS REQUIRED FOR JOINING

Onboarding is important because it acclimates employees to their role, the company's
philosophies, and what the company has to offer. It also engages employees, creating workers
that are committed to the company's success and helps retain new hires by making them feel
like a member of the team. According to sources, the onboarding in the company is really
smooth.
According to sources, “Once you join the company on your joining day, you will be
intimated to join a induction program (2 complete days). These may take place after
1week to few days of joining as the recruitment cell waits to form a group for the
induction program. For the 2days of induction you will be having different sessions on
the different sections of business and areas of ITC like IT, Manufacturing, Agri
business etc. You will be made aware of all the rules and protocols of the company.”
Other sources say that “First thing you have to learn ITC is not a single entity. It has
several businesses. Each of them has separate HR and separate systems. But there are
certain common ethics and values they all go by. The joining process will be just same
like formalities done in any other company. On-boarding for role certainly is specific to
the role you are in. If you are a technical guy, they for sure treat you like a fresher and
train you well. They literally teach you. They take you through other businesses as well.
METHOD OF TNA IN THE ORGANIZATION
Training
Definition – Training is a process where we can increase our skill and develop potential in an
individual. In training we asses ourselves and upgrade our competencies so as to develop our
holistic and management skills. In an organization, training is needed to effectively increase
the productivity in the organization and serve to maximize the profit in the particular
organization.
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Training Need Analysis
Training need analysis determines the amount of competencies a particular employee

currently has and the amount of skills and competencies the employee has a gap in. Training
need analysis is a technique to measure and identify/analyze the training gap needed for the
particular employee and rectifying the gap through various methods. It is done to identify
when an employee is not doing well in the organization or he is lacking somewhere in his
work or he is hesitating to talk about his poor competencies to his/her HR or the Line
Manager.
TRAINING PROCESS AND MODEL USED IN THE ORGANIZATION
Steps in Training Need Analysis
There are several methods In Training Need Analysis:
• Identifying the problems and analysing the need for training of an employee
• Evaluate the current competencies and evaluate the training deficit of the employee
• Planning the design of need assessment
• Collecting data
• Analysing the data
• Evaluate the result and the outcome
• Taking feedbacks
Who conducts the TNA and why is it done?
The training assessment is done either by the line manager or the in-house supervisor to
assess the training need depending on the following factors:
• Problems in Performance.
• Introduction of a new system, task or technology.
• A desire by the organization.
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Training Methods/Training Tools
• Survey/Questionnaire
• Personal Interview
• Personal Observation by supervisor/line manager
Marketing managers are responsible for analysing the existing market and understand the
consumer relations and the consumer behaviour.
Hence, a SURVEY/QUESTIONNAIRE will be followed since it’s a managerial position.
Training Model for Marketing manager
To train the Marketing managers Sr.HR manager will follow ADDIE model. So here he will
discuss what steps should Sr. HR manager take to train Marketing managers through the
ADDIE model.
A- Analyse
D- Design
D- Develop
I- Implement
E- Evaluate
First step: Analyze
Sr.HR manger analyse the job of Marketing managers, then he will analyse the task function
or key performing index (Goal sheet) then he will analyse the key result area. After analysis
79 | P a g e
these two factors if he founds a gap, then he discusses with employee where he/she is lacking
behind and what kind of training is required.
Second step: Design
HR will design the objectives for the training that will be provided to Marketing managers
then he will conduct different tests to check the person is lacking behind then he will get to
know which area they need training like communication, HR analytics, People management
skills and leadership skills or any technical skills.
Third step: Development
He will specify learning and activities that need to be included zin the training. He will
design specific Marketing managing tasks that will performed by the candidate. Organization
will also develop instruction that will followed by the employee.
Fourth step: Implementation
In this step, Organization will highlight why this training has been assigned to employee and
what does the training cover and for how long the training will last.
Fifth step: Evaluating the candidate
The employee will be ongoing under the evaluation process and also after the training period
what skills and what knowledge have been added to the employee is also evaluated. It will be
checked internal and external evaluation.
If the employees are unable to benefit from the trainings, they are either fired or they are
rescheduled for another training process.
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SUITABLE TRAINING METHODS FOR THE EMPLOYEES BASED ON
COMPETENCIES AND JD
TRAINING METHODS
There are various training methods with which we can provide the trainings to the employee.
There are 2 types of training methods: 1) On-the job training (which consists of 50% work
and 50% training) 2) Off the job training (100% training)
Since the profile is of a Marketing manager (Managerial Position), it is known that he/she
must be having an experience of 5-6 years. Hence, the HR should prepare the training of the
Marketing managers as a mixture of mainly On the Job and some Off the job trainings. In on-
the-job training method, the probable method should be the COACHING and
UNDERSTUDY method.
Coaching is a one-to-one training program taken place by line manager in the company. In
this process the line manager supervises and instructs the mentees and they have to listen to
them regarding the training process.
Understudy is a method in which an existing employee (Marketing manager) of McCain who

is working in the same profile for many months/years give training to the newly joined
employees (Marketing manager) as a part of the training. In layman terms to explain, a
superior gives training to a subordinate.
In Off- job training method, the HR can arrange for VESTIBULE training as the employees
can be taken in a prototype environment and work or even can be taken in
workshops/seminars for a better understanding of the work and reduce the training deficit.
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DESIGN TRAINING CALENDAR
PMS SYSTEM OF THE ORGANIZATION

Performance Management System includes activities to ensure that goals are consistently
being met in an effective manner. Performance management can focus on performance of the
organisation , a department processes to build a product or service , employees.
In case of ITC the cycle consists of four steps mainly –
 Plan
 Act
 Monitor
 Review
Performance appraisal Methods used in ITC
 Balance score card
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 360 Degree feedback
 MBO
 BARS
Rewards and Recognition
 Match the rewards
 Match the reward to the achievement
 Be timely and specific
SOURCES
WIKIPAEDIA
ITC OFFICIAL WEBSITE
FORBES MAGAZINE
SCRIBED.COM
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GOAL SHEET,KRA AND KRA OUTCOME BASED ON A PARTICULAR PROFILE
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ANALYZE THE EMPLOYEE BENEFITS OF THE ORGANIZATION
Every company has its own pros and cons.
The benefits of ITC limited are:
Branding. People recognize and respect
Learning. Suggestions and Ideas can be easily communicated to top management
Other perquisites such as medicals are taken care off
Ready market for employment when you are an ITC product.
85 | P a g e
ITC Limited offers excellent employee benefits that include medical insurance for employees
and their families; provident fund with employer contribution; gratuity; leave encashment
facility; transportation allowance for employees working in metros; concessional loans for
housing & education purposes.
Additionally, the company also has an Employee Stock Option Scheme (ESOP) which allows
its employees to purchase shares of the company at a discounted price.
ITC has:
 Good Working Culture

 Excellent Medical Benefits
 Salary as per industry standard
 Satisfactory Work-Life Balance
 Good Leave Policy
 TPM Methodology
 Well-structured and organised
 Very good in system and process
 World Class learning secession
 Employee friendly
REWARDS AND RECOGNITION SYSTEM OF THE ORGANIZATION
 ITC PSPD was declared as the 'Winner' in the 'Internet of Things and Digitalization'
category at the Pulp & Paper International (PPI) Awards, held in Lisbon, Portugal in
March 2022
 ITC Gardenia, Bengaluru became the third hotel in the world to achieve the LEED
Zero Carbon Certification, after ITC Windsor, Bengaluru and ITC Grand Chola,
Chennai.
 ITC featured among the top 3 at the first ever LinkedIn Talent Awards in the 'Best
Employer Brand on LinkedIn' category, among organisations with more than 10,000
employees. The honour comes after rounds of rigorous screening and shortlisting,
with 60+ companies participating in this category.
 ITC's PR and communication campaigns received 10 Top Global and National

accolades at the SABRE and Fulcrum Awards
 ITC's Packaging and Printing Business won 6 awards at the ICFA Star Awards
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 ITC received 'Leadership Level' scores for both Climate Change and Water Security
by CDP.
 ITC Hotels became First Hotel chain in the world to receive PLATINUM level
certification under DNV's My Care Infection risk management program for
'WeAssure' hygiene protocol.
 ITC PSPD's Unit Bhadrachalam has been declared as "The Winner" in "Within the
Fence" category under CII-National Awards for Excellence in Water Management
2021.
 ITC PSPD's Unit Bhadrachalam has been declared as "The Winner" in "Excellent
Energy Efficient Unit" award category under CII-National Awards for Excellence in
Energy Management 2021.
 ITC wins EFI CII National Award for Excellence in Employee Relations – 2021
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DESCRIBE THE STATUTORY BENEFITS THAT THE COMPANY FOLLOWS
A company’s benefit package is one way for employers to communicate and execute on their
company culture and values, to attract top talent globally, and to boost employee satisfaction.
One study revealed that 78% of employees reported that they’re more likely to stay with an
employer because of their benefits program.
In addition to attracting talent, comprehensive benefits packages are required for legal
compliance. As an employer looking to hire internationally, it’s important to remain updated
on the labor laws and requirements for the countries represented on your team.
In this article, you’ll learn about the statutory benefits that employers need to consider to
remain competitive and compliant when hiring in India. The statutory benefits that are
required by law serve to protect workers and ensure that employers maintain ethical
employment practices. Beyond what is required, non-statutory benefits can also allow
companies to stand out and attract the best employees.
Employees should have a clear understanding of the benefits that they are required to
contribute to and any of the non-statutory benefits that the company offers. Clear
communication from the company’s HR department is essential to ensure employees
understand how to maximize their benefits package.
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HRIS SOFTWARE TOOL USED IN THE ORGANIZATION
The HRIS (Human Resources Information Software) uses management and provides and
improves HR decision making, enable legislative compliance and help HR teams better
support managers and employees.
HR info systems is a business application/HR system is a business application designed to

manage the complete employee lifecycle from recruitment and onboarding through core HR
administration to employee engagement and performance management.
WHICH HR PROCESSES DO HR SYSTEMS COVER?
All HR systems have a core HR administration module. This helps HR professionals organise
and manage the most essential information about the business (such as org structure,
locations, cost centres etc.) and their people. Alongside automating and streamlining
everyday HR activities, such as employee record keeping and compliance, most popular HR
systems also help organisations better manage these key human resources processes:
At the macro level, HRIS is critical for effective planning and budgeting of national
resources. Based on HRIS the Government and other agencies involved in manpower
planning and manpower productivity, such as the central and the State Governments, AICTU
or educational institutions etc, can develop proper strategies to increase the numbers as well
as the utilization of the pool of people available for jobs. Efforts can be made to develop the
required skills and competencies among the labour pool to meet the national/regional
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requirements by allocating adequate budgets on the basis of their expected optimum use. The
recent initiatives of the Indian Government to upgrade the regional engineering colleges to
IIT standards, or to create centres of excellence, or invest in bio-technology research etc. are
all results of a national level information base regarding the trends in the demand and the
expected supply of manpower made possible because of an HRIS at the macro level. At the
micro or enterprise level, HRIS has become critical for decision-making and policy
formulation as well as for ensuring fairness and equity in HR policies and practices. There is
an increasing realization that for organisational survival and growth in a competitive
environment, human resource is the most critical resource. This coupled with the increase in
the cost of hiring, retaining, developing and motivating people to perform at their best has
pushed organisations to base their HR decisions on sound logic and thereby, on proper
information. HRIS becomes a major asset from this point of view. The growing need for
transparency among the employees and the society is another factor that is compelling
organisations towards proper management of information in all areas, including HR.
According to Tang et al. (1987) the key to the effective planning of manpower and
improvement of people productivity is an effective HRIS. However, in order to be effective
an information system must take into account the following :
Adequacy of information: Too much or too little information, both lead to defective
decision-making. Therefore, there must be some understanding regarding what information
and in how much detail and covering what periods should be maintained.
Specificity: Even where it is not possible to quantify the information, the information should
be made as specific as possible. Relevance: Information is to be managed in the light of the
requirements of the decision makers. Therefore, HRIS should focus on the needs of the
decision-makers and stakeholders rather than on what is interesting or easily available or
palatable to the people. The system, therefore, must also have the built in capability for
deletion and updating of data. Comprehensiveness: The information should be complete from
the point of view of the decision-maker giving details of who, what, how, when, where and
why .
Reliabilty: Since the information is going to be the basis of critical decisions, it must satisfy
the requirements of validity and reliability. Moreover, to ensure effectiveness, not only
should the information provided be relevant and reliable but the delivery system should also
be the most satisfying and cost effective. A wealth of information but not accessible when
needed or available at an inhibiting personal cost in terms of energy and time, is of hardly any
use
 HR Self-service
 Recruitment
 Employee Onboarding
 Absence Management
 Time Tracking
 Training & Development
 Succession Planning
 Employee Surveys
 Document Management
 HR Compliance
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 Payroll/Payroll integration
Zimyo HR and Bamboo HRIS tools used in the industries.
CONCLUSION
To conclude with the project, I came to know about the sector information of various FMCG
products and how to make particular use of them. I came to know about the company I.e.
ITC and the various products and the market share, their B/L and other domains of finance,
marketing and HR.
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Student’s Name: - Chiranjib Banerjee

Section Name: - PGDM – 5

Roll Number: - 2022-1008-0001-0002

Company Name: - ITC

Product Name: - Candyman Fantastik

CATEGORIES OF SECTOR (FMCG)

SECTOR CAGR AND FORECASTING

INDIAN FMCG MARKET SCOPE

Global Indian FMCG Market

CONSUMER BUYING BEHAVIOUR OF THE SECTOR

1. Consumer’s tastes and preferences

3. Prices of the related items

The FMCG sector is divided into various categories:

They are used at least once a month

They are used directly by the end-consumer

They are non-durable

They are sold in packaged form

They are branded

SECTOR GROWTH FACTOR

1. DEMAND SHOWING IMPROVEMENT POST NOTE BAN: Most companies

GROWTH/DEGROWTH PATTERN OF SECTOR PRE & POST-PANDEMIC

PORTER 5 FORCE MODEL.

New entrants will be discouraged if access to the distribution channels is restricted.

 Existing regulations support the entry of new players.

 Retaliation from the existing market players is not a discouraging factor.

Threat of Substitute Products or services

The availability of substitute products or services makes the competitive environment

The Threat of Substitute Products or services increases when :

A cheaper substitute product/service is available from another industry

Rivalry among existing firms

 There are only a limited number of players in the market

Bargaining Power of Suppliers

 Suppliers have concentrated into a specific region, and their concentration is

 Suppliers are not concentrated

Bargaining Power of Buyers

SWOT ANALYSIS OF FMCG SECTOR

The FMCG sector has the following SWOT analysis:

 Low operational costs

 Lower scope of investing in technology and achieving economies of scale,

 Removal of import restrictions resulting in replacing of domestic brands

KEY BUSINESS HIGHLIGHTS OF THE YEAR

(c) New Additions to the portfolio

STRATEGIC FRAMEWORK OF ITC

SHAREHOLDING PATTERN OF ITC

(a) Mutual Funds 331 1,232,625,574 0 0 1,232,625,574 10.0

SBI-ETF Nifty 50 151,726,270 0 0 151,726,270 1.2

GQG Partners Emerging

Life Insurance Corporation

The New India Assurance

The Oriental Insurance

(i) Any Other :

QIB - Insurance Company

Sub-Total (B)(1) 1,548 6,840,200,747 0 0 6,840,200,747 55.5

Sub-Total (B)(2) 0 0 0 0 0 0.0

ii. Individual shareholders

NBFCs registered with

(c) Employee Trusts 0 0 0 0 0 0.0

(e) Any Other :

(i) Bodies Corporate

(ii) Bodies Corporate

(iii) NRIs 37,740 102,804,387 0 0 102,804,387 0.8

(iv) Trust 102 5,133,720 0 0 5,133,720 0.0