ppt on ITC

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Imperial Tobacco Company of

India Limited (ITC).

Presented to :united world school

of businessFirst year student

Presented by

Kumar shivender



INTRODUCTION ITC Limited which previously stood for µ Imperial Tobacco Company

one of India's foremost private sector companies.

Transform itself from a leading Cigarette manufacturer to an umbrella

group which offers diversified products.

Successful in Hotel Business(ITC welcome group) and collaborated

with Sheraton Corporation.



Contd.. 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.

ITC's Agri-Business is one of India's largest exporters of

agricultural products.



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: To enhance the wealth generating capability of the

enterprise in a globalizing environment, delivering superior and

sustainable stakeholder value.

VISION & MISSION



NEED FOR DIVERSIFICATION

Core business of ITC is in the manufacture of cigarettes and

tobacco.

On domestic front, it realized that there was huge revenue

potential for a launch of wider product range to the Indian

consumer base.

ITC¶s FMCG business has one of largest retail networks in the

country(2 million retailers)

Government ban on advertisements of cigarettes, high tax rates,

decline for the demand of cigarettes.

The company felt the to diversify from the early 1970 andstarted entering those business that provides good ROI and a

potential for future expansion.

Leads to concentrate to the other business opportunities.



Hotel

Cigaretes

IncenseSticks

PersonalCare

SafetyMatches

Agricultu-ral

Industry

InformationTechnology

Paperboards

PackagedFoods

Stationery

BrandedApparel

DIVERSIFICATION OF ITC



Diversification Strategy

Cigarettes :

Focus to deliver highest product quality and value to consumers helps

them to lead in cigarettes industry.

To boost sales growth introduce festivals packs of brands like: flake

filter, bristol filter, berkeley filter and Scissor filter.

Branded food business(2001):

Launch kitchen of India(Canned foods from ITC Bukhara

restaurants).

Brand offers ready to serve products.

Introduced Aashirwad brand of wheat(atta) in 2002.

Entered into biscuit market by launching Sunfeast brand in 2003.



Stationery products:

Launch greeting cards under the brand name Expressions.

Gain popularity due to introduction of cards in different

languages.

Safety matches

Increase market share and its sales by offering unique designsand value added features such as AIM.

Hotels(1975)

Four brands- ITC Welcome group, Welcome hotels,Fortune hotels, Welcome heritage



SWOT Analysis

Strength

Cigarette market is 22,000 cr and ITC has

lion¶s share in it

Strong brand recognition and product portfolio

Distribution network

Management

Weakness

Dependence on tobacco revenues

Negative Connection of Tobacco

Opportunity

Low per capita consumption

Of personal care products

Rural Market

E-Choupal

Threat

Competition both Domestic & International

Increasing Tax on cigarettes

Regulatory restrictions on cigarettes

Ban on smoking

Terror attacks



PEST analysisPolitical Ban on communication

Luxury tax

Economical Bidee : cigarette ratio-10:1

Profit margin is high.

Other forms of cheap tobacco intake.

Socio cultural Becoming status symbol.

Changing attitudes towards tobacco.

May 31 is no tobacco day.

Change in life style.

Technological Cheap labour supply.

Adapting other concepts like QC,TQM etc.



The BCG Matrix for ITC Ltd.Stars

Hotels

Paperboards/

Packaging.

Agri business.

?

FMCG- Others

ITC Infotech

Cows

FMCG-Cigarettes

Dogs

Branded apparel



Porters 5 forces

Low bargaining power of customer

High bargainng power of supplier

High threats of new entrants

High rivalry

Low substitutesdue to strict laws

In case of tobacco industry



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.



Critical Success Factor

SITE AND LOCATION

FINANCIAL STRENGTH

BRAND RECOGNITION



Corporate Social Responsibility

ITC's businesses generate livelihoods for over 5 million people.

ITC's globally recognised e-Choupal initiative is the world's largest rural

digital infrastructure benefiting over 4 million farming families.

ITC's Social and Farm Forestry initiative has greened over 80,000 hectares

creating an estimated 35 million person days of employment among the

disadvantaged.

ITC's Watershed Development Initiative brings precious water to nearly

35,000 hectares of dry lands and moisture-stressed areas.

ITC's Sustainable Community Development initiatives include women

empowerment, primary education.



HONOURS & AWARDS

Ranked 4th in net profit amidst India¶s private sector corporation,

Forbes magazine under the section of world¶s leading

companies(2004).

Received the world business award in 2004 initiated as a part of United Nations µMillennium Development objectives due to leading

role in reducing poverty and creating work opportunities at a national

level.

Received µEnterprise Business Transformation Award 2004¶ for Asia

pacific region by Wharton Infosys.



Issues with ITC

Advertisement ban 2003

Analyst view Decrease in sales of Cigarettes

Health awareness



ITC. Touching your life. Everyday



ITC

Cigarettes

ITC Hotels

ITC FMCG goods

Stationery

Ex pressions

E- choupal

COMPETOTERS

GPI (godfrey phillips india

ltd)

Hotel oberoi

Hul, p&G

Navneet

Archies

IFFCO and others




Products of ITC




Stationary, paper & cards




Cigarettes




ITC Hotels


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