Corporate strategy of ITC Limited

Presented by: kumari priyanka toshali dey Rima mallik Kuldeep shivhare

• To understand the strategic management initiatives implemented by ITC Ltd. by perusing the following areas – What is ITC Ltd? – Diversifications – Contribution of products towards the Group

What is ITC Ltd.? .

INTRODUCTION • Started on August 24. 2001 • Current Market capitalization of over US $ 33 billion • Current Turnover of US $ 7 billion . Limited in 1974 • Over the years built a portfolio encompassing a wide range of businesses.C. 1910 as Imperial Tobacco Company of India Limited • Became India Tobacco Company Limited in 1970 • Renamed as I.T. • Rechristened as 'ITC Limited„ on September 18.

ITC’S LIST OF BUSINESSES • Cigarettes • Life Style Retail Business Division(LRBD) • Hotels • Paperboards & Specialty Papers • Packaging • Agri-Business Division • e-Choupal .

Respect For People. .• 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. includes Trusteeship. Innovation and Nation Orientation. •Aimed at developing a customer-focused. Customer Focus. delivering superior and sustainable stakeholder value . high-performance organization which creates value for all its stakeholders. Excellence. • Mission •To enhance the wealth generating capability of the enterprise in a globalizing environment.

CORPORATE STRATEGY • Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Paper. Profitability and Internal Vitality. Paperboards & Packaging. . • Continue to focus on the chosen portfolio of FMCG. • Ensure that each of its businesses is world class and internationally competitive. Agri Business and Information Technology. Hotels. • Benchmark the health of each business comprehensively across the criteria of Market Standing.

. • Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.• Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC‟s various businesses. • Create distributed leadership within the organization by nurturing talented and focused management teams for each of the businesses.

ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited.THE ITC JOURNEY • Initial years primarily devoted to growth of Cigarettes and Leaf Tobacco businesses. • Packaging & Printing Business set up in 1925 as a strategic backward integration • In 1975. the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC Welcomgroup Hotel Chola„ • In 1979. ITC acquired Tribeni Tissues Limited. a major supplier of tissue paper to the cigarette industry. • In 1990. .

'Fiama Di Wills'. Mangaldeep and Aim.2009 saw the launch of Practical Books. 'Essenza Di Wills'.(CONTD. 2007. • In 2003 forayed into the marketing of Agarbatti. Drawing Books. brands like iKno. Geometry Boxes.THE ITC JOURNEY……………………. set up the Agri Business Division for export of agricommodities. . • Entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear in 2000 • In 2000. ITC spun off “ITC Infotech India Limited” • 2002‟s Safety Matches initiative.) • In 1990. 'Vivel' and 'Superia' brands. Pens and Pencils under the 'Classmate' brand. • ITC entered the Personal Care Business in 2005. • Launched range of notebooks under brand Paperkraft in 2002 & Classmate in 2003. Mangaldeep.

• Entered branded snacks category with Bingo! in 2007 • In 2010.THE ITC JOURNEY……………………………. ITC's foray into the Foods business • In August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes.. ITC launched Sunfeast Yippee! to enter the Indian instant noodles market . • In 2002. ITC entered confectionery and staples segments : launched “mint-o” . “Candyman” and “Aashirvaad “ • 2003 witnessed introduction of Sunfeast (biscuits segment).

Contribution of products towards the Group .

launched 'Kaju Badam Cookies‟ response been encouraging.Cigarette FMCG segment registers robust revenue growth of 23% • 'Aashirvaad' atta strengthened its leadership position across markets & with value-added offerings like 'Multi-grain' and 'Select' brands.NET PROFIT UP 20. the Staples category improved margins. • 'Sunfeast Yippee!' noodles continued to garner consumer franchise • 'Sunfeast' biscuits sustained its robust growth trajectory.2% FOOD BUSINESS • Non . • The Bingo! range of potato chips and finger snacks grew at a rapid pace.FACTS . 'Tangles‟ and 'Mad Angles Masti Chaat' were well received by target consumers .

2% PERSONAL CARE • The Personal Care Products business made significant strides during the quarter with its carefully crafted portfolio of product offerings under the 'Essenza Di Wills'.FACTS . • Together with 'Vivel Active Fair' and 'Superia Super Fair'. • The skin care category was fortified with the launch of 'Vivel Summer Fair'. 'Fiama Di Wills'.NET PROFIT UP 20. further gaining consumer franchise. the augmented portfolio of fairness creams continues to receive encouraging consumer response and is being rolled out to target markets. a differentiated summer specific offering with Triple Filter SPF 15 and Aloe Vera for fresh. . fair skin. 'Vivel' and 'Superia' brands.

2% EDUCATION & STATIONERY PRODUCTS • The Education & Stationery Products business registered impressive growth powered by the 'Classmate' brand which continued to consolidate its leadership position in the student notebooks category.NET PROFIT UP 20. pencils and scholastic products under the 'Classmate and 'Paperkraft' brands. . the business introduced a number of new products and variants in pens. • In the writing instruments and scholastic products categories.FACTS .

NET PROFIT UP 20.2% CIGARETTES • Several initiatives across the portfolio in terms of pack modernization and introduction of variants and limited edition packs under the Classic'. 'Gold Flake Premium Filter' brands further bolstering market standing • Also test marketing filter cigarettes of length not exceeding 65 mm. .FACTS . 'Flake'. investments continued to be made towards enhancement of quality. productivity and variety. • On the manufacturing front.

the Company. Sri Lanka on a 99-year lease from the Government of Sri Lanka.star luxury property. for developing a 5. • The super luxury property.NET PROFIT UP 20. ITC Grand Chola at Chennai. through a newly formed subsidiary. acquired a prime plot of land in Colombo. is complete and awaiting statutory clearances prior to commercial launch. given the compelling longer term potential of this sector. • The construction activity of the new luxury properties at Kolkata and at Classic Golf Resort near Gurgaon are progressing satisfactorily.2% HOTELS • In line with its investment led growth strategy. .FACTS .

FACTS .2% PAPERBOARDS.NET PROFIT UP 20. enabling product differentiation and faster speed-to-market. . PAPER & PACKAGING • Segment Revenues recorded a growth of 9% • Segment Results grew faster at 17% driven primarily by continuous enhancement in the product mix. • The business continues to leverage its state-of theart facilities to provide strategic sourcing support to the FMCG businesses.

2% AGRI BUSINESS • The business continues to provide strategic sourcing support to the Company's Cigarettes and Branded Packaged Foods business by ensuring high quality supplies at optimal costs. .NET PROFIT UP 20.FACTS . • The new green leaf tobacco threshing facility in Karnataka is fully operationalized and will further enhance quality and improve supply chain efficiencies.

SWOT ANALYSIS Strength Brand Management Opportunity Rural market E-choupal Weakness Unrelated diversification Threats Increasing tax in Cigarettes Health hazard .

Agri business.THE BCG MATRIX FOR ITC LTD.Others Dogs . Cows FMCG-Cigarettes ? FMCG. Stars Hotels Paperboards/ Packaging.

1 in Asia 1of the largest xporters from India ITC Group ranks No.7% 3.5% . 'Aashirvaad' atta is No.1 in branded segment Contribution % Revenue PBIT 77. Agri business Hotels FMCG (Others) Dominance 70% share Packaging board – No.3% 4.3% 7.7% 5.4% -7.4% 87.7% 10.0% 4.Segment Cigarettes Paper & Packg.2 20% share of greeting cards market.0% 7.