BCG Matrix of ITC Ltd.
ITC Ltd.Formerly Known as Indian Tobacco Company Formerly Known
as Imperial Tobacco Company
ITC Timeline
1925
1975 1979
1990
2000
1910
2010
1910 1925 1975 1979 1990 2000 2000 2000
Incorporation of 'Imperial Tobacco Company of India Limited'.
Setup of Packaging & Printing Business Launched its Hotels
business. Entered the Paperboards business Set up the Agri Business
Division Launched a line of high quality greeting cards under the
brand name 'Expressions' Entered the Lifestyle Retailing business
with the Wills Sport. Spun off ITC Infotech India Limited.
ITC Timeline
2001 2005
1910
2010
2001 2002 2002 2003 2005 2007
Introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes Launch of the brands mint-o and Candyman confectionery and
Aashirvaad atta Started marketing popular safety matches brands
like iKno, Aim Foray into the marketing of Agarbattis (Mangaldeep)
Introduced Essenza Di Wills, an exclusive range of fine fragrances
Entered the fast growing branded snacks category with Bingo!.
2007 Launched the 'Superia' range of Soaps and Shampoos in the
mass-market segment.
Corporate Governance Structure
ITC Ltd.
Agri Business Paperboards & Packaging Infotech
FMCG-Cigarettes
FMCG-Others
Hotels
FMCG-CigarettesInsignia, India Kings, Classic, Gold Flake, Silk
Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake
'Best Manufacturer of Cigarettes for the year 2007'
FMCG-Cigarettes Started in 1910 As Companys Core Business Market
leadership in all segments - geographic & price (70% Market
Share) Extensive FMCG distribution network (Direct servicing of
1,00,000 markets & 2 million retail outlet) Cigarettes account
for only 15% of tobacco consumed in India unlike world pattern of
85% due to prolonged punitive taxation. 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 world average which is 141 is appx. one
tenth
In 2001 - Lost 15% of Its Business Because of Rise in Excise
Duty In 2007 - VAT Was charged at 12.5% which increased the price
of cigarettes by 84ps per cigarette. Hence ITC had to shut down
their business of Plains (i.e. Non Filter Cigarettes) which was 20%
of total FMCG Cigarette Business.
FMCG-OthersAshirvad Atta, Kitchens Of India, Mint-o, Sunfeast,
Candyman, Bingo, Superia, Wills LifeStyle, Fiama Di Wills,
Expressions, Classmate
Superbrand 2006 - Superbrand Council.
FMCG-Others Ashirvad Atta is now #1 selling. Sunfeast Biscuits
is ranked #3.
Bingo, launched in August 2007, now enjoys 16% market share.
November 2007 Mint-o overtakes its competitor Chlormint Classmate
brand already the most widely distributed stationary brand in India
Kitchens of India has about 48% market share in India and a huge
export potential. Ready to Eat food Market is estimated to be
Rs.700m. Safety Matches market at Rs. 1250 crores p.a. for 24
billion match boxes which is targeted by ITCs iKno, Aim, Aim Mega,
Aim Metro. Successful acquisition of 94% of WIMCO Ltd. i.e.
Homelites, Ship. Mangaldeep the only National brand in the country
serves the nations 900cr incense sticks market.
HotelsITC Maurya (Delhi), ITC Maratha (Mumbai), ITC Grand
Central (Mumbai), ITC Sonar (Kolkatta), ITC Windsor (Bengaluru),
ITC Kakatiya (Hyderabad), ITC Mughal (Agra).
Bukhara Restaurant named as Best Indian Restaurant in the
World.
Hotels Hotel Brands: ITC-WelcomGroup, WelcomHeritage &
Fortune. Totally 90 Hotels, 77 Destinations and 5500 Rooms under
management.
Destinations include most of India as well as Singapore and
Dubai. Hosted a galaxy of world dignitaries like Bill Gates to Bill
Clinton, Condoleezza Rice to Benazir Bhutto. Restaurant Brands:
Bukhara, Dum Pukht and Dakshin.
Agri BusinesseChoupal, Agri Exports, Leaf Tobacco
Innovation for India Award 2006 for ITC e-Choupal in the Social
Innovations category for business organizations
Agri Business ITC Agri Business is one of Indias largest
exporter of agricultural commodities.
June 2000, eChoupal strategic and cost effective sourcing
support to the Foods business (support creation of verticals in
wheat, soya, corn, potato etc.) eChoupal - Services reaches to 4
million Farmers who are growing Wheat, Rice, Pulses, Soyabean,
Coffee in over 40,000 villages thru nearly 6,500 kiosks across nine
states. Diverse range of goods/services : FMCG, consumer durables,
agri-inputs. Farmer Financial Services - insurance (focus:
weather), credit (focus: Kisan credit card scheme) Rural Retail 18
Choupal Sagars Agenda 2012 is to cover 15 states with 1,00,000
Villages with about 20,000 eChoupal Kiosks servicing about 10
million farmers.
Agri Business Leaf Tobacco (ILTD) Largest Buyer, Processor and
Exporter of leaf tobacco in India. Exports to about 48 countries.
ITC processes about 120 million kgs of high quality tobacco yearly.
Overall 550m Kg of tobacco is produced in India. Factories have
integrated warehousing complexes. Enabled successful venture into
spices business. Golden Leaf Awards 2007 in the categories Most
Committed to Quality The International Quality Rating System IQRS
Level 7, awarded by Det Norske Veritas in March 2006.
Packaging & PaperboardsPackaging & Paperboards and
Specialty Paper
Indian Manufacturing Excellence Gold Award 2007 and 2006 to Unit
Bollaram by Frost & Sullivan
Packaging & Paperboards Annual paperboard demand appx. 1.1
million tonnes Indian paperboard market growing at 7% p.a.
Significant export opportunities for high quality Indian
manufacturers ITC paperboards exports - Rs. 2 billion appx. ITCs
packaging unit - Indias largest converter of paperboard into high
quality printed packaging Provides superior packaging solutions to
the cigarettes and new FMCG businesses India has low per capita
usage at around 6 kgs p.a. (World average over 50 kgs p.a.) ITC
Bought 0.5% in Ballarpur Industries in July 2008.
InfotechITC Infotech Ltd.
Featured amongst Top 100 Global Outsourcing Companies in the
Leaders category - International Association of Outsourcing
Professionals
Infotech ITC Infotech Ltd. Is a wholly owned subsidiary of ITC
Ltd. ITC Infotech is responsible for developing & maintaining
the entire ITC eChoupal infrastructure. Although a separate entity
and brand, ITC Infotechs primary job is to keep ITC as a group upto
date with latest technology.
BCG Matrix BCG Matrix a.k.a. Growth-Share Matrix, Boston Box,
Boston Matrix, Boston Consulting Group analysis.
Created by Bruce Henderson for the Boston Consulting Group in
1970 to help corporations with analyzing their business units or
product lines. This helps the company allocate resources and is
used as an analytical tool in brand marketing, product management,
strategic management, and portfolio analysis.
BCG Matrix
Summary on ITCs SBUs
REVENUES Y/E March (Rs cr) FY2010 FY2009
Growth-Share Matrix
% % Growth Contrib. 7.7 48.611.6 10.5 12.6 -
% Market Share Growth Share
FMCG-Cigarettes FMCG-OthersHotels Agri Business Paperboards
& Packaging ITC InfoTech
13,825.6 12,833.7 2,511.1 1,689.51,100.2 985.7
58.41 10.614.65 16.34 9.99 -
70% 21%90 Hotels
Low HighHigh High High Low
High LowHigh High High Low
3,868.4 3,501.3 2,364.3 2,100.1 -
2nd Largest Exporter26% -
ITC Ltd on BCG Matrix (Conclusion)
Star Agri Business Hotels Paperboards & Packaging
Question mark FMCG-Foods
G R O W T H
Cash Cow FMCG-Cigarettes
Dog ITC Infotech
MARKET SHARE
sector
Investment 10-11
Investment 09-08
revenue
FMCG cigaretteFMCG others hotels Paper and board
88Cr483Cr 400-600 Cr 300Cr
92Cr297Cr Below 400Cr 252Cr
9826.02Cr4482 Cr 5683.03cr 2821.96Cr
Thank you..
Ashish Niraj Neha Jaikishan Tanvi Nidhi
05 11 18 29 31 32
