- ITC was incorporated in 1910 as Imperial Tobacco Company of India and later changed its name to ITC Limited. - ITC is one of India's largest multi-business conglomerates with a market capitalization of over US $50 billion across businesses like FMCG, hotels, packaging, and IT. - ITC Hotels, launched in 1975, is India's leading luxury hotel chain with over 100 hotels across 70 locations known for excellence in accommodation, cuisine, environment, and safety.

1. ITC Limited and ITC Hotels Limited
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2. *
 ITC was incorporated on August 24, 1910 under the name Imperial
Tobacco Company of India Limited.
 As the Company's ownership progressively Indianite, the name of the
Company was changed from Imperial Tobacco Company of India Limited
to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in
1974.
 In recognition of the Company's multi-business portfolio encompassing a
wide range of businesses .
 ITC is one of India's foremost multi-business enterprises with a market
capitalization of US $ 50 billion and Gross Sales Value of US $ 10 billion.

3. *
 ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the
World's Most Reputable Companies by Forbes magazine
 ITC also features as one of world's largest sustainable value creator in
the consumer goods industry in a study by the Boston Consulting Group.
 The Company is among India's '10 Most Valuable (Company) Brands',
according to a study conducted by Brand Finance and published by the
Economic Times
 ITC’s has a robust portfolio of traditional and greenfield businesses
encompassing Fast Moving Consumer Goods (FMCG), Hotels, Paperboards
& Specialty Papers, Packaging, Agri-Business, and Information Technology

4. *
 ITC-Welcomgroup, with its world-class hoteliering capability and strong
positioning in chosen consumer segments consolidated its leadership in
the locations where present.
 Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has
become synonymous with Indian hospitality.
 With more than 100 hotels in over 70 destinations, ITC Hotels has set
new standards of excellence in the hotel industry in Accommodation,
Cuisine, Environment and Guest Safety.
 One of India's Pre-eminent Hospitality chains
 Pioneer in Responsible Luxury
 Globally recognized for its branded cuisines

5. *
 ITC Hotels awarded as the best chain for 'Eco Responsible' practices in the
year 2004.
 ITC Sonar, Kolkata has been declared as one of the best hotels in the world
by the Association of British Travel Agents (ABTA) in the April 2004 issue of
its magazine 'Business & Travel'. ABTA also rated Dublin amongst the top 20
bars and Bukhara the best restaurant in Asia and the finest Indian restaurant
in the world.
 Favorable market conditions, together with competitively superior product
and service offerings, Company earn Gross Income of Rs.168.72 crs for the
year ended 31st March, 2004.
 In view of the improved results and the positive outlook for the near and
the long term, your Directors are pleased to recommend a dividend of Rs.
2/- per equity share for the year ended 31st March, 2004.
 The ITC-Welcomgroup hotel chain's foreign exchange earnings for the year
2003-2004 amounted to Rs. 265.21 crores

6. *
 IHL was subsidiaries of ITC Ltd and both were in the business of owning
or operating & managing five star deluxe hotel properties.
 80 per cent of the capital employed in the ITC group hotels business
was included in ITC's balance-sheet
 The merger would lead better alignment of investment and incomes
which improve fiscal efficiencies.
 Lower operating costs and attract investors to ITC's hotels business.
 By merging, ITC would be bringing under one roof.
 Enhance EPS for ITC

7. *
IHL shareholders will get three shares of ITC for every 25 shares
held by them in ITC Hotels.
ITC Hotels Limited had 3,02,16,492 Equity Shares of Rs.10/- each
back in 2004
ITC Limited had 24,76,78,851 Ordinary Shares of Rs. 10./- each, fully
paid back in 2004
Basis the book value of 247,67,88,510/- for ITC limited and book
value of 30,21,64,920/- for ITC Hotels Limited. Companies had
agreed for the above mentioned exchange ratio.

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ITC Avg Price
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SUMMARY OUTPUT
Regression Statistics
Multiple R 0.575057652
R Square 0.330691303
Adjusted R Square 0.314755382
Standard Error 0.934275825
Observations 44
ANOVA
df SS MS F Significance F
Regression 1 18.11322653 18.11322653 20.75131372 0.000044465
Residual 42 36.66059531 0.872871317
Total 43 54.77382185
Coefficients Standard Error t Stat P-value Lower 95% Upper 95% Lower 95.0% Upper 95.0%
Intercept 0.101301841 0.14375444 0.704686693 0.484894774 -0.188806364 0.391410045 -0.188806364 0.391410045
X Variable 1 0.919794047 0.201914634 4.555360987 4.44654E-05 0.512313818 1.327274275 0.512313818 1.327274275

10. *
The Merger had brought a change in operating costs and had
attracted many petty investors in their Hotel business.
ITC had brought all its hotel business under one roof
The Merger has brought about better alignment of investment and
incomes which improve fiscal efficiencies.
It has also enhanced the Balance sheet size, EPS and Market Cap of
the firm.