itc- diversified conglomerate

7/30/2019 ITC- Diversified Conglomerate

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ITC : Diversified Conglomerate

Presented by: Abhishika Kasliwal

Mentor: Mr. Arjun Chaudhuri


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History

August24,1910

ITC was incorporated under the name of'Imperial Tobacco Company of India Limited

1925

ITC's Packaging & Printing Business was set upas a strategic backward integration for ITC'sCigarettes business

August 24,1926

Expansion by purchasing the plot of landsituated at 37, Chowringhee, (now renamedJ.L. Nehru Road) Kolkata


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1975

ITC launched Hotels business with the acquisition of ahotel in Chennai which was rechristened 'ITC-Welcomegroup Hotel Chola'.

1979

ITC entered the Paperboardsbusiness by promoting ITC

Bhadrachalam Paperboards Limited, which today hasbecome the market leader in India.

1985

ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal

and British joint venture. Since inception, its shares havebeen held by ITC, British American Tobacco and variousindependent shareholders in Nepal.


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1990

ITC acquired Tribeni Tissues Limited, a Specialty papermanufacturing company and a major supplier of tissuepaper to the cigarette industry. The merged entity was

named the Tribeni Tissues Division (TTD).

1990

ITC leveraging its agri-sourcing competency, ITC set upthe Agri Business Division for export of agri-

commodities. The Division is today one of India'slargest exporters.

2000 ITC launched a line of high quality greeting cards

under the brand name 'Expressions'.


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2000

ITC also entered the Lifestyle Retailing business with theWills Sport range of international quality relaxed wear formen and women.

2000

ITC spun off its information technology business into awholly owned subsidiary, ITC Infotech India Limited, to

more aggressively pursue emerging opportunities in thisarea.

August 2001

ITC's foray into the Foods business began with theintroduction of'Kitchens of India' ready-to-eat Indiangourmet dishes.


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2002

ITC's philosophy of contributing to enhancing thecompetitiveness of the entire value chain found yet

another expression in the Safety Matches initiative.

2003

ITC's foray into the marketing ofAgarbattis (incensesticks) in marked the manifestation of its partnershipwith the cottage sector.

July, 2005

ITC introduced Essenza Di Wills, an exclusive range of

fine fragrances and bath & body care products formen and women


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Hotel

Cigarettes

IncenseSticks

Personal

Care

SafetyMatches

Agricultural

Industry

Information

Technolo

gy

Paperboa

rds

PackagedFoods

Stationery

BrandedApparel

ITC. Touching your life. Everyday


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ITC Business Portfolio

ITC

CIGARETTES HOTELSAGRI-

BUSINESS

PAPER &

PACKAGINGFMCG-OTHERS

BISCUITSCONFECTI

ONERYATTA

PACKAGED

FOOD

BRANDED

APPAREL


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ITC Product profile Cigarettes: W. D. & H. O. Wills, Insignia, India Kings, Classic, Gold

Flake, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake

Hotels: ITC Welcomgroup chain of Hotels

Paperboards & Specialty Papers:ITC Bhadrachalam PaperboardsLimited"ITC Tribeni Tissues Division" Now there are four units underone name --> Paper Boards and Specialty Papers Division, Unit -Bhadrachalam, Tribeni, Bollarum and Kovai.

Agricultural Industry: Agri-Business, Leaf Tobacco, Gold Ribbon,

Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular, e-choupal.

Packaged Foods & Confectionery: Kitchens of India, Aashirvaad,Sunfeast, Mint-O, Candyman, Bingo Snacks


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Branded Apparel: Wills Lifestyle, John Players, Miss Players

Personal Care: Essenza Di Wills, Fiama Di Wills, Superia, Vivel Di

Wills, Vivel

Greeting Card: Expressions

Information Technology: ITC Infotech

Safety Matches: iKno, Mangal Deep(Discontinued),VaxLit(Discontinued), Delite(Discontinued) and Aim Brandsacquired from Wimco (Swedish Matches)

Incense Sticks: Mangaldeep, Spriha

Stationery: Classmate, Paperkraft, Saathi


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Facts about ITC

Only Indian FMCG Company to feature in Forbes 2000 List

A comprehensive ranking of worlds biggest companies

measured by a composite of sales, profits, assets & market value

Among top in :

Sustained value creation (BT-Stern Stewart survey)

Operating profits

Cash Profits

Ranks No. 9 among Indian listed Private Sector Companies by

market cap.

No. 1 in FMCG Sector

Rated as one of Indias Most Respected Companies (IMRB-

Businessworld Survey 2006)


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Corporate social Responsibility

Environmental

1. ITC has been Carbon Positive 3 years in a row.

2. Water Positive 6years in a row.3. 100% solid waste recycling


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Social

1. ITC's businesses generate livelihoods for over 5 million people.

2. ITC's globally recognised e-Choupal initiative is the world's largest ruraldigital infrastructure benefiting over 4 million farming families.

3. ITC's Social and Farm Forestry initiative has greened over 80,000 hectares

creating an estimated 35 million person days of employment among the

disadvantaged.

4. ITC's Watershed Development Initiative brings precious water to nearly

35,000 hectares of dry lands and moisture-stressed areas.

5. ITC's Sustainable Community Development initiatives include womenempowerment, supplementary education, integrated animal husbandry

programmes.

6. The first ITC Sangeet Sammelan showcasing the best in Indian classical music

was held in Delhi in 1971


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ITC v/s other players

Sunfeast Biscuits at third position with 10% market share after Britannia andParle respectively.

Aashirwad wheat flour is on top with 40% market share, virtually forcing HULto slow down Annapurna wheat flour.

Ready-to-eat Sunfeast Pasta established with 6% of volumes in branded noodlesmarket.

8% market share in Biscuits industry(Rs 4500 Cr) & confectionery(Rs 2000 Cr)&15% Mkt share in atta and salt (Rs 1000 Cr)

Radically different strategy as it offers its distributors higher margins andcompetitively priced products- resulted over 10 per cent market share in a shortspan of time."

Analysts point out that operating margins for ITC are around 35 per cent ascompared to 15 per cent for Hindustan Lever and 20 per cent for Nestle India.


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Company strategy

ITCs 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

Acknowledged service skills


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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)

Diversification of products(biscuits, wafers,and ready to eat)


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Extensive advertising (biscuit, confectionary,

wafers)

Regular introduction of new products (all

products)

Innovation (all products)

From analyzers to prospectors (biscuits)

Backward integration


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Rural business strategies followed by

ITC

By communicating and changing quality

perception

By proper communication in indian language

By target changing perception

By understanding cultural and social values

By providing what customer wants By promoting products with indian models

and actors


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By talking about normal indian

By developing rural specific products

By giving indian words for brands (ashirvadatta)

By effective media communication

By adopting localised way of distributing


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Rural initiatives by ITC

Social and farm forestry

Watershed development

Agricultural development

Women empowerment

Live stock development

Primary education


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E- Chaupal

Two way multi dimensional channel which can

efficiently carry products and services into and

out of rural india

Comprises about 6500 installations covering

nearly 40000 villages and serving over 4 million

farmers

Cost effective and cost efficient in agri business

Launched in June 2000


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Business Model

The e-chaupal model has been specifically

designed to tackle:

The challenges posed by the unique features

of Indian agriculture

Characterised by fragmented farms

Weak infrastructure

The involvement of numerous intermediaries,

among others

itc- diversified conglomerate

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