BCG Matrix for ITC Ltd.

Vision & Mission statements

 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 globalizing environment, delivering
superior and sustainable stakeholder
value.
Business Mix of ITC Ltd.

FMCG
• Cigarettes
• Foods
• Lifestyle Retailing
• Greeting, Gifting & Stationery
• Safety Matches
• Agarbattis

Paperboards & Packaging

• Paperboards & Specialty Papers
• Packaging
 Business Mix (Cont’d)

Agri - Business
• Agri-Exports
• e-Choupal
• Leaf Tobacco

Hotels

Group Companies
• ITC Infotech; etc.
 The BCG Matrix for ITC Ltd.

Stars ?
Hotels FMCG- Others

Paperboards/
Packaging.
Agri business.

Cows Dogs
FMCG-Cigarettes Maybe ITC Infotech.
 Business wise Sales data
Business/ Year Growth Value (Rs in Crore)
% 2005 2004

FMCG-Cigarettes 8.4 10002.54 9230.27

FMCG-Others 85.2 563.39 304.16

Hotels 124.1 577.25 257.53
Agribusiness 4.2 1780.07 1708.77
Paper & pkg. 24.9 1565.31 1253.29
Net revenue 12.99 13349.58 11815.04
CAGR during FY 2005-2008

Category CAGR Growth parameters

Cigarettes 10.9 % Pricing power
Hotels 22.7% Inward traffic, occupancy
Paper 17.2 % Capacity utilization, value
added products
Agri 34.3 % E-choupal, choupal sagar,
business
FMCG- 60.2 % Fast track, decent share.
Others
 Market share of ITC Ltd.

Outstanding market leader

 Cigarettes, Hotels,
Paperboards, Packaging and
Agri-Exports.
Gaining market share
 Nascent businesses of
Packaged Foods &
Confectionery, Branded
Apparel and Greeting Cards.
Segment Dominance Contribution %
Revenue PBIT
Cigarettes 70% share 77.0% 87.7%

Paper & Packaging board – No. 7.3% 10.7%

Packg. 1 in Asia
Agri 1of the largest xporters 7.0% 3.7%
business from India
Hotels ITC Group ranks No.2 4.3% 5.4%

FMCG 20% share of greeting 4.4% -7.5%

(Others) cards market,
'Aashirvaad' atta is
No.1 in branded
segment
A
c
t
2

Market attractiveness & Competitive

strength is also important.
Limitations

 Assumes market growth rate. A

firm may grow the market.
 A “Dog” may be helping other
products.
 High market share/Growth is not
the only success factor.
 Linkage between market share
and profitability is questionable.