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ITC's overview and its functioning
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ITC Limited is an Indian multinational conglomerate company headquartered in Kolkata, West Bengal.
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
"ITC Limited" was incorporated under the name 'Imperial Tobacco' which was later renamed as 'Imperial Tobacco Company of India Limited', succeeding W.D. & H.O. Willson 24 August 1910 as a British-owned company registered in Calcutta.[6] Since the company was largely based on agricultural resource, it ventured into partnerships in 1911 with farmers of southern part of India for sourcing leaf tobacco. Under the company's umbrella, the 'Indian Leaf Tobacco Development Company Limited' was formed in Guntur district of Andhra Pradesh in 1912. The first cigarette factory of the company was set up in 1913 at Bangalore. In 1918, leaf-buying points were created in southern India. ITC's cigarette factory at Munger was equipped with printing facility in 1925, paving way for its first non-tobacco business.
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, 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. More factories were set up in the following years for cigarette manufacturing across India.
In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta. ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to further strengthen its presence. ITC helped to set up indigenous cigarette tissue-paper-making plant in 1946 to significantly reduce the import costs and a factory for printing and packaging was set up at Madras in 1949. The Company acquired the manufacturing business of Tobacco Manufacturers (India) Limited and the complementary lithographic printing business of Printers (India) Limited in 1953.
Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym or an initialised form.
A Modest Beginning
The Company's beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks.
1925: Packaging and Printing: Backward Integration
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, 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.
1975: Entry into the Hospitality Sector - A 'Welcom' Move
The Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC- Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai). The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the Hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India under four brands namely, ITC Hotels - Luxury Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with an upcoming super premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-star 'WelcomHotel' brand and the mid-market to upscale 'Fortune' brand.
1979: Paperboards & Specialty Papers - Development of a Backward Area
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.
1985: Nepal Subsidiary - First Steps beyond National Borders
2000: Lifestyle Retailing - Premium Offerings
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Wills Signature', taking the event forward to consumers.
2000: Information Technology - Business Friendly Solutions
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India's fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics.
2001: Branded Packaged Foods - Delighting Millions of Households
ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad Atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC entered the fast growing branded snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast Yippee! to enter the Indian instant noodles market. In September 2014, ITC launched GumOn Chewing Gum marking the entry into the category of gums. The Company entered the Fruit-based
juices and beverages market with the launch of B Natural Fruit beverages in January 2015. ITC's forayed into the dairy segment with the launch of Aashirvaad Svasti Ghee in November
In just over a decade and a half, the Foods business has grown to a significant size under numerous distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.
2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep and Aim.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. Mangaldeep is a highly established national brand and is available across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood and 'Fragrance of Temple'.
2005: Personal Care Products - Expert Solutions for Discerning Consumers
ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza Di Wills', 'Fiama', 'Vivel' 'Superia' brands which have received encouraging consumer
ITC Limited is prevalently known as ITC and is an open organization of Indian beginnings. It is an aggregate and is related with a few enterprises like FMCG, Hotel and Services, Information and Technology, Agri-Business, Paperboards and Packaging. ITC was established in the year 1910 as Imperial Tobacco Company of India Limited however was renamed ITC constrained in the year 1974. It faces rivalry from the accompanying organizations
ITC has a diversified business portfolio and it includes-
ITC has been positioned as a standout amongst the best organizations on the planet with an accomplished and solid administration and circulation arrange. It is served by a productive workforce that incorporates administrations of in excess of 25,000 representatives before the year's over 2013. ITC has spread its system to almost sixty areas in most piece of India. Its central station base is at Kolkata in West Bengal.
Its items are accessible in numerous worldwide nations. The organization has set up tobacco business in Nepal through a joint endeavor. Assembling plants of its printing and bundling division are in Chennai and Haridwar. So as to move with evolving times, it began online deals from the year 2014. ITC has taken a solid activity titled e-Choupal model that has handled a few difficulties looked by ranchers effectively.
ITC has a working income of assessed rupees 15,037 crore toward the finish of the monetary year 2015 and incomes worth rupees 53,748 crores toward the finish of the money related year 2015-16. It has a few business interests and faces bunches of rivalry from opponent organizations. In addition, it has chosen to showcase its items in each niche and corner of India and subsequently has kept up both aggressive and entrance valuing approaches to manage contenders and to effectively spread its item reach to remotest parts in India.
ITC for its extravagant items like inn business has received a top notch valuing arrangement however for purchaser items, it has embraced a sensible estimating strategy as it perceives that most Indians have a place with white collar class segment of society and if the item costs are pocket inviting and moderate, it will help in making deals and at last will prompt better income figures.
ITC has a well-manufactured brand nearness on account of the broadened and expanded item portfolio. It has taken assistance of a few special exercises to showcase its items and make positive brand mindfulness. ITC has embraced a forceful advertising procedure and taken assistance of each special device like electronic, print and online life available to its to showcase its items. It has propelled a few advertisement battles which are appeared famous TV slots, disclosed on radio and showed through hoardings. It has likewise restricted in renowned identities for better perceivability like Kareena Kapoor and Shahrukh Khan.
