ITC : Diversified Conglomerate

Presented by: Mentor:

Abhishika Kasliwal Mr. Arjun Chaudhuri

History
August 24,1910

ITC was incorporated under the name of 'Imperial Tobacco Company of India Limited

1925

ITC's Packaging & Printing Business was set up as a strategic backward integration for ITC's Cigarettes business Expansion by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata

August 24, 1926

1975

ITC launched Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcome group Hotel Chola'.

1979

ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India.

1985

ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal.

1990

ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD).

1990

ITC leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agricommodities. The Division is today one of India's largest exporters.

2000

ITC launched a line of high quality greeting cards under the brand name 'Expressions'.

2000

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women.

2000

ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.

ITC's foray into the Foods business began with the introduction of 'Kitchens of India' ready-to-eat Indian August 2001 gourmet dishes.

2002

ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative.

2003

ITC's foray into the marketing of Agarbattis (incense sticks) in marked the manifestation of its partnership with the cottage sector.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for July, 2005 men and women

Branded Apparel

Hotel

Stationery

Cigarette s

Packaged Foods

Incense Sticks

Paperboa rds

Personal Care

Informati on Technolo gy

Agricultu ral Industry

ITC. Touching your life. Everyday

Safety Matches

ITC Business Portfolio

ITC

CIGARETTES

HOTELS

AGRIBUSINESS

PAPER & PACKAGING

FMCG-OTHERS

BISCUITS

CONFECTI ONERY

ATTA

PACKAGED BRANDED FOOD APPAREL

ITC Product profile

Cigarettes: W. D. & H. O. Wills, Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake Hotels: ITC Welcomgroup chain of Hotels Paperboards & Specialty Papers:ITC Bhadrachalam Paperboards Limited"ITC Tribeni Tissues Division" Now there are four units under one name --> Paper Boards and Specialty Papers Division, Unit Bhadrachalam, Tribeni, Bollarum and Kovai. Agricultural Industry: Agri-Business, Leaf Tobacco, Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular, echoupal. Packaged Foods & Confectionery: Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, Bingo Snacks

 Branded Apparel: Wills Lifestyle, John Players, Miss Players

Personal Care: Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di Wills, Vivel Greeting Card: Expressions Information Technology: ITC Infotech Safety Matches: iKno, Mangal Deep(Discontinued), VaxLit(Discontinued), Delite(Discontinued) and Aim Brands acquired from Wimco (Swedish Matches)

Incense Sticks: Mangaldeep, Spriha

Stationery: Classmate, Paperkraft, Saathi

Facts about ITC

Only Indian FMCG Company to feature in Forbes 2000 List

A comprehensive ranking of worlds biggest companies

measured by a composite of sales, profits, assets & market value

Among top in :

Sustained value creation (BT-Stern Stewart survey)

Operating profits
Cash Profits

Ranks No. 9 among Indian listed Private Sector Companies by

market cap.

No. 1 in FMCG Sector

Rated as one of Indias Most Respected Companies (IMRB-

Businessworld Survey 2006)

Corporate social Responsibility

Environmental
1. ITC has been Carbon Positive 3 years in a row. 2. Water Positive 6years in a row. 3. 100% solid waste recycling

 1.

Social ITC's businesses generate livelihoods for over 5 million people.

2. ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. 3. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million person days of employment among the disadvantaged. 4. ITC's Watershed Development 35,000 hectares of dry Initiative brings precious water to nearly lands and moisture-stressed areas.

5. ITC's Sustainable Community Development initiatives include women empowerment, supplementary education, integrated animal husbandry programmes. 6. The first ITC Sangeet Sammelan showcasing the best in Indian classical music was held in Delhi in 1971

ITC v/s other players

Sunfeast Biscuits at third position with 10% market share after Britannia and Parle respectively. Aashirwad wheat flour is on top with 40% market share, virtually forcing HUL to slow down Annapurna wheat flour. Ready-to-eat Sunfeast Pasta established with 6% of volumes in branded noodles market. 8% market share in Biscuits industry(Rs 4500 Cr) & confectionery(Rs 2000 Cr) &15% Mkt share in atta and salt (Rs 1000 Cr) Radically different strategy as it offers its distributors higher margins and competitively priced products- resulted over 10 per cent market share in a short span of time." Analysts point out that operating margins for ITC are around 35 per cent as compared to 15 per cent for Hindustan Lever and 20 per cent for Nestle India.

Company strategy
ITCs diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time- tested core competencies: Unmatched distribution reach Superior brand building capabilities Effective supply chain management Acknowledged service skills

Major strategies followed by ITC

Entering into less competitive or unexplored markets (ready to eat, staples, wafers) Distribution network Market differentiation (ready to eat, biscuits) Cost control strategy (all products) Diversification of products(biscuits, wafers, and ready to eat)

 Extensive advertising (biscuit, confectionary, wafers) Regular introduction of new products (all products) Innovation (all products) From analyzers to prospectors (biscuits) Backward integration

Rural business strategies followed by ITC

By communicating and changing quality perception By proper communication in indian language By target changing perception By understanding cultural and social values By providing what customer wants By promoting products with indian models and actors

 By talking about normal indian By developing rural specific products By giving indian words for brands (ashirvad atta) By effective media communication By adopting localised way of distributing

Rural initiatives by ITC

Social and farm forestry Watershed development Agricultural development Women empowerment

Live stock development

Primary education

E- Chaupal
Two way multi dimensional channel which can efficiently carry products and services into and out of rural india Comprises about 6500 installations covering nearly 40000 villages and serving over 4 million farmers Cost effective and cost efficient in agri business Launched in June 2000

Business Model
The e-chaupal model has been specifically designed to tackle: The challenges posed by the unique features of Indian agriculture Characterised by fragmented farms Weak infrastructure The involvement of numerous intermediaries, among others