Agri - Business • Agri-Exports • e-Choupal • Leaf Tobacco
Group Companies • ITC Infotech; etc.
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
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, value added products Agri business 34.3 % E-choupal, choupal sagar, FMCG-Others 60.2 % Fast track, decent share.
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.
Segment Dominance Contribution % Revenue PBIT Cigarettes 70% share 77.0% 87.7% Paper & Packg. Packaging board – No. 1 in Asia 7.3% 10.7% Agri business 1of the largest xporters from 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 is No.1 in branded segment 4.4% -7.5%
Market attractiveness & Competitive strength is also important. Act 2
Assumes market growth rate. A firm may grow the market.
A “Dog” may be helping other products.
High market share/Growth is not the only success factor.
Linkage between market share and profitability is questionable.
The BCG Matrix for ITC Ltd.
Maybe ITC Infotech.
Act III - Action- Learning points and conclusions
? - To be handled with care.
Strategic forays into emerging high growth markets.
E-Choupal is a transformational strategy.
Strong brand building capability will be tested.
Learning points (Cont’d)
Corporate strategy of creating multiple drivers of growth anchored on its core competencies and distribution reach.
Embracing difficult and challenging corporate strategy. (Ex: Paperboards).
EHS philosophy: Contribution to the triple bottom line- Economic, Environment and social capital.