ITC Limited

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ITC Limited
Type Public
Traded as BSE500875
NSEITC
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Conglomerate
Predecessors W.D. & H.O. Wills
Founded August 24, 1910[1][2]
(as Imperial Tobacco Company of India)
Headquarters Kolkata, West Bengal, India[3]
Key people Y C Deveshwar, (Chairman)[4]
Products Tobacco, hotels, paperboards & specialty papers, packaging, agri-business, packaged foods & confectionery, IT, branded apparels, personal care, stationery, safety matches and other FMCG products
Revenue Increase INR 45,102 Crores (US$ 8.31 billion) (2012-13)[5]
Operating income Increase INR 11,106 Crores (US$ 2.05 billion) (2012-13)[5]
Net income Increase INR 07,608 Crores (US$ 1.40 billion) (2012-13)[5]
Total assets Increase INR 35,353 Crores (US$ 6.51 billion) (Mar 2013)[5]
Total equity Increase INR 23,158 Crores (US$ 4.27 billion) (Mar 2013)[5]
Employees 25,959 (Mar 2013)[6]
Divisions ITC Infotech, Surya Nepal Pvt. Ltd.
Website www.itcportal.com

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.[3] Its diversified business includes five segments: Fast Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.[7]

Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the Indian Tobacco Company Limited in 1970 and further to I.T.C. Limited in 1974. The periods in the name were removed in September 2001 for the company to be renamed as ITC Ltd.[2] The company completed 100 years in 2010[8][9][10][11] and as of 2012-13, had an annual turnover of US$ 8.31 billion[12] and a market capitalisation of US$ 45 billion.[6] It employs over 25,000 people[6] at more than 60 locations across India and is part of Forbes 2000 list.

History[edit]

ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India Limited,[2] and the company went public on 27 October 1954.[1] The earlier decades of the company's activities centered mainly around tobacco products. In the 1970s, it diversified into non-tobacco businesses.[1]

In 1975, the company acquired a hotel in Chennai, which was renamed the 'ITC-Welcomgroup Hotel Chola' (now renamed to MyFortune, Chennai).[2]

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British joint venture, with the shares divided between ITC, British American Tobacco and various independent domestic shareholders in Nepal. In 2002, Surya Tobacco became a subsidiary of ITC and its name was changed to Surya Nepal Private Limited.[13]

In 2000, ITC launched the Expressions range of greeting cards,[14][15] the Wills Sport range of casual wear,[16] and a wholly owned information technology subsidiary, ITC Infotech India Limited.[17]

In 2001, ITC introduced the Kitchens of India brand of ready-to-eat gourmet Indian recipes.[18]

In 2002, ITC entered the confectionery and staples segments[19] [20][21] and acquired the Bhadrachalam Paperboards Division[22] and the safety matches company WIMCO Limited.[23]

ITC entered the Agarbattis (incense sticks) business in 2003, selling its products under the Mangaldeep brand.

ITC diversified into body care products in 2005.[24] [25]

In 2010, ITC launched its handrolled cigar - Armenteros - in the Indian market.[26]

The company began online sales in 2014.[27]

Products and Brands[edit]

Gold Flake cigarettes

Cigarettes[edit]

ITC Ltd sells 80 percent of the cigarettes in the India, where 275 million people use tobacco products and the total cigarette market is worth close to $6 billion (around Rs.35,000 crore) [28][29]

ITC's major cigarette brands include W.D. & H.O. Wills, Gold Flake Kings, Gold Flake Premium,Gold Flake Super Star, Navy Cut, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.[30][31]

Other businesses[edit]

  • Foods: ITC's major food brands include Kitchens of India; Aashirvaad, Mint-o, Sunfeast, Candyman, Bingo! and Yippee!.[32] ITC is India's largest seller of branded foods with sales of over Rs. 4,600 crore in 2012-13.[33] It is present across 4 categories in the Foods business namely Staples, Snack Foods, Ready-To-Eat Foods and Confectionery.[32]
  • Lifestyle apparel: ITC sells its products under the Wills Lifestyle and John Players brands. Wills Lifestyle was accorded the ‘Superbrand’ status and John Players was included in the top 10 ‘Most Trusted Apparel Brands 2012’ by The Economic Times.[6]
  • Personal care products include perfumes, haircare and skincare categories. Major brands are Fiama Di Wills, Vivel, Essenza Di Wills, Superia and Engage.[34][35]
  • Stationery: Brands include Classmate, PaperKraft and Colour Crew.[36] Launched in 2003, Classmate went on to become India's largest notebook brand in 2007.[37][38]
  • Safety Matches and Agarbattis: Ship,[39] i Kno and Aim brands of safety matches[40] and the Mangaldeep brand of agarbattis (Incense Sticks).[41]
  • Hotels: ITC's Hotels division (under brands including WelcomHotel) is India's second largest hotel chain with over 90 hotels throughout India.[42] ITC is also the exclusive franchisee in India of two brands owned by Sheraton International Inc. Brands in the hospitality sector owned and operated by its subsidiaries include Fortune Park Hotels and WelcomHeritage Hotels.[42]
  • Paperboard: Products such as specialty paper, graphic and other paper are sold under the ITC brand by the ITC Paperboards and Specialty Papers Division.[43]
  • Packaging and Printing: ITC's Packaging and Printing division operates manufacturing facilities at Haridwar and Chennai and services domestic and export markets.[44]

Shareholding and listings[edit]

ITC's equity shares are listed on Bombay Stock Exchange, National Stock Exchange of India and Calcutta Stock Exchange.[46][47] The company's Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.[48]

Shareholders (as on 31-March-2013) Shareholding[6]
Foreign companies (mainly British American Tobacco Company) 30.54%
Foreign Institutional Investors (FII) 19.68%
Banks, Financial Institutions, Insurance Companies and Mutual Funds 33.44%
Bodies Corporate 04.91%
Public and Others 11.13%
GDRs 00.30%
Total 100.00%

Employees[edit]

As per the Annual report of the company, it had 25,960 employees as on 31 March 2013,[6] out of which 3,043 were women.[12] It spent Rs. 2,145 crores on Employee benefits during the FY 2012-13.[5] During the same year, its attrition rate was 12%.[12]
Its Chairman Y C Deveshwar has won renowned awards and recognitions including Padma Bhushan from Govt. of India[6][49][50] and 7th best performing CEO in the world by Harvard Business Review.[51]
Meera Shankar, Indian ambassador to USA between 2009 and 2011, joined the board of ITC Limited as the first woman director in its history.[52] She is an additional non-executive director of the company.[53]

Outreach[edit]

e-Choupal[edit]

Main article: E-Choupal

ITC's e-Choupal initiative is designed to make the power of the Internet available to Indian farmers.[54] The company places computers with Internet access in rural farming villages, serving both as a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub. As of July 2010, services through 6,500 e-Choupal across 10 states reach more than 4 million farmers in about 40,000 villages. The potential of e-Choupal is also being tested through pilot projects in healthcare, educational services, water management and cattle health management. In 2008, this initiative was recognised in the list of "Innovations to make markets more inclusive for the poor" in World Development Report Sep-2008 by the World Bank.[55]

ITC Sangeet Research Academy[edit]

ITC Sangeet Research Academyis a Hindustani classical music academy established in 1977 and located in Kolkata.[56] Some noted musicians are associated with this academy.[57]

Awards and recognitions[edit]

  • In 1994 and 1995, the ILTD Division in Chirala and Anaparti won the "Best of all" Rajiv Gandhi National Quality Award[58]
  • ITC features on the Forbes Global 2000 rankings for 2012 at position 841.[7] In the same rankings, the company's market value placed it as the 184th largest company in the world.[7] Forbes has also included the company in Asia's Fab 50 Companies list.[59]
  • In 2013, ITC was ranked the third most admired company in India by Fortune.[60]
  • In 2011, all of ITC’s super premium luxury hotels were accorded LEED Platinum certification, making ITC Hotels the ‘Greenest Luxury Hotel Chain in the World’.[61][62]
  • In 2010, ITC was ranked 6th amongst global consumer goods companies in sustainable value creation during 2005-09, by Boston Consulting Group.[63]
  • It received the National Award for Excellence in Corporate Governance from the Institute of Company Secretaries of India in 2007.[1][64]
  • In 2006, ITC's e-Choupal program won the Stockholm Challenge Award 2006 in the Economic Development category. This program enables over 3.5 million farmers to access crop-specific and customised information in their native village habitat and language.[65][66]

See also[edit]

References[edit]

  1. ^ a b c d "Company History - ITC Ltd.". Economic Times. Retrieved 15 September 2013. 
  2. ^ a b c d "History and Evolution". ITC Limited. Retrieved 14 September 2013. 
  3. ^ a b "The ITC Network: Registered Office". ITC Ltd. Retrieved 14 June 2014. 
  4. ^ "ITC Leadership - Board of Directors". ITC Ltd. Retrieved 14 June 2014. 
  5. ^ a b c d e f "Consolidated Financial Report 2012-13". ITC Limited. 17 May 2013. Retrieved 15 September 2013. 
  6. ^ a b c d e f g "Annual Report 2012-13". ITC Limited. 17 May 2013. Retrieved 14 September 2013. 
  7. ^ a b c "ITC on Forbes Asia's Fab 50 companies". Forbes. 31 August 2013. Retrieved 14 September 2013. 
  8. ^ "ITC: Leading Multi-business conglomerate turns 100". Economic Times. 24 August 2010. Retrieved 15 September 2013. 
  9. ^ "ITC's 100 glorious years". rediff.com. 24 August 2010. Retrieved 15 September 2013. 
  10. ^ "Imperial touch". Business Today. 10 July 2011. Retrieved 15 September 2013. 
  11. ^ "100 Inspiring Years". ITC Limited. Retrieved 15 September 2013. 
  12. ^ a b c "Sustainability Report 2013". ITC Limited. Retrieved 15 September 2013. 
  13. ^ "ITC makes Surya Nepal a subsidary, stake reaches 59%". The Economic Times. 23 August 2002. Retrieved 14 June 2014. 
  14. ^ "ITC says it with Expression". The Hindu. 18 October 2000. Retrieved 14 June 2014. 
  15. ^ "ITC plans launching one or more mass products to grow personal care and food businesses". The Economic Times. 9 May 2011. Retrieved 14 June 2014. 
  16. ^ "ITC to inject Rs.150 cr into 100 Wills Sport stores". ITC Media Centre. 23 June 2001. Retrieved 14 June 2014. 
  17. ^ "ITC’s impetus on IT helped form ITC Infotech". 12 November 2003. Retrieved 14 June 2014. 
  18. ^ "ITC ready-to-eat foods on shelves". The Hindu. 29 August 2001. Retrieved 22 September 2013. 
  19. ^ "ITC launches atta brand". Economic Times. 7 Jun 2002. Retrieved 22 September 2013. 
  20. ^ "How ITC turned biscuits business around". rediff.com. 28 June 2006. Retrieved 14 June 2014. 
  21. ^ "'Bingo!' ITC has finally got it". rediff.com. 1 May 2007. Retrieved 14 June 2014. 
  22. ^ "ITC Bhadrachalam to merge with ITC". rediff.com. 6 September 2001. Retrieved 14 June 2014. 
  23. ^ "ITC buys Wimco for Rs 200 cr". Business Standard. 2 July 2005. Retrieved 14 June 2014. 
  24. ^ "ITC launches Essenza Di Wills line of prestige fragrances". moneycontrol.com. 24 November 2005. Retrieved 14 June 2014. 
  25. ^ "Need to Know - After Vivel soaps, ITC launches shampoo". Livemint. 26 June 2008. Retrieved 14 June 2014. 
  26. ^ "ITC bites into cigar biz, ties up with La Aurora". The Economic Times. 31 March 2010. Retrieved 14 June 2014. 
  27. ^ "ITC forays into e-commerce business with Wills Lifestyle, plans exclusive outlets for fashion sub-brands". The Economic Times. 29 April 2014. Retrieved 14 June 2014. 
  28. ^ "ITC on a health kick post global anti-smoking regulations". First Post. 6 September 2012. Retrieved 21 September 2013. 
  29. ^ "ITC’s ‘smaller smokes’ move pays off, profit jumps 18%". Livemint. 23 May 2014. Retrieved 15 June 2014. 
  30. ^ "Cigarettes". ITC Limited. Retrieved 15 September 2013. 
  31. ^ "ITC hikes prices of select cigarette brands". Indian Express. 2 September 2013. Retrieved 15 September 2013. 
  32. ^ a b "Foods". ITC Limited. Retrieved 15 September 2013. 
  33. ^ "ITC pips Hindustan Unilever to become India's leading branded food and beverages company". Economic Times. 22 May 2013. Retrieved 15 September 2013. 
  34. ^ "ITC's Vivel brand expands its skin care portfolio". Economic Times. 11 Feb 2013. Retrieved 15 September 2013. 
  35. ^ "ITC Personal Care Products". ITC Limited. Retrieved 15 September 2013. 
  36. ^ "Education and Stationery". ITC Limited. Retrieved 15 September 2013. 
  37. ^ "How ITC is working its way down in FMCG markets?". Economic Times. 30 October 2011. Retrieved 15 September 2013. 
  38. ^ "ITC increases focus on Classmate". Business Standard. 7 July 2013. Retrieved 15 September 2013. 
  39. ^ "Swedish Match divests holding in Wimco to ITC subsidiary — To make open offer for 20 pc equity". The Hindu. 2 July 2005. Retrieved 15 September 2013. 
  40. ^ "Safety Matches". ITC Limited. Retrieved 15 September 2013. 
  41. ^ "Agarbattis". ITC Limited. Retrieved 15 September 2013. 
  42. ^ a b "ITC Hotels". ITC Limited. Retrieved 15 September 2013. 
  43. ^ "Paper industry seeks cut in wood import duty". Business Today. 29 May 2014. Retrieved 15 June 2014. 
  44. ^ "ITC to expand flexi packing to tap biz opportunities". Hindu Business Line. 14 December 2012. Retrieved 15 June 2014. 
  45. ^ "ITC Infotech gets CMM-5 certification". The Hindu. 6 September 2000. Retrieved 15 June 2014. 
  46. ^ "General Information". ITC. Retrieved 14 September 2013. 
  47. ^ "Listing Information - ITC". Economic Times. Retrieved 15 September 2013. 
  48. ^ "ITC GDR ne". Luxembourg Stock Exchange. Retrieved 14 September 2013. 
  49. ^ "Yogesh Chander Deveshwar". Wall Street Journal. Retrieved 15 September 2013. 
  50. ^ "Padma Bhushan for ITC chairman YC Deveshwar irks anti-tobacco activists". India Today. 27 January 2011. Retrieved 15 September 2013. 
  51. ^ "ITC chairman YC Deveshwar ranked seventh best performing CEO globally: Harvard Business Review". Economic Times. 23 December 2012. Retrieved 15 September 2013. 
  52. ^ "ITC inducts Meera Shankar in its board as the first women ever". The Times Of India. 4 August 2012. Retrieved 15 September 2013. 
  53. ^ "ITC Board of Directors". Retrieved 15 September 2013. 
  54. ^ "Our Profile". ITC. Retrieved 25 September 2013. 
  55. ^ "Human Development Insights". United Nations Development Programm. 15 September 2008. Retrieved 21 September 2013. 
  56. ^ "ITC-SRA's Origin". itcsra.org. Retrieved 21 September 2013. 
  57. ^ "Visiting Researchers". itcsra.org. Retrieved 21 September 2013. 
  58. ^ SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS". http://www.bis.org.in. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15. 
  59. ^ "Asia's Fab 50 Companies". Forbes. 31 August 2013. Retrieved 14 September 2013. 
  60. ^ "TCS replaces Tata Steel as India's most admired company". Times of India. 9 July 2013. Retrieved 14 September 2013. 
  61. ^ "ITC secures LEED platinum rating for all its luxury hotels". Economic Times. 19 July 2011. Retrieved 15 September 2013. 
  62. ^ "ITC Hotels rated as 'greenest luxury hotel chain in the world'". Deccan Herald. 19 July 2011. Retrieved 15 September 2013. 
  63. ^ "ITC is world’s 6th largest value creator: BCG report". Financial Express. 22 September 2010. Retrieved 15 September 2013. 
  64. ^ "Major Awards Over the Years". ITC Limited. 17 May 2013. Retrieved 14 September 2013. 
  65. ^ "ITC e-Choupal wins Stockholm Challenge Award". The Hindu. 13 May 2006. Retrieved 15 September 2013. 
  66. ^ "...And ITC’s e-Choupal gets Stockholm Award". Indian Express. 13 May 2006. Retrieved 15 September 2013. 

External links[edit]