TOPIC – FINAL PROJECT REPORT ON ITC’S B-NATURAL

Name – Srijan Kumar Maiti

Section – “C”, Roll No. – DM21C52
Semester - 1
Course – PGDM, Session – 2021 – 2023
_____________________
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 CONTENTS
Aspect – Sectoral Information........................................................................................................................................2
Worldwide Sectorial Contribution to The World Economy................................................................................2
GDP Contribution to The Indian Economy...........................................................................................................3
Historical Growth & Degrowth Pattern Observed in Last 5 Years....................................................................4
Porter’s Five Forces Model......................................................................................................................................5
Aspect – Company Information......................................................................................................................................6
Promoters of The Company & Company Snapshot..............................................................................................6
Market Share of ITC Ltd.........................................................................................................................................7
Products/Services of ITC.........................................................................................................................................8
Competitor Analysis.................................................................................................................................................9
Market Share............................................................................................................................................................9
Company News / Corporate Announcement.........................................................................................................9
Aspect – Marketing Strategy........................................................................................................................................10
SWOT Analysis of ITC Ltd...................................................................................................................................10
STP of ITC Ltd.......................................................................................................................................................10
Mapping of The Products/Services in BCG Matrix............................................................................................10
Product Life Cycle..................................................................................................................................................10
Comparison of Sales of ITC Ltd. In Last 3 Years...............................................................................................11
Last 3 Years Sales Graph of ITC Ltd...................................................................................................................11
Promotional Strategy of ITC Ltd..........................................................................................................................12
Aspect – Business Finance............................................................................................................................................13
Understanding the Financial Statements (Data Source – Ace Analyzer)..........................................................13
Direct and Indirect Costs of The Company – Comparison................................................................................15
Working Capital Requirement for Years.............................................................................................................16
Ratio Analysis.........................................................................................................................................................17
ROCE, ROI & ROA of Years...............................................................................................................................18
Aspect – Human Resource Management......................................................................................................................19
Organization Structure:.........................................................................................................................................19
Analysis of JD & JS Posted by the Company on Online Networks:..................................................................19
Training Needs of the Company:..........................................................................................................................20
Organization Culture as per Employee Reviews:................................................................................................21
Conclusion....................................................................................................................................................................21
Bibliography.................................................................................................................................................................21

1
Aspect – Sectoral Information
Worldwide Sectorial Contribution to The World Economy

Fast moving consumer goods are merchandise that are bought quickly and at low price like soft
drinks, enamel paste, goodies and so on. FMCG corporations have a big marketplace to target.
but, regularly companies face exceptional challenges in different nations to seize authentic
marketplace value. FMCG sector has generated revenue of around $288 million, where the UK
has the highest share of $87.9 million, among all the countries.

Contribution to World Economy

5.90%

30.10% 16.70%

22.60%

24.80%

US INDIA CHINA JAPAN UK

Source – International Monetary Fund Data

2
GDP Contribution to The Indian Economy

The contribution of FMCG to GDP is 10%. It's one of the quickest-developing sectors and 4th
largest sector in India. The fast-moving consumer items industry in India is one of the key
individuals to its financial system.
As of now the urban sector is contributing 55% of that 10% and rural is contributing 45% but
according to experts in the last few years, the FMCG sector has grown at a faster pace in rural
India as compared to urban India. With the ever-increasing growth potential of the FMCG
Segment this sector has immense potential.

Urban-Rural Industry Breakup (FY19)

RURAL
45%
URBAN
55%

URBAN RURAL

Source – IBEF Data FY2019

3
Historical Growth & Degrowth Pattern Observed in Last 5 Years

 It is the 4th largest sector in the Indian economic system.

 By 2025, India will likely to be the 5th largest FMCG market.
 The FMCG market place is predicted to grow at a CAGR of 14.9% to attain US$ 220
billion by 2025, from US$ 110 billion in 2020.
 According to analysis, the rural market has registered a boom of 14.6% in the equal zone.

G r o w t h / D e g r o w t h P a tt e r n
120 2020; 110

100
2019; 83.3

80 2018; 68.4
Revenue(In US$)

60 2017; 52.8
2016; 49

40

20

0
2016 2017 2018 2019 2020
Years

Source – IBEF FMCG Data FY2020

4
Porter’s Five Forces Model

Threat of
New Entry

Competition
Supplier in the Buyer
Power Power
Industry

Threat of
Substitution

Threats of New Threats of Supplier Competitive

Buyer Power
Entrants Substitution Power Rivalry
Time & Cost of Substitute Number of Number of Number of
entry Performance Customers Suppliers Competitors
Specialist Size of Quality
Cost of Change Size of each Order
Knowledge Suppliers Differences
Economies of Difference Between Ability to Other
Scale Competition Change Differences
Cost of
Cost Advantage Price Sensitivity Switching Costs
Changing
Technology Customer
Ability to Substitute
Protection Loyalty
Costs of Leaving
Barriers to Entry Cost of Changing
Market

5
Aspect – Company Information

Promoters of The Company & Company Snapshot

ITC is a diversified conglomerate with businesses spanning FMCG market. ITC has sustained its
position as one of the fastest growing FMCG businesses in the country along with an efficient
supply chain and expanding distribution network. ITC is the market leader in Indian Paperboard
and Packaging industry.

Sector FMCG
Industry Cigarettes/Tobacco
Face Value 1
Incorporation
24.08.1910
Year
Chairman Sanjeev Puri
Company
Rajendra Kumar Singhi
Secretary
Auditor SRBC & Co LLP
Virginia House, 37, Jawaharlal Nehru Road, Kolkata, WB -
Address
71
Revenues US$10 Billion (2020)
Net Income US$1.7 Billion (2020)
Number of
36500(2021)
Employees

6
 Shareholding Pattern of ITC Ltd.
0.12%
10.79%

33.30% 10.37%

31.77%
13.65%

Foreign Institutions Mutual Funds Others

Public Financial Institutions GDR

Source – IBEF Data FY2020

Market Share of ITC Ltd.

Market Share FY2021

3%
17%

43%

12%

25%

Cigarettes FMCG Paper Packaging Agri Business Hotel

Source – IBEF Data FY2020

7
Products/Services of ITC

ITC

Paperboard & Information

FMCG Hospitality Packaging Agri-Business
Speciality Papers Technology

Cigarettes & Cartoon Board

Hotels Coated Boards Agri Commodities ITC Infotech
Cigars Packaging

Branded Flexible
Foods Graphic Boards Agri Business ILTD
Accommodation Packaging

Tobacco
Personal Care Restaurants Fine Papers E-Choupal
Packaging

Education & Thin Printing

Stationery Papers

Lifestyle Retailing

Safety Matches

8
Competitor Analysis

Sl.No. Competitors
1 HUL
2 P&G
3 Nestle
4 Godrej Consumer Products
5 Godfrey Phillips India Ltd.
6 Danone
7 Coca-Cola
8 Colgate
9 Dabur
10 Marico

Market Share

Market Share of Competitors

Others
16%
ITC
Dabur 32% ITC
5% HUL
Nestle
Nestle Dabur
9% Others

HUL
38%

Source – Economic Times Data

Company News / Corporate Announcement

1. ITC has started clinical trials of nasal spray for Covid-19 preventions.
2. ITC has reported 10% rise in Q2 consolidated net profit.
3. ITC has synced with the future of Mother Sparsh and acquired 16% stake in D2C
Segment.
4. ITC hotels have started to launch new luxury brand Mementos.

9
 Aspect – Marketing Strategy
SWOT Analysis of ITC Ltd.
STRENGTHS WEAKNESSES
Declining industry trend – Legal cigarette business has witnessed a 25% dec line in volumes from 2012- 13 whic h has affec ted the
1 Brand image– ITC is the most valuable brand of India with net income of Rs. 13,032 c rore in 2020. 1 profits of ITC Limited.
Competence– It has a track rec ord of 100 years of presence, quality, consistency and continuous Tax reforms in India– Under the newly enforc ed Goods and Servic es Tax Act, 2017 tax is c harged at a higher rate than before GST
2 progress, expansion and diversific ation. 2 which is exacerbating the business especially cigarette business of ITC.
Market position– ITC is dominating Indian tobac c o market by selling 81% of the cigarettes and Multiple brands– ITC Limited has way too many brands and its business is expanded to various different industries whic h is causing
3 c igar suc h as Gold Flake, Gold Flake Super Star, Wills Navy Cut, Premium Lights, Classic etc. 3 brand dilution.
Debt– ITC has total debt of 3.38 billion this is muc h higher than that of the sector and signific antly higher than that of the Total Debt
4 Core competency– It is India’s largest seller of branded foods. 4 Industry.
Dependence on tobacco products– ITC Limited is largely depending upon tobac c o products whic h may become detrimental to its
5 Leader of other sectors– ITC has India’s largest hotel chain with over 90 hotels throughout India. 5 progress in future.
OPPORTUNITIES THREATS
Growth rate – Growth rate of Indian ec onomy is expected to be 7% that means new opportunities Competition– ITC Limited is facing and will fac e in future, intense competition from domestic and foreign c ompanies in various
1 will arise in future. 1 industries.
Change in customer habits– Inc rease in the purc hasing power of Indians have c hanged the Compliance– GST has imposed stric ter and heavier compliance regulation and filings which will ultimately increase the c ost of
2 opportunity to buy branded produc ts over unbranded cheap produc ts for better quality. 2 c ompliance of ITC.
 Unchanged interest rate – Raising debt funds will not be expensive for further expansion or
3 diversific ation of the business. 3  Inflation effect– In July, 2017 fuel prices increased to 5.56% c onsequently freight and transportation c harges will inc rease.

Growing demand in FMCG sector – Inc reasing urbanization and a growing middle c lass are resulting Political disturbance– Disruption c aused by demonetization has affec ted Indian ec onomy adversely in many ways, causing its growth
4 in an ever-growing demand for proc essed food in the FMCG sector 4 forecast to be reduced from 7.4% to 7% by the World Bank. It may affect all the sec tors and c ompanies operating within the ec onomy.

STP of ITC Ltd.

Segment Products and Services for Daily Needs

Target Group Every Indian Household. Specially the Middle Class of the Society
Positioning Enduring Value - For the Nation as well as the Shareholder

Mapping of The Products/Services in BCG Matrix

HIGH LOW
STAR Question Mark
Agri-Business FMCG - Foods
HIGH

Hotels
Paperboards & Packaging
Cash Cow Dog
LOW

FMCG - Cigarettes ITC Infotech

Product Life Cycle

Introduction – At the first stage any product remains in the introduction stage of the life cycle.
Growth – At the expansion stage, the purpose of marketing efforts is to set the product apart
from its competitors in the industry.
Maturity – The product life cycle curve gets notably flatter with the maturity of the product.
Between growth and maturity, a new stage is also developed and called as expansion.
Decline - Decline is an unavoidable part of the life cycle of a product. Sales get declined at this
stage.

10
Comparison of Sales of ITC Ltd. In Last 3 Years

Sales Data of ITC Ltd.

Narration Mar-19 Mar-20 Mar-21
Sales 48,339.58 49,387.70 49,257.45
Expenses 29,802.19 30,044.16 32,192.67
Operating Profit 18,537.39 19,343.54 17,064.78
Other Income 2,080.44 2,417.32 2,576.95
Depreciation 1,396.61 1,644.91 1,645.59
Interest 71.40 81.38 57.97
Profit before tax 19,149.82 20,034.57 17,938.17
Tax 6,313.92 4,441.79 4,555.29
Net profit 12,592.33 15,306.23 13,161.19
EPS 10.27 12.45 10.69
Price to earning 28.94 13.79 20.43
Price 297.25 171.70 218.50

RATIOS:
Dividend Payout 55.98% 81.51% 100.54%
OPM 38.35% 39.17% 34.64%

Source – Ace Analyzer ITC Ltd. Data

Last 3 Years Sales Graph of ITC Ltd.

Source – Moneycontrol.com – ITC Ltd.

11
Promotional Strategy of ITC Ltd.

The promotion strategy of the company is very unique based on the brand proposition and target
audience.
It promotes the product on various social media platforms also through social media
marketing, television etc.
The brand presence is well-distributed due to various range of products, they also have
different brand ambassadors for promotion.
It has implemented aggressive marketing strategy and has taken advantage of all types of
promotional medium available in the market.
Several advertisement campaigns have been launched, which are visualized on popular
TV channels, hoardings and online websites.
It has also come with prominent personalities such as Kareena Kapoor and Shahrukh
Khan for better enthusiasm in public market.

12
 Aspect – Business Finance
Understanding the Financial Statements (Data Source – Ace Analyzer)

Profit & Loss Statement of ITC Ltd.

Year End Y202103 Y202003 Y201903 Y201803 Y201703 Y201603 Y201503 Y201403 Y201303 Y201203
No of Months 12 12 12 12 12 12 12 12 12 12
Gross Sales 48524.5 46807.3 45784.4 44329.8 55448.5 51944.6 50389 47068.7 42105.5 35220.9
Less: Excise 3039.43 1187.64 788.74 3702.23 15359.8 15361.9 13881.6 13830.1 12204.2 10073.4
Net Sales 45485.1 45619.7 44995.7 40627.5 40088.7 36582.7 36507.4 33238.6 29901.3 25147.5
EXPENDITURE :
Increase/Decrease in Stock -526.86 -176.34 -180.14 1041.85 644.17 -196.55 -214.53 -128.41 -246.35 -65.59
Raw Materials Consumed 20501.5 17411.5 17485.3 14748.2 15332.1 13646.6 14886.5 13284.8 12312.1 9697.02
Power & Fuel Cost 672.11 744.55 714.88 620.92 550.32 541.57 581.65 613.19 550.11 453.02
Employee Cost 2820.95 2658.21 2728.44 2487.46 2444.31 2331.59 1780.04 1608.37 1387.01 1257.62
Other Manufacturing Expenses 1644.59 1993.6 1961.98 1793.6 1765.79 1642.94 1601.9 1330.48 1157.02 1130.04
General and Administration Expenses 1004.83 1286.46 1357.45 1285.12 1591.3 1629.17 1419.54 1089.35 1234.39 1049.68
Selling and Distribution Expenses 2734.93 2554.33 2497.82 2109.33 2028.34 2114.41 1983.48 1982.31 2088.32 1878.09
Miscellaneous Expenses 1100.43 1230.16 1109.89 1000.59 1148.19 1194.46 1044.57 983.04 800.09 878.92
Less: Pre-operative Expenses Capitalised 0 0 0 0 0 0 0 0 0 0
Total Expenditure 29952.5 27702.4 27675.6 25087.1 25504.6 22904.1 23083.1 20763.1 19282.7 16278.8
PBIDT (Excl OI) 15532.7 17917.3 17320 15540.5 14584.1 13678.5 13424.3 12475.5 10618.6 8868.66
Other Income 3252.26 3025.37 2493.86 2153.29 2002.2 1828.15 1613.45 1107.14 967.1 825.34
Operating Profit 18784.9 20942.6 19813.9 17693.8 16586.3 15506.7 15037.7 13582.7 11585.7 9694
Interest 58.94 80.44 58.04 109.6 45.33 71.93 78.45 23.63 105.91 97.96
PBDT 18726 20862.2 19755.9 17584.2 16541 15434.8 14959.3 13559 11479.7 9596.04
Depreciation 1561.83 1563.27 1311.7 1145.37 1038.04 1000.68 961.74 899.92 795.56 698.51
Profit Before Taxation & Exceptional Items 17164.2 19298.9 18444.2 16438.8 15503 14434.1 13997.5 12659.1 10684.2 8897.53
Exceptional Income / Expenses 0 -132.11 0 412.9 0 0 0 0 0 0
Profit Before Tax 17164.2 19166.8 18444.2 16851.7 15503 14434.1 13997.5 12659.1 10684.2 8897.53
Provision for Tax 4132.51 4030.76 5979.84 5628.45 5302.06 5105.7 4389.79 3873.9 3265.79 2735.16
PAT 13031.6 15136.1 12464.3 11223.3 10200.9 9328.37 9607.73 8785.21 7418.39 6162.37
Extra items 0 0 0 0 0 0 0 0 0 0
Appropriations 46627.8 42114.2 34455.6 28800.1 26790.8 23586 15823.2 12573.3 9390.98 6711.04
Dividend(%) 1075 1015 575 515 475 850 625 600 525 450
EPS 10.59 12.31 10.17 9.2 8.4 11.59 11.99 11.05 9.39 7.88
Adjusted EPS 10.59 12.31 10.17 9.2 8.4 7.73 7.99 7.36 6.26 5.25

13
 Balance Sheet of ITC Ltd.
Year End Y202103 Y202003 Y201903 Y201803 Y201703 Y201603 Y201503 Y201403 Y201303 Y201203
Currency Rate(INR) As Of 31-03-202131-03-202031-03-201931-03-201831-03-201731-03-201631-03-201531-03-201431-03-201331-03-2012
Currency Rate (INR) In INR 1 1 1 1 1 1 1 1 1 1
SOURCES OF FUNDS
Share Capital 1230.88 1229.22 1225.86 1220.43 1214.74 804.72 801.55 795.32 790.18 781.84
Share warrants & Outstandings 1706.52 2022.18 1997.94 1873.97 1599.71 1201.3 0 0 0 0
Reserve 56067.18 60777.76 54725.99 48305.67 42526.51 39650.41 29934.14 25466.7 21497.67 18010.05
Shareholder's Funds 59004.58 64029.16 57949.79 51400.07 45340.96 41656.43 30735.69 26262.02 22287.85 18791.89
Secured Loans 0 0 0 0 0 0 0 0 0 0
Unsecured Loans 674.06 499.14 182.43 206.7 173.22 153.15 146.46 166.09 195.13 197.38
Total Debts 674.06 499.14 182.43 206.7 173.22 153.15 146.46 166.09 195.13 197.38
Total Liabilities 59678.64 64528.3 58132.22 51606.77 45514.18 41809.58 30882.15 26428.11 22482.98 18989.27
Net_Block 29054.75 25934.67 22852.69 18690.08 16895.59 15005.32 21726.97 18544.87 16944.38 14144.35
Less: Accumulated Depreciation 7256.48 5802.48 4366.29 3124.09 2015.35 994.35 7548.48 6532.13 5735.04 5045.16
Less: Impairment of Assets 0 0 0 0 0 0 0 0 0 0
Lease Adjustment A/c 0 0 0 0 0 0 0 0 0 0
Capital Work in Progress 3333.47 2780.2 3401.36 5025.58 3537.02 2419.17 2114.14 2295.73 1487.79 2276.75
Pre-operative Expenses pending 0 0 0 0 0 0 0 0 0 0
Assets in transit 0 0 0 0 0 0 0 0 0 0
Investments 28680.09 32991.08 30847.75 27190.19 21361.08 16838.55 9911.82 10303.45 8788.26 7512.52
Current Assets, Loans & Advances
Inventories 9470.87 8038.07 7587.24 7237.15 7863.99 8519.82 7836.76 7359.54 6600.2 5637.83
Sundry Debtors (Debotrs) 2090.35 2092 3646.22 2357.01 2207.5 1686.35 1722.4 2165.36 1163.34 982.37
Cash and Bank 4001.5 6843.27 3768.73 2594.88 2747.27 5639.2 7588.61 3289.37 3615 2818.93
Other Current Assets 696.61 764.65 740.45 679.18 532.65 426.22 293.55 269.69 216.36 141.18
Loans and Advances 1509.38 1593.9 1319.77 1731.33 1086.2 491 549.89 1533.51 937.14 519.43
Total Current Assets 17768.71 19331.89 17062.41 14599.55 14437.61 16762.59 17991.21 14617.47 12532.04 10099.74
Less : Current Liabilities and Provisions
Current Liabilities 9788.06 8834.76 9251.62 8817.36 6687.16 6268.28 5575.82 5619.61 5197.6 4822.26
Provisions 386.11 254.65 369.94 39.24 142.91 85.99 6106.09 5884.71 5133.13 4303.95
Total Current Liabilities 10174.17 9089.41 9621.56 8856.6 6830.07 6354.27 11681.91 11504.32 10330.73 9126.21
Net Current Assets 7594.54 10242.48 7440.85 5742.95 7607.54 10408.32 6309.3 3113.15 2201.31 973.53
Miscellaneous Expenses not written off 0 0 0 0 0 0 0 0 0 0
Deferred Tax Assets / Liabilities -1727.73 -1617.65 -2044.14 -1917.94 -1871.7 -1867.43 -1631.6 -1296.96 -1203.72 -872.72
Total Assets 59678.64 64528.3 58132.22 51606.77 45514.18 41809.58 30882.15 26428.11 22482.98 18989.27
Contingent Liabilities 884.97 735.31 733.28 1006.94 689.83 582.55 559.55 361.5 466.54 287.08

Cash Flow Statement of ITC Ltd.

Particulars Y202103 Y202003 Y201903 Y201803 Y201703 Y201603 Y201503 Y201403 Y201303 Y201203
No of Months 12 12 12 12 12 12 12 12 12 12
Profit Before Tax 17164.2 19166.8 18444.2 16851.7 15503 14434.1 13997.5 12659.1 10684.2 8897.53
Adjustment -1318.74 -1128.5 -727.46 -401.44 -351.09 -142.64 -493.06 -167.46 -38.51 -28.15
Changes In working Capital -394.84 418 -481.77 1920.16 63.11 -251.79 30.19 -1732.2 -1049.4 -535.82
Cash Flow after changes in Working Capital 15450.6 18456.3 17234.9 18370.4 15215 14039.6 13534.7 10759.5 9596.24 8333.56
Cash From Operating Activities 11494 13806.2 11749.1 12650.9 10002 9211.92 9308.87 6962.3 6709.89 6015.59
Cash Flow from Investing Activities 6497.89 -5516.7 -5081.8 -6691.2 -2780.3 -3710.9 -4822.6 -2823.3 -3580.8 -2544.2
Cash from Financing Activites -18378.9 -7890.9 -6600.6 -6019.9 -7137.6 -5465.1 -4573.6 -4173.9 -3232.6 -3246.6
Net Cash Inflow / Outflow -387.05 398.6 66.73 -60.24 84.07 35.92 -87.31 -34.84 -103.44 224.89
Opening Cash & Cash Equivalents 561.35 162.75 96.02 156.26 72.19 36.27 121.06 155.9 259.34 34.45
Cash & Cash Equivalent on Amalgamation / Take over / Merger 56.95 0 0 0 0 0 2.54 0 0 0
Cash & Cash Equivalent of Subsidiaries under liquidations 0 0 0 0 0 0 0 0 0 0
Translation adjustment on reserves / op cash balalces frgn subsidiaries 0 0 0 0 0 0 0 0 0 0
Effect of Foreign Exchange Fluctuations 0 0 0 0 0 0 0 0 0 0
Closing Cash & Cash Equivalent 231.25 561.35 162.75 96.02 156.26 72.19 36.29 121.06 155.9 259.34

14
Direct and Indirect Costs of The Company – Comparison

Direct Cost of ITC Ltd.

Particulars FY2020 FY2019 FY2018
Cost of Material Consumed 20501.5 17411.5 17485.3
Changes in Inventories 9470.87 8038.07 7587.24
Employee Benefit Expenses 2820.95 2658.21 2487.66
Total 32793.3 28107.8 27560.2

Indirect Cost of ITC Ltd.

Particulars FY2020 FY2019 FY2018
Finance Cost 58.94 80.44 58.04
Depreciation Expenses 1561.83 1563.27 1311.7
Other Expenses 1644.59 1993.6 1961.98
Total 3265.36 3637.31 3331.72

Fixed Assets - The fixed asset refers to long-term tangible property that an origination uses to
continue operation in order to generate revenue. As a mentioned in the Balance Sheet the fixed
asset for ITC Ltd. include tangible assets which amount to Rs 13,472.37 Crore which increased
by 6.1% compared to 2019.
Working Capital = Current Asset - Current Liability
Working capital is a time period used essential to suggest the monetary situation of a company or
a business enterprise with inside the brief time period in different words it is able to be referred
to as scale to degree the general performance of the commercial enterprise entity.
To recap the running capital of a selected company or origination one is needed to subtract the
present day of liabilities from the overall present day belonging of the entity. The ratio shows
whether or not the unique business enterprise has enough belongings with attend to its brief time
period debt.
Working capital is acquired from agency operation like stock and debt management sale series
and provider payment.

15
Working Capital Requirement for Years

Current Assets of ITC Ltd.

Particulars FY2021 FY2020 FY2019
Current Investment 28680.9 32991.1 30847.75
Inventories 9470.87 8038.07 7587.24
Trade Receivables 2090.35 2092 3646.22
Cash & Cash Equivalent 4001.5 6843.27 3768.73
Short term Loans 1509.38 1593.9 1319.77
Other Current Assets 696.61 764.65 740.45
Total 46449.6 52323 47910.16

Current Liabilities of ITC Ltd.

Particulars FY2021 FY2020 FY2019
Short Term Provisions 386.11 254.65 369.4
Current Liability 9788.06 8834.76 9251.62
Total 10174.2 9089.41 9621.02

Current Liabilities of ITC Ltd.

Particulars FY2021 FY2020 FY2019
Current Assets of ITC Ltd. 46449.6 52323 47910.16
Current Liabilities of ITC Ltd. 10174.2 9089.41 9621.02
Working Capital 36275.4 43233.6 38289.14

16
Ratio Analysis

Liquidity Ratios - Provides information on a company's ability to meet its short−term,

immediate obligations.
 Current Ratio = Current Assets/Current Liabilities
 Quick Ratio = Current Assets –Inventory/Current Liabilities
 Debt Equity Ratio = Debt (Loan Funds)/Equity (Shareholder’s Funds)

Liquidity Ratio
2020; 1.22
2019; 1.08 2018; 1.08

2020; 0.51 2019; 0.5

2018; 0.39

2020; 0.01 2019; 0.01 2018; 0.01

Current Ratio Qucik Ratio Debt Equity Ratio

Turnover Ratios - Information on a company's ability to manage its resources (that is, its assets)
efficiently.
 Inventory Turnover Ratio = Sales/Inventory
 Fixed Assets Turnover Ratio = Net Sales/Fixed
 Debtors’ turnover ratio = Net sales/Average debtors

Turnover Ratio
30 27.82 26.5
25 23.91

20
15
10 6.53 6.05
4.53
5 1.8 1.81 1.69
0
2020 2019 2018

Inventory Turnover Ratio Debtor Turnover Ratio Fixed Asset Turnover Ratio

17
Profitability Ratios - Provides information on the amount of income from each rupee of sales.
 Gross Profit Margin = Gross Profit*100/Net Sales
 Net profit margin = Net profit/Net sales
 Return on Equity Ratio = PAT - preference dividends/Average Owners' Equity

Profitability Ratio
35
33.28 32.77 32.88
30 30.97 31.36
25
24.05 23.97
20 22.88 22.91

15

10

0
2020 2019 2018

Gross Profit Margin Net Profit Margin Return on Equity Ratio

ROCE, ROI & ROA of Years

ROCE, ROI & ROA

Particulars FY2020 FY2019
ROCE 23.55 22.6
ROI 36.21 35.58
ROA 52.45 51.66

18
 Aspect – Human Resource Management
Organization Structure:
Chairman & MD

Board of Directors

CEO (Trade Divisional

DCE (Indian Tobacco DCE (Paperboards, Senior VP (Corporate
CFO CEO (Agri & IT) CEO (Food Business) Marketing & Executive(Education Executive Director Company Secretary
Division) Paper & Packaging) Affairs)
Distribution) & Stationery)

COO, Chocolates & Paperboards & Personal Care

DCE (Agri Business) Tobacco Division
Coffee Specialty Division Products

COO, Dairy &

Packaging & Printing
Beverages

COO, Food COO, Hotels

Analysis of JD & JS Posted by the Company on Online Networks:

As per the data collected and employee reviews in Glassdoor, Ambitionbox.com and Naukri.com
we have analyzed and graphically represented the Occupational FAQ’s asked to Managers,
Professionals and Clerical Staffs as structured in their JD’s.

Analysis of JD (% Calculation)
27.8 28.1

22 22
20.4
19.3
18.6

15.7 16.1
14.6 14.6

10.8 11.2
8.9
8.1
6.4 6 6.4
5.4
4.1 3.9
2.8 2.8 3.3
1
0 0

Source – Ambitionbox.com, Linked.in, Naukri.com, Glassdoor.com

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Training Needs of the Company:

India’s Workforce Scenario:

In each and every year around 15 million youth comes under the workforce segment which is
potentially an enormous pool for employable skilled/unskilled talent. Majority of the young job-
seekers come from economically challenged households in rural and semi-urban areas. Though
the country faces a huge gap due to lack of access and focus on quality training and market
relevant skills.

Contribution of ITC:
Agri-business trainings, Skilling & Vocational Training Programs provides these youth with
access to high quality and affordable market-linked skills. Focusing on the most disadvantaged,
the Company offers them a market relevant skill in the manufacturing and services sectors,
supported by employment linkages.

Skills & Skills &

Unprivileged Vocational Vocational
Youth Training Training
Institutions Programme

The organization has collaborated with renowned institutions to enhance employability of the
underprivileged youth. For this, they have come up with certain Strategies for training:
1. Provide affordable training at accessible locations – 4-6-week skill enhancement courses
in manufacturing & services Sector.
2. Assisting participants in finding good employments – Campus Placements  Lateral
Recruitments.

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Organization Culture as per Employee Reviews:

Organization Culture - ITC

4.1
3.9
3.8 3.8
3.7 3.7 3.7 3.7
3.6 3.6
3.5 3.5
3.4
3.3
3

Source – Ambitionbox.com, Linked.in, Naukri.com, Glassdoor.com

Conclusion
ITC Ltd has increased its digital marketing game and made its presence in the digital market.
The company has a solid base and that is the main reason it is evolving over years. It is one of
the leading producers in the business market. Though it is difficult for the company in the long
run due to multiple competitors across the market, they need to maintain their reputation and
consistency with their future work and initiatives. 
As ITC has implemented digital marketing strategy, so it will be beneficial for the new comers in
the market to learn and evolve themselves in that particular skill as well.

Bibliography
 https://www.ibef.org/industry/fmcg.aspx
 http://www.aceanalyser.com/Analyser.aspx?MenuCode=C3
 https://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITC
 https://www.itcportal.com/
 https://www.screener.in/company/ITC/
 https://www.financialexpress.com/
 https://economictimes.indiatimes.com/itc-ltd/stocks/companyid-13554.cms
 https://www.imf.org/en/Home

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