1. I.T.C Group
Introduction and SWOT of ITC Group
Name: Bhupathi Raju Nirupam Varma
BBA - A

2. INTRODUCTION :
 ITC is an Indian public conglomerate company
headquartes is in Kolkata, West Bengal, India. Its
diversified business includes four segments: Fast
Moving Consumer Goods
(FMCG), Hotels, Paperboards, Paper &
Packaging and Agri Business. ITC's annual
turnover stood at $7 billion and market
capitalization of over $34 billion. The company
has its registered office in Kolkata.

3. HISTORY
 ITC was incorporated on August 24, 1910 under the
name Imperial Tobacco Company of India
Limited. As the Company's ownership progressively
Indianised, the name of the Company was
changed from Imperial Tobacco Company of India
Limited to India Tobacco Company Limited in
1970 and then to I.T.C. Limited in 1974. In
recognition of the Company's multi-business portfolio
encompassing a wide range of businesses - Fast
Moving Consumer Goods comprising
Foods, Personal Care, Cigarettes and
Cigars, Branded Apparel, Education and Stationery
Products, Incense Sticks and Safety
Matches, Hotels, Paperboards & Specialty

4. SWOT
S - Strength
W - Weakness
O - Opportunities
T - Threats

5. STRENGTS :
 On 31st march, 2010, ITC’s market cap was Rs.
114000 crores with a Gross income of Rs. 26,863
crores and Profit after tax of Rs. 4061 crores. The
company continues its impressive record of financial
performance.
 ITC’s portfolio of products and services is
represented by over 50 energetic Brands in a range
of more than 650 stock keeping units (SKUs).
 ITC’S products are available in over 6 million retail
outlets in the country. Its formidable Distribution
organisation directly services more than 2 million of
these retail outlets. It used its experience of
transporting and distributing tobacco products to
remote and distant parts of India to the advantage of

6.  ITC has a status of being ‘Water Positive’ for the
8th consecutive year, ‘Carbon Positive’ for the 5th
year in succession and ‘solid waste recycling
positive’ for 3 years in a row. ITC is the only
enterprise in the world of its size to have
achieved and sustained these three global
environmental distinctions. As consumers and
investors become more environment
friendly, these considerations will provide the
organisation an opportunity to create USPs and
stronger brand loyalty and brand equity

7. Weakness :
 To fund its cash guzzling FMCG start-up, the
company is still dependent upon its tobacco
revenue. Cigarettes account for 47% of the
company’s turnover and for 80% of its profits. So
there is an argument that ITC’s move into FMCG
is being subsidised by its tobacco operations.
 ITC is a local company. It does not have a large
portfolio of exports in either products or services.
This makes the company comparatively weak in
terms of being able to leverage global
opportunities, talent & financing

8.  Although ITC is a diversified company trading in
a number of business sectors such as
cigarettes, hotels, paper, agriculture, packaged
foods and confectionary, branded
apparel, personal care and other FMCG
products, greeting cards, Information
Technology, safety matches, incense sticks and
stationery etc. Yet, it does not have presence in
many important sectors such as
insurance, infrastructure, banking and financial
services, BPO, telecom, automotive etc. and thus
becomes comparatively weak when compared
with other conglomerates like the Bharti

9. Opportunities :
 ITC’s products & services are of high quality. If ITC
enter into any business or launch any
product, consumer know its ITC’s product, consumers
shall trust these to be of good quality. ITC’s brand
equity would make ITC successful in most sectors
 A corporate must have the right organisational and
investment capability and this must coincide with a
growth stage in the economy in which it operates. This
seems to be a perfect setting for ITC. Given the
consumption of most products and services in India at
a level far below the global standards and that the
Indian economy is on a roll make it a perfect platform
for a company like ITC which already is at a fairly

10. Threats :
 The obvious threat is from competition, both
domestic and international. The law of economies
dictate that if competitors see that there is a solid
profit to be made in an emerging economy, more
and new products and services will be made
available. Global companies will see India as an
exciting opportunity for themselves to find new
market segment for their own offerings. This will
put ITC under constant and sustained competitive
pressure from international offerings with deep
pockets for a long battle.

11.  Tobacco and allied product businesses, a major cash
cow for ITC, will remain under public, anti-
tobacco, health lobbies and governments through
higher excise duties, advertising restrictions, and
packaging guidelines, point of sale restrictions, cancer
and TB campaigns with even a remote possibility of
complete ban.
 Wide income disparities leading to social
tensions, terror acts, political risks, legislation
changes, tiffs with taxation and excise authorities and
public outrage from negative impacts of products d
services remain general treats for the company.
The above, though few, could be potent threats to the
company.
In summary, ITC will need to overcome its

13. THE END