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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