Download - Distribution of ITC Cigarettes
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