Change Management

ITC LTD
…ENDURING VALUE
Introduction
 India's foremost multi-business enterprises.
 Headquarter building at 'Virginia House', Kolkata.

 Established in August 24th, 1910 as the Imperial Tobacco Company of India Ltd
 The first cigarette factory was set up in 1913 at Bangalore
 Name changed to India Tobacco Company Limited in 1970 as its ownership was
mostly becoming Indianised.
 In 1925 ITC’s packaging and printing business was set up.
 Ownership shifted from British to Indian management team in 1974;
rechristened as India Tobacco Company Limited.
 ITC ranked as 5th in Market Capitalization in India amongst all private sector
companies.
 ITC has a market capitalisation of US $50 billion and Gross Sales Value of US
$10 billion
 Rated as Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes
magazine and as 'India's Most Admired Company' by Fortune India magazine .
 ITC has a diversified presence in FMCG , Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business and Information Technology.
 Cigarette business contributes >80% of the profits of the company, 80% of the
capital is invested in the non-tobacco businesses.
 59% of Net Revenue from non‐Cigarette segments
ITC Transformation Timeline
 •1975 Hospitality sector
 •1979- Paperboards business
 •1985: setup of Surya Tobacco corp in Nepal
 •1990-Agri-business
 •2000-Lifestyle Retailing business and ITC Infotech India Limited
 •2002- Safety Matches initiative; brands like iKno, Mangaldeep
 •2002- ITC entered confectionery and staples segments
 •2010-Indian instant noodles market
 •2005-Personal Care Business
ITC: A Better Tomorrow for All
 ITC Social Investments Programme
 ITC E-CHOUPAL ECO-SYSTEM
 WOMEN'S EMPOWERMENT
 SKILLING & VOCATIONAL TRAINING

 Environment, Health & Safety

 Promoting Thought Leadership in Sustainability

 CII-ITC Centre of Excellence for Sustainable Development
Strategic Changes: Forces, Decisions and Actions
 Backward integration into the Packaging and Printing business in 1925: a competitive strategy
to reduce cost of production.

 Aggressive competition with Golden Tobacco amidst strong nationalistic current sweeping
India in the early seventies: name change to I.T.C, a symbolic move to highlight its move
beyond tobacco.
 Market entry into Hospitality Business, Paperboards and Marine Foods: Huge foreign exchange
earners and minimal competition.
 De-risking the business model by diversifying product mix; an important propellant behind
foraying into varied other FMCG business lines.
 Growing health concern against tobacco usage.
 Stricter government regulations and anti tobacco campaigns.
 The advertising ban in 2001, on tobacco and tobacco related products, causing loss of goodwill.
 From a company manufacturing a negatively perceived product(Tobacco), to a
company with utmost corporate social responsibility and full focus on
sustainability. In 2008, Business standard published that ITC had been a water
positive company for six years in a row, and carbon positive for 3 years in a row.
 Another way by which ITC turned around its perceived value in the market,
was the introduction of e-choupal by ITC; a farmer friendly initiative which
help then obtain information on mandi prices and good farming practices. In
essence, this proliferation greatly served to bring back ITC’s value to it’s huge
customer base.
 Financial Position
 The Company is trying to move its focus from cigarettes.
 The company wants to achieve FMCG turnover of Rs 1 lakh crore by 2030 .
 In 2016-2017 ITC’s FMCG arm had clocked a turnover of Rs 10000 cr and in nine
months ended December 31,2017,it crossed Rs 8000cr.
Financial Position
 ITC has Become the Paramount choice for the Investors.
 The Present Assets of the Company is 37800cr
 ITC shares have yielded an impressive 26% CAGR in the past 10 years
 In the past 10 years, the company has made a net profit of Rs 44,925 cr .Of this,
Rs 25,350 cr has been given out as dividend to its shareholders. ITC shares have
shot up more than 10 times in past 10 years.
Particulars 2014 2015 2016 2017 2018

Sales(Rs) 49247cr 52759cr 54673cr 58287cr 47362cr

Profit 18.26 18.50 17.36 17.96 24.25

Margin(%)

EPS 7.33 8.0 5.33 9.0 9.33

FMCG Products
 CIGARETTES & CIGARS :- Classic, Gold Flakes, Navy Cut, Indiakings, Wills,
Silk Cut & Insignia.
 FOODS :- Aashirvaad, Sunfeast, Bingo, ITC Master Chef, Yippee, Mint-O,
Candyman & B-Natural.
 PERSONAL CARE :- Savlon, Vivel, Fiama, Engage, Superia, Charmis & Shower
to Shower.
 EDUCATION & STATIONERY :- Classmate & Paper Kraft.
 LIFESTYLE RETAILING :- Wills Lifestyle & John Players.
 SAFETY MATCHES :- Aim, Homelites & Ship.
 AGARBATTIS:- Mangaldeep.
Hotel Industry
 ITC came into the hotel business in the year 1975.
 ITC first purchased my fortune hotel of Chennai & named it as ITC fortune
hotel.
 presently ITC have 106 0wned & managed hotel in 71 locations across India in
the name of ITC hotels, welcome hotel, fortune hotel & welcome heritage
brand.
 ITC presently have 27 five star deluxe hotel over 54oo rooms, 46 fortune hotels
over 3600 rooms & 33 welcome heritage hotels over 800 rooms.
 Presently ITC also expanded hotel business in Srilanka & Dubai.
Paper Industry & Packaging
 ITC has a significant contribution in paper industry. ITC makes packaging
boards, speciality boards, graphic boards & speciality papers.
 all these 4 units are iso 9001, iso 14001 certified & meet strict environment,
health & safety norms.
 ITC has 3 product line in packaging - carton board packaging, flexible
packaging & tobacco packaging.
 ITC is also the first choice supplier to high value added packaging . its client
include several well known companies like nokia, reckitt benckiser, ub group,
tata ten, colgate palmolive,agio cigars, british american tobacco, vast industries
etc.
Other Industries
 Information Technology :- ITC Infotech
 Agri Business Industry :- Agri Commodities ( Feed Ingredients, Food
Ingredients, Marine products & Processed Fruits) & Agri Business Limited (
Leaf tobacco & spices).

 Group companies
 Major subsidiaries:- Surya Nepal limited, Land bore india limited & Russel credit
limited
 Operational joint ventures :- Maharaja Heritage Resort, ITC Essentra limited
 Listed associated companies :- Gujarat Hotels Limited & International Travel
House Limited
 Business Review Of ITC
 ITC presently becomes one of India's most valuable & admired corporations
through world class performance , creating growing value for the Indian
economy & the company’s stakeholders.
 Among all listed private companies in India ITC hold rank 5 in both pbt, pat &
in market capitalization.
 ITC becomes the first zero debt company in India with regular making profits.
 In several business sectors ITC became a threat to its competitor brands.
 Aashirvaad is no 1 in branded atta, bingo! Is no 2 in the snacks department,
sunfeast is no 1 in the premium cream biscuit segment, classmate is no 1 in
notebooks, yippee! Is no 2 in noodles, engage is no 2 in deodorants &
mangaldeep is no 2 in agarbattis.
 Awards & Accolades
 ITC won the prestigious porter prize 2017 for “excellence in corporate governance &
integration” & for its exemplary contribution in “ creating shared value”.
 ITC ranked 3rd amongst leading corporates in india in terms of corporate regulation.
 ITC ranked as the most admired company in the year 2014.
 ITC recognized amongst the top 10 employers in india by randstad employer brand
research survey in 2018. ITC also recognised top 5 most preferred employer in
“campus track”.
 Thank You
• Abhishek Bhattacharjee(Roll-4)
• Archisman Ghosh(Roll-20)
• Mayukh De(Roll-44)
• Nakshtra Das(Roll-46)
• Pranab Karmakar(Roll-55)