ITC LIMITED ENSURING VALUE

One of India's most admired and valuable companies

Presented by:- anu n s GKMCMT COLLEGE

introduction

ITC is one of India's foremost private sector companies

ITC has a diversified presence in FMCG (fast moving consumer goods), Hotels, Paperboards& Specialty Paper, Packaging, Agri-business And Information Technology.

ITC is one of the country’s biggest foreign exchange earners (US$ 2 billion in the last decade).

Ranks no.4 among listed private sector companies

No.1 in FMCG sector

Rated as one of India's most respected companies by market cap.

Diversified group of companies with operations in various industry segments from cigarettes to apparels

.

Annual turnover is of the order US$ 2.4 billion.

PROFILE OF ITC

Type: Public

Traded as: BSE : 500875 BSE SENSEX Constituent

Industry: Conglomerate

Founded: August 24, 1910 (As Imperial Tobacco Company Of India)

Founder(s): Henry Overton wills

Headquarters: Kolkata, Westbengal, India

Chairman: Yogesh Chandler Deveshwar

Products: Tobacco, Hotels, Paperboards& Specialty Papers, Packaging,

Agri-business, Packaged Foods & Confectionery, IT , Branded Apparel,

Personal Care, Stationery, Safety Matches And Other FMCG Products.

Revenue: Us$ 7 Billion

Employees: 29000

Website; Www.itcportal.com

ITC is the only Indian company to be ranked amongst

the top 10 global FMCG companies in value creation

during the period 2009-13

The only Indian company to feature consistently amongst the top 10 global FMCG

companies.

One of India's most valuable & admired companies

ITC ranked as the most admired company in India in 2014 (fortune- hay group survey).

One of the foremost in the private sector in terms of:

- Sustained value creation( BT-stern Stewart survey)

-operating profits

- Cash profits

ITC was ranked 3rd among 40 leading

companies in the Nielsen corporate image

monitor.

ITC’S vision statement

Sustain ITC’S position as one of India's most valuable and

admired corporations through world-class performance,

creating growing value for the Indian economy and the

company’s stakeholders.

ITC performance track record

1995-96 2013-14 18 yr 95-96 to 13-14

Net revenue

PBDIT

PBIT

PBT

PAT

Capital employed

ROCE%

Market capitalization

Total shareholder returns%

2,5365845364522611,88628.4

5,571

32,88313,56212,66212,6598,78527,62645.8

280708

15.3%19.1%19.2%20.3%21.6%16.1%

24.3%25.9

Awards & accolades (1)

Harvard business review

ranked ITC chairman Y C

Deveshwar as the 7th best

performing CEO in the

world

Chairman Y C

Deveshwar was

conferred the Padma

Bhutan the government

of India 2011

ITC conferred the

prestigious ‘world

development award

2012’ at the rio+20

UN summit for its

social and forestry

initiatives.

ITC grand chola, the

world’s largest

LEED platinum

rated hotel in the

new construction

category, launched in

September 2012

Awards & accolades (2)

Rainforest alliance

awarded ITC’S

bhadrachalam unit,

the forest

stewardship

council forest

management

certification

Business world

FICCI CSR award

in large enterprise

category

AIM Asian CSR

award by the

Asian forum on

corporate social

responsibility

Best overall

corporate social

responsibility

performance :

institute of public

enterprise

ITC hotels awarded

the most trusted

hotel brand in the

public choice

honours category at

the times travel

honours

Award& accolades (3)

E-choupal initiative wins global recognition:

- World development report 2008 published by world bank

- Stockholm challenge award 2006

- Corporate social responsibility award from the energy and recourse institute

- World business award 2004

- Harvard university

Product profile

hotel

cigarettes

Incense sticks

Personal care

Safety matches

Agricultural industry

Information technology

Paper books

stationery

Branded apparel

ITC business portfolio

Cigarettes foods personal care lifestyle retailing

Education & stationary Safety matches & incense stick

ITC BUSINESS PORTFOLIO

Hotels Paper boards, paper & packaging Agri business

Information technology

ITC’S Cigarettes business

Market leadership

- Leadership across all segments-geographical & price

Extensive FMCG distribution network

- Direct servicing of 100000 markets & 2 million retail outlets

State-of-the-art technology and world class products

Cigarette industry in India

Other tobacco products

88%

Legal cigarette12%

Consumption share

Per capital consumption of tobacco in India(per year)

1145

1256

438 461 468

743

china USA Pakisthan nepal india world

Series 1

Per capital cigarette consumption –per annum

Although India accounts for17% of world population, its share of world cigarette consumption

is just 1.8%

Rapid scale up of FMCG businesses

563

10131704

2511

3014

36424482

55457012

8122

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14

World-class brands for Indian consumers

Branded packaged foods portfolio

Biscuits, Staples, Snacks, Noodles & Pasta, Confectionery& Ready to Eat

Some recent launches

Branded Packaged Foods records further improvement in market standing during the

quarter

Personal care products

Portfolio approach straddling all consumers segments with 4 umbrella brands

- Essenza Di Wills

- Fiama Di Wills

- Vivel

- Superia

Complemented by engage brand in the deodorants segments.

Products continue to receive encouraging consumer response; engage does well received by large consumers

Some recent launches

Education & Stationery Products Business

Leverages print and paper know-how to address suitable opportunities in the stationery market.

Industry growth driven by increasing literacy and enhanced scale of government and public- private initiative in education.

The business continues to consolidate its market standing

- Classmates: Market leader in Notebooks segments

Lifestyle retailing

Exclusive WILLS LIFESTYLE stores(98) across 40 cities and more than 700 shop-in-shops in leading departmental stores and multiband outlets.

Strong distribution network in place for the mid-market brand john players

- available in more than 400 exclusive branded outlets

ITC hotels

Hotel & tourism industry

Foreign tourist arrivals improves in Q2 @ 13% Vs. 10%

inQ1 and 5% in FY14.

Current room inventory 210000 rooms of which 52000

rooms are in the luxury and upper scale segments.

India needs an additional 60000 rooms in luxury and

upscale segments in the next 5 yrs.

ITC hotels

The chain: 98 properties across 70 locations:-

- 4 brands – ITC hotels, welcomhotel, fortune & welcomheritage

- 20 five- stare deluxe/ five star properties with 4500 rooms

- 42 fortune hotels with 3500 rooms

- 35 welcomheritage properties with 850 rooms

ITC Grand Bharat Manesar 104 all suit resort opened on 14th nov 2014

ITC hotels: world’s greenest luxury hotel chain

Paperboards & packaging business

Agri business

NO1: IN LEAF TOBACCO

NO:2 IN AGRI COMMODITIES

PIONEER IN RURAL TRANSFORMATION

Competitors of ITC LTD.

Golden tobacco limited.

Godfrey Philips India ltd.

VST Industry ltd. (Vazir Sultan Tobacco Company).

RTCL Ltd. (Raghunath Tobacco Company Ltd).

Hindustan Unilever Ltd.

Marico

ITC key financials -2013-14

2013-14 2012-13 Goly%

Gross turnover

Net turnover

PBDIT

PBIT

PBT

PAT

46713328831356212662126598785

41810296061156610771106847418

11.711.117.317.618.518.4

RS.Cr.

Segment revenue- 2013-14

Segment revenue (net)

a) FMCG – Cigarettes

- Others

Total FMCG

b) Hotels

c) Agri Business

d) Paperboard Paper &

Packaging

Total

Less: inter segments

revenue

Net sales/ income from

operations

15456809923555113377524861

373014418

32883

13970698320953107472014237

334643859

29606

10.616.012.45.57.714.7

11.514.511.1

FULL YEAR GOLY%

ITC’S economic contribution to the nation

10 yr value addition RS 1.9 lakh crore (US$ 39 billion)

- 75% of value addition accrued to the exchequer.

- among the top tax payers in the nation.

- excise payments represent.

Foreign exchange earnings in the lat 10 yrs: US$ 6 billion.

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.

The demand of their product in very low, because people don’t knows about their brands very well.

ITC knows their strength and weakness in the personal care market, so they are applying new concepts to overcome their weaknesses.

ITC now offering more margins, exiting offers and long credit period to retailers and wholesalers.