itcosproject final 130728110513 phpapp01
TRANSCRIPT
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
1/27
SU BM ITTED BY
H IM AN SH U SH EKH AR
12EX021PIYU SH D W IVED I
12EX035
SREEKAN T SU KU M AR
OPERATION STRATEGY BY ITC
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
2/27
THE ITC VISION
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'sstakeholders
THE ITC MISSION
To enhance the wealth generating capability of the
enterprise in a globalising environment, delivering
superior and sustainable stakeholder value
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
3/27
INTR
Incorporated in !"!#, as Imperial Tobacco
Company of India $imited
Changed to Indian Tobacco $imited in !"%#and then to I&T&C $imited in !"%
(ith wide portfolio from )*C+ to hotels
renamed to ITC limited in ##!
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
4/27
Companies -iversification tobacco
Started as a cigarette, tobacco leave
manufacturing
.ackaging and printing business started in !"/to backward integrate with cigarette business
!"0/ Surya tobacco Co in Nepal set up,
renamed to Surya Nepal .vt $td in ##
becoming a subsidy of ITC
In #!#, ITC launched its hand rolled
cigar, Armenteros
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
5/27
Companies -iversification paper
!"%" entry in paper business, ITC
1hadrachalam
!""#, Tribeni tissues limited ac2uired,speciality paper for cigarette
Nov ##, Tribeni tissues division and
1hadrachalam paper board combines to form
.aperboards 3 Specialty .apers -ivision
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
6/27
Companies -iversification stationery
.aperkraft notebooks launched in ##
Classmate range launched in ##4
##% .ractical 1ooks, -rawing 1ooks,+eometry 1o5es, .ens and .encils under
the 'Classmate'brand
.aperkraft 6eco friendly premium businesspaper
Colour crew6 art stationery brand launched in
#!#
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
7/27
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
8/27
Companies -iversification food
:itchens of India6 ready to eat food launched in ##! *int6o, Candyman 3 ;shirvad launched in ##
##4 saw the raise of Sunfeast as a maipee in #!#
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
9/27
Companies -iversification others
$aunched in ##/ .ersonal Care portfolio has
grown under 'Essenza Di Wills', 'iama Di
Wills', 'Vi!el'and 'S"#eria'
!"%/ ITC6 (elcomgroup hotel Chola
ac2uired in Chennai, now known as )ortune
?otels
### launched the ITC Infotech
=nters matchbo5es industry in ## and ##4
launches incense sticks
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
10/27
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
11/27
S(T ;nalysis
Stren$th
1rand
*anagement
Wea%ness
@nrelated diversification
O##ort"nity
Rural market
=6choupal
Threats
Increasing ta5 in
Cigarettes?ealth haAard
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
12/27
The 1C+ *atri5
Stars
?otels
.aperboardsB
.ackaging&;gri business&
&
)*C+6 thers
Cos
)*C+6Cigarettes
Do$s
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
13/27
.olitical ;spects
In ##! +overnment of India has announced
ban on the advertising by cigarettes
Companies& Therefore many policies have
come up like this&
Increased in =5cise duties&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
14/27
=conomical ;spects
; growing portfolio of business encompassing )*C+,
.aperboards 3.ackaging, ;gri 3 )oods 1usiness, ?otels and
Information Technology&
Total Shareholder Returns, measured in terms of increase in
market capitaliAation and dividends, grew at a compound rate
of over per annum over the last / years&
The new )*C+ businesses support the competitiveness,
technology up gradation and market reach of over ## Small
and *edium =nterprises 7S*=s8&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
15/27
Social ;spects
ITC +roup provides direct employment to more than
9,###people&
ITCDs globally recogniAed =6choupal initiative is the worldDslargest rural digital infrastructure benefiting over million farmers&
E
ITCDs (atershed -evelopment initiative brings precious water to
over 9,### hectares of dry lands and moisture6stressed areas&
E
ITCDs Sustainable Community -evelopment initiatives include
womenDs empowerment, supplementary education&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
16/27
Technological ;spects
(holly own subsidiary named FITC
IN)T=C?G
IndiaDs fastest growing IT services and solution
providers
.roviding services in more than !#countries
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
17/27
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
18/27
*a
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
19/27
Competitors
?@$
1RIT;NNI;
.;R$=
N=ST$=
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
20/27
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
21/27
.RS of -iversification
E(onomies o) s(ale an* s(o#e
perational synergies can be realiAed&
Spreading the firm's unutiliAed organiAational resources to other areas can create
value&
$everaging skills across businesses can create value&
Internal (a#ital mar%et
Cash from some businesses can be used to make profitable investments&
=5ternal finance may be more costly due to transaction costs, monitoring costs, etc&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
22/27
Contd
Di!ersi)yin$ sharehol*ers+ #ort)olios
Individual shareholders may benefit from investing in a
diversified portfolio&
I*enti)yin$ "n*er!al"e* )irms
Shareholders may benefit from diversification if its
managers are able to identify firms that are under valued
by the stock market&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
23/27
CNS of -iversification
Combining two businesses in a single firm is likely to result insubstantial
influence costs&
Resource allocation can be influenced by lobbying&
Costly control systems may be needed that reward managers based on division
profits and discipline managers by tying their careers to business unit
ob
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
24/27
"t"re Positionin$ o) ITC
A lea*in$ MC #layer in In*ia
FAR
MERS
MAR
KETS
Cigarette Trade Marketing capability
BrandedFoods
Expanded FMCG distribution capability
e-choupal rural to-ay!ul"ll#ent capability
A basis !or strategic partnerships ith other
FMCG brand oners
$%& pro'iding SCM( ER% ) CRMcapability
Lifestyleretailing
Greetingcards/stat
ionery
Matches &Agarbattis
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
25/27
Conclusion
$everage upon its e5isting skills and competencies& 1enchmarked itDs
operations and 2uality control techni2ues&
Strong branding capabilities backed by good 2uality&
(on numerous awards like JEnter#rise -"siness Trans)ormation
Aar*., NASSCOM / CN-C IT 0ser Aar* et(1
ITCDs strong distribution capabilities and a strong brand name are auseful asset&
@sing its agri sourcing network to source raw materials for its biscuits
and atta businesses&
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
26/27
;head of Competition
-
7/27/2019 Itcosproject Final 130728110513 Phpapp01
27/27