Initiatives

Initiatives 

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ITC - one of India’s foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports Is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel and Greeting cards

ITCs Rural Venture 

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Interdependence between Agri-based businesses and the farm sector constitutes a sustainable platform to enlarge its contribution to the Indian rural sector ITC’s globally recognized e- Choupal initiative is the world’s largest rural digital infrastructure benefiting over 4 million farming families

E-Choupal’s Highlights  

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Relevant & Real time Information : Commodity prices, Local weather, News Customized Knowledge Farm Management, Risk Management Supply Chain for farm inputs Direct marketing channel for farm producers Lower transaction costs, Better value through traceability

Choupal Sagar  

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Choupal Sagar is the culmination of all farming activities in one place Seven thousand sq. ft stacked with brand names… place where: Sonata watches and Usha, Prestige and Hawkins home appliances jostle for space with , Italio, Cosmo, Springwood and John Players shirts, jeans and Philips and LG products TVS victor motorcycle and, a few rows down the hall, you can buy fertilizers and pesticides or motor pumps

ITC’s Environmental Success   

ITC has been Carbon positive 3 years in a row Water positive 6 years in a row 100% solid waste recycling

ITC’s Social Success  

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ITC’s businesses generate livelihoods for over 5 million people ITC’s Social and Farm Forestry initiative has greened over 80,000 hectares creating an estimated 35 million persons per day of employment among the disadvantaged ITC’s Watershed Development initiative brings precious water to nearly 35,000 hectares of dry lands and moisture-stressed areas

Other successes     

ITC Foods has managed a 10 per cent market share in segments in which the others are operating Biscuits {Rs 4,500 crore (Rs 45 billion) Confectionery {Rs 2,000 crore (Rs 20 billion) Atta and salt {over Rs 1,000 crore (Rs 10 billion) among others. The non-cigarette FMCG business has surpassed the company's hospitality business and is closing the gap with its paper business. Also, the FMCG business is growing much faster than others: FMCG revenues in the first quarter were up 90 per cent compared to hotel growth of only 36 per cent and paper of 22 per cent. Of course, the agri-business grew handsomely by 64 per cent and is the second-largest revenue earner after tobacco.

Other successes Contd.. In confectionery, ITC again changed the rules of the game by introducing flavoured mints in orange and lemon for Mint-O, and as much as 50 per cent of the mint volumes now come from this category.  As for the ready-to-eat food market, ITC has created two distinct segments -- the upper end catered through the Kitchens of India brand (based on recipes from its restaurants in Welcomgroup hotels)  and the mid-market through the Aashirwad series. ITC executives admit that this is a small market {total size: Rs 80 crore (Rs 800 million)} but it's growing at 35 per cent per annum. And even though a large number of players are packing meals into packets, Aashirwad is spreading the banquet across 15,000 retail stores, while Kitchens of India is available at 7,000 outlets. 

Core Competencies    

Unmatched Distribution Reach Superior brand-building capabilities Effective supply chain management Acknowledged service skills in hoteliering

Reasons for success Diversification Strategy  ITC leveraged its traditional businesses to develop new brands for new segments 

CHANGE MANAGEMENT ITC Foods open to tie-ups for adding capacities in biscuits  ITC is now engaged in elevating its “partnership” with Indian farmers to a new paradigm by leveraging information technology through its trail-blazing eChoupal initiative  ITC’s net profit dragged by 4% in June quarter 2008 due to higher spending on advertisements for the newly launched FMCG products but, 1. The company is aggressively investing in assets and promotional activities to generate future cash flows, 

2. not depending on the cigarettes segment completely,