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A brief study on how ITC limited expanded its business successfully across sectors with its diversification strategy.

Diversification is a form of corporate strategy for a company. It seeks to increase profitability through greater sales volume obtained from new products and new markets. Diversification can occur either at the business unit level or at the corporate level. At the business unit level, it is most likely to expand into a new segment of an industry that the business is already in. Diversification is part of the four main growth strategies defined by the Product/Market Ansoff matrix:

Diversification strategy stands apart from the other three strategies. The first three strategies are usually pursued with the same technical, financial, and merchandising resources used for the original product line, whereas diversification usually requires a company to acquire new skills, new techniques and new facilities. Diversification strategies are used to expand firms' operations by adding markets, products, services, or stages of production to the existing business. The purpose of diversification is to allow the company to enter lines of business that are different from current operations. When the new venture is strategically related to the existing lines of business, it is called concentric diversification. Conglomerate diversification occurs when there is no common thread of strategic fit or relationship between the new and old lines of business which are unrelated.

Concentric diversification This means that there is a technological similarity between the industries, which means that the firm is able to leverage its technical know-how to gain some advantage. For example, a company that manufactures industrial adhesives might decide to diversify into adhesives to be sold via retailers. The technology would be the same but the marketing effort would need to change. It also seems to increase its market share to launch a new product that helps the particular company to earn profit. The company could seek new products that have technological or marketing synergies with existing product lines appealing to a new group of customers.This also helps the company to

tap that part of the market which remains untapped, and which presents an opportunity to earn profits. Horizontal diversification The company adds new products or services that are often technologically or commercially unrelated to current products but that may appeal to current customers. In a competitive environment, this form of diversification is desirable if the present customers are loyal to the current products and if the new products have a good quality and are well promoted and priced. Moreover, the new products are marketed to the same economic environment as the existing products, which may lead to rigidity and instability. In other words, this strategy tends to increase the firm's dependence on certain market segments. For example, a company that was making notebooks earlier may also enter the pen market with its new product. Conglomerate diversification The company markets new products or services that have no technological or commercial synergies with current products but that may appeal to new groups of customers. The conglomerate diversification has very little relationship with the firm's current business. Therefore, the main reasons of adopting such a strategy are first to improve the profitability and the flexibility of the company, and second to get a better reception in capital markets as the company gets bigger. Even if this strategy is very risky, it could also, if successful, provide increased growth and profitability.

 The main advantages of diversification are that the company will have a Control of inputs, leading to continuity and improved quality. The company can take advantage of existing expertise, knowledge and resources in the company when expanding into new activities. Provide better risk control through no longer being reliant on a single market Provide movement away from declining activities.



Diversification is the riskiest of the four strategies presented in the Ansoff matrix and requires the most careful investigation. Going into an unknown market with an unfamiliar product offering means a lack of experience in the new skills and techniques required. Therefore, the company puts itself in a great uncertainty. Moreover, diversification might necessitate

significant expanding of human and financial resources, which may detracts focus, commitment, and sustained investments in the core industries. Therefore, a firm should choose this option only when the current product or current market orientation does not offer further opportunities for growth. In order to measure the chances of success, different tests can be done:

The attractiveness test: the industry that has been chosen has to be either attractive or capable of being made attractive. The cost-of-entry test: the cost of entry must not capitalize all future profits. The better-off test: the new unit must either gain competitive advantage from its link with the corporation or vice versa.



ITC Limited which previously stood for Imperial Tobacco Company one of India's foremost private sector companies. The name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hotel.

Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company s stakeholders

To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value

HISTORY AND EVOLUTION OF ITC LIMITED OVER THE YEARS ITC 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 from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands as 'ITC Limited. The Company s beginnings were with a leased office in Kolkata which was the centre of the Company's existence. 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.

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, the Seventies witnessed the beginnings of a corporate transformation that induced momentous changes in the life of the Company. 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. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcome group Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), in Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.

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. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand Paperkraft was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand Classmate 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 Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the Classmate brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the Paperkraft Brand. Paperkraft offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Text liners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. 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. Today ITC Infotech is one of India s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.

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. It began in August 2001 with the introduction of Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 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 iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.


ITC Limited is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational 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 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 are 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. Core competencies Distribution reach Superior brand building Effective supply chain management More than 6 million retail outlets

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An inspiring Vision. A challenging corporate strategy. World-class execution. Unmatched investments in technology, brands, people. These expressions best define ITC Limited. The result: market capitalization of US$30 billion and turnover of over US$6 billion. ITC today is the leading FMCG marketer in India, the second largest Hotel chain, the clear market leader in the Indian Paperboard and Packaging industry and the country's foremost Agri-business player. Additionally, its wholly owned subsidiary is one of India's fastest growing Information Technology companies in the mid-tier segment. As each of ITC's businesses is vastly different from the other in its type, the state of its evolution and the basic nature of its activity, the challenge of governance for ITC therefore lies in fashioning a model that addresses the uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole.

ITC's diversification is powered by a robust corporate strategy designed to unleash multiple drivers of growth. Its time tested core competencies, namely unmatched distribution reach, superior brand building, effective supply chain management and acknowledged skills in the hotel ndustry have provided ITC the springboard to create new epicenters of growth. Inspired by the overarching vision of making a contribution to the national goals of sustainable development and inclusive growth, ITC has innovatively crafted unique business models that synergise long-term shareholder value creation with enhancing societal capital. ITC s Diversified portfolio includes the following:1. FMCG Cigarettes & Cigars Foods Lifestyle Retailing Personal Care Education and Stationery Safety Matches Agarbattis 2. ITC group Hotels 3. Paperboards and Packaging Paperboards and Specialty Papers Packaging 4. Agri Business Agri Commodities & Rural Services e-Choupal Leaf Tobacco, Spices & Agri Inputs 5. Information Technology




It is ITC's strategic intent to secure long-term growth by synergizing and blending the diverse pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector. The Company s institutional strengths deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and

cuisine expertise businesses.

continue to be effectively leveraged to rapidly grow the new FMCG

Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years. The Company s unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry.


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. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. ITC has stood for quality products for over 100 years to the Indian consumer and several of its brands are today internationally benchmarked for quality. The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bengaluru. Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 100 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business.

The Foods business is today represented in 4 categories in the market. These are:

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Ready To Eat Foods Staples Confectionery Snack Foods The different food brands of ITC limited are:

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di Wills - an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country. With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings. The different lifestyle brands of ITC limited are:

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive

consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. 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. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal. Extensive insights gained by ITC through its numerous consumer engagements have 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 recognized safe ingredients, subjected to the highest standards of safety and performance. The different personal care brands are:


ITC made its entry to the education and stationery business with its Paperkraft brand in the premium segment in 2002; and later expanded into the popular segment with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together, Classmate and Paperkraft offer a range of products in the Education & Stationery space to the discerning consumer, providing unrivalled value in terms of product & price. Classmate and Paperkraft have become a natural extension of the consumer. Meticulous understanding of consumer needs helped creating a relevant and comprehensive portfolio satisfying the needs of different sets of consumers. ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing and conversion garnered from Packaging & Printing Business with its brand building and trade marketing & distribution strengths resident in its FMCG business to offer superior value products to consumers.

Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks are superior in quality and environment-friendly. Other offerings available in education and Stationery range are safe and certified non-toxic. The education and stationery brands of ITC limited are:

As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the small-scale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. ITC s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned subsidiary of ITC has consolidated the market standing of the Company's Matches business through synergy benefits derived through combined portfolio of offerings, improved servicing of proximal markets and freight optimization. Through its participation, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D based product development and strengths in trade marketing and distribution.


ITC Welcomgroup, India's premier chain of luxury hotels was launched on October 18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC-Welcom group brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80 destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry. A leader in the premium hospitality segment, ITC-Welcomgroup Hotels have had the privilege of hosting world leaders, Heads of State and discerning guests from across the world and within. As one of India's most dynamic hospitality chains, ITC-Welcomgroup has set standards for excellence in the hotel industry by pioneering the concept of branded accommodation. Th e chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate between the needs of various travelers and provide high levels of service. ITC-Welcomgroup has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travellers. With its exclusive strategic tie up with Starwood for its top of the line premium brand the 'Luxury Collection', the group is strengthening its international marketing stance. ITC-Welcomgroup was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive partnership.

ITC Hotels - Luxury Collection In 2007, ITC-Welcomgroup entered a new phase in its collaboration with Starwood Hotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood in bringing its premium brand, the 'Luxury Collection', to India. These are super deluxe and premium hotels located at strategic business and leisure locations. The seven hotels which are part of this collection are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor &ITC Royal Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. WelcomHotels offer five-star hospitality for the discerning business and leisure traveller. Currently there are three hotels under this brand namely, WelcomHotel Rama International Aurangabad,WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Four other ITC-Welcomgroup Sheraton Hotels Sheraton Rajputana Hotel Jaipur, Sheraton Chola Hotel Chennai, Sheraton Park Hotel and Towers, Chennai and Sheraton New Delhi offer warm, comforting services to the global traveler and a chance to connect. Fortune Hotels operates mid-market to upscale properties in the first-class, full-service business hotel segment all over India, in major metros, mini metros, state capitals and business towns, promising business and leisure travelers a wide choice of destinations and accommodation. Fortune Hotels currently has hotels operating in Ahmedabad, Chennai, Darjeeling, Gurgaon, Indore, Jaipur, Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi Mumbai, Ooty, Port Blair, Pune, Tirupati, Trivandrum, Vapi, Vijayawada, Vishakhapatnam, Hyderabad, Lavasa, Noida, Manipal, Bengaluru, Mussoorie, Goa, Thane & Gandhinagar, while several more hotels are expected to be commissioned soon in other key locations in India.


ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements through its four world-class manufacturing units, 6 sales offices and a network of more than 50 dealers in India, along with an international trade network of 15 distributors / agents. Having pioneered many specialty applications like cigarette tissues, opaque papers, food grade packaging boards and tele-card boards, ITC's Paperboards and Specialty Papers business enjoys market leadership in the value-added paperboards segment, and also has a significant share of the Indian fine papers market. It is the largest exporter of coated boards from India. Some of ITC's prominent paperboard brands are:

Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber XL Premium, Pearl XL PacSolid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte Persona Modified Solid Bleached Sulphate Boards: Carte Lumina, Safire XL Pac Poly coated boards: Indobev, Indobarr Recycled boards: Ecoviron, Fusion Fine Papers: ECF AlfaZap, Alfa Plus, Hi Brite, Paperkraft

ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer partnerships that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices. ITC's Agri Business Division is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports and domestic trading of:
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Feed Ingredients - Soyameal Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil Marine Products - Shrimps and Prawns Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products, Fresh Fruits Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery and other Seed Spices


Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of global IT services and solutions. The company has established technology Centers of Excellence (CoE) to deepen capabilities and incubate cutting-edge technical competencies. A robust outsourcing model, comprehensive suite of differentiated solutions & services and focus on excellence in execution has provided the company a leadership position in chosen domains. ITC Infotech s customer centric go-to-market approach is organized by industry verticals. The company services industries including, Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics. The company enjoys the rare advantage of having a practitioner's expertise in some of these industry verticals, which has in part been bequeathed by parent ITC Limited, which runs market leading businesses in these verticals. While an enterprise range of technology capabilities and world class quality processes form the foundation of ITC InfoTech s cutting-edge IT service strength, a sharp domain focus ensures that IT services delivery always places business needs ahead of technology. ITC Infotech provides IT solutions by addressing customer pain points through innovative solutions, optimizing their IT landscape and maximizing returns from IT investments. The company focuses on developing deep and differentiated capabilities to enhance expertise in specific industry domains, business solutions and technologies. This steadfast focus on delivering enduring value to customers has formed the bedrock of the ITC Infotech s growth strategy. The company has been successful in attaining differentiation in niches and continues to gain competitive advantage and strengthen market standing. ITC Infotech's leadership capabilities also accrue from business critical engagements with leading organizations across five continents, and a service delivery footprint spanning over 140 countries.


Rs Crs Gross Turnover Net Turnover Market Capitalisation PBDIT PBIT PBT PAT (After Exceptional Items) EPS Rs (Equalised for 95-96) Net Worth Capital Employed ROCE% Total Shareholders Returns % 95-96 5115 2536 5571 584 536 452 261 0.7 1121 1886 28.4 09-10 26,260 18,153 100,475 6,677 6,069 6,015 4,061 10.73 14,064 14,957 40.6 Cagr 95-96 to 09-10 12.4% 15.1% 22.9% 19.0% 18.9% 20.3% 21.7% 21.4% 19.8% 15.9% 24.3%

2009/10- SEGMENT WISE REVENUE (in crores)

Cigarettes 17,283 Others 3,642 Total FMCG 20,925 Hotels 911 Agri Business 3,862 Papers 3,234 Total 28,932 Less Other Revenue, Income/Expenditure Total 10% 2,672 100% 26,260 6,015 100% (89) -1% 110% 5,926 99% 12,465 100% 12% 684 11% 3,711 30% 15% 436 7% 1,580 13% 3% 217 4% 2,457 20% 80% 4,589 76% 4,717 38% 14% (350) -6% 1,719 14%

Gross Revenue


Capital Segment Gross Employed Revenue

4,938 82% 2,988



The various SBUs of ITC limited can be assumed to be taken in the context of the BCG matrix, then the agro business, hotels and paperboards and packaging comes under the star category where they are the units with a high market share in a fast-growing industry. The hope is that these stars become the next cash cows. The FMCG and cigarettes industry are the units with high market share. These units typically generate cash in excess of the amount of cash needed to maintain the business. They are to be
"milked" continuously with as little investment as possible, since such investment would be wasted in an industry with low growth.

The ITC InfoTech comes under the dogs category, or more charitably called pets, are units with low market share in a mature, slow-growing industry. These units typically "break even", generating barely enough cash to maintain the business's market share.

The FMCG etc are the SBUs that come under Question marks (also known as problem child) are growing rapidly and thus consume large amounts of cash, but because they have low market shares they do not generate much cash. The result is large net cash consumption. A question mark has the potential to gain market share and become a star, and eventually a cash cow when the market growth slows.

In FMCG sector expected to triple in size to over Rs 3, 55,000 crores by 2018, and investment opportunity up to Rs. 8,000 crores over the next 7 to 10 years. Paper, Paperboards & Packaging investment opportunity of upto Rs. 6,000 crores. investment opportunity for ITC of up to Rs. 9,000 crores in the next 7 to 10 years ITC being one of the most innovative companies present in the market right now with its strong presence in every sector is targeting in both cigarette and its non-cigarette business, is moving at a very fast pace . Marketing strategies implemented by ITC have enebled to move ahead of the competition. According to the market researches and contribution to social environment .ITC is all set to move up in the market space.

Minat Terkait