ITC Limited
History
ITC Limited, originally known as the Imperial Tobacco Company of India Limited, was established on August 24, 1910. The company was initially set up as a subsidiary of the British American Tobacco Company (BAT) to cater to the burgeoning demand for tobacco products in India. Over the years, ITC has undergone significant transformations, diversifying its business portfolio beyond tobacco into various sectors including fast-moving consumer goods (FMCG), hotels, paperboards and packaging, agribusiness, and information technology.
In 1970, the company was renamed as India Tobacco Company Limited, and later in 1974, it became ITC Limited. This rebranding reflected the company's strategic shift towards diversification. By the 1980s, ITC had already ventured into the hospitality industry with the launch of its first hotel, ITC Maurya in New Delhi. The subsequent decades saw ITC expanding its footprint in various sectors, making it one of India's most diversified conglomerates.
Business Segments
FMCG
ITC's FMCG segment is one of the most diverse in the Indian market, encompassing a wide range of products from foods, personal care, education and stationery products, to lifestyle retailing. The company has leveraged its extensive distribution network to penetrate both urban and rural markets.
Foods
The foods division includes well-known brands such as Aashirvaad, Sunfeast, Bingo!, Yippee!, and Kitchens of India. Aashirvaad, for instance, is a leading brand in the packaged atta (flour) market. Sunfeast offers a variety of biscuits, cookies, and cakes, while Bingo! is known for its range of snacks. Yippee! has made a significant mark in the instant noodles segment.
Personal Care
In the personal care segment, ITC has introduced brands like Fiama, Vivel, and Engage. Fiama offers a range of soaps, shower gels, and shampoos, while Vivel focuses on skincare products. Engage is a popular brand in the deodorant market.
Education and Stationery
ITC's education and stationery products are marketed under the brand Classmate, which has become a household name in India. The brand offers a wide range of products including notebooks, pens, pencils, and geometry boxes.
Lifestyle Retailing
The lifestyle retailing business is represented by the Wills Lifestyle and John Players brands. Wills Lifestyle offers premium apparel, while John Players caters to the youth segment with trendy and affordable clothing.
Hotels
ITC's hotel division operates under the brand name ITC Hotels, which is synonymous with luxury and hospitality. The chain includes several premium properties such as ITC Maurya in New Delhi, ITC Grand Chola in Chennai, and ITC Gardenia in Bengaluru. The hotels are known for their sustainable practices and have received numerous awards for their commitment to environmental stewardship.
Paperboards and Packaging
ITC is a leading player in the paperboards and packaging industry in India. The company operates through its subsidiary, ITC Paperboards and Specialty Papers Division (PSPD). The division produces a wide range of paperboards, including virgin and recycled boards, which are used in various industries such as FMCG, pharmaceuticals, and electronics. ITC's packaging business provides innovative and sustainable packaging solutions to its clients.
Agribusiness
ITC's agribusiness division is a critical part of its supply chain, providing raw materials for its FMCG and paperboards businesses. The company has implemented the e-Choupal initiative, which leverages information technology to empower farmers and enhance their productivity. The initiative has created a network of over 6,100 e-Choupals, benefiting more than 4 million farmers across 35,000 villages.
Information Technology
ITC Infotech, a subsidiary of ITC Limited, is a global IT services company that provides business-friendly solutions to various industries. The company offers services in areas such as digital transformation, data analytics, and cybersecurity. ITC Infotech has a presence in multiple countries and serves clients across diverse sectors including banking, financial services, insurance, and manufacturing.
Corporate Social Responsibility
ITC has a robust corporate social responsibility (CSR) program that focuses on sustainable development and community welfare. The company's CSR initiatives are aligned with the United Nations Sustainable Development Goals (SDGs) and cover areas such as education, health, sanitation, and environmental sustainability.
Education
ITC's education initiatives aim to improve the quality of education in rural areas. The company has established several primary and secondary schools, and provides scholarships to underprivileged students. The Classmate brand also supports various educational programs and initiatives.
Health and Sanitation
ITC's health and sanitation programs focus on improving access to healthcare and sanitation facilities in rural areas. The company has built numerous toilets and sanitation facilities, and conducts health camps and awareness programs to promote hygiene and sanitation.
Environmental Sustainability
ITC is committed to environmental sustainability and has implemented several initiatives to reduce its carbon footprint. The company has achieved carbon, water, and solid waste recycling positive status, and has invested in renewable energy projects. ITC's afforestation program has resulted in the planting of millions of trees, contributing to biodiversity conservation and climate change mitigation.
Governance and Leadership
ITC's governance framework is designed to ensure transparency, accountability, and ethical conduct. The company is governed by a Board of Directors, which includes independent directors with diverse backgrounds and expertise. The Board is responsible for setting the strategic direction of the company and overseeing its performance.
The current Chairman and Managing Director of ITC Limited is Sanjiv Puri, who has been with the company for over three decades. Under his leadership, ITC has continued to expand its business portfolio and strengthen its position as a diversified conglomerate.
Financial Performance
ITC Limited is one of the most profitable companies in India, with a strong financial performance across its business segments. The company has consistently delivered robust revenue growth and profitability, driven by its diversified business portfolio and efficient cost management.
In the fiscal year 2021-22, ITC reported a revenue of INR 53,155 crore and a net profit of INR 15,136 crore. The FMCG segment contributed significantly to the company's revenue, followed by the paperboards and packaging, agribusiness, and hotels segments.
Research and Development
ITC places a strong emphasis on research and development (R&D) to drive innovation and maintain its competitive edge. The company's R&D efforts are focused on developing new products, improving existing products, and enhancing process efficiencies.
ITC's Life Sciences and Technology Centre (LSTC) in Bengaluru is a state-of-the-art R&D facility that conducts research in areas such as biotechnology, nanotechnology, and material science. The LSTC collaborates with leading academic institutions and research organizations to drive innovation and create value for the company.
Awards and Recognitions
ITC has received numerous awards and recognitions for its business excellence, sustainability initiatives, and corporate governance. Some of the notable awards include:
- The CII-ITC Sustainability Award for Excellence in Sustainable Business.
- The National Award for Excellence in Corporate Governance by the Institute of Company Secretaries of India (ICSI).
- The Golden Peacock Award for Corporate Social Responsibility.
Future Outlook
ITC Limited aims to continue its growth trajectory by expanding its presence in existing markets and exploring new business opportunities. The company is focused on leveraging digital technologies to enhance its operational efficiencies and customer engagement. ITC also plans to invest in sustainable and responsible business practices to create long-term value for its stakeholders.
The company's strategic priorities include strengthening its FMCG portfolio, expanding its hotels business, and enhancing its agribusiness and paperboards operations. ITC is also exploring opportunities in emerging sectors such as renewable energy and healthcare.