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ITC Org Struct

- ITC Limited is an Indian conglomerate with a presence in cigarettes, hotels, paper, packaging, agri-business, food and beverages. It employs over 29,000 people across various divisions. - The company has diversified over time from cigarettes in 1910 to sectors like hotels in 1975, paperboard in 1979, agri-business in 1990, lifestyle retailing in 2000, and personal care in 2005. - ITC has a multidivisional organizational structure with each division as a profit center and its own support functions. Key divisions include tobacco, foods, retail, personal care, agri-business, hotels, and paper. - Some of ITC's social initiatives include e

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Aparna Sarojini
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4K views21 pages

ITC Org Struct

- ITC Limited is an Indian conglomerate with a presence in cigarettes, hotels, paper, packaging, agri-business, food and beverages. It employs over 29,000 people across various divisions. - The company has diversified over time from cigarettes in 1910 to sectors like hotels in 1975, paperboard in 1979, agri-business in 1990, lifestyle retailing in 2000, and personal care in 2005. - ITC has a multidivisional organizational structure with each division as a profit center and its own support functions. Key divisions include tobacco, foods, retail, personal care, agri-business, hotels, and paper. - Some of ITC's social initiatives include e

Uploaded by

Aparna Sarojini
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Organization Structure

By Aparna S

Introduction
ITC Limited is one of India's premier private sector companies

ITC's annual turnover stands at $7 billion and


market capitalization of over $45 billion.

It employs over 29,000 people at more than 60


locations across India.

Growth and Diversification


1910- Started with cigarette and leaf businesses 1925- Backward integration of Packaging and

Printing Business
1975- Launched Hotel Business 1979- Entered paperboard business 1985- set up Surya Nepal Private Limited which diversified into garment manufacturing and export.

Growth and diversification contd


1990- set up Agri Business Division 2000- started the e-Choupal initiative

2000- Entered Lifestyle Retailing Business


2000- Started ITC Infotech India Limited 2001- Entered into Food Business 2002- Launched Paperkraft 2003- Launched Classmate

Growth and diversification contd


2002- Started Safety Matches Business 2003- Launched Mangaldeep Agarbattis 2005- Entered the Personal Care Business 2010- Launched hand rolled cigar Armenteros

Organization Structure

Organizational Structure
Multidivisional Structure Each division is given its own set of support functions

Each division is its own profit center

Advantages:
Increased Organizational Effectiveness Clear definition of roles and responsibilities.

Board Committees
Audit Committee Compensation Committee Investor Services Committee Nominations Committee

Sustainability Committee

Divisions/SBUs
Indian Tobacco Division Foods Division

Lifestyle Retailing Business Division


Personal Care Products SBU Education and Stationery Products SBU

Matches and Agarbatti SBU


Hotels Division Paperboards and Specialty Papers Division

Packaging and Printing SBU


Agri Business Division Agri Business Division- ILTD

Information Technology Division

ITC Corporate Governance Framework Composition Roles


Executive chairman, Executive directors, Non-executive directors, Independent directors Board of directors Strategic supervision

Executive directors, Senior managers

Corporate management committee

Strategic management

Divisional / SBU head, Div. sr. manager

Divisional / SBU management committee

Executive management

Core Competencies
Unmatched Distribution Reach Superior Brand Building Capabilities Effective Supply Chain Management Acknowledged service skills in hoteliering

ITC SHARE HOLDING STRUCTURE


120 100 80 60 40 20 0

1950

1954

1970

1974

1976

1985

1993

2001 2005 2010

2011

Foreign company holding Foreign Institutional holding

Indian Institutional holding

Bottom Line Performance 2003-2012


7000

6000

5000

4000 Profit After Tax

3000

2000

1000

0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

ITC-Valuation
Segment Cigarettes Hotels Agri business Paper & packaging Other FMCG Cash Holding discount Total valuation Source: Morgan Stanley, February 2010 Segment valuation (in Rs. Cr) 103,704 2679 7271 11480 - 1913 3444 5% 120,541

Sustainability
E-Choupal - serve 40,000 villages and 4 million farmers - worlds largest rural digital infrastructure created by a private enterprise. Social and farm forestry - covered 100,000 hectares of land

Other Social Initiatives


Integrated watershed development program - covered 50,000 hectares of land

Micro credit program


- 20,000 women employed through micro enterprises and self employment Primary education initiatives in rural areas - benefited over 200,000 children Livestock up gradation initiatives - covered 400,000 animals resulted in improved milk yields Ecology oriented initiatives

ITC is the only company in the world of comparable dimensions to be carbon positive, water positive and solid waste recycling positive. Exemplar of triple bottom line performance.

Revenue and profits of different segments


Segment 2012 Revenue 23232.32 5563.72 1074.78 5695.31 4129.79 1020.87 40716.79 2011 Revenue 20721.27 4504.03 1066.47 4747.99 3666.88 777.71 35484.35 Increase in Sales revenue (%) 12.12 23.53 .78 19.95 12.62 31.27 14.75 2012 Profit 7191.24 (215.08) 294.29 643.15 936.78 93.64 8944.02 2011 Profit 6000.92 (331.52) 283.30 566.29 819.24 57.65 7395.88 Increase in Profit (%) 19.84 -35.12 3.53 13.57 14.35 62.42 20.93

FMCG-Cigarettes FMCG-Others Hotels Agri Business Paperboards, Paper and Packaging Others Total

Analysis
80.4% of the total segment profit is contributed by FMCG-cigarettes.

FMCG- others has not reached break-even yet.


But losses have come down by 35.12% 23.53% increase in sales revenue from FMCGothers. 20.93% increase in total segment profit.

Segment Revenue FMCG-Cigarettes


25000

CAGR=10.15%
20000

15000

Segment Revenue 10000

5000

0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

THANK YOU.

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