Professional Documents
Culture Documents
• ITC Limited which previously stood for ‘Imperial Tobacco Company one of India's
foremost private sector companies with a market capitalization of nearly US $ 18 billion
and a turnover of over US $ 4.75 billion.
• ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering.
• continues in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and
Agri-Exports, it is gaining market share in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel and Greeting Cards.
• ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
pursuing emerging opportunities in providing end-to-end IT solutions, including e-
enabled services and business process outsourcing.
1|Page
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.
MISSION:
VALUES
• Customer Focus we are always customer focused and will deliver what the customer
needs in terms of value, quality and satisfaction.
• Trusteeship
• Customer Focus
• Excellence
• Innovation
• Nation Orientation
2|Page
PRODUCTS:--
10. 16.
1.
2. 11. 17.
3.
12. 18.
4.
13.
5.
6. 14.
7.
15.
8.
9.
3|Page
PROFILE
ITC in FMCG
Cigarettes
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ithas a
leadership position in every segment of themarket. It's highly popular portfolio ofbrands
includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake.
The Company has been able to build on its leadership position because of its singleminded focus
on value creation for the consumer through significant investments inproduct design, innovation,
manufacturing technology, quality, marketing and
distribution.
All initiatives are therefore worked upon with the intent to fortify market standing in the
long term. This in turns aids in designing products which are contemporary and relevant
to the changing attitudes and evolving socio economic profile of the country. This
strategic focus on the consumer has paid ITC handsome dividends
FOODS
ITC made its entry into the branded &packaged Foods business in August 2001 with thelaunch of the
Kitchens of India brand. A more broad-based entry has been made sinceJune 2002 with brand launches in
the Confectionery, Staples and Snack Foods segments.The Foods business is today represented in 4
categories in the market. These are:
4|Page
In order to assure consumers of the highest standards of food safety and hygiene, ITC isengaged
in assisting outsourced manufacturers in implementing world-class hygienestandards through
HACCP certification. The unwavering commitment to internationallybenchmarked quality
standards enabled ITC to rapidly gain market standing in all its 6brands:
* Kitchens of India
* Aashirvaad
* Sunfeast
* mint-o
* Candyman
* Bingo!
Lifestyle Retailing
ITC’s Lifestyle Retailing Business Division has established a nationwide retailingpresence
through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle,the fashion
destination, offers a tempting choice of Wills Classic work wear, Wills Sportrelaxed wear, Wills
Clublife evening wear, fashion accessories and Essenza Di Wills – anexclusive range of fine
fragrances and bath & body care products and Fiama Di Wills - arange of premium shampoos
and shower gels. Wills Lifestyle has also introduced WillsSignature designer wear, designed by
the leading designers of the country.
Wills Classic work wear was launched in November 2002, providing the premium
consumer a distinct product offering and a unique brand positioning.
ITC forayed into the youth fashion segment with the launch ofJohn Players inDecember 2002
and John Players is committed to be the No. 1 fashion brand for the youth.
5|Page
Agarbattis
As part of ITC's business strategy of creating multiple drivers of growth in the FMCGsector, the
Company commenced marketing Agarbattis (incense sticks) sourced fromsmall-scale and
cottage units in 2003.
Hotels
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, whichwas
then rechristenedITC Chola. Since then the ITC-Welcomgroup brand has becomesynonymous
with Indian hospitality. With over 90 hotels in 77 destinations.
Packaging
ITC's Packaging &Printing Business is the country's largest convertor of paperboardinto
packaging. It converts over 50,000 tonnes of paper and paperboard per annum into avariety of
value-added packaging solutions for the food &beverage, personal products,cigarette, liquor,
cellular phone and IT packaging industries. It has also entered theFlexibles and Corrugated
Cartons business
Agri Business
e-Choupal
The unique e-Choupal model creates a significant two-way multi-dimensional channelwhich can
efficiently carry products and services into and out of rural India, whilerecovering the associated
costs through agri-sourcing led efficiencies. This initiative nowcomprises about 6500
installations covering nearly 40,000 villages and serving over 4million farmers.
6|Page
Leaf Tobacco
ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating aglobal
benchmark as the single largest integrated source of quality tobaccos. Servingcustomers in 50
countries across more than 70 destinations, ITC co-creates and deliversvalue at every stage of the
leaf tobacco value chain.
Information Technology
ITC Infotech offers IT services and solutions across five key industry verticals:
Banking,Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) &
Retail,Manufacturing & Engineering Services, Travel, Hospitality & Transportation and Media&
Entertainment.
ITC Infotech, a global IT services company, is today one of India’s fastest growing IT
services and solutions providers
Watershed Development
7|Page
ITC’s watershed initiatives have led to an improvement in soil and moisture regimes –there is
more land under irrigation, water tables have risen and farmers can harvest morethan one crop,
making it possible to live off the land round the year.
Agricultural Development
ITC offers facilitation to farmers to form agri-business societies, pool knowledge andresources,
improve productivity and quality, and reach out beyond local markets to sell atbetter margins.
Women Empowerment
The confidence and skills generated among women by forming credit groups and
managing businesses become assets to their communities.
Livestock Development
The milk marketing co-operatives represent exemplary change in rural enterprise, away
from dependence on agriculture and local markets.
Primary Education
School going becomes an empowering process for the child and the community. Theawareness
of entitlements like education and health grows, along with a sense of thecommunity’s
responsibility.
Agricultural Development
ITC offers facilitation to farmers to form agri-business societies, pool knowledge andresources,
improve productivity and quality, and reach out beyond local markets to sell atbetter margins.
8|Page
CORPORATE STRATEGIES:
Sustain multiple drivers of growth, matching internal capabilities
with emerging market opportunities
Pursue World class competitiveness in all businesses and across
the entire value chain
Best-in-class in terms of:
Internal Vitality
Market Standing
Profitability
Strategy of Organization and Governance processes geared to
manage multiple businesses
Blend core competencies and leverage ITC umbrella strengths to
create new avenues of growth
ANALYSIS ON DIVERSIFICATION
9|Page
ITC has been a leader in the tobacco business, but it realize from the up coming trendsthat
remaining with a single business is not a noble thought, moreover the company wasthreatened of
the anti-tobacco campaign. Therefore the company decided to venture intoInfoTech with ITC
InfoTech, foods via Kitchens of India, greeting cards throughExpressions and lifestyle retailing
through Wills Sport. Each of these is intended to drawrevenues of at least Rs. 250 crore by 2005.
ITC was a cash rich company with a liquidity of Rs.8816 million in the cigarettebusiness, even
though the company understood the need and usefulness of diversification.The writer in the
article is mainly concerned with the way ITC spreads its wings in thelifestyle segments, he
writes:” forty-five stores in 34 cities in just under a year, selling anexpensive fashion brand of
relaxed-wear. If retail swamp-out and brand salience were thegoals, ITC’s Wills Sport would be
on a victory lap already.”
The company has started its retail stores not only in Indian metros but also in the smalltowns like
Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. the article also talksabout the strong market
campaign done by the company, it also describe how thecompany has used its brand image to
attract the Indian youth. It also tells about thestrategy adopted by the company to differentiate
itself in this segment, like the companyis outsourcing its designs formthe American Design
Intelligence Group (ADIG), a SanFrancisco, US-based garment and retail consultancy. Now it
has its own six-memberteam, even as it continues a tie-up with Science & Designs, an Italian
fashion designhouse – through which it keeps a watch on hot western labels such as Banana
Republicand Armani Exchange
10 | P a g e
PEST analysis
Political
• Huge burden of VAT
• Ban on communication
• Smuggling
Economical
• Bidee : cigarette ratio-10:1
Socio-culture
• Becoming status symbol
Technological
• State-of-the-art factories
• Development of IQMS
11 | P a g e
INTERNAL ANALYSIS:
The BCG matrix (aka B.C.G. analysis, BCG-matrix, Boston Box, Boston Matrix, Boston
Consulting Group analysis) is a chart that had been 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.
ANALYSIS:
Stars ?
Cows Dogs
• FMCG-Cigarettes
Market leadership
Powerful brands across segments
Leadership in all segments - geographic & price
Extensive FMCG distribution network
12 | P a g e
Direct servicing of 1,00,000 markets & 2 million retail outlets
World-class state-of-the-art technology and products
Investment - Rs.10 billion in six years
Exciting long term growth potential
Growth Potential:
Cigarettes account for only 15% of tobacco consumed in India unlike world
pattern of 85% due to prolonged punitive taxation
Cigarettes (15% of tobacco consumption) contribute nearly 85% of
Revenue to the Exchequer from tobacco sector
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 is appx. one tenth world
average : 141
Future growth depends on relative rates of growth of per capita income and
moderation in taxes
13 | P a g e
Farm linkages in 14 states covering Soya, Wheat, Rice, Marine products, Coffee
etc.
Unique CRM programme in commodity exports
Leveraging IT for the transformational ‘e-Choupal’ initiative
Rural India’s largest Internet-based intervention
Over 38000 villages linked through around 6400 e-Choupals servicing
over 3.5 million farmers
Distinctive sourcing capability for ITC’s Foods business
Capacity expansion underway at Bangalore and Chennai; plans for other locations
also being progressed
Fastest growing hotel chain with highest operating efficiency (PBDIT/Net Income
@ 45%) amongst the 3 leading chains
Leverages unique service proposition and international alliance with Starwood
Hotels & Resorts
• ‘Luxury Collection’ / ‘Sheraton
SWOT Analysis
14 | P a g e
ITC is one of India's biggest and best-known private sector companies. In fact it is one of
the World's most high profile consumer operations. Its businesses and brands are focused
almost entirely on the Indian markets, and despite being most well-known for its tobacco
brands such as Gold Flake, the business is now diversifying into new FMCG (Fast
Moving Consumer Goods) brands in a number of market sectors - including cigarettes,
hotels, paper, agriculture, packaged foods and confectionary, branded apparel, personal
care, greetings cards, Information Technology, safety matches, incense sticks and
stationery. Examples of its successful new FMCG products include:
•Aashirvaad - India's most popular atta brand with over 50% market share. It is also
present in spices and instant mixes.
•Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).
Strengths
Well known brand name
Respected company
Good distribution network and skills
Good product quality(business has been awarded
with ISO 9001:2000 by Det Norske Veritas.)
Di
Weaknesses ve
Still people connect ITC with a tobacco brand which is related with poor health rsi
and premature death. fie
d company trading in a number of business sectors
New Brands for New segements.
Still the company is dependent on tobacco for its revenue generation.
Opportunities
15 | P a g e
ITC is moving into new and emerging sectors including Information Technology,
supporting business solutions
Per capita consumption of personal care products in India is the lowest in the world
offering an opportunity for ITC’s soaps, shampoos and fragrances under their Wills
brand.
e-Choupal- project that has a goal of reaching 10 million farmers in 100,000 villages.
Threats
Changing customer needs and preferences
Threats from rival firms- domestic and international.
Western companies see India as an exciting opportunity for themselves to find new
market segments for their own offerings
16 | P a g e
v
q
.k
:M
Y
G
D
ff
p
tt
d
)fi
(1
B
N
H
T
ilti
w
C
y
c
th
fs
o
b
m
u
n
e
rg
a
*
V
A
-F
W
O
R
IE
L
P
U
S
With likert scale 1- high unfavourable,2-low unfavourable,3-nutrel,4-low unfavourable,5-high
favourable
17 | P a g e
1. 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, the
Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company.
2. 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.
3. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into
the hotels business was rooted in the concept of creating value for the nation .
ITC chose the hotels business for its potential to:
earn high levels of foreign exchange,
create tourism infrastructure and
generate large scale direct and indirect employment.
Since then ITC's Hotels business has grown to occupy a position of leadership, with over 90
owned and managed properties spread across India.
4. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this division merged
with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers
Division. ITC's paperboards' technology, productivity, quality and manufacturing processes
are comparable to the best in the world. It has also made an immense
contribution to the development of Sarapaka, an economically backward area in the state of
Andhra Pradesh. It is directly involved in education, environmental protection and
community development. In 2004, ITC acquired the paperboard manufacturing facility of
BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit
allows ITC to improve customer service with reduced lead time and a wider
product range.
5. In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. The merged entity was named
the Tribeni Tissues Division (TTD). To harness strategic and operational
synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the
Paperboards & Specialty Papers Division in November 2002.
18 | P a g e
6. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri 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. Now it extends to 10 states covering over 4 million
farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August
2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3
states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
7. In 2000, ITC launched a line of high quality greeting cards under the brand name
'Expressions'. In 2002, the product range was enlarged with the introduction of Gift
wrappers, Autograph books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and
'Expressions Paperkraft', a range of premium stationery products. In 2003, the company
rolled out 'Classmate', a range of notebooks in the school stationery segment. This way it
established itself as a brand for students and is performing excellently due to its quality
and price strategy.
8. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive
stores later expanded its range to include Wills Classic formal wear (2002) and Wills
Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its
men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the
country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained
recognition from buyers and retailers as the single largest B-2-B platform for the
Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration
Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss
Players'- a fashion brand in the popular segment for the young woman.
9. 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 Infotech 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 - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R
(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and
Media & Entertainment.
10. 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
19 | P a g e
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). 2003
witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in 2007. In just seven years,
the Foods business has grown to a significant size with over 200 differentiated products
under six distinctive brands, with an enviable distribution reach, a rapidly growing
market share and a solid market standing.
11. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis
brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
12. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005. Inizio, the signature range under Essenza Di
Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio
Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class
products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of
Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively.
The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-
market segment at select markets in October 2007 and Vivel De Wills & Vivel range of
soaps in February and Vivel range of shampoos in June 2008.
HRM POLICY
• ITC believes that all its employees must live with social and economic dignity and
freedom, regardless of nationality, gender, race, economic status or religion.
• ITC upholds international human rights standards, does not condone human rights
abuses, and creates and nurtures a working environment where human rights are
respected without prejudice.
20 | P a g e
• The Corporate Human Resources function conducts non-discrimination reviews annually
on a sample basis with unit heads and through on-site assessments.
• ITC Unit has appropriate systems and checks to ensure compliance with the Policy and
statutory provisions, including means for filing of grievances, collective bargaining
agreements and minutes from worker meetings.
• ITC does not employ any person below the age of eighteen years in the workplace. ITC
prohibits the use of forced or compulsory labour at all its units. No employee is made to
work against his/her will or work as bonded/forced labour.
• All major changes in operations involving work processes, manning norms and other
productivity linked issues are carried out after discussions with the employees and the
recognized unions at each location.
• ITC is committed to providing a safe and healthy work environment to all its employees.
These policy guidelines on HIV/AIDS are an endorsement of this commitment and, in
particular, of the Company's commitment to specific programmes and actions in response
to the HIV epidemic.
21 | P a g e
• Logistic/supply chain management enabling technologies cover a wide spectrum of
technology that facilitates smooth flow of goods and services and related information as
well as integration of business processes.
• The overall competitiveness of industry would increase by having proper operations and
logistic managements.
• ITC research and developed facilities Rajahmundry in AP cover all aspects of tobacco
crop cultivation. its collaboration with the central tobacco board research institute and
tobacco board ITC pioneered FCV tobacco cultivation in India and introduced the burley
and HDBRG varieties.
22 | P a g e
• IT creates new business process or restructure the current business process to enhance
customer service availability , efficient manufacturing / supply chain operations etc
Future Of Cigarettes
• An average of 2,800 people die every day in India with tobacco-related diseases.
• Cancer of lungs, lips, tongue, oral cavity, throat and larynx, uterus and urinary bladder
are some of the common tobacco-related diseases.
23 | P a g e
• Adding some 184 million people consume cigarettes, beedis and gutka every day.
• ITC researchers are continuously doing research on ayurvedic cigarette which would be
harmless.
CONCLUSION
• ITC promoting their brands through advertisement campaign as well as door to door
promotion.
• ITC is also focusing on Retailers and Wholesalers to promote their brand.
24 | P a g e
• The demand of their product in very low, because people don’t KNOW about their
brands very well.
• ITC knows their strength and weakness in the personal care market, so they are applying
new concept to overcome their weaknesses.
• ITC now offering more margins, exiting offers and long credit period to retailers and
wholesalers.
25 | P a g e