How ITC successfully diversified its portfolio. Government is putting stringent law on tobacco and cigarettes related product, so how ITC is expanding thier product portfolio for future is explained in this ppt.

1. Case Study of
ITC
HAD DIVERSIFICATION REALLY PAID OFF?
Submitted by:
 Ruhaan M. A-20
 Srujan M. A-29
 Susheel S. A-32
 Trushna J. A-34
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2. CONTENTS
 ITC History
 Segments of ITC
 FMCG
• Cigarettes
• Other
 Hotels
 Paper, Paperboards & Packaging
 Agri Business
 BCG matrix for ITC
 Conclusion
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3. ITC HISTORY
 ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited
 Imperial Tobacco Company became Indian Tobacco Company in 1970
1925
• Packaging and Printing: Backward Integration
1975
• Entry into the Hospitality Sector: Company launched its Hotels business with the
acquisition of a hotel in Chennai
1990
• Paperboards & Specialty Papers: Consolidation and Expansion
1990
• Agri Business: Strengthening Farmer Linkages
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4. ITC HISTORY
2000
• Lifestyle Retailing: Premium Offerings, ITC entered the Lifestyle Retailing
business with the Wills Sport
2000
• Information Technology: Business Friendly Solutions
2002
• Education & Stationery Products: Offering the Greenest products , ITC
launched range of notebooks under brand Paper Kraft
2005
• Personal Care Products: Expert Solutions for Discerning Consumers
2010
• Expanding the Tobacco Portfolio: ITC launched its hand rolled
cigar, armenteros in the Indian market
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5. TWO DATELINES
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6. SEGMENTS OF ITC
ITC
FMCG
CIGARETTES OTHER
AGRI-
BUSINESS
HOTELS
PAPERS &
PACKAGING
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7. FMCG: CIGARETTES
 Graph showing slight reduction in revenue generated from cigarette's which reduced from 64% to 60%
over 5 year period
Cigarettes
60%FMCG
13%
Agri
Business
13%
Hotel
3%
Paper & Packaging
11%
2010
Cigarettes
64%
FMCG
6%
Agri
Business
15%
Hotel
4%
Paper &
Packaging
11%
2006
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8. FMCG: ITC FMCG (OTHER) HAS NEGATIVE
EBITDA AS COMPARED TO COMPETITORS
-20
-10
0
10
20
30
40
1 2 3
EBITDA MARGIN
ITC (Other) Britannia HUL Palre P & G
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
Market Share of ITC Compared
to Competitors %
ITC (Other) Britannia HUL Parle P & G
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9. HOTELS
0
10
20
30
40
50
60
70
80
90
100
2008 2009 2010
EBITDA MARGIN (%)
ITC EHI Ltd Hotel Leela Indian Hotel
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
MARKET SHARE OF ITC (%)
ITC EHI Ltd Hotel Leela Indian Hotel
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10. PAPER, PAPERBOARDS & PACKAGING
0
5
10
15
20
25
30
35
2008 2009 2010
EBITDA MARGIN (%)
ITC Ballarpur Abdra Paper West Paper JK Paper
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2008 2009 2010
MARKET SHARE OF ITC PAPER
(%)
ITC Ballarpur Abdra Paper West Paper JK Paper
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11. BCG FOR ITC
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 Agro Business
 Paper, Paperboard
and Packaging
 FMCG (Others)
 Hotels
 Cigarettes  ITC Infotech*
* From ITC Website
G
R
O
T
H
MATKET SHARE

12. CONCLUSION
 In ITC, revenue share of Cigarettes is reducing since last 5 years which comes down from
64% to 60% which is slightly positive sign
 ITC is successful in using some of its STRATEGIC ASSETS in Agro business and Paper
Industry, which is benefited ITC so this diversification helped company to reduce
dependency on Cigarettes to certain extend
 In FMCG, ITC is not able to become market leader, because in FMCG HUL with highest
market share has core competency in this business
 In Hotel, since ITC don’t have ALL STRATEGIC ASSETS, it is struggling to gain market
share since last 5 years
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13. Thank You….
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