38490269-ITC-PPT (1)

Imperial Tobacco Company of India Limited (ITC).: 

Imperial Tobacco Company of India Limited (ITC). Presented to : Presented by

INTRODUCTION: 

INTRODUCTION ITC Limited which previously stood for ‘ 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. Forayed into field of FMCG, IT, Agri - business to obtain different revenue stream. Successful in Hotel Business(ITC welcome group) and collaborated with Sheraton Corporation.

Contd..: 

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.

Slide 4: 

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 DIVERVICATION: 

NEED FOR DIVERVICATION Core business of ITC is in the manufacture of cigarettes and tobacco. On domestic front, it realised 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 and started entering those business that provides good ROI and a potential for future expansion. Leads to concentrate to the other business opportunities.

Slide 6: 

DIVERSIFICATION OF ITC

Diversification Strategy: 

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.

Slide 8: 

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 designs and value added features such as AIM . Hotels(1975) Four brands- ITC Welcomgroup , Welcomhotels , Fortune hotels, Welcomheritage

SWOT Analysis: 

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 analysis: 

PEST analysis Political Ban on communication Luxury tax 100% FDI allowed Economical Bidee : cigarette ratio-10:1 Profit margin is high Other forms of cheap tobacco intake Socio cultura l 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.: 

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: 

Porters 5 forces In case of tobacco industry

Market share of ITC Ltd.: 

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. Source: Annual Accounts/Equity research

Critical Success Factor: 

Critical Success Factor SITE AND LOCATION FINANCIAL STRENGTH BRAND RECOGNITION YIELD MANAGEMENT

Corporate Social Responsibility: 

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: 

HONOURS & AWARDS Ranked 4 th 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 ‘Millennium Development objectives due to leading role in reducing poverty and creating work opportunities at a national level. Received ‘Enterprise Business Transformation Award 2004’ for Asia pacific region by Wharton Infosys.

Issues with ITC: 

Issues with ITC Advertisement ban 2003 Analyst view Decrease in sales of Cigarettes Luxury tax Regulatory laws Health awareness

Recommendation: 

Recommendation Should develop strong hold on non-tobacco business Rural market should be more explored Promotional methods should be emphasized Export of their confectionery items CSR could help in holding their image More ventures could enhance their presence

: 

Thank you ITC. Touching your life. Everyday