Submitted byMOHD ARIF KHAN

MASOOD AHMAD
NIKITA BISHT
MANJUL KRISHNAN
KRISHNA KUMAR

Incorporated on August 24, 1910 under the

name Imperial Tobacco Company of India
Limited.
Name of the Company was changed from Imperial
Tobacco Company of India Limited to India
Tobacco Company Limited in 1970 and then
to I.T.C. Limited in 1974.
Deals in FMCG goods,Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and
Information Technology, education.

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.
Mission - To enhance the wealth generating
capability of the enterprise in a globalising
environment, delivering superior and sustainable
stakeholder value

Political factors/Legal factors:

The political environment is quite favorable for ITC and has a positive impact on
FMCG and Hotel business. For example, the removal of the expenditure tax
from2007-08 and the exemption of service tax in budget 2008-09 which helps in
increasing the buying power of the customers. (http://indiabudget.nic.in) The
increase in the tax policies such as increase in excise duty and the vat from 12.5%
to20% in three major cigarettes consumption states of Maharashtra, Rajasthan
and Delhi have resulted in the increase in the overall selling price of the
cigarettes which deters the potential customers and results in lower sales.

Economic factors:
With non filter cigarettes being levied the same tax as compared to the filter
cigarettes, there was a sharp decline in the volume of the non filter cigarettes for
fy09. ITCs volume declined by only 3% even though it discontinued the
production of non filter cigarettes.
ITCs volume was supported by filter cigarettes which grew by almost 15% in
fy09 despite the price hike. This shows that ITC is gaining at the expense of
competitors.

Social factors:
The aspirations of the tobacco consumers to upgrade the consumption
can multiply the shares of cigarettes. However, growing public concern
with regard to the consumption of tobacco has led the government to ban
all sorts of advertisements like the commercials, print media and
pamphlets. This may act as a setback for the company. For the hospitality
business, the society is now turning more towards an individual oriented
culture which means that people spend only for themselves. The rise in
the per capita income and the working population in the country is also a
good sign for the company because the number of people willing to
spend more on leisure increases with per capita income.
Technological factors:
ITC came a long way on the technological front. With state of the art
factories and cheap labor supply from the second largest tobacco
producing country in the world, India, the supply chain management of
the ITC follows the latest trend. ITC also has the great inventory control
and logistics support. They have also been adapting other quality
concepts such as quality control, total quality management and 6sigma concepts.

Strengths:

Managing diverse business. ITC has 105 subsidiaries connected with its
various operations.
Wealth of local knowledge & international expertise helps it to be globally
competitive.
High quality standard products & services
Excellent export earnings.
Highly professional management.
Excellent distribution network.
Excellent brand making capability helping it to diversify it into Retailing, IT
& Hotel segments
Agro-export segment showing excellent growth of 28 % & earning Rs. 4
billion foreign exchange.
A lasting impression by catchy ads.
ITC ltd is one of the most liquid scripts in the capital market. With domestic
institutions having a considerable stake this is likely to improve liquidity in
De-mat trading.

Weakness:
Diversification into various lines in which it does not
have much knowledge would be very risky proposition.
High competition from established brands which has
resulted in reduction in profit margins.
Steep increase in cigarette taxes has adversely affected
the revenue earned.
Due to high price of cigarette, consumers are switching
to other cheaper forms of tobacco.
Its hotel industry has still not created a big share in the
market size.

Opportunities:
Big untapped market available. For cigarettes,
hotels, it, retail garment, packaging & agricultural
products.
High growth potential could be achieved.
Good source of revenue & foreign exchange
available by way of exports of agricultural products,
hotels & cigarettes.
Its competitors dont have the financial banking like
it so it can take advantage of this.
Proper publicity of the hotels would increase its
brand image & revenue.

Threats:
Negative publicity for smoking could affect its
cigarette segment.
Government is under huge pressure from public
organizations for banning tobacco products which
could affect it adversely.
High competition from established brands.
Competition from unbranded products.
Due to terrorist attacks the tourism industry has
taken a back seat which would affect the hotel
segment.
Poor monsoon leads to poor agricultural growth
which would affect the agro-exports

ITC believes that its core values of trusteeship, customer

focus, respect for people, excellence, innovation and
nation orientation have been the guiding principles
behind the Company's phenomenal growth, helping it to
become one of India's most admired and valued
enterprises.
Only a handful of companies can boast of having not
only traversed a hundred years but also of having grown
from strength to strength, transforming themselves from
single product entities to multi-business conglomerates.
Our values help the organisation in building a culture
that drives a constant yearning for excellence and
innovation. When you join ITC you imbibe these values
and make them your own.