Itc Limited

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ITC LIMITED

CONTENTS TOPICS Introduction Product Profile Marketing Strategies e - Choupal Case Study New Launches

Introduction         

Type: Public (BSE:ITC) Founded: 24 August 1910 Radha Bazar Lane, Kolkata, India Headquarters: Kolkata, India Key people: Yogesh Chander Deveshwar, Chairman K. Vaidyanath, Director, Partho Chatterjee, CFO Industry: Tobacco, foods, hotels, stationery, greeting cards Products: Cigarettes, packaged food, hotels, apparel Employees: over 25,000 (2009) Website: http://www.itcportal.com/ Forbes Global 2000 List: 987 rank (2009) Sales ($ billion): 3.65  Profits($ billion): 0.79  Assets($ billion): 4.43  Market Value($ billion): 13.48 

ITC is one of India's foremost private sector companies. ITC is rated among the World's Best Big Companies Asia's 'Fab 50' World's Most Reputable Companies by Forbes magazine India's Most Respected Companies by BusinessWorld India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times.  ITC also ranks among Asia's 50 best performing companies compiled by Business Week.      

 ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

A brief history  ITC incorporated on August 24, 1910 under name 'Imperial Tobacco Company of India Limited'.  1925: Packaging & Printing Business.  1975: Hotels business with acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'.  1979: Paperboards business by promoting ITC Bhadrachalam Paperboards Limited.  November 2002: merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.  1985: Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.  1990: Agri Business Division. 2000 e-Choupal initiative began.  2000: Expressions range of greeting cards.  2000: Lifestyle Retailing business with the Wills Sport range. 2002: Wills Classic formal wear 2002: John Players and later on Miss Players 2003 : Wills Clublife evening wear.  2002: Paperkraft 2003: Classmate

A brief history (contd.)  2002: safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.  2000: ITC Infotech India Limited  August 2000: Kitchens of India  2002: mint-o and Candyman confectionery and Aashirvaad atta. 2003: introduced Sunfeast 2007: Bingo!  2003: Agarbattis (incense sticks) Spriha and Mangaldeep.  July 2005: Essenza Di Wills 2007: Fiama Di and Superia 2008: Vivel De Wills & Vivel range of soaps and shampoos

ITC’s Corporate Strategies ITC’s corporate strategies are : Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

ITC PRODUCTS  FMCG  AGRIBUSINESSES  INFORMATION TECHNOLOGY

WHAT IS FMCG? FMCG INDUSTRY (Fast Moving Consumer Goods) 0r CPG (Consumer Packaged goods) “ARE THOSE CONSUMABLES WHICH ARE NORMALLY CONSUMED BY THE COSUMERS AT A REGULAR INTERVAL”

PRIMARILY DEALS WITH  PRODUCTION  DISTRIBUTION AND  MARKETING OF CONSUMER PACKAGED GOODS

 FMCG products are generally replaced or fully used up over a short period, usually a few days or weeks, or months, but within one year  FMCG industry is regarded as the fourth largest sector with total market size of US$13.1 billion.  The competition among FMCG manufacturers is also growing and as a result of this, investment in FMCG industry is also increasing

FMCG PRODUCTS CIGARETTES FOODS LIFESTYLE RETAILING PERSONAL CASE EDUCATION AND ATATIONARY SAFETY MATCHES AGARBATTIS

CIGA RET TE S

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

FOODS

The Foods business is today represented in 4 categories in the market. These are: Ready To Eat Foods Staples Confectionery Snack Foods In order to assure consumers of the highest standards of food safety and hygiene ITC gains market standing in all its 6 brands Kitchens of India –pickles, masalas, curry pastes, ready made foods Aashirvaad – atta, salt, paste, chilli powders Sunfeast – biscuits, cakes, pasta mint-o – toffees ( “minto fresh khao laila majnu ko patao”) Candyman – eclairs, fruity, different flavours Bingo! – chips and snacks

LIFES TYL E RETAILING WILLS LIFESTYLE- “THE FASHION DESTINATION” INCLUDES-Wills Classic work wear ,Wills Sport relaxed wear, Wills Clublife evening wear ,Wills Signature, John Players

PERSONAL CARE Products- Fragnances, shampoos, shower gels, conditioners, beauty bath soaps ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

EDUCA TION A ND S TA TIONA RY  ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”,  CLASSMATE-India’s truly largest National brand

SAFETY MATCHES AND AGARBATTIS Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro.

AGRIBUSINESSES 

  

ITC's now India's leading corporate in the agricultural sector is based on strong and enduring farmer partnerships and transformed the rural agricultural sector. A unique rural digital infrastructure network ITC-largest exporters of Agri products-Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices. ITC is the largest buyer, processor and exporter of leaf tobaccos in India

ITC INFOTECH

BACKGROUND  A Global IT services company  A Fully-owned subsidiary of ITC Limited.  Headquartered in Bangalore, India, with wholly-owned subsidiaries in UK and USA.  Established a service delivery footprint across more than 140 countries worldwide  provides outsourced IT services and solutions to leading global customers

 Rated among the ‘World's Most Reputable Companies’ by Forbes magazine BUSINESSdeliver end-to-end IT solutions and services to its customers worldwide  Banking  Financial Services & Insurance (BFSI)  Consumer Packaged Goods (CPG)  Hospitality Manufacturing  Media & Entertainment  Retail  Travel  Transportation

.

SERVICESAdvanced technologies Business consulting Customer Relationship Management Customer Applications Engineering Services Enterprise Resource Planning Infrastructure services Product lifecycle management Quality Assurance and testing Quality controlling ADVANTAGES•Key players in the off shoring arena •Flexibility in relationship •Part of every strategic partnership •Reward system •Performance Management System

PAPERBOARDS AND PACKAGING It Includes

PAPERBOARD AND SPECIALTY PAPERS ITC’s Paperboard and Specialty Papers Division is India’s largest and most technologically advanced paper and paperboards business.  This business enjoys market leadership in the value-added paperboards segment.  Has a significant share of the Indian paperboards market.  Is also the largest Indian exporter of coated boards. This business has won numerous awards for quality, environmental management systems and product excellence ITC is a front-runner in introducing environment-friendly Elemental Chlorine Free (ECF) technology  It is the first-mover in the field of collecting and recycling post-consumer waste from residential localities, corporate and educational institutes.

The Products are

PACKAGING

 

Virgin Folding Box Boards Solid Bleached Boards



Recycled





Coated Duplex Whiteback Coated Duplex Greyback White Liner



SPECIALTY



Liquid packaging Gypsum Liners Cupstock Barrier coated cartonboards Cast coated paper & boards



   

PACKAGING 

ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging.



It converts over 50,000 tonnes of paper and paperboard per annum into a variety of value-added packaging solutions



ITC is the first-choice supplier of high value added packaging



Its client list includes national and international companies like British American Tobacco, Philip Morris International, Surya Nepal Private Limited, VST Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India Pvt Ltd., Pernod Ricard, Allied Domecq, Whyte & Mackay, Hindustan Lever, Tata Tetley, Nestle and Reckitt Benkiser India Ltd.



It supplies packaging to cover 70 billion cigarettes a year domestically, and supplies packaging for 15 billion cigarette sticks a year for the export market.



It is the largest supplier of liquor mono cartons in the country.

Product Range             

Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons Fluted Cartons Shoulder Boxes Pre-printed cork tipping Flexibles Packaging

EDUCATION AND STATIONARY PRODUCTS ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include-



Manufacturer of India’s first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard.



Knowledge of image processing, printing & conversion garnered from its Packaging & Printing Business.



Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business.

ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”, 

Classmate addressing the needs of students



Paperkraft targeted towards college students and executives.



Classmate-



India’s truly largest National brand 65,000 outlets across the country over 300 variants in its range which comprises notebooks, long books, practical books, drawing books, scrap books, reminder pads etc

 

  

    





Classmate Fun N Learnrange of children books targeting pre school learners, comprising categories like Pre School Learner, Active Minds and Read Aloud Tales with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's first lessons are truly enjoyable Classmate Invento Geometry Boxes, launched for school students Classmate Victor is the popular segment variant of Geometry Classmate pens Classmate portfolio is its range of HB Jet Black pencils Classmate has successfully run the “Classmate Young Author & Artist Contest” for 5 years Paperkraft brand recently launched premium business paper – an environment friendly multipurpose paper for office and home use. The paper has been crafted by ITC’s Bhadrachalam unit using a pioneering technology, called “Ozone Treated Elemental Chlorine Free technology”.

HOTELS

 ITC entered the hotels business in 1975

with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola ITC- Welcomgroup pioneered the holistic concept of 'branded accommodation' in the hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the 'Executive Club‘ ITC- Welcomgroup's properties are classified under four distinct brands: ITC Hotels - Luxury Collection Welcom hotels  Fortune hotels  Welcom heritage ITC Green Centre  The ITC Green Centre in Gurgaon  headquarters of ITC's Hotels Business is the physical expression of this commitment to sustainability - Ecological, Social and Economic. WelcomEnviron is ITC-Welcom group's vision for a green world

GROUP COMPANIES Includes SUBSIDIARIES  JOINT VENTURES  ASSOCIATE COMPANIES

SUBSIDIARIES Surya Nepal Private Limited (SNPL)

Is an Indo-Nepal-UK joint venture



started operations in Nepal in 1986



a subsidiary of ITC Ltd, India, is the largest private sector enterprise in Nepal



The balance shares are held by dispersed Nepalese shareholders and British American Tobacco, UK

LINES OF BUSINESS  Includes manufacture and marketing of cigarettes and readymade garments as well as export of readymade garments 



Total turnover of over US $100 million.

Company is the winner of the prestigious FNCCI National Excellence Award



Bay Islands Hotels Limited





A 100% subsidiary of ITC Limited. The Company owns the hotel "Fortune Resort Bay Island" at Port Blair licensed to ITC Limited Is operated by Fortune Park Hotels Limited It under an Operating & Marketing Services Agreement.



Gold Flake Corporation Limited



It is wholly owned subsidiary of ITC Limited. Nature of business is specific to general trading ITC Filtrona Limited is a 50% joint venture of Gold Flake Corporation Limited with Cigarette Components Limited, U.K.

  

 

Landbase India Limited  

 



A subsidiary of ITC, owns the prestigious Classic Golf Resort in the outskirts of Delhi Classic Golf Resort is the first South Asian signature championship course designed by Jack Nicklaus Spread over 300 acres at the foothills of the picturesque Aravalli It is the promoter of the reputed high-lifestyle condominium project Laburnum in Gurgaon It was a pioneering project in setting new benchmarks in luxury living

Srinivasa Resorts Limited    

A subsidiary of ITC Limited. ITC has 68% stake in the Company. The Company owns the "ITC Kakatiya" at Hyderabad It is operated by ITC Limited.

JOINT VENTURES Maharaja Heritage Resorts Limited  ITC Limited has an ownership interest of 50%  Is a joint venture with Marudhar Hotels Private Limited  The joint venture company currently operates across India under the "Welcom Heritage" brand  Welcom Heritage, represents the best traditions of heritage hospitality and tourism in India

ASSOCIATE COMPANIES Gujarat Hotels Limited   

holds 45.78% in Gujarat Hotels Limited The Company owns the "Welcom Hotel Vadodara" at Vadodara. Is operated by ITC Limited under an Operating License Agreement

International Travel House   

Is one of the largest total travel management companies in India presence in 13 cities offers a range of services which include corporate travel, car rental, destination management services, world class holidays, incentive group travel, conference management and foreign exchange.

MARKETING STRATEGY OF ITC LTD BCG, SWOT & VARIOUS MARKETING STRATEGIES

BCG MATRIX OF ITC LTD -

BCG MATRIX FOR ITC LTD Stars Hotels Paperboards/ Packaging. Agri business. Cows FMCGCigarettes

? FMCG- Others

Dogs Maybe ITC Infotech.

Various marketing strategies 

“SHARUKH KHAN” “DHONI” & “SURYA” as brand ambassador of SUNFEAST



E-COMMERCE activities for READY-TO-EAT Snack brand KOI Tie-up with leading portals to promote snack range Online advertising & can order snack on toll-free number – 1600

 

 12. 13. 14. 15. 

ITC FOOD division rolled out new products in categories – Staples Ready-to-eat Confectionery Snack Food ITC Foods has contract manufacturing facility. Panel tastes & approves it before processing takes place.

 2. 3. 4. 5.

KOI – premium range( READY-TO-EAT CATEGORY) targeted at Tourists Consumers who order at Home NRIs Women in age group 25 plus



Expression Greeting card available around 10,000 outlets across 700 towns.



Trying to convert Matchbox into high-involvement product from low byGiving advise to housewives Giving puzzles Questions at back of matchbox – “I KNO SERIES”

    

Implements world-class hygiene standards through HACCP certification. Manufacturer of India’s first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper & paperboard.



KAREENA KAPOOR is the brand ambassador of VIVEL



The commitment helped in rapidly gaining market standing in all its 6 brands: Kitchens of India Aashirvaad Sunfeast mint-o Candyman Bingo!

          

Classmate pens has ergonomic design, reduces stress Pencils for school kids - lesser lead wear out Classmate notebooks - ITC's Corporate Social Responsibility message on its back. For every four Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative. “Classmate Young Author & Artist Contest” for 5 years.

 2. 3. 4.      



Wills Lifestyle provides 'International Shopping Experience' through world-class ambience customer facilitation clearly differentiated product presentation. Preferred shopping destinations customers can browse at leisure shop in a relaxed & pleasing atmosphere use of space is refreshing spacious changing rooms Store offers international retailing ambience with extensive use of (a) Glass, (b) Steel, and (c) Granite reflecting the most contemporary trends in store design Wills Lifestyle is the title partner of the country’s most premier fashion event - Wills Lifestyle India Fashion Week. Making designer wear available at their stores designed by Manish Arora, Rohit Bal, Shantanu & Nikhil, Rohit Gandhi & Rahul Khanna.



 5. 6. 7.

Miss Players with AMRITA RAO as face of brand provides clothes & accessories designed keeping in mind the tastes of the young Indian woman. John Players is No. 1 fashion brand for the youth. This foray leverages ITC’s proven competencies in understanding consumer insights brand building design capabilities. Hrithik Roshan, is its ambassador.

 11. 12. 13. 14. 15. 

offers a complete and vibrant wardrobe incorporating most contemporary trends an exciting mix of colours playful styling trendy textures comfortable fits. The brand is available over 240 exclusive stores and over 1500 multi-brand outlets.

 2. 3.  5. 6. 

9. 10.

Personal Care Products Manufacturing meets stringent requirements of hygiene benchmarked manufacturing practices Contemporary technology and latest manufacturing processes combined to produce superior products which rank high on quality consumer appeal. Extensive insights through its numerous consumer engagements provided the platform for its R&D and Product Development teams to develop Superior differentiated products that meet the consumer's stated and innate needs.



The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance



Minto reengineered and the flavour variant - orange - introduced.

     

ITC Infotech offers IT services and solutions across five key industry verticals: Banking, Financial Services & Insurance (BFSI) Consumer Packaged Goods (CPG) & Retail Manufacturing & Engineering Services, Travel Hospitality & Transportation Media & Entertainment.



ITC Infotech conforms to the highest standards in international process quality, with ISO 27001, ISO 9001, SEI CMM Level 5 and BS 7799 accreditations.



ITC-Welcomgroup - first to introduce branded cuisine.



first to launch idea of a 'Hotel within a Hotel' by segmenting, customizing and branding hotel services



  

ITC-Welcomgroup has exclusive tie-up with Starwood for bringing 'Luxury Collection' to India WelcomHeritage brings together chain of palaces, forts, havelis and resorts. ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation‘ Have privilege of hosting world leaders, Heads of State and discerning guests from across the world and within.



Fortune Hotels (smaller towns and cities) ideal for the budget traveller





At ITC Green Centre energy consumption has been reduced significantly through design integration decreases the load on air-conditioners zero water discharge building.



WelcomEnviron has guiding principle of 'Reduce, Reuse and Recycle’

 



The Paperkraft brand recently launched premium business paper – an environment friendly multipurpose paper for office and home use. The paper has been crafted by ITC’s Bhadrachalam unit using a pioneering technology, called “Ozone Treated Elemental Chlorine Free technology”.



In recognition of its quality products & processes the business has been awarded with ISO 9001:2000 by Messrs Det Norske Veritas.



The Company commenced marketing Agarbattis (incense sticks) which leverages the core strengths of ITC in nation-wide distribution and marketing brand building supply chain management manufacture of high quality paperboards creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis.

6. 7. 8. 9. 10.



Mangaldeep Yantra - specially created fragrance evokes ambience of a temple.

    5. 6.  10. 11. 



It has recently been accredited with IFAT certification (internationally recognized benchmark for fair trade practices) Mangaldeep available in 3-in-1 and 5-in-1 Innovative 'Fragrance-Locked' packaging. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an initiative to improve the quality better value realization for women. Candles - Each candle's fragrance, shape and design are carefully chosen with distinct sensation ambience in mind. ITC caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements - four world-class mills in India. All four manufacturing units are ISO 9001, ISO 14001 and OHSAS 18001 certified and meet strict Environment, Health and Safety norms



Division-wide implementation of Enterprise Resource Planning (ERP) by 2009



Supporting the cause of clean technology, ITC is a front-runner in introducing environment-friendly Elemental Chlorine Free (ECF) technology, and more recently, Ozone bleaching in India. ITC’s focus on being a carbon-positive, water-positive, zero-solid waste disposal organization





  

ITC’s Paperboards and Specialty Papers business has also been a firstmover in the field of collecting and recycling post-consumer waste from residential localities, corporate and educational institutes. ITC reaches out directly to consumers with its Wealth Out of Waste (WOW) campaign entered the Flexibles and Corrugated Cartons business. ITC has enhanced value of some of the most favoured brands with superior look-and-feel packaging

e-Choupal           

To Tackle Challenges Fragmented farms Weak infrastructure Involvement of various intermediaries e-Choupal unshackles low investment low productivity weak market orientation low value addition low margin low risk taking ability e-Choupal

What ITC has done?  



Transformation Linking -procurement of agriculture and aquaculture products such as soyabeans, coffee, wheat, rice, pulses, maize, spices and prawns, shrimps. Each e-choupal serves approximately 10 villages within 5 kilometers radius e-Choupal

2007

By 2012

States Covered

10

15

Villages Covered

40,000

100,000

No. of e-Choupals

6,500

20,000

Farmers e-empowered

4 million

10 million

Problems Encountered  infrastructural inadequacies,  first time internet users  How challenges are encountered  Power back  upgrading BSNL exchanges  installation of VSAT equipment, Mobile Choupals, 24x7 helpdesk etc 

Solar Power

VSAT equipment

Mobile Choupal

Mandi

e-Choupal

Inbound Logistics

Pricing

Display & Inspectio n Auction

Bagging & weighing

Inbound Logistics

Operation al Process

Inspection & Grading

Weighing & Payment

Payment

Outbound Logistics

Hub Logistics

Business Model

The e-Choupal Services Information Knowledge Purchase-choupal Sales

saagar

The Case Study

ITC: The Indian Tobacco Major's Diversification Strategies for Market Leadership

“From a leading cigarette manufacturer to an umbrella group that offers a diversified product mix”

This is the story here…………….

The case, "ITC's Diversification Strategy" gives an overview of •ITC's diversification into related and unrelated areas in recent years. •gives a detailed account of the areas in which ITC has diversified. •The competition that ITC is going to face in each of the segments it has diversified into is also explored.

Objectives  



To highlight ITC's need to diversify its portfolio of product mix To highlight the strategies adopted by ITC to maintain its position as one of India's leading companies To discuss the future possibilities of strategic planning by ITC

What they did was… Customisation of product Brand image enhancement

The Company’s relentless efforts to create value through •International quality products •Significant investments in technology and product development •Strong portfolio of brands have enabled it to maintain its leadership position in terms of market standing and share.

NEW PRODUCTS LAUNCHED-2008-09

Paperkraft Copier Paper

Classmate Pens

Classic Verve

Classmate Invento

Mangaldeep Durbar Gold

Fortune Select Dasve

Classmate Pencils

Mikkel

Fortune Select Manohar

References www.itcportal.com  www.icmrindia.org/casestudies/catalogue /.../BSTR040.htm  www.ibscdc.org/Case_Studies/.../Diversif ication%20Strategies/DIS0009.htm 

NO FULL STOP FOR ITC!!

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