ITM Executive MBA, Batch 13B, Term 1, Subject: Concepts of Marketing

BCG Matrix
of ITC Ltd.
V0.2

Main Sources: ITC Portal (www.itcportal.com) , Angel Broking & NSE.

ITC Ltd.
Formerly Known as Indian Tobacco Company
Formerly Known as Imperial Tobacco Company

ITC Timeline

1925

1910

1975 1979

1990

2000

2008

1910Incorporation of 'Imperial Tobacco Company of India Limited'.

1925Setup of Packaging & Printing Business
1975Launched its Hotels business.
1979Entered the Paperboards business
1990Set up the Agri Business Division
Launched a line of high quality greeting cards under the brand name
2000 'Expressions'
2000Entered the Lifestyle Retailing business with the Wills Sport.
2000Spun off ITC Infotech India Limited.

ITC Timeline

1910

2001 2005

2008

FMCG-Cigarettes
Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors,
Capstan, Berkeley, Bristol and Flake

'Best Manufacturer of Cigarettes for the year 2007'

FMCG-Cigarettes
Started in 1910 As Companys Core Business
Market leadership in all segments - geographic & price (70% Market Share)
Extensive FMCG distribution network (Direct servicing of 1,00,000 markets &
2 million retail outlet)
Cigarettes account for only 15% of tobacco consumed in India unlike world
pattern of 85% due to prolonged punitive taxation.
Of the 58% of adult Indian males who consume tobacco, barely 15% can
afford cigarettes. (Biri : Cigarettes ratio = 10 : 1)
Annual per capita adult cigarette consumption in India
world average which is 141

is appx. one tenth

In 2001 - Lost 15% of Its Business Because of Rise in Excise Duty

In 2007 - VAT Was charged at 12.5% which increased the price of cigarettes
by 84ps per cigarette. Hence ITC had to shut down their business of Plains (i.e.
Non Filter Cigarettes) which was 20% of total FMCG Cigarette Business.

FMCG-Others
Ashirvad Atta, Kitchens Of India, Mint-o, Sunfeast, Candyman, Bingo,
Superia, Wills LifeStyle, Fiama Di Wills, Expressions, Classmate

Superbrand 2006 - Superbrand Council.

FMCG-Others
Ashirvad Atta is now #1 selling.
Sunfeast Biscuits is ranked #3.
Bingo, launched in August 2007, now enjoys 16% market share.
November 2007 Mint-o overtakes its competitor Chlormint
Classmate brand already the most widely distributed stationary brand in
India
Kitchens of India has about 48% market share in India and a huge export
potential. Ready to Eat food Market is estimated to be Rs.700m.
Safety Matches market at Rs. 1250 crores p.a. for 24 billion match boxes
which is targeted by ITCs iKno, Aim, Aim Mega, Aim Metro.
Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship.
Mangaldeep the only National brand in the country serves the nations
900cr incense sticks market.

Hotels
ITC Maurya (Delhi), ITC Maratha (Mumbai), ITC Grand Central (Mumbai),
ITC Sonar (Kolkatta), ITC Windsor (Bengaluru),
ITC Kakatiya (Hyderabad), ITC Mughal (Agra).

Bukhara Restaurant named as Best Indian Restaurant in the World.

Hotels
Hotel Brands: ITC-WelcomGroup, WelcomHeritage & Fortune.
Totally 90 Hotels, 77 Destinations and 5500 Rooms under management.
Destinations include most of India as well as Singapore and Dubai.
Hosted a galaxy of world dignitaries like Bill Gates to Bill Clinton,
Condoleezza Rice to Benazir Bhutto.
Restaurant Brands: Bukhara, Dum Pukht and Dakshin.

Agri Business
eChoupal, Agri Exports, Leaf Tobacco

Innovation for India Award 2006 for ITC e-Choupal in the

Social Innovations category for business organizations

Agri Business

ITC Agri Business is one of Indias largest exporter of agricultural

commodities.
June 2000, eChoupal strategic and cost effective sourcing support to the
Foods business (support creation of verticals in wheat, soya, corn, potato etc.)
eChoupal - Services reaches to 4 million Farmers who are growing Wheat,
Rice, Pulses, Soyabean, Coffee in over 40,000 villages thru nearly 6,500 kiosks
across nine states.
Diverse range of goods/services : FMCG, consumer durables, agri-inputs.
Farmer Financial Services - insurance (focus: weather), credit (focus: Kisan
credit card scheme)
Rural Retail 18 Choupal Sagars
Agenda 2012 is to cover 15 states with 1,00,000 Villages with about 20,000
eChoupal Kiosks servicing about 10 million farmers.

Agri Business Leaf Tobacco (ILTD)

Largest Buyer, Processor and Exporter of leaf tobacco in India.
Exports to about 48 countries.
ITC processes about 120 million kgs of high quality tobacco yearly. Overall
550m Kg of tobacco is produced in India.
Factories have integrated warehousing complexes.
Enabled successful venture into spices business.
Golden Leaf Awards 2007 in the categories Most Committed to Quality
The International Quality Rating System IQRS Level 7, awarded by Det
Norske Veritas in March 2006.

Packaging & Paperboards

Packaging & Paperboards and Specialty Paper

Indian Manufacturing Excellence Gold Award 2007 and 2006 to

Unit Bollaram by Frost & Sullivan

Packaging & Paperboards

Annual paperboard demand appx. 1.1 million tonnes
Indian paperboard market growing at 7% p.a.
Significant export opportunities for high quality Indian manufacturers
ITC paperboards exports - Rs. 2 billion appx.
ITCs packaging unit - Indias largest converter of paperboard into high
quality printed packaging
Provides superior packaging solutions to the cigarettes and new FMCG
businesses
India has low per capita usage at around 6 kgs p.a.
(World average over 50 kgs p.a.)
ITC Bought 0.5% in Ballarpur Industries in July 2008.

Infotech
ITC Infotech Ltd.

Featured amongst Top 100 Global Outsourcing Companies in

the Leaders category - International Association of
Outsourcing Professionals

Infotech
ITC Infotech Ltd. Is a wholly owned subsidiary of ITC Ltd.
ITC Infotech is responsible for developing & maintaining the entire ITC
eChoupal infrastructure.
Although a separate entity and brand, ITC Infotechs primary job is to keep
ITC as a group upto date with latest technology.

BCG Matrix
BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix, Boston
Consulting Group analysis.
Created by Bruce Henderson for the Boston Consulting Group in 1970 to
help corporations with analyzing their business units or product lines.
This helps the company allocate resources and is used as an analytical tool
in brand marketing, product management, strategic management, and
portfolio analysis.

BCG Matrix

BCG Matrix

ITC Ltd on BCG Matrix

G
R
O
W
T
H

Star

Question mark

Cash Cow

Dog

MARKET SHARE

Summary on ITCs SBUs

Y/E March (Rs

cr)
FMCGCigarettes

REVENUES

%
%
% Market
FY2008 FY2007 Growth Contrib. Share
13,825. 12,833
6
.7
7.7
58.41
70%
1,689.
FMCG-Others
2,511.1
5
48.6
10.61
16%
Hotels
1,100.2 985.7
11.6
4.65 90 Hotels
3,501.
2nd Largest
Agri Business
3,868.4
3
10.5
16.34 Exporter
Paperboards &
2,100.
Packaging
2,364.3
1
12.6
9.99 1st in Asia
ITC Infotech
-

GrowthShare
Matrix
Growt Shar
h
e
Low

High

High Low
High High
High High
High High
Low Low

ITC Ltd on BCG Matrix (Conclusion)

G
R
O
W
T
H

Star

Question mark

Agri Business
Hotels
Paperboards & Packaging

FMCG-Foods

Cash Cow

Dog

FMCG-Cigarettes

ITC Infotech

MARKET SHARE

THANK YOU