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BY
UVISE P.M.
SMBS
 ITC was established on August 24, 1910
 Indian public conglomerate company headquartered in Kolkata,
West Bengal, India
 ITC's gross revenue for FY2014-15 stood at Rs. 49964.82 crores.
 The number of permanent employees as on 31st March, 2015 was
25,787 and supports livelihoods of ~6 million people.
Name year
ImperialTobacco Company of India
Limited
1910
IndianTobacco Company Limited 1970
I.T.C. Limited 1974
ITC Ltd Sept 2001
 ‘ITC’ not have any Acronym
 FMCG
 Cigarettes
 Personal Care
 Foods
 Lifestyle Retailing
 Education & Stationery
 Safety Matches & Incense Sticks
 Paperboards, Paper & Packaging
 Hotels
 Agri Business
 Information Technology
 8.7% growth in the Cigarettes segment last
FY.
 legal cigarette industry in India continues to
be impacted by taxation and discriminatory
regulatory regime.
 Two rounds of sharp increase in Excise Duty in
July 2014 and February 2015.
 Revenue from sale of cigarettes is >60% of
gross revenue from sale of products and
services.
 ITC have got one of the finest distribution
channel in the country
Market Capitalization (Rs. cr)
ITC
Godfrey Phillip
VST
Kothari Product
Golden Tobacco
NTC Industries
RTCL
 ITC's major cigarette brands include Wills
Navy Cut, Gold Flake Kings, Gold Flake
Premium lights, Gold Flake Super Star,
Insignia, India Kings, Classic (Verve, Menthol,
Menthol Rush, Regular, Citric Twist, Mild &
Ultra Mild), 555, Silk Cut, Scissors, Capstan,
Berkeley, Bristol, Lucky Strike, Players, Flake
and Duke & Royal.
INTERMEDIARY DESCRIPTION
FACTORIES
C and F/DEPOTS
DISTRIBUTOR
WHOLE SALER
RETAILER
CUSTOMER
BANGLORE HOSUR
LAXMAN DASGOVARDAN PVT.LTD
ADAM’S STORES
HOWCKERS
(SCOOTERWALA)
BISMI STORES
ERNAKULAM
 Suppliers- wholesaler and distributor
 Wholesaler through the howckers
 Retailer approach wholesaler for goods
 Cash purchase are preferred by supplier.
 Profit is from the each product.
 Gets fresh stock almost every day.
 Margins are different for the packet sale and
single unit sale.
 Buy a pack for Rs 103 and sell it for 108 or 110.
 Buy goods from distributor and sell to retailers.
 At less price compared to retailer.
 Price rate of product is based on the ordering
quantity.
 Distributor vehicle directly serve the wholesaler.
 Cash and carry purchases.
 He buys the packet at Rs 100.50 and sell at 103
 Link b/w distributor and retailer.
 501 stores in muvattupuzha.
 They also sell safety matches and agarbathies.
 5 howckers under muvattupuzha division.
 Each person is allotted to each area.
 They are supply at demand and they don’t have any
target.
 They are receiving 0.8% commission from distributor
 Other than that he gets Rs. 3000/- per month as fuel
charges.
 They distribute most of the ITC product.
 They receive goods from C and F and forward
toward retailers and wholesalers
 They provide warehousing for goods.
 they have receiving certain percentage of sale
as benefit(refused to provide the information )
 They are not providing special schemes.
 They place order to depots in every week and
at demand.
 Average sale of cigarettes is 60,00000
 No targets are set by the company
 And have a sales team managed by
distributor.
 They carry and transfer the ITC products to
the distributor.
 Under direct control of ITC
 They receive goods from plants.
 Three depots in Kerala territory.
 Office is situated at Ernakulum.
 They transfer goods to distributor by road.
Itc   cigarette distribution channel
Itc   cigarette distribution channel

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Itc cigarette distribution channel

  • 2.  ITC was established on August 24, 1910  Indian public conglomerate company headquartered in Kolkata, West Bengal, India  ITC's gross revenue for FY2014-15 stood at Rs. 49964.82 crores.  The number of permanent employees as on 31st March, 2015 was 25,787 and supports livelihoods of ~6 million people.
  • 3. Name year ImperialTobacco Company of India Limited 1910 IndianTobacco Company Limited 1970 I.T.C. Limited 1974 ITC Ltd Sept 2001  ‘ITC’ not have any Acronym
  • 4.  FMCG  Cigarettes  Personal Care  Foods  Lifestyle Retailing  Education & Stationery  Safety Matches & Incense Sticks  Paperboards, Paper & Packaging  Hotels  Agri Business  Information Technology
  • 5.  8.7% growth in the Cigarettes segment last FY.  legal cigarette industry in India continues to be impacted by taxation and discriminatory regulatory regime.  Two rounds of sharp increase in Excise Duty in July 2014 and February 2015.
  • 6.  Revenue from sale of cigarettes is >60% of gross revenue from sale of products and services.  ITC have got one of the finest distribution channel in the country
  • 7. Market Capitalization (Rs. cr) ITC Godfrey Phillip VST Kothari Product Golden Tobacco NTC Industries RTCL
  • 8.  ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.
  • 9. INTERMEDIARY DESCRIPTION FACTORIES C and F/DEPOTS DISTRIBUTOR WHOLE SALER RETAILER CUSTOMER BANGLORE HOSUR LAXMAN DASGOVARDAN PVT.LTD ADAM’S STORES HOWCKERS (SCOOTERWALA) BISMI STORES ERNAKULAM
  • 10.  Suppliers- wholesaler and distributor  Wholesaler through the howckers  Retailer approach wholesaler for goods  Cash purchase are preferred by supplier.  Profit is from the each product.  Gets fresh stock almost every day.  Margins are different for the packet sale and single unit sale.  Buy a pack for Rs 103 and sell it for 108 or 110.
  • 11.  Buy goods from distributor and sell to retailers.  At less price compared to retailer.  Price rate of product is based on the ordering quantity.  Distributor vehicle directly serve the wholesaler.  Cash and carry purchases.  He buys the packet at Rs 100.50 and sell at 103
  • 12.  Link b/w distributor and retailer.  501 stores in muvattupuzha.  They also sell safety matches and agarbathies.  5 howckers under muvattupuzha division.  Each person is allotted to each area.  They are supply at demand and they don’t have any target.  They are receiving 0.8% commission from distributor  Other than that he gets Rs. 3000/- per month as fuel charges.
  • 13.  They distribute most of the ITC product.  They receive goods from C and F and forward toward retailers and wholesalers  They provide warehousing for goods.  they have receiving certain percentage of sale as benefit(refused to provide the information )  They are not providing special schemes.
  • 14.  They place order to depots in every week and at demand.  Average sale of cigarettes is 60,00000  No targets are set by the company  And have a sales team managed by distributor.
  • 15.  They carry and transfer the ITC products to the distributor.  Under direct control of ITC  They receive goods from plants.  Three depots in Kerala territory.  Office is situated at Ernakulum.  They transfer goods to distributor by road.