best company i can bet on it

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Yash Surana

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CONTENTS
 ITC AT-A-GLANCE
 HISTORY
 BUSINESSES
 BOARD OF DIRECTORS
 SHAREHOLDING PATTERN
 OPERATING RESULTS
 e-Choupal

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ITC AT-A-GLANCE
 ITC is one of India's foremost private sector companies with a market
capitalisation of nearly US $ 9 billion and a turnover of US $ 3 billion.
 Rated among the World's Leading Companies by Forbes magazine, ITC ranks
third in pre-tax profit among India's private sector corporations.
 ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty
Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods &
Confectionery, Greeting Cards and other FMCG products
 ITC's diversified status originates from its corporate strategy aimed at creating
multiple drivers of growth anchored on its time-tested core competencies:
unmatched distribution reach, superior brand-building capabilities, effective
supply chain management and acknowledged service skills in hoteliering.
 ITC's FMCG businesses have one of the largest retail networks in the country,
consisting of over 2 million retailers. ITC employs over 20,000 people at more
than 60 locations across India
 ITC has powerful brands like Wills, John Players, Hotel Grand Maratha,
Sunfeast.

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HISTORY
 1910 ITC was incorporated under the name of 'Imperial Tobacco
Company of India Limited‘
 1925 ITC's Packaging & Printing Business Division was set
up
 1975 ITC launched its Hotels business
 1979 ITC entered the Paperboards business
 1985 ITC set up Surya Tobacco Co. in Nepal
 1990 ITC set up the International Business Division (IBD)

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HISTORY
 2000 ITC’s e-Choupal initiative began
 2000 ITC also entered the Lifestyle Retailing business
 2000 ITC Infotech India Limited was set up
 2001 Name changed to ITC Limited
 2001 ITC made its entry into the branded & packaged Foods
business
 2002 Safety Matches initiative
 2003 ITC's foray into the marketing of Agarbattis
 2005 ITC has acquired Wimco Ltd

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BUSINESSES
 Cigarettes:
 ITC is the market leader in cigarettes in India
 Highly popular portfolio of brands includes India Kings, Gold
Flake, Navy Cut, Scissors, Capstan, Berkeley and Bristol.
 ITC's share of filter cigarettes in the country is more than 70%.
 ITC's cigarettes are produced in its state-of-the-art factories at
Bangalore, Munger, Saharanpur and Kolkata.
 Foods:
The Foods business is today represented in 4 categories in the
market. These along with popular brands are:
 Ready To Eat Foods : Aashirvaad ReadyMeals
 Staples : Aashirvaad Atta, Aashirvaad Salt
 Confectionery : "Mint-O" and "Candyman" .
 Snack Foods : Sunfeast

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BUSINESSES
 Lifestyle and retailing:
 Nationwide retailing presence
 Wills Lifestyle chain
 John Players range of men's apparel
 The brand is available across the country through 23
exclusive stores and 2500 multi-brand outlets
 Greeting, gifting and Stationary:
 Second largest player in India's greeting cards industry
 ‘Expressions’ range of Greeting Cards
 Available through 12000 multi brand outlets in over 700
cities nationally.

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BUSINESSES
 Safety Matches:
 Brands like iKno, Mangal Deep, VaxLit, Delite and Aim.
 ITC has recently acquired Wimco Ltd, a unit of global major Swedish Match
AB(popular brand is Ship)
 ITC’s market share in the match stick industry now stands at 25%.
 Agri Exports:
 ITC's International Business Division (IBD) is the country's second largest
exporter of agri-products
 ITC's unique strength in this business is the extensive backward linkages it
has established with the farmers.
 Leaf Tobacco:
 It is the largest buyer, processor and exporter of cigarette tobaccos in India.
 ITC processes and delivers 100 million kgs of high quality tobaccos per
annum.
 It has been India’s single largest integrated source of quality tobaccos for
customers in 37 countries for last 6 decades.

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BOARD OF DIRECTORS
 Chairman Yogesh Chander Deveshwar
 Executive Director Sahibzada Syed Habib ur
Rehman Anup Singh
Krishnamoorthy
Vaidyanath
 Non Executive Director Charles Richard Green
Yesh Pall Gupta
Ajeet Prasad
P B Ramanujam
Basudeb Sen
Ram S Tarneja
Balakrishnan
Vijayaraghavan
 Company Secretary Bishwa Behari Chatterjee
 Addtnl Non-Executive J P Daly
Director

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SHAREHOLDING PATTERN
53%
34%
1%
12%
Foreign Holdings
Govt. / Financial
Institutions
Corporate Bodies
Other including
Indian Public

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OPERATING RESULTS
2000 2001 2002 2003 2004
GROSS INCOME 8069 8827 9982 11194 12040
Excise Duties etc. 4134 4475 4781 5159 5345
Net Income 3935 4353 5202 6035 6695
Cost of Sales 2475 2516 3156 3712 4110
PBDIT 1460 1836 2046 2323 2585
PBDT 1347 1740 1979 2294 2561
Depreciation 119 140 198 237 242
PBIT 1342 1696 1847 2086 2344
Interest 113 96 67 30 25
PROFIT BEFORE TAX 1229 1600 1780 2056 2319
Tax 437 594 591 685 726
PROFIT AFTER TAX 792 1006 1190 1371 1593
Dividends 225 270 334 419 559
Foreign Exchange Earnings 688 697 948 1294 1078
All figures in Rs. Crores

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Revenue Mix FY 04 (%)

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e-Choupal
The Value Chain - Farm to Factory Gate

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e-Choupal
 ITC’s IBD has conceived e-Choupal as a more
efficient supply chain
 Specifically designed to tackle the challenges posed
by the unique features of Indian agriculture
 Process in detail
 e-Choupal services reach out to
 3.5 million farmers
 31000 villages
 There are 5200 internet kiosks across 6 states.
 On the anvil are plans to channelise services related
to micro-credit, insurance, health and education
through the same ‘e-Choupal’ infrastructure

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