Group 2 IB-B

Sales & Distribution of ITC Cigarettes

History & Evolution ITCy Incorporated on August 24, 1910 under the name Imperial

Tobacco Company of India Limited. y From Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. y The Company now stands rechristened 'ITC Limited'.

Some Facts - ITCy ITC Limited is one of India's foremost private sector companies

with a market capitalisation in excess of US $ 16 billion and a turnover of more than US $ 3.5 billion. y ITC ranks third in pre-tax profits among India's private sector corporations. y . ITC is ranked among the World's Best Big Companies and Asia's 'Fabulous 50' by Forbes magazine, among India's Most Respected Companies by Business World magazine and among India's Most Valuable Companies by Business Today magazine y It employs over 26,000 people at more than 60 locations across India

Business Portfolio

FMCG: Cigarettes & others

Hotels

Paperboards & Specialty Paper

Infotech

Agri Business

Business Portfolio

FMCG: Cigarettes & others

Hotels

FMCG: Cigarettes P&P & others

Infotech

Agri Business

Product Portfolio Insignia India Kings Lucky Strike Classic Gold Flake Navy Cut Players Scissors Capstan Berkeley Bristol Flake Silk Cut Duke & Royal

Channel DesignManufacturing Unit (Bengaluru, Munger, Saharanpur, Kolkata and Ranjangaon) Warehouse (Magarpatta)

Zonal Office

Wholesale Distributor (Pimpri, Yerwada, Shivaji Nagar, Narayanpeth, Hadapsar)

Wholesaler (Pimpri)

Retailers

Consumers

Compositiony Manufacturing Unity Separate for each product y state-of-the-art factories

y Warehousey Stores all products

y Distributory Exclusive based on population y Need to stock all FMCG products ( except stationery)

y Wholesalers y Retailers

Wholesale Distributors in Puney 2 Pimpiri ( Bombay Store, Rajesh Trading) y 1 Yerwada (Pune Cigarettes) y 1 ShivajiNagar (Chamaria) y 1 Narayanpet (Jawahar) y 1- Harapsar (Yash Distributors) y 1 Swargate (Mahadev)

Retailersy Pubs/Bars y Kirana Shops y Pan Shops y Koisk y Large Format Stores

Some More Informationy Distributors Weekly y Retailers Twice a week y Paanwalas daily y Online order is placed by the distributor y Paymenty Mostly on cash; some times post dated cheques y Very rarely credit is allowed on cigrattes

Just another Pan shop near Kalyani Nagar, Pune Mild Distributor POS Buy 94 100 Sell 100 110 Margin (Rs) 6 10 Margin (%) 6.382978723 10 # of Packets 200 25 Margin 1200 250

Gold Flake Distributor POS

Buy 94 100

Sell 100 110

Margin (Rs) 6 10

Margin (%) 6.382978723 10

# of Packets 130 17

Margin 780 170

Gold Flake 10 Distributor POS

Buy 47 50

Sell 50 55

Margin (Rs) 3 5

Margin (%) 6.382978723 10

# of Packets 100 10

Margin 300 50

Lucky Strike Distributor POS

Buy 82 87.5

Sell 87.5 100

Margin (Rs) 5.5 12.5

Margin (%) 6.707317073 14.28571429

# of Packets 10 1

Margin 55 12.5

Walk the Talk

Reinvest Sale Purchases Registration Location

Some issuesy The hassles arising over Tobacco sales! y Handling the local authority well, with Tea and snacks! y Need to spend on Transportation cost as well. y No Credit facility. y Trust on your staff for handling the large cash amount daily.

HinjewadiStreet side Tamanna Kalyani Nagar

PuneShivaji Nagar

# of Cartons per day Buy Sell Sales Purchases Gross Profit Rent

2

7

7

10

880

1000

1000

1000

1400

1200

1200

1200

84000

252000

252000

360000

0

210000

210000

300000

84000

42000

42000

60000

10000

17000

17000

17000

Profit

74000

25000

25000

43000