ITC PRESENTATION

1. SUBMITTED BY,
HEMANT PANWAR
PGDM-1
Rollno-P15FC170
*FINAL PROJECT ON
ITC’S YIPEE

2. “ITC COMPANY”:
ITC was incorporated on August 24, 1910 under the name of 'Imperial
Tobacco Company of India.
ITC is one of the leading private sector enterprises that a market
capitalization of $19 billion and a turnover of $5.1 billion. This diversified
has business interests in cigarettes, hotels, paperboards and specialty
papers, packaging, agri-business, packaged foods and confectionery,
information technology, branded apparel, personal care, stationery, safety
matches and other FMCG products. The company has employee strength of
over 25,000 people at more than 60 locations across India.
Overview- Highlight :
• Indian FMCG sector is the fourth largest sector.
• Low operational cost – competitive advantage
• Huge potential –middle class & rural sector
• Expected to grow at base rate of least 12% annually
• Active in overseas acquisitions.
• Retail sector contributes to 22% of the country’s GDP.
• Accounts for approximately 8% of the total employment

3. 21%
10%
37%
8%
5%
19%
market share
HUL
ITC
NESTEL
BRITANIA
DABUR
OTHERS

4. Growth drivers in
FMCG
Large
Market
Spending
pattern
Rise of rural
consumers
Changing
profile and
mind set of
consumer
Growing
popularity
of
organized
retail
FDI
support
Increasing
per capita
income of
urban
population
Growth
drivers

5. VISION AND MISSION:
VISION:- sustain ITC’s position of India’s most valuable corporation through
world class performance ,creating growing value for the Indian economy and
the company’s stakeholders.
Mission:- to enhance the wealth generating environment delivering superior and
sustainable stakeholder value.
Business:
FMCG:- Under this division, the company has business interests in various segments
like cigarettes, food, lifestyle retailing, personal care, Education and stationary, agarbattis
and safety matches. The company offers a wide range of products under each segment.,
ITC's Branded Packaged Foods Business is one of the fastest growing foods businesses
in India.
A spread of delectable offerings in Staples, Snacks & Meals, Confections and Beverages
is
available under several popular brands like Aashirvaad, Sunfast, Bingo!, Yippee!,
Kitchens of India.

6. Packaging:
ITC's Packaging & Printing Business is the largest value added
converter of paperboard packaging in South Asia. It converts over
70,000 tones of paper, paperboard and laminates per annum into a
variety of value-added packaging solutions for the food & beverage,
Agree Commodities & Rural Services:
ITC is the country's second largest exporter of agree-products. It currently focuses on
exports and domestic trading of: Feed Ingredients
Food Grains - Rice (Basmati), Wheat
Marine Products - Shrimps and Prawns
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit
Products, Fresh Fruits

7. Leaf Tobacco:
ITC pioneered the cultivation and development of Leaf Tobaccos in India., ITC's
Leaf Tobacco business is synonymous with being 'The One Stop Shop for Quality
Indian Tobaccos‘
Hotels: ITC Hotels, India's premier chain of luxury hotels was launched on October
18, 1975, with the opening of its first hotel.
CMPETITORS:-
• Marico
• L oral
• Nirma Ltd
• HUL
• Dabber

8. MARKETING STRATEGY
STP FOR A PRODUCT:
 Segment :- products and services for daily needs
 Target group:- Every Indian household especially the middle class.
 Positioning: - Enduring value for the nation for the share holder
SWOT ANALYSIS:
STRENGTH:-
• ITC has a strong and experienced management
• Strong brand presence
• Diversified product and services packaging and agri business
• ITC limited employees over 25000 people
• Excellent research and development facilities

9. WEAKNESS:-
Hotel industry has not been able to create a huge market share
OPPORTUNITY:-
More publicity of hotel chains to increase market share
Mergers and acquisitions to strengthen the brand
Tap rural markets and increase penetration in urban areas
Threats:-
FDI in retail thereby allowing international brands
Intense and increasing competition amongst other FMCG companies
and hotel chains
4p’s in yippee:-
PRODUCT PRICE PLACE PROMOTION
Different package At Rs.10 to match
competitors.
Urban market Advantages over Maggi as
competitor.
Round cake Also in Rs.5 Rural market
penetration due to
ITC distribution
channel.
Ads mostly shown on
particular channels & time.
80gm pack
2 variants

10. STP:
-SEGMENT :- People looking for a healthy snack when hungry.
Target group:- Young people and children from upper and middle class.
Positioning:- Sunfast yippee noodles do not lump even 30
minutes after cooking.
SWOT ANALYSIS:-
Strength:- 1. Good advertising and visibility.
2. Good product distribution availability.
3. lots of flavors and varieties availability.
Weakness:- 1. Media generated news about health issues.
2. Brand loyalty of Maggi is tremendous.
Opportunity:- 1. Untapped rural markets.
2. Dinks, single professionals.
3. Newer tastes.
Threats:- 1. Price was with other noodle brands.

11. Product Life Cycle:
The product life cycle has 4 very clearly defined stages, each with its
own characteristics that mean different things for business that are trying
to manage the life cycle of their particular products
Introduction Stage :- This stage of the cycle could be the most expensive for a
company launching a new product. The size of the market for the product is small,
which means sales are low, although they will be increasing. On the other hand, the
cost of things like research and development, consumer testing, and the marketing
needed to launch the product can be very high, especially if it’s a competitive
sector.

12. Growth Stage:- The growth stage is typically characterized by a strong
growth in sales and profits, and because the company can start to benefit from
economies of scale in production, the profit margins, as well as the overall
amount of profit, will increase. This makes it possible for businesses to invest
more money in the promotional activity to maximize the potential of this
growth stage.
Maturity Stage:- During the maturity stage, the product is established and the aim
for the manufacturer is now to maintain the market share they have built up. This is
probably the most competitive time for most products and businesses need to invest
wisely in any marketing they undertake. They also need to consider any product
modifications or improvements to the production process which might give them a
competitive advantage
.
Decline Stage: – Eventually, the market for a product will start to shrink, and this is
what’s known as the decline stage. This shrinkage could be due to the market
becoming saturated or because the consumers are switching to a different type of
product.

13. Gross Profit and Net Profit Margin of the company
year 2015 2014 2013 2012 2011
gross profit ratio
(g.p./netsales*100)
41.190 40.864 38.746 38.548 37.336
BUSINESS FINANCE
35
36
37
38
39
40
41
42
1 2 3 4 5
AxisTitle
Axis Title
Gross profit ratio
Series1

14. year 2015 2014 2013 2012 2011
net profit ratio (N.P/net
sales*100) 26.317 26.430 24.809 24.504 23.242
21
22
23
24
25
26
27
1 2 3 4 5
AxisTitle
Axis Title
Net profit ratio
Series1

15. Direct and indirect costs of the company – change in comparison to previous
year
trend analysis
Direct cost 2015 2014 2013 2012 2011
Increase/Decrease in Stock -214.53 -128.41 -246.35 -65.59 -270.55
Raw Materials Consumed 14886.49 13284.75 12312.13 9697.02 8431.28
Power & Fuel Cost 581.65 613.19 550.11 453.02 421.06
Employee Cost 1780.04 1608.37 1387.01 1257.62 1140.02
Other Manufacturing Expenses 1408.56 1330.48 1157.02 1053.51 944.29
Total 18442.21 16708.38 15159.92 12395.6 10666.1
Indirect cost
General and Administration
Expenses 1419.54 1089.35 1234.39 1049.68 993.4
Selling and Distribution Expenses 2117.19 1982.31 2088.32 1954.62 1701.27
Miscellaneous Expenses 1104.2 983.04 800.09 878.92 665.9
Interest 78.45 23.63 105.91 97.96 87.98
Depreciation 961.74 899.92 795.56 698.51 655.99
Provision for Tax 4389.79 3873.9 3265.79 2735.16 2280.55
Total 10070.91 8852.15 8290.06 7414.85 6385.09

16. change in RS(14-15) change in %
1 0.05
-86.12 67.07
1601.74 12.06
-31.54 -5.14
171.67 10.67
78.08 5.87
1733.83 10.38
330.19 30.31
134.88 6.80
121.16 12.33
54.82 231.99
61.82 6.87
Indirect cost
General and Administration Expenses 1419.54 1089.35 1234.39 1049.68 993.4
Selling and Distribution Expenses 2117.19 1982.31 2088.32 1954.62 1701.27
Miscellaneous Expenses 1104.2 983.04 800.09 878.92 665.9
Interest 78.45 23.63 105.91 97.96 87.98
Depreciation 961.74 899.92 795.56 698.51 655.99
Provision for Tax 4389.79 3873.9 3265.79 2735.16 2280.55
Total 10070.91 8852.15 8290.06 7414.85 6385.09

17. Fixed assets added during the year.
Fixed assets during the year
opening assets
as on 1.04,2104
surplus balance
Additions for
the year
With
dawals
and adj
31.3.1
5
Land
Leasehold 2.21 0.17 17.75
buildings (freehold) 30.26 104.98 3.53 737.83
licensed properties-building
improvement 6.7 3.62 35.84
plant and equipment 32.26 720.81 67.97 5962.44
furniture and fixtures 7.1 68.9 10.85 404.87
Vehicles 0.5 14.5 5.96 41.04
office equipment 2.39 5.31 1.55 13.62
railway siding etc. 0.13 0.24
INTANGIBAL ASSETS
goodwill trademark 4.9
Trademarks 4.78 10.8
computer software 3.4 11.31 10.8
business and commercial right 2.02 65.97
Intangible assets under development

18. 3.Working Capital for the year
Working Capital 2015 2014 2013 2012 2011
current assets- current
liabilities 6309.3 3113.15 2201.31 973.53 576.74
Debt/Equity ratio of the company and its
implications
year 2015 2014 2013 2012 2011
debts/equity 0.00476 0.00632 0.00875 0.010503 0.01261

19. “HUMAN RESOURCE MANAGEMENT”
Organization Structure – to be represented via hierarchy

20. ANALYSIS OF JD’S AND JOB SATISFACTION POSTED BY THE COMPANY ONLINE
–JOB PORTALS –
JOB SATISFACTION-
Employee satisfaction is often measured by anonymous employee satisfaction
surveys administered periodically that gauge employee satisfaction. (I do not
support these.)
Employee satisfaction is looked at in areas such as:
• management,
• understanding of mission and vision,
• empowerment,
• teamwork,
• communication, and
• Coworker interaction.

21. The facets of employee satisfaction measured vary from company to company
JOB
DISCRIPTION:-
Many companies find it useful to create employee grade levels.
Creating employee grade levels assures equal compensation for the same work
across different departments and divisions.
If your company employs designers, sales people, programmers and accountants,
for instance, how do you make sure they receive equal compensation and
treatment when such different people have similar responsibility levels?
One good solution is employee grade levels.
Desired Profile:-
• Proficiency in written communication,
• Editing content and creating content.
Proficiency in MS Office,
• Excel and PowerPoint and Microsoft Share
• Point as well as in handling Intranets, Portals, Websites.
Good interpersonal skills.

22. Education:-
:UG -B.A - Any Specialization, Arts &Humanities, Communication, English,
Journalism
PG - M.A - Any Specialization, Arts & Humanities, Communication, English,
Journalism
Doctorate - Any Doctorate - Any Specialization, Doctorate Not Required
ORGANAZATION CULTURE:-
ITC is a board-managed professional company, committed to creating enduring
value for the nation and the shareholder.
It has a rich organizational culture rooted in its core values of respect for people
and belief in empowerment
ITC’s corporate strategies are :
 Create multiple drivers of growth by developing a portfolio of world class
businesses that best matches organizational capability with opportunities in
domestic and export markets.
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper,
Paperboards & Packaging, Agree Business and Information Technology.

23. • Benchmark the health of each business comprehensively across the
criteria of Market Standing, Profitability and Internal Vitality.
• Ensure that each of its businesses is world class and internationally
competitive.
• Enhance the competitive power of the portfolio through synergies derived
by blending the diverse skills and capabilities residing in ITC’s various
businesses.
• Create distributed leadership within the organization by nurturing talented
and focused top management teams for each of the businesses.