This document provides an overview of ITC Limited, an Indian conglomerate. In 3 sentences: ITC was formed in 1910 as Imperial Tobacco Company of India and has since diversified into various business areas including hotels, paper, food, and IT. It has a large portfolio of brands and leads the market in cigarettes, paperboards, and agri-business. Key strategies that have contributed to ITC's success include a large distribution network, product differentiation, cost control, diversification, extensive advertising, regular new product introductions, innovation, and e-Choupal, an electronic marketplace for farmers.

1. FIROS FEBIN
1ST SEMESTER
MBA(BU)
COMMUNICATION
…ENDURING VALUES

2. Chairperson : Y C Deveshwar
Directors : S S H Rehman, Nakul Anand,
A Singh, PV Dhobale,
K Vaidyanath, K N Grant,
A Baijal, B Vijayaraghavan
J P Daly, H G Powell,
P B Ramanujan, B Sen,
R S Tarneja,
CEO, Yogesh Chander Deveshwar
founder: W.D. & H.O. Wills

3. CURRENT SCENARIO

4.  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.
 Core values: ITC’s core values are aimed at developing a customer focused,
high performance organization which creates values for its stakeholders.

5. HISTORY
 ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India
Limited.
 The earlier decades of the company's activities centered mainly around tobacco products.
In the 1970s, it diversified into non-tobacco businesses.
 1974 – The Company's ownership progressively Indianised, and the name of the Company
was changed to ITC Limited (Indian tobacco company)
 1975 – The Co. launched its HOTEL BUSINESS which was named ‘ITC-Welcomgroup
Hotel Chola’.
• 1979 – ITC entered the Paperboards Business by promoting. Bhadrachalam
Papaerboards Limited, which today has become the market leader in India.

6.  1985 – Surya Nepal Pvt. Ltd.
 1990 - International Business Division for export of agri-commodities
 2000 – Life style retailing business with Wills sport range of international quality relaxed wear for
men and women
 2000 – ITC InfoTech Ltd.
 2001 – ITC entered into food business with launch of ‘kitchen of India’ ready to eat Indian gourmet
dishes.
 2002 – Safety matches.
 2003- Agarbattis.
 2005 – Essenza di wills.
 2010, ITC launched its handrolled cigar - Armenteros - in the Indian market
 The company began online sales in 2014.

7. WHERE COMPANY STANDS?
 ITC features on the Forbes Global 2000 rankings for 2012 at position 841. In the same
rankings, the company's market value placed it as the 184th largest company in the world.
 In 2013, ITC was ranked the third most admired company in India by Fortune.
 ITC is rated among the World's Best Big Companies, Asia's'Fab 50' and the World's Most
Reputable Companies by Forbes magazine.
 In 2011, all of ITC’s super premium luxury hotels were accorded LEED Platinum
certification, making ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’.

8. ITC PRODUCTS
FMCG-CIGARETTES
 Market leader in India.
 Highly portfolio of brands includes Insignia, India kings,
Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan,
Berkeley, Bristol and Flake.

9. PACKAGED FOODS
Aashirvaad Bingo Candyman
Kitchen of india SunfeastMint-O

10. EDUCATION AND STATIONERY
Classmate Paperkraft Colour Crew

11. PERSONAL CARE
Engage
Essenza Di Wills
Vivel Superia
Fiama Di Wills

12. INTENSE STICKS SAFETY MATCHES
Mangaldeep AIM
LIFESTYLE RETAILING

13. HOTELS AND TOURISM

16. SEGMENT DOMINANCE
CIGARETTES 70%
PAPERBOARD
&PACKAGING
Packaging board –
No.1 in Asia
AGRI-BUSINESS one of the largest
exporters from India
HOTELS ITC Group ranks No.2
FMCG(OTHERS) 20% share of greeting
cards market,
”Aashrivaad” atta is
No.1 in branded
segment
MARKET STAND OF ITC PRODUCT

17. Major strategies followed

18.  DISTRIBUTION NETWORK
• Huge distribution network due to its tobacco
business.
• Today, ITC‟s Bingo and Sunfeast are available at
nearly 1.8 million outlets whereas Parle is available at
only 1.5 million outlets.

19. Market differentiation
 In Biscuits also, ITC launched differentiated products in
each and every segment. For e.g. it introduced an Orange
Marie, a butterscotch cream biscuit, chilli flakes in a biscuit
and even honey flavor under the Sunfeast brand.
 In March 2005, ITC Foods launched Sunfeast Pasta, a
whole wheat based product targeted at children. It was
expected to compete with products like Nestle‟s Maggie
noodles. With this strategy ITC built for itself new markets.

20. Cost control strategy
 ITC realized that they have to offer products at a
price which is either equal or less than what the
competitors are offering.
 ITC‟s printing and packaging business provided
high-quality, cost-effective, and innovative
packaging.
 ITC also enjoyed cost advantages over its
competitors owing to its electronic procurement
system called e-Choupal.

21. Diversification of products
 Bingo, ITC has come up with 21 flavors in comparison to its
competitor „Lays‟ of „Frito Lay‟ which has only 4 major flavors.
Extensive advertising
 They hired the best professionals and the best ambassadors in
the country to make their products famous.
 The tagline "Jab Laila ko karna tha impress to majnu ne
khayi mint o fresh" has stood the test of times and is still widely
known and remembered.
 10 to 15 spots per channel per day on youth channels such as
MTV and Star World, mass Hindi channels like Zee and Star TV,
and news 19
channels. It also had around 20 spots on a variety of radio
channels and advertised in most leading national dailies.
 Top-30 cities, over 1,000 outdoor hoardings advertised the
product.
 ITC spent close to Rs 100 crore on marketing.

22. Regular introduction of new products
 ITC has been expanding its distribution network aggressively
and also their product range.
 In biscuits and wafers range, it is launching new products or
flavors week after week.
Innovation
 ITC was innovative in identifying the market or
niche for all its products.

23. E-CHOUPAL
• Choupal is a Hindi word which means village meeting
place, and ‘E’ here stands for electronic so it is a village
meeting place on a electronic platform.
• It is a virtual market place where vendors and
customers come together to do transactions.
• It’s a place where farmers can transact directly with a
processor and realize better price for their products.

24.  Started in the year 2000
 Target Area so far 38,000 villages, 9 states
 Wholly owned by ITC

25. ADVANTAGES
 No hierarchy of brokers.
 Internet is used as a low cost medium of communication providing latest
information.
 E-choupals are set up by ITC with solar power backup and VSAT
connectivity. The equipment cost for the e-choupal is borne by ITC.
 Allow farmers to compare global and local market price (mandi)
 To farmers they give access to operational information developed by ITC
experts, pertaining to cropping, seeds, fertilizers and so on.

26. SOMETIMES, NOT TAKING RISK IS
THE BIGGEST RISK
… YC Deveshwar
… Y C Deveshwar