By: Neha Punjabi Ankit Agarwal

INTRODUCTION
ITC Limited, 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.

CONTD
It employs over 26,000 people at more
than 60 locations across India and is listed on FORBES 2000.

ITC Limited completes 100 years on 24th

August, 2010.

ITC Business Portfolio

FMCG
Cigarettes Foods Personal Care Lifestyle Retailing

Education & Stationery

Matches

Incense Sticks

Hotels

Paper & Packaging

Agri Business

Information Technology

Cigarettes
W. D. & H. O. Wills Gold Flake Navy Cut Insignia India Kings Classic (Verve, Regular, Mild & Ultra Mild)

Contd
Silk Cut Scissors Capstan Berkeley Bristol Lucky Strike Flake.

Strategies
Market leadership Powerful brands across segments

Extensive FMCG distribution network

Direct serving to 2 million retail outlets

Hotels
ITC Welcomgroup Hotels, Palaces and
Resorts is India's second largest hotel
chain with over 100 hotels.

They have 4 brands in hotels

competitors
TAJ GROUP OF HOTELS
OBEROI GROUP OF HOTELS

Strategies
Their strategy has been clearly to focus on a
few niche areas and provide unique and differentiated value propositions to their guests.

Their brands ITC Hotel, Welcome Hotel, Fortune

and Welcome Heritage, which spans luxury to mid-market segments, have been on a growth trajectory in recent months. They have leveraged the unique advantages that India offers in terms of diversity and heritage.

Contd
Category
Luxury Upper upscale Upscale - mid-scale Heritage

Brand
ITC Hotel: Luxury Collection WelcomHotel: Sheraton Fortune Hotels WelcomHeritage

Positioning
"Mansions of Luxury" "Passion for Quality" "Promise of True Value" "Unique Experiences"

The physical architecture of their

properties are unique and offer a local flavour to discerning guests.

In FMCG, ITC has a strong presence in:

Foods business Kitchens of India
Aashirvaad
Minto Sunfeast Candyman

Contd
Bingo brands in ready to eat. Staples

Confectionery Snack Foods

Personal Care Products business

Fiama di Wills Vivel Essenza di Wills Superia brands of products in perfumes

Haircare and skincare

Safety Matches and Agarbattis

Ship (through ownership of WIMCO) IKno Mangaldeep Aim brands

Competitors
HUL
BRITANNIA PARLE NESTLE

Strategies
Their strategy is to consolidate and offer a
greater range in the existing categories and grow these markets.

Agri-business
ITC's Agri-Business is India's second largest

exporter of agricultural products. ITC is one of the India's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.

Contd
The company places computers with
Internet access in rural farming villages; the e-Choupals serve as both a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub.

ABHISHEK JAIN Soya Farmer & e-Choupal Sanchalak Dahod Village, Raisen District, Madhya Pradesh

ABHISHEK JAIN
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 became the e-Choupal Sanchalak in my village. Today we are a community of e-farmers with access to daily prices of a variety of crops in India and abroad this helps us to get the best price. We can also find out about many other important things weather forecasts, the latest farming techniques, crop insurance, etc. e-Choupal has not only changed the quality of our lives, but our entire outlook.

Contd

E-Choupal States covered Villages covered No. of e-Choupals Farmers e-empowered

Now 10 40,000 6,500 4 million

Strategies

Paper boards & specialty papers

Coated Virgin Boards Coated Recycled Boards

Barrier Poly Coated Cast Coated Graphic Others

Contd

Cigarette Tissue and Components Fine Printing Packaging Decor Papers Niche Products

Business wise Sales data

Business/ Year FMCG-Cigarettes FMCG-Others Growth Value (Rs in Crore) % 2005 2004 8.4 85.2 10002.54 9230.27 563.39 304.16

Hotels
Agribusiness Paper & pkg. Net revenue

124.1
4.2 24.9 12.99

577.25
1780.07 1565.31

257.53
1708.77 1253.29

13349.58 11815.04

CAGR during FY 2005-2008

Category CAGR Growth parameters Cigarettes 10.9 % Pricing power Hotels Paper Agri business FMCGOthers 22.7% Inward traffic, occupancy

17.2 % Capacity utilization, value added products 34.3 % E-choupal, choupal sagar,

60.2 % Fast track, decent share.

Market share of ITC Ltd.

Outstanding market leader
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports. Gaining market share Nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting Cards.

Segment Cigarettes Paper & Packg. Agri business Hotels

Dominance 70% share Packaging board No. 1 in Asia 1of the largest xporters from India ITC Group ranks No.2

Contribution % Revenue PBIT 77.0% 87.7% 7.3% 7.0% 4.3% 10.7% 3.7% 5.4%

FMCG (Others)

20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment

4.4%

-7.5%

The BCG Matrix for ITC Ltd.

Stars Hotels Paperboards/ Packaging. Agri business. Cows FMCG-Cigarettes ? FMCG- Others

Dogs

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)