ITC was incorporated in 1910 as Imperial Tobacco Company of India Ltd. and over the decades diversified into various business segments like hotels, paperboards, FMCG foods etc. to become one of India's most valuable corporations. Some key events include changing its name to India Tobacco Co. Ltd. in 1970, converting to a public limited company in 1954, launching refined mustard oil under Real Gold brand in 1990, starting agarbatti brands in 2003-2005, and launching shampoo and fairness cream brands in 2009-2010. ITC aims to sustain its position through world class performance and delivering superior stakeholder value across its business portfolio including cigarettes, hotels, agri, paperboards and FMCG foods.

1. BY:
POULAMI MITRA

2. 1910 -On 24th August the
Company was incorporated as a
Private Limited Company under
the name, Imperial Tobacco Co.
of India Ltd.
1970-
The name of
the Company
1953-The was changed
Compleme
ntary
COMPA from the
Imperial
Lithographi NY’S Tobacco Co.
c printing
business of
HISTORY of India Ltd.,
to India
Printers Tobacco Co.
(India) Ltd. Ltd., in May.
1954- The Company was
converted into a Public Limited
Company on 27th October.

3. 1990
- Refined mustard oil under the
brand name "REAL GOLD" was
introduced in the market.
1994-ITC
classic
finance
launched
mutual
funds ITC COMPA 2001- ITC
started
Classic NY’S Diversification.
Finance had
set up a HISTORY
Company
to enable
operation
in real
estate. 2003-ITC unveils new brand of
agarbattis.

4. 2004-ITC unveils Sunfeast
biscuits in Chennai, readymeal
2005-ITC Aashirwad brand.
unveils new
`5-in-1'
agarbattis
-ITC unveils 2010- ITC
`Expressions has forayed
Regalia' COMPA into the Rs.
-ITC e- 1,700-crore
Choupal gets NY’S fairness
Development HISTORY cream
Gateway market.
Award
-ITC unveils
Candyman
Cofitino 2009- ITC launches Vivel Ultra
Pro anti-dandruff shampoo in
Kolkata.
- ITC’s unique Social Forestry
project bags Carbon Credits for
poor tribals.

5. Vision :
Values :
�Sustain ITC’s position as
ITC is a demand-driven one of the India’s most
organization responsive to valuable corporations through
national development the world class performance,
objectives and programmes. creating growing value for the
It endeavour's to deliver Indian economy and the
relevant and cost-effective companies� stakeholders.�
services for sustainable
development ends. Its staff is
committed to providing
Mission:
information and advice
according to criteria implicit
To enhance the wealth
in the United Nations
generating capability of the
Charter: the highest
enterprise with the globalizing
standards of efficiency,
environment, delivering
competence, integrity and
superior and sustainable
neutrality.
stakeholder value.

6. ITC - Business Portfolio
ITC
FMCG: Agri Business Paperboards
Cigarettes Hotels Leaf Tobacco Paper &
Other FMCG Agri Packaging
Commodities

7. Competition
Competitors Of ITC
Godfrey Philips
Golden Tobacco.
RTCL Ltd.
VTC Industrial Ltd.
Kothari Products.
Marico
Hindusthan Uniliver Ltd.

8. Sustain multiple drivers of growth, matching internal
capabilities with emerging market opportunities
Pursue World class competitiveness in all businesses and
across the entire value chain
Best-in-class in terms of:
Internal Vitality
Market Standing
Profitability
Strategy of Organization and Governance processes
geared to manage multiple businesses
Blend core competencies and leverage ITC umbrella
strengths to create new avenues of growth

9. FMCG - Cigarettes

10. Cigarettes: Growth potential
Cigarettes account for only 14% of tobacco consumed in India
unlike world pattern of 85% due to prolonged punitive taxation
Cigarettes (14% of tobacco consumption) contribute nearly
85% of Revenue to the Exchequer from tobacco sector
Of the 58% of adult Indian males who consume tobacco, barely
15% can afford cigarettes
Biri : Cigarettes ratio = 10 : 1
Annual per capita adult cigarette consumption in India is one
tenth world average : 117
Future growth depends on relative rates of growth of per capita
income and moderation in taxes

11. Hotels & Tourism

12. ITC’s hotel business
 One of three chains in India
 Strategy to establish presence in key business locations to
complete the chain achieved in end 2004
 Revenue leadership in most locations
 Leverage unique service proposition and international
alliance with Sheraton
 Large tax advantages on investments on ITC Balance
Sheet
 Attractive medium / long term prospects

13. Amalgamation
 Board meeting on 25th August 2004 approved
scheme of amalgamation for merger of ITC Hotels
and Ansal Hotels with ITC
 Merger ratios:
 3 shares of ITC for 25 shares of ITC Hotels
 1 share of ITC for every 150 shares of Ansal Hotels
 Merger effective from 1st April 2004
 Post-Merger, ITC’s hotel business :
 Leading hotel chain in terms of pre-tax profits
 Highest EBITDA margin

14. Paperboards, Paper
&
Packaging

15. ITC’s Paperboards Business
 Market leader in growth segment - value added coated
boards
 Internationally competitive quality and cost
 Social farm forestry in mill command area to improve
access to cost effective fiber & to attain self-
sufficiency
Biotech research based high yielding Clones –
effectiveness tested in about 30,000 hectares
 Pulping capacity enhanced by 100,000 MT to
strengthen competitiveness

16. ITC’s Paper & Packaging
businesses
 Capacity expansion in recycled segment
Acquisition of Kovai Unit in March 2004: +65000 TPA
Another 75000 TPA commissioned in Jan. ‘05
 ITC’s packaging SBU -India’s largest converter
of paperboards into high quality printed
packaging
Leading supplier to Indian FMCG segment

17. Indian paperboards market
 Annual paperboards demand - 0.90 million
tonnes
 Fragmented capacity & obsolete technology
 Indian paperboards market growing at 6 -
7% p.a.
 Value Added Coated board - the fastest
growing segment (20% p.a.) in India driven
by the growing sophistication of the
consumer

18. Agri Businesses
- Leaf Tobacco
- Agri Commodities

19. ITC’s Agri Commodity Exports
 Farm linkages in 14 states covering Soya,
Wheat, Rice, Marine products, Edible nuts,
Coffee
 Unique CRM programme in commodity
exports
 Leveraging IT for the transformational ‘e-
Choupal’ initiative
 Rural India’s largest Internet-based intervention
 Over 30000 villages linked through 5200 e-Choupals
servicing over 3 million farmers
 First rural mall christened ‘Choupal Sagar’ opened at
Sehore,M.P
 Distinctive sourcing capability for ITC’s Foods
business

20. e-Choupal - Recognition
 World Business Award – ICC-UNDP
 Enterprise Business Transformation
Award -Wharton Infosys
 Harvard Business School – case study
 Showcased at ICT4D, Geneva – UN

21. Other FMCG Products

22. FMCG Business Initiatives
Branded Packaged Foods
 Leverages:
Unique Agri sourcing skills
ITC Welcomgroup’s specialist cuisine & bakery knowledge
FMCG distribution synergies
ITC Group R&D Centre, Bangalore
4 chosen categories:
Staples
Aashirvaad Atta & Salt
Snack Foods
Sunfeast Biscuits, Pasta
Confectionery
Candyman, mint-o
Ready to Eat
Kitchens of India, Aashirvaad Ready Meals

23. FORWARD
BACKWARD
INTEGRATION
INTEGRATION
ITC’s Packaging & printing
business Division, was set up ITC LTD, the tobacco cum
in 1925 as a strategic hotels major which has been
backward integration for fast transforming itself into a
ITC’s Cigarettes business. It is FMCG company, targets
today India’s most sophisti- INTEGRA students by customizing
cated packaging house. TION notebooks for schools under
State-of-the-art technol-ogy, ‘classmate’ brand name and
world-class quality and a this is a part of he companies
highly skilled and dedicated diversification plans to foray
team have combined to into the other sectors.
position ITC as the first-
choice supplier of high value
added packaging.

24. A push strategy involves ‘ pushing’ the product through distribution
channels to the final customers.
ITC adopted this strategy to increase its sell and awareness & to gain
favoritism from the kirana owners. In anticipation of the mystery shoppers,
the Kirana owners kept offering ITC cigarettes to all the customers first and
only upon request & insistence they sold the requested brand. ITC did this
by putting up posters in the Kiranas & used the concept of mystery shopping
in case of tobacco industry. And hence they requested the shop owners to
offer
ITC cigarettes first to every customer & if he sold
A particular target he will be qualified to enter a lucky draw and hence
bumper prize.
PUSH
STRATEGY(PRPMOTIONAL
STRATEGY)

25. PULL STRATEGY
( PROMOTIONAL STRATEGY)
The pull strategy is where the producer directs its marketing
activities(primarily advertising & consumer promotion) towards final
consumer to induce they to buy the product. Under this strategy the
consumer demand’ pulls’ the product through the channels.
The sunfeast ready to eat pasta has established its presence with 6% in
volumes of the branded noodles market. This was achieved by excessive
advertising which pulls the product through the distribution channels. The
strategy adopted is to spend more money on consumer advertising
designed to build brand awareness so that shoppers will ask for the
product.

26. FIRST MOVER LATE MOVERS
The first company to Late movers are those who are
manufacture and sell a new able to imitate the technological
product or service is called advance of others, keep risk
First or Prime mover. down by waiting until the new
ITC-Welcome Group market is established and take
pioneered a holistic concept advantage of the first movers
of ‘branded accommodation’ inclination to ignore market.
in the hospitality industry it ITC entered the biscuit business
was the first to launch the very late when to measure
powerful idea of a ‘ Hotel players like Britannia & Parle
within a Hotel’ by were busy biting of chunks of
segmenting and branding the the national market among
hotel services. It was also the themselves. ITC dug into market
first to brand its cuisine. research. Findings revealed that
the category had gaps and
hence ITC launched sunfeast
with 6 ranges.

27. Growth strategy
Mergers & Amalgamation:
 ITC has decided to consolidate its hotels business and has accordingly proposed to
amalgamate its wholly owned ITC Hotels Ltd. And others hotels subsidiaries with the main
company.
 ITC has already merged Bhadrachalam Paperboard Ltd with the main company to
position itself as a leader in the paperboard market.
Strategic Alliance:
 ITC has made a significant move in its greeting card business by entering into a strategic
alliance with Maple Leaf. Hence Maple Leaf make exclusive pp-up Cards for ITC and hence
ITC re-launched under Expressions Brand name.
Joint Venture:
 In 1985, ITC set up Suriya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture.
Acquisition:
 In 1990. ITC acquired Tribeni Tissue ltd..
 TTD was merged with Bhadrachalam Paperboard Ltd to the Paperboards & specialty
paper division in Nov 2002.

28. Growth
30.00% 27%
25.00%
21.52%
20.05%
20.00%
16.29% 15.93%
15.00%
Growth
10.00%
5.00%
0.00%
PaperBoards&Packg FMCG(Others) Agribusiness Hotel FMG(Cigarettes)
Revenue structure
18%
50% Paper Board Pckg
21% FMCG(others)
Agribusiness
25% Hotels
FMCG(Cigarettes)
4%

29. Segment wise Growth
Net revenue from FMCG as on whole increased by 17.72 % to Rs
3,605.72 crore from Rs 3063.02 crore of which Cigarettes net revenue
was up by 15.93% to Rs 2550.11 crore from Rs 2199.69 crore in 2011.
Net revenue from Hotels segment improved by20.05% to Rs 208.94
crore from Rs 174.04 crore in 2011.
Agri Business net revenue showed increment of 21.52% to Rs
1249.62 crore from Rs 1028.28 crore in 2011 .
Revenue from the Paperboard, paper & packaging segment
increased by 16.29% to Rs 919.29 crore from Rs 790.38 crore in 2011.