2. Market analyss on
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By
Naman Jain(2k20/umba/87)
Shubh Jain(2k20/umba/ 69)
Sarthak Bhaumik(2k20/umba/ 50)
Srishti kalra(2k20/umba/ 81)
3. ➜ITC was established on August 24, 1910 by the name Imperial Tobacco
Company of India Limited in Kolkata. Later, the name of the Company was
changed to India Tobacco Company Limited in 1970 and then to I.T.C.
Limited in 1974, as the company Indianized.
➜ITC began with Cigarette business and became market leader in the
same. But under the leadership of YC Deveshwar, the company then
forayed into other industies and became an FMCG giant and has diversified
into an array of businesses. The Company's multi-business portfolio
encompass a wide range of businesses - FMCG comprising Foods,
Personal Care, Cigarettes, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety Matches, Hotels, Paperboards &
Specialty Papers, Packaging, Agri-Business and Information Technology.
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ITC Background
5. ITC revenue and profit breakup
Revenue Profit
Cigarette Contributes
the biggest share in
ITC’S PROFIT, that is
84.76%, Which
amounts to 3453
crore rs. Out of
4074 profits of FY21
Q3. FMCG contributes
207 crore rs in
profit which is 92%
higher as compared
to last year Q3
results.
6. STAR PRODUCTS
FMCG Cigarette Hotels
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➜ Aashirwad
Brand(ITC's
Aashirwad is
6000cr rs brand
and NO.1 IN Aata
segment)
➜ Sunfeast(ITC's
Sunfeast is 4000cr
rs brand and NO.1
IN Cream Biscuit
segment.)
➜ITC is market leader with
almost 75% market share
in Indian cigarette sector
including brands like
Insignia, Classic, Gold
Flake, American Club,
Wills Navy Cut, Players,
Scissors, Capstan,
Berkeley, Bristol, Flake,
Silk Cut, India Kings, Duke
& Royal.
➜ITC Gurgugram
➜ITC grand chola in
Chennai
➜ITC Delhi
➜ITC MUMBAI
7. With such a strong Financials why
ITC’S Share prices are declining?
Cigarette business
though have greatest
margin but is seen as
SIN Business. The
government
interfere on regular
basis in terms of Taxes
to be charged and
Marketing strategy.
Giving an overall
restricted environment
for the business to
take action upon
Because of the tight
measures of the
Government, FII’s are
also disinvesting from
the company as
we can observe that
the FII’s holding
reduced from 18
percent to 13 percent
between the period of
2018-20
ESG Theme which is
now popular amongst
the investors which
translates to focus on
ENVIRONMENT,
SOCIAL AND
GOVERNANCE
improvisors. Because
of this, the investors
want to invest
in companies that are
ESG Compliance.
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8. 8
Stock trend of ITC
(Past 5 Years):
ITC’s performance has been volatile but as per the Stock price trends shown
in the above figure, the company has been growing from 2015 onwards.
In June 2015, Govt demanded that cigarette packs must have 85% of the
surface area of packaging covered with big graphics on health warnings.
This led to a fall in sales of cigarette packs which resulted in sluggish growth
during Q3 and Q4 of FY 15-16. This shows the huge dependency of ITC on
cigarette business. Hence the company is fully determined to strengthen its
FMCG and Hotel business.
9. Demerger of ITC
Demerger reports have impacted this company's
share price considerably
After ITC Demerger, there would emerge as many as
3 companies, this is all rumours as of now as no ITC
official have stated this info in confidence in any
press meet:
➜ 1) Hotels
➜ 2) FMCG
➜ 3) Infotech
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10. Conclusion
The company has a steady revenue flow from its cigarette
business. Moreover, ITC with its brand like
Sunfeast, Aashirwad, Yippee and more have become a
household product everywhere in the country.
Moreover, the firm’s paper and packaging business is also
great success with its reach by having in house
brand like CLASSMATE. Definitely the company have a
great potential to grow in the future.
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