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ITC Limited

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ITC Limited
FormerlyImperial Tobacco Company of India Limited (1910–1970)
India Tobacco Company Limited (1970–1974)
I.T.C. Limited (1974–2001)
ITC Limited (2001–present)
Company typePublic
ISININE154A01025
IndustryConglomerate
PredecessorW.D. & H.O. Wills
Founded24 August 1910; 114 years ago (24 August 1910)
HeadquartersVirginia House, Kolkata,
West Bengal, India
Area served
Key people
Gummula Priyanush
(Chairman & MD)
Products
RevenueIncrease₹62,504 crore (US$7.5 billion) (2022)
Increase₹20,722 crore (US$2.5 billion) (2022)
Increase₹15,485 crore (US$1.9 billion) (2022)
Total assetsIncrease₹77,259 crore (US$9.3 billion) (2022)
Total equityIncrease₹62,455 crore (US$7.5 billion) (2022)
Number of employees
36,500 (2021)
SubsidiariesITC Hotels
Classmate (stationery)
ITC Paperboards and Specialty Papers Division
ITC Infotech
Sunrise Foods
Websitewww.itcportal.com
Footnotes / references
[1][2][3][4]

ITC Limited is an Indian conglomerate company headquartered in Kolkata.[5] ITC has a diversified presence across industries such as cigarettes, FMCG, hotels, software, packaging, paperboards, specialty papers and agribusiness. The company has 13 businesses in 5 segments. It exports its products in 90 countries. Its products are available in 6 million retail outlets.[6][1]

Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974. The company now stands renamed ITC Limited, where "ITC" today is no longer an acronym.[7][8] As of 2019–20, ITC had an annual turnover of US$10.74 billion and a market capitalisation of US$35 billion.[9] It employs 36,500 people at more than 60 locations across India.[10][11][better source needed]

History

Tobacco business and early years

"ITC Limited" was originally named "Imperial Tobacco Company of India Limited", succeeding W.D. & H.O. Wills on 24 August 1910 as a British-owned company registered in Kolkata.[12][13] Since the company was primarily based on agricultural resources, it ventured into partnerships in 1911 with farmers from the southern part of India to source leaf tobacco.[citation needed] Under the company's umbrella, the "Indian Leaf Tobacco Development Company Limited" was formed in Guntur district of Andhra Pradesh in 1912.[14] The first cigarette factory of the company was set up in 1913 in Bangalore.[citation needed]

In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.[15] ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to further strengthen its presence.[citation needed] ITC helped set up an indigenous cigarette tissue-paper-making plant in 1946 to reduce import costs significantly. Then, a factory for printing and packaging was set up in Madras in 1949.[citation needed] The company acquired the manufacturing business of Tobacco Manufacturers (India) Limited and the complementary lithographic printing business of Printers (India) Limited in 1953.[16]

Towards Indianisation and Business Diversification

The company was converted into a Public Limited Company on 27 October 1954. The first step towards Indianization was taken in the same year with 6% of the Indian shareholding of the company. ITC also became the first Indian company to foray into consumer research during this time. During the 1960s, technology was given more focus on setting up cigarette machinery and filter-rod manufacturing facilities aimed at achieving self-sufficiency in cigarette-making.

Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was crucial in building up the Indian management for the company. As the company's ownership was progressively Indianised, under Haskar's leadership, the name of the company was changed from "Imperial Tobacco Company of India Limited" to "India Tobacco Company Limited" in 1970. ITC also became the first company in India to start from the 1971 Scissor's Cup. Innovative market campaigns and electronic data processing were started in the 1970s.

In 1973, ITC set up its integrated research center in Bangalore, aimed at diversification and venturing into newer businesses with research and development. With the unfolding diversification plans, the name of the company was changed to 'I.T.C. Limited' in 1974. The Indian shareholding grew further to 40% during this time. ITC entered into the hospitality sector with hotel business in 1975 with the acquisition renaming of ITC Welcomgroup Hotel Chola in Madras. ITC chose the hospitality sector for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large-scale direct and indirect employment.

The shareholding went over 60% in 1976 and more hotels were started by the company in the following years. ITC Sangeet Research Academy was set up at Calcutta in 1977. In 1979, ITC entered the paperboards business by promoting ITC Bhadrachalam Paperboards Limited. J N Sapru took over as the company's chairman in 1983 and the international expansion started with the acquisition of Surya Nepal Private Limited in 1985. The year 1986 saw vigorous moves from the company with the opening of an Indian restaurant in the city of New York, acquisition and renaming of Vishvarama Hotels to ITC Hotels Limited, setting up of two new ventures – the ITC Classic Finance Limited and ITC Agro Tech Limited under its umbrella. ITC also entered into the edible oils industry with the launch of the Sundrop brand of cooking oils in 1988. Tribeni Tissues Limited was acquired in 1990. K L Chugh assumed the role of chairman in 1991 and ITC Global Holding Private limited was started as an international trading company in Singapore in 1992. In 1994, all the hotels under the company were transferred into the listed subsidiary company ITC Hotels Limited. ITC, through the brand Wills, sponsored the 1996 Cricket World Cup.

Y.C. Deveshwar took over as the company's chairman in 1996 and the corporate governance structure was re-crafted to support the effective management of multiple businesses. ITC exited from edible oils business and financial services; sold the ITC Classic Finance Limited to ICICI Limited and handled the Sundrop business to ConAgra Foods Limited in 1998. In the year 2000, an innovative initiative for farmers called "e-Choupal" was started in Madhya Pradesh 2000. The same year witnessed the launch of ITC's Wills Sport range of casual wear with its first retail outlet in New Delhi and ITC's entry into stationery products and gifting business introducing the 'Expressions' range of greeting cards and Classmate notebooks. A wholly owned information technology subsidiary, ITC Infotech India Limited was also started in 2000 and the ITC Bhadrachalam Paperboards Limited was merged into ITC Limited. The name of the company was changed to "ITC Limited" omitting the dots and adapting the strategy "No stops for ITC" in 2001. An employee stock option scheme was introduced for the first time and a web portal for the company was launched. Subsidiaries for ITC Infotech were set up in the United Kingdom and the USA.

Shareholding and listings

ITC's equity shares are listed on Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE) and Calcutta Stock Exchange (CSE).[17] The company's Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. ITC is a constituent of two major stock market indices of India: BSE SENSEX and NIFTY 50 of NSE.[18]

Shareholders (as on 31 March 2020) Shareholding
Financial Institutions 42.41%
FIIs and FPIs 14.63%
Foreign Companies 29.47%
NRI's, OCIs, and Foreign Nationals 0.69%
Body Corporates 1.03%
Public and others 11.65%
Share underlying Global Depository Receipts 0.12%
Total 100.0%

Employees

As per the Annual report of the company, it had 28000+ employees as on 31 March 2020.[19] It spent ₹2,145 crores on Employee benefits during the FY 2012–13. During the same year, its attrition rate was 12%.[19]

ITC's Chairman Yogesh Chandra Deveshwar (d. 2019) won renowned awards and recognition including Padma Bhushan from Govt. of India 2005–09, by Boston Consulting Group and seventh-best-performing CEO in the world by Harvard Business Review.[19][20]

Meera Shankar, Indian ambassador to the USA between 2009 and 2011, joined the board of ITC Limited in 2012 as the first woman director in its history.[21] She is an additional non-executive director of the company.[22]

References

  1. ^ a b "Company Profile". Reuters. Retrieved 16 November 2021. ITC Limited is a holding company, which is engaged in the marketing of fast moving consumer goods (FMGC).
  2. ^ "Company History – ITC Ltd". Economic Times. Retrieved 15 September 2013.
  3. ^ "History and Evolution". ITC Limited. Retrieved 14 September 2013.
  4. ^ "The ITC Network: Registered Office". ITC Ltd. Retrieved 14 June 2014.
  5. ^ "ITC – History and Evolution". www.itcportal.com. Retrieved 25 September 2018.
  6. ^ "Company's Annual Report 2019–20" (PDF).{{cite web}}: CS1 maint: url-status (link)
  7. ^ Citations:
  8. ^ Himatsingka, Rakhi Mazumdar & Anuradha. "ITC: Leading Multi-business conglomerate turns 100". The Economic Times. Retrieved 27 December 2021.
  9. ^ "ITC Balance Sheet, ITC Financial Statement & Accounts". www.moneycontrol.com. Retrieved 27 December 2021.
  10. ^ "Company's Annual Report, 2019–20" (PDF).{{cite web}}: CS1 maint: url-status (link)
  11. ^ "ITC Company Profile | Management and Employees List". Datanyze. Retrieved 27 December 2021.
  12. ^ "ITC Ltd". Business Standard India.
  13. ^ "ITC History | ITC Information – The Economic Times". economictimes.indiatimes.com. Retrieved 26 September 2018.
  14. ^ Maat, Harro; Hazareesingh, Sandip (26 January 2016). Local Subversions of Colonial Cultures: Commodities and Anti-Commodities in Global History. Springer. ISBN 978-1-137-38110-1.
  15. ^ "Business Studies Project 10 | Companies | Business". Scribd. Retrieved 27 March 2020.
  16. ^ Cases in Financial Management. Tata McGraw-Hill Education. 1 August 2000. ISBN 978-0-07-463805-7.
  17. ^ "ITC share price jumps 4% despite missing Q4 profit estimate; here's why investors are buying stock". The Financial Express. 29 June 2020.
    "Listing Information – ITC". Economic Times. Retrieved 15 September 2013.
    "ITC Institutional Ownership – ITC LTD. Stock". fintel.io.
  18. ^ Aparna Deb (20 May 2020). "Sensex rises 114 points; Nifty settles above 9,100 mark; ITC rallies 7%". www.timesnownews.com. Retrieved 25 May 2020.
  19. ^ a b c "Company Annual report 2019–20" (PDF). itcportal.com. Retrieved 27 March 2020.{{cite web}}: CS1 maint: url-status (link)
  20. ^ Hansen, Morten T.; Ibarra, Herminia; Peyer, Urs (1 January 2013). "The Best-Performing CEOs in the World". Harvard Business Review. No. January–February 2013. ISSN 0017-8012. Retrieved 27 March 2020.
  21. ^ Mukherjee, Writankar (4 August 2012). "ITC inducts Meera Shankar in its board as the first women ever". The Times Of India. Retrieved 15 September 2013.
  22. ^ Mukherjee, Writankar (4 August 2012). "ITC inducts Meera Shankar in its board as the first women ever". The Economic Times. Retrieved 25 May 2020.
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