Itcosproject Final 130728110513 Phpapp01

7/27/2019 Itcosproject Final 130728110513 Phpapp01

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SU BM ITTED BY

H IM AN SH U SH EKH AR

12EX021PIYU SH D W IVED I

12EX035

SREEKAN T SU KU M AR

OPERATION STRATEGY BY ITC


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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

the Indian economy and the Company'sstakeholders

THE ITC MISSION

To enhance the wealth generating capability of the

enterprise in a globalising environment, delivering

superior and sustainable stakeholder value


3/27

INTR

Incorporated in !"!#, as Imperial Tobacco

Company of India $imited

Changed to Indian Tobacco $imited in !"%#and then to I&T&C $imited in !"%

(ith wide portfolio from )*C+ to hotels

renamed to ITC limited in ##!


4/27

Companies -iversification tobacco

Started as a cigarette, tobacco leave

manufacturing

.ackaging and printing business started in !"/to backward integrate with cigarette business

!"0/ Surya tobacco Co in Nepal set up,

renamed to Surya Nepal .vt $td in ##

becoming a subsidy of ITC

In #!#, ITC launched its hand rolled

cigar, Armenteros


5/27

Companies -iversification paper

!"%" entry in paper business, ITC

1hadrachalam

!""#, Tribeni tissues limited ac2uired,speciality paper for cigarette

Nov ##, Tribeni tissues division and

1hadrachalam paper board combines to form

.aperboards 3 Specialty .apers -ivision


6/27

Companies -iversification stationery

.aperkraft notebooks launched in ##

Classmate range launched in ##4

##% .ractical 1ooks, -rawing 1ooks,+eometry 1o5es, .ens and .encils under

the 'Classmate'brand

.aperkraft 6eco friendly premium businesspaper

Colour crew6 art stationery brand launched in

#!#


7/27


8/27

Companies -iversification food

:itchens of India6 ready to eat food launched in ##! *int6o, Candyman 3 ;shirvad launched in ##

##4 saw the raise of Sunfeast as a maipee in #!#


9/27

Companies -iversification others

$aunched in ##/ .ersonal Care portfolio has

grown under 'Essenza Di Wills', 'iama Di

Wills', 'Vi!el'and 'S"#eria'

!"%/ ITC6 (elcomgroup hotel Chola

ac2uired in Chennai, now known as )ortune

?otels

### launched the ITC Infotech

=nters matchbo5es industry in ## and ##4

launches incense sticks


10/27


11/27

S(T ;nalysis

Stren$th

1rand

*anagement

Wea%ness

@nrelated diversification

O##ort"nity

Rural market

=6choupal

Threats

Increasing ta5 in

Cigarettes?ealth haAard


12/27

The 1C+ *atri5

Stars

?otels

.aperboardsB

.ackaging&;gri business&

&

)*C+6 thers

Cos

)*C+6Cigarettes

Do$s


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.olitical ;spects

In ##! +overnment of India has announced

ban on the advertising by cigarettes

Companies& Therefore many policies have

come up like this&

Increased in =5cise duties&


14/27

=conomical ;spects

; growing portfolio of business encompassing )*C+,

.aperboards 3.ackaging, ;gri 3 )oods 1usiness, ?otels and

Information Technology&

Total Shareholder Returns, measured in terms of increase in

market capitaliAation and dividends, grew at a compound rate

of over per annum over the last / years&

The new )*C+ businesses support the competitiveness,

technology up gradation and market reach of over ## Small

and *edium =nterprises 7S*=s8&


15/27

Social ;spects

ITC +roup provides direct employment to more than

9,###people&

ITCDs globally recogniAed =6choupal initiative is the worldDslargest rural digital infrastructure benefiting over million farmers&

E

ITCDs (atershed -evelopment initiative brings precious water to

over 9,### hectares of dry lands and moisture6stressed areas&

E

ITCDs Sustainable Community -evelopment initiatives include

womenDs empowerment, supplementary education&


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Technological ;spects

(holly own subsidiary named FITC

IN)T=C?G

IndiaDs fastest growing IT services and solution

providers

.roviding services in more than !#countries


17/27


18/27

*a


19/27

Competitors

?@$

1RIT;NNI;

.;R$=

N=ST$=


20/27


21/27

.RS of -iversification

E(onomies o) s(ale an* s(o#e

perational synergies can be realiAed&

Spreading the firm's unutiliAed organiAational resources to other areas can create

value&

$everaging skills across businesses can create value&

Internal (a#ital mar%et

Cash from some businesses can be used to make profitable investments&

=5ternal finance may be more costly due to transaction costs, monitoring costs, etc&


22/27

Contd

Di!ersi)yin$ sharehol*ers+ #ort)olios

Individual shareholders may benefit from investing in a

diversified portfolio&

I*enti)yin$ "n*er!al"e* )irms

Shareholders may benefit from diversification if its

managers are able to identify firms that are under valued

by the stock market&


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CNS of -iversification

Combining two businesses in a single firm is likely to result insubstantial

influence costs&

Resource allocation can be influenced by lobbying&

Costly control systems may be needed that reward managers based on division

profits and discipline managers by tying their careers to business unit

ob


24/27

"t"re Positionin$ o) ITC

A lea*in$ MC #layer in In*ia

FAR

MERS

MAR

KETS

Cigarette Trade Marketing capability

BrandedFoods

Expanded FMCG distribution capability

e-choupal rural to-ay!ul"ll#ent capability

A basis !or strategic partnerships ith other

FMCG brand oners

$%& pro'iding SCM( ER% ) CRMcapability

Lifestyleretailing

Greetingcards/stat

ionery

Matches &Agarbattis


25/27

Conclusion

$everage upon its e5isting skills and competencies& 1enchmarked itDs

operations and 2uality control techni2ues&

Strong branding capabilities backed by good 2uality&

(on numerous awards like JEnter#rise -"siness Trans)ormation

Aar*., NASSCOM / CN-C IT 0ser Aar* et(1

ITCDs strong distribution capabilities and a strong brand name are auseful asset&

@sing its agri sourcing network to source raw materials for its biscuits

and atta businesses&


26/27

;head of Competition


27/27

Documents

Itcosproject Final 130728110513 Phpapp01