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UNDERSTANDING THE DISTRIBUTION SYSTEM OF I.T.C
AN COMPETITIVE ANALYSIS
Submitted for the partial fulfilment of the requirement for the award of
POST GRADUATE DIPLOMA IN MANAGEMENT
SUBMITTED BY:-
Shubham chaudhary
ROLL NO: - M2012104
UNDER THE GUIDENCE OF:-
SUBMITTED TO:-
Ms.Nidhi phutela
Asst. Professor
APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, GREATER
NOIDA (2012-14)
PREFACE
The PGDM AICTE (MBA) curriculum is so designed that we can get enough practical
knowledge of business world help them to explore their skills in corporate world in future.
The PGDM training helps us to understand and gain knowledge about the industry and the
market environment. It develops skills of analyzing and interpreting problems through
application of concepts and techniques of management.
I am lucky that, I got an opportunity for making the project report on “ITC Sun feast biscuit.”
I visited the various concerns for two months and I prepare my project report on the topic
“UNDERSTANDINGTHEDISTRIBUTION SYSTEM OF I.T.C AN COMPETITIVE
ANALYSIS..”
And the study is divided into various chapters to get knowledge. I also considered some
published material on the particular topic as well as about the concern. This helps me in
boosting up my confidence and determination which will help me to face the situation in
coming years. This report is written account of what I learnt and experienced during my
survey. I wish, those going through it will not only find it readable but also get as useful
information. The main limitation of my experience was that I did not get the full and correct
information from the market, as many of the respondents did not answer to my questionnaire
correctly and completely.
I did a project for ITC in Haridwar. The study consists of the following chapters. Introduction
of ITC, study on performance of Sunfeast biscuit in terms of their competitor, retailers and
customers perception, sales analysis, distribution, and conclusion etc.
ACKNOWLEDGEMENT
Life of human beings is full of interaction. No one is self-sufficient by himself whenever
anyone is doing some serious and important work a lot of help from the people concerned is
needed & one less specially obliged towards them. I cannot forget acknowledging them in
few words as without the guidance & co-ordination of them in my project report would not
have been possible.
A large number of individual contributed to this project. I am thankful to all of them for their
help and encouragement. My writing in the project report has also been influenced by a
number of website and standard textbooks. As for as possible, they have been fully
acknowledged at the appropriate place. I express my gratitude to all of them.
First of all I owe my heartfelt gratitude to my guide Prof. Ms. Nidhi phutela for his noble
guidance throughout the completion of the project.
I would like to extend my heartfelt thanks to Mr. Gaurav Mehandiratta, Asst. Manager of
ITC Pvt. Ltd., Saharanpur Branch for giving me an opportunity to work on this project.
I would also like to thanks Mr. Mukesh pandey , Area Manager of ITC Pvt. Ltd., Haridwar
for his guidance, inspiration, and constructive suggestions, which helped me in the project.
I must also thank the management of ITC Pvt. Ltd. to provide excellent opportunity and
environment to be able to pull my project through. Cooperation of the staff is also gratefully
acknowledged.
Last but not least, also give my sincere thanks to all the people to directly indirectly have help
and encourage me in finding the way to us collecting the requisite information and
completing the project effectively and timely.
Shubham chaudhary
AIT – School of Management, Greater Noida
DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “UNDERSTANDING THE
DISTRIBUTIONSYSTEM OF I.T.C AND COMPETITIVE ANALYSIS.” written and
submitted by me to the APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF
MANAGEMENT, Greater Noida in partial fulfilment of the requirements for the award of
PGDM (MBA) under the guidance of Ms. Nidhi Phutela is my original work and the
conclusions drawn therein are based on the material collected by myself.
SHUBHAM CHAUDHARY
PLACE: - HARIDWAR
Date:-
CERTIFICATE
This is to certify that the “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF I.T.C
AND COMPETITIVE ANALYSIS.”is the bonafide project work done by Shubham
chaudhary student of Apeejay Institute of Technology – School of Management, Greater
Noida during the Summer Internship Training, in partial fulfilment of the requirements for
the award of the Degree of “Post Graduate Diploma in Management” and that the project has
not formed the basis for the award previously of any degree, diploma, fellowship or any
similar title. To the best of my knowledge and belief the project represents independent and
original work on the part of candidate under my guidance.
Name and Signature of Mentor
Name and Signature of Director
INDEX
Contents Page No
Chapter- 1:- Introduction & Profile of the organization 01
ITC PROFILE 08
HISTORY OF ITC 10
ORGANIZATIONAL STRUCTURE 24
AREA OF DIVERSIFICATION 25
SUNFEAST PROFILE 31
Chapter-2:-
HOW ITC TURNED BUSCUITS BUSINESS
DISTRIBUTION SYSRTM OF I.T.C
35
40
Chapter-3:-
Objective of the study 43
Scope of the study 45
Limitation of the study 46
Chapter- 4:-
Chapter- 5:-
Major Competitors of sunfeast biscuit
Research methodology and design
47
55
Chapter- 6:- Data presentation, Analysis, and interpretation 58
Chapter- 7:- suggestions and swot 71
Chapter-8:- Bibliography 80
Chapter-9:- Annexure 82
CHAPTER- 1
Distribution system of I.T.C
CHAPTER- 2
INTRODUCTION
Shubham chaudhary project
INTRODUCTION
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianised, 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. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes &
Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-
business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full
stops in the Company's name were removed effective September 18, 2001. The Company
now stands rechristened 'ITC Limited'.
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.
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'. 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.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. 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.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
Since inception, its shares have been held by ITC, British American Tobacco and various
independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of
ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company
and a major supplier of tissue paper to the cigarette industry. The merged entity was named
the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was
merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty
Papers Division in November 2002.
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. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000
with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million
farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at
Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of
Madhya Pradesh, Maharashtra and Uttar Pradesh.
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. To augment its offering and to reach a wider
student population, the popular range of notebooks was launched under brand “Classmate” in
2003. “Classmate” over the years has grown to become India‟s largest notebook brand and
has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009
saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under
the “Classmate” brand. In 2008, ITC repositioned the business as the Education and
Stationery Products Business and launched India's first environment friendly premium
business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the
premium executive stationery and office consumables segment. Paperkraft entered new
categories in the office consumable segment with the launch of Textliners, Permanent Ink
Markers and White Board Markers in 2009.
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). ITC also initiated a foray into the popular segment with its men's wear
brand, John Players, in 2002. 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 'Celebration Series', taking
the event forward to consumers.
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 - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R
(Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and
Media & Entertainment.
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 Aashirvaadatta (wheat flour). 2003 witnessed the
introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast
growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has
grown to a significant size with over 200 differentiated products under six distinctive brands,
with an enviable distribution reach, a rapidly growing market share and a solid market
standing.
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 matchesbrands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands
include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Madhur, Sambrani and Nagchampa.
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di
Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio
Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class
products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of
Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively.
The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market
segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in
February and Vivel range of shampoos in June 2008.
Shubham chaudhary project
ITC PROFILE
ITC is one of India's foremost private sector companies with a market capitalization of nearly
US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best
Big Companies, Asia's 'Feb. 50' and the World's Most Reputable Companies by Forbes
magazine, among India's Most Respected Companies by Business World and among India's
Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most
Valuable (Company) Brands', in a study conducted by Brand Finance and published by the
Economic Times.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,
Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.
While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels,
Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its
nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and
Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words. "ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its
businesses towards international competitiveness but by also consciously contributing to
enhancing the competitiveness of the larger value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering. Over time, the strategic forays into new
businesses are expected to garner a significant share of these emerging high-growth markets
in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of
the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The
Company's 'e-Chou pal' initiative is enabling Indian agriculture significantly enhance its
competitiveness by empowering Indian farmers through the power of the Internet. This
transformational strategy, which has already become the subject matter of a case study at
Harvard Business School, is expected to progressively create for ITC a huge rural distribution
infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including
e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international awards
for quality, productivity, safety and environment management systems. ITC was the first
company in India to voluntarily seek a corporate governance rating.
ITC employs over 25,000 people at more than 60 locations across India. The Company
continuously endeavors to enhance its wealth generating capabilities in a globalizing
environment to consistently reward more than 3, 68,000 shareholders, fulfil the aspirations of
its stakeholders and meet societal expectations. This over-arching vision of the company is
expressively captured in its corporate positioning statement: "Enduring Value. For the nation
For the Shareholder.
Company History – ITC
1910
- On 24th August the Company was incorporated as a Private Limited Company under the
name, Imperial Tobacco Co. of IndiaLtd. The Company manufacture and distribute
cigarettes and smoking tobaccos and specialty papers including cigarette issue papers (Sole
manufacturer in the country).
1953
- The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd.,
and the Complementary Lithographic Printing business of Printers (India) Ltd.
1954
- The Company was converted into a Public Limited Company on 27th October.
1970
- The name of the Company was changed from the Imperial Tobacco Co of India Ltd., to
India Tobacco Co. Ltd., in May.
1972
- On October Company entered into hotel business.
1973
- Company received the approval of Govt. for setting up three Processing plants.
1974
- On 1st April name again changed to I T C Ltd.
1975
- ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd.
(UK).
1979
The name of the Company's chain of hotels was changed from Welcome Hotels to
Welcomgroup. The company entered into a Marketing Service and Reservations Agreement
with the Sheration International Incorporated which was sanctioned by Govt. on 27th
January.
1983
- A new Company under the name Gujarat Hotels was incorporated under a joint venture
agreement signed between the Company and Gujarat Industrial Investment Corporation. This
Co. had set up a 144-room hotel at Vadodara known as Welcome group Vadodara.
1987
- New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced. Long-
term agreements were entered into with the unions of factories located at Calcutta,
Saharanpur and Munger. In Bangalore, however, working was affected by a strike for 114
days.
1988
- In May the company formed a new division called Agribusiness Division for carrying out
research and development on production and distribution of high yielding cultivars with
emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and export of
agricultural produce.
- A Memorandum of Understanding was signed with the authorities to open an Indian
restaurant in Odessa, U.S.S.R.
- Different varieties of oilseeds under the brand name of ADARSH and cooking oil under
SUNDROP were launched.
- New investments were made in water and bulk liquid packaging project. The Company
explored the possibility of setting up a new software development centre in India with ability
to access Company's customers' computers abroad through data communication Links.
- A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.) (ILTD)
consisted of its operations in India where it operated as a sister concern of the Company.
ILTD was a pioneer in introducing Virginia tobacco to India and over the year, developed
into a highly efficient enterprise, besides being a very large exporter of tobacco. The
Company purchases, with effect from 1st April, 1975, the net assets in India of ILTD
whereupon it became a division of the Company.
1990
- Refined mustard oil under the brand name REAL GOLD was introduced in the market.
- On 1st April Tribeni Tissues Ltd was amalgamated with the Co.
1992
- Since January there was labour unrest at Tribeni Tissues papermill which led to a lockout at
the mill with effect from 27thMay.
- On 8th April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a wholly
owned trading subsidiary of the Company.
- During the same period a wholly owned subsidiary ITC InfoTech Ltd. Incorporated in UK
with an authorised capital of US $ 2million and paid up capital of US lakh.
1993
- The Company successfully launched Hero brand Cigarettes.
- Two new brands viz., `Classic Milds' and `Hero' were launched at the premium and small-
length ends respectively.
1995
- Company introduced CAPSTAN Menthol filter, CAPSTAN standard and Bristo standard
and re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in King-
size was Introduced into test markets.
1996
- The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brands during
the year.
1997
- ITC Classic Finance Ltd. was amalgamated with ICICI Ltd.
1998
- ITC has nearly 105 subsidiaries, which are involved in various kinds of operations.
1999
- Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITC
Bhadrachalam Paperboards, from 37% to 51% through a preferential allotment of equity
shares. This follow the allotment, by the board of ITC Bhadrachalam Paperboards, of
1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per share
and 11% redeemable cumulative-preference shares of the face value of Rs100 each, for cash,
at par to promoter company ITC.
- ITC will set up a new tobacco processing department (TPD) because the increased
production will make it economical toprocess tobacco on site.
- The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National Quality
award for 1995.
2000
- ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, and Compaq
Computer (I) Pvt. Ltd. signed an MoU aimed at exploring business opportunities for
deploying e-enabled solutions.
- The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to make
a beginning in agricultural e-trade.
- ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part
of its diversification strategy into new areas.
- The Company is hiving off its Infotech services businesses in India, the US and UK and
merging them into a separate wholly-owned subsidiary.
- The IT division has entered into agreements with Compaq and expand the IT business.
- The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for
the greeting cards business was set up under the Packaging and Printing Division.
- ITC has launched Wills Sport, a full range of internationally styled premium wear for men
and women.
- Tobacco Company ITC launched a website, billed as `one stop terminus' for international
customers of agricultural commodities. The website, WWW.itcibd.com, will provide
information on trading of key commodities.
- The Company have set up units in the north-eastern States to avail of special incentives
relating to Central excise duties.
- On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the
company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effective from
12th July.
- The Board of the company has recommended an employee stock option scheme.
-Having carved a niche for itself by launching the first branded lifestyle apparel, Wills Sport,
in Delhi in July 2000, the Lifestyle Retailing Business Division of ITC Limited has now big
plans up its sleeve.
2002
- ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian atta
market.
- ITC's greetings cards business and Maple Leaf have entered into Joint Venture where
Maple Leaf will exclusively manufacture pop-up cards for ITC.
- ITC Foods and ITC Ltd, is finally foraying its way to the Rs 1,100 crore confectionery
market. The foods division which has shifted office from Kolkata to Bangalore this month
has introduced its first confectionery product, acquired brand Minto in four cities. -ITC
Greeting Cards Business (ITC-GCB), has forayed into stationery products segment with the
launch of Expressions PaperKraft.
-ITC Limited has taken over Wills brand. ITC had to acquire the Wills brand in the US,
before it takes Wills merchandise to America.
-ITC, now moves towards match business, it has diversified into the match business to earn
more revenues from non-tobacco businesses.
2003
-ITC Ltd has informed to BSE that company's Spriha brand of natural incense sticks
(Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo Udyog Trust in
Pondicherry was launched on February 21, 2003.
-ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs 500
crore sales in five years. Salt is the second offering from ITC Foods' staple business in the
past 10months, under the brand name of 'Aashirvaad'.
-Commences commercial production of paper using the environment-friendly ECF
(elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh -Food
wing of ITC eyes on 4 pc market share in biscuit market -ITC unveils new brand of agarbattis
2004
-ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine brand
Kitchens of India and ready meal Aashirwad brand
-Completes the process of acquiring the paperboard manufacturing facility of BILT
Industrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility, renamed
'unit Kovai', will operate as part of the paperboards and specialty papers division of ITC,
which has a unit at Bhadrachalam in Andhra Pradesh.
-ITC unveils Sunfeast biscuits in Chennai
- ITC ties up with Israeli firm for e-channel.
2005
- ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality
Management System certification ISO 9001:2000 for investor servicing.
- ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility (CSR)
in Emerging Economies for 2005'.
- ITC Ltd signs MoU with Tripura Government for a bamboo development programme.
- ITC unveils new `5-in-1' agarbattis -ITC
unveils `Expressions Regalia'
-ITC e-Choupal gets Development Gateway Award-
ITC unveils Candyman Cofitino
2006
-ITC forges alliance with Tilda for DNA-tested basmati -ITC ties-up with Marubeni for food
biz
2007
- ITCLtd. Has informed that the Board of Directors of the Company at the meeting held on
July 27, 2007, appointed :
(i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating the
Specified Undertaking of the Unit Trust of India (SUUTI),
(ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC) as an
Additional Director of the Company,representing LIC,
(iii) Dr. R. K. Kaul, General Manager - National Insurance Company Limited, as an
Additional Director of the Company, representing General Insurers' (Public Sector)
Association of India,
(iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of the
Company, and
(v) Mr. S. B. Mathur, as an Additional Non-Executive Independent Director of the Comp.
- ITC acquires Australian agri-biotech co.
2008
ITC Infotech signs partnership agreement with ADAM Software
ITC InfoTech, a global IT services company and a fully owned subsidiary of ITC Ltd., today
signed a partnership agreement with ADAM Software, a leading Digital Asset Management
company.
ITC Infotech will provide services around ADAM Software‟s Digital Asset Management
(DAM) platform. ITC Infotech services will include information architecture modelling and
design, ADAM implementation and support, integration with enterprise applications such as
portals; rights management etc, digital asset descriptive metadata cataloguing and Web 2.0
based portal development services. With in-depth understanding of how media supply chain
works, ITC Infotech is well placed to publish and distribute quality content.
ITC launches eco-friendly "Paperkraft Premium Business Paper
ITC recently launched "Paperkraft Premium Business Paper", an environment friendly paper
which has been crafted by ITC using a pioneering technology, which is first of its kind in
India called "Ozone Treated Elemental Chlorine Free technology".
Paperkraft is a superior and environmentally friendly, multipurpose paper for office and
home use, which lets you exercise your power to "Go Green". This unique product is an
integral part of ITC‟s significant initiatives to augment natural and scare resources and has
been launched in line with ITC‟s triple bottom line commitment to building economic,
environmental and social capital for the nation.
Yet another addition in ITC‟s wide array of differentiated FMCG products, Paperkraft
Premium Business Paper has been created by ITC to provide consumers an opportunity to
partner in our efforts to mitigate the adverse impact of climate change and create a positive
environmental footprint. In terms of quality, Paperkraft offers a superior value proposition
since it is the whitest and brightest 75 GSM business paper manufactured in India. A
proprietary chemical treatment has enabled it to become an eco- friendly paper with a higher
archival life.
2009
ITC‟s Hotel Royal Gardenia becomes the world‟s largest LEED Platinum rated Green Hotel -
- first Hotel in India to achieve this recognition
ITC‟s new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia was conferred the
highest rating for green buildings in the world – the LEED India Platinum Rating. This
recognition makes it the world‟s largest platinum rated hotel and is yet another manifestation
of ITC‟s leadership in Sustainability Practices. ITC is the only company in the world to be
carbon positive, water positive and solid waste recycling positive.
The LEED Platinum Rating for the ITC Hotel is one greener milestone close on the heels of
the ITC Green Centre in Gurgaon which was the world‟s first largest green building. This
Centre was chosen by the US Secretary of State Hillary Clinton to announce her vision on
Indo-US collaboration on Climate Change during her last visit to India. After a tour of the
building she called it the “Monument to the Future”. ITC‟s exemplary commitments to green
practices have also enabled its hotel in Kolkata – the ITC Hotel Sonar to be the only hotel in
the world to earn carbon credits. In keeping with the ITC Commitment to the “Triple
Bottomline” philosophy, ITC Hotels has aspired to be an „exemplar‟ in the service sector and
truly provides leadership to positive environmental action in a sustainable manner.
The ITC Royal Gardenia is an inclusive blend of contemporary design and international
green practices, a beacon in a bustling urban environment. Built on the ethos of “Responsible
Luxury” the hotel has adopted contemporary „Green Practices‟ that harness the element of
nature in an inspired setting to deliver unique guest experiences.
According to Chief Executive, ITC Hotels Division, Nakul Anand, “The ITC Royal Gardenia
exemplifies ITC‟s vision and is perhaps the perfect example of finding common rhythm
between manmade and natural environment. The challenge was to see how luxury and
responsibility could be in harmony together. Thus a series of sustainable measures and
practices were embraced to ensure that elements of nature were effectively harnessed at every
level inside the luxury hotel”.
ITC creates mobile version of Corporate Website
ITC is among the first Indian companies to launch a mobile version of its Corporate Website
-www.itcportal.mobi This unique endeavour by ITC, aims to enhance stakeholder
engagement by leveraging multiple channels of communication that can deliver maximum
value to Internet users.
With the increasing reach of mobile phones in India and Internet navigation rapidly becoming
a common feature on majority of cell phones, the mobile version of ITC‟s corporate website
will offer convenience of accessing information instantly and a superior surfing experience.
www.itcportal.mobi can now be accessed by millions of active mobile Internet users in the
country and abroad. Optimized for fast download, the easy-to-navigate website is designed
for any mobile that supports WAP2.0 and has a screen resolution of 320 x240 pixels.
This new initiative from ITC will not only make information search easier and relevant for
the mobile internet user but will also enable proactive engagement with stakeholders by
reaching out to them with news alerts, product and service offers. The launch of the mobile
version is a strategic shift from an existing information-providing format to a proactive
communication mode that is more meaningful in today‟s environment of rapidly evolving
communication technologies.
ITC Infotech launches services for seamless migration to Windows 7 in partnership with
Microsoft
ITC Infotech, a global IT services company and fully owned subsidiary of ITC Ltd., has
launched services to help customers migrate seamlessly to the latest Windows 7. The
company has partnered with Microsoft to offer services around Microsoft‟s Application
Compatibility Framework (ACF).
Mr. Jake Braly, Group Manager – US BMO, Microsoft, said, “ITC Infotech has been a
valued partner in the Application Compatibility PoC Program since May 2009.”
ITC Infotech has developed a methodology to help customers mitigate application issues
around Windows 7, through Microsoft‟s proven ACF framework. In association with
Microsoft, ITC Infotech will work with customers in resolving compatibility issues. Some of
the key business benefits of the ACF include packaged assessment, enablement through
technical training and remediation of business critical applications.
2010
ITC‟s Fiama Di Wills unveils the new Anti Hair Fall Shampoo
The Mantra to feel young!
After storming the market with the innovative transparent gel bathing bars which won the
„Product of the Year‟ award recently, Fiama Di Wills, ITC‟s personal care brand, has
launched yet another innovative product for its consumers - The Anti – Hairfall Shampoo
& Conditioner, in Chennai today. The new variant was unveiled by the glamorous Brand
Ambassador Deepika Padukone at a high decibel launch event. The new anti -
hairfall Shampoo combines the goodness of Nature and Science that ensures gentle
care while fighting hairfall effectively. Fiama Di Wills Anti Hairfall Shampoo
promises reduced hairfall due to breakage in just three washes. The shampoo has been
launched in Tamil Nadu and will soon be extended to more markets.
The Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of
Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair
restore Technology. Brazil nut, is known to seal in hair moisture giving it shine and a silky
smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology,
developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer
to reduce further damage. This strengthens hair and reduces hair fall due to
breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the
hair restore technology gives best results when used with Fiama Di Wills Anti-Hairfall
Shampoo.
Atul Joshi, Head of Marketing, Personal Care Products Business, ITC Limited, said “Hair
Fall is a serious concern for everyone and also has a severe impact on the individual‟s psyche
as it adds years to one‟s appearance. We are glad to present a different Anti Hairfall
Shampoo that has been developed through extensive research at our R&D centre to formulate
the innovative Hair Restore Technology. We are confident that consumers will definitely like
the experience of the combined goodness of the exotic Brazil Nut and the Hair
Restore Technology to give them the mantra to feel young! I urge the consumers to try our
product and experience the difference. “
Deepika Padukone, Brand Ambassador for Fiama Di Wills said, “I am delighted to announce
the launch of the new Fiama Di Wills Anti Hair Fall Shampoo & Conditioner here in
Chennai. The range has grown to introduce variety of solutions for every kind of hair
and address a wide range of hair problems. I have been using Fiama Di Wills‟s products
since its inception and can confidently say that they are true to their promise. Beautiful hair is
every woman‟s dream and the new shampoo with the goodness of Brazil Nut and Hair
Restore Technology is designed to provide an answer to hairfall.”
ITC Infotech Achieves Platinum Partner status in the Oracle(R) PartnerNetwork
ITC Infotech, a global IT services & Solutions Company and a fully owned subsidiary of
ITC Ltd., has achieved 'Platinum Partner' status as part of the Oracle Partner Network (OPN)
program. This prestigious recognition as a platinum partner is an acknowledgment of the
expertise and excellence in ITC Infotech‟s superior and differentiated capabilities across the
entire suite of Oracle solutions.
Mr. Tyler Prince, Group Vice President, North America Sales, Applications and Public
Sector Alliances and Channels, Oracle, said, "The Oracle Partner Network program
acknowledges partners that demonstrates excellence in helping our mutual customers reach
their full business potential. We are happy to provide ITC Infotech with this distinction in
recognition of their efforts towards administering diverse Oracle platforms and applications
across global IT business environments. We look forward to engaging with ITC Infotech
across a variety of industries to provide cutting-edge solutions."
ITC completes 100 years
Kolkata: ITC completed a 100 years on the 24th of August, 2010. A glorious moment in
its history, the occasion was marked by celebrations across all its offices and facilities in
India, with Company flag-hoisting ceremonies to commemorate and pay homage to the
spirit of the institution.
At a special Centenary event, in Kolkata, Chairman Mr. Y C Deveshwar, addressing a
29,000 strong audience of employees across the country through a webcast, said that:
"Innovation should be a source for creating consumer delight as well as triple bottom line
performance so as to generate greater value for the shareholder and the society. Value
creation for the Indian society is best achieved by creating sustainable livelihoods and
replenishing natural capital." Emphasising on the need for competitive vitality, Chairman
Mr Deveshwar underscored the need to leverage knowledge resident across diverse
businesses in its world class human resources to create "Champion Teams" that would
continuously innovate to deliver competitively superior customer value. He reiterated his
firm belief that the unique amalgam of ITC‟s Vision, Values and Vitality has ensured that
the Company is „Future-ready‟
ITC Hotels becomes the greenest luxury hotel chain in the world
- All ITC’s luxury hotels are now LEED® Platinum rated -
All ITC‟s luxury hotels have been accorded the highest rating: LEED Platinum (Leadership
in Energy and Environmental Design) making it the „greenest luxury hotel chain in the
world‟. This distinction is an endorsement of ITC Hotels‟ credo of „Responsible Luxury‟ - an
ethos that integrates world class green best practices with contemporary design elements to
deliver the best of luxury in the greenest possible manner. The Responsible Luxury
commitment of ITC Hotels blends elements of nature to deliver a unique value proposition to
discerning guests, conscious of their responsibility to be planet positive.
In addition to the wide spectrum of environment friendly measures that ITC Hotels
implement, the ITC group‟s carbon positive, water positive and solid waste recycling positive
status ensures that a guest‟s stay at any of its luxury hotels contributes to a lower carbon
footprint.
ITC Hotels‟ commitment to Responsible Luxury has given it the unique distinction of being
the greenest luxury hospitality chain in the world. Today, all „ITC Hotels‟- ITC Maurya, New
Delhi; ITC Maratha; Mumbai; ITC Grand Central, Mumbai; ITC Sonar, Kolkata; ITC
Windsor, Bengaluru; *ITC Gardenia, Bengaluru; ITC Kakatiya, Hyderabad and ITC
Mughal, Agra are rated LEED Platinum by the U.S. Green Building Council (USGBC), for
their commitment to perform to the highest standards of energy, water and waste efficiency
and continuing to provide inspiration to the Green Building movement in India. (*Rated
LEED Platinum by Indian Green Building Council-IGBC)
Commenting on the distinction, Nakul Anand, Executive Director, ITC Ltd. said, “This
coveted feat uniquely positions ITC as the first hotel chain in the world to have all its
premium luxury hotels accorded the highest rating: LEED Platinum by USGBC. It
exemplifies the credo of „Responsible Luxury‟ adopted by ITC‟s Hotels Division – delivering
globally benchmarked quality, services and luxury in the greenest possible manner.”
2011
Government of India honours ITC Hotels with „Best Employer‟ National Award for
Empowerment of Persons with Disabilities
The Government of India, Ministry of Social Justice and Empowerment has conferred ITC
Hotels with the 2011„Best Employer‟ National Award for Empowerment of Persons with
Disabilities. The award was presented by Minister of Social Justice and Empowerment, Shri
Mukul Wasnik, in recognition of ITC‟s philosophy of an „equal opportunities‟ employer in
keeping with its policy to ensure respect for Human‟s Rights and Prevention of
Discrimination at Workplace. Dipak Haksar, Chief Operating Officer, ITC Hotels received
the award at a ceremony held at Vigyan Bhawan in New Delhi on December 3, 2011.
ITC Hotels‟ human resources approach, in keeping with ITC‟s core values, promotes
diversity and offers equality of opportunity to all employees fostering meritocracy in the
organisation. It acknowledges that every individual brings a different and unique set of
perspectives and capabilities to the team. A discrimination-free workplace for employees
provides the environment in which diverse talents can bloom and be nurtured. This is
achieved by ensuring that a non-discrimination policy and practice is embedded across the
Company in line with corporate principles and benchmarked business practices.
2012
AIMA confers the Business Leader of the Year Award on Mr Y C Deveshwar, Chairman ITC
For over 5 million people, many of whom represent the poorest in Rural India. His vision to
make ITC a global exemplar in Sustainability practices has led ITC to become the only
company in the world, of comparable size to be „carbon positive‟, „water positive‟ and „solid
waste recycling positive‟. Mr Deveshwar's commitment to put Country before Corporation
has not only inspired innovative business models that contribute meaningfully to societal
development, but has also led to the creation of world-class Indian brands across ITC's
businesses.
Earlier, Mr Deveshwar was honoured with one of the highest civilian awards- the Padma
Bhushan by the Government of India in 2011. Amongst several other awards and
recognitions during his distinguished career, he has also been honoured with the Global
Leadership Award by the US-India Business Council of the US Chamber of The All India
Management Association (AIMA), India's apex body of professional management today
conferred its Business Leader of the Year Award on Mr Y C Deveshwar, Chairman, ITC
Limited at a function held this evening in New Delhi to commemorate the AIMA Managing
India Awards 2012.
Fiama Di Wills Men pioneers a new trend
Unveils the Fiama Di Wills Men website in a first-of-its-kind web debut in India
„”Innovation” is the foundation of all initiatives at Fiama Di Wills leading to creation of
innovative products and engaging brand experiences. It manifests in ITC‟s leading personal
care brand Fiama Di Wills continuous strives to create hallmarks of consumer trust through
its range of unique bath care products and brand experiences.
ITC in Saharanpur
ORGANIATION STRUCTURE
Branch Manager
ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER
(FOOD) (PCP) (CIGARATTE)
AM AM AM (AREA MANAGER)
AE AE AE (AREA EXECUTIVE)
Area of diversification
ITC has transformed itself from a leading cigarette manufacturer to an umbrella group that
offers a diversified product mix to enhance its brand image and reduce dependency on
tobacco related products. It has forayed into the hospitality service industry and has become a
major player in the hotels segment. Its position in the FMCG (fast moving consumer
goods) business is also on a growth curve; especially its confectionery and biscuits
which are slated to achieve the top ranks among its peers. It has made heavy investments to
strengthen its IT (information technology) segment and to compete with the big players
like Infosys and Wipro. Although the ITC group is marketing its image as an ideal
corporate citizen and a company that takes its social responsibility seriously, it still earns
80% of revenues from selling cigarettes and other tobacco related products. The major areas
in which ITC has diversified are:
FMCG
Cigarettes
Food
Lifestyle Retailing
Greetings and stationer
Safety Matches
Incense sticks
Hotels
Paperboards and Packaging
Paperboards and specialty paper packaging
Agri-Business
Agri- exports
E- choupal
Information Technology
ITC in FMCG Sector
Cigarettes:-
ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a
leadership position in every segment of the market. It's highly popular portfolio of brands
includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, NavyCut, Scissors, Capstan,
Berkeley, Bristol and Flake.
The Company has been able to build on its leadership position because of its single
minded focus on value creation for the consumer through significant investments in product
design, innovation, manufacturing technology, quality, marketing and distribution.
The Company has been able to build on its leadership position because of its single
minded focus on value creation for the consumer through significant investments in product
design, innovation, manufacturing technology, quality, marketing and distribution. All
initiatives are therefore worked upon with the intent to fortify market standing in the long term.
This in turns aids in designing products which are contemporary and relevant to the changing
attitudes and evolving socio economic profile of the country. This strategic focus on the
consumer has paid ITC handsome dividends. ITC‟s pursuit of international competitiveness
is reflected in its initiatives in the overseas markets. In the extremely competitive US market.
ITC offers high quality, value- priced cigarettes and Roll- your- won solutions. In west
Asia,ITC has become a key player in the GCC markets through growing volumesofitsbrands.
ITC‟s cigarettes are produced in its state-of-the-art factories at Bengaluru, munger, Saharanpur
and Kolkata. These factories are known for their high level of quality, contemporary technology
and work environment.
Foods
Ready to Eat:
Keeping alive long forgotten culinary traditions, „Kitchens of India‟ presents its range of
ready-to-eat cuisines. Each one of these legendary delicacies has been created by Master
Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the
ages, from one generation to the next
Bukhara
Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia and Europe.
It was also a spot on the fabled Silk Route, a passage commonly used by traders, scholars and
nomads. It was on this route that the unique Bukhara style of cooking was born.
The Master Chefs of ITC Hotels have whipped up the delectable bite into history with this
cuisine from the North-West Frontier Province with a masterpiece like dal Bukhara.
Dal Bukhara
Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered with
prized indian spices over a coal fire, for long hours on end.
Sunfeast (Biscuits)
In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and
Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes happiness,
contentment, satisfaction, and pleasure. The mascot sunny reinforces the emotional aspects of
the brand. In span of 6 year sunfeast has launched many new variants and has its presence in
almost all types of biscuit categories.
Sunfeast immediately established itself as a provider of innovative and distinctive products -
Sunfeast Marie was launched in an innovative orange flavour and the 'Sunfeast Dream
Cream‟ range includes new flavours as well as flavour enhancers. The Sunfeast Dream
Cream range is currently available in 8 variants. The Company has also introduced
„Sunfeast Dark Fantasy', a dark chocolate and vanilla cream offering for the premium
segment in select markets.
Riding on the success of its initial offering, ITC also entered the milk biscuit category with
Sunfeast milk magic biscuit. Apart from milk which helps mental growth, these biscuit also
contain the finest quality wheat adding physical growth.
In the last two years, the Sunfeast biscuits portfolio has been enhanced to include salted
crackers and cookies. The 'Sun feast Snack' salted crackers are available in 2 unique variants
– „Chilli Flakes‟ and „Classic Salted‟. Sunfeast's latest offering, 'Sunfeast Special‟
biscuits are also available in select markets. The Sunfeast Special range currently includes
cookies in two variants– Butter and Cashew, as well as cream biscuits in two variants –
Choco and Orange. The sunfeast product portfolio has been further expanded to include
healthy snacks option. Sunfeast pasta treat is whole wheat based instant pasta for children
After a tremendous success of the 4 initial flavours, the instant pasta range has been expended
with two new exciting flavours – pizza, and chicken. The pasta segment was further
expanded with the launch of sunfeast benne vita in 4 innovative variants.
Confectionary:-
ITC currently has two brands in the confectionery segment - 'mint-o' and 'Candy man'. '
Mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the compressed
mint offering, across all major markets in India, with new and improved product
and packaging. Available in the regular mint flavour with added blue specks to enhance
consumer experience, mint-o is also offered in innovative 'Orange mint' and 'Lemon mint'
flavours. 'mint-o' is available in two sizes – rolls of 20 and 6, capturing the international
essence of „youthful cool‟ ITC launched the 'Candy man' range of confectioneries in August
2002. Led by the 'Candy man Fruitee Fun' range of assorted fruit flavours ('Wild Banana',
'Pineapple Punch', 'Orange Josh' and 'Mango Delite'), the 'Candy man' portfolio now
includes deposited candy products like 'Candy man Butterscotch Licks' and 'Candyman
Éclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch
outer shell). The coffee toffee segment also saw the successful launch of 'Candyman
Cofitino' in November 2005. Two new products – 'Candyman Natkhat Mango' and
'Candyman Maha Mango' were launched recently. The 'Candyman' range of confectionery is
targeted at „fun-filled, naughty kids‟ who seek a delightful candy experience through a
range of candy types and flavours.
Bingo!
ITC's new snacks brand Bingo! Marks the company's foray into the fast growing branded
snacks segment. The launch of Bingo! Represent ITC fifth major line of foods business after
highly successful staples, biscuit, Ready to eat and confectionary business. The launch of
Bingo! is symbolic of ITCs' distinct approach of introducing innovative and differentiated
products in a largely undifferentiated market place.
The initial offerings from Bingo! include an array of products in both Potato Chips & Finger
Snacks segment. The Potato Chips offerings comprise four innovative variants inspired by
the snacking habits of different parts of the country as well as masala, salted and tomoto
flavors.Additionally, a south- inspired dairy option has also been introduced under the potato
chips offering.
ITC in Agricultural Industry
ITC's International Business Division (IBD) is the country's second largest exporter of
agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales
of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on
exports of :
Feed Ingredients- Soyameal
Foodgrains – Rice (Basmati & Non basmati), wheat, pulses
Edible Nuts – sesame seeds, HPS Groundnuts, castor oil
Marine products – Shrimps and prawns
Processed fruits – Fruit purees/ concentrates, IQF/Frozen fruit, organic fruit, Fresh fruits
Coffee & Spices – coffee, Black pepper, Chilly, Turmeric, Ginger, Celery, and other seed
spices.
Although one of the relatively younger business divisions of ITC, it has, in a short span
established itself as a first-choice supply chain partner of several leading international
customers. Its major customers include Cargill, marubeni, Toepfer, among others, who source
agriculture commodities and food products from India. Its customer relationship management
has enabled it to achieve a very high reputation for quality, reliability and value added
services.
ITC's unique strength in this business is the extensive backward linkages it has
established with the farmers. This networking with the farming community has enabled ITC
to build a highly cost effective procurement system. ITC has made significant investments in
web-enabling the Indian farmer. Christened 'e-Choupal', ITC's web plan for the farmer
centres around providing internet kiosks in villages. Farmer use this technology infrastructure
to access on- line information from ITC‟s farmer friendly website. Data access by the farmers
related to the weather, crop condition, best practices in farming, ruling international prices
and a host of other relevant information.
Currently, the 'e-Choupal' website - www.echoupal.com - provides information to farmers
across the nine States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan,
Karnataka, Maharashtra, Andhra Pradesh and Kerala. ITC plans to extend the 'e-Choupal' to
cover 10 million farmers across 100,000 villages covering 15 Indian states. ITC‟s
International Business Division, one of India‟s largest exporters of agricultural commodities,
has conceived e-Choupal as a more efficient supply chain aimed at delivering
value to its customers around the world on a sustainable basis.
STRATEGIES OF ITC
ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organizational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems. • Create multiple
drivers of growth by developing a portfolio of world class businesses that best
matches organizational capability with opportunities in domestic and export markets.
ITC’s corporate strategies are
• Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology • Benchmark the health of each
business comprehensively across the criteria of Market Standing, Profitability and Internal
Vitality. • Ensure that each of its businesses is world class and internationally competitive. •
Enhance the competitive power of the portfolio through synergies derived by blending the
diverse skills and capabilities residing in ITC‟s various businesses • Create distributed
leadership within the organization by nurturing talented and focused top management teams
for each of the businesses. • Continuously strengthen and refine Corporate Governance
processes and systems to catalyses the entrepreneurial energies of management by striking
the golden balance between executive freedom and the need for effective control
accountability.
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
To enhance the wealth generating capability of the enterprise in a globalising
environment, delivering superior and sustainable stakeholder value
Sun feast profile
Snack foods
Sunfeast
In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie
and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes happiness,
contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of
the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence
in almost all types of biscuit categories.
Sunfeast Milky Magic
Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a
favourite among mothers and kids. Milky Magic has the „power of 2‟ - A perfect balance of
energy that aids physical strength and mental ability. These biscuits strike the right balance of
milk and wheat which helps in an all round development and nurturing of the child.
Sun feast Marie
Sun feast Marie Light:
This ideal teatime biscuit is made from the finest quality wheat high
in fibre and keeps one light and healthy through the day.
Orange Marie:
It has the distinction of being one of the most successful innovative
Marie biscuits and is liked by one and all.
Sun feast Golden Bakery
Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform.
Launched nationally in March 2008, these cookies are made from the recipes crafted by the
master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden
brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are
available in three distinct flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. These
products are designed to give consumers a rich & truly indulgent experience.
Sun feast Dark Fantasy
Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate
vanilla biscuits. These biscuits are created using carefully chosen
premium ingredients for a sensory experience unlike any other. Dark
Fantasy is more than a biscuit; it‟s a luxurious mix of aromatic cocoa and
vanilla.
Sun feast Glucose
For those light hunger pangs, a wholesome & nutritious choice as these golden brown
biscuits is made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for
kids but adults too.
Sun feast Dream Cream
A truly scrumptious range of cream biscuits that have become an instant hit with children.
ITC‟s chefs have put their legendary skills into these biscuits to deliver truly tasty cream
biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy
flavor linger on.
Strawberry Cream
Bourbon
The first of its kind cream biscuit with a special delight for all those chocolate special
strawberry flavor crystals that will lovers.
Orange Cream & Butterscotch Cream
Experience a tangy twist in biscuits with Another first, the taste of ice-cream in every
Orange cream cream biscuits.
Mango Cream & Elaichi Cream
A special summer flavour cream biscuits Taste the queen of spices in cream for all
those who love the king of fruits biscuits.
Sunfeast Snacky
Bigger than most others in the salted biscuit category, Snacky is light and crispy like no
other. From kids to adults, it‟s the quintessential „Family Biscuit‟. Available in two variants,
Classic salted and Chilli flakes - the very first of its kind in India.
Sunfeast sweet 'n salt
These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness.
A bite into one of these one keeps wondering about its taste!
Sunfeast Nice
These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness
will just go on to make all those nice moments nicer.
Sunfeast Benne Vita Flaxseed Biscuits
If Benne Vita in Italian stands for „Good Life‟, then Benne Vita Flaxseed biscuits just make
the good life better. The Flaxseed content in these protein and mineral enriched biscuits are
rich source of Omega III acids that helps control cholesterol. Flaxseed is the richest plant
source of these essential Omega-3 Fatty Acids. It is also rich in dietary fibre, proteins,
calcium and other minerals to maintain healthy heart and good gut health.
Sunfeast Special
ITC Sunfeast presents a range of Special cookies and creams.
Special Cookies:
Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with
real butter and the finest ingredients to give a mouth-watering treat that makes every moment
special. Available in Cashew/ Butter/ Coconut.
Special Creams:
Delicious value for money cream biscuits with a thick layer of cream sandwiched between
two biscuits. Available in Orange and Chocolate variants.
Sunfeast Pasta
The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking
options as well.
Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking
option for children and young adults. After the tremendous success of the 4 initial flavours,
(Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended
with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.
How ITC turned biscuits business around.
Biscuits and tea in the morning were a routine. So were the key market players and their
favourite products. The two major players Britannia [Get Quote] and Parle were busy biting
of chunks of the national market among themselves, with a host of smaller brands in various
regions.
While the business was still very competitive, there wasn't anything groundbreaking. In 2003,
with ITC foraying into the segment, a lot of that changed. At that time, Britannia and Parle
held, between them over 82 per cent of the market in value terms. The rest too was firmly
held by smaller players like Priya Gold which had a strong presence in the north. So, in
essence, the market already had strong well entrenched players. So how could a late entrant
like ITC make its mark? Six years down the line, however, things have changed a lot. It is a
classic story of the hare and the tortoise. While it is far from winning the race, slowly and
steadily, the tortoise is gaining ground. The late entrant is already on the podium in the third
place with as much as 7 per cent
of the market in terms of value. "ITC made hay when the sun wasn't shining," says a
consultant who's been tracking the industry for a long time. But first, why did ITC train its
eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple. "We
decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion) market in
India. But only 6 per cent of this is branded and packaged. In developed markets, nearly 95
per cent of the food market is branded and packaged. So there was lot of scope for a branded
player In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market
has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC was
already value-adding to wheat with its branded atta presence. By entering the biscuits
segment, it could also improve its bottomline further. But despite the fast growth rates, the
biscuits industry was not all rosy. Over the years, even giants like Hindustan Lever had
failed. For instance, HLL which had flirted with biscuits under the Max brand exited in 2005.
But ITC's Sunfeast has a different story to tell so far. the strategist looks at the gameplan of a
late entrant and how the biscuits industry has responded.
New recipe
Before entering the segment, ITC dug into market research. Research revealed that the
category had gaps which ITC could settle into. Findings revealed that consumers wished to
taste new and innovative products. That was precisely what the competition had not done in a
big way. Says Naware, "The biscuits industry had witnessed little innovation; Glucose was
Glucose and Marie was still Marie." The company decided that this could be its biggest point
of attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC
stuck to category favourites like Glucose, Marie and Bourbon cream Along with that, it also
launched innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured
cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magic.
More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes.
Analysts believe that just because Sunfeast was a new brand, helped matters. Says a
consultant, "The biscuits industry had not witnessed any major product innovation in years.
Consumers were just waiting for something new, something fresh, when Sunfeast happened."
Even the competition had not made things better. Between 2000 and 2005 neither Parle nor
Britannia launched any major new product. Yes, Britannia did re-launch its Tiger brand in
2005.
But Britannia claims that it is looking at more than just products. Richa Arora, general
manager and head of marketing and innovations, Britannia Industries, says, "We are not just
looking at new products, but tapping newer opportunities -- such as different occasions as
well as out-of-home consumptions."
In 2005, before Diwali, Britannia launched Occasions -- boxes of assorted biscuits priced
between Rs 50 and Rs 200 -- which the company claims has been very successful.
In 2006, however, the industry has seen a flurry of innovations from the big two. Digestive
Marie -- was launched by Parle in early February 2006. Britannia launched its new double-
flavoured Mariegold and 50-50 Chakkar. And Parle is all set to launch at least two new
products before the end of this year.
Distribution maze
It's common knowledge, that for FMCG products, distribution channels are very important.
Says Pravin Kulkarni, general manager, marketing, Parle Products, "For biscuits, distribution
and visibility are extremely important as it's partly a impulse purchase product." And in
biscuits, setting up a distribution channel is anything but easy. Consider this. Priya Gold,
which entered the western region in 2000, is struggling to find its feet even eight years later.
However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC
already had a good understanding of distribution channels. The company used its existing
network of convenience stores -- the company's name for the hole-in-the-wall pan-beedi
shops -- for Sunfeast. Not content with the existing resources, the company also looked at
grocery stores and other retail formats. The company says the brand is now available in
nearly 1.8 million outlets. Britannia claims it has a superior distribution clout with its
presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is available in
1.5 million outlets. Sunfeast's next step was to step up its branding and promotion.
Ad thrust
In August 2003, a month after its launch, the company undertook a major sampling exercise
to promote the product. For two years then, the brand did all the usual rounds -- riding behind
buses, blocking television spots, booking that corner space in your favourite newspaper and
so on.
Well differentiated advertisements, some which showed a complete cream world with cream
rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels.
At the same time, on general entertainment channels, mothers received information on the
importance of glucose, the wholeness of wheat and so on. Also, the company tied up with
Bey Blades, the popular television series that was a rage among children, to promote itself.
In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah
Rukh Khan as its brand ambassador.
In the same year, as the official sponsor of the WTA tennis championship -- titled the
Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh Bhupathi
campaigning for it. But that's not all. For promotions in southern states, Sunfeast has signed
Tamil super star Surya as a brand ambassador.
Analysts say that ITC's deep pockets have helped Sunfeast in many ways.
The company claims that it has been spending 35-40 per cent of its turnover from the biscuits
segment on advertising and promotions. Going by that number, ITCs annual marketing
spends are estimated to be in the region of about Rs 115-120 crore (Rs billion).
Until last year, Priya Gold spent close to Rs 45-50 crore (Rs billion), nearly 10 per cent of its
turnover on marketing. Even market leader Britannia with spends of Rs 100 crore (Rs billion)
(2004-05) spends about 10 per cent of sales on marketing.
But Arora says that the figure will increase substantially in 2006-07. ITC is clearly among
the largest spender on ads and promotions in the biscuits category.
Analysts predict that these figures are all set to rise this year. But industry experts aren't
impressed. Says a consultant, "Although Sunfeast's Shah Rukh Khan Association is
interesting, it is yet to do something groundbreaking, like Britannia khao world cup jhao or
the Lagaan promotion for that matter."
Pricing models
The biscuits industry now has two clear models. Parle products play the low price game at all
varieties of biscuits from glucose to cream. Essentially, Parle plays a high volume, low
margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in
cream variants and volumes from the Marie and Glucose segments.
For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100 grams.
Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of
Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. To be fair,
in Glucose and Marie, the companies have little choice. As there is little differentiation,
consumers are extremely price sensitive. But these segments are important. Marie and the
popular glucose varieties make up for nearly 55 per cent of the Rs 4,000 crore (Rs billion)
biscuits segment -- a significant Rs 2,200 crore (Rs billion). Says Sunil Alagh, chairman,
SKA Advisors, and former CEO of Britannia Industries, "the biscuit consumer is willing to
pay more only when he sees a clearly differentiated product. Hence companies have little
choice in terms of pricing." No wonder all the Glucose and Marie variants straddle price
points of Rs 4-6 (for 100 grams)
Key challenges
Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands. Says
Naware, "Seven per cent in less than three years is something that we could have only dreamt
about."
Importantly, industry barometer AC Nielsen has indicated that both Parle and Britannia are
losing market shares. According to the AC Nielsen retail sales audit in March 2006, both
Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in
2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2
to 38.4 per cent in the same period.
Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been
a big gainer with its share increasing from 2.7 to 6.7 per cent.
In terms of value, Britannia leads the market with 37 per cent market share, followed by
Parle's 31.3 per cent and ITC's 6.3 per cent. Nevertheless, the gap is still wide. Sunfeast still
has a long way to go.
But what can the bigger players do? Alagh has an interesting observation. Says he, "Biscuits
have always been a low margin, high volume game. Both Britannia and Parle have very high
volumes and can easily afford to lower their margins."
A potential after-effect? Sunfeast too may have to drop its prices to be in the reckoning and
this will squeeze its margin even lower. While the full game is yet to be played outfor the
moment the sun seems to be shining on Sunfeast.
CHAPTER- 3
RESEARCH METHODOLOGY
OBJECTIVE, SCOPE
&
LIMITATION
RESEARCH METHODOLOGY
This chapter describes the methodology of the study. This project is based on information
collected from primary sources. After the detailed study, an attempt has been made to present
comprehensive analysis of performance of ITC sunfeast biscuit versus britinnia and parle,
consumed by the people. The data had been used to cover various aspects like
consumption, retailer‟s preference and retailer‟s satisfaction, regarding Sunfeast Britinnia
and Parle. In collecting requisite data and information regarding the topic selected, I went to
the retailers of hatidwar and collected the data.
Survey design:
The study is a cross sectional study because the data were collected at a single point of time.
For the purpose of present study a related sample of population was selected on the basis of
convenience.
Sample Size and Design:
A sample of 100outlet was taken on the basis of convenience. The retailers were contacted
on the basis of random sampling
Research Period:
Research work is only carried for 2 or 3 weeks.
Research Instrument:
This work is carried out through self-administered questionnaires. The questions included
were opening ended, dichotomous and offered multiple choices.
Data Collection:
The data, which is collected for the purpose of study, is divided into 2 bases:
Primary Source: The primary data comprises information survey of
“UNDERSTANDINGTHESALE SYSTEM OF I.T.C ANCOMEPARITIVE
ANALYSIS OF SUNFEAST BISCUIT, BRITANNIA & PARLE”. The data has been
collected directly from respondent with the help of structured questionnaires. Secondary
source: the secondary data was collected from internet and reference from library.
Data Analysis:
The data is analyzed on the basis of suitable tables by using mathematical techniques. The
technique that I have used is bar graphs.
Object of the project
Defining the objectives is the most crucial part of the research. If the objectives are not clear
the researcher cannot identify the problem and thus cannot find a way of the problem.
This project is based on the study of relative performance towards ITC sunfeast, Britannia
and parle biscuits.
Objectives of the study are:
1. To study the company (ITC LTD) profile, product line, and SKUs of Sunfeast biscuits.
2. To study the relative performance of Sunfeast biscuit versus Britannia and Parle.
3. To study the visibility, supply, distribution channel, promotional activities, of Sunfeast in
market.
4. To study the retailer‟s preferences, margin, product awareness and perception.
5. To know about the organizational hierarchy of ITC LTD.
Scope of the study
As learning is a human activity and is as natural, as breathing. Despite of the fact that
learning is all pervasive in our lives, psychologists do not agree on how learning takes place.
How individuals learn is a matter of interest to marketers. They make aware to the customer
about their product, quality, benefits and promotional activities. They want to teach retailers
in their roles as their roles as consumers. They want retailers to learn about their products,
product attributes, potential consumers benefit, how to use, maintain or even dispose of the
product and new ways of behaving that will satisfy not only the consumer‟s needs,
but the marketer‟s objectives.
The scope of my study restricts itself to the analysis of the visibility, supply, distribution
channel, promotional. There are many other brands of biscuit available but my study is
limited to three major players of buscuit leaving behind the others. The scope of my study is
also restricts itself to Haridwar region only.
Limitations of the study
In attempt to make this project authentic and reliable, every possible aspect of the topic was
kept in mind. Nevertheless, despite of fact constraints were at play during this project. The
main limitations are as fellow:-
1. Due to limitation of time only few outlet were selected for the study. So the sample of
retailers was not enough to generalize the finding of the study.
2. The main source of data for the study was primary data with the help of self-administered
questionnaires. Hence, the chances of unbiased information are less.
3. People were hesitant to disclose the true facts.
4. The chance of biased response cannot be eliminated though.
CHAPTER- 4
DISTRIBUTION SYSTEM OF ITC
DISTRIBUTION CHANNEL OF ITC
MANNUFACTURING PLANT
W.S.P
WHOLESALE DISTRIBUTER
DISTRIBUTER SALESMAN
RETAILERWHOLESELLER
CONSUMER
DISTRIBUTION CHANNEL OF ITC
ITC provides products and services of superior quality and value by sourcing its technologies,
equipment and inputs from reputed international and Indian manufacturers and suppliers.
Common values, relating to human rights performance, are shared across the entire supply
chain because ITC is committed to the importance of a socially responsible and accountable
supply chain.
As a large and multi-product enterprise whose products are benchmarked nationally and
internationally, ITC's main supply chains can be grouped as follows:
1. For all its operations, technology, machinery and equipment are sourced from reputed
and globally benchmarked suppliers/vendors who are expected to follow
internationally accepted norms and standards on human rights.
2. ITC's major businesses are vertically integrated across several Divisions. A
substantial part of the supply chain is therefore internal through strategic backward
linkages. Common values relating to human rights performance are shared across this
supply chain.
3. Being a major agric-based company, the agriculture sector is a major supplier of
inputs for its operations. The bulk of agricultural commodities are procured from state
controlled trading platforms and the open market.
A very small proportion of ITC's business consists of supply chains comprising local vendors
and suppliers. The policy framework for such entities is enunciated separately in 'Policy to
Ensure Respect for Human Rights across the Supply Chain'
Operations at the WD shop
WD Constitution and its Importance
Every WD firm has a constitution, which is a legal document that authorizes the owner
to carry out the ITC distribution business under a specified enterprise name, accompanied
with a specimen signature of the Proprietor and manager. In case, the firm has partners, they
have to give a certification by the 1st
of January every year.
POP Register and Uses
POP register is a monthly record of the quantity of different types of POPs at the
WD godown. This is prepared at the end of every month, and a copy is also sent to the
branch.
The POP register can be used to check whether the Cycle plan inputs were given. This is
basically a track of the POP given and thus can be used if the POP provided was used
properly at the focus markets.
D and D Register
The D& D register is a record of amount and value of D&D of different brands (SKU
wise), that is held by a given WD at any point of time. The WD can claim for the amount
from the company. This register can be used to track the amount of D & D, which is being
received, and if it is large a corrective action may be initiated. Once every quarter, a company
official (AM) inspects the D &D. The different types of D &D have been described earlier.
Binders of the AE’s.
It consists of the following different parts:
Industry Summary Volume
This records the total food industry ---a detailed summary of ITC, competition and transit
trade both market share and market wise. Along with the previous two years it also shows the
quarterly, monthly and yearly average performance. This can be used to keep a track over the
industry as a whole and the trends---- the change in market share, growth rate by vol. etc
Total Consolidated Brand Card
The brands are segmented into KSFT, RSFT, LONGS, PLAINS and BINGOS and the
performance of the brand for the past 4 years (avg) and monthly analysis of each brand in the
current year is recorded. This is used to track the trends brand-wise i.e. to check which brand
is moving etc. If the brand sales are decreasing, we have to see to which brands have these
sales shifted to and then figure out the reason .e.g. an increase in prices leading to
downgrading.
Weekly sales Analysis
It gives the % sales per week of the total sales of the month. Ideally for the first 3 weeks it
should be 7/30*100 (23.3%) and 10*100/30 for the last week(30%) depending on whether the
month is 30 or 31 day month. A deviation of 2% of the above value may be allowed.
Industry Brand Segment Analysis
This is similar to the Total Consolidated Brand Card, but is done for the competition
brands and is used to check their trends and the brands –wise changes in sales and try to
correlate the changes with the comparable brands of ITC.
Volume by POP Groups
This gives the total food industry volume in each of the different POP groups market of
the section. This is used to understand and track how a particular POP group is behaving and
the sales trends there--- and can be used to determine if an action specific to that POP ought
to be taken.. The performance in the past years is also given for performance comparison..
Stock Position Report
Stock Position Report is sent by the WD at the end of every week and is basically an account
of the brand-wise
Opening SOH
Closing SOH and its value.
Track Receipts and Transfers at the WD point.
Volume and the value of sales made in last week and cumulative sales for the month
Remittances made by the WD to date
The oldest Stock date at the WD (to check the freshness of the stock).
The D & D of each brand to date.
A comparison of the Last Month sales and ECD to the sales to date can be made to check the
performance
The closing SOH is done as:
Closing Stock = Opening Stock - Sales this week + Receipts – Transfers.
This is done brand wise and multiplied by the price to determine the value of SOH.
Role of the Supervisor
Implement trade-marketing activities at the outlet level.
He is an aid to sell out and thus increase the customer sales.
Train DS---He is responsible for his territory and thus sets target for the DS, training
and motivating him.
Business advice to the customer.
Steps of the Call of the Supervisor:
Preparation
He checks outlet details prior to the call and set objectives for every call. To meet these
objectives he organizes his resources.
Approach
Visually collects and records information about environment of the outlet and observes the
inside (for POP, visibility, Foods etc) and outside(for on-shop displays) of the outlet.
Stock Check
He looks at the availability of the products (own and competition) and examines their stock
levels, to track trends and check whether the required pipeline is there or not. To ensure the
stock freshness he also ensures that the appropriate code date product is there stock). He also
ensures that stock rotation and FIFO is being carried out.
.
DS Call
A DS call is also given to each outlet once a week. This call is made along with the relevant
hawker on the route and is a sort of training and performance checks of the hawker. On this
call he checks the SOH, the code date and takes up other issues
ROLE OF A DS
DS---- Distribution to the retailers.
A DS may be an independent businessman or employed by the WD generally for deep inland
markets.
How does a DS start his day?
Picks up stock from the WD point according to his requirement for the route.
Takes care of bills to be issued
Takes up the issues of the day
The DS covers 30 outlets on his route. The activities of the DS have been divided into
suitable rote and collect the order .
CHAPTER- 5
MAJOR COMPETITORS OF SUNFEAST BIACUIT
MAJOR COMPETITORS OF SUNFEAST BUISCUIT
BRITANNIA
PARLE
ABOUT BRITANNIA
COMPANY PROFILE-
The company enjoys a share of 32% in the market in terms of volume. Started way back in
1892 with an investment of Rs. 295, biscuits were manufactured in a small house in central
Kolkata. Later, the business was acquired by the Gupta brothers and operated under the name
of V.S. Brothers. In 1918, C H Holmes, an English businessman in Kolkata was taken as a
partner and „The Britannia Biscuit Company Limited (BBCo)‟ was launched. The Mumbai
factory was setup in 1924 and Peak Freans, UK acquired a controlling interest in BBCo.
Biscuits were in big demand during World War II, which gave a fillip to the company‟s sales.
BBCo celebrated its golden jubilee in 1968 and the company name was changed to the
current Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA became a
major foreign shareholder. Ten years later in 1992, Britannia Industries Limited celebrated its
platinum jubilee. The following year, the Wadia Group acquired a stake in ABIL, UK and
became an equal partner with Groúpe Danone in Britannia Industries Limited.
Product
Britannia has restructured its portfolio of products at regular intervals. This strategy has
enabled it to serve the key needs of the Indian consumer across age groups and diverse
consumption situations, through an optimum range of brands. The success of this strategy
enabled Britannia to reduce the number of focus-brands from 24 in 1998, to nine in 2001.
All its product offerings derive their premium qualities from the principles of health and
taste. This key premise has led to the evolution of a lifetime menu where a Britannia product
exists for every stage in a person‟s life. The highest consumption group for biscuits are
children; here Britannia offers Milk Bikis with all the „goodness of milk‟ required by younger
kids, while the Tiger brand is aimed at 7-14 year olds and provides them with the exuberant
health required by „winners of tomorrow‟. Another offering for children – Treat, a range of
delicious cream biscuits – is meant as a treat for children during fun times.
A particularly notable success has been Little Hearts, meant for teenagers and kids, to target
group which did not snack on sweet biscuits. The company moved into the mass market for
biscuits introducing low priced varieties under the umbrella, Tiger.
PRODUCT RANGE
50:50
MARIEGOLD
BOURBON
PURE MAGIC
NICE
GLUCOSE-D
GOOD DAY
SNAX COCONUT CRUNCHIES
Achievements
Britannia is synonymous with the rise and growth of the biscuit industry in India
It brought the health dimension to an industry that was traditionally driven by taste alone.
This is reflected in Britannia‟s brand slogan, introduced in 1997 that exhorted consumers to
„Eat Healthy, Think Better‟. This was quickly embraced by the entire industry to come up
with similar promotional campaigns showing biscuits to be an epitome of a healthy, happy
diet.
Britannia‟s products retail in over 2 million outlets selling approximately 200 million packs a
month. With millions of happy consumers every month, Britannia is considered to be one of
the most trusted food brands in India. Britannia has also successively made the Forbes List of
200 Best Small Companies in the world for the years 1999, 2000 and 2002.
The four metros account for 65% of the sales of Britannia. Britannia industries has acquired
49% stake in Kwality Biscuits.
DISTRIBUTION CHANNEL OF BRITANNIA
MANNUFACTURING PLANT
DEPO
WHOLESELLER RETAILER
CONSUMER
DISTRIBUTER
SALESMAN
ABOUT PARLE
Parle enjoys a 43% share of the total biscuit market. A long time ago, when the British ruled
India, a small factory was set up in the suburbs of of Mumbai city, to manufacture sweets and
toffees. Despite the odds and unequal competition, this company called Parle Products,
survived and succeeded, by adhering to high quality and improvising from time to time.
A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets
and toffees. Having already established a reputation for quality, the Parle brand name grew in
strength with this diversification. Parle Glucose and Parle Monaco were the first brands of
biscuits to be introduced, which later went on to become leading names for great taste and
quality.
Parle is the second largest producer of biscuits in the organized sector. In the popular brands
segment, its Parle G remains a popular brand in the glucose biscuit segment AND IS
WORLD‟S LARGEST SELLING BRAND OF BISCUIT. In the premium segment, its HIDE
& SEEK is attracting competition due to the sway it holds in the market place.
In the saltish biscuits, Monaco has been quite popular, especially in the cocktail circuit.
PRODUCT RANGE-
HIDE & SEEK
PARLE-G
PARLE-G MAGIX
PARLE-G MILK SHAKTI
KRACKJACK
MONACO
MARIE CHOICE
MONACO BITES
FUN CENTRE
ACHIEVEMENTS-
Be it a big city or a remote village of India, the Parle name symbolizes quality, health and
great taste! This reputation has been built, by constantly innovating and catering to new
tastes. This can be seen by the success of new brands, such as, Hide & Seek.
In this way, by concentrating on consumer tastes and preferences and emphasizing Research
& Development, the Parle brand grows from strength to strength.
The extensive distribution network, even in the most remote places and in the smallest of
villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to
4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force
services these wholesalers & retailers. Additionally, there are 31 depots supplying goods to
the wide distribution network..
Designing products that provide nutrition & fun to the common man. Most Parle offerings are
in the low & mid-range price segments. This is based on our cultivated understanding of the
Indian consumer psyche. The value-for-money positioning helps generate large sales volumes
for the products.
Parle-G sells the most because it is the cheapest biscuit in the branded category. Most Parle
offerings, unlike Britannia, are mass brands in the low and mid-range price segments. As it
has been around for over 60 years, it has a loyal consumer base
However, Parle Products also manufactures a variety of premium products for the up-market,
urban consumers. And in this way, caters a range of products to a variety of consumers
DISTRIBUTION CHANNEL OF PARLE
MANNUFACTURING PLANT
WAREHOUSE
WHOLESELLER RETAILER
CONSUMER
STOCKEST
DISTRIBUTER
SALESMAN
CHAPTER- 6
DATA ANALYSIS AND INTERPRETATION
BASED ON RETAILER
ANALYSIS OF THE STUDY ON RETAILER
Q1 Which company give you batter margin.?
a) I.T.C. b) Parle
c) Britannia d) Other
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 27 people are says Britannia give the better margin I.T.C says 26
people , 24 people says parle and 23 people says other.
Q2. Which company exchange your defected products immediately?
a) I.T.C. b) Parle
c) Britannia d) Other
21
22
23
24
25
26
27
28
I.T.C. Parle Britannia Other
Series 1
Series 2
Series 3
series 4
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 28 people are says Britannia exchange the defacted product
immediately ,I.T.C says 22 people , 30 people says parle and 20 people says other.
.
Q3. Are you satisfied with the service of ITC company?
a). Yes b). No
0
5
10
15
20
25
30
35
I.T.C. Parle Britannia Other
Se
Se
Se
ser
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 90 people are satisfied wih the I.T.C service and 10 people are not
satisfied of I.T.C service
Q4. Which company provide better service?
a) I.T.C. b) Parle
c) Britannia d) Other
Yes
No
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 28% people says I.T.C provide better service , 26%says parle and
24% Britannia ,22% other
Q 5. How do you come to know about sunfeast biscuit?
FACTORS
NUMBER OF
RESPONDENTS
ADVERTISEMENT 60
0%
5%
10%
15%
20%
25%
30%
I.T.C Parle Britannia Other
Series 1
Series 2
Series 3
FAMILY / FRIEND 20
RETAILER 15
ANY OTHER 5
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 60 people know sunfeast biscuit through
Advertisement while 20 people through family and 15 people follow by
Retailers
Q 6. which brand of biscuits you prefer to stock?
0
10
20
30
40
50
60
70
NUMBER OF RESPONDENTS
NUMBER OF RESPONDENTS
From the above chart we can infer that 33% of the retailers favors Parle Britannia 20% of the
retailers favors Britannia, 17% favors Sunfeast and the rest of them favors other brands.
Q7. What is the time gap between order capture and delivery?
Sunfeast
Parle
Britannia
Others
sameday 10 50 60 0
1 day 82 30 22 65
2 days 8 20 28 15
3 days 0 0 0 20
This chart explains that the time gap between order capture and delivery is maximum in day 1
and for some on the second day.
Q8 Have you ever tried Sunfeast?
Yes ___
No ___
0
10
20
30
40
50
60
70
80
90
I.T.C parle Britannia other
sameday
1 days
2 days
3days
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 97 people says yes and rest of no .
Q9. Which flavours does you like the most?
SUNFEAST GLUCOSE BISCUITS ______
SUNFEAST MARIE LIGHT ______
yes
No
SUNFEAST CREAM BISCUITS ______
SUNFEAST SPECIAL BUTTER ______
SUNFEAST SPECIAL CEASEW ______
SUNFEAST BOURBON CREAM ______
SUNFEAST DARK FENTESY ______
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people most like sunfeast glucose and sunfeast cream.
Q10. Compared to other BISCUITS (such as PRIYAGOLD BISCUIT
, BRITANNIA, and PARLE etc.) That are available, would you say that Sunfeast is?
Much better ___
Some Better ___
0%
5%
10%
15%
20%
25%
SUNFEAST
GLUCOSE
BISCUITS
SUNFEAST
MARIE
LIGHT
SUNFEAST
CREAM
BISCUITS
SUNFEAST
SPECIAL
BUTTER
SUNFEAST
SPECIAL
CEASEW
SUNFEAST
BOURBON
CREAM
SUNFEAST
DARK
FANTESY
Series 1
Column1
Same ___
Some Worse ___
Much Worse ___
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 44 people says Much better ,25says Some better,20 Same.8 Some
worse,3says much worse.
Q11 Before switching on to Sunfeast, which BISCUITS (did you prefer?
PRIYAGOLD BISCUIT _________
BRITANNIA _________
0
5
10
15
20
25
30
35
40
45
50
Much better Some better Same Some Worse Much Worse
PARLE _________
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 40people says parle ,32says Britannia and rest of says priyagold.
Q12. What do you like about Sunfeast?
Taste ___
Quality ___
0
10
20
30
40
50
priyagould Britannia Parle
Series 1
Series 1
Price ___
Quantity ___
Packaging ___
From the above analysis of given sample of 100 respondents it is concluded
that out of 100 people 28%people says taste ,42%says quality and3%
price,16%quanyity,10%packaging.
CHAPTER- 7
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
taste quality price quantity packaging
Series 1
SWOT ANALYSIS,
FINDINGS AND RECOMMENDATION
FINDINGS
1. Most of the people prefer low price of biscuit.
2. Cream biscuit are most preferred between customers.
3. Most of the people prefer the Britannia biscuit.
4. People switch over the other brands for to change the taste.
5. People are aware of Sunfeast brand through media and they are aware that they are
the ITC product.
6. Sunfeast customer like its biscuit due to its quailty.
7. Sunfeast biscuit packaging is preferred over other brand like Britannia and Parle.
8. Sunfeast biscuit are available at customer neighbourhood.
9. Customer of Sunfeast biscuit feel that the price may be lower to in hence the market
share.
10. Retailer are satisfied with the service of I.T.C.
11. I.T.C delivery system is some low.
12. Somecompaney give the more margin
13. Exchange the defacted product immediately.
SWOT ANALYSIS
STRENGTHS:
1. ITC is one of India's foremost private sector companies.
2. ITC leveraged it traditional businesses to develop new brands for new segments. . For
example, ITC used its experience of transporting and distributing tobacco products to
remote and distant parts of India to the advantage of its FMCG products. ITC master chefs
from its hotel chain are often asked to develop new food concepts for its FMCG business.
3. ITC ranks among India's top 10 Most Valuable (Company) Brands.
4. It has market capitalization of nearly US $ 18 billion.
5. ITC has a diversified presence in Cigarettes, Hotels, Paper boards & Specialty
Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG
products.
6. ITC's Agri-Business is one of India's largest exporters of agricultural products.
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Shubham chaudhary project

  • 1. UNDERSTANDING THE DISTRIBUTION SYSTEM OF I.T.C AN COMPETITIVE ANALYSIS Submitted for the partial fulfilment of the requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT SUBMITTED BY:- Shubham chaudhary ROLL NO: - M2012104 UNDER THE GUIDENCE OF:- SUBMITTED TO:- Ms.Nidhi phutela Asst. Professor APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, GREATER NOIDA (2012-14)
  • 2. PREFACE The PGDM AICTE (MBA) curriculum is so designed that we can get enough practical knowledge of business world help them to explore their skills in corporate world in future. The PGDM training helps us to understand and gain knowledge about the industry and the market environment. It develops skills of analyzing and interpreting problems through application of concepts and techniques of management. I am lucky that, I got an opportunity for making the project report on “ITC Sun feast biscuit.” I visited the various concerns for two months and I prepare my project report on the topic “UNDERSTANDINGTHEDISTRIBUTION SYSTEM OF I.T.C AN COMPETITIVE ANALYSIS..” And the study is divided into various chapters to get knowledge. I also considered some published material on the particular topic as well as about the concern. This helps me in boosting up my confidence and determination which will help me to face the situation in coming years. This report is written account of what I learnt and experienced during my survey. I wish, those going through it will not only find it readable but also get as useful information. The main limitation of my experience was that I did not get the full and correct information from the market, as many of the respondents did not answer to my questionnaire correctly and completely. I did a project for ITC in Haridwar. The study consists of the following chapters. Introduction of ITC, study on performance of Sunfeast biscuit in terms of their competitor, retailers and customers perception, sales analysis, distribution, and conclusion etc.
  • 3. ACKNOWLEDGEMENT Life of human beings is full of interaction. No one is self-sufficient by himself whenever anyone is doing some serious and important work a lot of help from the people concerned is needed & one less specially obliged towards them. I cannot forget acknowledging them in few words as without the guidance & co-ordination of them in my project report would not have been possible. A large number of individual contributed to this project. I am thankful to all of them for their help and encouragement. My writing in the project report has also been influenced by a number of website and standard textbooks. As for as possible, they have been fully acknowledged at the appropriate place. I express my gratitude to all of them. First of all I owe my heartfelt gratitude to my guide Prof. Ms. Nidhi phutela for his noble guidance throughout the completion of the project. I would like to extend my heartfelt thanks to Mr. Gaurav Mehandiratta, Asst. Manager of ITC Pvt. Ltd., Saharanpur Branch for giving me an opportunity to work on this project. I would also like to thanks Mr. Mukesh pandey , Area Manager of ITC Pvt. Ltd., Haridwar for his guidance, inspiration, and constructive suggestions, which helped me in the project. I must also thank the management of ITC Pvt. Ltd. to provide excellent opportunity and environment to be able to pull my project through. Cooperation of the staff is also gratefully acknowledged. Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and timely. Shubham chaudhary AIT – School of Management, Greater Noida
  • 4. DECLARATION I, the undersigned, hereby declare that the Project Report entitled “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF I.T.C AND COMPETITIVE ANALYSIS.” written and submitted by me to the APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, Greater Noida in partial fulfilment of the requirements for the award of PGDM (MBA) under the guidance of Ms. Nidhi Phutela is my original work and the conclusions drawn therein are based on the material collected by myself. SHUBHAM CHAUDHARY PLACE: - HARIDWAR Date:-
  • 5. CERTIFICATE This is to certify that the “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF I.T.C AND COMPETITIVE ANALYSIS.”is the bonafide project work done by Shubham chaudhary student of Apeejay Institute of Technology – School of Management, Greater Noida during the Summer Internship Training, in partial fulfilment of the requirements for the award of the Degree of “Post Graduate Diploma in Management” and that the project has not formed the basis for the award previously of any degree, diploma, fellowship or any similar title. To the best of my knowledge and belief the project represents independent and original work on the part of candidate under my guidance. Name and Signature of Mentor Name and Signature of Director
  • 6. INDEX Contents Page No Chapter- 1:- Introduction & Profile of the organization 01 ITC PROFILE 08 HISTORY OF ITC 10 ORGANIZATIONAL STRUCTURE 24 AREA OF DIVERSIFICATION 25 SUNFEAST PROFILE 31 Chapter-2:- HOW ITC TURNED BUSCUITS BUSINESS DISTRIBUTION SYSRTM OF I.T.C 35 40 Chapter-3:- Objective of the study 43 Scope of the study 45 Limitation of the study 46 Chapter- 4:- Chapter- 5:- Major Competitors of sunfeast biscuit Research methodology and design 47 55 Chapter- 6:- Data presentation, Analysis, and interpretation 58 Chapter- 7:- suggestions and swot 71 Chapter-8:- Bibliography 80 Chapter-9:- Annexure 82
  • 10. INTRODUCTION ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, 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. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri- business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. 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. 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'. 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
  • 11. 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. 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. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. 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. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
  • 12. 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. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India‟s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. 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). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. 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 'Celebration Series', taking the event forward to consumers. 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 - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 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
  • 13. 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 Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. 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 matchesbrands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeepacross a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.
  • 15. ITC PROFILE ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Feb. 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words. "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
  • 16. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Chou pal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 68,000 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation For the Shareholder.
  • 17. Company History – ITC 1910 - On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of IndiaLtd. The Company manufacture and distribute cigarettes and smoking tobaccos and specialty papers including cigarette issue papers (Sole manufacturer in the country). 1953 - The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd., and the Complementary Lithographic Printing business of Printers (India) Ltd. 1954 - The Company was converted into a Public Limited Company on 27th October. 1970 - The name of the Company was changed from the Imperial Tobacco Co of India Ltd., to India Tobacco Co. Ltd., in May. 1972 - On October Company entered into hotel business. 1973 - Company received the approval of Govt. for setting up three Processing plants. 1974 - On 1st April name again changed to I T C Ltd. 1975 - ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd. (UK). 1979 The name of the Company's chain of hotels was changed from Welcome Hotels to Welcomgroup. The company entered into a Marketing Service and Reservations Agreement with the Sheration International Incorporated which was sanctioned by Govt. on 27th January.
  • 18. 1983 - A new Company under the name Gujarat Hotels was incorporated under a joint venture agreement signed between the Company and Gujarat Industrial Investment Corporation. This Co. had set up a 144-room hotel at Vadodara known as Welcome group Vadodara. 1987 - New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced. Long- term agreements were entered into with the unions of factories located at Calcutta, Saharanpur and Munger. In Bangalore, however, working was affected by a strike for 114 days. 1988 - In May the company formed a new division called Agribusiness Division for carrying out research and development on production and distribution of high yielding cultivars with emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and export of agricultural produce. - A Memorandum of Understanding was signed with the authorities to open an Indian restaurant in Odessa, U.S.S.R. - Different varieties of oilseeds under the brand name of ADARSH and cooking oil under SUNDROP were launched. - New investments were made in water and bulk liquid packaging project. The Company explored the possibility of setting up a new software development centre in India with ability to access Company's customers' computers abroad through data communication Links. - A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.) (ILTD) consisted of its operations in India where it operated as a sister concern of the Company. ILTD was a pioneer in introducing Virginia tobacco to India and over the year, developed into a highly efficient enterprise, besides being a very large exporter of tobacco. The Company purchases, with effect from 1st April, 1975, the net assets in India of ILTD whereupon it became a division of the Company. 1990 - Refined mustard oil under the brand name REAL GOLD was introduced in the market. - On 1st April Tribeni Tissues Ltd was amalgamated with the Co.
  • 19. 1992 - Since January there was labour unrest at Tribeni Tissues papermill which led to a lockout at the mill with effect from 27thMay. - On 8th April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a wholly owned trading subsidiary of the Company. - During the same period a wholly owned subsidiary ITC InfoTech Ltd. Incorporated in UK with an authorised capital of US $ 2million and paid up capital of US lakh. 1993 - The Company successfully launched Hero brand Cigarettes. - Two new brands viz., `Classic Milds' and `Hero' were launched at the premium and small- length ends respectively. 1995 - Company introduced CAPSTAN Menthol filter, CAPSTAN standard and Bristo standard and re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in King- size was Introduced into test markets. 1996 - The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brands during the year. 1997 - ITC Classic Finance Ltd. was amalgamated with ICICI Ltd. 1998 - ITC has nearly 105 subsidiaries, which are involved in various kinds of operations. 1999
  • 20. - Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITC Bhadrachalam Paperboards, from 37% to 51% through a preferential allotment of equity shares. This follow the allotment, by the board of ITC Bhadrachalam Paperboards, of 1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per share and 11% redeemable cumulative-preference shares of the face value of Rs100 each, for cash, at par to promoter company ITC. - ITC will set up a new tobacco processing department (TPD) because the increased production will make it economical toprocess tobacco on site. - The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National Quality award for 1995. 2000 - ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, and Compaq Computer (I) Pvt. Ltd. signed an MoU aimed at exploring business opportunities for deploying e-enabled solutions. - The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to make a beginning in agricultural e-trade. - ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part of its diversification strategy into new areas. - The Company is hiving off its Infotech services businesses in India, the US and UK and merging them into a separate wholly-owned subsidiary. - The IT division has entered into agreements with Compaq and expand the IT business. - The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for the greeting cards business was set up under the Packaging and Printing Division. - ITC has launched Wills Sport, a full range of internationally styled premium wear for men and women. - Tobacco Company ITC launched a website, billed as `one stop terminus' for international customers of agricultural commodities. The website, WWW.itcibd.com, will provide information on trading of key commodities. - The Company have set up units in the north-eastern States to avail of special incentives relating to Central excise duties.
  • 21. - On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effective from 12th July. - The Board of the company has recommended an employee stock option scheme. -Having carved a niche for itself by launching the first branded lifestyle apparel, Wills Sport, in Delhi in July 2000, the Lifestyle Retailing Business Division of ITC Limited has now big plans up its sleeve. 2002 - ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian atta market. - ITC's greetings cards business and Maple Leaf have entered into Joint Venture where Maple Leaf will exclusively manufacture pop-up cards for ITC. - ITC Foods and ITC Ltd, is finally foraying its way to the Rs 1,100 crore confectionery market. The foods division which has shifted office from Kolkata to Bangalore this month has introduced its first confectionery product, acquired brand Minto in four cities. -ITC Greeting Cards Business (ITC-GCB), has forayed into stationery products segment with the launch of Expressions PaperKraft. -ITC Limited has taken over Wills brand. ITC had to acquire the Wills brand in the US, before it takes Wills merchandise to America. -ITC, now moves towards match business, it has diversified into the match business to earn more revenues from non-tobacco businesses. 2003 -ITC Ltd has informed to BSE that company's Spriha brand of natural incense sticks (Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo Udyog Trust in Pondicherry was launched on February 21, 2003. -ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs 500 crore sales in five years. Salt is the second offering from ITC Foods' staple business in the past 10months, under the brand name of 'Aashirvaad'.
  • 22. -Commences commercial production of paper using the environment-friendly ECF (elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh -Food wing of ITC eyes on 4 pc market share in biscuit market -ITC unveils new brand of agarbattis 2004 -ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine brand Kitchens of India and ready meal Aashirwad brand -Completes the process of acquiring the paperboard manufacturing facility of BILT Industrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility, renamed 'unit Kovai', will operate as part of the paperboards and specialty papers division of ITC, which has a unit at Bhadrachalam in Andhra Pradesh. -ITC unveils Sunfeast biscuits in Chennai - ITC ties up with Israeli firm for e-channel. 2005 - ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality Management System certification ISO 9001:2000 for investor servicing. - ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'. - ITC Ltd signs MoU with Tripura Government for a bamboo development programme. - ITC unveils new `5-in-1' agarbattis -ITC unveils `Expressions Regalia' -ITC e-Choupal gets Development Gateway Award- ITC unveils Candyman Cofitino 2006 -ITC forges alliance with Tilda for DNA-tested basmati -ITC ties-up with Marubeni for food biz 2007 - ITCLtd. Has informed that the Board of Directors of the Company at the meeting held on July 27, 2007, appointed :
  • 23. (i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating the Specified Undertaking of the Unit Trust of India (SUUTI), (ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC) as an Additional Director of the Company,representing LIC, (iii) Dr. R. K. Kaul, General Manager - National Insurance Company Limited, as an Additional Director of the Company, representing General Insurers' (Public Sector) Association of India, (iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of the Company, and (v) Mr. S. B. Mathur, as an Additional Non-Executive Independent Director of the Comp. - ITC acquires Australian agri-biotech co. 2008 ITC Infotech signs partnership agreement with ADAM Software ITC InfoTech, a global IT services company and a fully owned subsidiary of ITC Ltd., today signed a partnership agreement with ADAM Software, a leading Digital Asset Management company. ITC Infotech will provide services around ADAM Software‟s Digital Asset Management (DAM) platform. ITC Infotech services will include information architecture modelling and design, ADAM implementation and support, integration with enterprise applications such as portals; rights management etc, digital asset descriptive metadata cataloguing and Web 2.0 based portal development services. With in-depth understanding of how media supply chain works, ITC Infotech is well placed to publish and distribute quality content. ITC launches eco-friendly "Paperkraft Premium Business Paper ITC recently launched "Paperkraft Premium Business Paper", an environment friendly paper which has been crafted by ITC using a pioneering technology, which is first of its kind in India called "Ozone Treated Elemental Chlorine Free technology". Paperkraft is a superior and environmentally friendly, multipurpose paper for office and home use, which lets you exercise your power to "Go Green". This unique product is an integral part of ITC‟s significant initiatives to augment natural and scare resources and has been launched in line with ITC‟s triple bottom line commitment to building economic, environmental and social capital for the nation.
  • 24. Yet another addition in ITC‟s wide array of differentiated FMCG products, Paperkraft Premium Business Paper has been created by ITC to provide consumers an opportunity to partner in our efforts to mitigate the adverse impact of climate change and create a positive environmental footprint. In terms of quality, Paperkraft offers a superior value proposition since it is the whitest and brightest 75 GSM business paper manufactured in India. A proprietary chemical treatment has enabled it to become an eco- friendly paper with a higher archival life. 2009 ITC‟s Hotel Royal Gardenia becomes the world‟s largest LEED Platinum rated Green Hotel - - first Hotel in India to achieve this recognition ITC‟s new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia was conferred the highest rating for green buildings in the world – the LEED India Platinum Rating. This recognition makes it the world‟s largest platinum rated hotel and is yet another manifestation of ITC‟s leadership in Sustainability Practices. ITC is the only company in the world to be carbon positive, water positive and solid waste recycling positive. The LEED Platinum Rating for the ITC Hotel is one greener milestone close on the heels of the ITC Green Centre in Gurgaon which was the world‟s first largest green building. This Centre was chosen by the US Secretary of State Hillary Clinton to announce her vision on Indo-US collaboration on Climate Change during her last visit to India. After a tour of the building she called it the “Monument to the Future”. ITC‟s exemplary commitments to green practices have also enabled its hotel in Kolkata – the ITC Hotel Sonar to be the only hotel in the world to earn carbon credits. In keeping with the ITC Commitment to the “Triple Bottomline” philosophy, ITC Hotels has aspired to be an „exemplar‟ in the service sector and truly provides leadership to positive environmental action in a sustainable manner. The ITC Royal Gardenia is an inclusive blend of contemporary design and international green practices, a beacon in a bustling urban environment. Built on the ethos of “Responsible Luxury” the hotel has adopted contemporary „Green Practices‟ that harness the element of nature in an inspired setting to deliver unique guest experiences.
  • 25. According to Chief Executive, ITC Hotels Division, Nakul Anand, “The ITC Royal Gardenia exemplifies ITC‟s vision and is perhaps the perfect example of finding common rhythm between manmade and natural environment. The challenge was to see how luxury and responsibility could be in harmony together. Thus a series of sustainable measures and practices were embraced to ensure that elements of nature were effectively harnessed at every level inside the luxury hotel”. ITC creates mobile version of Corporate Website ITC is among the first Indian companies to launch a mobile version of its Corporate Website -www.itcportal.mobi This unique endeavour by ITC, aims to enhance stakeholder engagement by leveraging multiple channels of communication that can deliver maximum value to Internet users. With the increasing reach of mobile phones in India and Internet navigation rapidly becoming a common feature on majority of cell phones, the mobile version of ITC‟s corporate website will offer convenience of accessing information instantly and a superior surfing experience. www.itcportal.mobi can now be accessed by millions of active mobile Internet users in the country and abroad. Optimized for fast download, the easy-to-navigate website is designed for any mobile that supports WAP2.0 and has a screen resolution of 320 x240 pixels. This new initiative from ITC will not only make information search easier and relevant for the mobile internet user but will also enable proactive engagement with stakeholders by reaching out to them with news alerts, product and service offers. The launch of the mobile version is a strategic shift from an existing information-providing format to a proactive communication mode that is more meaningful in today‟s environment of rapidly evolving communication technologies. ITC Infotech launches services for seamless migration to Windows 7 in partnership with Microsoft ITC Infotech, a global IT services company and fully owned subsidiary of ITC Ltd., has launched services to help customers migrate seamlessly to the latest Windows 7. The company has partnered with Microsoft to offer services around Microsoft‟s Application Compatibility Framework (ACF).
  • 26. Mr. Jake Braly, Group Manager – US BMO, Microsoft, said, “ITC Infotech has been a valued partner in the Application Compatibility PoC Program since May 2009.” ITC Infotech has developed a methodology to help customers mitigate application issues around Windows 7, through Microsoft‟s proven ACF framework. In association with Microsoft, ITC Infotech will work with customers in resolving compatibility issues. Some of the key business benefits of the ACF include packaged assessment, enablement through technical training and remediation of business critical applications. 2010 ITC‟s Fiama Di Wills unveils the new Anti Hair Fall Shampoo The Mantra to feel young! After storming the market with the innovative transparent gel bathing bars which won the „Product of the Year‟ award recently, Fiama Di Wills, ITC‟s personal care brand, has launched yet another innovative product for its consumers - The Anti – Hairfall Shampoo & Conditioner, in Chennai today. The new variant was unveiled by the glamorous Brand Ambassador Deepika Padukone at a high decibel launch event. The new anti - hairfall Shampoo combines the goodness of Nature and Science that ensures gentle care while fighting hairfall effectively. Fiama Di Wills Anti Hairfall Shampoo promises reduced hairfall due to breakage in just three washes. The shampoo has been launched in Tamil Nadu and will soon be extended to more markets. The Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair restore Technology. Brazil nut, is known to seal in hair moisture giving it shine and a silky smooth texture. It also helps renew dry and lifeless hair. The Hair Restore Technology, developed at the ITC R&D Centre, helps repair cuticles and restore the protective lipid layer to reduce further damage. This strengthens hair and reduces hair fall due to breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the hair restore technology gives best results when used with Fiama Di Wills Anti-Hairfall Shampoo.
  • 27. Atul Joshi, Head of Marketing, Personal Care Products Business, ITC Limited, said “Hair Fall is a serious concern for everyone and also has a severe impact on the individual‟s psyche as it adds years to one‟s appearance. We are glad to present a different Anti Hairfall Shampoo that has been developed through extensive research at our R&D centre to formulate the innovative Hair Restore Technology. We are confident that consumers will definitely like the experience of the combined goodness of the exotic Brazil Nut and the Hair Restore Technology to give them the mantra to feel young! I urge the consumers to try our product and experience the difference. “ Deepika Padukone, Brand Ambassador for Fiama Di Wills said, “I am delighted to announce the launch of the new Fiama Di Wills Anti Hair Fall Shampoo & Conditioner here in Chennai. The range has grown to introduce variety of solutions for every kind of hair and address a wide range of hair problems. I have been using Fiama Di Wills‟s products since its inception and can confidently say that they are true to their promise. Beautiful hair is every woman‟s dream and the new shampoo with the goodness of Brazil Nut and Hair Restore Technology is designed to provide an answer to hairfall.” ITC Infotech Achieves Platinum Partner status in the Oracle(R) PartnerNetwork ITC Infotech, a global IT services & Solutions Company and a fully owned subsidiary of ITC Ltd., has achieved 'Platinum Partner' status as part of the Oracle Partner Network (OPN) program. This prestigious recognition as a platinum partner is an acknowledgment of the expertise and excellence in ITC Infotech‟s superior and differentiated capabilities across the entire suite of Oracle solutions. Mr. Tyler Prince, Group Vice President, North America Sales, Applications and Public Sector Alliances and Channels, Oracle, said, "The Oracle Partner Network program acknowledges partners that demonstrates excellence in helping our mutual customers reach their full business potential. We are happy to provide ITC Infotech with this distinction in recognition of their efforts towards administering diverse Oracle platforms and applications across global IT business environments. We look forward to engaging with ITC Infotech across a variety of industries to provide cutting-edge solutions." ITC completes 100 years
  • 28. Kolkata: ITC completed a 100 years on the 24th of August, 2010. A glorious moment in its history, the occasion was marked by celebrations across all its offices and facilities in India, with Company flag-hoisting ceremonies to commemorate and pay homage to the spirit of the institution. At a special Centenary event, in Kolkata, Chairman Mr. Y C Deveshwar, addressing a 29,000 strong audience of employees across the country through a webcast, said that: "Innovation should be a source for creating consumer delight as well as triple bottom line performance so as to generate greater value for the shareholder and the society. Value creation for the Indian society is best achieved by creating sustainable livelihoods and replenishing natural capital." Emphasising on the need for competitive vitality, Chairman Mr Deveshwar underscored the need to leverage knowledge resident across diverse businesses in its world class human resources to create "Champion Teams" that would continuously innovate to deliver competitively superior customer value. He reiterated his firm belief that the unique amalgam of ITC‟s Vision, Values and Vitality has ensured that the Company is „Future-ready‟ ITC Hotels becomes the greenest luxury hotel chain in the world - All ITC’s luxury hotels are now LEED® Platinum rated - All ITC‟s luxury hotels have been accorded the highest rating: LEED Platinum (Leadership in Energy and Environmental Design) making it the „greenest luxury hotel chain in the world‟. This distinction is an endorsement of ITC Hotels‟ credo of „Responsible Luxury‟ - an ethos that integrates world class green best practices with contemporary design elements to deliver the best of luxury in the greenest possible manner. The Responsible Luxury commitment of ITC Hotels blends elements of nature to deliver a unique value proposition to discerning guests, conscious of their responsibility to be planet positive. In addition to the wide spectrum of environment friendly measures that ITC Hotels implement, the ITC group‟s carbon positive, water positive and solid waste recycling positive status ensures that a guest‟s stay at any of its luxury hotels contributes to a lower carbon footprint.
  • 29. ITC Hotels‟ commitment to Responsible Luxury has given it the unique distinction of being the greenest luxury hospitality chain in the world. Today, all „ITC Hotels‟- ITC Maurya, New Delhi; ITC Maratha; Mumbai; ITC Grand Central, Mumbai; ITC Sonar, Kolkata; ITC Windsor, Bengaluru; *ITC Gardenia, Bengaluru; ITC Kakatiya, Hyderabad and ITC Mughal, Agra are rated LEED Platinum by the U.S. Green Building Council (USGBC), for their commitment to perform to the highest standards of energy, water and waste efficiency and continuing to provide inspiration to the Green Building movement in India. (*Rated LEED Platinum by Indian Green Building Council-IGBC) Commenting on the distinction, Nakul Anand, Executive Director, ITC Ltd. said, “This coveted feat uniquely positions ITC as the first hotel chain in the world to have all its premium luxury hotels accorded the highest rating: LEED Platinum by USGBC. It exemplifies the credo of „Responsible Luxury‟ adopted by ITC‟s Hotels Division – delivering globally benchmarked quality, services and luxury in the greenest possible manner.” 2011 Government of India honours ITC Hotels with „Best Employer‟ National Award for Empowerment of Persons with Disabilities The Government of India, Ministry of Social Justice and Empowerment has conferred ITC Hotels with the 2011„Best Employer‟ National Award for Empowerment of Persons with Disabilities. The award was presented by Minister of Social Justice and Empowerment, Shri Mukul Wasnik, in recognition of ITC‟s philosophy of an „equal opportunities‟ employer in keeping with its policy to ensure respect for Human‟s Rights and Prevention of Discrimination at Workplace. Dipak Haksar, Chief Operating Officer, ITC Hotels received the award at a ceremony held at Vigyan Bhawan in New Delhi on December 3, 2011. ITC Hotels‟ human resources approach, in keeping with ITC‟s core values, promotes diversity and offers equality of opportunity to all employees fostering meritocracy in the organisation. It acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. This is achieved by ensuring that a non-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices.
  • 30. 2012 AIMA confers the Business Leader of the Year Award on Mr Y C Deveshwar, Chairman ITC For over 5 million people, many of whom represent the poorest in Rural India. His vision to make ITC a global exemplar in Sustainability practices has led ITC to become the only company in the world, of comparable size to be „carbon positive‟, „water positive‟ and „solid waste recycling positive‟. Mr Deveshwar's commitment to put Country before Corporation has not only inspired innovative business models that contribute meaningfully to societal development, but has also led to the creation of world-class Indian brands across ITC's businesses. Earlier, Mr Deveshwar was honoured with one of the highest civilian awards- the Padma Bhushan by the Government of India in 2011. Amongst several other awards and recognitions during his distinguished career, he has also been honoured with the Global Leadership Award by the US-India Business Council of the US Chamber of The All India Management Association (AIMA), India's apex body of professional management today conferred its Business Leader of the Year Award on Mr Y C Deveshwar, Chairman, ITC Limited at a function held this evening in New Delhi to commemorate the AIMA Managing India Awards 2012. Fiama Di Wills Men pioneers a new trend Unveils the Fiama Di Wills Men website in a first-of-its-kind web debut in India „”Innovation” is the foundation of all initiatives at Fiama Di Wills leading to creation of innovative products and engaging brand experiences. It manifests in ITC‟s leading personal care brand Fiama Di Wills continuous strives to create hallmarks of consumer trust through its range of unique bath care products and brand experiences.
  • 31. ITC in Saharanpur ORGANIATION STRUCTURE Branch Manager ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER (FOOD) (PCP) (CIGARATTE) AM AM AM (AREA MANAGER) AE AE AE (AREA EXECUTIVE)
  • 32. Area of diversification ITC has transformed itself from a leading cigarette manufacturer to an umbrella group that offers a diversified product mix to enhance its brand image and reduce dependency on tobacco related products. It has forayed into the hospitality service industry and has become a major player in the hotels segment. Its position in the FMCG (fast moving consumer goods) business is also on a growth curve; especially its confectionery and biscuits which are slated to achieve the top ranks among its peers. It has made heavy investments to strengthen its IT (information technology) segment and to compete with the big players like Infosys and Wipro. Although the ITC group is marketing its image as an ideal corporate citizen and a company that takes its social responsibility seriously, it still earns 80% of revenues from selling cigarettes and other tobacco related products. The major areas in which ITC has diversified are: FMCG Cigarettes Food Lifestyle Retailing Greetings and stationer Safety Matches Incense sticks Hotels Paperboards and Packaging Paperboards and specialty paper packaging Agri-Business Agri- exports E- choupal Information Technology
  • 33. ITC in FMCG Sector Cigarettes:- ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, NavyCut, Scissors, Capstan, Berkeley, Bristol and Flake. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. ITC‟s pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market. ITC offers high quality, value- priced cigarettes and Roll- your- won solutions. In west Asia,ITC has become a key player in the GCC markets through growing volumesofitsbrands. ITC‟s cigarettes are produced in its state-of-the-art factories at Bengaluru, munger, Saharanpur and Kolkata. These factories are known for their high level of quality, contemporary technology and work environment.
  • 34. Foods Ready to Eat: Keeping alive long forgotten culinary traditions, „Kitchens of India‟ presents its range of ready-to-eat cuisines. Each one of these legendary delicacies has been created by Master Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the ages, from one generation to the next Bukhara Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia and Europe. It was also a spot on the fabled Silk Route, a passage commonly used by traders, scholars and nomads. It was on this route that the unique Bukhara style of cooking was born. The Master Chefs of ITC Hotels have whipped up the delectable bite into history with this cuisine from the North-West Frontier Province with a masterpiece like dal Bukhara. Dal Bukhara Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered with prized indian spices over a coal fire, for long hours on end. Sunfeast (Biscuits) In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes happiness, contentment, satisfaction, and pleasure. The mascot sunny reinforces the emotional aspects of the brand. In span of 6 year sunfeast has launched many new variants and has its presence in almost all types of biscuit categories. Sunfeast immediately established itself as a provider of innovative and distinctive products - Sunfeast Marie was launched in an innovative orange flavour and the 'Sunfeast Dream Cream‟ range includes new flavours as well as flavour enhancers. The Sunfeast Dream Cream range is currently available in 8 variants. The Company has also introduced „Sunfeast Dark Fantasy', a dark chocolate and vanilla cream offering for the premium segment in select markets. Riding on the success of its initial offering, ITC also entered the milk biscuit category with
  • 35. Sunfeast milk magic biscuit. Apart from milk which helps mental growth, these biscuit also contain the finest quality wheat adding physical growth. In the last two years, the Sunfeast biscuits portfolio has been enhanced to include salted crackers and cookies. The 'Sun feast Snack' salted crackers are available in 2 unique variants – „Chilli Flakes‟ and „Classic Salted‟. Sunfeast's latest offering, 'Sunfeast Special‟ biscuits are also available in select markets. The Sunfeast Special range currently includes cookies in two variants– Butter and Cashew, as well as cream biscuits in two variants – Choco and Orange. The sunfeast product portfolio has been further expanded to include healthy snacks option. Sunfeast pasta treat is whole wheat based instant pasta for children After a tremendous success of the 4 initial flavours, the instant pasta range has been expended with two new exciting flavours – pizza, and chicken. The pasta segment was further expanded with the launch of sunfeast benne vita in 4 innovative variants. Confectionary:- ITC currently has two brands in the confectionery segment - 'mint-o' and 'Candy man'. ' Mint-o' was acquired by ITC from Candico in March 2002. ITC re-launched the compressed mint offering, across all major markets in India, with new and improved product and packaging. Available in the regular mint flavour with added blue specks to enhance consumer experience, mint-o is also offered in innovative 'Orange mint' and 'Lemon mint' flavours. 'mint-o' is available in two sizes – rolls of 20 and 6, capturing the international essence of „youthful cool‟ ITC launched the 'Candy man' range of confectioneries in August 2002. Led by the 'Candy man Fruitee Fun' range of assorted fruit flavours ('Wild Banana', 'Pineapple Punch', 'Orange Josh' and 'Mango Delite'), the 'Candy man' portfolio now includes deposited candy products like 'Candy man Butterscotch Licks' and 'Candyman Éclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The coffee toffee segment also saw the successful launch of 'Candyman Cofitino' in November 2005. Two new products – 'Candyman Natkhat Mango' and 'Candyman Maha Mango' were launched recently. The 'Candyman' range of confectionery is targeted at „fun-filled, naughty kids‟ who seek a delightful candy experience through a range of candy types and flavours.
  • 36. Bingo! ITC's new snacks brand Bingo! Marks the company's foray into the fast growing branded snacks segment. The launch of Bingo! Represent ITC fifth major line of foods business after highly successful staples, biscuit, Ready to eat and confectionary business. The launch of Bingo! is symbolic of ITCs' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place. The initial offerings from Bingo! include an array of products in both Potato Chips & Finger Snacks segment. The Potato Chips offerings comprise four innovative variants inspired by the snacking habits of different parts of the country as well as masala, salted and tomoto flavors.Additionally, a south- inspired dairy option has also been introduced under the potato chips offering. ITC in Agricultural Industry ITC's International Business Division (IBD) is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports of : Feed Ingredients- Soyameal Foodgrains – Rice (Basmati & Non basmati), wheat, pulses Edible Nuts – sesame seeds, HPS Groundnuts, castor oil Marine products – Shrimps and prawns Processed fruits – Fruit purees/ concentrates, IQF/Frozen fruit, organic fruit, Fresh fruits Coffee & Spices – coffee, Black pepper, Chilly, Turmeric, Ginger, Celery, and other seed spices. Although one of the relatively younger business divisions of ITC, it has, in a short span established itself as a first-choice supply chain partner of several leading international customers. Its major customers include Cargill, marubeni, Toepfer, among others, who source agriculture commodities and food products from India. Its customer relationship management has enabled it to achieve a very high reputation for quality, reliability and value added services.
  • 37. ITC's unique strength in this business is the extensive backward linkages it has established with the farmers. This networking with the farming community has enabled ITC to build a highly cost effective procurement system. ITC has made significant investments in web-enabling the Indian farmer. Christened 'e-Choupal', ITC's web plan for the farmer centres around providing internet kiosks in villages. Farmer use this technology infrastructure to access on- line information from ITC‟s farmer friendly website. Data access by the farmers related to the weather, crop condition, best practices in farming, ruling international prices and a host of other relevant information. Currently, the 'e-Choupal' website - www.echoupal.com - provides information to farmers across the nine States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala. ITC plans to extend the 'e-Choupal' to cover 10 million farmers across 100,000 villages covering 15 Indian states. ITC‟s International Business Division, one of India‟s largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. STRATEGIES OF ITC ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. • Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. ITC’s corporate strategies are • Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology • Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. • Ensure that each of its businesses is world class and internationally competitive. •
  • 38. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC‟s various businesses • Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. • Continuously strengthen and refine Corporate Governance processes and systems to catalyses the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control accountability. 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 To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value Sun feast profile Snack foods Sunfeast In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits. Sunfeast‟s brand essence, "Spread the Smile" connotes happiness, contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of the brand. In a span of 6 years Sunfeast has launched many new varieties and has its presence in almost all types of biscuit categories. Sunfeast Milky Magic Packed with goodness of milk these deliciously nutritious crisp and crunchy biscuits are a favourite among mothers and kids. Milky Magic has the „power of 2‟ - A perfect balance of energy that aids physical strength and mental ability. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child.
  • 39. Sun feast Marie Sun feast Marie Light: This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day. Orange Marie: It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all. Sun feast Golden Bakery Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform. Launched nationally in March 2008, these cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are available in three distinct flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. These products are designed to give consumers a rich & truly indulgent experience. Sun feast Dark Fantasy Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit; it‟s a luxurious mix of aromatic cocoa and vanilla. Sun feast Glucose For those light hunger pangs, a wholesome & nutritious choice as these golden brown biscuits is made from the best quality wheat. Sunfeast Glucose biscuits are ideal not just for kids but adults too. Sun feast Dream Cream
  • 40. A truly scrumptious range of cream biscuits that have become an instant hit with children. ITC‟s chefs have put their legendary skills into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy flavor linger on. Strawberry Cream Bourbon The first of its kind cream biscuit with a special delight for all those chocolate special strawberry flavor crystals that will lovers. Orange Cream & Butterscotch Cream Experience a tangy twist in biscuits with Another first, the taste of ice-cream in every Orange cream cream biscuits. Mango Cream & Elaichi Cream A special summer flavour cream biscuits Taste the queen of spices in cream for all those who love the king of fruits biscuits. Sunfeast Snacky Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other. From kids to adults, it‟s the quintessential „Family Biscuit‟. Available in two variants, Classic salted and Chilli flakes - the very first of its kind in India. Sunfeast sweet 'n salt These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste! Sunfeast Nice These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will just go on to make all those nice moments nicer.
  • 41. Sunfeast Benne Vita Flaxseed Biscuits If Benne Vita in Italian stands for „Good Life‟, then Benne Vita Flaxseed biscuits just make the good life better. The Flaxseed content in these protein and mineral enriched biscuits are rich source of Omega III acids that helps control cholesterol. Flaxseed is the richest plant source of these essential Omega-3 Fatty Acids. It is also rich in dietary fibre, proteins, calcium and other minerals to maintain healthy heart and good gut health. Sunfeast Special ITC Sunfeast presents a range of Special cookies and creams. Special Cookies: Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with real butter and the finest ingredients to give a mouth-watering treat that makes every moment special. Available in Cashew/ Butter/ Coconut. Special Creams: Delicious value for money cream biscuits with a thick layer of cream sandwiched between two biscuits. Available in Orange and Chocolate variants. Sunfeast Pasta The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options as well. Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.
  • 42. How ITC turned biscuits business around. Biscuits and tea in the morning were a routine. So were the key market players and their favourite products. The two major players Britannia [Get Quote] and Parle were busy biting of chunks of the national market among themselves, with a host of smaller brands in various regions. While the business was still very competitive, there wasn't anything groundbreaking. In 2003, with ITC foraying into the segment, a lot of that changed. At that time, Britannia and Parle held, between them over 82 per cent of the market in value terms. The rest too was firmly held by smaller players like Priya Gold which had a strong presence in the north. So, in essence, the market already had strong well entrenched players. So how could a late entrant like ITC make its mark? Six years down the line, however, things have changed a lot. It is a classic story of the hare and the tortoise. While it is far from winning the race, slowly and steadily, the tortoise is gaining ground. The late entrant is already on the podium in the third place with as much as 7 per cent of the market in terms of value. "ITC made hay when the sun wasn't shining," says a consultant who's been tracking the industry for a long time. But first, why did ITC train its eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple. "We decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion) market in India. But only 6 per cent of this is branded and packaged. In developed markets, nearly 95 per cent of the food market is branded and packaged. So there was lot of scope for a branded player In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market has grown at 12-14 per cent year-on-year. Then, there was a business synergy. ITC was already value-adding to wheat with its branded atta presence. By entering the biscuits segment, it could also improve its bottomline further. But despite the fast growth rates, the biscuits industry was not all rosy. Over the years, even giants like Hindustan Lever had failed. For instance, HLL which had flirted with biscuits under the Max brand exited in 2005. But ITC's Sunfeast has a different story to tell so far. the strategist looks at the gameplan of a late entrant and how the biscuits industry has responded.
  • 43. New recipe Before entering the segment, ITC dug into market research. Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products. That was precisely what the competition had not done in a big way. Says Naware, "The biscuits industry had witnessed little innovation; Glucose was Glucose and Marie was still Marie." The company decided that this could be its biggest point of attack. In 2003, ITC launched Sunfeast with six ranges. But it was a calculated risk. ITC stuck to category favourites like Glucose, Marie and Bourbon cream Along with that, it also launched innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magic. More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes. Analysts believe that just because Sunfeast was a new brand, helped matters. Says a consultant, "The biscuits industry had not witnessed any major product innovation in years. Consumers were just waiting for something new, something fresh, when Sunfeast happened." Even the competition had not made things better. Between 2000 and 2005 neither Parle nor Britannia launched any major new product. Yes, Britannia did re-launch its Tiger brand in 2005. But Britannia claims that it is looking at more than just products. Richa Arora, general manager and head of marketing and innovations, Britannia Industries, says, "We are not just looking at new products, but tapping newer opportunities -- such as different occasions as well as out-of-home consumptions." In 2005, before Diwali, Britannia launched Occasions -- boxes of assorted biscuits priced between Rs 50 and Rs 200 -- which the company claims has been very successful. In 2006, however, the industry has seen a flurry of innovations from the big two. Digestive Marie -- was launched by Parle in early February 2006. Britannia launched its new double- flavoured Mariegold and 50-50 Chakkar. And Parle is all set to launch at least two new products before the end of this year.
  • 44. Distribution maze It's common knowledge, that for FMCG products, distribution channels are very important. Says Pravin Kulkarni, general manager, marketing, Parle Products, "For biscuits, distribution and visibility are extremely important as it's partly a impulse purchase product." And in biscuits, setting up a distribution channel is anything but easy. Consider this. Priya Gold, which entered the western region in 2000, is struggling to find its feet even eight years later. However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC already had a good understanding of distribution channels. The company used its existing network of convenience stores -- the company's name for the hole-in-the-wall pan-beedi shops -- for Sunfeast. Not content with the existing resources, the company also looked at grocery stores and other retail formats. The company says the brand is now available in nearly 1.8 million outlets. Britannia claims it has a superior distribution clout with its presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is available in 1.5 million outlets. Sunfeast's next step was to step up its branding and promotion. Ad thrust In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds -- riding behind buses, blocking television spots, booking that corner space in your favourite newspaper and so on. Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself. In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador. In the same year, as the official sponsor of the WTA tennis championship -- titled the Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. But that's not all. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador.
  • 45. Analysts say that ITC's deep pockets have helped Sunfeast in many ways. The company claims that it has been spending 35-40 per cent of its turnover from the biscuits segment on advertising and promotions. Going by that number, ITCs annual marketing spends are estimated to be in the region of about Rs 115-120 crore (Rs billion). Until last year, Priya Gold spent close to Rs 45-50 crore (Rs billion), nearly 10 per cent of its turnover on marketing. Even market leader Britannia with spends of Rs 100 crore (Rs billion) (2004-05) spends about 10 per cent of sales on marketing. But Arora says that the figure will increase substantially in 2006-07. ITC is clearly among the largest spender on ads and promotions in the biscuits category. Analysts predict that these figures are all set to rise this year. But industry experts aren't impressed. Says a consultant, "Although Sunfeast's Shah Rukh Khan Association is interesting, it is yet to do something groundbreaking, like Britannia khao world cup jhao or the Lagaan promotion for that matter." Pricing models The biscuits industry now has two clear models. Parle products play the low price game at all varieties of biscuits from glucose to cream. Essentially, Parle plays a high volume, low margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. To be fair, in Glucose and Marie, the companies have little choice. As there is little differentiation, consumers are extremely price sensitive. But these segments are important. Marie and the popular glucose varieties make up for nearly 55 per cent of the Rs 4,000 crore (Rs billion) biscuits segment -- a significant Rs 2,200 crore (Rs billion). Says Sunil Alagh, chairman, SKA Advisors, and former CEO of Britannia Industries, "the biscuit consumer is willing to pay more only when he sees a clearly differentiated product. Hence companies have little choice in terms of pricing." No wonder all the Glucose and Marie variants straddle price points of Rs 4-6 (for 100 grams)
  • 46. Key challenges Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands. Says Naware, "Seven per cent in less than three years is something that we could have only dreamt about." Importantly, industry barometer AC Nielsen has indicated that both Parle and Britannia are losing market shares. According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have lost volumes. Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per cent in May 2006 (volumes). Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent. ITC's Sunfeast has been a big gainer with its share increasing from 2.7 to 6.7 per cent. In terms of value, Britannia leads the market with 37 per cent market share, followed by Parle's 31.3 per cent and ITC's 6.3 per cent. Nevertheless, the gap is still wide. Sunfeast still has a long way to go. But what can the bigger players do? Alagh has an interesting observation. Says he, "Biscuits have always been a low margin, high volume game. Both Britannia and Parle have very high volumes and can easily afford to lower their margins." A potential after-effect? Sunfeast too may have to drop its prices to be in the reckoning and this will squeeze its margin even lower. While the full game is yet to be played outfor the moment the sun seems to be shining on Sunfeast.
  • 48. RESEARCH METHODOLOGY This chapter describes the methodology of the study. This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of performance of ITC sunfeast biscuit versus britinnia and parle, consumed by the people. The data had been used to cover various aspects like consumption, retailer‟s preference and retailer‟s satisfaction, regarding Sunfeast Britinnia and Parle. In collecting requisite data and information regarding the topic selected, I went to the retailers of hatidwar and collected the data. Survey design: The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience. Sample Size and Design: A sample of 100outlet was taken on the basis of convenience. The retailers were contacted on the basis of random sampling Research Period: Research work is only carried for 2 or 3 weeks. Research Instrument: This work is carried out through self-administered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices.
  • 49. Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The primary data comprises information survey of “UNDERSTANDINGTHESALE SYSTEM OF I.T.C ANCOMEPARITIVE ANALYSIS OF SUNFEAST BISCUIT, BRITANNIA & PARLE”. The data has been collected directly from respondent with the help of structured questionnaires. Secondary source: the secondary data was collected from internet and reference from library. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that I have used is bar graphs.
  • 50. Object of the project Defining the objectives is the most crucial part of the research. If the objectives are not clear the researcher cannot identify the problem and thus cannot find a way of the problem. This project is based on the study of relative performance towards ITC sunfeast, Britannia and parle biscuits. Objectives of the study are: 1. To study the company (ITC LTD) profile, product line, and SKUs of Sunfeast biscuits. 2. To study the relative performance of Sunfeast biscuit versus Britannia and Parle. 3. To study the visibility, supply, distribution channel, promotional activities, of Sunfeast in market. 4. To study the retailer‟s preferences, margin, product awareness and perception. 5. To know about the organizational hierarchy of ITC LTD.
  • 51. Scope of the study As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists do not agree on how learning takes place. How individuals learn is a matter of interest to marketers. They make aware to the customer about their product, quality, benefits and promotional activities. They want to teach retailers in their roles as their roles as consumers. They want retailers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfy not only the consumer‟s needs, but the marketer‟s objectives. The scope of my study restricts itself to the analysis of the visibility, supply, distribution channel, promotional. There are many other brands of biscuit available but my study is limited to three major players of buscuit leaving behind the others. The scope of my study is also restricts itself to Haridwar region only.
  • 52. Limitations of the study In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind. Nevertheless, despite of fact constraints were at play during this project. The main limitations are as fellow:- 1. Due to limitation of time only few outlet were selected for the study. So the sample of retailers was not enough to generalize the finding of the study. 2. The main source of data for the study was primary data with the help of self-administered questionnaires. Hence, the chances of unbiased information are less. 3. People were hesitant to disclose the true facts. 4. The chance of biased response cannot be eliminated though.
  • 54. DISTRIBUTION CHANNEL OF ITC MANNUFACTURING PLANT W.S.P WHOLESALE DISTRIBUTER DISTRIBUTER SALESMAN RETAILERWHOLESELLER CONSUMER
  • 55. DISTRIBUTION CHANNEL OF ITC ITC provides products and services of superior quality and value by sourcing its technologies, equipment and inputs from reputed international and Indian manufacturers and suppliers. Common values, relating to human rights performance, are shared across the entire supply chain because ITC is committed to the importance of a socially responsible and accountable supply chain. As a large and multi-product enterprise whose products are benchmarked nationally and internationally, ITC's main supply chains can be grouped as follows: 1. For all its operations, technology, machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow internationally accepted norms and standards on human rights. 2. ITC's major businesses are vertically integrated across several Divisions. A substantial part of the supply chain is therefore internal through strategic backward linkages. Common values relating to human rights performance are shared across this supply chain. 3. Being a major agric-based company, the agriculture sector is a major supplier of inputs for its operations. The bulk of agricultural commodities are procured from state controlled trading platforms and the open market. A very small proportion of ITC's business consists of supply chains comprising local vendors and suppliers. The policy framework for such entities is enunciated separately in 'Policy to Ensure Respect for Human Rights across the Supply Chain'
  • 56. Operations at the WD shop WD Constitution and its Importance Every WD firm has a constitution, which is a legal document that authorizes the owner to carry out the ITC distribution business under a specified enterprise name, accompanied with a specimen signature of the Proprietor and manager. In case, the firm has partners, they have to give a certification by the 1st of January every year. POP Register and Uses POP register is a monthly record of the quantity of different types of POPs at the WD godown. This is prepared at the end of every month, and a copy is also sent to the branch. The POP register can be used to check whether the Cycle plan inputs were given. This is basically a track of the POP given and thus can be used if the POP provided was used properly at the focus markets. D and D Register The D& D register is a record of amount and value of D&D of different brands (SKU wise), that is held by a given WD at any point of time. The WD can claim for the amount from the company. This register can be used to track the amount of D & D, which is being received, and if it is large a corrective action may be initiated. Once every quarter, a company official (AM) inspects the D &D. The different types of D &D have been described earlier.
  • 57. Binders of the AE’s. It consists of the following different parts: Industry Summary Volume This records the total food industry ---a detailed summary of ITC, competition and transit trade both market share and market wise. Along with the previous two years it also shows the quarterly, monthly and yearly average performance. This can be used to keep a track over the industry as a whole and the trends---- the change in market share, growth rate by vol. etc Total Consolidated Brand Card The brands are segmented into KSFT, RSFT, LONGS, PLAINS and BINGOS and the performance of the brand for the past 4 years (avg) and monthly analysis of each brand in the current year is recorded. This is used to track the trends brand-wise i.e. to check which brand is moving etc. If the brand sales are decreasing, we have to see to which brands have these sales shifted to and then figure out the reason .e.g. an increase in prices leading to downgrading. Weekly sales Analysis It gives the % sales per week of the total sales of the month. Ideally for the first 3 weeks it should be 7/30*100 (23.3%) and 10*100/30 for the last week(30%) depending on whether the month is 30 or 31 day month. A deviation of 2% of the above value may be allowed. Industry Brand Segment Analysis This is similar to the Total Consolidated Brand Card, but is done for the competition brands and is used to check their trends and the brands –wise changes in sales and try to correlate the changes with the comparable brands of ITC. Volume by POP Groups This gives the total food industry volume in each of the different POP groups market of the section. This is used to understand and track how a particular POP group is behaving and the sales trends there--- and can be used to determine if an action specific to that POP ought to be taken.. The performance in the past years is also given for performance comparison..
  • 58. Stock Position Report Stock Position Report is sent by the WD at the end of every week and is basically an account of the brand-wise Opening SOH Closing SOH and its value. Track Receipts and Transfers at the WD point. Volume and the value of sales made in last week and cumulative sales for the month Remittances made by the WD to date The oldest Stock date at the WD (to check the freshness of the stock). The D & D of each brand to date. A comparison of the Last Month sales and ECD to the sales to date can be made to check the performance The closing SOH is done as: Closing Stock = Opening Stock - Sales this week + Receipts – Transfers. This is done brand wise and multiplied by the price to determine the value of SOH. Role of the Supervisor Implement trade-marketing activities at the outlet level. He is an aid to sell out and thus increase the customer sales. Train DS---He is responsible for his territory and thus sets target for the DS, training and motivating him. Business advice to the customer. Steps of the Call of the Supervisor: Preparation He checks outlet details prior to the call and set objectives for every call. To meet these objectives he organizes his resources. Approach
  • 59. Visually collects and records information about environment of the outlet and observes the inside (for POP, visibility, Foods etc) and outside(for on-shop displays) of the outlet. Stock Check He looks at the availability of the products (own and competition) and examines their stock levels, to track trends and check whether the required pipeline is there or not. To ensure the stock freshness he also ensures that the appropriate code date product is there stock). He also ensures that stock rotation and FIFO is being carried out. . DS Call A DS call is also given to each outlet once a week. This call is made along with the relevant hawker on the route and is a sort of training and performance checks of the hawker. On this call he checks the SOH, the code date and takes up other issues ROLE OF A DS DS---- Distribution to the retailers. A DS may be an independent businessman or employed by the WD generally for deep inland markets. How does a DS start his day? Picks up stock from the WD point according to his requirement for the route. Takes care of bills to be issued Takes up the issues of the day The DS covers 30 outlets on his route. The activities of the DS have been divided into suitable rote and collect the order .
  • 61. MAJOR COMPETITORS OF SUNFEAST BIACUIT
  • 62. MAJOR COMPETITORS OF SUNFEAST BUISCUIT BRITANNIA PARLE
  • 63. ABOUT BRITANNIA COMPANY PROFILE- The company enjoys a share of 32% in the market in terms of volume. Started way back in 1892 with an investment of Rs. 295, biscuits were manufactured in a small house in central Kolkata. Later, the business was acquired by the Gupta brothers and operated under the name of V.S. Brothers. In 1918, C H Holmes, an English businessman in Kolkata was taken as a partner and „The Britannia Biscuit Company Limited (BBCo)‟ was launched. The Mumbai factory was setup in 1924 and Peak Freans, UK acquired a controlling interest in BBCo. Biscuits were in big demand during World War II, which gave a fillip to the company‟s sales. BBCo celebrated its golden jubilee in 1968 and the company name was changed to the current Britannia Industries Limited in 1979. In 1982 Nabisco Brands Inc., USA became a major foreign shareholder. Ten years later in 1992, Britannia Industries Limited celebrated its platinum jubilee. The following year, the Wadia Group acquired a stake in ABIL, UK and became an equal partner with Groúpe Danone in Britannia Industries Limited. Product Britannia has restructured its portfolio of products at regular intervals. This strategy has enabled it to serve the key needs of the Indian consumer across age groups and diverse consumption situations, through an optimum range of brands. The success of this strategy enabled Britannia to reduce the number of focus-brands from 24 in 1998, to nine in 2001. All its product offerings derive their premium qualities from the principles of health and taste. This key premise has led to the evolution of a lifetime menu where a Britannia product exists for every stage in a person‟s life. The highest consumption group for biscuits are children; here Britannia offers Milk Bikis with all the „goodness of milk‟ required by younger kids, while the Tiger brand is aimed at 7-14 year olds and provides them with the exuberant health required by „winners of tomorrow‟. Another offering for children – Treat, a range of delicious cream biscuits – is meant as a treat for children during fun times.
  • 64. A particularly notable success has been Little Hearts, meant for teenagers and kids, to target group which did not snack on sweet biscuits. The company moved into the mass market for biscuits introducing low priced varieties under the umbrella, Tiger. PRODUCT RANGE 50:50 MARIEGOLD BOURBON PURE MAGIC NICE GLUCOSE-D GOOD DAY SNAX COCONUT CRUNCHIES Achievements Britannia is synonymous with the rise and growth of the biscuit industry in India It brought the health dimension to an industry that was traditionally driven by taste alone. This is reflected in Britannia‟s brand slogan, introduced in 1997 that exhorted consumers to „Eat Healthy, Think Better‟. This was quickly embraced by the entire industry to come up with similar promotional campaigns showing biscuits to be an epitome of a healthy, happy diet. Britannia‟s products retail in over 2 million outlets selling approximately 200 million packs a month. With millions of happy consumers every month, Britannia is considered to be one of the most trusted food brands in India. Britannia has also successively made the Forbes List of 200 Best Small Companies in the world for the years 1999, 2000 and 2002.
  • 65. The four metros account for 65% of the sales of Britannia. Britannia industries has acquired 49% stake in Kwality Biscuits. DISTRIBUTION CHANNEL OF BRITANNIA MANNUFACTURING PLANT DEPO WHOLESELLER RETAILER CONSUMER DISTRIBUTER SALESMAN
  • 66. ABOUT PARLE Parle enjoys a 43% share of the total biscuit market. A long time ago, when the British ruled India, a small factory was set up in the suburbs of of Mumbai city, to manufacture sweets and toffees. Despite the odds and unequal competition, this company called Parle Products, survived and succeeded, by adhering to high quality and improvising from time to time. A decade later, in 1939, Parle Products began manufacturing biscuits, in addition to sweets and toffees. Having already established a reputation for quality, the Parle brand name grew in strength with this diversification. Parle Glucose and Parle Monaco were the first brands of biscuits to be introduced, which later went on to become leading names for great taste and quality. Parle is the second largest producer of biscuits in the organized sector. In the popular brands segment, its Parle G remains a popular brand in the glucose biscuit segment AND IS WORLD‟S LARGEST SELLING BRAND OF BISCUIT. In the premium segment, its HIDE & SEEK is attracting competition due to the sway it holds in the market place. In the saltish biscuits, Monaco has been quite popular, especially in the cocktail circuit. PRODUCT RANGE- HIDE & SEEK PARLE-G PARLE-G MAGIX
  • 67. PARLE-G MILK SHAKTI KRACKJACK MONACO MARIE CHOICE MONACO BITES FUN CENTRE ACHIEVEMENTS- Be it a big city or a remote village of India, the Parle name symbolizes quality, health and great taste! This reputation has been built, by constantly innovating and catering to new tastes. This can be seen by the success of new brands, such as, Hide & Seek. In this way, by concentrating on consumer tastes and preferences and emphasizing Research & Development, the Parle brand grows from strength to strength. The extensive distribution network, even in the most remote places and in the smallest of villages with a population of just 500. Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots supplying goods to the wide distribution network.. Designing products that provide nutrition & fun to the common man. Most Parle offerings are in the low & mid-range price segments. This is based on our cultivated understanding of the Indian consumer psyche. The value-for-money positioning helps generate large sales volumes for the products. Parle-G sells the most because it is the cheapest biscuit in the branded category. Most Parle offerings, unlike Britannia, are mass brands in the low and mid-range price segments. As it has been around for over 60 years, it has a loyal consumer base However, Parle Products also manufactures a variety of premium products for the up-market, urban consumers. And in this way, caters a range of products to a variety of consumers
  • 68. DISTRIBUTION CHANNEL OF PARLE MANNUFACTURING PLANT WAREHOUSE WHOLESELLER RETAILER CONSUMER STOCKEST DISTRIBUTER SALESMAN
  • 69. CHAPTER- 6 DATA ANALYSIS AND INTERPRETATION
  • 70. BASED ON RETAILER ANALYSIS OF THE STUDY ON RETAILER Q1 Which company give you batter margin.? a) I.T.C. b) Parle c) Britannia d) Other
  • 71. From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 27 people are says Britannia give the better margin I.T.C says 26 people , 24 people says parle and 23 people says other. Q2. Which company exchange your defected products immediately? a) I.T.C. b) Parle c) Britannia d) Other 21 22 23 24 25 26 27 28 I.T.C. Parle Britannia Other Series 1 Series 2 Series 3 series 4
  • 72. From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 28 people are says Britannia exchange the defacted product immediately ,I.T.C says 22 people , 30 people says parle and 20 people says other. . Q3. Are you satisfied with the service of ITC company? a). Yes b). No 0 5 10 15 20 25 30 35 I.T.C. Parle Britannia Other Se Se Se ser
  • 73. From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 90 people are satisfied wih the I.T.C service and 10 people are not satisfied of I.T.C service Q4. Which company provide better service? a) I.T.C. b) Parle c) Britannia d) Other Yes No
  • 74. From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 28% people says I.T.C provide better service , 26%says parle and 24% Britannia ,22% other Q 5. How do you come to know about sunfeast biscuit? FACTORS NUMBER OF RESPONDENTS ADVERTISEMENT 60 0% 5% 10% 15% 20% 25% 30% I.T.C Parle Britannia Other Series 1 Series 2 Series 3
  • 75. FAMILY / FRIEND 20 RETAILER 15 ANY OTHER 5 From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 60 people know sunfeast biscuit through Advertisement while 20 people through family and 15 people follow by Retailers Q 6. which brand of biscuits you prefer to stock? 0 10 20 30 40 50 60 70 NUMBER OF RESPONDENTS NUMBER OF RESPONDENTS
  • 76. From the above chart we can infer that 33% of the retailers favors Parle Britannia 20% of the retailers favors Britannia, 17% favors Sunfeast and the rest of them favors other brands. Q7. What is the time gap between order capture and delivery? Sunfeast Parle Britannia Others
  • 77. sameday 10 50 60 0 1 day 82 30 22 65 2 days 8 20 28 15 3 days 0 0 0 20 This chart explains that the time gap between order capture and delivery is maximum in day 1 and for some on the second day. Q8 Have you ever tried Sunfeast? Yes ___ No ___ 0 10 20 30 40 50 60 70 80 90 I.T.C parle Britannia other sameday 1 days 2 days 3days
  • 78. From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 97 people says yes and rest of no . Q9. Which flavours does you like the most? SUNFEAST GLUCOSE BISCUITS ______ SUNFEAST MARIE LIGHT ______ yes No
  • 79. SUNFEAST CREAM BISCUITS ______ SUNFEAST SPECIAL BUTTER ______ SUNFEAST SPECIAL CEASEW ______ SUNFEAST BOURBON CREAM ______ SUNFEAST DARK FENTESY ______ From the above analysis of given sample of 100 respondents it is concluded that out of 100 people most like sunfeast glucose and sunfeast cream. Q10. Compared to other BISCUITS (such as PRIYAGOLD BISCUIT , BRITANNIA, and PARLE etc.) That are available, would you say that Sunfeast is? Much better ___ Some Better ___ 0% 5% 10% 15% 20% 25% SUNFEAST GLUCOSE BISCUITS SUNFEAST MARIE LIGHT SUNFEAST CREAM BISCUITS SUNFEAST SPECIAL BUTTER SUNFEAST SPECIAL CEASEW SUNFEAST BOURBON CREAM SUNFEAST DARK FANTESY Series 1 Column1
  • 80. Same ___ Some Worse ___ Much Worse ___ From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 44 people says Much better ,25says Some better,20 Same.8 Some worse,3says much worse. Q11 Before switching on to Sunfeast, which BISCUITS (did you prefer? PRIYAGOLD BISCUIT _________ BRITANNIA _________ 0 5 10 15 20 25 30 35 40 45 50 Much better Some better Same Some Worse Much Worse
  • 81. PARLE _________ From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 40people says parle ,32says Britannia and rest of says priyagold. Q12. What do you like about Sunfeast? Taste ___ Quality ___ 0 10 20 30 40 50 priyagould Britannia Parle Series 1 Series 1
  • 82. Price ___ Quantity ___ Packaging ___ From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 28%people says taste ,42%says quality and3% price,16%quanyity,10%packaging. CHAPTER- 7 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% taste quality price quantity packaging Series 1
  • 83. SWOT ANALYSIS, FINDINGS AND RECOMMENDATION FINDINGS
  • 84. 1. Most of the people prefer low price of biscuit. 2. Cream biscuit are most preferred between customers. 3. Most of the people prefer the Britannia biscuit. 4. People switch over the other brands for to change the taste. 5. People are aware of Sunfeast brand through media and they are aware that they are the ITC product. 6. Sunfeast customer like its biscuit due to its quailty. 7. Sunfeast biscuit packaging is preferred over other brand like Britannia and Parle. 8. Sunfeast biscuit are available at customer neighbourhood. 9. Customer of Sunfeast biscuit feel that the price may be lower to in hence the market share. 10. Retailer are satisfied with the service of I.T.C. 11. I.T.C delivery system is some low. 12. Somecompaney give the more margin 13. Exchange the defacted product immediately.
  • 85. SWOT ANALYSIS STRENGTHS: 1. ITC is one of India's foremost private sector companies. 2. ITC leveraged it traditional businesses to develop new brands for new segments. . For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. 3. ITC ranks among India's top 10 Most Valuable (Company) Brands. 4. It has market capitalization of nearly US $ 18 billion. 5. ITC has a diversified presence in Cigarettes, Hotels, Paper boards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. 6. ITC's Agri-Business is one of India's largest exporters of agricultural products.