Corporate strategy of ITC Limited

Presented by: kumari priyanka toshali dey Rima mallik Kuldeep shivhare

 To understand the strategic management initiatives implemented by ITC Ltd. by perusing the following areas What is ITC Ltd? Diversifications Contribution of products towards the Group

What is ITC Ltd.?

INTRODUCTION
Started on August 24, 1910 as Imperial Tobacco Company of India Limited Became India Tobacco Company Limited in 1970 Renamed as I.T.C. Limited in 1974 Over the years built a portfolio encompassing a wide range of businesses.

Rechristened as 'ITC Limited on September 18, 2001

Current Market capitalization of over US $ 33 billion Current Turnover of US $ 7 billion

ITCS LIST OF BUSINESSES

Cigarettes Life Style Retail Business Division(LRBD) Hotels Paperboards & Specialty Papers Packaging Agri-Business Division e-Choupal

 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 Companys stakeholders.

Mission
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value . Aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders, includes Trusteeship, Customer Focus, Respect For People, Excellence, Innovation and Nation Orientation.

CORPORATE STRATEGY
Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive.

 Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organization by nurturing talented and focused management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

THE ITC JOURNEY

Initial years primarily devoted to growth of Cigarettes and Leaf Tobacco businesses. Packaging & Printing Business set up in 1925 as a strategic backward integration

In 1975, the Company launched its Hotels business with the acquisition of a
hotel in Chennai which was rechristened 'ITC Welcomgroup Hotel Chola In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. In 1990, ITC acquired Tribeni Tissues Limited, a major supplier of tissue paper to the cigarette industry.

THE ITC JOURNEY.(CONTD.)

In 1990, set up the Agri Business Division for export of agricommodities. Entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear in 2000 In 2000, ITC spun off ITC Infotech India Limited 2002s Safety Matches initiative; brands like iKno, Mangaldeep and Aim. In 2003 forayed into the marketing of Agarbatti; Mangaldeep. Launched range of notebooks under brand Paperkraft in 2002 & Classmate in 2003. 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry Boxes, Pens and Pencils under the 'Classmate' brand. ITC entered the Personal Care Business in 2005; 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands.

THE ITC JOURNEY..

ITC's foray into the Foods business In August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered confectionery and staples segments : launched mint-o , Candyman and Aashirvaad 2003 witnessed introduction of Sunfeast (biscuits segment). Entered branded snacks category with Bingo! in 2007 In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market

Contribution of products towards the Group

FACTS - NET PROFIT UP 20.2% FOOD BUSINESS

Non - Cigarette FMCG segment registers robust revenue growth of 23% 'Aashirvaad' atta strengthened its leadership position across markets & with value-added offerings like 'Multi-grain' and 'Select' brands, the Staples category improved margins. 'Sunfeast Yippee!' noodles continued to garner consumer franchise 'Sunfeast' biscuits sustained its robust growth trajectory, launched 'Kaju Badam Cookies response been encouraging. The Bingo! range of potato chips and finger snacks grew at a rapid pace. 'Tangles and 'Mad Angles Masti Chaat' were well received by target consumers

FACTS - NET PROFIT UP 20.2% PERSONAL CARE

The Personal Care Products business made significant strides during the quarter with its carefully crafted portfolio of product offerings under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia' brands, further gaining consumer franchise. The skin care category was fortified with the launch of 'Vivel Summer Fair', a differentiated summer specific offering with Triple Filter SPF 15 and Aloe Vera for fresh, fair skin. Together with 'Vivel Active Fair' and 'Superia Super Fair', the augmented portfolio of fairness creams continues to receive encouraging consumer response and is being rolled out to target markets.

FACTS - NET PROFIT UP 20.2% EDUCATION & STATIONERY PRODUCTS

The Education & Stationery Products business registered impressive growth powered by the 'Classmate' brand which continued to consolidate its leadership position in the student notebooks category. In the writing instruments and scholastic products categories, the business introduced a number of new products and variants in pens, pencils and scholastic products under the 'Classmate and 'Paperkraft' brands.

FACTS - NET PROFIT UP 20.2% CIGARETTES

Several initiatives across the portfolio in terms of pack modernization and introduction of variants and limited edition packs under the Classic', 'Flake', 'Gold Flake Premium Filter' brands further bolstering market standing

Also test marketing filter cigarettes of length not exceeding 65 mm.

On the manufacturing front, investments continued to be made towards enhancement of quality, productivity and variety.

FACTS - NET PROFIT UP 20.2% HOTELS

In line with its investment led growth strategy, given the compelling longer term potential of this sector, the Company, through a newly formed subsidiary, acquired a prime plot of land in Colombo, Sri Lanka on a 99-year lease from the Government of Sri Lanka, for developing a 5- star luxury property. The super luxury property, ITC Grand Chola at Chennai, is complete and awaiting statutory clearances prior to commercial launch. The construction activity of the new luxury properties at Kolkata and at Classic Golf Resort near Gurgaon are progressing satisfactorily.

FACTS - NET PROFIT UP 20.2% PAPERBOARDS, PAPER & PACKAGING

Segment Revenues recorded a growth of 9% Segment Results grew faster at 17% driven primarily by continuous enhancement in the product mix. The business continues to leverage its state-of theart facilities to provide strategic sourcing support to the FMCG businesses, enabling product differentiation and faster speed-to-market.

FACTS - NET PROFIT UP 20.2% AGRI BUSINESS

The business continues to provide strategic sourcing support to the Company's Cigarettes and Branded Packaged Foods business by ensuring high quality supplies at optimal costs. The new green leaf tobacco threshing facility in Karnataka is fully operationalized and will further enhance quality and improve supply chain efficiencies.

SWOT ANALYSIS
Strength Brand Management Opportunity Rural market E-choupal Weakness Unrelated diversification

Threats Increasing tax in Cigarettes Health hazard

THE BCG MATRIX FOR ITC LTD.

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

Dogs

Segment Cigarettes Paper & Packg. Agri business Hotels FMCG (Others)

Dominance 70% share Packaging board No. 1 in Asia 1of the largest xporters from India ITC Group ranks No.2 20% share of greeting cards market, 'Aashirvaad' atta is No.1 in branded segment

Contribution % Revenue PBIT 77.0% 7.3% 7.0% 4.3% 4.4% 87.7% 10.7% 3.7% 5.4% -7.5%