ITC (company)

ITC Limited
Public
Traded as BSE: 500875
NSE: ITC
BSE SENSEX Constituent
CNX Nifty Constituent
Industry Conglomerate
Predecessor W.D. & H.O. Wills
Founded 24 August 1910[1][2]
(as Imperial Tobacco Company of India)
Headquarters Kolkata, West Bengal, India[3]
Key people
Yogesh Chander Deveshwar, (Chairman)[4]
Products Consumer goods
Tobacco
Hotels
Agribusiness
Paperboards & specialty papers
Packaging
Information technology
Revenue 53,748 crore (US$8.0 billion) (2016)[5]
15,037 crore (US$2.2 billion) (2015)[5]
9,607 crore (US$1.4 billion) (2015)[5]
Total assets 32,159 crore (US$4.8 billion) (2015)[5]
Number of employees
25,959 (Mar 2013)[6]
Divisions ITC Infotech, Surya Nepal Pvt. Ltd.
Website www.itcportal.com

ITC Limited or ITC is an Indian conglomerate headquartered in Kolkata, West Bengal.[3] Its diversified business includes five segments: Fast-Moving Consumer Goods (FMCG), Hotels, Paperboards & Packaging, Agri Business & Information Technology.[7]

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.[2] The company completed 100 years in 2010[8][9][10][11] and as of 2012-13, had an annual turnover of US$8.31 billion[12] and a market capitalization of US$45 billion.[6] It employs over 25,000 people[6] at more than 60 locations across India and is part of Forbes 2000 list.

History

ITC was formed on 24 August 1910 under the name of Imperial Tobacco Company of India Limited,[2] and the company went public on 27 October 1954.[1] The earlier decades of the company's activities centered mainly around tobacco products. In the 1970s, it diversified into non-tobacco businesses.[1]

In 1975, the company acquired a hotel in Chennai, which was renamed the 'ITC-Welcomgroup Hotel Chola' (now renamed to MyFortune, Chennai).[2]

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepali and British joint venture, with the shares divided between ITC, British American Tobacco and various independent domestic shareholders in Nepal. In 2002, Surya Tobacco became a subsidiary of ITC and its name was changed to Surya Nepal Private Limited.[13]

In 2000, ITC launched the Expressions range of greeting cards,[14][15] the Wills Sport range of casual wear,[16] and a wholly owned information technology subsidiary, ITC Infotech India Limited.[17]

In 2001, ITC introduced the Kitchens of India brand of ready-to-eat gourmet Indian recipes,[18][19] which are produced and sold internationally,[20] at first in cans and later in retort packages, and more recently on line[21] and at festivals.[22]

In 2002, ITC entered the confectionery and staples segments[23][24][25] and acquired the Bhadrachalam Paperboards Division[26] and the safety matches company WIMCO Limited.[27]

ITC entered the incense sticks or agarbattis business in 2003, selling its products under the Mangaldeep brand.

ITC diversified into body care products in 2005.[28][29]

In 2010, ITC launched its handrolled cigar - Armenteros - in the Indian market.[30]

The company began online sales in 2014.[31]

ITC owned "Chambal Agritech LTD" an Australian "Technico PTY" subsidiary in May, 2008, diversifying its business portal & to develop synergy between Seed Potato Production and Chip stock supply. later the name changed to "Technico Agri Sciences Ltd" wholly owned subsidiary of ITC Ltd.

Products and Brands

Classic Rich Taste (regular) pack of 20.

Cigarettes

ITC Ltd sells 81 percent of the cigarettes in India, where 275 million people use tobacco products and the total cigarette market is worth close to $6 billion (around Rs.65,000 crore) [32][33]

ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.[34][35]

Other businesses

Shareholding and listings

ITC's equity shares are listed on Bombay Stock Exchange, National Stock Exchange of India and Calcutta Stock Exchange.[50][51] The company's Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange.[52]

Shareholders (as on 31-March-2013) Shareholding[6]
Foreign companies (mainly British American Tobacco Company) 30.54%
Foreign Institutional Investors (FII) 19.68%
Banks, Financial Institutions, Insurance Companies and Mutual Funds 33.44%
Bodies Corporate 04.91%
Public and Others 10.59%
GDRs 00.30%
Total 100.00%

Employees

As per the Annual report of the company, it had 25,963 employees as on 31 March 2013,[6] out of which 3,043 were women.[12] It spent Rs. 2,145 crores on Employee benefits during the FY 2012-13.[53] During the same year, its attrition rate was 12%.[12]
Its Chairman Y C Deveshwar has won renowned awards and recognitions including Padma Bhushan from Govt. of India[6][54][55] and 7th best performing CEO in the world by Harvard Business Review.[56]
Meera Shankar, Indian ambassador to USA between 2009 and 2011, joined the board of ITC Limited as the first woman director in its history.[57] She is an additional non-executive director of the company.[58]

Outreach

e-Choupal

Main article: E-Choupal

ITC's e-Choupal initiative is designed to make the power of the Internet available to Indian farmers.[59] The company places computers with Internet access in rural farming villages, serving both as a social gathering place for exchange of information (choupal means gathering place in Hindi) and an e-commerce hub. As of July 2010, services through 6,500 e-Choupal across 10 states reach more than 4 million farmers in about 40,000 villages. The potential of e-Choupal is also being tested through pilot projects in healthcare, educational services, water management and cattle health management. In 2008, this initiative was recognised in the list of "Innovations to make markets more inclusive for the poor" in World Development Report Sep-2008 by the World Bank.[60]

ITC Sangeet Research Academy

ITC Sangeet Research Academy is a Hindustani classical music academy established in 1977 and located in Kolkata.[61] Some noted musicians are associated with this academy.[62]

Awards and recognitions

Questionable business practices

While ITC has been noted for its sustainability practices, questions have been raised about the ethics of giving award to a company that generates significant amount of revenue from tobacco business.[73] The company, has been known for seeking legal intervention against guidelines advocating prominent health advisories.[74]

See also

References

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  2. 1 2 3 4 "History and Evolution". ITC Limited. Retrieved 14 September 2013.
  3. 1 2 "The ITC Network: Registered Office". ITC Ltd. Retrieved 14 June 2014.
  4. "ITC Leadership - Board of Directors". ITC Ltd. Retrieved 14 June 2014.
  5. 1 2 3 4 http://www.moneycontrol.com/financials/itc/balance-sheet/ITC
  6. 1 2 3 4 5 6 7 "Annual Report 2012-13". ITC Limited. 17 May 2013. Retrieved 14 September 2013.
  7. 1 2 3 "ITC on Forbes Asia's Fab 50 companies". Forbes. 31 August 2013. Retrieved 14 September 2013.
  8. "ITC: Leading Multi-business conglomerate turns 100". Economic Times. 24 August 2010. Retrieved 15 September 2013.
  9. "ITC's 100 glorious years". rediff.com. 24 August 2010. Retrieved 15 September 2013.
  10. "Imperial touch". Business Today. 10 July 2011. Retrieved 15 September 2013.
  11. "100 Inspiring Years". ITC Limited. Retrieved 15 September 2013.
  12. 1 2 3 "Sustainability Report 2013". ITC Limited. Retrieved 15 September 2013.
  13. "ITC makes Surya Nepal a subsidiary, stake reaches 59%". The Economic Times. 23 August 2002. Retrieved 14 June 2014.
  14. "ITC says it with Expression". The Hindu. 18 October 2000. Retrieved 14 June 2014.
  15. "ITC plans launching one or more mass products to grow personal care and food businesses". The Economic Times. 9 May 2011. Retrieved 14 June 2014.
  16. "ITC to inject Rs.150 cr into 100 Wills Sport stores". ITC Media Centre. 23 June 2001. Retrieved 14 June 2014.
  17. "ITC's impetus on IT helped form ITC Infotech". 12 November 2003. Retrieved 14 June 2014.
  18. "ITC ready-to-eat foods on shelves". The Hindu. 29 August 2001. Retrieved 22 September 2013.
  19. "ITC’s food business revenue hits billion-dollar mark". Times of India, Udit Prasanna Mukherji & Namrata Singh | Jun 30, 2015
  20. "Processed Food Sector in India: A Review". FnB News, 02 May, 2016, 08 : 00 AM [IST] Dr Kakali Majumdar
  21. "Now, FMCG majors push their products online". Business Standard, Sounak Mitra | New Delhi August 12, 2014
  22. "In the company of the Sheherwalis". New Kerala, Sanjoy Ganguly
  23. "ITC launches atta brand". Economic Times. 7 Jun 2002. Retrieved 22 September 2013.
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  25. "'Bingo!' ITC has finally got it". rediff.com. 1 May 2007. Retrieved 14 June 2014.
  26. "ITC Bhadrachalam to merge with ITC". rediff.com. 6 September 2001. Retrieved 14 June 2014.
  27. "ITC buys Wimco for Rs 200 cr". Business Standard. 2 July 2005. Retrieved 14 June 2014.
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  29. "Need to Know - After Vivel soaps, ITC launches shampoo". Livemint. 26 June 2008. Retrieved 14 June 2014.
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  32. "ITC on a health kick post global anti-smoking regulations". First Post. 6 September 2012. Retrieved 21 September 2013.
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  34. "Cigarettes". ITC Limited. Retrieved 15 September 2013.
  35. "ITC hikes prices of select cigarette brands". Indian Express. 2 September 2013. Retrieved 15 September 2013.
  36. 1 2 "Foods". ITC Limited. Retrieved 15 September 2013.
  37. "ITC pips Hindustan Unilever to become India's leading branded food and beverages company". Economic Times. 22 May 2013. Retrieved 15 September 2013.
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  40. "Education and Stationery". ITC Limited. Retrieved 15 September 2013.
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  42. "ITC increases focus on Classmate". Business Standard. 7 July 2013. Retrieved 15 September 2013.
  43. "Swedish Match divests holding in Wimco to ITC subsidiary — To make open offer for 20 pc equity". The Hindu. 2 July 2005. Retrieved 15 September 2013.
  44. "Safety Matches". ITC Limited. Retrieved 15 September 2013.
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  50. "General Information". ITC. Retrieved 14 September 2013.
  51. "Listing Information - ITC". Economic Times. Retrieved 15 September 2013.
  52. "ITC GDR ne". Luxembourg Stock Exchange. Retrieved 14 September 2013.
  53. "Consolidated Financial Report 2014-15" (PDF). ITC Limited. 17 May 2015. Retrieved 15 September 2013.
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  56. "ITC chairman YC Deveshwar ranked seventh best performing CEO globally: Harvard Business Review". Economic Times. 23 December 2012. Retrieved 15 September 2013.
  57. "ITC inducts Meera Shankar in its board as the first women ever". The Times Of India. 4 August 2012. Retrieved 15 September 2013.
  58. "ITC Board of Directors". Retrieved 15 September 2013.
  59. "Our Profile". ITC. Retrieved 25 September 2013.
  60. "Human Development Insights" (PDF). United Nations Development Programm. 15 September 2008. Retrieved 21 September 2013.
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  62. "Visiting Researchers". itcsra.org. Retrieved 21 September 2013.
  63. SHRAWAN (2013-05-29). "ANNEX IV: LIST OF AWARD WINNERS OF RAJIV GANDHI NATIONAL QUALITY AWARDS" (PDF). http://www.bis.org.in. New Delhi: Bureau of Indian Standards. Retrieved 2014-05-15. External link in |website= (help)
  64. "Asia's Fab 50 Companies". Forbes. 31 August 2013. Retrieved 14 September 2013.
  65. "TCS replaces Tata Steel as India's most admired company". Times of India. 9 July 2013. Retrieved 14 September 2013.
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  67. "ITC Hotels rated as 'greenest luxury hotel chain in the world'". Deccan Herald. 19 July 2011. Retrieved 15 September 2013.
  68. "ITC is world's 6th largest value creator: BCG report". Financial Express. 22 September 2010. Retrieved 15 September 2013.
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  70. "ITC e-Choupal wins Stockholm Challenge Award". The Hindu. 13 May 2006. Retrieved 15 September 2013.
  71. "...And ITC's e-Choupal gets Stockholm Award". Indian Express. 13 May 2006. Retrieved 15 September 2013.
  72. "India's Most Trusted Brands 2014".
  73. http://tobaccocontrol.bmj.com/content/17/5/297.full
  74. http://www.reuters.com/article/us-india-tobacco-idUSKCN0XJ1DU
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