GL BAJAJ INSTITUTE OF MANAGEMENT AND

RESEARCH
GREATER NOIDA

MINOR PROJECT REPORT (PG34)

ON

ITC LTD.

Post Graduate Diploma in Management

Term 1
BATCH: 2019-2021

Submitted by:- Submitted To

Bhavya bharti PARUL MA’AM

ROLL NO. GM19049

1
GL BAJAJ INSTITUTE OF MANAGEMENT AND RESERCH
GREATER NOIDA

CERTIFICATE

This is to certify that Ms Bhavya Bharti (GM19049) PGDM 2019-

21,Term 1 , work exemplified in minor project report (pg34) on
ITC LTD under my mentorship in GL BAJAJ Institute of
Management and Research , Greater Noida (UP).

MENTOR SECTION IN CHARGE FACULTY IN CHARGE

PARUL YADAV Dr. ARVIND BHATT Dr. DILEEP SINGH

TABLE OF CONTENT
2
TOPIC PAGE NO.

1. Introduction to sector/company 5 -13

2. Market share and position of ITC 15- 18

3. PESTEL Analysis 21-24

4. SWOT Analysis 26-27

5. Findings 28

6. Recommendation 29

7. References 30

3
 CHAPTER 1
INTRODUCTION TO COMPANY /
SECTOR

CHAPTER 1

4
Introduction to Sector
/ Company

INTRODUCTION TO SECTOR
Fast-moving consumer goods (FMCG) sector is the 4th largest sector in the Indian
economy with Household and Personal Care accounting for 50 per cent of FMCG sales in
India. Growing awareness, easier access and changing lifestyles have been the key growth
drivers for the sector. The urban segment (accounts for a revenue share of around 55 per cent)
is the largest contributor to the overall revenue generated by the FMCG sector in India
However, in the last few years, the FMCG market has grown at a faster pace in rural India
compared with urban India. Semi-urban and rural segments are growing at a rapid pace and
FMCG products account for 50 per cent of total rural spending.

Current Market Scenario

The three main segments of the FMCG industry are Food & Beverages, Household Care, and
Personal Care. Unilever, P&G, Marico, Nestle are some of the leading FMCG companies in
the world. 
The growing Indian economy has opened doors to well-paying employment opportunities in
every sector. This has resulted in a population with greater purchasing power. Most of these
high-income earners are interested in spending on a variety of FMCG products including
luxury products, to lead a good lifestyle. 
Brands in India are spending the enormous amount of money on marketing and branding
campaigns to lure these spenders who are among their target audience. 
 
Future Growth

New production facilities are equipped with machinery to reduce the wastage of products
during production. Transport and infrastructure development are improving the methods of
distribution to even the remotest areas of India. 
There are economical packages and one-time use packs for the people who have less spending
power or who want the ease of unit packs. With the latest packaging technologies, FMCG
companies are able to innovate and manufacture long-lasting products with the minimum
damage of packages during transportation.

5
 INTRODUCTION TO
COMPANY

ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata

West Bengal. Established in 1910 as the 'Imperial Tobacco Company of India Limited',
the company was renamed as the 'India Tobacco Company Limited' in 1970 and later
to 'I.T.C. Limited' in 1974. The dots in the name were removed in September 2001 for the
company to be renamed as 'ITC Limited' where 'ITC' would no longer be an initialism. The
company completed 100 years in 2010 and as of 2012–13, had an annual turnover of US$8.31
billion and a market capitalization of US$50 billion.

A Modest Beginning

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company's existence. The Company celebrated its 16th birthday on August
24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L.
Nehru Road) Kolkata, for the sum of Rs. 310,000.

 1925: Packaging and Printing: Backward Integration

Though the first six decades of the Company's existence were primarily devoted to the growth
and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging &
Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes
business. It is today India's most sophisticated packaging house.

 1975: Entry into the Hospitality Sector - A 'Welcome' Move

In 1975, the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcome group Hotel Chola' (now renamed My Fortune,
Chennai). The objective of ITC's entry into the hotels business was rooted in the concept of
creating value for the nation. ITC Hotels recently took its first step toward international
expansion with an upcoming super premium luxury hotel in Colombo, Sri Lanka.

6
  1979: Paperboards & Specialty Papers - Development of a Backward Area

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam

Paperboards Limited

 1985: Nepal Subsidiary - First Steps beyond National Borders

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal

 1990: Paperboards & Specialty Papers - Consolidation and Expansion

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry.

 1990: Agriculture Business - Strengthening Farmer Linkages

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agriculture Business
Division for export of agri-commodities. The Division is today one of India's largest
exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000
with soya farmers in Madhya Pradesh.

 2002: Education & Stationery Products - Offering the Greenest products

ITC launched line of premium range of notebooks under brand Paper craft in 2002. To
augment its offering and to reach a wider student population, the Classmate range of
notebooks was launched in 2003. Classmate over the years has grown to become India's
largest notebook brand and has also increased its portfolio to occupy a greater share of the
school bag. Years 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. 'Paper craft' offers a diverse portfolio
in the premium executive stationery and office consumables segment.

 2000: Information Technology - Business Friendly Solutions

7
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC InfoTech India Limited, to more aggressively pursue emerging
opportunities in this area. Today ITC Info tech is one of India's fastest growing global IT and
IT-enabled services companies and has established itself as a key player in offshore
outsourcing, providing outsourced IT solutions and services to leading global customers
across key focus verticals - Banking Financial Services & Insurance (BFSI), Consumer
Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media &
Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics.

 2001: Branded Packaged Foods - Delighting Millions of Households

ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In
2002, ITC entered the confectionery and staples segments with the launch of the brands mint-
o and Candyman confectionery and Aashirvaad Atta (wheat flour).

 2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep and Aim.

 2005: Personal Care Products - Expert Solutions for Discerning Consumers

ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', 'Vivel' 'Superia' ‘Engage’ deodorants.

 2010: Expanding the Tobacco Portfolio

In 2010, ITC launched its hand rolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining
restaurants and exclusive clubs.

MISSION, VISION AND VALUE

8
 MISSION

“To enhance the wealth generating capability of the enterprise

in a globalization environment, delivering superior and
sustainable Stakeholder value.”

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's
stakeholders.”

VALUES
“ITC's Core Values are aimed at developing a customer-
focused, high-performance organisation which creates values
for all its stakeholders.”

PRODUCT RANGE OF ITC

9
  Cigarettes

ITC Ltd sells 81% of the Cigarettes, Bidi in Asia, where 275 million people use tobacco
products and the total cigarette market is worth close to $11 billion.
ITC's major cigarette brands include
  Wills Navy Cut, 
 Gold Flake Kings, 
 Gold Flake Premium lights, 
 Gold Flake Super Star,
 Insignia,
  India Kings,
 Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Ice Burst, Mild &
Ultra Mild), 
 555,
  Silk Cut,
 Scissors,
  Capstan,
 Berkeley,
 Bristol,
 Lucky Strike,
 Players,
 Flake and
 Duke & Royal
.

 Food
ITC's major food brands include Kitchens of India;

  Aashirvaad,
 B natural,
 Sunfeast,
 Candyman,
 Bingo! and
 Yippee!

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  Personal care
products include
 Fiama Di Wills,
 Vivel,
 Savlon Soap &
 Hand wash, Essenza Di Wills,
 Superia and
 Engage.

4. Stationery:
  Classmate,
 Paper Kraft and
 Colour Crew.

5. Safety Matches and Agarbattis

 Ship,

 i Kno and
 Aim brands of safety matches
  Mangaldeep brand of agarbattis (Incense Sticks).

11
6. Hotels
ITC's Hotels division
(under brands
including Welcome
Hotel) is India's second-largest hotel chain with over 90 hotels throughout India. Brands
in the hospitality sector owned and operated by its subsidiaries include

 Fortune Park Hotels and

 Welcome Heritage Hotels.

Figure 1

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Manpower
No. of employee 27,279 (2019)

Turnover
The company completed 100 years in 2010 and as of 2012–13, had an annual turnover of
US$8.31 billion and a market capitalization of US$50 billion. It employs over 30,000 people
at more than 60 locations across India and is part of Forbes 2000 list.

ORAGANISATION STRUCTURE

FIGURE 2

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 CHAPTER 2

MARKET SHARE AND POSITION

OF THE COMPANY

14
 CHAPTER 2

MARKET SHARE AND POSITION

OF THE COMPANY

MARKET SHARE
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 840
billion in 2017, with modern trade expected to grow at 20 per cent - 25 per cent per annum,
which is likely to boost revenues of FMCG companies. Revenues of FMCG sector reached
Rs. 3.4 lakh crore (US$ 52.75 billion) in FY18 and are estimated to reach US$ 103.7 billion in
2020. The sector witnessed growth of 16.5 per cent in value terms between July-September
2018; supported by moderate inflation, increase in private consumption and rural income.

MAJOR COMPETITORS
1) HUL

Hindustan Unilever Limited (HUL) is the largest Fast Moving Consumer Goods Company
located in India. It has a rich 80 years of legacy in this field. Almost, nine out of ten Indian
households make use of the products of HUL.

The company works daily for a better future to make people feel and look good with their
various brands and services. The main product includes cleaning agents, food products,
personal care products, and water purifiers. It has about 35 brands which span across 20
distinct categories like detergents, soaps, skin care, deodorants, tea, coffee, ice cream,
packaged food, and many more. The main strength of this company is its innovation. The

15
company’s research center continuously works and develops innovative products which make
HUL lead the consumer goods market. As HUL is considered as a market leader in consumer
goods, it is indeed a top ITC competitor.

2) P&G

A popular American multinational consumer goods corporation, P&G is headquartered in

Ohio, United States. It manufactures a wide range of consumer goods. The company has its
business operations in five main segments, Grooming, Health Care, Fabric & Home Care,
Beauty, and Baby, Feminine & Family Care.

The company sells their products in about 180 countries and territories mainly through
grocery stores, department stores, merchandisers, membership club stores, baby stores, online
store and through many other channels. It is one of the major providers of hygiene and
healthcare consumables.

One of the main strength of P&G is that it has its own brands which are valued by them and
customers. It has a huge product portfolio and due to which the economy of the sales
increases. Due to their excellent R&D and brand value, P&G is considered a top ITC
competitor.

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3) Nestle

Nestle is a food processing industry located in Switzerland. Established in the year 1866,
Nestle is the largest food company in the world based on revenue. The various products of
Nestle include medical food, baby food, breakfast cereals, bottled water, tea, coffee, dairy
products, confectionery, frozen food, ice cream, snacks, and pet foods.

The company has about eight factories and many co-packers. It is a lively company which
provides their consumers with various products of global standards. The company has about
200 brands that range from global to local ones and their products are available in almost 191
countries. The research and development center of Nestle is the world’s largest food and
nutrition research organization. Due to their broad portfolio of products, Nestle is considered
a top ITC competitor.

17
 ITC Marketing Mix (4Ps)
Strategy
Product:
The product strategy and mix in ITC marketing strategy can be explained as follows:
ITC is a leading FMCG company in India. ITC has a dynamic portfolio in its marketing mix
with businesses spanning FMCG, Agri-business, Hotels, Information technology, paperboards
and packaging. The product lines have great product length and depth.
ITC comprises of packaged food, Lifestyle retailing, Education and stationery products, safety
matches and incense sticks, personal care products. ITC’s food brands include Sunfeast with
sub-brands Dark fantasy, Yumfills, Bounce; Bingo, Candyman, Yippee, GumOn, Mint-O,
Kitchen of India, Aashirvaad, Fabelle, Sunfresh, B natural and Sunbeam. Within each of these
brands there are different variants of the product. For example, ITC Sunfeast offers biscuits,
cookies and cakes; ITC Yippee offers instant noodles and pasta; candyman offers toffees,
candies and mint.
ITC has a range of popular brands like Navy cut, Insignia, India Kings, Silk cut, Gold flake,
Classic, Lucky Strike, Players, capstan, Bristol, Duke & Royal, which has won many awards.
ITC has developed an array of products in the personal care segment. Based on extensive
consumer research and product development ITC’s brands like Fiama, Vivel, Essenza Di
Wills, Engage, Superia have received a very positive response. Shower to Shower and Savlon
are already very popular.
Wills Lifestyle and John Players are ITC’s lifestyle retailing businesses. They provide a
tempting collection of apparels and a delightful shopping experience to their consumers.
Classmate and Paperkraft offer a variety of products in the education and stationery business.
Classmate is the largest notebook brand in the country. Carton board packaging, flexible
packaging are the different product lines of ITC’s packaging business.

ITC has a premium range of luxury hotels in over 70 destinations. ITC hotels are the greenest
luxury hotels in the world because of its sustainable and responsible policies.

Price:
Below is the pricing strategy in ITC marketing strategy:
ITC has different price points as it has a diversified product portfolio. ITC have products in all
price brackets but more and more new products are on the premium side as they provide
higher margins. Pricing of the product depends on several things like pricing objective, the
market one is operating in, the purchasing power of the consumers, the market condition,
product’s market position etc. For instance, as Bingo was entering the market, it adopted a
very clever aggressive pricing strategy to capture the market share. They maintained their

18
prices as per the market leader but offered more quantity and more margin to the retailers
which gave them a competitive edge.
ITC follows different marketing mix pricing strategy for different products. Their economy
brands follow economy pricing. Marketing and manufacturing cost is kept at a minimum. ITC
had to hike the price its premium products in the industry due to hike in excise duty.
Classmate is priced over 5% over its competitors.

Place:
Following is the distribution strategy of ITC:
ITC has an unmatched distribution network. Its products are available in 4.3 million retail
stores in India. A strong distribution shows its marketing mix place strategy. ITC is constantly
trying to reduce the lead time and to make the products reach to the retailers as quickly as
possible. Being an environment friendly organization, ITC is carbon positive, solid waste
positive and water positive. Out of the total energy it consumes over 47% comes from
renewable sources. E-choupals ensure timely supply of high quality raw materials. ITC has
well integrated manufacturing and Logistics facilities with a wide and deep distribution
network. All manufacturing units owned by ITC are hazard Analysis and critical control point
certified. ITC has distinctive agri-sourcing capabilities with farm linkages in over 17 states
which provide it with high quality wheat, soya, potato, coffee etc. It has an efficient CRM
program for commodity customers. ITC's Paperboards and Specialty Papers Division has four
manufacturing units, eight regional sales offices and over 60 dealers in India. ITC has over
100 hotels are present in 70 destinations. ITC’s food products are exported to North America,
Middle east, Africa and Australia.

Promotion:
The promotional and advertising strategy in the ITC marketing strategy is as follows:
ITC designs its promotion strategy keeping in mind its brand proposition and its target
audience. It promotes its product through Print, television and radio as a part of its marketing
mix. ITC’s different brands have different brand ambassadors. For example, classmate has
been endorsed by Yuvraj Singh and Soha Ali Khan; Saina Nehwal has endorsed Salvon;
Shahruk Khan has been endorsing the entire range of snacks under the umbrella brand of
Sunfeast. ITC roped in Ranbir Kapoor for John players.
As part of ITC’s centenary initiative, Classmate launched the largest student contact program-
Ideas for India challenge. It provided a platform for Indian youth to brainstorm and address
the issues and challenges which our nation faces and help in developing the nation. ITC also
launches a lot of digital campaigns to ensure maximum participation. The Fiama De Wills
Men campaign is one such example. Fiama DE Wills has had an association with the talented
designer, Masaba Gupta for Wills Lifestyle Fashion Week. ITC also engage in cross
marketing promotions. YiPPee! Launched a campaign with Paytm offering recharge coupons
equivalent to the price of YiPPee noodles. The company launched an advertisement to back
the campaign. Hence this concludes the ITC marketing mix.

19
 Chapter – 3

PESTAL ANALYSIS

20
 Chapter – 3

PESTAL ANALYSIS
POLITICAL FACTORS:

The political arena has a huge influence upon the regulation

of businesses, and the spending power of consumers and other businesses. The Indian polity
is increasingly seen by political observers as the problem. When populist political appeals stir
the passions of the masses, government institutions appear less capable than ever before of
accommodating conflicts in a society mobilized along competing ethnic and religious lines.
Budget impact - Among the FMCG stocks, ITC is one of the biggest gainers. Due to Govt.
new conditions, ITC Maurya won the 'Best eco-friendly hotel –Special Prize' award by the
Ministry of Tourism, Government of India. Some recent Political Factors ITC had to face in
some previous years are mentioned as below:

• Huge burden of VAT – increase in prices may affect the sales.

• Excise duty raised by union budget by 5 %.

• Ban on communication.

• Luxury tax in 10 states – making it difficult for ITC to maintain the consistency
level in prices for different places.

• Smuggling - regarding Tobacco products

.
• 100% FDI allowed - as it will allow several Foreign Brands to enter the Indian
Markets, and thus, may affect the share of ITC in the Indian Markets

ECONOMIC FACTORS:
Marketers need to consider the state of a trading economy
in the short and long-terms. This is especially true when planning for international marketing.
India has been one of the best performers in the world economy in recent years, but rapidly
rising inflation and the complexities of running the world’s biggest democracy are proving

21
challenging. India’s economy has been one of the stars of global economics in recent years,
growing consistently over the past decade. Growth had been supported by markets reforms,
huge inflows of FDI, rising foreign exchange reserves, both an IT and real estate boom, and a
flourishing capital market. ITC is rated among the World's Best Big Companies, Asia's 'Fab
50' and the World's Most Reputable Companies by Forbes magazine, among India's Most
Respected Companies by Business World and among India's Most Valuable Companies by
Business Today. ITC ranks among India's 10 Most Valuable (Company) Brands', in a study
conducted by Brand Finance and published by the Economic Times. ITC also ranks among
Asia's 50 best performing companies compiled by Business Week. ITC employs over 25,000
people at more than 60 locations across India. Some Economic Factors ITC had to face in
some previous years are mentioned as below:

• Bidee : cigarette ratio = 10:1 – which means they are the producers of a very less
level of tobacco products as compared to overall consumed.

• Profit margin is high – and thus, it will yield higher level of returns over
Comparatively lesser inputs.

• Other forms of cheap tobacco intake – the economy of India is not as strong which
leads to people consuming cheap tobacco products. This means they can have higher
returns as production of cheap tobacco products is comparatively cheaper.

• India’s top producer of cigarettes. – and it can be concluded that since ITC is the
leading producer of tobacco products in India, they earn a higher proportion of their
income by selling these tobacco products.

SOCIAL FACTOR:
Some Social Factors ITC had to face in some previous years are mentioned as below:

• Becoming status symbol – for many, intake of tobacco is a status symbol. They feel that the
usage of Cigars and high-branded Cigarettes gives an increase to their status in the society.
ITC banks on it and makes highly-prices tobacco products as well in addition to the cheaper
ones.

• Companions mounted by W.H.O

.• Changing attitudes towards tobacco – Many people are becoming aware about the ill-effects
of intake of Tobacco. This may lead to the industry suffering some amount of loss in the years
to come

.• Restrictions by government – Several restrictions on tobacco and it advertising has made

the promotion of tobacco brands almost impossible, thus leading to a decline in their sales.

TECHNOLOGICAL FACTORS:
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ITC's strategic initiatives for developing its people have been based on participative
management concepts like QC(Quality Control), TQM (Total Quality Management), KSS
(Kaizen Suggestion Scheme), 5S,Six Sigma etc. All ITC manufacturing units have ISO
quality certification. Almost all contract manufacturing units in the Foods Business and all
large hotels have food safety and quality systems certified by accredited 'third party' in
accordance with 'Hazard Analysis Critical Control Points' (HACCP) standards. Additionally,
the quality of all FMCG products of the Company is regularly monitored through 'Product
Quality Rating System' (PQRS). IT is an enabler of the business process to ensure business
growth through efficient management of operations in the value chain. Some Technological
Factors affecting ITC in some previous years are listed as below:

• State-of-the-art factories.

• Cheap labour supply – It has often been noticed that labour is very cheap and inabundance
in India. Thus, ITC gets large number of labour supplies from under-developed areas for a
comparatively cheaper cost and thus, their margin on theproduct increases significantly.

• Development of IQMS i.e. Innovative Quality Products and Systems. The basicprinciple of
ITC is to produce quality products and thus, systems are set-up in order toobtain them.

• Adapting other concepts like QC and TQM – Various techniques such as QC(Quality
Control) and TQM (Total Quality Management have regularly been adoptedby ITC so as to
ensure the Quality is maintained and managed regularly.

• Hardware investment – High amount of investment is done in hardware such aslarge

Storehouses, high shelves, etc.

• Software investment – such as GPS monitoring circuits, long-distance clients landing

enquiries, GIS circuit optimization, and online method of electronic clearing, etc.

• Miscellaneous – along with good Hardware and Software investment, ITC also possesses
a great Logistic as well as Inventory support.

23
LEGAL FACTORS:
 Time Taken for Court Proceedings – Even if the country has best of the laws, it doesn’t mean
much if they can’t be enforced in a timely manner. Itc Bat should do a primary research
regarding how much time it often takes to conclude a court case in the country given the sort
of legal challenges Itc Bat can face.

 Laws regarding Monopoly and Restrictive Trade Practices – As a new player Itc Bat
shouldn’t be worried about the monopoly and restrictive trade practices law.

 Independence of Judiciary and Relative Influence of Government – The judiciary

independence often reflect both strength and credibility of the institutions in the
country.

 Securities Law – What are the securities law in the country and what are the
conditions to list the company on national or regional stock exchange.

 Data Protection Laws – Itc Bat needs to assess what are the data laws in the country
and what it needs to do to comply with them. For example most of EU countries now
want the EU citizen data to be saved in EU countries only.

 Business Laws – Before entering into new market – Itc Bat has to assess what are the
business laws and how they are different from home market.

24
CHAPTER – 4

CHAPTER – 4

25
SWOT ANALYSIS
SWOT ANALYSIS
It is an analysis which talks about a company’s strengths and weaknesses and tries to figure
out opportunities and threats which a company is most likely to meet in the future on the basis
of current happenings. This analysis is conducted to improve operations and competitiveness
of the company, dealing with risks efficiently, to discover emerging opportunities for the
company and to use resources efficiently. SWOT analysis can be conducted in terms of the
points given in the template shown in the image below-

STRENGTHS:
1. Brand image– ITC is the most valuable brand of India with net income of Rs. 10,471 crore
in 2017.

2. Competence– ITC has a track record of 100 years of presence, quality, consistency and
continuous progress, expansion and diversification.

3. Market position– ITC is dominating Indian tobacco market by selling 81% of the
cigarettes and cigar such as Gold Flake, Gold Flake Super Star, Wills Navy Cut, Premium
Lights, Classic (Regular, Verve, Menthol, Menthol Rush, Citric Twist, Ice Burst, Mild &
Ultra Mild) etc.

4. Core competency– ITC is India’s largest seller of branded foods with sales of over Rs.
4600 crore in 2012-13. Its most famous food brands are Aashirwaad, B Natural, Sunfeast,
Yippee! , Bingo! And Candyman.

5. Leader of other sectors– ITC has India’s largest hotel chain with over 90 hotels
throughout India. ITC is exclusive franchise holder of two brands owned by Sheraton
International Inc

WEAKNESSES:
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.

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.

26
3. Multiple brands– ITC Limited has way too many brands and its business is expanded to
various different industries which is causing brand dilution.

4. 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.

5. Dependence on tobacco products– ITC Limited is largely depending upon tobacco

products which may become detrimental to its progress in future.

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.

3. Unchanged interest rate– In the meeting of the Monetary Policy Committee of the
Reserve Bank of India held in October, 2017 RBI left the repo rate unchanged (6%)
consequently, banks will not increase interest rate on the amount of loan that they will
advance to borrowers hence raising debt funds will not be expensive for further expansion or
diversification of the business.

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
a total investment of Rs. 68,000 crore has been proposed from various global and domestic
companies in the World Food India, 2017 out of which ITC is planning to invest Rs. 10,000
crore in food processing over the next five to seven years which will ultimately reduce the
over dependence of ITC on tobacco business.

THREAT:
1. Competition– ITC Limited is facing and will face in future, intense competition from
domestic and foreign companies in various industries.

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.

Chapter 5

27
 FINDINGS
 The consumer of ITC LTD product are very satisfied by the quality and features of the
product.

 The pricing policy of classmate is not economical according to the consumer.

 The reason of its success is its promotional strategy and quality of product.

 The demand of the product is high due to brand image of the company

 It has a huge customer base

 ITC knows the their strength and weakness in the personal care market ,so they are
applying new concept overcome the weakness

ITC is now providing more margins, credit facilities, exiting offers to the retailers and
wholesaler.

CHAPTER 6

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 RECOMMENDATION
 The company should come up with the idea of retail store of food product all over the
india following the the strategy of umbrella branding.

 The company can come up with new initiatives to tie up with the Retails food joints
Like Mc Donald, Pizza Hut, Dominos, Smoking Joe’s etc and other food joints so that
they use Aashirvaad atta at a discounted rate or discount coupon can be given to the
outlets if they are using this product of ITC.

 The company can launch a new idea where they can export branded Atta to other
exporting countries where they are already exporting wheat. ‘Aashirvaad ‘ brand Atta
was exported to New Zealand, Australia, US and Canada but the government has
imposed certain restrictions on such exports for ensuring food security on wheat based
products. The company can suggest that value added food products should not be
banned from exporting but some certain restrictions can be imposed on the company
to import an equivalent amount of wheat in the country.

 ITC’s growing presence in agriculture, food and personal care products is enabling a
synergy of R & D capabilities to venture into future products which can be aimed at
nutrition, health and well-being. This special attention can be used to take care of the
various health disorders in the country and several long term arenas can be created for
these unique propositions. These R & D centre can be used to address the areas of
heart related and diabetes related problems. The company is already moving in this
direction by setting up R&D centre at Bangalore which will provide the requisite
platforms to deliver such future products.

 The company can approach the government or distribute their food products & other
categories in Military canteens and can sell them to NGO’s that gives the evening
meals to the children as part of mid-day meal scheme.

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 Chapter 7

REFERENCES
https://marcepinc.com/industries-detail/future-of-fmcg-sector-in-india

https://en.wikipedia.org/wiki/ITC_Limited

https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx

https://www.itcportal.com/sustainability/sustainability-report-2006/html/itc-mission.aspx

https://www.google.com/search?
q=no+of+employees+in+itc&rlz=1C1CHBF_enIN862IN862&oq=no.of+employee+in+itc&aqs=chrome.
1.69i57j0l5.12748j0j7&sourceid=chrome&ie=UTF-8

https://www.google.com/search?
rlz=1C1CHBF_enIN862IN862&ei=_gZwXbHfGb7Fz7sPnKG94As&q=turnover+of+itc&oq=turnover+of+i
tc&gs_l=psy-ab.3..0j0i67j0l3j0i22i30l5.4425.6424..7547...

https://www.google.com/search?
rlz=1C1CHBF_enIN862IN862&q=organisation+structure+of+ITC+LTD+for+FMCG&tbm=isch&source=u
niv&sa=X&ved=2ahUKEwiXxI_667fkAhWa73MBHax7B2IQsAR6BAgGEAE&biw=1366&bih=608#imgrc=
2s6hej84oqrnJM:

https://www.ibef.org/industry/fmcg.aspx

https://pdfslide.net/documents/pest-analysis-itc-55844d9138f18.html

https://ilmashuza.wordpress.com/2017/11/27/case-study-1-swot-analysis-of-itc-limited/

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