Embed Size (px)
Citation preview
IT FINAL PROJECT
“Creating Enduring Value - Building World-Class Brands for India”
MAYANK LALWANI
ANSHIKA SINGH
AMRENDRA UPHADHAY
AYUSH CHASTA
DEEPAK KUMAR
PGDM 6
SUNFEAST
Contents SECTOR-FMCG: ...............................................................................................................................4
INTRODUCTION: ....................................................................................................................... 14
Sector Size: .................................................................................................................................. 14
Growth of Sector: ......................................................................................................................... 15
Rural – Set to Rise: ....................................................................................................................... 16
Urban Trends:............................................................................................................................... 16
Road Ahead for FMCG: ................................................................................................................ 16
Top 10 Companies India: .............................................................................................................. 17
Porters Five Forces Model: ............................................................................................................ 18
Rivalry among Existing Players: .................................................................................................... 18
Potential Entrants: ..................................................................................................................... 18
Buyer Power: ............................................................................................................................ 18
Supplier Power:......................................................................................................................... 18
Threat of Substitutes: ................................................................................................................. 18
COMPANY INFORMATION:.......................................................................................................... 19
Company Snapshot: ...................................................................................................................... 19
SWOT Analysis:........................................................................................................................... 20
Strengths: ................................................................................................................................. 20
Weakness: ................................................................................................................................ 20
Opportunities: ........................................................................................................................... 20
Threats: .................................................................................................................................... 20
Current CEO: ............................................................................................................................... 21
Product and Service Portfolio: ....................................................................................................... 21
Competitor’s Analysis:.................................................................................................................. 22
News Including Corporate Announcement:..................................................................................... 23
Marketing: ....................................................................................................................................... 24
SWOT Analysis of Sunfeast: ......................................................................................................... 24
Marketing Mix:............................................................................................................................. 25
Segmenting, Targeting, Positioning of the Sunfeast: ........................................................................ 25
Product Life Cycle of Sunfeast: ..................................................................................................... 26
Finance: ........................................................................................................................................... 27
Gross Profit and Net Profit Margin of the Company: ....................................................................... 28
Working capital for the year: ......................................................................................................... 28
Debt-Equity ratio of the company: ................................................................................................. 29
Direct and indirect costs of the company: ....................................................................................... 29
Fixed assets added during the year: ................................................................................................ 30
Human Resource Management: ......................................................................................................... 31
HUMAN RESOURCE MANAGEMENT ................................................ Error! Bookmark not defined.
Organization Structure ........................................................................ Error! Bookmark not defined.
Skills sets require in company.............................................................. Error! Bookmark not defined.
JDs and Job Specifications posted by the company on online-job portal.. Error! Bookmark not defined.
1). Marketing .................................................................................. Error! Bookmark not defined.
2). Finance ...................................................................................... Error! Bookmark not defined.
3). HRM ......................................................................................... Error! Bookmark not defined.
Recruitment sources of company ......................................................... Error! Bookmark not defined.
Selection process ................................................................................ Error! Bookmark not defined.
Induction program .............................................................................. Error! Bookmark not defined.
Types of training provided in a company .............................................. Error! Bookmark not defined.
Performance appraisal model of company............................................. Error! Bookmark not defined.
Employee benefits provided................................................................. Error! Bookmark not defined.
Career Planning in a company ............................................................. Error! Bookmark not defined.
Organization culture............................................................................ Error! Bookmark not defined.
RATIO ANALYSIS CURRENT RATIO
Sum of CURRENT RATIO Column Labels
Row Labels BRITANNIA ITC PRIYA GOLD
Grand Total
2013 0.79 1.22 0.82 2.83
2014 0.84 1.25 0.9 2.99
2015 1 1.45 1.19 3.64
2016 1.07 1.2 1.06 3.33
2017 2 1.94 1.84 5.78
Grand Total 5.7 7.06 5.81 18.57
0
0.5
1
1.5
2
2.5
2013 2014 2015 2016 2017
BRITANNIA
ITC
PRIYA GOLD
Sum of PROFIT MARGIN
Sum of PROFIT MARGIN Column Labels
Row Labels BRITANNIA ITC PRIYA GOLD Grand Total
2013 0.07 35.54 4.41 40.02
2014 0.03 37.47 4.49 41.99
2015 0.07 36.9 7.6 44.57
2016 0.06 38.65 4.84
43.55
2017 0.05 36.36 4.96 41.37
Grand Total 0.28 184.92 26.3 211.5
0
5
10
15
20
25
30
35
40
45
2013 2014 2015 2016 2017
BRITANNIA
ITC
PRIYA GOLD
Sum of QUICK RATIO Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 0.58 0.47 0.7 0.77 1.45 3.97
ITC 0.66 0.68 0.87 0.69 1.06 3.96
PRIYA GOLD 0.44 0.51 0.9 0.77 1.29 3.91
Grand Total 1.68 1.66 2.47 2.23 3.8 11.84
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
BRITANNIA ITC PRIYA GOLD
2013
2014
2015
2016
2017
Sum of FIXED ASSETS TURN RATIO Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 7.35 6.89 7.37 6.84 8.81 37.26
ITC 1.8 1.83 1.74 1.68 2.44 9.49
PRIYA GOLD 3.4 3.4 3.5 2.5 2.3 15.1
Grand Total 12.55 12.12 12.61 11.02 13.55 61.85
0
5
10
15
20
25
30
35
40
BRITANNIA ITC PRIYA GOLD
2017
2016
2015
2014
2013
Sum of GROSS PROFIT MARGIN Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 5.59 8.45 9.11 13.14 13.16 49.45
ITC 32.88 34.76 34.27 35.84 33.77 171.52
PRIYA GOLD 37.3 39.6 39.8 40.7 37.2 194.6
Grand Total 75.77 82.81 83.18 89.68 84.13 415.57
0
5
10
15
20
25
30
35
40
45
BRITANNIAITC
PRIYA GOLD
2013
2014
2015
2016
2017
Sum of DIVIDENT PAYOUT RATIO Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 43.46 38.91 30.82 32.03 28.44 173.66
ITC 55.92 54.31 52.14 69.48 67.05 298.9
PRIYA GOLD 30.9 29.9 80.52 33.23 34.25 208.8
Grand Total 130.28 123.12 163.48 134.74 129.74 681.36
0
10
20
30
40
50
60
70
80
90
BRITANNIA ITC PRIYA GOLD
2013
2014
2015
2016
2017
Sum of NET PROFIT MARGIN Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 4.16 5.86 8.67 9.42 10.02 38.13
ITC 24.8 26.43 26.31 26.72 25.44 129.7
PRIYA GOLD 4.2 5.9 8.7 9.4 10 38.2
Grand Total 33.16 38.19 43.68 45.54 45.46 206.03
0
20
40
60
80
100
120
140
BRITANNIA ITC PRIYA GOLD
2017
2016
2015
2014
2013
QUICK RATIO (All)
Sum of PROFIT MARGIN Column Labels
Row Labels 2013 2014 2015 2016 2017 Grand Total
BRITANNIA 0.07 0.03 0.07 0.06 0.05 0.28
ITC 35.54 37.47 36.9 38.65 36.36 184.92
PRIYA GOLD 4.41 4.49 7.6 4.84 4.96 26.3
Grand Total 40.02 41.99 44.57 43.55 41.37 211.5
0
20
40
60
80
100
120
140
160
180
200
BRITANNIA ITC PRIYA GOLD
2017
2016
2015
2014
2013
Column Labels
Sum of GROSS PROFIT MARGIN
Sum of NET PROFIT MARGIN
Total Sum of GROSS PROFIT MARGIN
Total Sum of NET PROFIT MARGIN
Row Labels 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
BRITANNIA 5.59 8.45 9.11 13.14 13.16 4.16 5.86 8.67 9.42 10.02 49.45 38.13
ITC 32.88 34.76 34.27 35.84 33.77 24.8 26.43 26.31 26.72 25.44 171.52 129.7
PRIYA GOLD 37.3 39.6 39.8 40.7 37.2 4.2 5.9 8.7 9.4 10 194.6 38.2
Grand Total 75.77 82.81 83.18 89.68 84.13 33.16 38.19 43.68 45.54 45.46 415.57 206.03
0
50
100
150
200
250
300
350
BRITANNIA ITC PRIYA GOLD
Sum of NET PROFITMARGIN - 2017
Sum of NET PROFITMARGIN - 2016
Sum of NET PROFITMARGIN - 2015
Sum of NET PROFITMARGIN - 2014
Sum of NET PROFITMARGIN - 2013
Sum of GROSS PROFITMARGIN - 2017
Sum of GROSS PROFITMARGIN - 2016
Column Labels
Sum of GROSS PROFIT MARGIN
Sum of NET PROFIT MARGIN
Total Sum of GROSS PROFIT MARGIN
Total Sum of NET PROFIT MARGIN
Row Labels 2013 2014 2015 2016 2017 2013 2014 2015 2016 2017
BRITANNIA 5.59 8.45 9.11 13.14 13.16 4.16 5.86 8.67 9.42 10.02 49.45 38.13
ITC 32.88 34.76 34.27 35.84 33.77 24.8 26.43 26.31 26.72 25.44 171.52 129.7
PRIYA GOLD 37.3 39.6 39.8 40.7 37.2 4.2 5.9 8.7 9.4 10 194.6 38.2
Grand Total 75.77 82.81 83.18 89.68 84.13 33.16 38.19 43.68 45.54 45.46 415.57 206.03
0
50
100
150
200
250
300
350
BRITANNIA ITC PRIYA GOLD
Sum of NET PROFITMARGIN - 2017
Sum of NET PROFITMARGIN - 2016
Sum of NET PROFITMARGIN - 2015
Sum of NET PROFITMARGIN - 2014
Sum of NET PROFITMARGIN - 2013
Sum of GROSS PROFITMARGIN - 2017
Sum of GROSS PROFITMARGIN - 2016
SECTOR-FMCG:i
INTRODUCTION:
FMCG is the fast moving consumer goods (FMCG) segment and the fourth largest sector in the Indian
economy. The FMCG market has 3 main segments.
o Food and beverages
Health beverages, staples/cereals, bakery products, snacks, chocolates, ice cream,
tea/coffee/soft drinks, processed fruits and vegetables, dairy products, and
branded flour.
o Household and personal care
Oral care, hair care, skin care, cosmetics/deodorants, perfumes, feminine hygiene
and paper products, Fabric wash, household cleaners.
o Health care.
OTC products and ethical.
Household & Personal Care is the leading segment, accounting for 50 per cent of the overall market. Hair
care (23 per cent) & Food & Beverages (19 per cent) comes next in terms of market share.
Sector Size:
The Retail market in India is estimated to reach US$ 1.1 trillion by 2020 from US$ 672 billion in 2016,
with modern trade expected to grow at 20 per cent - 25 per cent per annum, which is likely to boost
revenues of FMCG companies. In 2016-17, revenue for FMCG sector have reached US$ 49 billion and is
expected to grow at 9-9.5 per cent in FY18 supported by expectations of the total consumption
expenditure reaching nearly US$ 3,600 billion by 2020 from US$ 1,469 billion in 2015. In the long run,
with the system becoming more transparent and easily compliable, demonetization is expected to benefit organized players in the FMCG industry.
FMCG is the 4th largest sector in the Indian economy and is valued at about US$ 49 billion as of 2016 (as
per IBEF). Household & Personal Care is the leading segment accounting for 50% of the overall market.
This is followed by Healthcare at 31% and Food & Beverages comes next in terms of market share at
19%. Under Household & Personal Care, Hair care accounts for about 23% followed by Oral care at 15%, Home care at 6% and Skin care at 5%.
In 2016, urban area was the largest contributor to the overall revenue generated by the FMCG sector in India with about 60% share while the rest came from semi-urban and rural areas.
Growth of Sector:
Historically, growth in private final consumption expenditure (PFCE) relates well with growth on non-
durable goods with a ratio of 0.8 times on an average. The market size of FMCG in India is estimated to
grow from US$ 30 billion in 2011 to US$ 74 billion in 2018. Therefore, going forward, with the nominal
GDP expected to be at 11.5%, CARE expects the FMCG industry to grow by about 9-9.5% in FY18.
Also, with Indian retail market being estimated to reach USD 1.15 trillion by 2020 from USD 672 billion
in 2016 by CARE and modern trade projected to grow at about 20% per annum, it is expected to give an impetus to revenues of FMCG companies going forward.
17.321.3 24.2
30.234.8 36.8
44.9 46.1 47.3 49
103.7
0
20
40
60
80
100
120
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2020F
FMCG Market in India (US$ billion)
FMCG Market in India (US$ billion)
23%
19%
16%
15%
27%
Revenue Share of India (FY20E)
Haircare Foods Health Supplements Oral Care Others
CAGR
Rural – Set to Rise:
Rural areas expected to be the major driver for FMCG, as growth continues to be high in these regions.
Rural areas saw a 16 per cent, as against 12 per cent rise in urban areas. Most companies rushed to
capitalize on this, as they quickly went about increasing direct distribution and providing better
infrastructure. Companies are also working towards creating specific products specially targeted for the rural market.
The Government of India has also been supporting the rural population with higher minimum support
prices (MSPs), loan waivers, and disbursements through the National Rural Employment Guarantee Act
(NREGA). These measures have helped in reducing poverty in rural India and given a boost to rural purchasing power.
Hence rural demand is set to rise with rising incomes and greater awareness of brands.
Urban Trends:
With rise in disposable incomes, mid- and high-income consumers in urban areas have shifted their
purchasing trend from essential to premium products. In response, firms have started enhancing their
premium products portfolio. Indian and multinational FMCG players are leveraging India as a strategic
sourcing hub for cost-competitive product development and manufacturing to cater to international markets.
Road Ahead for FMCG:
FMCG brands would need to focus on R&D and innovation as a means of growth. One area that we see
global and local FMCG brands investing more in is health and wellness. Health and wellness is a mega trend shaping consumer preferences and shopping habits and FMCG brands are listening.
9 10.4 12.3 12.1 14.8 15.418.9
29.4
100
0
20
40
60
80
100
120
2009 2010 2011 2012 2013 2014 2015 2016 2017
Rural FMCG Market (US$ billion)
Rural FMCG Market (US$ billion)
Top 10 Companies Indiai i:
According to the study conducted by AC Nielsen, 62 of the top 100 brands are owned by MNCs, and the balance by Indian companies.
The top ten India FMCG brands are:
1. Hindustan Unilever Ltd.
2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
Porters Five Forces Model:
Rivalry among Existing Players: Very high in FMCG sector
Price Competition
Advertisement and Promotional Stuff
Distribution
New Product
Storage
Exit Barrier are Low
Warranty and Guarantee
Potential Entrants:
Strong Distribution Network Required
High Capital Requirement
Already Existing Brand Names
Buyer Power:
Bargaining Power is High Bargaining Power is Low
Concentration More Less
Relative Purchase More Less
Information Available More Less
Product Importance Less More
Supplier Power:
Bargaining Power is High Bargaining Power is Low
Switching Cost More Less
Employee Solidarity More Less
Concentration More Less
Relative Supply More Less
Importance of unit More Less
Information about substitutes Less More
Threat of Substitutes:
Limited Number of Substitutes
Substantial Product Differentiation
COMPANY INFORMATIONi i i:
ITC Limited or ITC’s headquarter in Kolkata, West Bengal.Its diversified business includes five
segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business &
Information Technology.
Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as
the Indian Tobacco Company Limited in 1970 and further to I.T.C. Limited in 1974.
The periods in the name were removed in September 2001 for the company to be renamed as ITC
Ltd. The company completed 100 years in 2010.It employs over 25,000 people at more than 60 locations across India.
Company Snapshot:
The Company's beginnings were humble. A leased office on RadhaBazar Lane, Kolkata, was the center of
the Company's existence.
The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at
37, Chowringhee, for the sum of Rs 310,000.
The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later.
o 1925: Packaging and Printing: Backward Integration: Cigarettes and Leaf Tobacco
businesses, ITC's Packaging & Printing Business was set up in 1925 as a strategic backward
integration for ITC's Cigarettes business. It is today India's most sophisticated packaging
house.
o 1975: Entry into the Hospitality Sector - A 'Welcome' Move: The objective of ITC's entry
into the hotels business was rooted in the concept of creating value for the nation. ITC chose
the Hotels business for its potential to earn high levels of foreign exchange, create tourism
infrastructure and generate large scale direct and indirect employment.
o Paperboards & Specialty Papers - Development of a Backward Area: ITC entered
the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited.ITC's
paperboards' technology, productivity, quality and manufacturing processes are comparable
to the best in the world.
o 1985: Nepal Subsidiary - First Steps beyond National Borders: ITC set up Surya Tobacco
Co. in Nepal as an Indo-Nepal and British joint venture. In August 2002, Surya Tobacco
became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private
Limited.
o 1990: Paperboards & Specialty Papers: Consolidation and Expansion: In 1990, ITC
acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major
supplier of tissue paper to the cigarette industry.
o 1990: Agri Business - Strengthening Farmer Linkages: Also in 1990, leveraging its agri-
sourcing competency, ITC set up the Agri Business Division for export of agri-commodities.
The Division is today one of India's largest exporters.
o 2002: Education & Stationery Products : Offering the Greenest products. ITC launched
line of premium range of notebooks under brand Paperkraft in 2002.
o 2002: Agarbattis & Safety Matches Supporting the Small and Cottage Sector: ITC now
markets popular safety matches brands like iKno, Mangaldeep and Aim.
o 2005: Personal Care Products - Expert Solutions for Discerning Consumers: ITC
entered the Personal Care Business in 2005. In eight years, the Personal Care portfolio has
grown under various brands.
o 2010: Expanding the Tobacco Portfolio: In 2010, ITC launched its hand rolled
cigar, Armenteros, in the Indian market. Armenteros cigars are available exclusively at
tobacco selling outlets in select hotels, fine dining restaurants and exclusive clubs.
SWOT Analysisiv:
Strengths:
ITC has a strong and experienced management.
Strong brand presence, excellent products advertising.
Diversified product and services portfolio which includes FMCG, Hotel chains, paper &
packaging and agri-business.
Excellent research and development facilities.
Weakness:
Hotel industry has not been able to create a huge market share.
ITC is still dependent on its tobacco revenues and people have cheaper substitutes and other
brands.
Opportunities:
Tap rural markets and increase penetration in urban areas.
Mergers and acquisitions to strengthen the brand.
Increasing purchasing power of people thereby increasing demand.
More publicity of hotel chains to increase market share.
Threats:
Strict government regulations and policies regarding cigarettes.
Intense and increasing competition amongst other FMCG companies and hotel chains.
FDI in retail thereby allowing international brands.
Current CEO:
SANJIV PURI
Sanjiv Puri (54), was appointed as a Director on the Board of ITC from December 6, 2015 and Chief
Executive Officer (CEO) from February 5, 2017 heading the Corporate Management Committee. He was
the Chief Operating Officer (COO) of ITC since July 22, 2016 carrying full responsibility for the day-to-
day functioning of the Company. Before taking over as the COO, he was responsible for overseeing the
FMCG, Paperboards, Paper & Packaging and Agri Businesses of ITC. Puri is an alumnus of the Indian Institute of Technology, Kanpur and Wharton School of Business. He joined ITC in 1986.
Product and Service Portfoliov:
Cigarettes and cigar
Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors, Capstan,
Berkeley, Bristol, Flake, Silk Cut, Duke & Royal
Foods
Aashirvaad, Sunfeast, Bingo, Yippee, Kitchens of India, B Natural, mint-o, Candyman and
GumOn
Personal Care
Essenza Di Wills,Fiama, Vivel, Engage and Superia
Education and stationery
Classmate and Paperkraft
Lifestyle
John Players, Wills Lifestyle
Agarbattis
iKno and Aim brands of safety matches and the Mangaldeep brand of agarbattis
Hotels
ITC hotels are India's second largest hotel chain with over 100 hotels. Based in the Hotels
Division Headquarters at the ITC Green Centre in Gurgaon, New Delhi, ITC Hotels is also the
exclusive franchisee of The Luxury Collection brand of Starwood Hotels and Resorts in India.
Packaging and Printing
ITC's Packaging and Printing division operates manufacturing facilities
at Haridwar and Chennai and services domestic and export markets.
Information Technology
ITC operates through its fully owned subsidiary ITC InfoTech India Limited, which is a SEI
CMM Level 5 company.
Competitor’s Analysisvi:
Name Market Cap. Rs. cr.)
Sales Turnover
Net Profit
HUL
272,756.77
31,890.00
4,490.00
Godrej Consumer
63,152.43
4,748.10
848.03
Dabur India
56,888.30
5,369.84
998.33
Marico
40,149.44
4,850.75
842.70
Colgate
28,763.84
3,981.82
577.43
Emami
28,231.37
2,340.75
346.37
P and G
27,990.24
2,320.40
432.73
Godrej Ind
19,663.35
1,500.09
- 145.24
Gillette India
19,082.07
1,733.60
253.08
Bajaj Corp
6,824.09
792.54
220.96
Jyothy Labs
6,809.71
1,631.97
202.05
JHS Svendgaard
456.17
105.48
21.98
GKB Ophthalmics
34.91
38.32
0.63
News Including Corporate Announcement:
4 November 2017 - ITC is exploring the possibility of using land around temples, the railways
and national highways in order to expand its afforestation programme. These lands would not be
owned by ITC. ITC is in talks with temple committees in Telangana Sanjay Singh, CEO of ITC’s
paperboards, paper and speciality papers division told The Hindu during an interaction.ITC is
also in touch with the Indian Railways to utilise the stretches of land that they have, for our
afforestation programme.
2 November 2017 - Diversified company ITC Ltd on Thursday launched packaged potatoes under
a new brand called Farmland in its first step into the fresh fruit and vegetables segment which is
largely unorganized.
29 October 2017 - Company reported lower volumes on account of increase in tax incidence in
the GST regime. ITC’s business was also impacted due to non-availability of additional duty
surcharge credit on the transition stocks.
6 September 2017 - ITC shares fell 2.5 percent to close at Rs 275.55, After Macquarie
downgraded the cigarette major to neutral and preferred to switch to Hindustan Unilever, citing
fall in cigarette volumes.
8 August 2017 - The insurance regulator Insurance Regulatory and Development Authority has
reiterated that insurance behemoth Life Insurance Corporation (LIC) has to bring down its stakes
in ITC and L&T to below 15 per cent by December 2018.These two are considered as non-
strategic investments for LIC. While LIC holds 16.29 per cent stake in ITC, it holds 17.97 per
cent stake in L&T as of end June. However, LIC is free to continue with its strategic investments
in companies like Corporation Bank (18.9 per cent), LIC Housing Finance (40.3 per cent) and
Simplex Realty (22.9 per cent).
11 July 2017 - Rivals Britannia Industries Ltd and ITC Ltd, which have been at loggerheads over
the packaging of their digestive biscuits for more than a year, informed the Supreme Court that
they were headed for a settlement.
5 July 2017 - ITC announced the launch of a biscuit variety "enriched" with native Indian cow
milk. The Sunfeast NaatMaad Paal "biscuits are enriched with native Indian cow milk and
fortified with the goodness of eight essential vitamins, iron and calcium." It will be priced at Rs
10 for 83 gm and will be available at all retailers.
7 June 2017 - ITC has appointed Sandeep Sule as the new chief executive of its FMCG and
cigarette distribution business. Sule replaces B Sumant, who had the dual responsibility of
distribution and handling the overall FMCG business, including cigarettes, as its
president. Sumant, who is also a corporate management committee member at ITC, will continue
as the president of FMCG business. Sule was earlier the chief operating officer of the distribution
business for a year.
Marketing:
SWOT Analysis of Sunfeast:
•Etensive Distributon Network
•Providing a wide range of Biscuits•Innovative Advertisment
Strengths
•Dependence on Stores and Retailers
•Low Penetration in rural areas•Not an extensive overseas Market
Weakness
•Increasing demand for diet and sugar free biscuit
•Retaining loyal retailers and whole salers•Targeting interior area of India
Oppotunity
•Local bakery Products
•New Entrants•Margin war among the major brands
Threats
Marketing Mix:
Product Price Place Promotion Variety of
Products.
Attracts all type of Consumer.
Targets the consumer right from upper level to lower level income group.
Provides High Quality Product with a nominal price.
The price of sunfeast product is too affordable so that each class of people can afford it.
The price of sunfeast biscuits starts from Rs. 5 to Rs. 60 for per pack based on flavor and the ingredients offered.
The price of sunfeast noodles is also affordable starting from Rs. 10.
Sunfeast has a friendly relationship with their distributor, wholesalers , salesmen , etc.
Today sunfeast product has reached all the corner of India.
Sunfeast has replaced in the place of many of its competitors.
They adopt a unique kind of promotional activities in order to attract the mass world.
They have actor Sharukh khan as their brand ambassador for the sunfeast biscuit.
Segmenting, Targeting, Positioning of the Sunfeast:
BISCUITS SEGMENTING TARGETING POSITIONING Sunfeast glucose Natural goodness of
wheat Children between age group of 4-14 years 100gms-Rs5
Sunfeast orange Marie
A very differentiate offering
Housewives 200gms-Rs15
Sunfeast Marie light
Tight and crispy Children between age group of 4-14 years 200gms-Rs15 400gms-Rs25
Sunfeast orange cream
Smooth and yummy cream
Children between age group of 4-14 years 100gms-Rs10
Sunfeast butterscotch cream
Smooth and yummy cream
Children between age group of 4-14 years 100gms-Rs10
Sunfeast bourbon cream
Smooth and yummy cream
Children between age group of 4-14 years 100gms-Rs10
Sunfeast yippee Noodles
Pure Wheat Noodles Mothers , Teenagers 70gms – Rs.10
Product Life Cycle of Sunfeast:
•Dark Fantasy ChocoFills•HIFI
•Farmlite Oats
•Yumfills•Delishus
•Moms Magic
Introduction Stage
•Dream Cream•Bounce
•Milky Magic
Growth Stage
•Sunfeast Glucose
Maturity Stage
Finance:
Particulars FY 17 FY 16
Common Size
Analysis 2017
Common Size
Analysis 2016
Comparitive Analysis
2017
Incomes
Revenue From Operations 58731.52 55061.08 100.00% 100.00% 6.67% Other Income 1761.53 1530.8 3.00% 2.78% 15.07%
Total Income (I+II) 60493.05 56591.88 103.00% 102.78% 6.89%
EXPENSES
Cost of materials consumed 11979.03 11168.68 20.40% 20.28% 7.26%
Purchases of Stock-in-Trade 3477.56 2595.2 5.92% 4.71% 34.00% Changes in inventories of finished goods, Stock-in-Trade, work-in-progress and intermediates
592.57 -195.38 1.01% -0.35% -403.29%
Excise duty 15927.91 15868.98 27.12% 28.82% 0.37% Employee benefits expense 3631.73 3440.97 6.18% 6.25% 5.54%
Other expenses 7686.81 7731.78 13.09% 14.04% -0.58%
Total expenses 43295.61 40610.23 73.72% 73.75% 6.61%
EBITDA 17197.44 15981.65 29.28% 29.03% 7.61%
Depreciation and amortization expense
1152.79 1077.4 1.96% 1.96% 7.00%
EBIT 16044.65 14904.25 27.32% 27.07% 7.65%
Finance costs 24.3 53.6 0.04% 0.10% -54.66%
Share of profit of associates and joint venture
5.97 8.42 0.01% 0.02% -29.10%
PBT 16026.32 14859.07 27.29% 26.99% 7.86%
Current Tax 5546.16 5150.37 9.44% 9.35% 7.68%
Deferred Tax 2.93 207.84 0.00% 0.38% -98.59% Net Tax 5549.09 5358.21 9.45% 9.73% 3.56%
PAT 10477.23 9500.86 17.84% 17.26% 10.28%
Gross Profit and Net Profit Margin of the Company:
𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝑁𝑒𝑡 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠∗ 100
2017 = 10477.23
58731.52∗ 100
= 17.839
2016 = 9500.86
55061.08∗ 100
= 17.255
𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡 𝑀𝑎𝑟𝑔𝑖𝑛 = 𝐺𝑟𝑜𝑠𝑠 𝑃𝑟𝑜𝑓𝑖𝑡
𝑁𝑒𝑡 𝑆𝑎𝑙𝑒𝑠∗ 100
2017 = 16026.32
58731.52∗ 100
= 27.287
2016 = 14859.07
58731.52∗ 100
= 25.299
Working capital for the year:
𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑦𝑒𝑎𝑟 = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠 − 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
2017 = 26269.10 − 7121.01
= 19148.09
2016 = 24862.50 − 6658.46
= 18204.04
Debt-Equity ratio of the company:
𝐷𝑒𝑏𝑡 − 𝐸𝑞𝑢𝑖𝑡𝑦 𝑅𝑎𝑡𝑖𝑜 =𝑇𝑜𝑡𝑎𝑙 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
𝑆ℎ𝑎𝑟𝑒ℎ𝑜𝑙𝑑𝑒𝑟′𝑠 𝐸𝑞𝑢𝑖𝑡𝑦
2017 =55943.27
46412.93
= 1.205 𝑡𝑖𝑚𝑒𝑠
2016 =51691.88
42679.52
= 1.211 𝑡𝑖𝑚𝑒𝑠
Direct and indirect costs of the company:
As at March 31, 2017
Direct Cost
Raw Materials Consumed 11979.03
Purchase of stock in trade 3477.56 Finished Goods & Work in Progress 592.57
Total 16049.16
Indirect Cost
Depreciation and Amortization expenses 1152.79
Finance costs 24.3
Other Expenses 7686.81
Employee benefits expenses 3631.73
Total 12495.63
Fixed assets added during the year:
Formula= Current year- Previous year
PARTICLURS 𝐌𝐚𝐫𝐜𝐡 𝟑𝟏,𝟐𝟎𝟏𝟕 𝐌𝐚𝐫𝐜𝐡 𝟑𝟏,𝟐𝟎𝟏𝟔 Difference (in Cr.)
i. Tangible Assets
Land: Leasehold 13.26 13.41 -0.15
Land: Freehold 43.03 43.05 -0.02 Building 275.94 275.39 0.55
Plant & Equipment 299.83 291.68 -8.15
Furniture & Fixtures 22.95 20.94 2.01
Vehicles 12.40 11.08 -1.32
Office Equipment 6.08 6.88 -0.80
Total 673.49 662.43 -11.06
ii. Intangible Assets
Brands/Trademarks 1.22 1.34 -0.12
Computer Software 15.82 18.75 2.93
Total 17.04 20.09 3.05
iii. Capital Work-in
progress
24.96 12.22 12.74
Grand Total (i+ii+iii) 715.49 694.74 20.75
Previous Year 694.74 670.38 24.36
Human Resource Managementvii:
ORGANIZATIONAL STRUCTURE
Regional Branch Manager
Branch Manager
Assistant Branch Manager
3 Circle In charge (City, Metro & Up Countries)
Area Executive
Supervisor
Sales Man
District Manager
The Organization structure of ITC ltd. Was based on 3-tier governance Structure :
Strategic supervision (on behalf of the shareholders), being free from involvement in the task of strategic management of the Company, can be conducted by the Board with objectivity, thereby sharpening accountability of management.
Strategic management of the Company, uncluttered by the day-to-day tasks of executive management, remains focused and energised; and
Executive management of the divisional business and shared services free from collective strategic responsibilities for ITC as a whole, gets focused on enhancing the quality, efficiency and effectiveness of its business / shared services.
SKILL SETS REQUIRED IN THE COMPANY
According to the CEO of company i.e. Mr. Sanjiv Puri :
They do not believe in stereotypes. We believe diversity is essential for building a wholesome work environment. But there are certain basic attributes they look for:
Integrity
Intellectual Rigourn
A ‘will do ‘ attitude
Team Skills
Ability to think strategically
High Energy
Creativity
Leadership
JOD DESCROPTION AND JOB SPECIFICATION
For Marketing:
Job Description:
- Generate the business leads for the banquets
- Handle the in-bound as well as out-bound queries
- Must have handled a team
- Must know the basic metrics of working in a banquet sales of a five star Hotel
- Must have excellent written and spoken skills, strong negotiation power and a reliable business
acumen
- Excellent analytical skills with a proficiency in MS Office
- Must be flexible to work in all the shifts
- Must stay in the closer vicinity to the Hotel
Salary: INR 3,00,000 - 5,00,000 P.A.
Industry: Travel / Hotels / Restaurants / Airlines / Railways
Functional Area: Sales, Retail, Business Development
Role Category: Retail Sales
Role: Sales Executive/Officer
Employment Type: Permanent Job, Full Time
Keyskills: banquet sales, banquet, banquet sales executives, catering sales, hotel sales, m.i.c .e
For Human Resource:
Job Description: 1-5 years of experience in UK Recruiting/UK Staffing
One who can communicate effectively through the written word and verbally
A strong negotiator
One who has a solid understanding of technical recruiting and an ability to convince the
candidates
Experience in passive sourcing using LinkedIn etc.
Able to convince us about the knowledge of Applicant Tracking Systems
One with excellent experience and knowledge of Recruitment
Mode of Employment-Contract to hire (Directly on contract with ITC InfoTech)
Location: Bangalore
Salary: INR 3,00,000 - 8,00,000 P.A.
Industry: IT-Software / Software Services
Functional Area: HR, Recruitment, Administration, IR
Role Category: HR/ Recruitment / IR
Role: Recruitment Executive
Employment Type: Permanent Job, Full Time
Keyskills:
Sourcing, staffing, linkedin, uk recruitment, us recruitment
For Finance:
Job Description: Ensure vendors records are current, accurate, complete, and verified
Discuss discount opportunities, payment terms, and accounts statement with vendors either in
writing or verbally
Ensure accurate and efficient daily processing of employee expense reports and vendor invoices,
as well as monthly processing of corporate credit card charges
Seek the head of departments approval for invoices to be sent to vendors
Avail employees information regarding timelines for financial reporting
Assemble document and review system information in processing employee expense reports and
vendor invoices for payments
Obtain details about invoicing from operational staff and upload into the organizations billing
system
Verify accuracy of information in customers invoices, get the necessary internal approvals, and
process the invoices
Resolve bill discrepancies with Operations Unit by reconciling details on invoice with those on
operational reports
Establish a filing system for all documents to ensure safe keeping of records for future reference
Ensure all accounting projects assigned by management are completed
Salary: INR 1,75,000 - 3,00,000 P.A.
Industry: Travel / Hotels / Restaurants / Airlines / Railways
Functional Area: Hotels, Restaurants
Role Category: Other
Role: Fresher
Employment Type: Permanent Job, Full Time
Keyskills:
Finance, Accounting, Financial Reporting, Reconciliation, Payments, Invoicing, Corporate
Credit, File System, Document Review, Financial Analyst
Desired Candidate Profile
Education: UG -Any Graduate - Any Specialization, B. Com - Commerce
PG - Any Postgraduate - Any Specialization, MBA/PGDM - Any Specialization, Finance.
SOURCES OF RECRUITMENT
The process of finding and hiring the best-qualified candidate (from within or outside of an organization)
for a job opening, in a timely and cost effective manner. The recruitment process includes analyzing the
requirements of a job, attracting employees to that job, screening and selecting applicants, hiring, and
integrating the new employee to the organization.
•Promotion and transfers
• Job Position
•Employee Referrals
INTERNAL METHOD
•Campus RecruitmentDIRECT METHOD
•Advertisement
•Professional Journals
•Technical Magazines
INDIRECT METHOD
SELECTION PROCESS
1. Screening of Application: All applications received from various sources will be screened by the
concerned department and HR based on the job description and specification and the applicant
profile. The ratio between the number of vacancy and the number of candidate to be called for
test/interview shall be prepared.
2. Test: Depending upon the requirement of the job if required management may conduct written/
aptitude/ psychometric/ physical or any other test as deem fit. Shortlisted application will be send
formal letter for appearing test at least 15 days in advance. Qualifying criteria for the test will be determined by the management depending on the nature and requirement of the job.
3. Interview: All the candidates short listed for interview will be informed through a formal call
letter for attending interview at least 15 days in advance. The candidate will be interview by the interview panel.
4. Final Selection and Appointment: Recommendation of the interview panel will be put up
before the MD by the HR department for his approval. Selection of candidates will be strictly on
the basis of merit. Appointment letter will be issued to the finally selected candidates after duly
approved by MD.Before letter of appointment is issued to candidates HR department will ensure
the following:
Check and verify all the personal details furnished by the candidates.
Verify the certificates and other credentials.
Make necessary reference/antecedents verifications whenever required.
Screening of Application
Joining Formalities
Test Interview Final Selection and
appointment
5. Joining Formalities:
Employees joining shall first report in the HR department will facilitate in completing the joining
formalities such as filling of joining report necessary forms.
HR department will ensure that the candidates will be allowed to join subject to their being found
medically.
INDUCTION PROCESS:
An induction programme is an important process for bringing staff into an organisation. It provides an
introduction to the working environment and the set-up of the employee within the organisation. The process will cover the employer and employee rights and the terms and conditions of employment.
Assistants Under Training, commonly known as AUTs are students of premier engineering and
management institutes who choose to pursue their careers with ITC, straight after they graduate from their
institution. AUTs, after they join ITC, are taken through a one-week corporate induction programme
wherein various Business Heads introduce them to their businesses. The induction programme is also
aimed at facilitating a smooth transition from campus to the corporate world as well as to provide an
opportunity to interact with business leaders. On the whole the programme aims at giving an AUT an understanding of what defines ITC, how ITC works and the lives ITC touches!!!
Once AUTs join their respective businesses, they go through a division and function specific detailed
induction programme which provides them a thorough overview of the business model of the division,
introduces them to various functions within the business and gives them an extensively detailed insight
into their own function. The induction programme is supported by projects and stints which help grasp the
various nuances of the business and at the same time contribute to the growth of the Company.
TYPES OF TRAINING PROVIDED:
ON- THE-JOB TRAINING METHODS:
This type of training, the individual is placed on a regular job and taught the skills necessary to perform
the job. On-the job training has the advantage of giving firsthand knowledge and experience udder the
actual working conditions.
Job instruction
Coaching
OFF-THE-JOB TRAINING METHODS:
During this type of training, the trainee is separated from the job situation and his attention his focused
upon learning the material to his future job performance. Since the trainee distracted by job requirement, he can place his entire concentration on learning the job rather than spending his time in performing.
Vestibule Training method
Role Playing Method
Movies/videos/computer-based training
Discussion
PERFORMANCE APPRAISAL MODEL OF THE COMPANY:
Balanced Score Card: ITC successfully uses Balanced Score Card method for its appraisal. Balanced scorecard was prepared on FIVE parameters, which are as follows:
Customer perspective
Financial perspective
Internal perspective
Employee’s perspective
Social perspective.
EMPLOYEE BENEFITS PROVIDED:
List based on reports from current and former employees:
Insurance, Health & Wellness: Health Care & Insurance, Life Insurance, Disability Insurance,
Dental Insurance, Vision Insurance.
Financial & Retirement: Pension Plan, Stock Options or Equity Retirement Plan, Performance
Bonus.
Family & Parenting: Work from Home, Maternity & Paternity Leave, Childcare, Reduced or
Flexible Hours, Unpaid Extended Leave.
Vacation & Time Off: Vacation & Paid Time Off, Sick Leave, Bereavement Leave.
Perks & Benefits: Employee Discount, Free Lunch or Snacks, Employee Assistance Program,
Gym Membership, Company Car.
Professional Support: Diversity Program, Job Training & Tuition, Apprenticeship Program.
CAREER PLANNING IN THE COMPANY:
ITC believes the responsibility for career development that rests both with the individual and the
organization. While the organization provides opportunities for learning and growth, it is the individual's
responsibility to ensure he/she enhances his/her competencies to shoulder higher responsibilities. Career
development therefore is a two-way process. Above all, the key factor determining career growth is
meritocracy and performance. The Company believes that as the competitive scenario gets more intense,
specialism will increasingly become a source of unique competitive advantage. Certain specialisms are
enhanced by extended and in-depth application and 'longevity' in a position. This requires a unique
approach to career management of such 'specialists.' Some of the specialist positions are Company
Solicitor, Scientist, Leaf Blender, Product Development Specialist, Process Specialist, Instrumentation Specialist, Agronomist, Commodity Trader, Forex Manager, Corporate Communications Specialist etc.
ORGANIZATION CULTURE:
As per employee reviews it seems that most of the ITC limited employee thinks they have a good work
culture with great learning opportunity and great ethics. Employees respect and take care of each other.
However, the work life balance is not good due to long working hours, extensive touring and facilities are in remote areas, also there are too many layers of hierarchy leading to slow decision making.
iwww.ibef.org ii www.wikipedia.org iii www.itcportal.com
