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INTRODUCTION

ITC Limited, Indian tobacco company Ltd.

is an Indian conglomerate with a turnover of US $ 6 billion

and a market capitalization of over US $ 22 Billion.

The company is currently headed by

YOGESH CHANDER DEVESHWAR.

It employs over 26,000 people at more than 60 locationsacross India and is listed on FORBES 2000.

ITC Limited completes 100 years on 24th August, 2010.


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ITC Business PortfolioFMCG

,

Paper &

PackagingHotelsAgri

Business

Information

Technology

Cigarettes Personal CareFoods Lifestyle Retailing

Education & Stationery

MatchesIncense Sticks


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Cigarettes

W. D. & H. O. Wills

Gold Flake

Navy Cut

Insignia

India Kings

Classic (Verve, Regular,Mild & Ultra Mild)


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Contd

Silk Cut

Scissors

Capstan Berkeley

Bristol

Lucky Strike Flake.


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Hotels

ITC Welcomgroup Hotels, Palaces and Resorts

is India's second largest hotel chain with over

100 hotels.


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They have 4 brands in hotels


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competitors

TAJ GROUP OF HOTELS

OBEROI GROUP OF

HOTELS


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Strategies

Their strategy has been clearly to focus on a fewniche areas and provide unique and differentiatedvalue propositions to their guests.

Their brands ITC Hotel, Welcome Hotel, Fortune andWelcome Heritage, which spans luxury to mid-market segments, have been on a growth trajectory

in recent months. They have leveraged the uniqueadvantages that India offers in terms of diversity andheritage.


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Contd

The physical architecture of their propertiesare unique and offer a local flavour to

discerning guests.

Category Brand Positioning

Luxury ITC Hotel: Luxury Collection "Mansions of Luxury"

Upper upscale WelcomHotel: Sheraton "Passion for Quality"Upscale - mid-scale Fortune Hotels "Promise of True Value"

Heritage WelcomHeritage "Unique Experiences"


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FMCG, ITC has a strong presence in:

Foods business Kitchens of India

Aashirvaad

Minto

Sunfeast

Candyman


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Contd

Bingo brands in ready to eat.

Staples

Confectionery

Snack Foods


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Personal Care Products business

Fiama di Wills

Vivel Essenza di Wills

Superia brands of products in perfumes

Haircare and skincare


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Safety Matches and Agarbattis

Ship (through ownership of WIMCO)

IKno

Mangaldeep Aim brands


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Strategies

Their strategy is to consolidate and offer a

greater range in the existing categories and

grow these markets.


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Agri-business

ITC's Agri-Business is India's second largest exporter

of agricultural products. ITC is one of the India'sbiggest foreign exchange earners (US $ 2 billion in

the last decade).

The Company's 'e-Choupal' initiative is enablingIndian agriculture significantly enhance its

competitiveness by empowering Indian farmers

through the power of the Internet.


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Contd

The company places computers with Internet

access in rural farming villages; the e-Choupals

serve as both a social gathering place forexchange of information (Choupal means

gathering place in Hindi) and an e-commerce

hub.


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ABHISHEK JAIN

e-Choupal has not only changed the quality of our lives, but our entire outlook.

Before ITC introduced us to e-Choupal,

we were restricted to selling our produce in the local Mandi.

We had to go through middlemen and prices were low.

ITC trained me to manage the Internet kiosk and I becamethe e-Choupal Sanchalak in my village.

Today we are a community of e-farmers with access to dailyprices of a variety of crops in India and abroad , this helps usto get the best price.

We can also find out about many other important things weather forecasts, The latest farming techniques,

crop insurance, etc.

C d


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Contd

E-Choupal Now

States covered 10

Villages covered 40,000

No. of e-Choupals 6,500

Farmers e-empowered 4 million


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Strategies


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Paper boards & specialty papers

Coated Virgin Boards Coated Recycled Boards

Barrier Poly Coated Cast Coated Graphic Others
http://www.itcpspd.com/products/spciality_papers.htmlhttp://www.itcpspd.com/products/speciality_boards.html


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Contd

Cigarette Tissue and Components

Fine Printing

Packaging

Decor Papers

Niche Products


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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


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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, valueadded products

Agribusiness

34.3 % E-choupal, choupal sagar,

FMCG-

Others

60.2 % Fast track, decent share.


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Market share of ITC Ltd.

Outstanding market leader

Cigarettes, Hotels, Paperboards, Packaging

and Agri-Exports. Gaining market share

Nascent businesses of Packaged Foods &

Confectionery, Staples ,Branded Appareland Greeting Cards.


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Segment Dominance Contribution %Revenue PBIT

Cigarettes 70% share 77.0% 87.7%

Paper &Packg.

Packaging board No.1 in Asia

7.3% 10.7%

Agribusiness

1of the largest xportersfrom India

7.0% 3.7%

Hotels ITC Group ranks No.2 4.3% 5.4%

FMCG

(Others)

20% share of greeting

cards market,'Aashirvaad' atta isNo.1 in brandedsegment

4.4% -7.5%


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The BCG Matrix for ITC Ltd.

Stars

Hotels

Paperboards/

Packaging.Agri business.

?

FMCG- Others

Cows

FMCG-Cigarettes

Dogs


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Major strategies followed by ITC:

Entering into less competitive or unexplored markets(ready to eat, staples, wafers)

Distribution network

Market differentiation ( Ready to eat, biscuits) Cost control strategy (all products)

Extensive advertising (biscuits, confectionary, wafers)

Regular introduction of new products (all products)


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