Introduction

 Background of ITC
 Product Diversification
 Reasons to enter Food Industry
 Ready to eat food products
 Confectionery
 Staples
 E-Choupal
 Biscuits
 Challenges
 Future prospects
 BACKGROUND OF ITC LTD.
 ITC was established on August 24, 1910 as Imperial Tobacco
Company of India Limited in Kolkata.
 The name of the Company was changed from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in
1970 and then to I.T.C. Limited in 1974.
 In recognition of the Company's multi-business portfolio -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Foods, Lifestyle Retailing, Education etc. – on September 18, 2001.
the Company is now named 'ITC Limited'.
 Though the first six decades of the Company's existence were
primarily devoted to the growth and consolidation of the Cigarettes
and Leaf Tobacco businesses, the Seventies witnessed the
beginnings of a corporate transformation.
 PRODUCT Diversification
 ITC's Packaging & Printing Business was set up in 1925.
 In 1975 I.T.C. Ltd. tied up with the US based Sheraton Corporation
through ITC-Welcomgroup to enter Hospitality industry.
 ITC established ITC Bhadrachalam paperboards Ltd.{IBPL} in 1975.
 Also in 1990 ITC set up the Agri Business Division for export of agri-
commodities. ITC's unique and now widely acknowledged e-
Choupal initiative began in 2000 . ITC's first rural mall, christened
'Choupal Saagar' was inaugurated in August 2004 at Sehore.
 In 2000, ITC forayed into the Greeting, Gifting and Stationery
products business with the launch of Expressions range of greeting
cards. the popular range of notebooks was launched under brand
“Classmate” in 2003.
 PRODUCT DIVERSIFICATION
 In 2000, ITC entered the information technology business through a subsidiary,
ITC Infotech India Limited. Today ITC Infotech is one of India’s fastest growing
global IT and IT-enabled services companies.
 In 2002,Company launched clothing brand John Players.
 in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian
gourmet dishes.
 In 2002, ITC entered the confectionery with brands mint-o and Candyman
confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's
entered the fast growing branded snacks category with Bingo! in 2007.
 In 2002, ITC's philosophy of contributing to enhancing the competitiveness of
the entire value chain found yet another expression in the Safety Matches
initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim,
Aim Mega and Aim Metro.
 PRODUCT DIVERSIFICATION

 ITC's foray into the marketing of Agarbattis (incense sticks) in

2003 marked the manifestation of its partnership with the
cottage sector. ITC's popular agarbattis brands include Spriha
and Mangaldeep.
 ITC introduced Essenza Di Wills, an exclusive range of fine
fragrances and bath & body care products for men and
women in July 2005. Inizio, the signature range under Essenza
Di Wills provides a comprehensive grooming regimen with
distinct lines for men (Inizio Homme) and women (Inizio
Femme).
 Reasons to enter food industry

Government ban over cigarettes ads and anti

tobacco campaign.
Liberalization of Indian Economy.
Increase in per capital income.
Utilization of existing business infrastructure.
 Ready to eat

 Kitchen of India brand launched in 2001.

 Sub-brands Bukhara, Dum Pukht and Dakshin as
premium brands.
 Aashirvaad brand extended in ready-meals as low
price product.
 In 2004 KOI brand lunched spice conserves and cooking
pastes.
 ITC won National Excellence Award in2004 for Ready To
Eat products .
 Hurdles- Lack of culinary skills and infrastructure.
 confectionery

 In 2002 acquired Mint-O from Candico India Ltd and re-

launched it.
 In 2003 launched candyman a boiled sugar candy in
different flavour.
 Mint-O extended to Mint-o-Fresh in 2004-a mouth freshner
as a impulse product.
 In 2005 Cofitino was launched as product extracted from
natural coffee beans.
 ITC used its cigarette distribution network as a asset
covering more than1.5 million retailers.
 ITC has 8-9% market share of a market worth Rs19 billion
 staples

 ITC launched Ashirvaad brand for wheat flour in 2002.

 Brand positioning of the brand was on ‘Health and
Hygiene’ issue and on value for money.
 Hurdles-The stock should be fresh but should not run
out.
 Supply chain made responsive using distributor
response.
 Freshness maintained by reducing transit time.
 Cost advantage using electronic procurement called e-
Choupal and its printing and packaging business.
 sanchalaks
Agricultural
Internet kiosks produce

•Strong supply chain

management
•lower net cost of
procurement
 In 2003, ITC entered in Biscuit industry with three
varieties of biscuits- glucose, marie, and cream.
 Target - Children in the age group 4-14 and their
mothers.
 Advertisements focused on product attributes.
 ITC’s Strategy- To increase market share by launching
new product. Products- Sunfeast Milky magic,
Sunfeast strawberry Cream, Sunfeast Pineapple
Cream & Sunfeast Coconut.
 Shahrukh khan as the brand ambassador for sunfeast
 Sponsored event “The Sunfeast Open 2005”- a
women’s tennis event
 Launched an environmental awareness
program-”Sunfeast Hara Banao Campaign”
 Expanded its product line with the launch of
Sunfeast Golden Bakes & Sunfeast Snacky
 Main competitors are Parle-G and Britannia
“ We decided not to play on our competitors’
turf; our aim was to create new markets for
ourselves.”said Hemant malik, Head of
marketing, ITC foods.
 In march 2006, ITC had decided to set up its
own manufacturing facilities in Karnataka &
Uttaranchal to produce biscuits.
 Competition from unorganized sector
 Require huge amount of money
 Low margin
 Consumption was lower Compare to
Developed countries.
 Competition from Parle-G & Britannia in
Biscuits business.
 Increase in the production cost
 Taxes & VAT {Value Added Tax}
 Future plans
 Going forward, the roadmap include plans to integrate bulk
storage, handling & transportation to improve logistics
efficiency.
 Establish ‘E-chaupal’ as a new age cooperative for all
practical purposes.
 ITC plans to extend its E-Chaupal initiative to 15 states
across India over the next few years.
 Planning to launch some other services with their E-
Chaupal program like:
Micro-credit
Health
Education