ITC :-

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.
As the Company's ownership progressively Indianised, the 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. In recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the
full stops in the Company's name were removed effective September 18, 2001. The Company now
stands rechristened 'ITC Limited'.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for
men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a
comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio
Femme). Continuing with its tradition of bringing world class products to Indian consumers the
Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in
September, October and December 2007 respectively. The Company also launched the 'Superia' range
of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De
Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

Yogesh Chander Deveshwar is the Chairman of ITC Limited, one of India's largest multi-business
conglomerates. He was appointed as a Director on the Board of the Company in 1984 and became the
Chairman on 1 January 1996.

Definition and Purpose

ITC defines Corporate Governance as a systemic process by which companies are directed and
controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum
of societal resources, we believe that the governance process should ensure that these companies are
managed in a manner that meets stakeholders aspirations and societal expectations.

Tuesday, March 04, 2008

Vivel Di Wills comes in an attractive carton package with some elegant color scheme. The brand is priced
at Rs 16 for 75 gm cake.

Now comes the interesting part. When I was shopping, the attractive packing and display of Vivel Di W

ills prompted me to take one ( for my wife ) . But when I reached the section
for soaps, I was surprised to see another set of soaps with the brand name Vivel . This was confusing to
me and I thought that it was a fake brand taking advantage of Vivel Di Wills. On closer examination, I
was surprised to find that Vivel also belong to ITC. Then I checked the price and it was less that Vivel Di
Wills. The packaging was ordinary and there was even a sales promotion offer attached with the soap
( Price off) .

So there are two brands Vivel Di Wills and Vivel priced differently and even the brand elements are
different. News reports say that Vivel has four variants : Satin soft, Young Glow, Ayurvedic Essence,
Sandal Sparkle.

So the natural question is about the logic of these two brands with similar brand names launched
simultaneously. In a press release available in the ITC portal, the category head Sandeep Kaul mentions
that they are going to use price and positioning difference to separate the brands Fiama and Vivel Di
Wills since Fiama also launched a soap recently.

But the question is with Vivel Di Wills and Vivel. I am a little confused but a parallel can be drawn
between Vivel Di Wills, Vivel , Lux and Lux International. Lux International is positioned as a premium
soap while Lux is a mass market one. ITC may be adopting the same strategy. ITC is looking at two
segments within the medium priced soap category and using a small price differential, it is tapping
customers who can pay a little more for extra benefits ( Masstige brand). The campaign for Vivel Di Wills
will indirectly draw customers ( Value conscious ) towards Vivel.

Vivel Di Wills is being promoted using TVC and the message is that the lady is so beautiful that the
husband does not notice any other ladies. My initial impression about the soap is positive and I find the
fragrance refreshing and new. The brand name Vivel Di Wills is urban and will definitely appeal the
educated urban consumers . The brand also has its advantage interms of the ingredients. Indian
consumers will be impressed by the ingredients like Olive Oil, Active Clay, Shea butter which gives this
brand a unique healthy natural perception.

The idea behind these fast launches is to provide a complete range of soap brands to the Indian
consumer. ITC knew that it is a late entrant to the market. Time is too short for phased launches. Hence
the strategy is to offer a full portfolio at one go and then try to manage the differences

Profits from Operations :    +19.9%

Pre-Tax Profits :    +19.4%
Post-Tax Profits :    +21.4%

Personal Care Products

The Personal Care business continued to gain consumer franchise leveraging investments in
R&D, product development and brand building. Product offerings under the ‘Essenza Di Wills’,
‘Fiama Di Wills’, ‘Vivel Di Wills’, ‘Vivel’ and ‘Superia’ brands continue to focus on enhancing
consumer benefits.

The business made a foray into the fast growing and relatively under-penetrated domestic skin
care market with the launch of ‘Vivel Active Fair Cream’ in June 2010. The product has been
well received in the launch markets and is being progressively rolled out to target markets.
The business expanded its product portfolio in the Soaps category with the launch of ‘Vivel
Glycerine Milk Cream’ – a new offering in the winter segment. ‘Vivel Deo Spirit’, the business’
offering in the freshness segment, was extended to Andhra Pradesh, Kerala and Karnataka during
the quarter.

The Anti-Hair fall shampoo variant under the ‘Fiama Di Wills’ brand launched in Sept ’10, has
received encouraging consumer response and is being extended to target markets.

The business is investing in building a strong portfolio of products and brands through well-
defined research and development strategies backed by the Company’s state-of-the-art R&D
Centre. It is also continuously enhancing the quality of engagement with consumers through
efficient deployment of media, direct contact and promotional activities across conventional and
new age consumer connect avenues.

The business continues to leverage investments in manufacturing facilities at Haridwar

(Uttarakhand) and Manpura (Himachal Pradesh). Apart from the fiscal benefits that accrue on
such investments, these facilities also provide a higher degree of flexibility in manufacturing.