Professional Documents
Culture Documents
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Profile
One of Indias most Admired and Valuable companies
- Market Capitalisation: ~Rs. 3.5 lakh crores
10 year Value Addition ~ Rs. 2.8 lakh crores (US$ 51 billion). 75% of the incremental
Value-Added accrued to the Exchequer over the last 5 years.
- Among the top tax payers in the country
ITC & its Group Companies employ over 32,000 people directly; Sustainable development
models and value chains have supported creation of ~6 million sustainable livelihoods
A global exemplar in sustainable business practices
- Only enterprise in the world of comparable dimensions to have achieved and sustained the 3 key
global indices of environmental sustainability of being 'water positive' (for 15 years), 'carbon
positive' (for 12 years), and 'solid waste recycling positive' (for 10 years)
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ITC remains amongst the Top 3 Contributors to Exchequer (pvt. sector)
Rs. cr.
21-yr Cagr
1995-96 2016-17
95-96 to 16-17
Market Cap and TSR based on FY-end prices for FY96 and FY17
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ITCs ranking
Amongst all listed private sector cos.
PBT: No. 5
PAT: No. 6
Market Capitalisation: No. 4
Note: Based on Published Results for FY17, Market Capitalisation based on 30th Jun 2017
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Awards & Accolades (1)
ITC ranked as the most admired company in India in 2014 (Fortune-Hay Group
survey)
ITC won the prestigious Porter Prize 2017 for 'Excellence in Corporate
Governance and Integration' and for its exemplary contribution in 'Creating
Shared Value'.
ITC ranked most active in CSR for the third year in a row (Nielsen Corporate
Image Monitor 2014-15)
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Awards & Accolades (2)
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Awards & Accolades (3)
ITC Hotels
awarded the
Best Overall
Most Trusted
Corporate Social
Hotel brand
Responsibility
in the Public
Performance:
Choice
Institute of Public
Honours
Enterprise
category at
the Times
Travel
Honours
8
Recent Awards & Accolades (1)
ITC named India's 'Buzziest' Corporate brand Vivel featured among the top 10 Buzziest
by afaqs!, the country's leading media portal brands across categories
Sunfeast, Bingo! and Yippee! featured among Vivel, Engage and Fiama featured among the
the Top 5 in the Foods category Top 5 in the Personal Care segment. Savlon
ranked No.2 in the OTC category
Wills Lifestyle was recognised at the 2016 John Players won top awards at Goa Fest 2016
DMAi CREATEFFECT Awards for creativity in (Creative ABBY Awards) for innovative use of
Interactive Experiential Marketing image/design and social media content
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Recent Awards & Accolades (2)
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ITCs Vision Statement
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ITCs Vision
By
creating multiple drivers of growth while sustaining leadership in
tobacco, and
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Key Corporate Strategies
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Strategy of Organisation
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ITCs Business Portfolio
FMCG
Cigarettes Foods Personal Care Lifestyle Retailing
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ITCs Cigarettes Business
Market leadership
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Cigarette Industry in India
Legal cigarettes account for only ~11% of tobacco consumed in India due to a
punitive taxation and discriminating regulatory regime
India is the 4th Largest Illegal cigarette Market in the World; resulting in
Revenue loss of over 9000 cr. p.a. to the National Exchequer
42% of adult Indian males consume tobacco. Only 7% of adult Indian males
smoke cigarettes as compared to 14% who smoke bidis and 30% who use
smokeless tobacco (Source: Global Adult Tobacco Survey India 2016-17)
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Legal Cigarettes contribute 87% of Tax Revenue, despite constituting
only 11% of Tobacco consumption
The cumulative growth in tax incidence on cigarettes, after cognising for the latest increase in Cess rates,
stands at a staggering 202% since 2011-12, i.e. the last 6 years.
Note: Consumption Share and Tax Revenue Share based on 2014/15 data
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Widening differential in Excise Duty rates between Cigarettes and
Other Tobacco Products
2773
Other Tobacco Products Cigarettes
953
52
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2005/06 2014/15
On a per kg basis, the differential in Excise Duty rates between cigarettes and other
tobacco products has widened from 29 times in 2005/06 to over 53 times
currently
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Cigarettes are least affordable in India
Source : WHO Report on the Global Tobacco Epidemic, 2015-Raising Taxes on Tobacco
Cigarette taxes in India are 14 times higher than USA, 9 times higher than Japan, 7 times higher
than China, 5 times higher than Australia and 3 times higher than Malaysia and Pakistan.
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Per Capita Consumption of Tobacco in India (gms per year)
Source:World Cigarettes ERC Statistics, Tob Board & Industry Estimates gms/Yr
Although India accounts for 17% of world population, its share of world cigarette consumption is just 1.8%
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Creating world-class brands for Indian Consumers
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Rapid scale up of FMCG businesses
` Cr.
10512
9731
9038
8122
7012
5545
4482
3642
3014
2511
1704
1013
2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
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Annual Consumer Spends of nearly 14000 cr. (FY17)
>3500 cr.
>3000 cr.
>1000 cr.
>500 cr.
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Branded Packaged Foods Portfolio
Biscuits, Staples, Snacks, Noodles & Pasta, Confectionery, Ready to Eat, Juices,
Dairy and Chocolates
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Fabelle Chocolate Boutiques
Launched in Q1 FY17
Currently available at ITC
Gardenia, ITC Maurya, ITC Sonar,
ITC Grand Chola, ITC Windsor,
ITC Maratha and ITC Grand
Central.
Single Origin Cacaos Fabelle Gift Hamper
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Branded Packaged Foods: Some recent launches
R & G Coffee (Retail Launch) ITC Master Chef Super Safe Prawns
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Integrated Manufacturing and Logistics facilities An update
Panchla Kapurthala
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Personal Care Products
Portfolio approach straddling all consumer segments with 4 umbrella brands in the
Personal Wash segment
Essenza Di Wills
Fiama
Vivel
Superia
Strengthened presence in the Health & Hygiene
space leveraging the Savlon and Shower to
Shower brands.
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Education & Stationery Products Business
Leverages printing and paper know-how to address suitable opportunities in
the stationery market
- Paperkraft, Classmate, Classmate Pulse and Saathi brands continue to enhance market
standing
Industry growth driven by increasing literacy and enhanced scale of government
and public-private initiatives in education
Complementary categories comprising writing instruments, art stationery and
scholastic products witnessed robust growth
Classmate : Market leader in Notebooks segment
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Lifestyle Retailing
Mangaldeep continues to fortify its market standing in the Agarbatti and Dhoop segment.
AIM continues to be the largest selling safety matches brand in India.
Launched in September 2016 on both Android & iOS platforms the Mangaldeep App is
currently available in seven languages and caters to the everyday devotional needs of
consumers.
100000+
App Installs
50%+
Users whose age is
< 35 yrs
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Hotels
Leader in Profitability
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Hotels & Tourism industry
Foreign Tourist Arrivals (FTA) growth has picked up in the last few quarters.
FTA into India @ ~8.0 million remains far behind China (~56.8 million)
[Source: UNWTO Tourism Highlights 2016 edition]
Industry: Current Room inventory ~240,000 rooms, of which ~66,000 rooms are in
the Luxury and Upper-Upscale segments
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Hotels Business
The Chain: 98 properties across 70 locations
4 Brands: ITC Hotels, WelcomHotel, Fortune & WelcomHeritage
21 Five-Star Deluxe/ Five-Star Properties with over 4400 rooms
44 Fortune Hotels with over 3500 rooms
33 WelcomHeritage Properties with over 750 rooms
Projects underway:
ITC Hotels: Kolkata, Hyderabad,
Ahmedabad, Srinagar
WelcomHotels at 4 cities ;
Coimbatore, Bhubaneswar, Guntur
and Amritsar
Companys first overseas project in Colombo, being undertaken by a wholly-owned
subsidiary in Sri Lanka
Construction activity is progressing as per schedule
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ITC Hotels: Worlds Greenest Luxury Hotel Chain
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Paperboards & Packaging Business
No. 1 in Size
No. 1 in Profitability
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Indian Paperboard market
Low per capita usage of paper at around 9 kgs p.a. (world average
over 58 kgs p.a.)
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ITCs Paperboards, Paper & Packaging businesses
Market leader in Value-Added Paperboards segment
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Indian Leaf Tobacco industry
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ITCs Agri Commodity Business
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ITCs Agri Commodity Business
e-Choupal: Strategic Thrust
Procurement: cost & quality optimisation
strategic sourcing support to the Branded Packaged Foods Businesses
cost-effective sourcing for exports/domestic external business
Rural retail
23 Choupal Saagars operational
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ITC e-Choupal Global Recognition
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ITC - Key Financials Q1 2017/18
` Crs
Q1 CY Q1 LY GOLY PDI
48
Gross Segment Revenue Q1 17/18
Rs. `Cr.Cr.
Q4 Q1
2016-17 2017-18 2016-17 Goly(%)
Segment Revenue (Gross)
8955 a) FMCG - Cigarettes 8774 8231 6.6
2886 - Others 2601 2385 9.0
11841 Total FMCG 11375 10616 7.2
387 b) Hotels 305 287 6.1
1918 c) Agri Business 2760 2794 (1.2)
1373 d) Paperboards, Paper & Packaging 1360 1323 2.8
15518 Total 15800 15020 5.2
636 Less : Inter segment revenue 2078 1863 11.5
14883 Gross Revenue from sale of products & services 13722 13157 4.3
FMCG-Others Revenue growth driven by Atta, Snacks, Juices, Soaps, Deos and Notebooks;
trade destocking ahead of GST and ongoing restructuring of retail & trade footprint impact
Apparel
Agri Business impacted by lower output & adverse quality of Andhra tobacco crop
Paperboards, Paper and Packaging segment affected by GST transition, highway liquor ban &
subdued FMCG demand
49
Segment Results Q1 17/18
` Cr.
Rs. Cr.
Q4 Q1
2016-17 2017-18 2016-17 Goly(%)
Segment Results
3259 a) FMCG - Cigarettes 3274 3005 9.0
56 - Others 5 (5)
3314 Total FMCG 3280 3000 9.3
67 b) Hotels 5 1
135 c) Agri Business 235 237 (0.9)
240 d) Paperboards, Paper & Packaging 257 248 3.9
3756 Total 3777 3486 8.3
(11) Less : i) Finance Cost 10 10 (2.8)
ii) Other un-allocable (income) net
(279) (178) (199) (10.8)
of un-allocable expenditure
4047 Profit Before Tax 3945 3675 7.3
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Segment Assets
Rs. `Cr.
Cr.
Q4 Q1
2016-17 2017-18 2016-17 Goly(%)
Segment Assets
7995 a) FMCG - Cigarettes 7782 7616 2.2
7114 - Others 8006 6775 18.2
15108 Total FMCG 15788 14392 9.7
5083 b) Hotels 5282 4868 8.5
2992 c) Agri Business 3375 3183 6.0
6323 d) Paperboards, Paper & Packaging 6370 6144 3.7
29506 Total Segment Assets 30815 28586 7.8
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Segment Liabilities
Rs.` Cr.
Cr.
Q4 Q1
2016-17 2017-18 2016-17 Goly(%)
Segment Liabilities
2448 a) FMCG - Cigarettes * 3353 2470 35.7
1407 - Others 1498 1308 14.5
3855 Total FMCG 4851 3778 28.4
421 b) Hotels 481 362 33.1
796 c) Agri Business 650 825 (21.2)
624 d) Paperboards, Paper & Packaging 586 545 7.4
5695 Total Segment Liabilities 6568 5510 19.2
Increase in Segment Liabilities primarily a/c trade payables (in line with business
growth) and statutory liabilities
52
ITC - Key Financials 2016/17
` Cr.
Overall performance impacted by increasing regulatory pressures & cumulative impact of tax
increase on Cigarettes, weak demand conditions, steep hike in commodity prices & impact of
currency crunch
53
Gross Segment Revenue Full Year
` Cr.
2017 2016 Goly (%)
a ) FMCG - Ci ga rettes 34002 32348 5.1
- Others 10512 9731 8.0
Total FMCG 44514 42079 5.8
b) Hotel s 1342 1286 4.3
c) Agri Bus i nes s 8265 7457 10.8
d) Pa perboa rds , Pa per & Pa cka gi ng 5363 5328 0.7
Total 59483 56150 5.9
Les s : Inter s egment revenue 4481 4568 -1.9
Gross Revenue 55002 51582 6.6
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Segment Results Full Year
` Cr.
2017 2016 Goly (%)
a ) FMCG - Ci ga rettes 12514 11752 6.5
- Others 28 102 -72.4
Total FMCG 12542 11854 5.8
b) Hotel s 111 56 99.2
c) Agri Bus i nes s 906 933 -2.9
d) Pa perboa rds , Pa per & Pa cka gi ng 966 908 6.4
Total 14525 13751 5.6
Les s :
Fi na nce Cos t 23 49
Other un-a l l oca bl e (i ncome) net of
(1001) (733)
un-a l l oca bl e expendi ture
Total PBT 15503 14434 7.4
FMCG Others Segment Results consider sharp hike in input prices, gestation cost, impact of
currency crunch, heavy discounting in Apparel
Hotels growth driven by higher ARRs, F&B revenue
Agribusiness impacted by business mix & increase in leaf tobacco prices
Paperboards, Paper & Packaging margin expansion driven by benign input costs (Wood/Pulp) and
richer product mix
55
ITCs Economic Contribution to the Nation
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Social Performance
Direct employment ITC Group : over 32,000
Social and Farm forestry initiative has greened nearly 620,000 acres and
generated nearly 113 million person days of employment for rural
households, including poor tribal and marginal farmers.
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Environmental Performance
Water positive - 15 years in a row
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For More Information & Updates
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