ppt on itc
TRANSCRIPT
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Imperial Tobacco Company of
India Limited (ITC).
Presented to :united world school
of businessFirst year student
Presented by
Kumar shivender
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INTRODUCTION ITC Limited which previously stood for µ Imperial Tobacco Company
one of India's foremost private sector companies.
Transform itself from a leading Cigarette manufacturer to an umbrella
group which offers diversified products.
Successful in Hotel Business(ITC welcome group) and collaborated
with Sheraton Corporation.
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Contd.. ITC's wholly owned Information Technology subsidiary, ITC
InfoTech India Limited, is pursuing emerging opportunities in
providing end-to-end IT solutions, including e-enabled services
and business process outsourcing.
ITC's Agri-Business is one of India's largest exporters of
agricultural products.
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Vision: Sustain ITC¶s position as one of India¶s most valuable
corporations through world class performance, creating growing value
for the Indian economy and the Company¶s stakeholders.
Mission: To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering superior and
sustainable stakeholder value.
VISION & MISSION
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NEED FOR DIVERSIFICATION
Core business of ITC is in the manufacture of cigarettes and
tobacco.
On domestic front, it realized that there was huge revenue
potential for a launch of wider product range to the Indian
consumer base.
ITC¶s FMCG business has one of largest retail networks in the
country(2 million retailers)
Government ban on advertisements of cigarettes, high tax rates,
decline for the demand of cigarettes.
The company felt the to diversify from the early 1970 andstarted entering those business that provides good ROI and a
potential for future expansion.
Leads to concentrate to the other business opportunities.
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Hotel
Cigaretes
IncenseSticks
PersonalCare
SafetyMatches
Agricultu-ral
Industry
InformationTechnology
Paperboards
PackagedFoods
Stationery
BrandedApparel
DIVERSIFICATION OF ITC
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Diversification Strategy
Cigarettes :
Focus to deliver highest product quality and value to consumers helps
them to lead in cigarettes industry.
To boost sales growth introduce festivals packs of brands like: flake
filter, bristol filter, berkeley filter and Scissor filter.
Branded food business(2001):
Launch kitchen of India(Canned foods from ITC Bukhara
restaurants).
Brand offers ready to serve products.
Introduced Aashirwad brand of wheat(atta) in 2002.
Entered into biscuit market by launching Sunfeast brand in 2003.
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Stationery products:
Launch greeting cards under the brand name Expressions.
Gain popularity due to introduction of cards in different
languages.
Safety matches
Increase market share and its sales by offering unique designsand value added features such as AIM.
Hotels(1975)
Four brands- ITC Welcome group, Welcome hotels,Fortune hotels, Welcome heritage
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SWOT Analysis
Strength
Cigarette market is 22,000 cr and ITC has
lion¶s share in it
Strong brand recognition and product portfolio
Distribution network
Management
Weakness
Dependence on tobacco revenues
Negative Connection of Tobacco
Opportunity
Low per capita consumption
Of personal care products
Rural Market
E-Choupal
Threat
Competition both Domestic & International
Increasing Tax on cigarettes
Regulatory restrictions on cigarettes
Ban on smoking
Terror attacks
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PEST analysisPolitical Ban on communication
Luxury tax
Economical Bidee : cigarette ratio-10:1
Profit margin is high.
Other forms of cheap tobacco intake.
Socio cultural Becoming status symbol.
Changing attitudes towards tobacco.
May 31 is no tobacco day.
Change in life style.
Technological Cheap labour supply.
Adapting other concepts like QC,TQM etc.
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The BCG Matrix for ITC Ltd.Stars
Hotels
Paperboards/
Packaging.
Agri business.
?
FMCG- Others
ITC Infotech
Cows
FMCG-Cigarettes
Dogs
Branded apparel
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Porters 5 forces
Low bargaining power of customer
High bargainng power of supplier
High threats of new entrants
High rivalry
Low substitutesdue to strict laws
In case of tobacco industry
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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, Branded
Apparel and Greeting Cards.
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Critical Success Factor
SITE AND LOCATION
FINANCIAL STRENGTH
BRAND RECOGNITION
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Corporate Social Responsibility
ITC's businesses generate livelihoods for over 5 million people.
ITC's globally recognised e-Choupal initiative is the world's largest rural
digital infrastructure benefiting over 4 million farming families.
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.
ITC's Watershed Development Initiative brings precious water to nearly
35,000 hectares of dry lands and moisture-stressed areas.
ITC's Sustainable Community Development initiatives include women
empowerment, primary education.
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HONOURS & AWARDS
Ranked 4th in net profit amidst India¶s private sector corporation,
Forbes magazine under the section of world¶s leading
companies(2004).
Received the world business award in 2004 initiated as a part of United Nations µMillennium Development objectives due to leading
role in reducing poverty and creating work opportunities at a national
level.
Received µEnterprise Business Transformation Award 2004¶ for Asia
pacific region by Wharton Infosys.
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Issues with ITC
Advertisement ban 2003
Analyst view Decrease in sales of Cigarettes
Health awareness
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ITC. Touching your life. Everyday
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ITC
Cigarettes
ITC Hotels
ITC FMCG goods
Stationery
Ex pressions
E- choupal
COMPETOTERS
GPI (godfrey phillips india
ltd)
Hotel oberoi
Hul, p&G
Navneet
Archies
IFFCO and others
ITC. Touching your life. Everyday
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Products of ITC
ITC. Touching your life. Everyday
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Stationary, paper & cards
ITC. Touching your life. Everyday
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Cigarettes
ITC. Touching your life. Everyday
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ITC Hotels
ITC. Touching your life. Everyday