Corporate Dossier

Sneh Meghlan
Roll no. 32
Company : ITC
 ITC Profile
• Incorporated on August 24, 1910
• Initially known as Imperial Tobacco Company of India
Limited.
• ITC is one of India foremost private sector companies
with a market capitalization of nearly US $ 18 billion
and a turnover of over US $ 4.75 billion.
• It is rapidly gaining market share even in its nascent
businesses of Packaged Foods & Confectionery,
Branded Apparel and Greeting Cards.
 ITC Profile
• ITC has a diversified presence in
Cigarettes,
Hotels,
Paperboards & Specialty Papers,
Packaging,
Agri-Business,
Packaged Foods & Confectionery,
Information Technology,
Branded Apparel,
Personal Care,
Greeting Card
Safety Matches and other FMCG products
 Milestones
• 1925 – Set up of Packaging and Printing business.
• 1975 – Launch of its Hotel business
• 1979 – Entered the Paperboards business
• 1985 – Set up of Surya Tobacco company in Nepal
• 1990 – Acquired Tribeni Tissues limited, major
suppliers of tissue to cigarette industry and set up of
Agri Business Division
 Milestones
• 2000 – Entered the stationary business by the
launch of ‘Paperkraft’ and ‘Classmate’
• 2001 – Entered into lifestyle retailing business (Wills
Lifestyle) and food business (Kitchens of India)
• 2002-2003 – Entered the business of safety matches
and aggarbattis ( incense sticks)
• 2005 – Introduction of Essenza Di Wills to mark a
entry in to personal care business
Board of Directors
 Revenue Stream
Tobacco Business Hotel Business
•Insignia
•India •DumPukht
Kings •West View
•Classic •Pan Asian
•Gold Flake • Luxury Hotels
•Silk Cut •WelcomHotels
•Navy Cut •Fortune Hotels
•Scissors •WelcomHeritage
•Capstan •WelcomEnviron
•Bristol
•Berkeley
•Flake
 Revenue Stream
Paperboards Business Packaging Business
•Cyber XLPac •Safire XL Pac •Carton Packaging
• Cyber Cypak •Indobev •Flexible Packaging
• Cyber Propac • Indobarr •Tobacco Packaging
• Cyber XL Premium •Ecoviron •Green Packaging
• Pearl XL Pac •Fusion
•Safire Graphik •ECF AlfaZap
• Art Maestro • Alfa Plus Clients like Nokia,
•Carte Persona • Hi Brite Colgate, UB Group, TATA
Modified Solid • Paperkraft Tea, Reckitt Benckiser,
Bleached Sulphate Pernod Ricard
Boards
• Carte Lumina
 Revenue Stream

Agri Business Division Lifestyle Retailing

•Food Ingredients •Wills Signature
•Food Grains •Wills Classic
•Edible nuts •Wills Sports
•Marine Products •Wills Clublife
•Processed •John Players
Products •Miss Players
•Coffee & Spices
•E-Choupal
•Choupal Sagar
•Choupal Fresh
•Choupal
Pradarshan Khet
 Revenue Stream
Kitchens of India Personal Care
•Bingo •Fiama Di Wills
•Sunfeast •Essenza Di Willa
•Ashirvad Aata •Vivel
•Vivel Di Wills
•Superia
 Competitors
ITC’s main competitors are companies in tobacco
business and FMCG

• Golden Tobacco limited

• Godfrey Philips India ltd.
• VST Industries ltd.
• RTCL ltd.
• Hindustan Unilever ltd.
• Marico
 Sales Turnover and Net Profit of ITC’s
competitors:
Sales Turnover 150.13
Golden Tobacco ltd. Net Profit -11.34

Sales Turnover 2,607.66

Godfrey Philips India ltd.
Net Profit 118.38

VST Industries ltd. Sales Turnover 1,125.42

Net Profit 62.1

Hindustan Unilever ltd. Sales Turnover 18,434.38

Net Profit 2,156.63

Marico Sales Turnover 2,661.81

Net Profit 231.67
As of 30th March, 2010
Sales Turnover and Net Profit of ITC

Sales Turnover 27.623.44

Net Profit 4,168.28

As of 30th March, 2010

 Effects on Economy
• It 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
 Financial highlights
• Profits from Operations : +19.6%
Pre-Tax Profits : +19.2%
Post Tax Profits : +21.8%
• Operating Profits from Non-Cigarette businesses grow 38% (Rs.265
crores in Jun ’10 from Rs.192 crores in Jun ‘09).
• Robust performance by Non-Cigarette FMCG businesses. Segment
revenues up 32.2% with improved profitability.
• Agri Business delivers strong performance with Segment revenues up
43.5% on the back of higher sales of Soya, Leaf Tobacco and Wheat.
• Recovery continues in the Hotels segment with revenues and profits
growing by 21% and 26% respectively.
• The Personal Care business continued to make significant progress
with revenues growing by 86%

As of 30th June, 2010

 Financial highlights
• The Branded Packaged Foods business continued to expand with sales
growing by 34%
• Sales of ‘Sunfeast’ biscuits grew by 43%
• ‘Aashirvaad’ atta consolidated its leadership position with sales growing
by 21%
• Confectionery category revenues grew by 25%
• The Education & Stationery Products business registered a robust
revenue growth of 30%
• the Agri business posted a robust performance recording a revenue
growth of 44%
• Strong showing by Paperboards, Paper and Packaging businesses,
leveraging recent investments in Paper and Pulp capacities. Segment
revenues and profits up 13% and 48% respectively.

As of 30th June, 2010

 Honours and Rewards
• Five Star Rating & Sword of Honour, 2005
• Five Star Rating, 2005
• Gold Award 2005 for Occupational Safety awarded to Packaging &
Printing unit at Munger; Cigarette factories at Bengaluru and Munger
• National Energy Conservation Award 2004-05 from Ministry of Power,
Govt. of India
• Best Eco-friendly Hotel Award from Ministry of Tourism, Govt. of India,
2004-05
• CII: National Award for Excellence in Energy Management and Water
Wanagement
• The Stockholm Challenge Award in the Economic Development category
for ITC e-Choupal
• Golden Peacock Global Award
• Best Supply Chain Practices Award
• Most Admired Shirt Brand of the Year Award
The Biggest Challenge
 Six Pillar Strategy of ITC
Segmentation

Group Synergy

Communication
Strategy
 Six Pillar Strategy of ITC
Brand
Extension

Brand
Ambassadors

Packaging
 Company’s Strategy

• 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 and
acknowledged service skills
 Problems Encountered

• The problems encountered while setting up and managing

‘e-Choupal’ were:
Infrastructural inadequacies
Including power supply
Telecom connectivity and bandwidth
Imparting skills to the first time internet users in
remote and inaccessible areas
Alternative & Innovative Solutions
• Power back-up through batteries charged by Solar panels
• Upgrading BSNL exchanges with RNS kits
• Installation of VSAT equipment
• Mobile Choupals
• Local caching of static content on website to stream in the
dynamic content more efficiently
• 24x7 helpdesk etc
 Communication mode
• Television commercial
• Newspaper
• Advertisements behind the buses
• Outdoor Advertising
• ITC Food division came up with innovative ideas while launching its
product “Bingo” and continued with that which resulted in top of
mind recall for the product
• “Superia” and “Desi Luxe” does not include any brand ambassador
as the TG do the role as they are very individualistic and are super
achievers
• “Vivel” and “Fiama” has pulled in Kareena and Deepika to endorse
their product for the mass and class apeal
 Future Plans
• To give ITC a life beyond tobacco and make it an FMCG giant. He will
need that to secure the company's future.
• Planning to launch some other services with their e-Choupal
program like:
 Micro-Credit
 Health
 Education

To counter competition, ITC has made plans, which include

extension of manufacturing capacity, investments in ‘research &
development’ projects, new launches and multi-media
advertising campaigns.
THANK YOU