Diversification Strategy
Topics to be covered
• Company Brief
• Time Line
• Business Portfolio of ITC
• SWOT analysis
• BCG matrix
• Strategies
Company Brief
• ITC is one of India's foremost private sector
companies .
• Market capitalisation of nearly US $ 18 billion
• Turnover of over US $ 5.1 Billion
• One of the 8 Indian Companies to feature in
‘Forbes A-list’ for 2004 .
• Only Indian FMCG Company to feature in
Forbes 2000 List .
• Ranks No. 9 among Indian listed Private Sector
Companies by market cap. (@ 31/03/08)
• No. 1 in FMCG Sector.
Time Line Of ITC
1910 ITCL (Imperial ) established in Kolkatta
Hotels
Group Companies
• ITC Infotech
SWOT Analysis
Strength Weakness
•Brand •Unrelated diversification
•Management
Opportunity Threats
•Rural market •Increasing tax in
•E-choupal Cigarettes
•Health hazard
The BCG Matrix for ITC Ltd.
Stars ?
•Hotels •FMCG- Others
•Paperboards/
Packaging.
•Agri business.
Cows Dogs
•FMCG-Cigarettes
ITC’s corporate strategies
• 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. .
• Enhance the competitive power of the portfolio
through synergies derived by blending the diverse
skills and capabilities residing in ITC’s various
businesses.
Thank You
Special Thanks to Prof. Rakesh Gupta for
giving us such an enormous project
Anoop
Anagha
Madhur
Mansi
Meenakshi
Suparna
FMCG - Cigarettes
ITC’s Cigarettes Business
1753
1662
1190
561
488
141
Factories (4)
GODOWNS
GODOWNS BRANCHES
BRANCHES
(18)
(18) (18)
(18)
Information
WHOLESALE
WHOLESALE DISTRIBUTORS
DISTRIBUTORS Goods
(60
(60 PER
PER BRANCH)
BRANCH)
RETAILERS
RETAILERS SECONDARY
SECONDARY
WHOLESALERS
WHOLESALERS
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ITC FOOD
2) Vivel di wills
Soap
shampoo,
3) Superia
Soap
shampoo
WILLS LIFE STYLE
• In 2000,ITC Extended Wills to fashion retailing with
an investment of Rs. 2.5 billion and opened first Wills
Lifestyle store in Dec. 2000 in New Delhi to retail
Wills Sport brand.
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EDUCATION & STATIONERY
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FMCG-Other
Helping in growth of SMEs
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Paperboards, Paper
&
Packaging
Indian paperboard market
Low per capita usage at around 6 kgs p.a. (world average – over 50 kgs
p.a.)
Value Added Coated board - the fastest growing segment (20% p.a.) in
India driven by the growing sophistication of the consumer
Paperboard Demand Projections -
Asia
Asian region demand (excluding Japan) growing by 0.5
million tonnes per annum
Significant export opportunities for high quality Indian
manufacturers
• ITC paperboards exports - Rs. 2 billion appx.
ITC’s Paperboards Business
Market leader in growth segment - value added coated boards
World-class contemporary technology
• Ozone bleached Pulp Mill operations commenced – only one of its kind
in India meeting world-class environmental standards
Internationally competitive quality and cost
Social farm forestry in mill command area to improve access to cost
effective fibre & to attain self-sufficiency
• Biotech research based high yielding Clones – effectiveness tested in
nearly 80,000 hectares
Fully integrated operations with in-house pulping capacity at appx.
2.20 lac MT
• Expansion completed; source of sustainable competitive advantage
ITC’s Paperboards & Packaging
businesses
Capacity expansion projects underway
Rural Distribution
Rural retail
• 23 Choupal Saagars operational
• Rapid expansion planned in identified rural markets and
Tier 2, 3 & 4 towns
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Hotels & Tourism
Indian hotel industry
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Fact File - ITC Infotech
• Incorporated in October, 2000
Moscow
Boston, MA Milton Keynes
Chicago, IL
Hamburg
Beijing
Princeton, NJ Bucharest Seoul
Prague Islamabad
San Jose, CA
Nashville,TN Tokyo
Phoenix, AZ Calcutta
Cairo
Adis Ababa
Mexico Kuala Lumpur
Lagos Bangalore
Bogota Singapore
Jakarta
Sydney
South Africa
Travel/Hospitality
Custom Applications (Microsoft, Java)
Manufacturing
ERP Services
Mainframe
Infrastructure Services
Multimedia & Animation Services
Retail
Strategic Consulting
Testing Services
Nike
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