2. ITC Limited Profile
Type Public
Traded as BSE: 500875
Industry Conglomerate
Founded August 24, 1910 (as Imperial Tobacco
Company of India)
Founder Henry Overton Wills
Headquarters Kolkata, West Bengal, India
Key people Yogesh Chander Deveshwar (Chairman)
Products : Tobacco, Hotel’s, Paperboards & specialty
papers, packaging, agri-business, packaged
foods &confectionery, IT, branded
apparel, personal care, stationery, safety
matches and other FMCG products
Revenue US$ 7 billion (2012-13)
Employees 25,000 (2012)
3. ITC has a diversified presence in FMCG, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business, and Information
Technology. While ITC is an outstanding market leader in its
traditional businesses of Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded
Apparel, Personal Care and Stationery.
ITC is one of India's foremost private sector companies with a
market capitalisation of US $ 35 billion and a turnover of US $ 7
billion. ITC is rated among the World's Best Big Companies, Asia's
'Fab 50' and the World's Most Reputable Companies by Forbes
magazine and among India's Most Valuable Companies by Business
Today. ITC ranks among India's '10 Most Valuable (Company)
Brands', in a study conducted by Brand Finance and published by the
Economic Times. ITC also ranks among Asia's 50 best performing
companies compiled by Business Week.
5. Yogesh Chander Deveshwar is the Chairman of ITC
Limited, one of India's largest multi-business
conglomerates. He was appointed as a Director on the
Board of the Company in 1984 and became the Chairman
on 1 January 1996.
Yogesh Chander Deveshwar was born on 4 February 1947
in Lahore, British India. He received his Bachelor of Technology Degree
in Mechanical Engineering from the Indian Institute of Technology, Delhi in
1968. Y C Deveshwar joined ITC Limited in 1968. He was appointed as a
Director on the Board of the Company in 1984 and became the Chief
Executive and Chairman of the Board in 1996. Between 1991 and 1994, he
led Air India as Chairman and Managing Director.
During his 15-year tenure at the helm, ITC has seen top-lines moving from
Rs. 5,000 crore to nearly Rs. 27,000 crore in 2010 and profits from a level
of Rs. 260 crore to over Rs. 4,000 crore.
6. Vision & Mission statements
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.
7. TIMELINE
1910 ITC was incorporated under the name Imperial Tobacco
Company of India Limited.
1925 Packaging & Printing Business
1954 Converted into a Public Limited Company
1970 Imperial Tobacco Company of India Limited to India
Tobacco Company Limited
1974 I.T.C. Limited
1975 Company launched its Hotels business
1979 ITC entered the Paperboards business
1985 ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and
British joint venture.
1990 ITC acquired Tribeni Tissues Limited (TTL)
1990 ITC set up the Agri Business Division for export of agri-
commodities.
2000 ITC spun off its information technology business into a wholly
owned subsidiary, ITC Infotech India Limited
2000 ITC entered the Lifestyle Retailing business with the Wills
Sport range
2001 The Company now stands rechristened 'ITC Limited'.
8. 2001 Introduction of 'Kitchens of India' ready-to-eat Indian
gourmet dishes.
2002 Surya Tobacco became a subsidiary of ITC Limited
and its name was changed to Surya Nepal Private
Limited
2002 ITC launched line of premium range of notebooks
under brand Paperkraft
2002 The Wills Lifestyle chain of exclusive stores later
expanded its range to include Wills Classic formal
wear and Wills Clublife evening wear.
2002 ITC also initiated popular segment John Players
2002 ITC entered the confectionery and staples segment
the launch of the brands minto and Candyman
confectionery and Aashirvaad atta (wheat flour).
2002 ITC markets popular safety matches brands
like iKno, Mangaldeep and Aim.
2003 Classmate range of notebooks was launched.
2003 Introduction of Sunfeast as the Company entered the
biscuits segment.
9. 2005-2012 ITC entered the Personal Care Business. In seven years, the
Personal Care portfolio has grown under 'Essenza Di
Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands
2006 Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion
Week. ITC launched a special 'Wills Signature', taking the
event forward to consumers.
2007- 2009 launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand.
2007 ITC entered snacks category with Bingo!
2008 ITC positioned the business as the Education and
Stationery Products Business and launched India's first
environment friendly premium business paper under
the 'Paperkraft' Brand.
2010 Colour Crew was launched as a new brand of art stationery.
2010 ITC launched Sunfeast Yippee! to enter the Indian instant
noodles market.
2010 ITC launched its handrolled cigar, Armenteros, in the
Indian market.
11. Strength
Cigarette market is 22,000 cr and ITC has lion’s
share in it
ITC leveraged it traditional businesses to develop new
brands for new segments.
Diversification
12. Weakness
Dependence on tobacco revenues
Cigarettes account for 49% of company`s turnover
and responsible for 82% of revenues.
16. According to Philip Kotler, “Marketing mix is the combination
of four elements, called the 4P’s (Product, Price, Promotion
and Place), that every company has the option of adding,
subtracting, or modifying in order to create a desired marketing
strategy.”
17. FMCG
FMCG (Fast Moving Consumer Goods)
“ARE THOSE CONSUMABLES WHICH ARE NORMALLY
CONSUMED BY THE COSUMERS AT A REGULAR
INTERVAL”
18. FMCG PRODUCT’S OF ITC
Packaged foods &confectionery
Personal care
Stationery
Safety Matches and Agarbattis
Cigarettes
19. ITC’s Branded Packaged Foods business is one of the
fastest growing foods businesses in India, driven by the
market standing and consumer franchise of its seven
popular brands - Aashirvaad, Sunfeast, Bingo!, Kitchens
of India, mint-o, Candyman and Yippee! Over the past
5 years, the business has grown at an impressive rate
faster than that of the industry.
21. ITC Vs Other Players
Sunfeast Biscuits at third position with 10% market share after
Britannia and Parle respectively.
Aashirwad wheat flour is on top with 40% market share,
virtually forcing HUL to slow down Annapurna wheat flour.
Ready-to-eat Sunfeast Pasta established with 6% of volumes in
branded noodles market.
8% market share in Biscuits industry(Rs 4500 Cr) &
confectionery(Rs 2000 Cr) &15% Mkt share in atta and salt (Rs
1000 Cr)
Bingo managed to capture an 11% market share of the Indian
snack market within 6 months of its launch.Currently it has a
market share of 13%.
22. In line with ITC's aspiration to be India's premier FMCG
company, recognised for its world-class quality and enduring
consumer trust, ITC forayed into the Personal Care business in
July 2005. In the short period since its entry, ITC has already
launched an array of brands, each of which offers a unique and
superior value proposition to discerning consumers.
ITC's Personal Care portfolio under the 'Essenza Di Wills',
'Fiama Di Wills', 'Vivel UltraPro', 'Vivel' and ‘Superia' brands
has received encouraging consumer response and is being
progressively extended nationally.
23. ITC made its entry to the education and stationery
business with its Paperkraft brand in the premium segment
in 2002; and later expanded into the popular segment with
its Classmate brand in 2003. By 2007, Classmate became
the largest Notebook brand in the country. Together,
Classmate and Paperkraft offer a range of products in the
Education & Stationery space to the discerning consumer,
providing unrivalled value in terms of product & price.
24. As part of its strategic initiative to create multiple drivers of
growth in the FMCG sector, ITC commenced marketing
safety matches and agarbattis sourced from the small-scale
sector. The business leverages the core strengths of ITC in
marketing and distribution, brand building, supply chain
management.
ITC's range of Safety matches and Agarbattis include
popular brands like Aim, Aim Special, Aim Premium,
Mangaldeep and i Kno.
25. ITC is the market leader in cigarettes in
India. With its wide range of invaluable
brands, ITC has a leadership position in
every segment of the market. ITC’s highly
popular portfolio of brands includes
Insignia, India Kings, Lucky Strike,
Classic, Gold Flake, Navy Cut, Players,
Scissors, Capstan, Berkeley, Bristol,
Flake, Silk Cut, Duke & Royal,
Armenteros
26. Pricing
Bingo was launched in 2007
The pricing strategy adopted by Bingo is a clever one
Bingo is priced the same as the Lays brand of chips at Rs10
for a 35g packet and Rs5 for the smaller one.
A factor that aided Bingo was the failed pricing strategy of
Lays in late 2007.Frito Lay had increased the price of Lays
from Rs10 for 35g to Rs15 for 45g.
By adopting a consistent pricing strategy and by offering
higher margins to the retailers Bingo has won the retailer’s
hearts.
27. Distribution
The large, country wide distribution network of ITC
built up over the years was a key factor in Bingo’s
ubiquitous availability.
Bingo pack of chips even at the smallest shop in the
remotest parts of India.
It also has entered into an agreement with the Food
Bazaar chain of outlets for retail of its Bingo and other
brands of food products
Bingo has struck at the small shops, to which it's
offering a margin that's 4% to 5% higher than what
Frito Lays is paying
29. Pricing
The biscuits industry now has two clear models.
Parle plays a high volume, low margin game.
Britannia and Sunfeast look at a two-pronged strategy.
High margins in cream variants and volumes from the
Marie and Glucose segments.
Cream biscuits from both Britannia and Sunfeast cost
Rs 10 for 100 grams. Parle, however, only charges Rs 5
for its cream variants. Except for Hide & Seek, all of
Parle's products lie in the price range between Rs 4
and Rs 6 for 100 gram packs.
30. Distribution
The company used its existing network of convenience
stores.
The company also looked at grocery stores and other
retail formats.
The company says the brand is now available in nearly
1.8 million outlets
31. SUNFEAST
In 2005 Sunfeast launched its major campaign. It signed on SRK as its brand
ambassador. In same year as the official sponsor of the WTA tennis championship titled
the sunfeast open the company had teenage sensations sania mirza, Sachin Tendulkar
and Mahesh bhupatti campaigning for it. In southern states, sunfeast has signed tamil
superstar Surya as a brand ambassador.
32. Vivel di wills
Kareena Kapoor is the brand ambassador for Vivel di
wills since it’s onset. While ITC signed Tamil actress
Trisha as a brand ambassador in southern states.
33. Fiama Di Wills
Deepika Padukone is the brand ambassador for Fiama di wills since it’s launch in
2007. Sapna Bhavnani, a celebrity hair stylist, has also endorsed the brand since
March 2010. She spearheaded "Tress-Talk", a unique initiative in which she
created a Fiama Di Wills look for a model and spoke at length on specific hair
care for different types of hair
34. Classmate, ITC's education and stationery products
brand, has signed Yuvraj Singh and Soha Ali Khan as
brand ambassadors for its range of products.
35. Future Plans
ITC has planned to undertake investments of nearly Rs
25,000 crore spread over 40 projects across the country in
the next 5-7 years.
The company is also working towards entering the
nutrition, health and well-being segment.
The company aiming to become the number one FMCG
player in the country (barring cigarettes).
