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ITC Ltd is one of Indias premier private sector companies. It has diversified presence in businesses such as Cigarettes , hotels , paperboards and specialty papers , packaging , agri business , packaged foods and confectionery , imformation technology brande apparel , greeting card , safety matches and other FMCG product Itc has been rated world best big companies Number one in FMCG products

Founded Type Industry

August 24,1910 Public(BSE : 500875) Conglomerate

Headquarters Virginia House, Kolkata Chairman Mr. Y.C.Deveshwar Products Tobacco, foods, hotels, stationery, greeting cards, personal care, IT etc. Revenue US$ 6 billion(2009) Employees 26,000 app.
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ITC was incorporated on August 24, 1910. Its original name is Imperial Tobacco Company of India Ltd. The name of the company was changed I.T.C. Ltd in 1974. The company has multi-business portfolio encompassing a wide range of businesses. The fullstops in the Companys name were removed effective september 18 , 2001 and the Company was rechristened asITC Ltd

VISION AND MISSION VALUES POSITIONING BUSINESS PORTFOLIO

Vision and mission

valuable corporations through world class performance, creating growing value for the Indian economy and the Companys stakeholders.
VISION: Sustain ITCs position as one of Indias most

MISSION: To enhance the wealth generating capability of

the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.

ITC's Core Values are aimed at developing a customer-focused, high-performance Organisation. Customer Focus we are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.
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ITC. Touching your life. Everyday

ITC

FMCG: Cigarettes Other FMCG

Hotels

Agri Business Leaf Tobacco Agri Commodities

Paperboard Paper & Packaging

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Market leadership in all segments - geographic & price Powerful brands across segments

Extensive FMCG distribution network Direct servicing of 1,00,000 markets & 2 million retail outlets World-class state-of-the-art technology and products Investment - Rs.10 billion in six years
Exciting long term growth potential

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Cigarettes account for only 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation

Cigarettes (15% of tobacco consumption) contribute nearly 85%

of Revenue to the Exchequer from tobacco sector

Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes Biri : Cigarettes ratio = 10 : 1 Annual per capita adult cigarette consumption in India is app.. one tenth of world average : 141

Future growth depends on relative rates of

growth of per capita income and moderation in taxes
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Per Capita Adult Cigarette Consumption (Sticks)

1662 1753

1190

561

488 141

USA

China

Pakistan

Nepal

India

World Avg.

Source : Based on Cigarette consumption data(2003) from World Cigarettes,ERC Group plc.
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Capacity expansion projects underway

120000 TPA Pulp Mill commissioning commenced; being

stabilised 100000 TPA paper machine (to support Stationery business

growth plans) trial commissioning commenced

ITCs packaging SBU -Indias largest converter of paperboard

into high quality printed packaging

Leading supplier to Indian FMCG segment Provides superior packaging solutions

to the cigarettes and new FMCG businesses

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ITC-Welcomgroup : a leading hotel chain in India Established presence in key business locations Over 6000 rooms under 4 distinct brands
Category
Luxury Upper upscale Upscale - mid-scale Heritage

Brand
ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage

Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"

Capacity expansion underway at Bangalore and Chennai; plans for other locations also being progressed Fastest growing hotel chain with highest operating efficiency

(PBDIT/Net Income @ 45%) amongst the 3 leading chains

Leverages unique service proposition and international

alliance with Starwood Hotels & Resorts
Luxury Collection / Sheraton
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Market leader in growth segment - value added coated boards World-class contemporary technology Ozone bleached Pulp Mill operations commenced only one of its kind in India meeting world-class environmental standards

Internationally competitive quality and cost

Social farm forestry in mill command area to improve access to cost effective fibre & to attain self-sufficiency Biotech research based high yielding Clones effectiveness tested in nearly 80,000 hectares

Fully integrated operations with in-house pulping capacity at appx. 2.20 lac MT Expansion completed; source of sustainable competitive advantage
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Capacity expansion projects underway

120000 TPA Pulp Mill commissioning commenced; being

stabilised 100000 TPA paper machine (to support Stationery business

growth plans) trial commissioning commenced

ITCs packaging SBU -Indias largest converter of paperboard

into high quality printed packaging

Leading supplier to Indian FMCG segment Provides superior packaging solutions to

the cigarettes and new FMCG businesses

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India the third largest producer of tobacco

However, Indias share is only 7% in world tobacco trade Upgradation of tobacco consumption from other formats to

cigarettes will enable: growing domestic base larger opportunities for value added exports

ITC Indias largest buyer, processor, consumer & exporter

of cigarette tobaccos

Pioneering cultivation of flavourful Flue-cured, superior Burley and Oriental tobaccos in India

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Farm linkages in 14 states covering Soya, Wheat, Rice, Marine products, Coffee etc. Unique CRM programme in commodity exports Leveraging IT for the transformational e-Choupal initiative

Rural Indias largest Internet-based intervention

Over 38000 villages linked through around 6400 e-Choupals servicing over 3.5 million farmers

Distinctive sourcing capability for ITCs Foods business

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Relevant & Real-time Information Customised Knowledge

Commodity prices, Local Weather, News

Farm Management, Risk Management

Supply Chain for Farm Inputs

Screened for Quality, Demand Aggregation for Competitive Prices & Efficient Logistics

Direct Marketing Channel for Farm Produce

Lower Transaction Costs, Better Value through Traceability

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Distribution of Products and Services to Rural Markets Micro marketing Pilots

Product/Services Demos Marketing and Brand Building activities

Bhoomi eHealth with Private Health Service Providers eEducation Rural BPO

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Current industry consumer spend estimated at over Rs. 21000 crores p.a. (growing at 12%)
Brand wise Highlights
Essenza Di Wills (Super Premium) Portfolios premium imagery Fiama

augmented with launch of Aqua for men in fine fragrances and grooming range
Di Wills (Premium) Shampoos/Soaps/Shower Gels/Conditioners Launched with

Vivel Di Wills and Vivel (Mid) Soaps and Shampoos

Superia (Popular) Soaps and Shampoos

Products well received in the market,

rapidly gaining customer acceptance

Supported by investments in

brands celebrity endorsements

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ITC over the years has been investing cash flows from its cigarette business into various lucrative segments like foods, personal care, hotels and paper. With the paperboard division coming out of a major capex cycle and a reduction in losses from FMCGothers division from FY10E, we expect the noncigarette businesses to become self-sufficient. The agriculture division continues to provide a strong support as an excellent raw material sourcing base. Hotels segment though is likely to register slower growth in FY10E due to economic slowdown and terror attacks.

ITC. Touching your life. Everyday

Tobacco Business is facing an increasingly stringent tax & regulation regime. In 2001 taxes were raised by 15%; Revenue collection sub optimized ( cigarette sales fell disproportionately as forcing consumers to shift to cheaper alternatives, but overall tobacco consumption increased ) Last year 5% increase in excise + 12.5 %VAT leading to unprecedented 30% increase in tax (volume of illegal cigarettes has doubled )

This year excise on non-filter cigarettes was increased (20 % of its portfolio for ITC) as a result ITC has discontinued production of non filter cigarettes.

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Golden Tobacco Limited Godfrey Philips India Ltd. VST Industries Ltd. RTCL Ltd. Hindustan Unilever Ltd. Marico

PERSONAL CARE : Battlling against Hindustan unilever Ltd and proctor n gamble . SNACKING SPACE : Competition against fitro lays and several smaller players in segment . CONFECTIONERIES : Competition against Wrigleys and Perfetti. BISCUITS : Battlling against Britannia and Parle G.

Strength Cigarette market is 22,000 cr and ITC has lions share in it Strong brand recognition and product portfolio Distribution network Management Opportunity Low per capita consumption Of personal care products Rural Market E-Choupal Filter cigarette segment of less than 60mm size

Weakness Dependence on tobacco revenues Negative Connection of Tobacco

Threat Competition both Domestic & International Increasing Tax on cigarettes Excise duty on unfiltered cigarettes less than 60mm in length was increased 387% last year Hike was 142% for those between 61mm and 70mm long. Regulatory restrictions on ITC. Touching your life. Everyday

They have a DIFFERANTIAL MARKETING STRATEGY type. Always use their existing channels. Utilizing nominal resources related with the brand Eg:- E-Chaupal, MangalDeep, Brand Ambassador are selected according to the brands and mostly are YOUTH ICONS They emphasize on going with the FLOW and making their Followers .

e-Choupal initiative wins global recognition:

Stockholm Challenge Award 2006 in the Economic Development category which recognizes initiatives that leverage Information

Technology to improve living conditions and foster economic growth

in all parts of the world. First Indian Company to win the Development Gateway Award 2005 for the most exemplary contribution in the field of Information &

Communication Technologies (ICT) for development during the last 10

years World Business Award 2004: International Chamber of Commerce & the HRH Prince of Wales & International Business forum Harvard University case study Recognized in World Development Report 2008 published by World Bank Applauded by President of India Dr APJ Kalam in his special address 40

ITC features on FORBES GLOBAL 2000 rankings for 2007 ITC received the FICCI Outstanding Vision Corporate Triple Impact Award 2007 for invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation. Business Today Award for the Best Managed Company Retail and Consumer Products, has been conferred on ITC in recognition of its outstanding initiatives in the consumer products segment. The Companys watershed program also won the Asian CSR Award for Environmental Excellence from the Asian Institute of Management. The World Development Report 2008 of the World Bank, which was recently released in India, makes a special mention of ITCs e-Choupal initiative as an innovative use of Information Technology to link farmers to markets in India.

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ITC is the Second Largest Exporter in INDIA They have made a mark in the Business World for their Hotels, Management, FMCG (Kitchens of India),Cigarettes Rural Development Programs have gained National and International Acceptance. Total turnover of ITC is 21355.94 crores in financial year 2007-08.

ITC promoting their brands through advertisement campaign as well as door to door promotion. ITC is also focusing on Retailers and Wholesalers to promote their brand. The demand of their product in very low, because people dont know about their brands very well. ITC knows their strength and weakness in the personal care market, so they are applying new concept to overcome their weaknesses. ITC now offering more margins, exiting offers and long credit period to retailers and wholesalers.

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ITC. Touching your life. Everyday

Thank You
PGDM(W)