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Itc  manendra Itc manendra Presentation Transcript

  • A Journey that Enduring VALUE …
  • TEAM MEMBERS MANENDRA SHUKLA RAHUL JOSHI RICHA SRIVASTAVA SHIV BALAK GIRI
  • One of India’s Most “Valuable” Corporation
  • COMPANY PROFILE
    • Chairman:- Y.C Deveshwar
    • ITC was incorporated on August 24, 1910
    • ITC- 'Imperial Tobacco Company of India Limited'.
    • In the initial days it used to operate from a leased office on Radha Bazar Lane, Kolkata.
    • IN 1928 headquarter building build, i.e, ' Virginia House ' , Kolkata.
  • COMPANY PROFILE
    • Full stop were removed and it become 'ITC Limited‘ on 21st September 2001.
    • ITC capitalization- nearly US $ 15 billion
    • Turnover- US $ 4.75 billion
    • Employee- 21,000 people
    • Location-60 locations across India
    • VISION: "Enduring Value for the nation & for the Shareholder”
  • 1910 THE CHRONOLOGY OF SUCCESS BY ITC was incorporated on August 24, 1910. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. 1925 In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation 1975 In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India 1979 In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. 2002 In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). 1985 In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry 1990 in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters 1990 ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers 2000 In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. 2000 A line of premium range of notebooks under brand “ Paperkraft ” was launched in 2002 its offering and to reach a wider student population 2002 The popular range of notebooks was launched under brand “ Classmate ” in 2003. “ Classmate ” over the years has grown to become India ’ s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag 2003 In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India ’ s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 2000 ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, 2000 In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry 2006 Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “ Classmate ” brand. In 2008 ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “ Paperkraft ” Brand. “ Paperkraft ” offers a diverse portfolio in the premium executive stationery and office consumables segment 2007-09 Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. 2009 2002 In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative 2002 ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005 2005 Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively 2007 Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008 2008 2003 2009 …… Recently Company has introduce another Series of Classmate, i.e “CLASSMATE-VICTOR” (a Geometry Box, MRP Rs. 45) AND THE JOURNEY CONTINUES…..
  • BOARD OF DIRECTORS NON-EXECUTIVE DIRECTORS Anil Baijal R K Kaul S H Khan S B Mathur D K Mehrotra H G Powell P B Ramanujam Anthony Ruys Basudev Sen B Vijayaraghavan CHAIRMAN Y C Deveshwar Anup Singh EXECUTIVE DIRECTORS K Vaidyanath Chairman of the Board from January 1, 1996 Anup Singh-Director on the Board of ITC from November 21, 1997 K Vaidyanath-Director on the Board of ITC from January 17, 2001
    • ITC is rated among the World's Most Reputable Companies by Forbes magazine
    . ITC ranks among Asia's 50 best performing companies compiled by Business Week ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007 The Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate Governance' ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world. The only Indian FMCG company to have featured in the Forbes 2000 list The NDTV Profit Business Leadership Award for being the Best Food Company of 2007 GLOBAL HONOURS
  • The ITC Vision The ITC Mission To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value 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
  • ITC - Business Portfolio ITC HOTELS FMCG: Cigarettes Other FMCG Agri Business Leaf Tobacco Agri Commodities Paperboard Paper & Packaging
  • HOTELS BUSINESS FMCG: Cigarettes Other FMCG Agri Business Leaf Tobacco Agri Commodities Paperboard Paper & Packaging
    • When it comes to cigarettes, a brand name that would instantaneously hit one’s mind would be “Wills”.
    ITC Welcomgroup was named the Best Premier Hotel Brand at the Galileo-Express TravelWorld Awards 2008 & 2006. ITC WelcomHeritage won the Best Heritage Hotel Brand award in 2006. Other FMCG 2 0 0 9 ITC's Agri Inputs business actively encourages the farming community to use judicious combination of organic and chemical inputs towards Integrated Crop Management (ICM) for sustainable agriculture with focus on productivity and quality. ITC’s Paperboards and Specialty Papers Division is India’s largest and most technologically advanced paper and paperboards business. ITC’s Paperboards and Specialty papers business enjoys market leadership in the value-added paperboards segment, and also has a significant share of the Indian paperboards market. It is also the largest Indian exporter of coated boards
    • Strategy of Organization
    • (For managing diversity of Portfolio)
    • Formal 3-tiered Governance Structure :
    • Board of Directors:
        • Comprising Executive (4) & Non-Executive Directors (11)
        • Strategic Supervision
    • Corporate Management Committee:
        • Comprising Executive Directors & Senior Managers
        • Strategic Management
    • Divisional Chief Executive & Divisional
    • Management Committee:
        • Executive Management
  •  
  • HUMAN RESOURCES THE SMALLEST SEED OF FAITH IS BETTER THAN THE LARGEST FRUIT OF HAPPINESS
  • HR practices of ITC
    • Policies of ITC
    • Policy on Human Rights
    • Policy to ensure respect for human rights policy
    • across the supply chain
    • Policy to prevent discrimination at workplace
    • Policy on freedom of association
    • Policy prohibiting child labour and preventing forced
    • labour and preventing forced labour from workplace
    • Policy on information and consultation on changes
    • HIV/ AIDS policy
    • Openness
    • Hard work
    • Meritocracy (completely professional work atmosphere)
    • Right balance between work and fun
    • Informal dress and vibrant weekends
    • Skip level feedback
    WORK CULTURE OF ITC
  • EMPLOYEE BENEFIT SCHEME
    • Post retirement Non-Contributory Pension
    • Family Hospitalisation Assistance Scheme
    • Housing loan Assistance
    • Educational Assistance
    • Recreation Clubs
    • Subsidised Canteens
      • Strategic Human Resource Management
      • Sr. Management Committee & Management Framework
      • Line Management Capacity for HRM
      • Management Development
      • Contracts
      • Consultants
    MANAGEMENT OF PEOPLE IN “ITC”
    • Institutional Memory
    • ITC Field Presence
    • The Employment Cycle of ITC
    • Training and Development
    • Career & Succession Planning
    • Enhancing Staff Performance
    • Management Approach
    • Policy
    • Responsibility
    • Management
    • Training and Awareness
    • Monitoring and Follow-Up
    • Objectives
    • Awards
    • Context
    Labour Practices & Decent Work Environment
  •  
  •  
    • ITC Q1 net up 17.37% at Rs 879 Crore
    • Net income rose to Rs 4,132.92 crore in the latest quarter, against Rs 3,934 crore in the same period
    • last fiscal.
    • ALTMAN’S Z-SCORE IS 3.17 WHICH IS GREATER THAN 2.99 i,e.
    • NSE LAST TRADED PRICE ON 21 st IS RS.228.95
    • BSE LAST TRADED PRICE ON 21 ST IS RS.228.90
    “ SAFE ZONE” FINANCIAL GLOSSERY
  • POSITION OF THE COMPANY FROM 2006 TO 2009
  • SALES REVENUE SALES (IN CRORES) YEAR AMOUNT 2009 15,582.73 2008 13,947.53 2007 12,369.30 2006 9,790.53
  • SEGMENTWISE REVENUE SEGMENTWISE REVENUE (IN CRORES) 2009 2008 A. FMCG- Cigarettes 7,557 6,635 - Others 3,050 2,510 TOTAL FMCG 10,607 9,145 B. HOTELS 985 1,012 C. AGRI-BUSINESS 3,896 3,868 D. PAPERBOARDS, PAPER & PACKAGING 2,697 2,158 TOTAL 18,185 16,183 LESS: Inter Segment Revenue 2,603 2,235 SALE       15,582 13,948
  • TOTAL ASSETS Rs. (IN CRORES) YEAR TOTAL ASSETS 2009 13,857 2008 12,216 2007 10,581 2006 9,122
  • PROFIT AFTER TAX Rs.(IN CRORES) YEAR PAT 2009 3,183 2008 2,966 2007 2,662 2006 2,259
  • SHAREHOLDER’S FUND Rs. (IN CRORES) YEAR RESERVES & SURPLUS SHARE CAPITAL 2009 13,302 377 2008 11,624 377 2007 10,003 376 2006 8,626 375
  • CURRENT RATIO Year CURRENT ASSETS CURRENT LIABILITIES CURRENT RATIO   Rs (in crores)   2009 8,450 5,862 1.44 2008 7,306 5,265 1.39 2007 6,281 4,585 1.37 2006 5,228 4,126 1.27
  • EARNING PER SHARE & DIVIDEND PER SHARE YEAR EPS (Rs.) DPS (RS.) 2009 8.65 3.70 2008 8.28 3.50 2007 7.18 3.10 2006 5.95 2.65
  • RETURN ON INVESTMENT 36.91 9,122 3,367 2006 37.84 10,581 4,004 2007 36.26 12,216 4,430 2008 35.52 13,858 4,923 2009 ROI(%) CAPITAL EMPLOYED EBIT YEAR IN CRORE
  • POSITION OF ITC LTD. FROM-SEP O8’ TO AUG O9’ ON NSE
  • PROFIT & LOSS ACCOUNT (IN CRORES) MAR' 09 MAR' 08 MAR' 07 MAR'06 INCOME: OPERATING INCOME 14,985.81 14,032.20 12,313.83 9,798.33 EXPENSES: MATERIAL CONSUMED 6,233.67 6,275.33 5,484.52 4,130.04 MANUFACTURING EXP 481.16 383.42 318.32 295.25 PERSONAL EXPENSES 903.37 745 630.15 541.4 SELLING EXPENSES 1,024.94 1,044.40 803.29 627 ADMINISTRATIVE EXP. 1,492.21 1,266.57 1,116.23 853.39 EXPENSES CAPITALISED -72.55 -112.75 -42.52 -15.78 COST OF SALES 10,062.80 9,601.97 8,309.99 6,431.30 OPERATING PROFIT 4,923.01 4,430.23 4,003.84 3,367.03 OTHER RECURRING ITEMS 422.8 479.82 300.14 273.22 ADJUSTED PBDIT 5,345.81 4,910.05 4,303.98 3,640.25
  • PROFIT & LOSS ACCOUNT (IN CRORES) FINANCIAL EXPENSES 47.65 24.61 16.04 21.1 DEPRECIATION 549.41 438.46 362.92 332.34 OTHER WRITE-OFFS - - - - ADJUSTED PBT 4,748.75 4,446.98 3,925.02 3,286.81 TAX CHARGES 1,565.13 1,480.97 1,263.07 1,027.57 ADJUSTED PAT 3,183.62 2,966.01 2,661.95 2,259.24 NON RECURRING ITEMS 2.42 36.68 -23.92 -70.02 OTHER NON-CASH ADJUSTMENTS 81.52 117.41 61.94 46.13 REPORTED NET PROFIT 3,267.56 3,120.10 2,699.97 2,235.35 EARNINGS BEFORE APPROPRIATION 3,992.01 3,767.63 3,262.03 2,846.76 EQUITY DIVIDEND 1,396.53 1,319.01 1,166.29 995.12 PREFERENCE DIVIDEND - - - - DIVIDEND TAX 237.34 224.17 198.21 139.58 RETAINED EARNINGS 2,358.14 2,224.45 1,897.53 1,712.06 MAR' 09 MAR' 08 MAR' 07 MAR‘06
  • BALANCE SHEET (IN CRORES) MAR' 09 MAR' 08 MAR' 07 MAR' 06 SOURCES OF FUNDS OWNERS FUND: EQUITY SHARE CAPITAL 377.44 376.86 376.22 375.52 SHARE APPLICATION MONEY - - - - PREFERENCE SHARE CAPITAL - - - - RESERVE AND SURPLUS 13,302.55 11,624.69 10,003.78 8,626.79 LOAN FUNDS: SECURED LOANS 11.63 5.57 60.78 25.91 UNSECURED LOANS 165.92 208.86 140.1 93.82 TOTAL 13,857.54 12,215.98 10,580.88 9,122.04
  • BALANCE SHEET MAR’09 MAR’08 MAR’07 MAR’06 APPLICATION OF FUNDS (IN CRORES) FIXED ASSETS: GROSS BLOCK 10,558.65 8,959.70 7,134.31 6,227.17 LESS: REVALUATION RESERVE 55.09 56.12 57.08 59.17 LESS: ACCUMULATED DEPRICIATION 3,286.74 2,790.87 2,389.54 2,065.44 NET BLOCKS 7,216.82 6,112.71 4,687.69 4,102.56 CAPITAL WORK-IN-PROGRESS 1,214.06 1,126.82 1,130.20 399.97 INVESTMENTS 2,837.75 2,934.55 3,067.77 3,517.01 NET CURRENT ASSETS: CURRENT ASSETS, LOANS & ADVANCES 8,450.99 7,306.99 6,281.07 5,228.49 LESS: CURRENT LIABILITIES & PROVISION 5,862.08 5,265.09 4,585.85 4,125.99 TOTAL NET CURRENT ASSETS 2,588.91 2,041.90 1,695.22 1,102.50 MISC. EXPENSES NOT WRITTEN - - - - TOTAL 13,857.54 12,215.98 10,580.88 9,122.04
  • MAR ' 09 MAR ' 08 MAR ' 07 MAR ' 06 LIQUIDITY RATIOS: CURRENT RATIO 1.44 1.39 1.37 1.27 CURRENT RATIO (INC. ST. LOANS) 1.42 1.36 1.33 1.25 QUICK RATIO 0.60 0.56 0.58 0.57 INVENTRY TURNOVER RATIO 5.26 5.51 6.05 6.43 PROFITABILITY RATIOS: OPERATING MARGIN(%) 32.85 31.57 32.51 34.36 GROSS PROFIT MARGIN(%) 29.18 28.44 29.56 30.97 NET PROFIT MARGIN(%) 21.18 21.5 21.4 22.19 REPORTED RETURN ON NET WORTH(%) 23.85 25.99 26.01 24.83 LEVERAGE RATIOS: LONG TERM DEBT / EQUITY 0.01 0.01 0.01 0.01 TOTAL DEBT / EQUITY 0.44 0.46 0.46 0.47 OWNERS FUND AS % OF TOTAL SOURCE 98.71 98.24 98.1 98.68 FIXED ASSETS TURNOVER RATIO 1.44 1.59 1.75 1.59 RATIO ANALYSIS
  • MAR ' 09 MAR ' 08 MAR ' 07 MAR ' 06 PAYOUT RATIOS: DIVIDEND PAYOUT RATIO (NET PROFIT) 50.06 49.45 50.53 50.76 DIVIDEND PAYOUT RATIO (CASH PROFIT) 42.84 43.36 44.54 44.19 EARNING RETAINTION RATIO 48.68 47.98 48.75 49.78 PER SHARE RATIOS: REPORTED EPS (Rs.) 8.65 8.28 7.18 5.95 DIVIDEND PER SHARE (Rs.) 3.70 3.50 3.10 2.65 BOOK VALUE PER SHARE (Rs.) 36.24 31.85 27.59 23.97 RATIO ANALYSIS
  •  
  • MARKETING
    • ITC's Core Values are aimed at developing a
    • customer-focused, high-performance
    • organisation
    • Customer Focus:- We are always customer focused
    • and will deliver what the customer needs in terms of
    • value, quality and satisfaction
    • ITC regards corporations as critical tools of social
    • development, and considers public - private - people
    • partnerships – bringing together community, government
    • and business– as the only sustainable basis for social
    • sector and infrastructure development.
  • Corporate Strategies
    • Sustain multiple drivers of growth, matching internal capabilities
    • with emerging market opportunities
    • Pursue World class competitiveness in all businesses and across
    • the entire value chain
    • Best-in-class in terms of:
      • Internal Vitality
      • Market Standing
      • Profitability
    • Strategy of Organisation and Governance processes geared to
    • manage multiple businesses
    • Blend core competencies and leverage ITC umbrella strengths to
    • create new avenues of growth
  • Segmentation Geographic: • Rural • Urban Demographic: • Age • Gender • Occupation Psychographic: • Lifestyle
  • BCG Matrix for ITC Ltd. Market growth Rate Market Share
    • Stars
    • Hotels
    • Paperboards / Packaging.
    • Agri business.
    • ?
    • FMCG- Others
    • Cows
    • FMCG-Cigarettes
    • Dogs
    • ITC InfoTech.
  •  
  • STRENTH
    • ITC is a diversified company
    • ITC leveraged it traditional businesses to develop new
    • brands for new segments.
    • For example:-
      • ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products.
      • ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.
  • WEAKNESS
      • The company's original business was traded in tobacco
    • (the negative connection of tobacco with poor health and premature death. )
      • To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco revenues .
      • ITC is moving into new and emerging sectors including Information Technology, supporting business solutions
      • ITC leverages e-Choupal in a novel way . It is also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages
    OPPORTUNITIES
      • The obvious threat is from competition, both domestic and international.
      • Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings.
    THREATS
  • 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.
  •  
  •  
  • Direct marketing:- Sign boards, posters at shops on point of sale Delivery vans Sales force PROMOTION
  • 7’S OF ITC • STRATEGY • STRUCTURE • SYSTEM • STYLE • SKILLS • STAFF • SHARED VALUES
  • COMPETITOR ANALYSIS The cigarette market in India has 3 players • Godfrey Phillips India (GPI), a Philip Morris affiliate,13% of market share • Vazir Sultan Tobacco (VST), a BAT affiliate, 13% of the total market share • Golden Tobacco Company (GTC) with 8% of the market share. Domestic competitors • Kanhayya tobacco • MR tobacco • Sapna enterprises • Sudarshan tobacco ITC still attains a gigantic market share of 66%
  • SPANCOP • S:- Suspect who can buy our product • P:- Prospect the chances and needs for which customers may buy the product • A:- Approach the prospect with the USP’s of our product • N:- Negotiate the deal for the product • C:- Closing of deal • O:- Get the order • P:- Payment follow up MARKETING STRATEGY BY
    • ITC is committed to delivering world-class products and services.
    • This requires a clear focus on continuously striving to create a higher value to customers by achieving excellence in all Company's operations.
    • Business excellence calls for a passionate focus on:-
    • Technology
    • Products
    • Services
    • Processes
    • An operating environment firmly anchored to an
    • impregnable foundation of Quality.
    The Company's R&D team collaborates with other centres of excellence, and leverages expertise from several leading institutes ITC R & D Centres are manned by highly qualified and trained scientists specialised in their fields. The labs and pilot plants have ultra modern, state-of-the-art testing and prototyping facilities
  •  
  • e-Choupal is an initiative of ITC Limited to link directly with rural farmers for procurement of agricultural / aquaculture produce like soybeans, wheat, coffee, etc. e-Choupal is distributed transaction platform that brings together sellers, buyers along with information and service providers. e-Choupal is an ICT platform for carrying out trade at a number of locations ITC's globally recognised e-Choupal initiative is the world's largest rural digital infrastructure benefiting over 4 million farming families. ITC's businesses generate livelihoods for over 5 million PEOPLE.
  • Evolving along with emerging changes through efficient utilization of available resources, thus maintaining sustainability Acting proactively by enhancing capabilities to fulfill the future needs. MORALE OF THE STORY
  •