ITC Limited

One of India’s Most Admired and Valuable

Company

PRSENTED BY:-
KAPIL GARG
PGDM(GENERAL)
2K1954
HISTORY
24 Aug1910 – ITC incorporated under the name of 'Imperial Tobacco
Company of India Limited'.

1925– ITC’s Packaging & Printing Business Division was set up as a

strategic backward integration for ITC’s Cigarettes business.

1974 – The Company's ownership progressively Indianised, and the name of

the Company was changed to ITC Limited (Indian tobacco company).

1975 – The Co. launched its HOTEL BUSINESS which was named ‘ITC-
Welcomgroup Hotel Chola’.

1979 – ITC entered the Paperboards Business by promoting. ITC

Bhadrachalam Paperboards Limited, which today has become the market
leader in India.
1985 – Surya Nepal Pvt. Ltd.

1990 - International Business Division for export of agri-

commodities

2000 – Life style retailing business with Wills sport range of

international quality relaxed wear for men and women

2000 – ITC InfoTech Ltd.

2001 – ITC entered into food business with launch of ‘kitchen of

India’ ready to eat Indian gourmet dishes.

2002 – Safety matches.

2003- Agarbattis.

2005 – Essenza di wills.

Profile
ITC Performance Track Record
(` crs)

10-yr Cagr
2008-09 2018-19 08-09 to
18-19
Net Revenue 15,612 44,415 11.0%
PBT 4,826 18,444 14.3%
PAT 3,264 12,464 14.3%
Capital Employed 14,780 60,005 15.0%
Segment ROCE% 39.7% 70.3%
Market Capitalisation 69,751 3,63,714 18.0%
Total Shareholder Returns % 20.3%
ITC’s Vision

Vision: Sustain ITC’s position

as one of India’s most Core values: ITC’s core
valuable corporations values are aimed at
through world class developing a customer
performance, creating focused, high performance
growing value for the Indian organization which creates
economy and the Company’s values for its stakeholders.
stakeholders.
Mission: To enhance the wealth
generating capability of the
enterprise in a globalizing
environment, delivering superior
and sustainable stakeholder
value.
 FMCG
Cigarettes Foods Personal Care Lifestyle Retailing^
ITC’s Business Portfolio

Education & Stationery Safety Matches & Incense Sticks

Paperboards, Paper Information

Hotels & Packaging Agri Business Technology
PACKAGED FOODS

Aashirvaad Bingo Candyman

Kitchen of india Mint-O Sunfeast

EDUCATION AND STATIONERY

Classmate Paperkraft Colour Crew

PERSONAL CARE

Engage
Essenza Di Wills

Fiama Di Wills

Vivel Superia
INTENSE STICKS
SAFETY MATCHES

AIM
Mangaldeep
LIFESTYLE RETAILING
Annual Consumer Spends of over 18000 cr.
(FY19)

>4500 cr.

>3800 cr.

~2500 cr.

>1400 cr.

>1100 cr.

>500 cr.
Rapid scale up of
FMCG businesses
(` crs)

12505
11329
10512
9731
9038
8122
7012
5545
4482
3642
2511 3014
1704

2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19
HOTELS AND TOURISM
 E-CHOUPAL

• Choupal is a Hindi word which means

village meeting place, and ‘E’ here
stands for electronic so it is a village
meeting place on a electronic
platform.
• It is a virtual market place where
vendors and customers come
together to do transactions.
• It’s a place where farmers can
transact directly with a processor
and realize better price for their
products.
 Strengths
 Cigarette market is Threats
22,000 cr and ITC has  Competition both Domestic &
lion’s share in it International
 Strong brand recognition  Increasing Tax on cigarettes
and product portfolio  Excise duty on unfiltered cigarettes
 Distribution network less than 60mm in length was
 Management increased 387% last year
Weakness Hike was 142% for those between 61mm
 Dependence on tobacco and 70mm long.
revenues  Regulatory restrictions on cigarettes
 Negative Connection of Ban on smoking
Tobacco
Opportunity
 Consumption Of personal care
products
 Rural Market
 E-Choupal
 Filter cigarette segment of less
than 60mm size
SWOT ANALYSIS
ITC’s Economic
Contribution to the Nation
 10 year Value addition ~ Rs. 3.5 lakh crore (US$ 59 billion)
– Among the top tax payers in the country
– Over the last five years, the Value-Added by your Company,
i.e. the value created by the economic activities of your
Company and its employees, aggregated over
` 220000 crores of which nearly ` 160000 crores accrued to
the Exchequer.

 Foreign exchange earnings in the last 10 years: US$ 7.2 bln

– Of which agri exports constituted ~56%
Awards & Accolades

 One of the foremost in the private sector in terms of :

– Sustained value creation

– Operating profits

– Cash Profits

– Contribution to Exchequer

 ITC won the prestigious Porter Prize 2017 for 'Excellence in Corporate
Governance and Integration' and for its exemplary contribution in
'Creating Shared Value'.
 ITC ranked 3rd amongst leading corporates in India in terms of
Corporate Reputation
 ITC ranked as the most admired company in India in 2014
 ITC recognised amongst the Top 10 employers in India by Randstad
Employer Brand Research survey 2018.