ITC Limited
ITC Limited
ITC Limited
ITC is one of India's most diversified consumer production facilities across the country. Certain
goods company having increasingly reduced its initiatives of the company such as the ITC e-
deoendence on its core cigarette business. Choupal, ITC Choupal Saagar and the ITC social
farm forestry programme have been recognised
Background through internationally acclaimed awards for their
impact on rural life.
ITC was incorporated in 1910 under the name
of Imperial Tobacco Company of India Limited ITC's diversified status originates from its
(later changed to ITC Limited in 1974). corporate strategy aimed at creating multiple
It was initially in the cigarette and drivers of growth, anchored on its core
tobacco business and later diversified competencies of strong distribution
into multiple businesses including reach, superior brand-building
hotels, paperboards and speciality capabilities, effective supply chain
papers, packaging, agri-business, management and service skills in
packaged foods and confectionery, hoteliering. Its distribution reach is
branded apparel, greeting cards one of the largest in India – the FMCG
and other FMCG products. business has a retail network over
2 million retailers in the
The company entered the country, ranging from premium
hospitality business in 1975. In outlets in the metros to small
1979 it entered the paperboards shops in the interiors of
business by promoting ITC rural India.
Bhadrachalam Paperboards Limited, which
was later amalgamated with ITC. In 1992, leveraging Currently British American Tobacco Company (UK)
its agri-sourcing competency, ITC set up the controls 32 per cent equity stake in ITC. Domestic
International Business Division for export of agri- financial institutions hold 35 per cent share and
commodities. More new lines of businesses have foreign institutions have a 15 per cent share. Indian
followed since 2001 in the space of FMCG.The public and corporate bodies hold the balance 13
company’s products are manufactured at multiple per cent stake.
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FMCG products Brands
Cigarette • Domestic market - India Kings, Gold Flake, Navy Cut, Scissors, Capstan, Berkeley and Bristol
• USA - Checkers, Hi-Val, Royale Classic and Gold Crest
• Middle East - Royale Classic, Gold Cut and Scissors Filter King
Staples • Aashirvaad
ITC has leveraged its paperboard and packaging hotels and approximately. 5200 rooms in India.
business to market branded stationery and These include heritage palaces, havelis and resorts
greeting cards.The company is also into marketing under the sub-brand WelcomHeritage, full service
of safety matches and incense sticks, sourced from budget hotels under the brand name Fortune,
the small-scale and cottage sector.The range of super deluxe ‘ITC Hotels’ and five star hotels
FMCG products leverage its core strengths in under the brand ‘WelcomHotel’. Currently 10 of
marketing and distribution, brand building, supply the ITC-Welcomgroup hotels are marketed world-
chain management and paperboard and packaging. wide by the Sheraton Corporation, which is part of
Starwood Hotels & Resorts, the well-known global
Hotels: ITC has one of India's finest hotel chains hospitality chain.
under the brand name ITC-Welcomgroup with 60
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Choupal Saagar. It creates a platform for farmers to
sell their produce as well as buy quality products
for their farm and household consumption. It
provides farmers additional services under one
roof like soil testing, banking, insurance, medical
facilities and restaurant. Going forward, these malls
would serve as part of the core infrastructure to
support ITC's rural distribution strategy. 10
‘Choupal Saagars’ are now operational in the 3
states of Madhya Pradesh, Maharashtra and Uttar
Pradesh while 9 more are in an advanced stage of
construction.
Financial analysis
Paperboards and packaging: The products ITC has witnessed continued growth momentum
under the paperboards and speciality papers ensured by the sustained leadership in the
business include coated and uncoated boards, cigarettes business and rapid ramp-up of non-
writing and printing paper, kraft paper and speciality cigarettes portfolio. Double-digit growth has been
paper.The company is the country's largest reported for the company on account of new
converter of paperboard into packaging for a product launches and entry into new categories.
variety of industries.
Cigarettes • Has launched its own brands in the US and Middle East
• Largest company in Nepal
Foods & agri-products • Packaged foods brand ‘Kitchens of India” exported to US, Canada, UK and Switzerland
• Branded sea foods exported to US, Europe and Japan
• Supply chain partner of several leading international customers for agri products- Coke,
Abudhabi Flour Mill, Mitsubishi
• Supplies tobacco to customers in 37 countries
Paper & packaging • Exports of coated boards to Malaysia, Sri Lanka, Bangladesh, Iran, Australia, UAE, Saudi
Arabia, Singapore, UK, Italy, Netherlands and China
• Exports of cigarette tissues and décor paper for laminates to Iran, Indonesia, Philippines,
Nepal, Bhutan and Bangladesh
• Supplies packaging for 15 billion cigarette sticks a year for the export market
Safety matches • Export of premium brands of safety matches to Europe, Africa and the USA
ITC is also the largest buyer, processor and In the paper business, ITC’s strong backward
exporter of cigarette tobaccos in India and has integration in the value chain and its
been the country’s single largest integrated source technologically advanced plants for packaging and
of quality tobaccos for customers in 37 countries printing and paperboards and speciality papers
over the last six decades. enable it to export quality products at
international prices. Its packaging and printing
In addition to the above businesses, ITC has a plants have been awarded the Greentech
presence in the IT industry through ITC Infotech Environment award, CAPEXIL export award and
India Limited, a wholly owned subsidiary, based in World Star, Asia Star and India Star awards for
Bangalore (Karnataka). ITC Infotech offers in-depth excellence in packaging.
domain knowledge in the areas of manufacturing,
hospitality services, retail, FMCG, paper and
packaging and commodities to its clients.Through
its wholly owned software subsidiaries in the UK
and US, ITC Infotech services multiple Fortune
Class clients.These include Unilever, Abbey
National, British American Tobacco, ClientLogic,
DHL, etc.