2. Introduction
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● ITC LTD incorporated on August 24, 1910 under the name “Imperial Tobacco”.
● A leased office on Radha Bazar Lane, Kolkata, made an humble beginning of India’s biggest
conglomerate.
● 1925: Packaging and Printing: Backward Integration
● 1975: Entry into the Hospitality Sector - A 'Welcome' Move, with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'
● 1979: Paperboards & Specialty Papers - Development of a Backward Area by promoting ITC
Bhadrachalam Paperboards Limited.
● 1985: Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
● 1990: Paperboards & Specialty Papers - Consolidation and Expansion
● 1990: Agri Business
3. ITC’s Business Portfolio
FMCG
Paperboards, Paper
& Packaging
Hotels
Agri
Business
Information
Technology
Cigarettes Personal Care
Foods
Education &
Stationery
Safety Matches & Incense
Sticks
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4. The Vision and Mission
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The ITC vision
Sustain ITC’s position as one of India’s most valuable corporations through
world class performance, creating growing value for Indian economy and the
company’s stakeholders.
The ITC mission
To enhance the wealth generating capability of the enterprise in a globalising
environment, delivering superior and sustainable stakeholder value.
5. FMCG- Fast Moving Consumer Goods
Education &
Stationery
Safety Matches & Incense
Sticks
Cigarettes Foods
Personal Care
6. ITC’s Cigarette Business:
Market leadership: Leadership across all segments - geographic & price
● State-of-the-art technology and world-class products
● New variants introduced for catering to continuously evolving consumer
preferences.
● Innovative and differentiated offerings such as Classic Rich & Smooth, Gold Flake
Neo, Gold Flake Luxury Filter, Gold Flake Indie Mint, Wills Navy Cut Deluxe,
Capstan Fresh and Flake (5’s pack)
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8. Personal Care Products:
❖ The Business continues to enhance
market standing in the Fragrance and
liquids (handwash & bodywash)
categories.
❖ ‘Engage’ range of deodorants continue to
strengthen its market standing.
❖ Pocket Perfumes range augmented with
the launch of unique dual fragrance.
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9. Education & Stationery Products Business:
▪ Classmate, Saathi and Paperkraft brands continue to enhance market standing.
▪ Industry growth driven by increasing literacy and enhanced scale of government and public-private
education initiatives.
▪ Classmate is the Market leader in Notebooks segment.
− Deepening consumer engagement through Classmateshop.com & My Classmate app to
deliver customised notebooks
− A dedicated manufacturing facility for notebooks, equipped with machinery was commissioned
at Gollapudi, Andhra Pradesh
My Classmate APP
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10. • ‘Mangaldeep’ continues to fortify its market
standing in the Agarbatti and Dhoop segment.
• ‘AIM’ continues to be the largest selling safety
matches brand in India.
• Mangaldeep App caters to the everyday
devotional needs of consumers.
• The Business launched several innovative
offerings incl.-‘Mangaldeep Low Smoke
Agarbattis’ (80% lesser smoke)
Incense sticks (Agarbattis) & Safety Matches:
8 lakh+ downloads; 37,000+ active users
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11. Integrated Consumer goods Manufacturing and Logistics facilities
▪ 9 ICML’s were set up in recent years
▪ The manufacturing capability of ICML Trichy was augmented with the
commissioning of state-of-the-art lines for Finger Snacks, Atta and Biscuits
▪ Capacity Utilisation being progressively ramped up.
▪ Steady progress is being made towards development of other such facilities
which are expected to be commissioned in the near to medium term.
Kapurthala, Punjab
Trichy, Tamil Nadu
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12. FMCG Promotion & Advertisements:
Dark Fantasy Choco Fills
Connecting with consumer empathy towards ‘Local’ brands
Bingo! Tedhe Medhe
Sunfeast YiPPee!
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13. Purpose-led and Relevant Communication:
Sunfeast Mom’s Magic –
Saluting Mothers
YiPPee!
Better World
Savlon Handwash
Engage Deodorants
14. Hotels & Tourism industry
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● ITC hotels is associated with Tourism and Hospitality industry and deals with resorts and
hotels,founded in the year 1975
● Best employers in Asia in the sector of hospitality
● Product
○ One of the best luxurious and greenest hotel chains in the global market.
○ Employees in a hotel business are one of their main assets
● Place
○ It is ranked second as the largest chain that includes more than one hundred hotels spread
over India
○ ITC hotels are synonymous with welcome and hospitality
● Price
○ ITC Hotels have adopted a premium pricing strategy.
○ It ‘s policy is value-added
● Promotions
○ It has an extensive collection of art from fifty well-known artists like Tyeb Mehta and M.F.
Hussein.
○ It has a scheme titled Executive Travel Value Plan or ETVP that offers special and discounted
rates to executives while travelling
○ ITC Hotels offer several incentives to its customers to maintain their loyalty.
15. Hotels Business
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▪ Leader in Profitability
▪ The Chain: 108 properties over 70 locations
− 4 Brands: ‘ITC Hotels’ in the Luxury segment,
‘Welcomehotels’ in the Upper-Upscale
segment, ‘Fortune’ in the Mid-market to
Upscale segment and ‘WelcomHeritage’ in the
Leisure & Heritage segment
▪ Enhancing Business scale by adopting ‘asset-
right’ strategy - aimed at expanding the inventory
of managed properties across India.
16. ITC Hotels drop and collect laundry
services
Ensuring highest levels of Hygiene and Safety of guests
‘WeAssure’ – best hygiene practices
● Lavanderia—a contact light laundry service
● The SAFE Car
● International Travel House (ITH),
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17. ITC Hotels: Trailblazer in Green Hoteliering
“Responsible Luxury” ethos woven into the Brand Identity
All ITC Luxury Hotels LEED Platinum
certified
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18. Indian Paperboard market
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▪ India’s largest, technologically advanced and most eco-friendly Paper
Paperboards Business, caters to a wide spectrum of specialty paper requirements.
▪ Forest Stewardship Council®-Forest Management (FSC-FM) certification.
▪ ITC’s pulpwood is largely sourced from renewable plantations under its Social and
Farm Forestry Programme, which provides tribals and farmers livelihood
opportunities by helping them convert wastelands into commercial plantations.
▪ There are four types of marketing segments:
•Domestic
•Interdivisional
•Corporate
•International
19. ITC’s Paperboards, Paper & Packaging businesses
▪ Market leader in Value-Added Paperboards (VAP) segment
▪ World-class technology & quality
– India’s first Bleached Chemical Thermo Mechanical Pulp (BCTMP) mill, reduced
dependence on
-Imported pulp and source of competitive
advantage.
VAP
Machine
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▪ ITC’s packaging SBU - India’s largest converter of Paperboard into high quality
packaging
– Provides superior packaging solutions to cigarettes and other FMCG businesses
– One-stop-shop for packaging solutions
20. 42
Sustainable Packaging Solutions – Plastic Substitution
Biodegradable boards Recyclable boards
Completely Biodegradable under
composting conditions
Barrier against liquids/grease etc. at
par with traditional plastic coated
boards
Omega Bev : Exclusively for
paper cups
Completely recyclable in
existing
standard recycling conditions
Excellent oil and grease
resistant
properties
Filo Serve : Food serving
applications
Omega Barr : Deep freeze
applications
Filo Pack : Food delivery
application
21. Agri Business
• Leading Agribusiness player in India
• Pioneer in rural transformation
• No. 1 in Leaf Tobacco
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22. ITC’s Agri Commodity Business
▪ Distinctive sourcing capability for ITC’s Branded Packaged Foods
Businesses
− Identity-preserved superior quality wheat for ‘Aashirvaad’ atta
− Superior quality Indian fruit pulp for ‘B Natural’ range of juices
− Sourcing support for ‘Aashirvaad’ and ‘ITC Master Chef’ spices
− Scale up in milk procurement for ‘Aashirvaad Svasti’ range dairy products
▪ Farm linkages in 17 States covering Wheat, Oilseeds, Coffee, Spices, Milk etc.
▪ Leveraging Information Technology for the transformational ‘e-Choupal’
initiative
– Rural India’s largest Internet-based intervention with over 35000 villages
linked through around 6100 e-Choupals servicing about 4 million farmers
– Cost-effective sourcing for exports/domestic external business
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23. ITC’s Agri Commodity Business
ITC Master
Chef
prawns
ITC Master Chef Frozen
Snacks
Farmland
Potatoes
Farmland
Apples
ITC Master
Chef Mango
Puree
ITC Master Chef
Super Safe
Smart Onions
Maida, Suji, Besan & Dal for B2B
Channel
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24. Making Agri value chains competitive
Quality, productivity, market access, sustainable practices
• Partnering NITI
Aayog in 27 Districts
• Over 2 lakh farmers
trained till date
Baareh Mahine Hariyali Initative
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25. ITC’s Leaf Tobacco
Business
▪ India is the second largest tobacco grower in
the World.
▪ ITC – India’s largest buyer, processor,
consumer & exporter of cigarette tobaccos
− 5th largest leaf tobacco exporter in the world
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27. IT Business
1. Name- ITC Infotech
2. IT service and consultancy
3. Services
Banking and finance, Health care and ERP
1. 60+ Fortune listed clients, 29 countries, 9100+
employees
28. Corporate Social responsibility
Target Groups - ITC's CSR engagement is focused on two of its key stakeholder groups
● Rural communities across India where ITC has agri-business operations, a large majority of whom are small and
marginal farmers.
● Communities residing in the vicinity of ITC's units - mainly rural, but also in semi-rural and urban locations.
Strategy - This has led to the development of a 2-horizon strategy
The core objective of ITC's CSR initiatives is to secure the livelihoods of these marginalised communities not just for today
but also for the future.
Social Investment Initiatives:
1. e-Choupal Ecosystem
2. Afforestation programme
3. Watershed development programme
4. sustainable Agriculture
5. Skilling and vocational training
6. Women Empowerment
7. Health and sanitation
8. Solid waste management
9. Livestock Development
10. Primary Education
29. SWOT Analysis
1. Brand image– ITC is the most valuable brand of India with net income of Rs. 10,000 crores. ITC has a
track record of 100 years of presence, quality, consistency and continuous progress, expansion and
diversification.
2. Environmental Friendly: ITC has a status of being ‘Water Positive’ for the 8th consecutive year,
‘Carbon Positive’ for the 5th year in succession and ‘solid waste recycling positive’ for 3 years in a row.
3. Distribution Network: ITC’S products are available in over 6 million retail outlets in the country. Its
formidable Distribution organisation directly services more than 2 million of these retail outlets.
4. Leader of other sectors– ITC has India’s largest hotel chain with over 90 hotels throughout India.
Strengths:
30. 1. Declining industry trend– Legal cigarette business has witnessed a 25% decline in volumes from 2012-
13 which has affected the profits of ITC Limited. ITC Limited is largely depending upon tobacco products
which may become detrimental to its progress in future.
2. Tax reforms in India– Under the newly enforced Goods and Services Tax Act, 2017 tax is charged at a
higher rate than before GST which is exacerbating the business especially cigarette business of ITC.
3. Debt– ITC has total debt of 3.38 billion this is much higher than that of the sector and significantly higher
than that of the Total Debt Industry.
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Weakness::
31. Opportunities:
1. Growth rate of the economy– Growth rate of Indian economy is expected to be 7% that means new
opportunities will arise in future in different sectors and industries of the economy.
2. Rural Market: The company has the opportunity to get into the untapped rural market. “E-choupal”
initiative by the group, with its enhanced rural connectivity, has created huge opportunity for the firm to
acquire raw material at a cheaper rate.
3. Hotel chain: More publicity of hotel chains to increase market share.
4. Growing demand in FMCG sector– Increasing urbanization and a growing middle class are resulting
in an ever-growing demand for processed food in the FMCG sector consequently.
32. Threats:
1. Competition– ITC Limited is facing and will face in future, intense competition from domestic and foreign companies in
various industries like players like P&G, HUL, Reckitt Benckiser. Marico, L'Oreal.
2. Compliance– GST has imposed stricter and heavier compliance regulation and filings which will ultimately increase the
cost of compliance of ITC.
3. Inflation effect– In July, 2017 fuel prices increased to 5.56% consequently freight and transportation charges will
increase.
33. Research and Development:
❖ RESEARCH AND DEVELOPMENT AGRISCIENCE: R&D team continues evaluating
crops like Casuarina and Eucalyptus to increase the genetic and trait diversities in
these species.
❖ ITC’S high end field research centre is at Bhadrachalam.
❖ So far more than 100 high yielding fast growing and disease resistant Bhadrachalam
clones have been produced,productivity of these saplings is 6-9 times that of normal.
❖ R&D Facilities at Rajahmundry in Andhra Pradesh covers all aspects of tobacco crop
cultivation in collaboration with Central Tobacco Research Institute and Tobacco
Board.
❖ BIOSCIENCE R&D: ITC Life Science and Technology Centre has created R&D team
to design and develop several long term research platforms.
34. Conclusion:
● ITC is a Brand that delights over 100 million households. It also created 2 million livelihoods.
● ITC has placed itself successfully in the position of market leader in FMCG products.
● ITC’s products are of many varieties and people have a choice to choose from them.
● ITC is so intimately linked to the hearts and minds of so many in our country.
● It’s enduring value for the nation drives it to develop innovative models and CSR programmes that
embed social and environmental benefits in its multiple value chains.
“ITC is not just a corporation, but an institution in the national mainstream.”
