Cover Page

REPORT ON

ITC LTD.
For
Company Based Research
By SACHI PRIYA
21385

Post Graduate Diploma in Management Batch:

2021-23

New Delhi Institute of Management

50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail:[email protected] Website: www.ndimdelhi.org
 SUBMITTED BY :-

NAME:- SACHI PRIYA

ROLL NUMBER:- 21385
SECTION:- HA
 INTRODUCTION:

OVERVIEW OF THE COMPANY

ITC is one of India's foremost private sector companies and a diversified conglomerate with
businesses spanning Fast Moving Consumer Goods, Hotels, Paperboards and Packaging, Agri
Business and Information Technology. The Company is acknowledged as one of India's most
valuable business corporations with a Gross sales value of ₹ 74,979 crores and Net Profit of ₹
13,032 crores (as on 31.03.2021). ITC was ranked as India's most admired company, according
to a survey conducted by Fortune India, in association with Hay Group.

Multiple Drivers of Growth

ITC is the country's leading FMCG marketer, the clear market leader in the Indian Paperboard
and Packaging industry, a globally acknowledged pioneer in farmer empowerment through its
wide-reaching Agri Business, a pre-eminent hotel chain in India that is a trailblazer in
'Responsible Luxury'. ITC's wholly-owned subsidiary, ITC InfoTech, is a specialized global
digital solutions provider.
Over the last decade, ITC's new Consumer Goods Businesses have established a vibrant
portfolio of 25 world- class Indian brands that create and retain value in India. ITC's world
class FMCG brands including Aashirvaad, Sunfeast, Yippee!, Bingo!, B Natural, ITC Master
Chef, Fabelle, Sunbean, Fiama, Engage, Vivel, Savlon, Classmate, Paperkraft, Mangaldeep,
Aim and others have garnered encouraging consumer franchise within a short span of time.
While several of these brands are market leaders in their segments, others are making
appreciable progress.
History and Evolution

Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The Company was
incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.
As the Company's ownership progressively Indianised, the name of the Company was changed
to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition
of the ITC's multi-business portfolio encompassing a wide range of businesses, the full stops
in the Company's name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym or an initialized form.

A Modest Beginning

The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was
the centre of the Company's existence. The Company celebrated its 16th birthday on August
24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru
Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more
ways than one. It was to mark the beginning of a long and eventful journey into India's future.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two
years later, would go on to become one of Kolkata's most venerated landmarks.

2010: Expanding the Tobacco Portfolio

In 2010, ITC launched its hand rolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining restaurants
and exclusive clubs.
Management Board

CHAIRMAN & MD :-

Mr. Sanjiv Puri

Sanjiv Puri is the Chairman &

Managing Director of ITC effective
May 13, 2019. He was appointed as a
Director on the Board of ITC with
effect from December 6, 2015 and
Chief Executive Officer from
February 5, 2017.

EXECUTIVE DIRECTORS:-

Sumant Bhargavan
Nakul Anand Executive Director Sumant
Executive Bhargavan (58) was appointed
Director as a Whole time Director on the
Nakul Anand (65) was Board of ITC
appointed as a Whole time effective November 16, 2018. He
Director on the Board of ITC is responsible for overseeing the
effective January 3, 2011. He FMCG Businesses
oversees the Hospitality, Travel
& Tourism, and Lifestyle
Retailing Businesses
 Rajiv Tandon
Executive Director
Rajiv Tandon (68) was appointed
as a Whole time Director on the
Board of ITC effective January
22, 2016. He is responsible for
Finance, Accounting, Internal
Audit & IT Functions

GLOBAL PRESENCE OF ITC:-

Hierarchy / Organizational Structure

Products & Services

ECONOMICS
Q1. Competitors of ITC.

ITC Competitors In FMCG segment

1) HUL

Hindustan Unilever Limited (HUL) is the largest Fast Moving Consumer Goods Company
located in India. It has a rich 80 years of legacy in this field. Almost, nine out of ten Indian
households make use of the products of HUL.

The company works daily for a better future to make people feel and look good with their
various brands and services. The main product includes cleaning agents, food products,
personal care products, and water purifiers.

2) P&G

A popular American multinational consumer goods corporation, P&G is headquartered in

Ohio, United States. It manufactures a wide range of consumer goods. The company has its
business operations in five main segments, Grooming, Health Care, Fabric & Home Care,
Beauty, and Baby, Feminine & Family Care.
Nestle

Nestle is a food processing industry located in Switzerland. Established in the year 1866, Nestle
is the largest food company in the world based on revenue. The various products of Nestle
include medical food, baby food, breakfast cereals, bottled water, tea, coffee, dairy products,
confectionery, frozen food, ice cream, snacks, and pet foods.

ITC Competitors In Hotels

1) Leela Hotels

An Indian luxury hotel chain, Leela Hotels was founded in the year 1986 by C.P. Krishnan
Nair. This hotel is a group of nine luxury hotels and palaces. Over the years, the company has
been on a continuous journey to make the travellers comfortable that crosses their path.
Taj Group of Hotels

Taj group of hotels is an international chain of resorts and hotels that is headquartered in
Mumbai, India. It was founded by the Tata group during the year 1903. The company has about
99 hotels and resorts across 83 locations in India and 16 in other countries.
ITC Competitors in Cigarettes
1) Philip Morris International

With brands like Marlboro, L&M and others in its belt, without a doubt a top ITC competitor
in the cigarette industry is Philip Morris International. Philip Morris is an American origins
company which has worldwide distribution of its cigarette brands. Cigarettes are a major
revenue driver for ITC and Philip Morris hits ITC in the premium brands of cigarettes.
Q2. Demand Forecasting for Next two years.

60000

50000

40000

30000

20000

10000

2016 2017 2018 2019 2020 2021 2022 2023 2024

As we can see for the demand forecasting, we see a significant profit for the next two years.
From our estimation in demand forecasting it's clear that there'll be continuous dominance in
the market by ITC to its competitors and they are standalone with such type of turnover on
basis the company is generating.

Q3. Is your forecast matching with the company plans?

YES, the estimation of the company's plan is matching according the forecasting done in the
above graph and they're planning to hit their targets with steps they're planning to follow from
next year .
Gross Revenue for the year grew by 19.9% to Rs. 41,810 crores. Net Revenue at Rs. 29,606
crores grew by 19.4% primarily driven by a 26.4% growth in the non-cigarette FMCG
businesses, as well as in Agri Business together with 13.4% growth in the Cigarettes Business.
Profit Before Tax increased by 20.1% to Rs. 10,684 crores while Net profits at Rs. 7,418 crores
registered a growth of 20.4%.
Earnings Per Share for the year stood at Rs. 9.45 (previous year Rs. 7.93), while Cash flows
from Operations aggregated Rs. 9,596 crores compared to Rs. 8,334 crores in the previous year.
Continuing with its chosen strategy of creating multiple drivers of growth, the Company is
presently the leading FMCG marketer in India, a trailblazer in ‘green hoteliering’ and the
second largest Hotel chain in India, the clear market leader in the Indian Paperboard and
Packaging industry and the country’s foremost Agri business player. ITC’s wholly owned
subsidiary, ITC Infotech India Limited, is one of India’s fast growing Information Technology
companies in the mid-tier segment.
Q4. What steps is the company taking to meet its proposed forecast demand ?

The ITC management is likely to share plans around building the next drivers of growth in
businesses like FMCG and hotels in its first-ever analyst and institutional investor meeting
scheduled next Tuesday though any announcement about a demerger of the hotel or
information technology business is unlikely, analysts and industry sources said.

While market speculation is high that ITC NSE 0.32 % may announce the demerger of hotels
or I T business on Tuesday, sources said it is unlikely since these proposals have not yet been
placed before the company's board or cleared by it.

They also said no board meeting is lined up anytime soon to finalise on these since ITC top
management feels the time is not yet ripe with the hotel business still operating at pre-Covid-
19 levels and volatility of the stock market.

ITC chairman Sanjiv Puri has multiple times indicated that the company may create
"alternative structures" for these businesses and the board is open to all opportunities.

Analysts also said the cigarette-hotel-FMCG conglomerate will harp on points like the steps it
has taken on environmental, social and governance (ESG) issues which are already integrated
into the business and the company leads in several such areas. In fact, ESG concerns of tobacco
companies have been said to be one of the reasons why ITC's share price has been under-
performing.

Q5. Demand forecast for the 2 competitors.

HINDUSTAN UNILIVER LTD.

60000

50000

40000

30000

20000

10000

2016 2017 2018 2019 2020 2021 2022 2023 2024

 TAJ GROUP OF
HOTELS

2016 2017 2018 2019 2020 2021 2022 2023 2024

As we can see that Hindustan Unilever has good amount of expected sales turnover for next 2
years and is in competition with the ITC. Being a front mover in the market, HUL also can be the
another alternative for the investors. But after analysing the trend of Taj Group of Hotels, there
is huge decrease in the sales revenue of the company in 2020 due to coronavirus pandemic which
leads to low footfall of the customers in hotel. But after lockdown restrictions, there is slight
increase in the revenue of the company and it can be predicted that the company might hit decent
revenue in coming years.
 ARTIFICIAL
INTELLIGENCE
Q1. What is the name of your CBR Organization

A1. INDIA TOBACCO COMPANY LTD

Q2. Name the Sector it belongs to and describe broadly the organization profile
A2 ITC is one of India's foremost private sector companies and a diversified
conglomerate with businesses spanning Fast Moving Consumer Goods, Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The
Company is acknowledged as one of India's most valuable business corporations
with a Gross sales value of ₹ 74,979 crores and Net Profit of ₹ 13,032 crores (as on
31.03.2021). ITC was ranked as India's most admired company, according to a
survey conducted by Fortune India, in association with Hay Group.

Q3. What AI tools or technologies are being used in the organization?

A3. The company currently using chatbot on its website to answer the queries to
their customer instantly which enables them to work 24/7.
Chatbots are fast
Customers expect fast and efficient support. Customers that do end up getting some
kind of response have to wait an average of ten hours, while they reckon that should
be around four. Responding to customers in a timely fashion can be a major
challenge for organizations that don’t have experienced teams working round the
clock to solve customer issues as they arrive and is a major investment even for
larger organizations. This is one of the reasons it makes sense to bring in chatbots.
Unlike their human counterparts, customer support chatbots don’t need eight hours
of sleep a night and can give consumers the answers they need with little to no wait
time.

Chatbots are proactive

With traditional customer support, organizations sit back and wait for the customer,
meaning that customer interactions are mostly passive and centered around issues
and problems encountered. As you will have noticed, chatbots take a more proactive
approach by being quick to leap in as soon as a customer arrives on a homepage,
asking what they are looking for and if they can be of any help. Advances in NLP
means that talking to a bot is no longer the slightly surreal and potentially frustrating
experience it used to be. Conversing with chatbots nowadays is very much like
talking to a human agent — only faster. Bots can kick-start the conversation,
pointing customers in the right direction, guiding them through the payment process
and following-up post-sales by letting them know about useful tutorials to help
them out and asking questions about their experience, thus replacing the traditional
satisfaction survey and helping build even better customer journeys in the future.
 Q4. What processes are being improved with AI/ML implementation? Make
a comparative analysis of the AI/ML implementations in processes of any
two competitors of the organization. (The suggestive processes may include but
not limited to chatbots for customer care, direct marketing, product
propensity, product recommendation systems, loan automation, underwriting,
fraud detection, employee training and development, dynamic pricing,
demand forecasting, predictive maintenance, target marketing, customer 360
degree view, sentiments analytics, credit scoring, talent acquisition, credit and
risk analysis, knowledge management, digital footprints analysis, trend
analysis, algorithmic trading, market basket analysis, robo advisors, etc.)

A4 Acknowledge the Internal Capability Gap

There's a stark difference between what you want to accomplish and what you have
the organizational ability to actually achieve within a given time frame. The
business should know what it's capable of and what it's not from a tech and business
process perspective before launching into a full-blown AI implementation.
Sometimes this can take a long time to do but Addressing your internal capability
gap means identifying what you need to acquire and any processes that need to be
internally evolved before you get going. Depending on the business, there may be
existing projects or teams that can help do this organically for certain business units.

Q5. Who is the Chief Analytics Officer/Chief Technical Officer/ Chief Data
Officer/ Data Scientist in the organization? Search and collect their profile and
contact details.

A5 DEVRAJ LAHIRI - CHIEF OPERATING OFFICER

Devraj Lahiri joined ITC as the Chief Operating Officer of the India Tobacco
Division on December 10, 2020. Prior to this, he spent nearly 2 decades with VST
Industries, eventually heading the company as the Managing Director since
November 2017. His areas of expertise include business strategy, marketing and
regulatory affairs. He has had significant exposure to both brand and trade
marketing, contributing meaningfully to new brand development and geographic
expansion. He was also a director with TII (Tobacco Institute of India) from 2012
to 2020.
CONTACT INFO:-
ITC LIMITED
Virginia House,
37, J. L. Nehru Road
Kolkata - 700071, India
Ph: +91-33-22889371
Fax: +91-33-22880655
Q6. Does the organization have any AI driven products? If yes, list them and
explain them briefly.
A6. One of India’s top fragrance brands, ITC’s Engage, recently unveiled its AI
tool, Fragrance Finder. The Fragrance Finder is a technology-enabled experience
that aids the selection of fragrances based on the consumer’s responses mapped by
the algorithm, provided on personality, gender identity, and occasion of usage.

The tool re-imagines the shopping experience for the fragrance category to bring in
dimensions of one’s lifestyle and occasion of use as a part of the purchase decision.
The Fragrance Finder will be available both at retail and e-commerce stores across
India.

Once the QR code is scanned by the consumer, it leads the consumer to a finder
platform to respond to a few questions. Responses tracked accordingly provide a
selection of fragrance options that the consumer might like. Sitting on the cusp of
technology and personal care product choices, the new AI tool offers a personalized
shopping experience aimed at potentially reinventing the fragrance category in
India.

“Consumer choices have changed manifold with the growth of e-commerce and
large format stores. With the plethora of choices available, consumers often find it
difficult to purchase the right fragrance, especially in eCommerce-led marketplaces.
Engage Fragrance Finder is an AI-powered tool to recommend the best choice to
the consumer and aid in making an informed decision,” said Sameer Satpathy,
Divisional Chief Executive, Personal Care Products Business, ITC Limited.

Brand Ambassador and Youth Icon Kartik Aaryan said, “Engage continues its
journey of innovation in the fragrance category with the launch of the Fragrance
Finder. AI is the name of the game and Engage has attempted to make shopping for
fragrances fun, easy, and engaging. Being a consumer, I could have never imagined
that we could actually depend on technology to recommend fragrances for us to
base our lifestyle choices! I am very excited about this latest offering and sure that
the consumers will enjoy this too”.

The algorithm is proprietary to ITC and has been developed based on extensive
research and technology. Engage Fragrance Finder technology is a combination of
two principles: gamification & personalization; the tool uses technology to bring
the fragrance expertise of the brand straight to the consumer through a few clicks.
Q7. Does the company use any Digital Reality (AR/VR/MR) technology for
boosting its sales and marketing? If yes, explain them briefly.

A7. No, the company doesnt use any such digital reality(AR/VR/MR) technology
for boosting its sales and marketing.

Q8. Customer Acquisition and Retention are the two prime agendas for any
organization. What AI/ML tools/ technologies/ strategies is the company using
in this direction?

A8. ITC has registered a significant growth since inception in terms of customer
inflow. Also, customer retention has been increasing at a healthy rate. The
Company keeps track of customer index and all feedback is addressed seriously to
improve service Quality, Cost (VFM) and delivery
 HUMAN
RESOURCE
Q1. Employee count of the company. Gender specification. Managerial staff.

Number of employees 36,500 (2021)

ITC wants to double the proportion of women employees to 30% from 16%.
It has identified a pipeline of more than 20 mid-to-senior level women managers to be fast-tracked into
succession planning

Managerial Staff:

Sanjiv-Puri
Chairman & Managing Director
Sanjiv Puri (58), is the Chairman & Managing Director of

ITC effective May 13, 2019. He was appointed as a Wholetime Director

on the Board of ITC

Rajiv-Tandon
Executive Director
Rajiv Tandon (68), was appointed as a Wholetime Director on the Board of ITC effective January 22,
2016. He is responsible for Finance, Accounting, Internal Audit & IT Functions...
View Profile
•
•
•
•
Supratim Dutta
Chief Financial Officer
Supratim Dutta is the Chief Financial Officer of the Company with effect from 5th September, 2020.
Before this, he held the position of Corporate Financial Controller of the Company...
View Profile

Hemant Malik
Foods Business
Hemant Malik is the Divisional Chief Executive of Foods Business since October 2016. Prior to this, he
was heading Trade Marketing & Distribution for ITC FMCG..

Q2. Who is heading the HR department? Who is the head training and
development officer? Who is the campus placement head?

ITC elevates Amitav Mukherji as Head of Corporate HR.

Mukherjee comes with an experience of over 25 years and has spent a significant part of his
career with ITC. He joined ITC in 1995 as assistant manager-HR and over a period of more than
two decades, he kept climbing the ladder of success taking responsibilities as human resource
manager, vice president-HR and now as corporate HR-head in the organisation.
Mukherjee’s whirlwind journey with ITC began with a strong desire to gain experience in
industrial relations. In trying to meet the challenges at ITC, including gathering knowledge of
manufacturing and working with various top leaders, he managed to gain experience in labour
management as well as collective bargaining. It took Mukherjee merely five years to begin
leading the HR function at the Company’s Bangalore factory.

Q3. How much is the company spending on employee salary and development
initiatives?

Q4. Any Employer branding initiative or employee engagement/ HR digital

transformation initiatives that can be found on the social media.
ITC Ltd is undertaking a new marketing initiative - marketing command centre - in
Bengaluru and Kolkata as part of the conglomerate's focus on digital business whereby the
centre will work on generating real time campaigns in social media and undertake
consumer research for new products.
The centre will work for the new FMCG businesses which includes packaged food, personal
care, education and stationary products, agarbatti and safety matches. It will be manned by
in-house talent from various backgrounds such as creative, data science and consumer
insight.
ITC Ltd executive director B Sumant said as an integral part of its initiatives to drive
consumer engagement on digital platforms, ITC has established a dedicated command
centre to monitor trends and derive relevant consumer insights that enables to craft
communication campaigns and create newer products in alignment with consumer needs
and preferences.
"The essence of a live command centre lies in monitoring real time consumer trends and
crafting appropriate responses to the same, in creating newer avenues of relevant and
contextual communication and hence drive conversations establishing thought leadership
in that space. It also enables real time monitoring of consumer reactions to our
communications and hence craft effective communication solutions," Sumant said.
The centre has already rolled out over 500 campaigns in Facebook, Twitter and Instagram.
This includes posts on cricket world cup, Yuvraj hanging his boots and world music day. In
terms of consumer insight, ITC said it has helped in understanding spaces like indulgence,
gifting, health and fitness, category understanding and exploration of new product
opportunities.
In terms of online sales, ITC is already selling its luxury chocolate Fabelle and Classmate
notebooks through dedicated online platforms and has plans to sell all premium and niche
products online.
ACCOUNTS
 Q1. ANALYSIS OF CAGR ON SALES.
ITC

SALES (IN
YEARS CRORES)
2016 39192
2017 42768
2018 43449
HUL 2019 48340 P&G
2020 49388 NESTLE
2021 49257

CAGR 5%
SALES (IN SALES (IN SALES (IN
YEARS CRORES) YEARS CRORES) YEARS CRORES)
2016 32186 2016 2275 2015 8175
2017 33162 2017 2320 2016 9141
2018 35545 2018 2455 2017 10010
2019 39310 2019 2947 2018 11292
2020 39783 2020 3002 2019 12369
2021 47028 2021 3574 2020 13350

CAGR 8% CAGR 9% CAGR 10%

CAGR ON SALES COMPARISON

ITC
7%
NESTLE, HUL,
30% 14%

P&G,
9%

What does CAGR refers to:- CAGR stands for the Compound Annual Growth Rate. CAGR is the annual
return rate that an investment needs to grow from its initial balance to its final balance within the given
period.
CAGR FORMULA = [(ENDING VALUE/BEGINNING VALUE)1/NO. OF YEARS - 1] *100
 Q2. Perform liquidity test of the company. Compare it with
industry average and 3 competitors of firm.
A2. Liquidity ratios measure the firm’s ability to meet current obligations, as and when they
fall due. A firm should ensure that it does not suffer from lack of liquidity and also does not
have excess liquidity. It is necessary for the firm to strike a proper balance between high
liquidity and lack of liquidity.

LIQUIDITY POSITION
CLOSE COMPETITORS INDUSTRY
AVERAGE
LIQUIDITY
RATIOS ITC HUL P&G NESTLE

Current 3.13 1.26 1.34 1.68 1.85

Ratio
Quick Ratio 2.20 0.95 1.04 1.11 1.325

Current Ratio

INDUSTRY
AVERAGE
1.85 ITC
3.13

NESTLE
1.68
HUL
P&G
1.26
1.34
 Quick Ratio

INDUSTRY
AVERAGE
1.325 ITC
2.2

NESTLE
1.11
HUL
P&G
0.95
1.04

COMPARISON
LIQUIDITY IDEAL ANALYSIS
RATIOS RATIO INDUSTRY
AVERAGE COMPETITORS

The current ratio of

competitors of ITC
ITC has a satisfactory current ITC has a better is not satisfactory
CURRENT 2:1 ratio which means that the ratio in as it’s below the
RATIO company is able to pay off its compared to ideal ratio which
liabilities on a timely basis industry average means the
without any difficulty. in FMCG companies are
facing difficulties
in paying off their
liabilities.
ITC Ltd. is The quick ratio is
ITC quick ratio is a bit higher having a high satisfactory of all
QUICK 1:1 than the ideal satisfactory quick ratio than the firms but ITC is
RATIO ratio which means that the Industry average going much better
firm has the capacity to pay which means that than its
its current liabilities without company is in competitors.
selling its inventories or get capacity to pay
additional financing. off their
liabilities
without selling
their inventories
Q3. Identify the Solvency position of the company. Compare it with industry
representative benchmark and three competitors of the firm.
A3. SOLVENCY POSITION OF GREAVES COTTON LTD.

Solvency ratios are beneficial for the debenture holder and financial institution who use
this information to check the company that provide working capital are concerned with
long-term solvency of the firm. In fact, it is necessary for the firm to have short-term as
well as long-term solvency for financial strength.

SOLVENCY POSITION
CLOSE COMPETITORS INDUSTRY
REPRESENTATIVE
ITC HUL P&G NESTLE NESTLE
SOLVENCY
RATIOS
Debt to Equity 0.0 0.0 0.0 0.02 0.02
Ratio
Return to 21.80% 16.77% 25.12% 103.12% 103.12%
shareholder’s
fund
Return to 28.49% 19.01% 31.32% 55.05% 55.05%
capital
employed

Chart Title
1.2
1
0.8
0.6
0.4
0.2
0
ITC HUL P&G NESTLE NESTLE
CLOSE COMPETITORS INDUSTRY
REPRESENTATIVE

SOLVENCY RATIOS Debt to Equity Ratio Return to shareholder’s fund Return to capital employed
 COMPARISON
SOLVENCY IDEAL ANALYSIS
RATIOS RATIO INDUSTRY
REPRESENTATIVE COMPETITORS
BENCHMARK

All the competitors

have same debt to
ITC has a low debt Being an unlevered firm, equity ratio
to equity ratio NESTLE is having 0 as its
DEBT TO EQUITY 1:1 or which indicates that debt equity ratio.
RATIO less the extent to which
debt financing has
been used
in business is very
less.

ITC has a better ratio

than its competitors
ITC is earning a NESTLE has the highest which shows that the
Higher satisfactory return ratio indicating how well company owners are
RETURN ON the even during Covid the firm has used the getting a good return
SHAREHOLDER’S ratio, and adequate profit resources of the owners. on the investment
FUND better is available for made by them as
it is distribution of compared to its
dividend to competitors.
shareholders.

NESTLE has the highest

ratio and thus the ITC has a better ratio
outsiders like bankers, than its competitors
Higher ITC is earning a financial institutions and which implies that the
RETURN ON the satisfactory return creditors know the firm is managed
CAPITAL ratio, even during Covid viability of the firm so efficiently.
EMPLOYED better satisfying the that they can lend funds,
it is owners that their comfortably.
funds are profitably
utilised.
 Q4. Identify the Profitability Position of the company. Compare it with industry
representative benchmark and three competitors of the firm. How operating profit is
diff from net profit.

A4. PROFITABILITY POSITION OF ITC LTD.

Profitability ratios are to measure the operating efficiency of the company.

Besides management, lenders and owners of the company are interested in
the analysis of the profitability of the firm.

Profitability Ratio
ITC
Year (in cr.) Mar-21 Mar-19 Mar-18 Mar-17 Mar-16
Gross Profit
37.73 42.42 40.99 41.47 38.67
Margin (%)
Operating
36.41 40.53 30.58 40.05 37.45
Margin (%)
Net Profit
27.17 31.54 26.52 26.43 24.47
Margin (%)
HUL
Year (in cr.)
Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Gross Profit 22.55 23.05 22.55 20.71 18.92
Margin (%)
Operating 23.30 23.85 22.55 20.71 18.92
Margin (%)
Net Profit 17.00 16.96 15.40 14.66 13.49
Margin (%)

P&G
Year (in cr.)
Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Gross Profit 23.12 26.17 25.29 18.60 13.78
Margin (%)
Operating 23.20 26.17 25.29 17.83 12.24
Margin (%)
Net Profit 17.52 18.73 17.13 98.79 8.50
Margin (%)
 NESTLE
Year (in cr.) Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Gross Profit 21.06 21.61 21.50 18.37 15.62
Margin (%)
Operating 22.29 22.65 22.50 19.29 16.34
Margin (%)

Net Profit 15.59 15.91 14.23 12.24 10.04

Margin (%)

From the given details we analyze that:

• ITC and P&G has the highest gross profit margin ratio, though there was a
decrease of 1% in ITC India in the year 2018-19 but it managed to increase the
profit margin in comparison to competitors.
• ITC has the highest operating profit margin ratio followed by HUL.
• The net profit margin ratio of ITC is the highest followed by HUL.
Q5. Perform efficiency test on your company. Compare it with industry average
and three competitors of the firm.

EFFICIENCY TEST
ITC
Year (in cr.) Mar-21 Mar-19 Mar-18 Mar-17 Mar-16
Inventory
4.69 5.51 6.09 5.73 5.23
turnover ratio
(%)
Debt turnover
20.99 15.58 14.85 18.50 26.74
ratio (%)
Asset turnover
66.74 63.85 67.347 67.58 76.46
ratio (%)
HUL
Year (in cr.)
Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Inventory 14.71 15.78 14.64 13.50
turnover ratio 13.60
(%)
Debt turnover 32.36 26.84 25.15 30.26 30.45
ratio (%)
Asset turnover 67.52 197.86 213.96 201.32 216.18
ratio (%)

P&G
Year (in cr.) Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Inventory 8.52 10.11 8.11 7.49 7.00
turnover ratio
(%)
Debt turnover 23.16 17.27 17.87 17.46 17.13
ratio (%)
Asset turnover 102.28 115.31 86.86 48.25 111.37
ratio (%)
 NESTLE
Year (in cr.)
Mar-20 Mar-19 Mar-18 Mar-17 Mar-16
Inventory 9.42 9.64 11.70 11.09 9.78
turnover ratio
(%)
Debt turnover 92.30 99.38 105.75 109.07 107.45
ratio (%)
Asset 168.99 172.43 139.61 135.95 135.52
turnover ratio
(%)

Q6. Identifying the breakeven point of the Sales.

Particulars 2021 (In Crores)

VARIABLE COST
Cost of Materials Consumed 13,605.07
Purchase of stock in trade 158.47
TOTAL VARIABLE COST 13,763.54
SALES 49257
FIXED COST

Changes in Inventories Of FG, WIP And Stock-In Trade -526.86

Employee Benefit Expenses 3,039.43

Finance Costs 47.47

Depreciation and Amortization Expenses 1,561.83

Other Expenses 7,167.09

TOTAL FIXED COST 11,288.96
CONTRIBUTION 35,493.46
PV RATIO 72.06
BREAK EVEN POINT 156.67
 Q7. ANALYSIS OF CAGR ON PROFIT.
ITC
PROFIT (IN
YEARS CRORES)
2016 9344
2017 10289
2018 11271
2019 12592
2020 15306
2021 13161

CAGR 7%

HUL P&G NESTLE

PROFIT (IN PROFIT (IN PROFIT (IN
YEARS CRORES) YEARS CRORES) YEARS CRORES)
2016 4151 2016 422 2015 563
2017 4476 2017 433 2016 1001
2018 5214 2018 375 2017 1225
2019 6054 2019 419 2018 1607
2020 6748 2020 433 2019 1968
2021 7995 2021 652 2020 2082

CAGR 14% CAGR 9% CAGR 30%

CAGR ON PROFIT COMPARISON

ITC
7%

NESTLE, HUL,
30% 14%

P&G,
9%
 Q8. Identify any major capital expenditure done by the company in last year.

Q9. Identify any exceptional items in the foot note of balance sheet.

Q10. Share any related news to the company in last 6 months.

ITC to launch plant-based meat products

ITC NSE 1.18 % Ltd will launch a host of plant-based meat products, in anticipation of the burgeoning
demand for meat substitutes and vegan meals in India.

The maker of Aashirvaad atta and Sunfeast cookies is the first mainstream consumer company to enter this
segment in the country even as Nestle NSE 0.39 %, Unilever NSE 1.87 %, Kellogg's and Cargill have
globally launched products for consumers conscious about health, animal welfare and the environment.
The largest in this segment globally are start-ups such as Beyond Meat and Impossible Food Inc.
To begin with, ITC is launching plant-based burger patties and nuggets which mimic the taste of chicken
and are the two largest non-vegetarian frozen food categories. Globally, McDonald's has a plant-based
burger McPlant, co-developed with Beyond Meat. ITC will initially sell these products in e-commerce and
large retail chains in top eight cities - and to institutional customers such as hotels and restaurants.

ITC’s divisional chief executive for the foods business, Hemant Malik, said the company will target the
plant protein products mostly among non-vegetarians seeking animal-meat replacement.

ITC commissions first off-site solar plant in Tamil Nadu

Diversified business conglomerate ITC NSE 1.18 % Limited has commissioned its first off-site solar plant
in Tamil Nadu set up at an investment of Rs 76 crore, the company said on Tuesday. The 14.9 MW solar
plant in Dindigul about 450 km from Chennai, would help reduce the carbon dioxide emissions over the
course of the time and it has already helped ITC to achieve the feat of meeting 90 per cent of its electricity
requirement, a company statement said.
The project, in line with ITC Chairman Sanjiv Puri's 'Sustainability 2.0' Vision, under which ITC plans to
meet 100 per cent of the entire grid electricity requirements from renewable sources by 2030 and
contribute to combat the threat of climate change.

ITC's renewable portfolio comprises of 138 MW of wind power plants and 14 MW of solar plants with
53 MW of additional solar capacity under execution.

Currently, projects were underway in other sources of renewable energy like biomass boilers. The
company has made investments of over Rs 1,000 crores in renewable energy assets to date.

Q11. Share the market specialization of the company and trend in share price in
last one year.
 Q12. Show the growth in EPS of last 5 years and how EPS is different from
diluted EPS.

Basic EPS is calculated, taking into account the outstanding equity shares of the company. Diluted EPS
includes convertible shares such as employee stock options, warrants, debt in its calculation.
DIGITAL
MARKETING
Q1.How many people are following company’s social media handles?
The company is currently using these 3 social media handles.
Followers
Twitter- 38.4K
Facebook- 355400
YouTube – 28.9 K Subscribers
Linkedin- 22,21,129
Instagram – 8,009

Q2. What is the most popular social media platform and why?
Facebook – 2.23 billion MAUs

Facebook is the biggest social media site around, with more than two billion people using
it every month. That’s almost a third of the world’s population! There are more than 65
million businesses using Facebook Pages and more than six million advertisers actively
promoting their business on Facebook, which makes it a pretty safe bet if you want to have
a presence on social media.
It’s easy to get started on Facebook because almost all content format works great on
Facebook — text, images, videos, live videos, and Stories. But note that the Facebook
algorithm prioritizes content that sparks conversations and meaningful interactions
Q3. How often posts are being shared by the users?
There are 1,500 average number of posts that are eligible to appear in a Facebook user’s feed
each day. On average, there are 4.75 billion items shared by Facebook users each day.10 billion
Facebook messages are sent each day. Each minute there are 3,125,000 new likes. There are
17 billion location-tagged Facebook posts today. The total number of uploaded Facebook
photos is 250 billion. On average 350 million photos are uploaded daily to Facebook. 243,055
new photos are uploaded to Facebook every minute. There are 127 photos uploaded on average
per Facebook user
Q4. Which is the fastest growing social media platform for them?
Compared to all the social media platforms currently used by ITC, Linkedin is the fastest
growing because it has more followers than

any other.

Q5. What’s the best time to post on social media for the company?
The best times to post on social media overall is 10:00 AM on Tuesdays, Wednesdays, and
Thursdays.
• The best time to post on Facebook is 8:00 AM to 12:00 PM on Tuesdays and Thursdays.
• The best time to post on Instagram is 11:00 AM on Wednesdays.
• The best time to post on Twitter is 8:00 AM on Mondays and Thursdays.
• The best time to post on LinkedIn is 9:00 AM on Tuesdays and Wednesdays.

If you’re starting fresh on social media and don’t have a lot of past posting data or audience
insights to work with, these are good posting times to start with. But they are very general. As
your accounts grow, you’ll want to tweak your posting schedule to better fit your specific
audience’s behaviour. You may be surprised how much it differs from the general population.
Q6. How often should they post on social media?

The quality of your content matters more than the quantity of posts you publish each week.
You can follow every arbitrary posting rule out there (such as, “post every Tuesday at 1 pm for
maximum results”). However, if you’re posting low-quality content that isn’t relevant to your
audience, you’re not going to see the kind of engagement and outcomes you’re hoping for.
It’s especially important to note that for brands with smaller followings, in particular, posting
more often will not necessarily result in more clicks and engagement.
Research from Hubspot shows that Facebook pages that have over 10,000 followers are the
only ones that notice an increase in clicks when they post more often (between 31 and 60 times
per month). The same research also revealed that smaller pages (fewer than 10,000 followers)
received fewer clicks when they increased their post frequency.

Q7.Which social media platform should they use to sell their products and services?

In its efforts to improve its manufacturing processes, Granules has adapted innovations from
other sectors such as candy and detergent. It has used team-based disruptive innovation models
that are usually found in technology companies. The company's willingness to look outside its
own industry has contributed to its success; Granules holds around 50 percent market share
in the United States and a significant global market share for its top three products: ibuprofen,
acetaminophen, and Metformin and their combinations.

The Granules story makes the case that middle-sized, scale-up companies that focus on long-
term growth, rather than short-term profit can be an essential driving force in bringing
prosperity to emerging economies. These companies are the providers of goods and services
from which innovation comes, often targeted to industrial or commercial niches that larger
enterprises overlook.
Q8. What kind of content should they post?
1. Your Company's Blog Posts
2. Posts Showing Your Company's Culture
3. Industry News
4. Curated Content
5. Question Posts
6. Product/Company Videos
7. Customer Reviews and Testimonials
8. Quick Tips and Advice
9. Memes or GIFs--GIFs are a great way to showcase your brand’s personality, stay trendy,
and have fun. – HeyOrca
10. Contest Posts

Q9. What kind of content format they should use?

Written posts, blogs, articles, guides, and more
• Electronic books (eBooks)
• Links to external content
• Images
• Video Stories
• Live Videos
• Testimonials and reviews
• Announcements
• Contests
• Holidays

Q10. How can they increase followers on social media?

Be a follow-worthy brand - It's not enough to have a ton of content or really flashy ads. If
you're inauthentic or sleazy you won't get very far. People want to find meaning in the brands
they follow.
Use automation - You can manage all your social media accounts in one place. You can
schedule posts weeks in advance and post at preferred times so the greatest number of users
will see them.
Promote your social media accounts - Make it easy to follow or like your profiles. Regularly
perk up your startup's Facebook page, Instagram, or Twitter account.
Focus on customer service - Many customers having issues with a brand are turning to social
media to get help rather than waiting for a response to an email or making a phone call.
Actively engage - Use your social media accounts to foster a community.
Establish your social media voice and tone - Remember that every time you talk, write,
design, post, respond, launch, thank, and connect with others you're exercising your brand
voice. People are building an impression of your brand. Make the reader the hero in your story.
Don't sound robotic - You are communicating with real people. Use language your audience
uses and respond so you sound like a real person.
Q11.What is the company’s overall purpose for having social media profiles?

Social media can help you engage with your customers and find out what people are saying
about your business. You can also use social media for advertising, promotional giveaways
and mobile applications.
Social media can help your business to:
• attract customers, get customer feedback and build customer loyalty
• increase your market reach, including international markets
• do market research and reduce marketing costs
• increase revenue by building customer networks and advertising
• develop your brand
• exchange ideas to improve the way you do business
• recruit skilled staff for example through job networking sites like LinkedInincrease
traffic to your website and improve its search engine ranking
• keep an eye on your competitors.

Q12. Who is the target audience of the company in social media platforms?

You can sell to everyone, but you can’t target everyone with all of your social content. You
can’t speak directly to your best potential customers if you’re trying to speak to their kids and
parents and spouses and colleagues at the same time. Social media audience research isn’t
complicated. It’s mainly about narrowing your focus while expanding your reach.

Q13. What topics and sources of information from social media are most
important to the company?
• Social media can reduce your overall marketing costs
• Social networks are a cost-effective way to get your small business in front of both your

current customers as well as prospective customers.

• Offer better customer service
• One of the first places people go to voice their comments, concerns, and questions is
Twitter and Facebook
• Create a voice
• Social media is a great way to display your business’s personality.
• Build loyalty and trust
• Allowing your customers to share their stories about their experience with your small
business on social media is a wonderful form of word-of-mouth marketing. So when customers
rave about you to their friends and family, it not only boosts your online reputation, but it
increases the chances that someone else is going to give you a shot next time they need your
services.
• Start with just a few minutes a day, and you will soon see a difference
Q14. What is your brand voice on social media?
Brand voice is the selection of words, as well as the attitudes and values of the brand that is
displayed to the target audiences, like customers, prospects, and employees.
In simple terms, it is how your company’s brand showcases personality to any audience and how
it is perceived.
I also see brand voice being split into two divisions, although the brand voice strategy is typically
the same for both:

External
External brand voice is how people outside your organization identify your company. Meaning
they know your values, mission, identity, and position in the market compared to others.
Internal
The brand voice also applies to the internal aspects of your organization, meaning employees.
What and how your brand speaks (audio, written, visual) should be portrayed the same internally.
Everyone in the organization should be on the same page about the brand.
Building brand voice can take time and effort to really nail down. But, social media has helped
organizations reach more audiences when done right. And that is important for companies that are
B2C, B2B, or a combo.
This is why your organization should focus on developing and growing the brand through social
media.
Close to half the world’s population (3.03 billion people) are on some type of social media
(Statusbrew).

Q15. What is the tone of company social media updates?

SOCIAL MEDIA TONE OF VOICE GUIDE
Social media tone of voice refers to the persona of your social media accounts. It’s the way
you speak to your audience, and it affects how people perceive your company. Your company’s
history, mission and values should all be reflected in your social media tone of voice.
It should be tailored to your target audiences, helping customers to connect with you on an
emotional level. If done right, it gives your audience a feeling about your brand that lasts longer
than the actual message you’re putting out there.
HOW TO DEVELOP A SOCIAL MEDIA TONE OF VOICE GUIDE
Start by compiling all your brand guidelines for reference during this process. Your social
media tone of voice should tie back to your overall brand, acting as an extension of your brand
across channels.
There are several exercises you can use to help define your brand’s tone of voice. Here are a
few of our favorites:
• Brainstorm adjectives. Have your team submit a list of adjectives that represent your
brand and culture. Review the list and brainstorm additional adjectives until you can agree on
three or four that are truly representative of your brand’s voice. You can even put these on a
scale with your chosen adjectives on one end and their opposites on the other end. Understand
that your brand’s tone may shift along the scale based on the social moment.
• This, not that. This method helps you to define your brand tone, what sets you apart and
what you don’t want to sound like. Providing these examples also helps to clarify how it’s
applied when creating content.

• Celebrity alignment. Celebrity alignment is a good way to give your brand an identifiable
voice. Think about what you want your brand to sound like and identify a celebrity with those
qualities. For example, if you choose a comedian, you may want to sound less formal and more
light-hearted. If you choose a more serious actor, you may want to portray a more professional
tone.
• Personification. What would your brand sound like if it were an actual person? What does
a day in their life look like? What do they do for work and eat for breakfast? Personifying your
brand helps to give your brand a more personal, human feel.
ORGANISATIONAL

SUSTAINABILITY
Q1. Which SDG is the company focusing on?
ITC focus has been on spurring innovative strategies that would enable us to make a growing
contribution along the triple bottom lines of building economic, environmental and social capital.
Matching internal competencies with the emerging opportunities in a fast growing and rapidly evolving
economy, we created multiple drivers of growth for the Indian economy through a carefully chosen
diversified portfolio of businesses. Efforts were made to create world-class Indian brands that would
help in capturing and retaining more value for the Indian economy. The vitality of such brands also
serve as market anchors to enhance the competitiveness of the entire value chain, including that of
farmers and rural communities. To ensure a positive environmental footprint, we adopted a low-carbon
growth strategy which focused on enhanced use of renewable energy sources as well as reduction in
specific energy consumption. Efforts to reduce specific water consumption at our units and augment
rainwater harvesting activities contributed to the imperative need to ensure water security. Focused
waste management initiatives like our flagship WoW (Well-being Out of Waste) programme contribute
to addressing yet another national priority.

Q2. Does the company an independent department of sustainability or is it a

part of HR / CSR / outreach activities?
The CSR department is looking into sustainability too

.
Q3. Do they have an independent person assigned for
sustainability/outsourcing through consultancies?
Not Available

Q4. Where have the CSR / sustainability funds been used during the last two
years?
Q5. Does the company have a specific budget for CSR / sustainability?

Yes. They have engaged with all key stakeholders including our employees, regulators,
customers & suppliers, investors, and communities around to identify our materiality issues.
We have defined these issues as key performance indicators (KPIs) and baselined the same for
the last two financial years to set targets for next 3 years. It includes Carbon Emission, Water
& Waste Foot printing, Water & Energy audits at our facilities and brainstorming of several as
Operational Excellence projects. The external value chain is also being engaged in our quest
to build a Sustainable Supply Chain.
These efforts would ensure business continuity, reduce cost of operations & supply chain and
thereby build a resilient organization.

Q6. During the last twenty months, any new concepts / policies/strategies
which the company and its competitors adopted/ modified.

Ans. Policy on Stakeholder Engagement

Philosophy
ITC believes that an effective stakeholder engagement process is necessary for
achieving its sustainability goal of inclusive growth. ITC accordingly anchors its
stakeholder engagement on the principles of:
• Materiality - taking prioritised consideration of the economic, environmental
and social impacts identified to be important to the organisation as well as its
stakeholders.
• Completeness - understanding the stakeholders' key concerns and
expectations.
• Responsiveness - responding coherently and speedily to such issues and
concerns.
Policy
It is ITC's policy:
• To identify and engage with all its stakeholders in a consistent and
systematic manner;
• To understand the concerns of stakeholders including those who are
disadvantaged, vulnerable and marginalised and prioritise their concerns;
• To work towards addressing these concerns in an equitable and
transparent manner.
Implementation
• This policy is communicated to all employees in an appropriate and
meaningful manner.
• ITC Units have appropriate systems and processes in place to ensure
compliance with the Policy and with statutory provisions, including processing
of grievances for redressal. Divisional / SBU Chief Executives, through
members of the respective Management Committees, will ensure
implementation of this Policy.
• Compliance with the Policy will be regularly monitored and evaluated by
the Sustainability Compliance Review Committee (SCRC) of the Corporate
Management Committee (CMC). The report of the SCRC will be reviewed by the
CMC every quarter. The CSR & Sustainability Committee of the Board will
supervise the implementation of this Policy.

Policy on Animal Testing

Philosophy
ITC supports the cause of eliminating animal testing.
Policy
It is ITC's Policy:
• Not to undertake animal testing in respect of any of its existing cosmetic and
food products.
Notwithstanding the above, animal testing may be considered as a measure of
last resort, if there is no effective alternative or if mandated by law for product
safety or any other statutory requirements. In such a situation, ITC will comply
with all legal, ethical and professional standards and, if required, use third-
party facilities which conform to the same;
• To endeavour to adopt non-animal alternative testing methods for
providing assurance to consumers regarding the safety of its products;
• To instil a sense of commitment amongst suppliers for not testing
ingredients and products on animals.
Governance
• ITC has appropriate systems and processes in place to ensure compliance
with the Policy and with statutory provisions, as applicable, including
processing of grievances for redressal. It shall be the responsibility of the
Divisional / SBU Chief Executives, through members of the respective
Management Committees, and Chief Scientist - Research & Technology
Innovation, ITC Life Sciences and Technology Centre, to ensure implementation
of the Policy, and also communication of the Policy to the employees.
• Compliance with the Policy will be regularly monitored and evaluated by
the Sustainability Compliance Review Committee (SCRC) of the Corporate
Management Committee (CMC). The report of the SCRC will be reviewed by the
CMC every quarter.
• The CSR and Sustainability Committee will be apprised annually on the
implementation of this Policy.
Q7.Keeping in view the activities of the company suggest three areas where
there should be a bigger focus on sustainability goals.

• Visualizing various probable undesirable events which lead to major accidents

• Detailed and systematic assessment of the risk associated with each of those hazards,
including the likelihood and consequences of each potential major accident event; and
• Identifying the technical and other control measures that are necessary to reduce that risk to
a level that is as low as reasonably practicable

Q8.Identify an International company in your segment and list the steps

taken for sustainability.

Ans. McKinsey & Company

Consumer awareness to packaging waste in oceans and landfills is driving change
Packaging is ubiquitous in our daily lives and enables minimization of food waste and overall
product breakage with advanced convenience features2 at low costs. Over the past decade, the
global packaging industry has enjoyed strong growth, driven by shifts in choice of substrates
and expansion of new end-markets. Headline changes include the increased use of plastics to
replace other substrates and accommodate consumers’ demand for convenience, but also the
economic boom in China and other emerging regions.
However, widespread usage of single-use packaging containers has resulted in a heavy burden
on the environment, and the management of packaging waste is facing a crisis due to two
unresolved challenges:

Packaging recyclability. Large amounts of packaging produced today cannot be recycled in

existing recycling systems. This is especially true for multi-material packaging, which today
poses a significant and unresolved challenge in recycling.

Packaging recycling and leakage. Recycling rates for plastic packaging are relatively low. In
the United States, for example, waste is generally managed with low leakage but recovery rates
for packaging and food-service plastics are about 28 percent. In Europe, the plastic-packaging
recycling rate reported was somewhat higher at approximately 40 percent, compared to
approximately 80 percent for paperboard, and 75–80 percent for metal and glass3 (note,
however, that overall data collection quality on recycling rates is rather immature, so real-world
rates may differ from reported figures). Emerging regions (Asia in particular) are under the
most pressure, because packaging demand growth is outpacing global growth rates, and waste-
collection systems—let alone recycling—are not in place at the required scale. Global leakage
or unmanaged dumps of all plastic material flows (both durable and non-durable) is estimated
to be around 19 percent, and only 16 percent of all plastic waste is re-processed to make new
plastics. In fact, most of the global plastics waste goes into incineration (25%) and landfills
(40%), meaning that these materials are lost forever as a resource, despite plastics’ potential
for reuse and recycling.

This has not gone unnoticed; public awareness of packaging waste leakage, especially plastic
waste, into the environment has increased significantly to an all-time high over the past 12–24
months. The visceral images of the effects of ocean plastics pollution have stirred up consumer
sentiment around the world.
OPERATIONS
Q1. Identify whether the supply chain of the company is efficient or responsive? Explain to
support the answer?
• The engagement with ITC supply chain has expanded given the growth of our new consumer goods
businesses and it will be important to integrate the Triple Bottom Line approach amongst the supply
chain to ensure long-term competitiveness by adopting a balanced approach towards creation of
livelihoods and economic viability of these Units.
• ITC supply chain comprises a large number of small-scale partners. Many of them
operate under limiting circumstances in terms of their ability to invest in efficient technologies and their
necessity to rely on labour intensive practices. It will be important to integrate the Triple Bottom Line
approach amongst the supply chain for long-term competitiveness by adopting a balanced approach
towards creation of livelihoods and economic viability of the small scale units.
Q2. Has the company changed its supply chain strategies (efficient to responsive or vice
versa) due to Covid-19? Why or why not?
Ans. No, the company has not changed its supply chain strategies during pandemic as ITC
sustained its position as one of the fastest growing Branded Packaged Foods businesses in the
country, leveraging a robust portfolio of brands, a slew of first-to-market offers, a range of
distinctive products customised to address regional tastes and preferences, along with an
efficient supply chain and distribution network.

Q3.What are the operational and supply chain challenges the company faced during the
Covid-19? What measures did they take to overcome it?
Multi-conglomerate ITC Ltd said constraints in operating outlets and limited hours of operation
are posing challenges, though there are no material supply chain bottlenecks during the
lockdowns imposed amid the second wave of COVID-19 It is leveraging its learnings while
dealing with the pandemic for spanning sales and distribution, supply chain operations along
with relevant innovation and product development, ITC said in its post earning statement. The
Kolkata-headquartered firm said its cost reduction measures remain firmly in focus.
“The Company continues to monitor the developments closely and is well geared to respond
with agility to the evolving situation while managing risks associated with the dynamic
environment,” it added.
After the second wave of COVID-19, several state governments and the local authorities have
imposed restrictions, including Lockdown, allowing a small timing of 3-4 hours for operation
of stores and trade, in their effort to curb the spread of pandemic.
“While the constraints in the number of operating outlets and limited hours of operation are
posing challenges at the front-end, there are no material supply chain bottlenecks”, the
company.
ITC has a diversified presence in FMCG, hotels, packaging, paperboards and speciality papers
and agri-business.
For the financial year ended March 2021, ITC's revenue from operations was at Rs. 53,155.12
crore.
According to the firm, the outbreak of the second wave of the pandemic has led to “severe
economic and social disruptions”.
“The Company, in line with its ‘Putting India First' credo, is supporting the nation’s fight
against the pandemic and has undertaken several initiatives in this regard”, it said.
Its key interventions include easing the bottlenecks in transporting medical oxygen, supply of
medical oxygen to government hospitals from its Bhadrachalam plant, importing oxygen
concentrators and generators for donation, facilitating the setting up of medical facilities to
supplement the healthcare infrastructure, providing personal protective equipment kits and
other infrastructural support to hospitals in several states.
Q4. Discuss the impact of COVID on each cycle.

•Outlets
PROCUREMENT CYCLE

REPLENISHMENT CYCLE
MANUFACTURING CYCLE

CUSTOMER ORDER PROCESS CYCLE

•With the • The •Customer
exclusiveness of shutdown of experienced centricity is at
globalization
factories frequent the core of ITC
already a matter of
concern before the due to stock out and Ltd and it is
pandemic, it will difficulty in this belief that
be crucial to
pandemic
stock has led the
ensure that the creates a
recovery phase replenishmen business to
lifts all boats to
chain t, This build long-
maintain popular reaction, situation was term
support of open affecting also relationships.
economies. policy
makers have trade of influenced by Ensuring a
recognize that other the drop in positive
small businesses countries customer
are particularly industrial
exposed to the risk even if their activities , experience,
arising from the manufacturi which making
COVID crisis and available
have been quick to ng facilities supplies most
are goods and/or
announce the of the finished
target support services that
measures for small
operational products are of top-
businesses and and borders found on the notch quality
their employees. are open to shelves of is given prime
trade retail malls importance.
and shops.

Q5.Discuss how the company manages to meet the deadlines during COVID times?
Ans. ITC Ltd is developing a business continuity plan to address any potential contingencies
and allowing employees to work from home, while it has barred the entry of visitors to its
offices in wake of the Coronavirus outbreak in India. The cigarette-FMCG-tobacco giant has
set up core contingency management team for all its businesses.

ITC's head of corporate human resources Amitav Mukherji said the business continuity plans
are being put in place to address any potential contingencies and for social distancing.

“We are continuously monitoring the situation across all locations and are moving towards a
state of preparedness to address any exigency as the health and safety of our entire workforce,
including salesmen and factory workers, is of paramount importance,” said Mukherji. The
company has also asked its offices in some locations to put in place and execute contingency
plans at the earliest including work-from-home arrangements.

“Teleconferencing and video conferencing are being encouraged as much as possible. Entry of
external visitors who are not employees of ITC will not be permitted as a measure of caution,”
said Mukherji.
MARKETING