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Synopsis of Itc

ITC Limited is one of India's largest conglomerates operating in sectors like FMCG, hotels, paperboards, packaging, agribusiness, and IT. Founded in 1910 as a tobacco manufacturer in Kolkata, over a century it has transformed into a multi-business enterprise focused on sustainability and social responsibility initiatives like e-Choupal and watershed development programs. The company aims to be a leader in each business by creating value for stakeholders in a globalizing environment.

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40 views

Synopsis of Itc

ITC Limited is one of India's largest conglomerates operating in sectors like FMCG, hotels, paperboards, packaging, agribusiness, and IT. Founded in 1910 as a tobacco manufacturer in Kolkata, over a century it has transformed into a multi-business enterprise focused on sustainability and social responsibility initiatives like e-Choupal and watershed development programs. The company aims to be a leader in each business by creating value for stakeholders in a globalizing environment.

Uploaded by

niashantsinghania77177
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ITC Limited is one of India’s largest and most diversified conglomerates, with a

presence in various sectors such as FMCG, hotels, paperboards and packaging,


agribusiness, and information technology. The company has a history of over 100
years, starting from its humble origins as a tobacco manufacturer in Kolkata in 1910.
Over the decades, the company has transformed itself into a multi-business enterprise
that aims to create value for the nation and its stakeholders.

1. The company’s journey can be divided into four phases:

 The first phase (1910-1975) was marked by the establishment and


consolidation of the tobacco business, which remains the company’s main
source of revenue till date. The company also set up its packaging and printing
business in 1925 as a backward integration for its cigarettes business.
 The second phase (1975-1990) witnessed the diversification of the company
into new sectors, such as hotels, paperboards, and agri-business. The company
also changed its name twice during this period, from Imperial Tobacco
Company of India Limited to India Tobacco Company Limited in 1970, and
then to I.T.C. Limited in 1974.
 The third phase (1990-2006) saw the expansion and growth of the company’s
non-tobacco businesses, especially in the FMCG segment. The company
launched several successful brands, such as Aashirvaad , Sunfeast, Bingo,
Classmate, Fiama Di Wills, and Savlon. The company also entered the
information technology sector with the establishment of ITC Infotech in 2000.
The company rechristened itself as ITC Limited in 2001, dropping the full
stops in its name.
 The fourth phase (2006-present) is characterized by the company’s focus on
sustainability and social responsibility. The company has adopted a triple
bottom line approach that balances economic, environmental, and social
performance. The company has also initiated several innovative initiatives,
such as e-Choupal, which empowers farmers through digital connectivity;
Social and Farm Forestry, which creates green cover and livelihoods; and
Integrated Watershed Development, which conserves water resources and
enhances soil quality.

The company’s vision is to be a leader in each of its businesses by creating enduring


value for the nation and its stakeholders. The company’s mission is to enhance the
wealth-generating capability of its enterprises in a globalizing environment, delivering
superior and sustainable stakeholder value.

The company has received several awards and recognitions for its achievements and
contributions, such as:
 Savlon Grand Prix 2018 at Cannes Lions for its creative effectiveness
 Porter Prize 2017 for excellence in corporate governance and integration
 Safaigiri Award 2016 for corporate trailblazer
 World Business Development Award 2012 at Rio+20 UN Summit for its social
and farm forestry initiative
 AIM Asian CSR Award 2012 for creating sustainable livelihoods and fostering
economic growth in rural communities
 Businessworld FICCI CSR Award in Large Enterprise category
 The Corporate Award for Social Responsibility 2008 from TERI for
implementing integrated watershed development programmes

The company faces several challenges in its operations, such as:

 Overreliance on the tobacco business, which is under threat from heavy


taxation and regulations
 Negative public perception of the tobacco industry
 Disadvantageous tobacco regulatory environment
 Business disputes with some of its joint venture partners
 Competition from other FMCG players
 Slowdown in consumer demand due to economic factors

The company is taking various steps to overcome these challenges, such as:

 Diversifying its portfolio into new categories and segments


 Investing in research and development to innovate new products and services
 Leveraging its e-Choupal network to reach rural markets
 Enhancing its brand equity and customer loyalty through effective marketing
campaigns
 Strengthening its distribution channels and supply chain efficiency
 Adopting best practices in corporate governance and ethics

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