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    BCG Matrix of Itc LTD

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    Neha Lodaya
    The document provides an overview of ITC Ltd's various business divisions using a BCG matrix analysis. It summarizes the divisions as follows: 1) FMCG Cigarettes is the core cash cow business with over 70% market share but low growth. 2) Hotels and Paperboards & Packaging are star businesses with high market share and high growth. 3) Agri Business is also a star due to its large scale, high growth and market leadership in exports. 4) FMCG Others is a question mark with high growth potential but lower current market share. 5) ITC Infotech has low market share and growth and is considered a dog.

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    BCG Matrix of Itc LTD

    Uploaded by

    Neha Lodaya
    179 views27 pages
    The document provides an overview of ITC Ltd's various business divisions using a BCG matrix analysis. It summarizes the divisions as follows: 1) FMCG Cigarettes is the core cash cow business with over 70% market share but low growth. 2) Hotels and Paperboards & Packaging are star businesses with high market share and high growth. 3) Agri Business is also a star due to its large scale, high growth and market leadership in exports. 4) FMCG Others is a question mark with high growth potential but lower current market share. 5) ITC Infotech has low market share and growth and is considered a dog.

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    36556965 Bcg Matrix of Itc Ltd

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    The document provides an overview of ITC Ltd's various business divisions using a BCG matrix analysis. It summarizes the divisions as follows: 1) FMCG Cigarettes is the core cash cow business with over 70% market share but low growth. 2) Hotels and Paperboards & Packaging are star businesses with high market share and high growth. 3) Agri Business is also a star due to its large scale, high growth and market leadership in exports. 4) FMCG Others is a question mark with high growth potential but lower current market share. 5) ITC Infotech has low market share and growth and is considered a dog.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    179 views27 pages

    BCG Matrix of Itc LTD

    Uploaded by

    Neha Lodaya
    The document provides an overview of ITC Ltd's various business divisions using a BCG matrix analysis. It summarizes the divisions as follows: 1) FMCG Cigarettes is the core cash cow business with over 70% market share but low growth. 2) Hotels and Paperboards & Packaging are star businesses with high market share and high growth. 3) Agri Business is also a star due to its large scale, high growth and market leadership in exports. 4) FMCG Others is a question mark with high growth potential but lower current market share. 5) ITC Infotech has low market share and growth and is considered a dog.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 27

    BCG Matrix of ITC Ltd.

    ITC Ltd.
    Formerly Known as Indian Tobacco Company Formerly Known as Imperial Tobacco Company

    ITC Timeline

    1925

    1975 1979

    1990

    2000

    1910

    2010

    1910 1925 1975 1979 1990 2000 2000 2000

    Incorporation of 'Imperial Tobacco Company of India Limited'. Setup of Packaging & Printing Business Launched its Hotels business. Entered the Paperboards business Set up the Agri Business Division Launched a line of high quality greeting cards under the brand name 'Expressions' Entered the Lifestyle Retailing business with the Wills Sport. Spun off ITC Infotech India Limited.

    ITC Timeline

    2001 2005

    1910

    2010

    2001 2002 2002 2003 2005 2007

    Introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes Launch of the brands mint-o and Candyman confectionery and Aashirvaad atta Started marketing popular safety matches brands like iKno, Aim Foray into the marketing of Agarbattis (Mangaldeep) Introduced Essenza Di Wills, an exclusive range of fine fragrances Entered the fast growing branded snacks category with Bingo!.

    2007 Launched the 'Superia' range of Soaps and Shampoos in the mass-market segment.

    Corporate Governance Structure

    ITC Ltd.

    Agri Business Paperboards & Packaging Infotech

    FMCG-Cigarettes

    FMCG-Others

    Hotels

    FMCG-Cigarettes
    Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake

    'Best Manufacturer of Cigarettes for the year 2007'

    FMCG-Cigarettes
    Started in 1910 As Companys Core Business Market leadership in all segments - geographic & price (70% Market Share) Extensive FMCG distribution network (Direct servicing of 1,00,000 markets & 2 million retail outlet) Cigarettes account for only 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation. Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes. (Biri : Cigarettes ratio = 10 : 1) Annual per capita adult cigarette consumption in India world average which is 141 is appx. one tenth

    In 2001 - Lost 15% of Its Business Because of Rise in Excise Duty In 2007 - VAT Was charged at 12.5% which increased the price of cigarettes by 84ps per cigarette. Hence ITC had to shut down their business of Plains (i.e. Non Filter Cigarettes) which was 20% of total FMCG Cigarette Business.

    FMCG-Others
    Ashirvad Atta, Kitchens Of India, Mint-o, Sunfeast, Candyman, Bingo, Superia, Wills LifeStyle, Fiama Di Wills, Expressions, Classmate

    Superbrand 2006 - Superbrand Council.

    FMCG-Others
    Ashirvad Atta is now #1 selling. Sunfeast Biscuits is ranked #3.

    Bingo, launched in August 2007, now enjoys 16% market share.


    November 2007 Mint-o overtakes its competitor Chlormint Classmate brand already the most widely distributed stationary brand in India Kitchens of India has about 48% market share in India and a huge export potential. Ready to Eat food Market is estimated to be Rs.700m. Safety Matches market at Rs. 1250 crores p.a. for 24 billion match boxes which is targeted by ITCs iKno, Aim, Aim Mega, Aim Metro. Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship. Mangaldeep the only National brand in the country serves the nations 900cr incense sticks market.

    Hotels
    ITC Maurya (Delhi), ITC Maratha (Mumbai), ITC Grand Central (Mumbai), ITC Sonar (Kolkatta), ITC Windsor (Bengaluru), ITC Kakatiya (Hyderabad), ITC Mughal (Agra).

    Bukhara Restaurant named as Best Indian Restaurant in the World.

    Hotels
    Hotel Brands: ITC-WelcomGroup, WelcomHeritage & Fortune. Totally 90 Hotels, 77 Destinations and 5500 Rooms under management.

    Destinations include most of India as well as Singapore and Dubai.


    Hosted a galaxy of world dignitaries like Bill Gates to Bill Clinton, Condoleezza Rice to Benazir Bhutto. Restaurant Brands: Bukhara, Dum Pukht and Dakshin.

    Agri Business
    eChoupal, Agri Exports, Leaf Tobacco

    Innovation for India Award 2006 for ITC e-Choupal in the Social Innovations category for business organizations

    Agri Business
    ITC Agri Business is one of Indias largest exporter of agricultural commodities.

    June 2000, eChoupal strategic and cost effective sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.)
    eChoupal - Services reaches to 4 million Farmers who are growing Wheat, Rice, Pulses, Soyabean, Coffee in over 40,000 villages thru nearly 6,500 kiosks across nine states. Diverse range of goods/services : FMCG, consumer durables, agri-inputs. Farmer Financial Services - insurance (focus: weather), credit (focus: Kisan credit card scheme) Rural Retail 18 Choupal Sagars Agenda 2012 is to cover 15 states with 1,00,000 Villages with about 20,000 eChoupal Kiosks servicing about 10 million farmers.

    Agri Business Leaf Tobacco (ILTD)


    Largest Buyer, Processor and Exporter of leaf tobacco in India. Exports to about 48 countries. ITC processes about 120 million kgs of high quality tobacco yearly. Overall 550m Kg of tobacco is produced in India. Factories have integrated warehousing complexes. Enabled successful venture into spices business. Golden Leaf Awards 2007 in the categories Most Committed to Quality The International Quality Rating System IQRS Level 7, awarded by Det Norske Veritas in March 2006.

    Packaging & Paperboards


    Packaging & Paperboards and Specialty Paper

    Indian Manufacturing Excellence Gold Award 2007 and 2006 to Unit Bollaram by Frost & Sullivan

    Packaging & Paperboards


    Annual paperboard demand appx. 1.1 million tonnes Indian paperboard market growing at 7% p.a. Significant export opportunities for high quality Indian manufacturers ITC paperboards exports - Rs. 2 billion appx. ITCs packaging unit - Indias largest converter of paperboard into high quality printed packaging Provides superior packaging solutions to the cigarettes and new FMCG businesses India has low per capita usage at around 6 kgs p.a. (World average over 50 kgs p.a.) ITC Bought 0.5% in Ballarpur Industries in July 2008.

    Infotech
    ITC Infotech Ltd.

    Featured amongst Top 100 Global Outsourcing Companies in the Leaders category - International Association of Outsourcing Professionals

    Infotech
    ITC Infotech Ltd. Is a wholly owned subsidiary of ITC Ltd. ITC Infotech is responsible for developing & maintaining the entire ITC eChoupal infrastructure. Although a separate entity and brand, ITC Infotechs primary job is to keep ITC as a group upto date with latest technology.

    BCG Matrix
    BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis.

    Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines.
    This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

    BCG Matrix

    Summary on ITCs SBUs

    REVENUES Y/E March (Rs cr) FY2010 FY2009

    Growth-Share Matrix

    % % Growth Contrib. 7.7 48.6


    11.6 10.5 12.6 -

    % Market Share Growth Share

    FMCG-Cigarettes FMCG-Others
    Hotels Agri Business Paperboards & Packaging ITC InfoTech

    13,825.6 12,833.7 2,511.1 1,689.5


    1,100.2 985.7

    58.41 10.61
    4.65 16.34 9.99 -

    70% 21%
    90 Hotels

    Low High
    High High High Low

    High Low
    High High High Low

    3,868.4 3,501.3 2,364.3 2,100.1 -

    2nd Largest Exporter


    26% -

    ITC Ltd on BCG Matrix (Conclusion)

    Star Agri Business Hotels Paperboards & Packaging

    Question mark FMCG-Foods

    G R O W T H

    Cash Cow FMCG-Cigarettes

    Dog ITC Infotech

    MARKET SHARE

    sector

    Investment 10-11

    Investment 09-08

    revenue

    FMCG cigarette
    FMCG others hotels Paper and board

    88Cr
    483Cr 400-600 Cr 300Cr

    92Cr
    297Cr Below 400Cr 252Cr

    9826.02Cr
    4482 Cr 5683.03cr 2821.96Cr

    Thank you..

    Ashish Niraj Neha Jaikishan Tanvi Nidhi

    05 11 18 29 31 32

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