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INTRODUCTION
ITC Limited, Indian tobacco company Ltd.
is an Indian conglomerate with a turnover of US $ 6 billion
and a market capitalization of over US $ 22 Billion.
The company is currently headed by
YOGESH CHANDER DEVESHWAR.
It employs over 26,000 people at more than 60 locationsacross India and is listed on FORBES 2000.
ITC Limited completes 100 years on 24th August, 2010.
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ITC Business PortfolioFMCG
,
Paper &
PackagingHotelsAgri
Business
Information
Technology
Cigarettes Personal CareFoods Lifestyle Retailing
Education & Stationery
MatchesIncense Sticks
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Cigarettes
W. D. & H. O. Wills
Gold Flake
Navy Cut
Insignia
India Kings
Classic (Verve, Regular,Mild & Ultra Mild)
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Contd
Silk Cut
Scissors
Capstan Berkeley
Bristol
Lucky Strike Flake.
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Hotels
ITC Welcomgroup Hotels, Palaces and Resorts
is India's second largest hotel chain with over
100 hotels.
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They have 4 brands in hotels
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competitors
TAJ GROUP OF HOTELS
OBEROI GROUP OF
HOTELS
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Strategies
Their strategy has been clearly to focus on a fewniche areas and provide unique and differentiatedvalue propositions to their guests.
Their brands ITC Hotel, Welcome Hotel, Fortune andWelcome Heritage, which spans luxury to mid-market segments, have been on a growth trajectory
in recent months. They have leveraged the uniqueadvantages that India offers in terms of diversity andheritage.
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Contd
The physical architecture of their propertiesare unique and offer a local flavour to
discerning guests.
Category Brand Positioning
Luxury ITC Hotel: Luxury Collection "Mansions of Luxury"
Upper upscale WelcomHotel: Sheraton "Passion for Quality"Upscale - mid-scale Fortune Hotels "Promise of True Value"
Heritage WelcomHeritage "Unique Experiences"
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FMCG, ITC has a strong presence in:
Foods business Kitchens of India
Aashirvaad
Minto
Sunfeast
Candyman
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Contd
Bingo brands in ready to eat.
Staples
Confectionery
Snack Foods
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Personal Care Products business
Fiama di Wills
Vivel Essenza di Wills
Superia brands of products in perfumes
Haircare and skincare
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Safety Matches and Agarbattis
Ship (through ownership of WIMCO)
IKno
Mangaldeep Aim brands
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Strategies
Their strategy is to consolidate and offer a
greater range in the existing categories and
grow these markets.
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Agri-business
ITC's Agri-Business is India's second largest exporter
of agricultural products. ITC is one of the India'sbiggest foreign exchange earners (US $ 2 billion in
the last decade).
The Company's 'e-Choupal' initiative is enablingIndian agriculture significantly enhance its
competitiveness by empowering Indian farmers
through the power of the Internet.
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Contd
The company places computers with Internet
access in rural farming villages; the e-Choupals
serve as both a social gathering place forexchange of information (Choupal means
gathering place in Hindi) and an e-commerce
hub.
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ABHISHEK JAIN
e-Choupal has not only changed the quality of our lives, but our entire outlook.
Before ITC introduced us to e-Choupal,
we were restricted to selling our produce in the local Mandi.
We had to go through middlemen and prices were low.
ITC trained me to manage the Internet kiosk and I becamethe e-Choupal Sanchalak in my village.
Today we are a community of e-farmers with access to dailyprices of a variety of crops in India and abroad , this helps usto get the best price.
We can also find out about many other important things weather forecasts, The latest farming techniques,
crop insurance, etc.
C d
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Contd
E-Choupal Now
States covered 10
Villages covered 40,000
No. of e-Choupals 6,500
Farmers e-empowered 4 million
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Strategies
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Paper boards & specialty papers
Coated Virgin Boards Coated Recycled Boards
Barrier Poly Coated Cast Coated Graphic Others
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Contd
Cigarette Tissue and Components
Fine Printing
Packaging
Decor Papers
Niche Products
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Business wise Sales data
Business/ Year Growth%
Value (Rs in Crore)
2005 2004
FMCG-Cigarettes 8.4 10002.54 9230.27
FMCG-Others 85.2 563.39 304.16
Hotels 124.1 577.25 257.53
Agribusiness 4.2 1780.07 1708.77
Paper & pkg. 24.9 1565.31 1253.29
Net revenue 12.99 13349.58 11815.04
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CAGR during FY 2005-2008
Category CAGR Growth parameters
Cigarettes 10.9 % Pricing power
Hotels 22.7% Inward traffic, occupancy
Paper 17.2 % Capacity utilization, valueadded products
Agribusiness
34.3 % E-choupal, choupal sagar,
FMCG-
Others
60.2 % Fast track, decent share.
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Market share of ITC Ltd.
Outstanding market leader
Cigarettes, Hotels, Paperboards, Packaging
and Agri-Exports. Gaining market share
Nascent businesses of Packaged Foods &
Confectionery, Staples ,Branded Appareland Greeting Cards.
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Segment Dominance Contribution %Revenue PBIT
Cigarettes 70% share 77.0% 87.7%
Paper &Packg.
Packaging board No.1 in Asia
7.3% 10.7%
Agribusiness
1of the largest xportersfrom India
7.0% 3.7%
Hotels ITC Group ranks No.2 4.3% 5.4%
FMCG
(Others)
20% share of greeting
cards market,'Aashirvaad' atta isNo.1 in brandedsegment
4.4% -7.5%
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The BCG Matrix for ITC Ltd.
Stars
Hotels
Paperboards/
Packaging.Agri business.
?
FMCG- Others
Cows
FMCG-Cigarettes
Dogs
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Major strategies followed by ITC:
Entering into less competitive or unexplored markets(ready to eat, staples, wafers)
Distribution network
Market differentiation ( Ready to eat, biscuits) Cost control strategy (all products)
Extensive advertising (biscuits, confectionary, wafers)
Regular introduction of new products (all products)
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