INTRODUCTION ABOUT THE ITC INDUSTRY

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, 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 initialised
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.

1925: Packaging and Printing: Backward Integration

Though the first six decades of the Company's existence were primarily devoted to the
growth and consolidation of the Cigarettes and Leaf Tobacco businesses, ITC's Packaging
& Printing Business was set up in 1925 as a strategic backward integration for ITC's
Cigarettes business. It is today India's most sophisticated packaging house.
1975: Entry into the Hospitality Sector - A 'Welcome' Move
The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcome
group Hotel Chola' (now renamed Welcome hotel by ITC Hotels, Cathedral Road,
Chennai).
The business also launched The two new brands: Mementos by ITC Hotels - A new brand
of luxury hotels & resorts that offers those rarest of luxuries i.e Great Memories and Storii
by ITC Hotels.
ITC Hotels recently took its first step toward international expansion within upcoming
super premium luxury hotel in Colombo, Sri Lanka.
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited. Bhadrachalam Paperboards amalgamated with the Company effective
March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division

1985: Nepal Subsidiary - First Steps beyond National Borders

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified
into manufacturing and exports of garments.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry
1990: Agri Business - Strengthening Farmer Linkages
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business
Division for export of agri-commodities. The Division is today one of India's largest
exporters
2002: Education & Stationery Products - Offering the Greenest products
ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To
augment its offering and to reach a wider student population, the Classmate range of
notebooks was launched in 2003. Classmate over the years has grown to become India's
largest notebook brand and has also increased its portfolio to occupy a greater share of the
school bag. Years 2007- 2009 saw the launch of Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. 'Papercraft' offers a diverse portfolio
in the premium executive stationery and office consumables segment.
2000: Information Technology - Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned
subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities
in this area..
2001: Branded Packaged Foods - Delighting Millions of Households
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth
In 2002, ITC entered the confectionery and staples segments with the launch of the
brands mint-o and Candyman confectionery and Aashirvaad Atta (wheat flour).
The ITC Master Chef Frozen Snacks range was also introduced the same year, marking the
Company's first venture into the frozen snacks segment
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire
value chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like in, Mangal deep and Aim. Mangal deep is a highly
established national brand and is available across a range of fragrances like Rose, Jasmine,
Bouquet, Sandalwood and 'Fragrance of Temple'.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', 'Vivel' 'Superbia' brands which have received encouraging consumer
response and have been progressively extended nationally
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.
ITC company Profile
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 Revenue of ₹ 69,481 crores and Net
Profit of ₹ 18,753.31 crores (as on 31.03.2023). ITC was ranked as India's most admired
company, according to a survey conducted by Fortune India, in association with Hay Group.
ITC has created over 6 million sustainable livelihoods. Nearly 43% of the total energy
consumed in ITC is from renewable sourcesITC is collaborating with NITI Aayog to
progressively build capacity of 2 million farmers in 27 Aspirational Districts to help
enhance rural incomes.ITC is investing in India's future by building world-class
consumer goods factories and iconic hospitality assets that will contribute to the
country's competitive capacity. These investment projects underpin the Company's
support to the Government's "Make in India" vision.

ITC FMCG PRODUCTS LIST

1. FOODS Biscuits & Cakes

Sunfeast Marie Light
Sunfeast Dark
Fantasy Sunfeast
Farmlite
Sunfeast Bounce
Sunfeast Mom’s Magic
Sunfeast Milk Biscuit

2. Noodles and Pasta

Sunfeast YiPPee Pasta
Sunfeast YiPPee! Noodles

3. Staples
Aashirvaad Atta
Aashirvaad Spices
Aashirvaad Iodised Salt.

4. Snacks
Bingo Starters
Bingo Mad Angles
Bingo No Rulz
Bingo Original Style
Bingo Potato Chips
Bingo Tedhe Medhe.

5. Beverages
B Naturals
Sunbean Gourmet Coffee
Sunbean Beaten Caffe
Sunfeast Wonderz Milkshakes.

6. Dairy
Aashirvaad Svasti Ghee
7. Aashirvaad Instant mix Ready to Eat
Kitchens of India

8. Confectionery
Jelimals
Candyman Fantastik
Candyman Choco Double Eclairs
Candyman Tadka Time

9. Chocolates
Fabelle Premium Chocolate
Fabelle Luxury Chocolates

10. Stationery
Classmate
PaperKraft

11. Personal Care

Fiama
Savlon
Charmis
Nimyle
Engage
Essenza Di Wills
Vivel

It seeks to achieve this value objective by not only driving each of its businesses towards
international competitiveness, but by also consciously contributing to the competitiveness of
the entire value chain. As a Company that continuously strives to be ‘Citizen First ’, ITC
attaches critical importance to its responsibility to contribute to the ‘Triple Bottom Line ’,
namely the augmentation of economic, ecological and social capital. Pan-Indian Organisation
ITC employs over 20,000 people at more than 60 locations across India. ITC continuously
endeavours to enhance its wealth generating capabilities in a globalising environment to
consistently reward more than 4,45,000 shareholders, fulfil the aspirations of its stakeholders
and meet societal expectations.

VISION & MISSION

MISSION VISION

Sustain ITC's position as one of India's most

To enhance the wealth generating capability valuable corporations through world class
of the enterprise in a globalising performance, creating growing value for the
environment, delivering superior and Indian economy and the Company's
sustainable stakeholder value stakeholders

wealth generating capability of the enterprise in a globalising environment, superior and

sustainable stakeholder value
CORE VALUES

ITC's Core Values are aimed at developing a customer-focused, high-performance

organisation which creates value for all its stakeholders:
TRUSTEESHIP
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualise stakeholder value and interest on a long term sustainable
basis.
CUSTOMER FOCUS
We are always customer focused and will deliver what the customer needs in terms of value,
quality and satisfaction.
RESPECT FOR PEOPLE
We are result oriented, setting high performance standards for ourselves as individuals and
teams.
We will simultaneously respect and value people and uphold humanness and human dignity.
We acknowledge that every individual brings different perspectives and capabilities to the
team and that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.
EXCELLENCE
We do what is right, do it well and win. We will strive for excellence in whatever we do.
INNOVATION
We will constantly pursue newer and better processes, products, services and management
practices.
NATION ORIENTATION
We are aware of our responsibility to generate economic value for the Nation. In pursuit of
our goals, we will make no compromise in complying with applicable laws and regulations at
all levels.

CORPORATE STRATEGIES

ITC is a board-managed professional company, committed to creating enduring value for the
nation and the shareholder. It has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.

ITC'S CORPORATE STRATEGIES ARE:

 Create multiple drivers of growth by developing a portfolio of world class businesses
that best matches organisational 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.
ITC SWOT ANALYSIS

ITC SWOT ANALYSIS

encompasses a comprehensive assessment that examines the strengths, weaknesses,

opportunities, and threats faced by ITC Ltd, a leading Indian conglomerate that operates in
diverse sectors.The company was formerly known as the Imperial Tobacco Company of India
Limited. It is based in India, and it has established itself as a powerhouse in multiple
industries by being a significant player in sectors, such as fast-moving consumer
goods (FMCG), agribusiness, hotels, paperboard, and information technology.ITC Ltd traces
its origins back to 1910 when it was incorporated as the Imperial Tobacco Company of India
Limited. At the time, its primary focus was on manufacturing and marketing cigarettes,
catering to the growing demand in the Indian market. The company established its first
manufacturing facility in Munger, Bihar, and quickly gained a reputation for producing high-
quality tobacco products.From its humble beginnings as a tobacco company, ITC Ltd has
transformed into a diverse conglomerate with a remarkable presence in various industries. In
this article, we will be examining the internal factors that empower ITC and the external
elements that pose challenges. This SWOT analysis will help to shed light on the company’s
current standing,growth potential, and strategic implications, allowing stakeholders to gain
valuable insights into its prospects.
ITC STRENGTHS

1)

1.Diversified Portfolio
In the highly competitive business landscape, companies that possess a diversified portfolio
enjoy a distinct advantage. ITC has strategically ventured into multiple industries, including
fast-moving consumer goods (FMCG), agribusiness, hotels, paperboard, and information
technology.

This diversification has proven to be a pillar of strength for the company. ITC Ltd’s
diversified portfolio provides a buffer against market fluctuations that may affect individual
sectors. By operating in multiple industries, the company can mitigate the impact of adverse
conditions in any one sector. Diversification reduces ITC Ltd’s reliance on any single
industry, particularly its historical association with tobacco.

2.Strong Brand Equity

Brand equity plays a pivotal role in the success and sustainability of any business. For ITC
Ltd, a conglomerate operating in various industries, solid brand equity is undeniably a
significant strength. ITC Ltd’s substantial brand equity fosters a high level of consumer trust
and loyalty. Through consistent delivery of quality products and services, the company has
cultivated a positive reputation among its target audience.

3.Extensive Distribution Network

An extensive distribution network is often a critical factor that can propel a company to
success. ITC Ltd possesses an extensive distribution network that spans urban and rural areas
in India. This enables the company to reach a vast and diverse consumer base.

By establishing a strong foothold across different regions and markets, ITC Ltd can tap into a
wide range of customers with varied preferences and purchasing power. ITC Ltd’s extensive
distribution network also provides a competitive advantage when launching new products its
established distribution channels to reach a broad audience quickly.

ITC WEAKNESSES

The following are the weaknesses that pose challenges to ITC’s growth and development:

1.Dependence on Cigarette Business

While ITC Ltd has established itself as a diversified conglomerate with interests spanning
various sectors, its significant reliance on the cigarette industry poses challenges and
vulnerabilities. The cigarette market is highly saturated and fiercely competitive. ITC Ltd
faces intense competition from both domestic and international tobacco companies.

The market dominance of established players, coupled with the challenges of brand loyalty
and consumer preferences, makes it difficult for ITC Ltd to expand its market share
significantly. Also, the cigarette industry is subject to stringent regulations and increasing
scrutiny worldwide. Governments are implementing stricter regulations, including higher
taxes, graphic health warnings, advertising restrictions, and bans on smoking in public places.

2.Geographic Concentration
Despite the advantages of ITC’s domestic market, it also exposes the company to
vulnerabilities and limitations. Geographic concentration restricts ITC Ltd’s exposure to a
single market, namely India. While the Indian market is vast and offers tremendous growth
potential, over-reliance on a single market limits the company’s ability to diversify its
revenue streams.

Market fluctuations, economic downturns, or regulatory changes specific to India can have a
significant impact on ITC Ltd’s overall financial performance. Also, operating primarily in
the Indian market exposes ITC Ltd to intense competition from domestic and regional
players.

ITC OPPORTUNITIES

The following are opportunities for ITC’s growth and development:

1.Growing FMCG Market

ITC Ltd has the potential to capitalize on the expanding Fast-Moving Consumer Goods
(FMCG) market. The growing FMCG market offers ITC Ltd an opportunity to diversify its
revenue streams beyond its core businesses. While the company has a strong presence in
sectors such as tobacco, hotels, paperboard, and agribusiness, the FMCG market provides a
new avenue for expansion. The FMCG market thrives on innovation and new product
development, providing ITC Ltd with an opportunity to showcase its research and
development capabilities. The company can leverage its expertise in product development,
packaging, and formulation to introduce innovative and value-added FMCG products. In
conclusion, ITC Ltd’s diverse portfolio of businesses can create synergies and cross-
promotional opportunities within the FMCG market.

2.Expansion into Emerging Markets

ITC Ltd has the potential to leverage its capabilities and resources to tap into the growing
economies of emerging markets. Emerging markets offer ITC Ltd access to a large and
relatively untapped consumer base. A growing middle class, rising disposable incomes, and
increasing consumer spending power characterize these markets.By expanding its presence
into emerging markets, ITC Ltd can target a new set of consumers who are eager to explore
and adopt new products and brands. By strategically entering and expanding in emerging
markets, ITC Ltd can position itself for long-term growth, enhanced profitability, and
sustainable business performance.

3.Focus on Health and Wellness

ITC Ltd can leverage the growing consumer demand for health and wellness products and
services. There is a global shift towards health consciousness, with consumers increasingly
prioritizing their well-being and seeking healthier lifestyle choices.

ITC THREAT

The following are some of the threats that ITC faces:

1.Intense Competition
ITC Ltd faces fierce competition from both domestic and international players across its
business segments. Intense competition often leads to price wars as companies strive to
capture market share. Price-based competition can result in reduced profit margins for ITC
Ltd, as it may be forced to lower prices to remain competitive.

This can impact the company’s profitability and financial performance, making it challenging
to maintain sustainable growth and invest in innovation and expansion. Also, intense
competition can lead to market saturation, impacting ITC’s brand loyalty.

2.Changing Regulatory Landscape

ITC Ltd is subject to a wide range of regulations and policies imposed by governments and
regulatory bodies. The evolving regulatory landscape often brings about increased
compliance costs and regulatory burdens for companies. New regulations, amendments to
existing laws, or stringent enforcement can necessitate changes in processes, systems, and
operations.Compliance with these regulations may require significant investments in
technology, infrastructure, training, and monitoring systems. Such costs can impact ITC Ltd’s
profitability and financial resources, diverting funds from growth initiatives and hindering the
company’s ability to compete effectively.

3.Rising Input Costs

ITC Ltd is reliant on various inputs such as raw materials, energy, labour, and other resources
to produce its goods and services. Higher input costs can put ITC Ltd at a competitive
disadvantage compared to its rivals. If competitors can procure inputs at lower costs, they
may be able to offer products at more competitive prices, potentially capturing market share
from ITC Ltd.

ITC COMPETITORS

An Indian company based out in Kolkata; ITC is a diversified multi-business conglomerate

industry. Its business operations are divided into five segments, Hotels, Fast Moving
Consumer Goods (FMCG), Paperboards and Packaging, Information and Technology, and
Agriculture.It is India’s foremost multi-business enterprise and rated as the best big
companies in the world. The Boston Consulting Group has featured ITC as one of the world’s
largest viable value creator of the consumer goods industry. It has established various brands
like Sunfeast, Sunbean, Aashirvaad, Dark Fantasy, Fabelle, Kitchens of India, and many
more.ITC’s Hotel business supports the national importance to develop avenues of foreign
exchange earnings and to boost tourism. Started its hotel journey with the Sheraton Chola,
Chennai in 1975, ITCs has redefined the face of Indian hospitality. At present, ITC Hotels is
considered as one of largest hotel chains in the Country which has about 100 hotels across 70
destinations.

Through this article, let us discuss the various ITC competitors with respect to FMCG and
Hotels.

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 purifiersIt has
about 35 brands which span across 20 distinct categories like detergents, soaps, skin care,
deodorants, tea, coffee, ice cream, packaged food, and many more. The main strength of this
company is its innovation. The company’s research center continuously works and develops
innovative products which make HUL lead the consumer goods market. As HUL is
considered as a market leader in consumer goods, it is indeed a top ITC competitor.

2) 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. The company has
about eight factories and many co-packers. It is a lively company which provides their
consumers with various products of global standards. The company has about 200 brands that
range from global to local ones and their products are available in almost 191 countries. The
research and development center of Nestle is the world’s largest food and nutrition research
organization. Due to their broad portfolio of products, Nestle is considered a top ITC
competitor.

3) GODREJ CONSUMER PRODUCTS

Indian Consumer Goods, Godrej Consumer Products Limited (GCPL) is based out in
Mumbai. It is engaged in manufacturing of various products which includes hair colorants,
soap, liquid detergents, and toiletries.The company has many brands which include, Godrej
Fair Glow, Cinthol, Godrej No.1, and many more. At present, the Group has about 1.1 billion
consumers worldwide and across various businesses. The company is ranked the largest in
household insecticide and hair care players.The company is also at the top in producing the
hair care needs of the consumers. GCPL creates own strong brands in various business
segments. It focuses on innovation and expands their product portfolio by introducing many
new products. Due to their strong market position in many categories, GCPL is considered a
top ITC competitor.

4) COCA-COLA

The Coca-Cola Company is a main player in the beverage industry. It is a producer, supplier,
and marketer of concentrated syrups and beverages. The company consists of the corporate
division which is headquartered in Atlanta, Georgia and also partners with 300 companies for
bottling. It is top in producing aerated beverages, ready-to-drink coffees, and juices.The
company was established in the year 1892. The four main leading carbonated soft drinks are
Diet Coke, Coca-Cola, Fanta, and Sprite. It is also the second largest provider of sports drinks
and packaged water and third in the energy drink.The company is popular for their eye-
catching advertisement. Their advertisement connects emotionally with people of all ages. It
has a strong financial position through their acquisitions with Thumps Up, Minute Maid etc.
Due to their brand value, Coca-Cola is considered a top ITC competitor.

5) COLGATE
Colgate is a consumer products company which is based out in New York, United States. The
company produces and supplies various health care, personal care, and household products.
The products of Colgate are marketed in about 200 countries worldwide.The company
operates in two main segments. One segment focuses on oral hygienic products, detergents,
and soaps. The other segment focuses on veterinary products for cats and dogs. It is a global
leader in oral care producing the leading brands of toothpaste and the manual tooth brush.The
worldwide market share of Colgate’s toothpaste was estimated about 44.4%, and that for
manual toothbrushes was estimated about 33.4% during the year 2014. The oral care business
also includes pharmaceutical products. The company has a wide range of products categories
and their chances of success and finance are in a better position. Due to high market share,
Colgate is considered a top ITC competitor.

6) L’OREAL

L’Oreal is a top skin care and beauty brand that is sold in many retail outlets. It produces the
most innovative products for the consumers. The products of L’Oreal are sold in almost 120
countries worldwide. The Consumer Products Division of L’Oreal produces the best of
cosmetic innovation. Their products are distributed through various channels like
supermarkets, hypermarkets, traditional stores, drugstores and online stores. The company
produces a wide range of coloring products, makeup, hair care, and skin care. The main
strength of this brand is their vast product line which focuses on personal care and cosmetics.
It has an excellent research and development team to ensure the safety of their products. Due
to their wide presence worldwide and their product quality, L’Oreal is considered a top ITC
competitor.

ITC COMPETITORS IN HOTELS

7) 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.The main goal of the hotel is to provide the most a memorable and magical stay at their
5-star hotels and to deliver the essence of India. Over the 30 years, Leela Hotels has grown to
geta first-class collection of almost nine award-winning luxury hotels that are spread across
the main destinations in India.The main strength of this hotel is the brand and being the main
player in the hotel segment. It has about seven, five-star hotel managing about 2128 rooms in
the country. Due to their quality of rooms and their service, Leela Hotels is considered a top
ITC competitor.

8) SAROVAR GROUP OF HOTELS

Sarovar Group of Hotels is a famous hospitality company was founded in the year 1993 and
headquartered in Mumbai, India. It manages a chain of hotels for business and leisure travels
spread across various destinations in Indian and overseas. The company provides various
facilities like rooms and suites, meeting and conference rooms, and catering services.The
other portfolios include restaurants, resorts, pubs, and corporate hospitality services. It
operates under the brands Sarovar Premiere and Park Plaza for the five-star segment, Sarovar
Portico and Park Inn for three to four-star segment, and Hometel for three-start to budget
segment. Due to their various kinds of hotels and resorts worldwide, Sarovar Group of Hotels
is considered a top ITC competitor.

ITC Competitors in Cigarettes

9) 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.Philip
morris acquired Godfrey phillips, a major Cigarette manufacturer and distributor in India
which is a majority playground for ITC. The combined power and deep pockets of Philip
Morris is a challenger to the market share of ITC.

ITC COMPANY FINANCIALS STATEMENTS

BALANCE SHEET OF MAR 23 MAR 22 MAR 21 MAR 20 MAR 19

ITC (in Rs. Cr.)

12 mths 12 mths 12 mths 12 mths 12 mths

EQUITIES
ANDLIABILITIES

SHAREHOLDER'S
FUNDS

Equity Share Capital 1,242.80 1,232.33 1,230.88 1,229.22 1,225.86

TOTAL SHARE 1,242.80 1,232.33 1,230.88 1,229.22 1,225.86

CAPITAL

Reserves and Surplus 65,609.5 58,850.91 56,067.22 60,777.76 54,725.9

 5 9

TOTAL RESERVES 65,609.5 58,850.91 56,067.22 60,777.76 54,725.9

AND SURPLUS 5 9

TOTAL 67,593.8 61,399.57 59,004.62 64,029.16 57,949.7

SHAREHOLDERS 0 9
FUNDS

NON-CURRENT
LIABILITIES

Long Term Borrowings 3.28 4.54 5.28 5.63 7.89

Deferred Tax Liabilities 1,621.13 1,667.14 1,727.73 1,617.65 2,044.14

[Net]

Other Long Term 426.08 356.29 511.71 349.72 41.90

Liabilities

Long Term Provisions 201.83 186.87 157.07 143.79 132.64

TOTAL NON- 2,252.32 2,214.84 2,401.79 2,116.79 2,226.57

CURRENT
LIABILITIES

CURRENT
LIABILITIES

Short Term Borrowings 1.26 0.74 0.35 0.00 0.00

Trade Payables 4,351.26 4,223.40 4,119.31 3,446.74 3,368.28

Other Current Liabilities 7,999.51 7,198.35 5,885.24 5,524.73 6,228.04

Short Term Provisions 63.59 55.60 169.05 117.94 25.24

TOTAL CURRENT 12,415.6 11,478.09 10,173.95 9,089.41 9,621.56

LIABILITIES 2

TOTAL CAPITAL AND 82,261.7 75,092.50 71,580.36 75,235.36 69,797.9

LIABILITIES 4 2

ASSETS

NON-CURRENT
ASSETS

Tangible Assets 21,207.2 20,271.99 19,216.75 19,612.74 17,945.6

3 5

Intangible Assets 2,614.62 2,584.42 2,581.52 519.45 540.75

Capital Work-In-Progress 1,681.47 2,442.34 3,329.97 2,776.31 3,391.47

Other Assets 352.26 364.20 376.56 385.36 0.00

FIXED ASSETS 25,870.7 25,686.79 25,508.30 23,297.75 21,887.7

1 6

Non-Current Investments 16,363.5 15,657.32 12,950.38 13,455.59 14,071.4

5 5

Deferred Tax Assets [Net] 0.00 0.00 0.00 0.00 0.00

Long Term Loans And 4.07 5.06 2.37 3.31 6.21

Advances

Other Non-Current Assets 4,819.97 2,801.32 1,304.07 1,971.80 4,263.54

TOTAL NON- 47,058.3 44,150.49 39,765.12 38,728.45 40,228.9
CURRENT ASSETS 0 6

CURRENT ASSETS

Current Investments 16,357.0 11,624.95 14,046.71 17,175.02 12,506.5

7 5

Inventories 10,593.9 9,997.77 9,470.87 8,038.07 7,587.24

0

Trade Receivables 2,321.33 1,952.50 2,090.29 2,092.00 3,646.22

Cash And Cash 3,831.26 3,877.94 4,001.53 6,843.27 3,768.73

Equivalents

Short Term Loans And 5.95 5.73 2.77 4.87 5.02

Advances

Other Current Assets 2,093.93 3,483.12 2,203.07 2,353.68 2,055.20

TOTAL CURRENT 35,203.4 30,942.01 31,815.24 36,506.91 29,568.9

ASSETS 4 6

TOTAL ASSETS 82,261.7 75,092.50 71,580.36 75,235.36 69,797.9

4 2

OTHER ADDITIONAL
INFORMATION

CONTINGENT
LIABILITIES,
COMMITMENTS

Contingent Liabilities 2,339.03 1,919.98 2,339.15 2,357.74 2,491.31

CIF VALUE OF
IMPORTS

Raw Materials 2,950.00 2,456.00 1,366.00 1,503.00 1,947.00

Stores, Spares And Loose 0.00 0.00 0.00 0.00 0.00

Tools

Trade/Other Goods 0.00 0.00 0.00 0.00 0.00

Capital Goods 213.00 300.00 298.00 382.00 426.00

EXPENDITURE IN
FOREIGN EXCHANGE

Expenditure In Foreign 0.00 0.00 0.00 0.00 0.00

Currency

REMITTANCES IN
FOREIGN
CURRENCIES FOR
DIVIDENDS

Dividend Remittance In -- -- -- -- --
Foreign Currency

EARNINGS IN
FOREIGN EXCHANGE

FOB Value Of Goods 10,777.0 11,472.00 5,934.00 3,506.00 3,828.00

0

Other Earnings -- -- -- -- --

BONUS DETAILS
Bonus Equity Share 1,113.14 1,113.14 1,113.14 1,113.14 1,113.14
Capital

NON-CURRENT
INVESTMENTS

Non-Current Investments 8,340.39 11,205.72 9,984.03 10,592.71 11,218.74

Quoted Market Value

Non-Current Investments 8,060.95 4,705.95 3,465.92 3,091.69 2,882.13

Unquoted Book Value

CURRENT
INVESTMENTS

Current Investments 3,253.03 4,483.77 4,302.03 3,122.85 4,624.25

Quoted Market Value

Current Investments 13,104.5 7,157.66 9,774.63 14,061.11 7,885.76

Unquoted Book Value 0

ITC COMPANY RATIO ANALYSIS

KEY FINANCIAL MAR 18 MAR 17 MAR 16 MAR 15 MAR 14

RATIOS OF ITC (in
Rs. Cr.)

PER SHARE RATIOS

Basic EPS (Rs.) 9.22 8.43 12.26 12.05 11.09

Diluted EPS (Rs.) 9.16 8.38 12.20 11.93 10.96

Cash EPS (Rs.) 10.13 9.25 13.52 13.19 12.18

Book Value 42.12 37.33 40.85 38.28 32.95

[ExclRevalReserve]/Sha
re (Rs.)

Book Value 42.12 37.33 40.92 38.35 33.02

[InclRevalReserve]/Shar
e (Rs.)

Dividend / Share (Rs.) 5.15 4.75 8.50 6.25 6.00

Revenue from 33.29 33.00 45.78 45.55 41.79

Operations/Share (Rs.)

PBDIT/Share (Rs.) 14.48 13.64 19.93 18.73 17.05

PBIT/Share (Rs.) 13.54 12.78 18.65 17.53 15.92

PBT/Share (Rs.) 13.81 12.76 18.59 17.46 15.92

Net Profit/Share (Rs.) 9.20 8.40 12.23 11.99 11.05

PROFITABILITY
RATIOS

PBDIT Margin (%) 43.49 41.31 43.54 41.13 40.80

PBIT Margin (%) 40.67 38.72 40.73 38.49 38.09

PBT Margin (%) 41.47 38.67 40.60 38.34 38.08

Net Profit Margin (%) 27.62 25.44 26.72 26.31 26.43

Return on Networth / 21.83 22.49 29.94 31.31 33.51
Equity (%)

Return on Capital 30.87 32.76 28.18 29.54 31.68

Employed (%)

Return on Assets (%) 17.99 18.81 19.88 21.73 22.39

Total Debt/Equity (X) 0.00 0.00 0.00 0.00 0.00

Asset Turnover Ratio 65.12 73.94 74.39 82.60 84.72

(%)

LIQUIDITY RATIOS

Current Ratio (X) 2.77 3.59 1.65 2.05 1.82

Quick Ratio (X) 1.95 2.44 1.07 1.38 1.18

Inventory Turnover 5.61 5.10 4.32 4.66 4.52

Ratio (X)

Dividend Payout Ratio 51.41 67.05 69.48 52.14 54.31

(NP) (%)

Dividend Payout Ratio 46.65 60.86 62.87 47.39 49.27

(CP) (%)

Earnings Retention 48.59 32.95 30.52 47.86 45.69

Ratio (%)

Cash Earnings Retention 53.35 39.14 37.13 52.61 50.73

Ratio (%)
VALUATION RATIOS

Enterprise Value (Cr.) 309,724.2 337,944.5 257,453.8 253,314.5 277,469.9

9 6 8 5 6

EV/Net Operating 7.62 8.43 6.99 6.94 8.35

Revenue (X)

EV/EBITDA (X) 17.53 20.40 16.05 16.87 20.46

MarketCap/Net 7.69 8.50 7.17 7.15 8.45

Operating Revenue (X)

Retention Ratios (%) 48.58 32.94 30.51 47.85 45.68

Price/BV (X) 6.08 7.51 8.03 8.50 10.71

Price/Net Operating 7.69 8.50 7.17 7.15 8.45

Revenue

Earnings Yield 0.04 0.03 0.04 0.04 0.03