Operation strategy of itc limited

OPERATION STRATEGY OF ITC LIMITED

SUMITTED BYSHABISTAN KHAN15/155

• VISION Sustain ITC’s position as one of India’s most valuable

corporation through world class performance , creating growing value for the Indian economy and the Company’s stakeholder .

• MISSION To enhance the wealth generating capability of the

enterprise in a globalizing environment , delivering superior and sustainable stakeholder value

INTRODUCTION

• ITC Limited is an Indian conglomerate

headquarter on Kolkata , West Bengal.

• Its diversified business include five segment Fast moving consumer goods(FMCG)

Hotel , Paperboards & Packaging

Agriculture Business & Information Technology

EVALUATION OF ITC

• 24 Aug,2010 ITC incorporated under the name of ‘Imperial Tobacco

Company of India Limited.• 1925ITC’s Packaging & Printing Business was set up as a

strategic backward integration for ITC’s Cigarettes businesse .

• 1974The Company’s ownership progressively Indianised, and

the name of the Company was change to ITC Limited (Indian tobacco company).

• 1975 The Company launched its HOTEL BUSINESS which

was named ITC-Welcome group Hotel Chola• 1979 ITC entered the Paperboard Business by promoting

Bhadrachalam Paperboard limited ,which today has become the market leader in India

• 1985Surya Nepal Pvt .Ltd• 2000-10ITC forayed into the greeting , gifting and stationary

product and FMCG product

PRODUCT PORTFOLIOFMCG HOTEL PACKAGING

& PAPER BOARD

AGRIBUSINESS

FOOD WELCOME GROUP

SPECIALLY PAPERBOARD

RURAL SERVICE

CIGARETTES WELCOME HARITAGE

PACKAGING LEAF TOBACCO

LIFESTYLE &RETAILING

FORTUNE SPICES

EDUCATION & STATIONARY

THE LUXURY COLLECTION

AGRI-INPUT

PERSONAL CARE

SAFETYU MATCHES& AGARBATTI

Revenue & Staff as per 2015

• Revenue - 403.3 billion INR

• Staff -25.79k

COMPETITORS • Hindustan Unilever limited

• Reliance Industries Limited

SWOT ANALYSIS OF ITC LIMITED

PARTCULAR ITC LIMITED HUL

REVENUE 403.3billion INR 301.7 billion INR

NET INCOME 97.65 billion INR 43.15 billion INR

NO. OF EMPLOYEES 25.79k 19.12k

PRODUCT Cigarettes/Tobacco, personal care product

Food Beverage cleaning agent and personal careproduct

HEADQUARTER kolkata mumbai

COMPARISION WITH HUL

OPERATIONAL STRATEGIES

• Expertise in product(ITC)

/process/marketing(P&G)/supply (HLL).

• Short term period - fast entry growth in CD

manufacturing .

• Production flexibility –garment manufacturing line

(lifestyle).

• Low cost process- labour intensive jobs.

• Convenience and location-HLL’s project SHAKTI in

rural India.

• Product variety – different variety inITCportfolio

size , shape and performance

of the product is also different .

• Quality- Product quality and prooduct performance

are good urban as well as rural area

RATIO ANALYSIS OF ITC & HUL

Ratio ITC HUL

Current ratio 1.45 0.74

Quick ratio 0.86 0.46

Inventory ratio 6.43 12.57

Dividend payout ratio 52.14 75.20

Earning retention ratio 47.86 11.12

Financial charges coverage ratio

261.62 346.41