View
213
Download
0
Category
Tags:
Preview:
Citation preview
ITC: Packaged Food Business
Group – 05
20 - Shrikant Jangam51 - Raman Shinde61 - Tejashree Sawant62 - Vipul Bhandari
Timeline of ITC
ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited
In 1974, the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited
In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology
ITC's Packaging & Printing Business was set up in 1925
In 1975, the Company launched its Hotels business with Welcome group of Hotels
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited
In 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000
Foray into Food Business in 2001
ITC launched line of premium range of notebooks under brand Paperkraft in 2002
In 2002, ITC also entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour)
In 2003, ITC witnessed the introduction of Sunfeast as the Company entered the biscuits segment
ITC entered the fast growing branded snacks category with Bingo! in 2007
Business Portfolio: ITC
ITC
FMCG
Cigarettes Personal Care
Packaged Food
Products
Hotels Agri Business
Paperboard &
Packaging
ITC Food Business
ITC Food Business
KOI Aashirwad Sunfeast Minto Candyman Bingo
Tobacco Vs Non-Tobacco
2003-04 2004-05 2004-06 2006-070%
20%
40%
60%
80%
100%
120%
40% 42% 48% 52%
60% 58% 52% 48%
Non Tobacco Tobacco
Net
Turn
over
(%)
Share of Non-Tobacco portfolio crossed the 50 per cent of net turnover mark in 2006-07 (Food & Lifestyle)
Question & Answers
Why ITC entered packaged food sector Government’s legislation to ban smoking in Public places
Ban on sponsoring sporting and cultural events
Fall of stocks – ITC
Packaged branded foods constitute the major portion of consumption in developed markets
Indians spend about $130-$150 billion (INR 5,20,000 to INR 6,00,000 crore) on food annually – ITC’s Market Research
Support from its own divisions
ITC growth is based on synergising and blending multiple core competencies to create epicentre for growth
ITC tapped core competencies in tobacco, hospitality, Agri, IT sector to build and grow other business
Tobacco
- Used strong distribution network to deliver FMCG products- Blending skills used to create blends for Aashirvad atta- Mfg and process skills used for mfg FMCG products Agriculture business - Help to source raw material for mfg of biscuits- E-choupal help to distribute product in rural areas
Hotels
- Provide consumer insights into tastes and habits of high end consumers
- Analysis of consumer taste by region help them to launch Regional variants of Bingo and aashirvad atta
ITC Info tech
- Helps to create and maintain the IT backbone of E-choupal initiative , distribution network and design solution program
Corporate Diversification Strategy
ITC’s Corporate strategy aims at creating multiple drivers of growth using its
◦ wide distribution reach,
◦ superior brand building capabilities,
◦ effective supply chain management and
◦ acknowledged service skills in hoteliering
◦ quality packaging
BCG matrix for ITC group
StarsHotelsPaperboards/ PackagingAgri Business
Question Mark
FMCG - Others
Cash Cows
FMCG - Cigarettes
Dog
ITC-Infotech
Hig
h
Relative Market Share
Ind
ustr
y G
row
th R
ate
Low
High Low
SWOT Analysis of Packaged Food SectorStrength• Growth of organised retail• Improvement in packaging technology
• Urbanisation• Value for money• Convenient pricing • Focus on Traditional Indian foods• Better quality of Food• Intense competition
Weakness
• Low penetration in Rural market
• Infrastructure development
Opportunities
• New product introduction as per change/requirement of consumers
• Rising disposable income
Threat
• FDI by MNC’s
• Decrease in no. of Farmers practicing agriculture
Most Innovative Brand
They have innovated the way product represent in the market. E.g Ashirvad aata got award in packaging
Giving variant in the food e.g. Sunfeast Dark fantasy, Sunfeast delishus
Leverage on each core competency and get the best out of it
Thank You
Recommended