Comprehensive Analysis of

Corporate Strategies applied to

India Tobacco Company Limited

Team:
Anchita Prithani - H003
Anushka Arora - H004
Heer Kothari - H008
Tanushri Bamb -H027
Advaith Kumar - H042
Sanjiv Puri, ITC Devansh Goswami - H043
Chairman &
Managing Director
OVERVIEW OF ITC LIMITED
Established in 1910, ITC Limited is one of India’s foremost private sector companies and a leading diversified conglomerate.
Contribution to the Indian economy with a gross revenue of ₹69,446 crores
Net profit of ₹20,422 crores (as of March 31, 2024)【Source: ITC Annual Report 2024】.
ITC is ranked as India's most admired company by Fortune India, in collaboration with the Hay Group【Source: ITC Annual
Report 2024】.

THE ITC VISION THE ITC MISSION

Sustain ITC's position as one of To enhance the wealth
India's most valuable generating capability of the
corporations through world class enterprise in a globalising
performance, creating growing environment, delivering
value for the Indian economy and superior and sustainable
the Company's stakeholders stakeholder value

【Source: ITC Sustainability Report 2024】. 02

 ITC’S FMCG MARKET SHARE

OVERVIEW OF ITC LIMITED Cigarettes: Over 40% Savlon:

75-80% packaged
Aashirvaad atta 20-25%
FMCG perboards
Pa
ITC’S HOTEL MARKET

Significant player in India's luxury hotel

segment..
Pioneers in "Responsible Luxury" with LEED®
C hotels ackaging
IT P Platinum certification

ITC’S AGRI-BUSINESS MARKET

Core Business Activities
ITC operates across several One of India’s largest integrated agri-
key business verticals businesses.
e-Choupal: Connects over 4 million farmers
ri-Busines ITC’s FMCG segment Infotech Leaders of rural agri-supply chain
Ag s ITC
digitization.
contributed over 25% of
total revenues in 2022, ITC’S IT MARKET
showing rapid growth Niche expertise in: Banking
across personal care, & Financial Services,
food, and stationery. Healthcare, Manufacturing
and more.
PAPERBOARDS & PACKAGING

[Source: Own Analysis using ITC Annual Report 2022] Market leader with 50%+ market share in premium
paperboards in India. 03
[Source: ITC Sustainability Report 2024]
 ANSOFF’ PRODUCT-MARKET MATRIX STRATEGIES
ITC uses concentration strategies to focus on core businesses, primarily FMCG and Tobacco, through:

PRODUCT
PRESENT NEW
MARKET

PRESENT

1. [Source: Market Research Reports, ITC

NEW Annual Report 2022]
2. [Source: Nielsen FMCG Market Report,
2022]
3. [Source: ITC Global Market Strategy
Report]
04
Let’s Look at Our Portfolio, and Find out our Strategies :

OPTIONS

Market Market
01 02
penetration develoopment

Product Backward
03 04
development integration

Forward Quasi
05 06
Integration Integration

Quasi
07
Integration

Link to caselets :
https://www.canva.com/design/DAGSwwY5XdU/UREZFP03brpa5J3xVmbPFg/view? 07
[Source: Own Analysis using ITC Website, Youtube ITC stories ] utm_content=DAGSwwY5XdU&utm_campaign=share_your_design&utm_medium=lin
k&utm_source=shareyourdesignpanel
 FORWARD INTEGRATION

[Soucre: https://youtu.be/s8LIT7K1i4c?
si=zwE-RiKEojJ_y0AJ,
https://www.itcportal.com/media-
centre/press-reports-content.aspx?
id=1597&type=C&news=ITC-looks-at-
direct-supply-of-products-to-retail-
outlets ]

BACKWARD INTEGRATION
 INTEGRATION STRATEGIES

HORIZONTAL VERTICAL
ITC expanded into related
industries through internal
development and acquisitions
in packaged food (Aashirvaad)
and personal care (Fiama,
Vivel).
FORWARD BACKWARD
This allowed the company to ITC established direct retail channels, reducing ITC’s agribusiness ensures the supply of high-quality raw materials
achieve economies of scale, dependency on third-party retailers like wheat and paper pulp.
lower costs, and diversify its Strengthening the customer interface. Improving cost efficiency and product quality in its FMCG and
FMCG portfolio. Serves its own FMCG needs packaging segments.
[Source: ITC Annual Report 2022] Also, provides packaging solutions for other ITC's e-Choupal digital initiative directly connects with over 4 million
industries, contributing to revenue diversification. farmers to source agricultural produce, improving procurement
[Source: ITC Packaging Division Report, 2022] [Source: ITC Agribusiness Division Report, 2022]

QUASI TAPER
Partial Ownership: ITC holds stakes in related firms for long-term supply of key raw Partial Backward Integration (Packaging): ITC produces part of its packaging needs while sourcing
materials like wheat and spices. the rest from external vendors, optimizing costs and efficiency.
e-Choupal: Direct connection with 4 million farmers provides semi-formal Excess Production: Surplus packaging materials are sold to third parties, generating extra
ownership-like control over the agricultural supply chain. revenue.
Benefit: Ensures steady supply without full vertical ownership, sharing profits and Partial Forward Integration (Retail): ITC sells some products through its own outlets while relying
enhancing trust. on third-party retailers for broader distribution, balancing direct feedback with market reach.
[Source: ITC e-Choupal Agribusiness Report 2022] [Source: ITC Packaging and Paperboards Report 2022]
08
SUMMARY Segment
Growth/
Key Data & Statistics Strategic Concept Source
Strategy

Market Penetration: Deeper market

FMCG FMCG now contributes over ITC Annual Report
15% YoY growth reach via product diversification and
Growth 25% of total revenue. 2022
distribution expansion.

DATA ANALYSIS
ITC leads the Indian cigarette Market Development: Expansion into
Tobacco Nielsen Tobacco
77% market share market with a 77% share international markets with premium
Leadership Market Report 2022
despite regulations. products.

Backward Integration: e-Choupal

ITC Agribusiness
ITC is one of India’s largest initiative directly connects with farmers
Agri-Business Large exporter
exporters of wheat and rice. to secure raw materials for FMCG and
Division Report
2022
packaging.

7,50,000 TPA
Taper Integration: Partial vertical ITC Paperboards &
(Virgin Paper); Significant production capacity
Paperboards 1,20,000 TPA in virgin and recycled paper.
integration for in-house and outsourced Packaging Report
raw materials. 2022
(Recycled Boards)

Focus on sustainability and Forward Integration: Direct control of ITC Hotels

Leading luxury
Hotels chain
"Responsible Luxury" customer-facing hospitality services for Sustainability
approach. better market reach and brand loyalty. Report 2022 08

[Source: Summary, Own Analysis using companies FINANCIAL REPORTS]