ITC LTD.: Hardik S.Gandhi 30

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ITC Ltd.

HARDIK S.GANDHI 30

SECTION F-3
Core values

Nation Orientation;
Trusteeship;
Excellence;
Customer focus;
respect for people;
Innovation
Vision & Mission statements
Vision: Sustain ITCs position as one of
Indias most valuable corporations
through world class performance,
creating growing value for the Indian
economy and the Companys
stakeholders.
Mission: To enhance the wealth
generating capability of the enterprise
in a globalizing environment, delivering
superior and sustainable stakeholder
value.
Business Mix of ITC Ltd.
FMCG
Cigarettes
Foods
Lifestyle Retailing
Greeting, Gifting & Stationery
Safety Matches
Agarbattis

Paperboards & Packaging


Paperboards & Specialty Papers
Packaging
Business Mix (Contd)

Agri - Business
Agri-Exports
e-Choupal
Leaf Tobacco

Hotels

Group Companies
ITC Infotech; etc.
CAGR during FY 2005-2008
Category CAGR Growth parameters
Cigarettes 10.9 % Pricing power
Hotels 22.7% Inward traffic, occupancy
Paper 17.2 % Capacity utilization, value
added products
Agri 34.3 % E-choupal, choupal sagar,
business
FMCG- 60.2 % Fast track, decent share.
Others
Market share of ITC Ltd.
Outstanding market leader
Cigarettes, Hotels, Paperboards,
Packaging and Agri-Exports.
Gaining market share
Nascent businesses of Packaged
Foods & Confectionery, Branded
Apparel and Greeting Cards.
Segment Dominance Contribution %
Revenue PBIT
Cigarettes 70% share 77.0% 87.7%

Paper & Packaging board No. 7.3% 10.7%


Packg. 1 in Asia
Agri 1of the largest xporters 7.0% 3.7%
business from India
Hotels ITC Group ranks No.2 4.3% 5.4%

FMCG 20% share of greeting 4.4% -7.5%


(Others) cards market,
'Aashirvaad' atta is
No.1 in branded
segment
STRENGTH
ITC leveraged it traditional businesses to
develop new brands for new segments.
Diversification
WEAKNESS
Company is still dependant upon its
tobacco revenues
OPPORTUNITIES
ITC is moving into new and emerging sectors
including Information Technology, supporting
business solutions.
e-Choupal
(http://www.itcportal.com/agri_exports/e-
choupal_new.htm)
Chairman Yogi Deveshwar's strategic vision is to
turn his Indian conglomerate into the country's
premier FMCG business.
ITC's soaps, shampoos and fragrances under
their Wills brand.
THREATS
Competition from both domestic and
international.
Limitations
Assumes market growth rate. A firm may
grow the market.
A Dog may be helping other products.
High market share/Growth is not the only
success factor.
Linkage between market share and
profitability is questionable.
The BCG Matrix for ITC Ltd.
Stars ?
Hotels FMCG- Others
Paperboards/
Packaging.
Agri business.
Cows Dogs
FMCG-Cigarettes Maybe ITC Infotech.
Learning points and conclusions

Strategic forays into emerging high


growth markets.
E-Choupal is a transformational strategy.
Strong brand building capability will be
tested.
Learning points (Contd)
Corporate strategy of creating multiple
drivers of growth anchored on its core
competencies and distribution reach.
Embracing difficult and challenging
corporate strategy. (Ex: Paperboards).
EHS philosophy: Contribution to the triple
bottom line- Economic, Environment and
social capital.

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