ITC SWOT
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This document provides an overview of ITC Limited, one of India's largest conglomerates. It discusses ITC's history and evolution since 1910, current business sectors, and SWOT analysis. Key points include: ITC operates in FMCG, hotels, paperboards, packaging, agribusiness and IT with revenues over $7 billion annually; it has strong brands and distribution channels but remains heavily reliant on tobacco; opportunities exist in rural markets and personal care while threats include regulations and competition.
ITC SWOT
- 1. Presented by: Avishek Bhattacharyya Divya Marwah Mukul Attri Nayana Unni Prashant Patro Siddharth Modak
- 2. HISTORY AND EVOLUTION •Greeting, Gifting & Stationery •Lifestyle Retailing Business •Information Technology Hotel Industry with ITCWelcome Group, Hotel Chola Imperial Tobacco Company 1910 •Food Industry •Personal Care Products Paperboard Business 1975 1979 2000 2003 - 2005
- 3. COMPANY PROFILE One of the India’s foremost Pvt. Sector companies with US $ 45 billion and a turnover of US $ 7 billion; Among Asia’s “Fab 50” companies and India’s “10 most valuable Brands”; Chairman: Mr. Yogesh Chander Deveshwar; Directly employs more than 31,000 people; Generate over 5 million sustainable livelihoods; Has more than 4,14,000 shareholders; 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's stakeholders”.
- 5. FMCG
- 6. CIGARETTES: Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal etc.
- 7. FOODS: Kitchen of India, Aashirvaad, Minto, Sunfeast, Candyman, Bingo etc in Staples, Snack Foods, Ready to Eat Foods and Confectionaries.
- 8. APPAREL: Wills Lifestyle, John Players, Miss Players brands in Fashion Wardrobe for men and women.
- 9. PERSONAL CARE: Fiama di Wills, Essenza di Wills, Engage, Vivel di Wills, Superia Brands in soaps, hair oil, hair gel, face wash, shampoo, conditioner, deo and perfumes etc.
- 10. STATIONARY: Classmate, Paper Kraft, Expressions, Colour Crew Brands in notebooks, diary, office stationary, greeting cards, colours etc.
- 11. SAFETY MATCHES N AGARBATTIS: iKno, Aim in match-sticks and Mangaldeep agarbattis etc.
- 12. Sector-wise Revenue Break Up
- 14. SWOT ANALYSIS
- 15. STRENGTHS Diversified group: ITC leveraged its traditional businesses to develop new brands for new segments. Market share: The brand now commands more than 52% market share amongst national branded players. Brand: ITC ranks among India's `10 Most Valuable Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. Debt-free: It is a debt-free company which makes it less vulnerable. Distribution Channel : Deep reach of it's distribution channel is one of the core strengths of ITC, as it enables the company to reach out to it's customers effectively.
- 16. STRENGTHS(cont..) Innovation: ITC has excellent research and development facilities.ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. For example ITC was the first in India to come up with instant 2-minute pasta. Management: ITC has a strong and experienced management, strong brand presence & excellent products advertising CSR & Sustainability: Over 6500 E-Choupal CSR activities and sustainability initiatives enhance ITC’s brand image reaching over 4 million farmers. ITC encourages the spirit of entrepreneurship amongst farmers.
- 17. WEAKNESS Unrelated diversification Heavily Dependent on tobacco revenue which contributes 80% of the total revenue. ITC is still recognized as a tobacco company Steep increase in cigarette taxes has adversely affected its revenue Hotel industry has not been able to create a huge market share
- 18. OPPORTUNITIES Rural Market: The company has the opportunity to get into the untapped rural market. E-choupal :This initiative by the group, with its enhanced rural connectivity, has created huge opportunity for the firm to acquire raw material at a cheaper rate. Mergers and acquisitions to strengthen the brand. Increasing purchasing power of people thereby increasing demand Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC’s soaps, shampoos and fragrances under its Wills brand More publicity of hotel chains to increase market share
- 19. THREATS Competitors :It faces stiff competition from both domestic as well as international players like P&G, HUL, Reckitt Benckiser. Marico, L'Oreal, Nirma Ltd, ColgatePalmolive, Dabur, Godfrey Phillips. Restrictions : Strict govt regulations and policies regarding cigarettes. FDI in retail thereby allowing international brands.
- 20. THANK YOU