ITC Limited

One of India’s Most Valuable

Corporations Enduring Value

Presented By
Ardhendu Mishra
 ABOUT THE COMPANY…

 Diversified group of companies with operations in various

industry segments from cigarettes to apparels.

 Annual turnover is of the order US$2.4 billion

 One of the largest retailing network in the country

 Ranked 8th in the ET 500 survey.

 Products –Cigarettes, hotels, apparels, paper, etc.

 Corporate Strategies
 Sustain multiple drivers of growth, matching internal capabilities
with emerging market opportunities
 Pursue World class competitiveness in all businesses and across
the entire value chain
 Best-in-class in terms of:
 Internal Vitality
 Market Standing
 Profitability
 Strategy of Organisation and Governance processes geared to
manage multiple businesses
 Blend core competencies and leverage ITC umbrella strengths to
create new avenues of growth 4
Vision: Sustain ITC position as one of India most valuable
corporation through world class performance creating
growing value for the Indian economy & the company’s
stakeholder
Mission: To enhance wealth generating capability
of the enterprise in a globalizing environment,
delivering spurious & sustainable stakeholder's
value

Strength: ITC mirage it traditional business to

develop new brands for new segment it
Diversification
 Awards
• FICCI Outstanding Vision Corporate Triple Impact Award 2007
• Sustainability Leadership Award 2007
• Business Today Award for the Best Managed Company – Retail
and Consumer Products
• NDTV Profit Business Leadership Award for being the Best Food
Company
• S&P Environmental, Social and Corporate Governance
• Asian CSR Award 2007 for Environmental Excellence
• Corporate Social Responsibility Crown Award for Water
Practices from UNESCO and Water Digest
 Product Mix of ITC Ltd
FMCG Hotels Paper boards IT Agri-
Cigarettes & Packaging Business
Paper Boards
Foods Leaf
Lifestyle Packing Tobacc
Retailing o
Education Agri
& Stationary Commo
dities
Safety
Matches e-
Agarbaties Choupal
 Prices of Different products of ITC
Ltd
Cigarettes
• Wills Navy Cut-Rs 24 per pack
• Flake-Rs 19 per pack
Foods
• Dal Burkhara (285 gm)-Rs 68.00
• Aashirvaad Salt (1kg)-Rs 10.00
• Aashirvaad Atta(10 kg)-Rs210 .00
(5 kg)- Rs110.00
(1 kg)- Rs 23.50
• Sunfest Butter Butterscotch (180 gm) Rs10
• Sunfeast Marie Light (306 gm)Rs 21
• Sunfeast Golden Bakery (75 gm) Rs15
Lifestyle Retailing
John Player
T-Shirt’s Rs545-Rs1499
Blazer’s Rs1995-Rs4495
Jeans Rs899-Rs1999
Personal Care
Vivel Ayurveda (92 gm)Rs14
Vivel Satin (92 gm)Rs17
Vivel Young Glow (75 gm)Rs14
Agarabaties
Mangaldeep(20 pic) Rs 10
Bingo
funky Masala(45 gm) Rs10
Mad Angles (50 gm)Rs 10
Promotional Programs
 DISTRIBUTION NETWORK

Bangalore Calcutta Saharanpur Munger

GODOWNS BRANCHES
(19) (19)

Information
WHOLESALE DISTRIBUTORS Goods
(60 PER BRANCH)

RETAILERS SECONDARY
WHOLESALERS

Grocery Stores Hotels , Restaurants Super Markets

& Cafes
 Role of Each Member

 Factories – Supply to 18 godowns

 Godowns & Branches
 Manage by C&F agents getting monthly remuneration
 No rent paid by ITC
 one branch – 60 WDs , 5 AMs and 20 Area Executives
 Wholesale Distributors(WDs)
 Margin – 2% of sales
 Appoints secondary Wholesalers
 TERMS & CONDITIONS

 WDs – Zero overnite credit basis

 WD appointed supervisor monitor the performance of sales

force

 Primary expectation – no pilferage of cigarettes

 PHYSICAL DISTRIBUTION

 Demand Estimation – collaborative forecasting( Sales

force with dealers)
 Forecast based on last month sales
 Production plan made according to forecast
 PROBLEMS FACED by ITC CHAIN

1. Shortages in supply system

 Hoarding due to anticipation of a rise in excise duties on
cigarettes
 Creates artificial shortage
 Can be solved by stricter monitoring policy during the time
close to the budget
• Pilferage of stock during transportation
 Due to improper action of WDs
 Can be solved by timely reporting
 The BCG Matrix for ITC Ltd.
Stars Question marks
Hotels FMCG- Others
Paperboards &
Packaging.
Agri business.
Cows Dogs
FMCG-Cigarettes  ITC Infotech.
 Dominance & Revenue
Segment Dominance Contribution

Revenue PBIT
Cigarettes 70% share 77.0% 87.7%

Paperboards & No.1 in Asia 7.3% 10.7%

Packaging

Agri business 1 largest exporter in 7.0% 3.7%

Asia

Hotels ITC group Rank No.2 4.3% 5.4%

FMCG(others) 20% Share of Greeting 4.4% -7.5%

Market , Aashirvad Atta
is No.1 in it’s Segment