ITC is a Diversified Company

One of India’s Most Admired and Valuable Companies

Presented By -
Amit Dhal
Ashis Kumar Muduli
Girija Sankar Nayak
Sambit Sahoo
 Content
● History Of ITC
● About ITC
● Product Portfolio
● Major Strategy Followed By ITC
● Corporate Social Responsibility
● E-Choupal
● Segment Wise Revenue
● Major Award Over The Year
 History Of ITC

Type - Public
Founded -24 August 1910; 109 years
Headquarters - Virginia House, Kolkata,
West Bengal, India
Area served - Indian Subcontinent
Gulf Countries
Number of employees - 27,279 (2019)
PBT: No – 5 Key people - Sanjiv Puri
PAT ; N0 – 5 (Chairman & MD)
Market Capitalisation – No – 6
 CONTD...
24 Aug 1910 – ITC incorporated under the name of 'Imperial Tobacco Company
of India Limited'.

1974 – The Company's ownership progressively Indianised, and the name of

the Company was changed to ITC Limited (Indian tobacco company).

1975 – The Company launched its HOTEL BUSINESS which was named ‘ITC Welcomgroup
Hotel Chola’.

1979 – ITC entered the Paperboards Business by promoting. ITC Bhadrachalam

Paperboards Limited, which today has become the market leader in India.
 Contd

1990 - International Business Division for export of agri-commodities

2000 – Lifestyle retailing business with Wills sport range of international quality relaxed wear for
men and women

2000 – ITC InfoTech Ltd.

2002 – Safety matches.

2003- Agarbattis.
About ITC
● One of India’s most Admired and Valuable companies
- Market Capitalisation: ~Rs. 3.4 lakh crores
● AUS$10.8billion enterprise by Gross Sales Value
- 60%of net revenue from non-Cigarette segments
● Leading Fast Moving Consumer Goods (FMCG) marketer in India
- Established over 25 world-class mother brands within a short span of time
● 10 year Value Addition Rs.3.5lakh crores (US$59billion).
- Among the top taxpayers in the country
● ITC & its group companies employ over 34,000 people directly ; sustainable
development models and value chains have supported creation of 6 million
sustainable livelihoods
Business Portfolio FMCG

Cigarettes
Foods Personal Care
Lifestyle Retailing
Aagarbatties & Safety Matches
Education & Stationery
CONTD...

Hotels Paperboards, Paper & Packaging

Agri Business Information Technology

Creating World-class Brands for Indian Consumers
 Key Corporate Strategies
Focus on the chosen business portfolio

– FMCG; Hotels; Paperboards, Paper & Packaging; Agri Business; Information

Technology

Blend diverse core competencies residing in various Businesses to enhance the

competitive power of the portfolio

Position each business to attain leadership on the strength of world-class

standards in quality and costs

Craft appropriate ‘Strategy of Organisation’ and governance processes to:

–Enable focus on each business and Harness diversity of portfolio to create unique
sources of competitive advantage
Strategy of Organisation
 Rapid Scale up of FMCG Businesses
gross revenue
14000

12000

10000

8000

6000 gross revenue

4000

2000

Note: Reported Gross Revenue for FY18 & FY19 not comparable a/c GST transition; Comparable FMCG Business growth for
FY19 at 12% as compared to reported growth of 10.4%
 Market Stand Of ITC
.
SEGMENT DOMINANCE REVENUE
Cigarettes 70% share 77.0

Paperboard & packaging Packaging board - No - 1 in Asia 7.3

Agri - Business 1 of the largest exporters from 7.0

India

Hotels ITC group ranks no -2 4.3

FMCG(Others) 20% share of greeting cards 4.4

market, ‘Aashirvaad’ atta is no-1
is brand segment
Annual Consumer Spends of Over 18000 cr. (FY19)
>4500 cr.

>3800 cr.

~2500 cr.

>1400 cr.

>1100 cr.

>500 cr.
 Branded Packaged Foods Portfolio

Biscuits, Staples, Snacks, Noodles & Pasta, Confectionery, Ready to Eat, Juices,
Dairy, Chocolates and Coffee
Moment Marketing Campaigns during Cricket World Cup
Refreshed & High Bluster Campaigns across Key Brands

Bingo! –‘Ranveer ko Mazaa Chakhao’ contest

Dark Fantasy -
Favouritemeethacampaign

Sunfeast Farmlite Grains Your Granny Trusts

Sunfeast YiPPee! Feeling Campaign
Integrated Manufacturing and Logistics Facilities
● The manufacturing capability of ICML Trichy was augmented with the commissioning
of state-of-the-art lines for Finger Snacks, Atta and Biscuits.
● Capacity Utilisation at Kapurthala, Panchla, Uluberia, Mysuru and Guwahati being
progressively ramped up.
● Steady progress being made towards development of other such facilities which are
expected to be commissioned in the near to medium term

Trichy, Tamil Nadu Medak, Telangana

 Personal Care Products
‘Engage’ range of deodorants
Engage
continue to strengthen
its market standing.

− No. 1 in Women’s segment.

− Pocket Perfume range
augmented with the
launch of unique dual fragrance.
Essenza Di Wills Recent category launches

Superia
Flame
Education & Stationery Products Business

● Classmate is the Market

leader in Notebooks
segment

−Deepening consumer engagement

through Classmateshop.com and My
Classmate app to deliver customised
notebooks
My Classmate App
Incense sticks (Agarbattis) & Safety Matches
● Launched in September 2016
on both Android & iOS
platforms the Mangaldeep App
is currently available in nine
languages and caters to the
everyday devotional needs of
consumers.

5 lakh + downloads; 45,000 active users

Hotels ● One of the fastest
growing hospitality
chains in India

● Trailblazer in Green
Hoteliering

● Leader in Profitability

● All ITC Luxury Hotels

LEED Platinum certified
 Hotels &Tourism Industry
● Foreign Tourist Arrivals (FTA) growth has been steady with significant head
room for growth.

– FTA into India at 10.5 million but remains far behind China ( 60 million )

[Source: Ministry of Tourism, UNWTO Tourism Highlights 2018 edition]

● Industry: Current Room inventory 290,000 rooms, of which 69,000 rooms

are in the Luxury and Upper-Upscale segments
Hotels Business
● More than 108 properties over 70 locations

● 4 Brands: ‘ITC Hotels’ in the Luxury segment, ‘Welcomhotels’

in the Upper- Upscale segment, ‘Fortune’ in the Mid-market to
Up scale segment and ‘WelcomHeritage’ in the Leisure &
Heritage segment

■ 28 Five-Star Deluxe/ Five-Star Properties with over 5650 rooms

■ 46 Fortune Hotels with nearly 3500 rooms
■ 34 WelcomHeritage Properties with over 850 rooms

● Projects underway:
⁻ ITC Hotel at Ahmedabad ITC Narmada
⁻ ITC Hotel Colombo
ITC Royal Bengal, Kolkata - Launched on 1st June 2019
ITC Royal Bengal
Located on the cusp of
business district & the city,
an ode to the region’s
cultural heritage and lineage.

456 Keys
(254 Keys in Phase-1)

60,000 sq.ft of banqueting

space
5 Signature restaurants
 ITC Infotech
ITC INFOTECH Established in 2000 and headquartered in Bangalore.

Fully owned subsidiary of ITC ltd.

ITC is divided into - IT Services, IT Consulting Services

Technology Partners: Sap, Oracle, Sun Microsystems, PTC.

ITC InfoTech, a global IT services company, is today one of India’s fastest growing
IT and ITES service providers.

providing outsourced IT solutions and services to leading global customers.

 ITC’s Leaf Tobacco Business
● India is the second largest tobacco grower in
the World.
● India’s share is only at 9% of world tobacco
trade
– Leaf tobacco exports declined to a decade low
of 180 million kgs.
● ITC – India’s largest buyer, processor,
consumer & exporter of cigarette tobaccos
5th largest leaf tobacco exporter in the world
● Cultivation of Flue-cured and superior Burley
tobaccos in India
 Gross Revenue for the year ended FY 18-19 (Figure in cr)
2019 2018 GOLY
Gross Sales Value 75,309 67,082 12.3%

Gross Revenue 45,221 43,957 2.9%

PBDIT 17,306 15,541 11.4%

PBT 18,444 16,439 12.2%
PAT 12,464 10,953 13.8%

Exceptional items 413

PBT (incl. Exceptional items) 18,444 16,852 9.4%

PAT (incl. Exceptional items) 12,464 11,223 11.1%

Other Comprehensive 363 382

Income (net of tax)

Total Comprehensive Income 12,827 11,606 10.5%

 Gross Segment Revenue FY - 18-19 (Figure in cr)
. 2019 2018 GOLY(%)

Segment Revenue (Gross)

20713 22894 (9.5)
a) FMCG - Cigarettes 12505 11329 10.4
- Others

Total FMCG 33218 34223 (2.9)

b) Hotels 1665 1418 17.5

c) Agri Business 9397 8068 16.5
d) Paperboards, Paper & Packaging 5860 5250 11.6

Total 50140 48957 2.4

Less : Inter segment revenue 4919 5001 (1.6)

Gross Revenue from sale of products & 45221 43957 2.9

services
 Segment Results – Full Year (Figure in cr)
2018 2019 GOLY(%)

Segment Results

a) FMCG - Cigarettes 14551 13341 9.1

Others 316 164 92.4
Restructuring of Lifestyle 70
Retailing Business
Total FMCG 14937 13505 10.6

b) Hotels 178 140 27.1

c) Agri Business 777 849 (8.5)
d) Paperboards, Paper & Packaging 1239 1042 18.9

Total 17131 15536 10.3

Less : i) Finance Cost 34 87

ii) Other un-allocable (income) net (1347) (990)
of unallocable expenditure
Profit Before Exceptional items & Tax 18444 16439 12.2
ITC -Key Financials - Q1 19-20
(Figure in cr)
Q1 19/20 Q1 18/19 GOLY

Gross Revenue 11,361 10,722 6.0%

EBITDA 4,566 4,202 8.7%
PBT 4,812 4,300 11.9%
PAT 3,174 2,819 12.6%

Other Comprehensive (213) 78

Income
2,961 2,897 2.2%
Total Comprehensive
Income
 Segment Results -Q1 19/20 (Figure in cr)
2019-20 2018-19 GOLY%

Segment Results

a) FMCG - Cigarettes 3849 3558 8.2

Others 78 50 55.7

Total FMCG 3927 3609 8.8

b) Hotels 10 13 (21.4)
c) Agri Business 203 195 4.3
d) Paperboards, Paper & Packaging 330 296 11.5
Total 4470 4112 8.7

Less : i) Finance Cost 15 7

ii) Other un-allocable (income) net of (357) (195)
unallocable expenditure

Profit Before Tax 4812 4300 11.9

 Segment Capital Employed (Figure in cr)
2019-20 2018-19 Mvt

Segment Capital Employed

a) FMCG - Cigarettes 3412 3211 201

- Others 7456 6711 744

Total FMCG 10868 9923 945

b) Hotels 5494 5092 402

c) Agri Business 3607 2561 1046
d) Paperboards, Paper & Packaging 6172 6097 75

Total Segment Capital Employed 26141 23673 2468

Increase in Segment Capital Employed primarily a/c Capacity augmentation and business expansion.
 SWOT Analysis
Strength Weakness

•Cigarette market is 22,000 cr and ITC has •Dependence on tobacco revenues

lion’s share in it • Negative Connection of Tobacco
•Strong brand recognition and product
portfolio
•Distribution network
•Management

Threat
Opportunity •Competition both Domestic &
International
•Increasing Tax on cigarettes
•Consumption Of personal care products •Excise duty on unfiltered cigarettes less
•Rural Market than 60mm in length was increased 387%
•E-Choupal last year
• Filter cigarette segment of less than •Hike was 142% for those between 61mm
60mm size and 70mm long.
•Regulatory restrictions on cigarettes
•Ban on smoking
ITC’s Economic Contribution to the Nation

● 10 year Value addition ~Rs.3.5 lakh crore

- Among the top taxpayers in the country

- Over the last five years, the Value-Added by your Company ,i.e. The value
created by the economic activities of your Company and its employees,
aggregated over `220000 crores of which nearly `160000 crores accrued to
the Exchequer.

● Foreign exchange earnings in the last 10 years: US$7.2billion

- Of which agri exports constituted ~56%

 E-CHOUPAL
● Choupal is a Hindi word which
means village meeting place, and
‘E’ here stands for electronic so it is
a village meeting place on a
electronic
platform.
● It is a virtual market place where
vendors and customers come
together to do transactions.

● It’s a place where farmers can

transact directly with a processor
and realize better price for their
products.
ADVANTAGES
No hierarchy of brokers.

Internet is used as a low cost medium of communication providing latest

information.

E-choupals are set up by ITC with solar power backup and VSAT
connectivity. The equipment cost for the e-choupal is borne by ITC.

Allow farmers to compare global and local market price (mandi)

To farmers they give access to operational information developed by ITC

experts, pertaining to cropping, seeds, fertilizers and so on.
 Environmental Performance
Solid waste recycling for
12 years
Carbon Positive for 14 Water Positive for 17
years years

Around 41% of total energy

consumed is from renewable
sources
 Major Awards & Accolades over the years

Business world
FICCI CSR
award in Large
Enterprise
category
ITC conferred the prestigious
‘WorldBusiness and
Development Award 2012’ at
Rainforest Alliance awarded ITC
the Rio+20 UN Summit for its
Bhadrachalam Unit, the Forest
Social and Farm Forestry
Stewardship Council Forest Management
Initiatives. AIM
certification
Asian
CSR
ITC Hotels awarded the ‘Most Trusted Hotel brand’ Award
in the Public Choice Honours category at the Times
Travel Honours
THANK
YOU