PRAXIS COMPANY PROFILE

Name of the company ITC Limited

Major Product / Service Cigarettes, Hotels and Hospitality, Food Business,
Categories Apparel business, Personal Care Products, Stationary,
Paperboard, Packaging and Printing, and Infotech
Major Brands Gold Flake, Navy Cut, Classic, Silk Cut, Bristol, ITC
Welcomgroup Hotels, Palaces and Resorts, Kitchens of
India, Ashirwad, Minto, Sunfeast, Candyman, Bingo,
Wills Lifestyle, John Players, Essenza Di Wills, Fiama
di Wills, Vivel, Superia, Classmate, Paperkraft, AIM
and Mangaldeep
Major Rivals Hindustan Unilever, Proctor and Gamble, Taj Hotels,
Palaces and Resorts

Company Background
Year of inception 1910
Founder(s) Founded as a subsidiary of Imperial Tobacco
Company (U.K.)
Headquarter Kolkata
Cities of India operations Throughout India
History of the company in 250
words)

ITC was incorporated on August 24, 1910 under the name

Imperial Tobacco Company of India Limited, the name of the
Company was changed from Imperial Tobacco Company of
India Limited to India Tobacco Company Limited in 1970 and
then to I.T.C. Limited in 1974. Though the first six decades of the
Company's existence were primarily devoted to the growth and
consolidation of the Cigarettes and Leaf Tobacco businesses,
the Seventies witnessed the beginnings of a corporate
transformation that would usher in momentous changes in the life
of the Company. ITC's Packaging & Printing Business was set
up in 1925 as a strategic backward integration for ITC's
Cigarettes business. It is today India's most sophisticated
packaging house. In 1975 the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was
rechristened 'ITC-Welcomgroup Hotel Chola', Since then ITC's
Hotels business has grown to occupy a position of leadership,
with over 100 owned and managed properties spread across
India. In 1979, ITC entered the Paperboards business by
promoting ITC Bhadrachalam Paperboards Limited, which today
 has become the market leader in India. In 1985, ITC set up Surya
Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper
manufacturing company and a major supplier of tissue paper to
the cigarette industry. Also in 1990, leveraging its agri-sourcing
competency, ITC set up the Agri Business Division for export of
agri-commodities. The Division is today one of India's largest
exporters. In 2000, ITC forayed into the Greeting, Gifting and
Stationery products business with the launch of Expressions
range of greeting cards. A line of premium range of notebooks
under brand “Paperkraft” was launched in 2002, the popular
range of notebooks was launched under brand “Classmate” in
2003. ITC also entered the Lifestyle Retailing business with the
Wills Sport range of international quality relaxed wear for men
and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear
(2002) and Wills Clublife evening wear (2003).

Key Personnel
CEO(India & Global)
CFO(India & Global) Rajiv Tondon
CMO(India & Global)
COO(India and Global)

Financial Information
Turnover for the FY 2009- Rs. 23,144 crore
2010
Net Profit (Amount) (Fy 2009- Rs. 1,634 crore
2010)
Net margin (%) (Fy2009-
2010)
Turnover (Quarter Apr-Jun Rs. 4,817 crore
2010)
net Profit (Amount) (Quarter Rs. 1,070 crore
Apr-Jun 2010)
Net Margin (%) (Quarter Apr-
Jun 2010)
Market Price of the Share BSE (29th July, 13:51) Last Trade: 308.00
(Please mention the date of the NSE (29th July, 14:09) Last Trade: 307.70
for which you are quoting the
Market price)

What’s Up
Top 5 Latest news - A brief
Headline along with the link of
the webpage covering the
news) 1. 'ITC would be a definite buy around Rs 280' -
In a chat with ET Now, Shardul Kulkarni, Sr.
Technical Analyst, Angel Broking, talks about
the outlook of FMCG stocks.

LINK :
http://economictimes.indiatimes.com/Views/Reco
 mmendations/articleshow/6237404.cms

ITC lines up Rs 23,000 cr capex over next 10 yrs -

Ritwik Mukherjee Jul 25 2010

LINK : http://www.mydigitalfc.com/companies/itc-
lines-rs-23000-cr-capex-over-next-10-yrs-228

2. ITC to put in mega bucks into FMCG - Lalitha

Srinivasan

LINK : http://www.financialexpress.com/news/ITC-to-
put-in-mega-bucks-into-FMCG/652034/

ITC set to get land for food factory in Bengal

LINK: http://sify.com/finance/itc-set-to-get-land-for-
food-factory-in-bengal-news-default-
khxu4edfcfh.html

3. ITC sees expansion in hotels, consumer goods

LINK :
http://www.livemint.com/2010/07/23183844/ITC-
sees-expansion-in-hotels.html
Mergers and Acquisition (A ITC Classic Ltd aquires Wipro BT ltd
brief account of any latest and
planned M&A along with web-
link of the news page)

LINK: http://www.alacrastore.com/mergers-
acquisitions/ITC_Ltd-1046049

Latest Awards and Recognition

1. ITC is one of the eight Indian companies to
figure in Forbes A-List for 2004, featuring 400
of "the world's best big companies".
2. Forbes has also named ITC among Asia's'Fab
50' and the World's Most Reputable
Companies.
3. ITC Chairman Y C Deveshwar received The
U.S.-India Business Council (USIBC) Award for
Global Leadership 2010
4. The "Best Supply Chain Practices Award" for
time-effective and cost-efficient Logistics
Management in Organized Retail to ITC's
Lifestyle Retailing Business Division (LRBD).

SOURCE:
http://www.itcportal.com/sets/global_honours_frames.htm
 Company Ethos
Vision Statement 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.
Your interpretation of the
Vision Statement in 100 words
ITC is one of the few Indian companies which has a
sizable presence across sectors like hospitality, FMCG,
Retail etc. It has earned a lot of name and fame owing
to its business acumen and satisfactory results over the
years, it aspires to keep this position intact even in this
globalized environment by being competent enough to
compete with global standards and thus continue to
keep on creating value for the stakeholders of the
company as it has done over the years.

Mission Statement To enhance the wealth generating capability of the

enterprise in a globalising environment, delivering
superior and sustainable stakeholder value.
Your interpretation of the
mission Statement in 200 ITC intends to grow its value creation ability in the
words next few years. With the entry of foreign players in the
Indian markets, the competition for market space has
increased. There are also chances of the market share
getting divided. ITC aspires to not only retain its
market position but also to grow its wealth creating
ability for the benefit of its stakeholders by staying
abreast with global markets in every aspect. And at the
same also try to innovate to in order to improve its
offering to its stakeholders in a sustainable way.
According to me, in order to be successful in
completing this mission of theirs ITC would have to
innovate and employ best practices in each sector. It
would also have to use its wealth judiciously and try
and expand its business to markets where it does not
have much presence yet.
Value 1 Trusteeship
Interpretation in 100 Words

Value 2 Customer Focus

Interpretation in 100 Words

Value 3 Respect for People

Interpretation in 100 Words

ITC is a result oriented organization, setting high performance standards for themselves as
individuals and teams. ITC simultaneously respects and values people and upholds humanness
and human dignity. They try to acknowledge that every individual brings different perspectives
and capabilities to the team and that a strong team is founded on a variety of perspectives.
They want individuals to dream, value differences, create and experiment in pursuit of
opportunities and achieve leadership through teamwork.

Value 4 Excellence
Interpretation in 100 Words

ITC does what is right, does it well and wins. It aims

to strive for excellence in whatever it does. It gives
strong emphasis to perfection and professionalism
in its business.

Value 5 Innovation
Interpretation in 100 Words

Value 6 Nation Orientation

Interpretation in 100 Words

Industry Information
Industry FMCG
Market Size in India (Please US$ 25 billion (2007-08 retail sales)
paste the link of the web-page) http://www.ibef.org/download/FMCG_060710.pdf
Market Share of the Company 6%
in India http://www.ibef.org/download/FMCG_060710.pdf
Major Indian Players Britannia Industries Ltd., Ltd., Dabur India Ltd.,
Emami Ltd., Godrej Consumer Products Ltd., Gujrat
Cooperative Milk Marketing Federation (Amul),
Marico Indusries Ltd., Tata Tea Ltd.
Major Global Players GlaxoSmithKline Consumer Healthcare India Ltd.,
Colgate Palmolive India, Hindustan Unilever Ltd.,
Nestle India Ltd., Proctor & Gamble Hygiene and
Healthcare Ltd.
CAGR 10-12 %
(Please paste the link of the http://www.ibef.org/download/FMCG_060710.pdf
source of the information)
Key Growth Drivers of the
industry

Any additional information.

Group Number 32
Group Participants Amol Arun Endait F - 092
Information(name and Roll Anand Singh F - 093
No) Aniket Samat F - 094

Note:

• Please mention the source of information wherever required.

• The last date of submission is FRIDAY, 30-Jul-2010 23:59:59

• For any clarification feel free to contact team Praxis

o Ankit: 9999059900

o Imtiaz: 9650695096

o Abhijeet 9810380954