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Swot Analysis................................................................................................................................................ 5
The FMCG sector had earned a very successive growth from US$ 31.6 billion in the year 2011 to
US$ 52.75 billion in the year 2017-18. The sector is further expected to be grow high having the
Compound Annual Growth Rate (CAGR) of 27.86 per cent to reach the target of US$ 103.7 billion
by the year 2020.FMCG enjoy the revenue growth of 14.8 per cent in the months of October-
December 2017. FMCG sector is estimated to having the net revenue growth of 11.8 per cent in
Quarter 4 March 2018. FMCG India sector is expected to report revenue increase of about 11-12
per cent in financial year 2019 from 8 per cent in financial year 2018. FMCG’s urban segment is
forecasting to have a decent revenue growth at 8 per cent in FY19, on the other hand the rural
segment of India is expected to contribute around 15-16 per cent of total income in FY19*
Rural segment of India is a large contributor to the overall revenue which is generated bt the fast
moving consumable goods (FMCG). Its share is around 45 per cent. In rural areas of India, the
demand for the high quality products and services has been increasing day by day. This results in
the better distribution of channels of manufacturing. The share of Urban segment in FMCG India
is 55 per cent in the overall revenues. FMCG Companies are also looking to invest their money
and time in the energy efficient plants to provide benefits to the society with the lower costs in the
long term. Dabur which is one of the key player in the FMCG company is planning to invest Rs
250-300 crore (US$ 38.79-46.55 million) in FY19. This investment is done for capacity expansion
and in addition to looking for acquisitions in the domestic market of India.
Type: Public
Industry: Conglomerate
Founded: 24 August 1910
Initial Name: Imperial Tobacco Company
Headquarters: Virginia House, Kolkata
Chairman: YC Deveshwar
Products: Consumer Goods. Hotels and Resorts, Papers, Packaging, Agri-Business, Information
technology, Paperboards and Specialty.
VISION: “Sustain ITC’s Position as one of India’s most valuable corporations through world
class performance, creating growing value for Indian economy and Company’s stakeholders”.
MISSION: “To enhance the wealth generating capability of the enterprise in a globalizing
environment, delivering superior and sustainable stakeholder value”.
Website: www.itcportal.com
ITC is one of India’s most diversified fast-moving consumer goods company which increasingly
reduced its dependence on its core product which is cigarette business.
ITC was incorporated on August 24, 1910 with the name of Imperial Tobacco Company of India
Limited. As the Company's ownership progressively Indianized, the name of the Company was
changed and then to I.T.C. Limited in 1974. The company deals with multi-business portfolio
having a wide range of businesses such as - Fast Moving Consumer Goods. This FMCG business
includes comprising Foods, Personal Care, Healthcare, Cigars and Cigarettes, Hotels, Branded
Apparel, Education and Stationery items, Incense Sticks and Safety Matches, Paperboards &
Specialty Papers, Packaging, Agri-Business and Information Technology.
In India, ITC's Branded Packaged Foods business is one of the fastest growing foods businesses.
These packaged foods of ITC involve popular brands such as - Aashirvaad, Bingo, Sunfeast, B
Natural, ITC Master Chef, Vivel, Farmland, Fabelle, Sunbean, Yippee! Kitchens of India, , mint-
o, Candyman and GumOn. The Foods business is today represented in multiple categories in the
market - Staples, Spices, Biscuits, Confectionery & Gums, Snacks, Noodles & Pasta, Beverages,
Dairy, Ready to Eat Meals, Chocolate, Coffee and Frozen Foods.
ITC's extraordinary commitment to the health and safety of its consumers and proving them the
highest levels of quality standard products with safety and hygiene in manufacturing processes as
well as in the supply chain of the company. All ITC-owned units where manufacturing of products
take place are Hazard Analysis and Critical Control Point (HACCP) certified. The quality
performance of all manufacturing units is monitored continuously online. Going beyond process
control, ITC ensures that quality standards are scrupulously adhered to while choosing ingredients
that go into the preparation of its food products.
ITC's Foods brands delight millions of households with a wide range of differentiated, value-added
products developed by leveraging ITC's in-house R&D capabilities, relevant consumer insights, a
deep understanding of the Indian palate gained from its Hotels business, its agri-sourcing &
packaging strengths, exciting, innovative communication and an unmatched distribution network.
The business continues to invest in every aspect of manufacturing, distribution and marketing to
ensure that it can leverage emerging opportunities and fulfill its aspiration of being the most trusted
provider of Branded Packaged Foods in the country. ITC's Foods business also exports its products
to the key geographies of North America, Africa, Middle East and Australia.
ITC Brands
Future plans: The company’s future plan is to invest USD 3.2 billion in the upcoming five to
seven years across its different businesses. This investment plans targets at positioning each of
the businesses in the ITC company.
Swot Analysis
Swot analysis is the analysis which tells about the company’s strength and weaknesses and also
helps in figure out the opportunities and threats of the company. The main motive of this analysis
is to improve the operations and competitiveness of the company, identifying risks, to discover
new opportunities in the market . Following is the SWOT Analysis of the ITC company:
STRENGTH:
Brand Image: ITC is the most valuable and well-known brand in the market. This is the
biggest strength of the company. The company also won numerous national as well as
international awards which creates impressive goodwill of the company in the market.
Competence: ITC have a experience of more than 100 years which provide great quality
of its customers, expansion and diversification of products during its time period
Loyalty of customers: ITC provide number of products to its customers with a very good
quality and pricing, the company is able to fulfill all the daily requirement products
which are demand by the customers. This results in the brand loyalty of customers
towards the company.
High social Initiatives: ITC has very high social initiatives. The company plays on of
triple-bottom-approach. It means that ITC not only concentrates on the profits but they
also concern about the environment as well as economy of the of try. The company take
many initiatives such as E-choupal, Chopal Pradarshan Khet(CPK) and many more.
Weaknesses :
High proportion of revenues comes from Tobacco products: the major weakness of the
company is that it still depends mostly on the tobacco products. As these products are not
beneficial for the person as well as environment but still the company produces.
Multibrands- ITC limited has number of brands which expendes its business in different
industries this will results in brand dilution.
Heavy taxation policy: Due to the ioncrease in the taxes which are imposed by the
government on tobacco prducts, the prices as well as revenues are effected.
Opportunities:
Growth rate of the economy: As the FMCG industry is growing which is a good news for
the ITC. It will help in increasing of revenues of the company.
Tap rural market: Majority of the people in India are live in rural. There is a huge
opportunity for the company to create demand for this rural segment of the country.
Threats:
Competition: There are number of companies which give huge competition to ITC. Not
only international but national as well local brands also give huge competition.
Increasing awareness on health: The customers are more health conscious as compared to
past years. ITC produce Tobacco products which are dangerous to health. this will result
in the huge drop of demand of tobacco products.