Presented ByArdhendu Mishra

ITC LimitedITC LimitedOne of India’s Most Valuable One of India’s Most Valuable

CorporationsCorporations Enduring Value

ABOUT THE COMPANY…

Diversified group of companies with operations in various industry segments from cigarettes to apparels.

Annual turnover is of the order US$2.4 billion

One of the largest retailing network in the country

Ranked 8th in the ET 500 survey.

Products –Cigarettes, hotels, apparels, paper, etc.

4

Sustain multiple drivers of growth, matching internal capabilities

with emerging market opportunities

Pursue World class competitiveness in all businesses and across

the entire value chain

Best-in-class in terms of:

Internal Vitality

Market Standing

Profitability

Strategy of Organisation and Governance processes geared to

manage multiple businesses

Blend core competencies and leverage ITC umbrella strengths to

create new avenues of growth

Corporate Strategies

Vision: Sustain ITC position as one of India most valuable corporation through world class performance creating

growing value for the Indian economy & the company’s stakeholder

Mission: To enhance wealth generating capability of the enterprise in a globalizing environment, delivering spurious & sustainable stakeholder's

value

Strength: ITC mirage it traditional business to develop new brands for new segment it

Diversification

Awards• FICCI Outstanding Vision Corporate Triple Impact Award 2007• Sustainability Leadership Award 2007• Business Today Award for the Best Managed Company – Retail

and Consumer Products• NDTV Profit Business Leadership Award for being the Best Food

Company• S&P Environmental, Social and Corporate Governance• Asian CSR Award 2007 for Environmental Excellence• Corporate Social Responsibility Crown Award for Water

Practices from UNESCO and Water Digest

Product Mix of ITC Ltd

FMCG

Cigarettes

FoodsLifestyle Retailing

Education & Stationary

Safety Matches

Agarbaties

Hotels Paper boards & Packaging

Paper Boards

Packing

IT Agri-Business

Leaf Tobacco

AgriAgri CommoCommoditiesdities

e-Choupal

Prices of Different products of ITC Ltd

Cigarettes• Wills Navy Cut-Rs 24 per pack• Flake-Rs 19 per pack

Foods• Dal Burkhara (285 gm)-Rs 68.00 • Aashirvaad Salt (1kg)-Rs 10.00• Aashirvaad Atta(10 kg)-Rs210 .00 (5 kg)- Rs110.00 (1 kg)- Rs 23.50• Sunfest Butter Butterscotch (180 gm) Rs10• Sunfeast Marie Light (306 gm)Rs 21• Sunfeast Golden Bakery (75 gm) Rs15

Lifestyle Retailing John Player T-Shirt’s Rs545-Rs1499 Blazer’s Rs1995-Rs4495 Jeans Rs899-Rs1999Personal Care Vivel Ayurveda (92 gm)Rs14 Vivel Satin (92 gm)Rs17 Vivel Young Glow (75 gm)Rs14AgarabatiesMangaldeep(20 pic) Rs 10 Bingo funky Masala(45 gm) Rs10Mad Angles (50 gm)Rs 10

Promotional Programs

DISTRIBUTION NETWORK

Bangalore Bangalore Calcutta Calcutta Saharanpur Saharanpur Munger Munger

GODOWNS(19)

GODOWNS(19)

BRANCHES (19) BRANCHES (19)

WHOLESALE DISTRIBUTORS(60 PER BRANCH)

WHOLESALE DISTRIBUTORS(PER BRANCH 60)

RETAILERSRETAILERS SECONDARYWHOLESALERS

SECONDARYWHOLESALERS

Information

Goods

Grocery Stores Hotels , Restaurants & Cafes

Super Markets

Role of Each Member

Factories – Supply to 18 godowns Godowns & Branches

Manage by C&F agents getting monthly remuneration No rent paid by ITC one branch – 60 WDs , 5 AMs and 20 Area Executives

Wholesale Distributors(WDs) Margin – 2% of sales Appoints secondary Wholesalers

TERMS & CONDITIONS

WDs – Zero overnite credit basis

WD appointed supervisor monitor the performance of sales force

Primary expectation – no pilferage of cigarettes

PHYSICAL DISTRIBUTION

Demand Estimation – collaborative forecasting( Sales force with dealers)

Forecast based on last month sales Production plan made according to forecast

PROBLEMS FACED by ITC CHAIN

1. Shortages in supply system Hoarding due to anticipation of a rise in excise duties on

cigarettes Creates artificial shortage Can be solved by stricter monitoring policy during the time

close to the budget

• Pilferage of stock during transportation Due to improper action of WDs Can be solved by timely reporting

The BCG Matrix for ITC Ltd.

StarsHotelsPaperboards & Packaging.Agri business.

Question marks FMCG- Others

CowsFMCG-Cigarettes

Dogs ITC Infotech.

Dominance & Revenue Segment Dominance Contribution

Revenue PBIT

Cigarettes 70% share 77.0% 87.7%

Paperboards & Packaging

No.1 in Asia 7.3% 10.7%

Agri business 1 largest exporter in Asia

7.0% 3.7%

Hotels

FMCG(others)

ITC group Rank No.2

20% Share of Greeting Market , Aashirvad Atta is No.1 in it’s Segment

4.3% 5.4%

4.4% -7.5%