ITC Limited

ITC Evolution
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco
Company of India Limited by Wills, Watkins & Co. ( Henry Overton Wills
and his partner Watkins).
As the Company's ownership progressively Indianised, the name of the Company
was changed from Imperial Tobacco Company of India Limited to India
Tobacco Company Limited in 1970 and then toI.T.C. Limited in 1974. In
recognition of the Company's multi-business portfolio encompassing a wide
range of businesses - Fast Moving Consumer Goods comprising Foods,
Personal Care, Cigarettes and Cigars, Branded Apparel, Education and
Stationery Products, Incense Sticks and Safety Matches, Hotels,
Paperboards & Specialty Papers, Packaging, Agri-Business and
Information Technology - the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'

ITC - Financial Snapshot

Rs. Crores
DESCRIPTION

GROSS INCOME
GROSS TURNOVER
NET TURNOVER
MARKET CAPITALISATION
PBDIT
PBIT
PBT (before exceptional items)
PAT (before exceptional items)
PAT (after exceptional items)
EPS (before exceptional items) - Diluted - Rs.
NETWORTH
CAPITAL EMPLOYED
ROCE (%)
Book Value / Share
Total Shareholder Returns %

1995-96

2004-05

5188
5115
2536
5571
584
536
452
261
261
10.6
1121
1886
28
46

13585
13350
7639
33348 *
3028
2716
2673
1837
2191
73.5
7896
8517
32
317

CAGR (%)
1995-96 to
2004-05

11.3
11.2
13.0
22.0
20.1
19.8
21.8
24.2
26.7
24.0
24.2
18.2
24.0
23.4

* Market Capitalisation as on 31/3/05

(Rs. 1 crore = Rs. 10 million)

Market capitalisation @ 27/05/2005 : US $ 8.95 Billion

ITC
One of Indias most valuable corporations
One of the 8 Indian Companies to feature in Forbes A-list
for 2004

Featuring 400 of the Worlds best big companies & are rated as the most
attractive companies for investors

Only Indian FMCG Company to feature in Forbes 2000 List

A comprehensive ranking of worlds biggest companies measured by a composite

of sales, profits, assets & market value

Ranks No. 10 among Indian listed Companies by market Cap

6th amongst Private Sector; No. 1 in FMCG Sector

External recognition
Awarded the Golden Peacock Global Award for Corporate Social
Responsibility in emerging economies for 2005 by World Council for
Corporate Governance.
Sustainability Leadership Award 2007 conferred on Chairman Y C
Deveshwar by the Sustainability Forum, Zurich and SAM/SPG at the
International Sustainability Leadership Symposium
Business Today Award for the Best Managed Company Retail and
Consumer Products, has been conferred on ITC in recognition of its
outstanding initiatives in the consumer products segment.

ITC business profile

FMCG
Cigarettes

Foods

Personal Care

Lifestyle Retailing

Education & Stationery

Hotels

Matches

Paper &
Packaging

Incense Sticks

Agri
Business

Information
Technology

ITC Organisation Portfolio

Formal 3-tiered governance structure:
Board of Directors :
Comprising executive (4) and non-executive directors (8)
Strategic supervision
Corporate Management Committee :
Comprising executive directors and senior managers
Strategic management
CEO & Divisional Management Committee :
Executive management

FMCG - Cigarettes

ITCs Cigarettes Business

Market leadership
Powerful brands across segments
Leadership in all segments - geographic & price
Extensive distribution network
Over 900 wholesale dealers serving more than 1 million
retail outlets

World-class
products

state-of-the-art

technology

Investment - Rs.11 billion in six years

Exciting long term growth potential

and

Per Capita Adult Cigarette Consumption

(Sticks)
1662

1753

1190

561

488
141

USA

China

Pakistan

Nepal

India

World Avg.

Source : Based on Cigarette consumption data(2003) from

World Cigarettes, ERC Group plc.

Hotels & Tourism

Hotels & Tourism industry

Foreign arrivals into India - 3 million appx. vs
31 million in China
Today, Beijing alone has as many hotel rooms
as the whole of India

Indias luxury rooms availability lower than

even smaller East Asian countries

India

Malaysia

Singapore

Bangkok

80000
70000
60000
50000
40000
30000
20000
10000
0

HongKong

Luxury hotel rooms - East Asia

Source: Compendium of Tourism statistics, WTO

Indian hotel industry

Current supply - 80,000 rooms of which 5 Star
category accounts for less than 30%
To support GDP growth of 6% p.a., Indian room
capacity needs to double in five years
Present mismatch between supply and demand
expected to persist over the short term
As infrastructure for trade & commerce improves growing potential for leisure tourism

ITCs hotel business

One of three chains in India
Strategy to establish presence in key business locations to
complete the chain achieved in end 2004

Revenue leadership in most locations

Large tax advantages on investments on ITC
Balance Sheet

Amalgamation
Board meeting on 25th August 2004 approved scheme
of amalgamation for merger of ITC Hotels and Ansal
Hotels with ITC
Merger ratios:
3 shares of ITC for 25 shares of ITC Hotels
1 share of ITC for every 150 shares of Ansal Hotels

Merger effective from 1st April 2004

Agri Businesses
- Leaf Tobacco
- Agri Commodities

Indian Leaf Tobacco industry

India - the second largest producer of tobacco

But, Indian exports constitutes mere 0.7% of the value of

world trade in tobacco
ITC - Indias largest buyer, processor, consumer &
exporter of cigarette tobaccos

ITCs Agri Commodity Exports

Farm linkages in 14 states covering Soya, Wheat,
Rice, Marine products, Edible nuts, Coffee
Unique programme in commodity exports
Distinctive sourcing capability for ITCs Foods
business

ITCs strategic thrust

Cost effective extension services to enhance farm
productivity and quality, and better align farm produce
with requirements of the market, both domestic and
international

FMCG Business Initiatives

Branded Packaged Foods
Leverages:

Unique Agri sourcing skills

ITC Welcomgroups specialist cuisine & bakery knowledge
FMCG distribution synergies
ITC Group R&D Centre,Bangalore

4 chosen categories:
Staples
Aashirvaad Atta & Salt

Snack Foods
Sunfeast Biscuits, Pasta

Confectionery
Candyman, mint-o

Ready to Eat
Kitchens of India, Aashirvaad ReadyMeals

ITC stocks
BSE
Current market price: 293.35
Day high/low:295.00------292.50
NSE
Current market price: 293.05
Day high/low:295.00------291.75