operation strategy of ITC

1. OPERATION STRATEGY OF ITC
LIMITED
SUMITTED BY
SHABISTAN KHAN
15/155

2. • 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

3. 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

4. EVALUATION OF ITC
• 24 Aug,2010
ITC incorporated under the name of ‘Imperial Tobacco
Company of India Limited.
• 1925
ITC’s Packaging & Printing Business was set up as a
strategic backward integration for ITC’s Cigarettes
businesse .
• 1974
The Company’s ownership progressively Indianised,
and the name of the Company was change to ITC
Limited (Indian tobacco company).

5. • 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
• 1985
Surya Nepal Pvt .Ltd
• 2000-10
ITC forayed into the greeting , gifting and stationary
product and FMCG product

6. PRODUCT PORTFOLIO
FMCG 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

7. Revenue & Staff as per 2015
• Revenue - 403.3 billion INR
• Staff -25.79k

8. COMPETITORS
• Hindustan Unilever limited
• Reliance Industries Limited

9. SWOT ANALYSIS OF ITC LIMITED

10. 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 care
product
HEADQUARTER kolkata mumbai
COMPARISION WITH HUL

11. 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.

12. • 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

13. 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