Company Background
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion (Exhibit 1). ITC is rated among the World's Most Reputable Companies by Forbes magazine. ITC also ranks amongst India's top 10 `Most Valuable (Company) Brands'.
The market leader in Cigarette business in India, the company has a diversified presence in many industries including Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. ITS is gaining market share even in businesses of packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
ITC employs over 24,000 people at more than 60 locations across India. ITC also has presence in Nepal, where they are into cigarette and apparel manufacture through their fully own subsidiary Surya Nepal Limited.
ITC AS A DIVERSIFIED CONGLOMERATE
ITC started off as a company with a focused approach towards growth and consolidation of its Cigarette and Tobacco business, which dominated its strategic intent till the 1960s. However, the 1970s saw the company venturing into other sectors. The company entered the printing and packaging business and also the core sector of paper and paperboard manufacture, the move basically a strategic backward integration driven by the Government’s emphasis and support to the manufacturing sector. It also entered the Hospitality industry by acquiring a hotel in Chennai, Now known as the ITC-Chola. The entry was again motivated by the government which was encouraging the development of businesses that had the potential to generate foreign excha ...