ITC Limited: Difference between revisions

{{Short description|Indian multinational conglomerate company}}

| logo_size = 250px

| traded_as = {{Unbulleted list|{{BSE|500875}}|{{NSE|ITC}}|[[BSE SENSEX|BSE SENSEX constituent]]|[[NIFTY 50|NSE NIFTY 50 constituent]]}}

| industry = [[Conglomerate (company)|Conglomerate]]

| foundation = {{Start date and age|df=yes|24 August 1910}}<ref name=HistoryET>{{cite news |url=http://economictimes.indiatimes.com/itc-ltd/infocompanyhistory/companyid-13554.cms |title=Company History – ITC Ltd. |publisher=Economic Times |access-date=15 September 2013}}</ref><ref name=History>{{cite web |url=http://www.itcportal.com/about-itc/profile/history-and-evolution.aspx |title=History and Evolution |publisher=ITC Limited |access-date=14 September 2013}}</ref>

| location = Virginia House, [[Kolkata]],<br />[[West Bengal]], [[India]]<ref name = 'Headquarters'>{{cite web|url=http://www.itcportal.com/itc-address/corp.aspx|title=The ITC Network: Registered Office | publisher=ITC Ltd. | access-date=14 June 2014}}</ref>

| products = {{hlist| [[Fast-moving consumer goods|Consumer goods]] |[[Cigarettes]] |[[Apparel]] |[[Education]]|[[Hotels]] and [[Resorts]]|[[Paperboard]]s & [[Paper|Specialty papers]] |[[Packaging and labeling|Packaging]]|[[Agribusiness]]|[[Information technology]] }}

| revenue = {{increase}}{{INRConvert|52001|c}} (2020)<ref name="fy2018" />

| operating_income = {{increase}}{{INRConvert|20081|c}} (2020)<ref name="fy2018" />

| net_income = {{increase}}{{INRConvert|15584|c}} (2020)<ref name="fy2018" />

| assets = {{increase}}{{INRConvert|77367|c}} (2020)<ref name="fy2018" />

| equity = {{increase}}{{INRConvert|62021|c}} (2020)<ref name="fy2018" />

| num_employees = 27,279 (2019)<ref name="fy2018" />

| divisions =

| subsid = [[ITC Hotels]] <br> ITC Paperboards and Specialty Papers Division <br> ITC Infotech <br> Sunrise Foods

| area_served = {{unbulleted list|[[Indian subcontinent]]|[[Arab states of the Persian Gulf|Gulf countries]]}}

| homepage = {{URL|https://www.itcportal.com/}}

| footnotes = <ref name="fy2018">{{cite web|url=https://www.moneycontrol.com/india/stockpricequote/cigarettes/itc/ITC|title=ITC Ltd. Financial Statements|website=moneycontrol.com |date=4 February 2020 |access-date=4 February 2020}}</ref>

'''ITC Limited''' is an Indian company headquartered in [[Kolkata]], [[West Bengal]].<ref>{{Cite web|url=https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx|title=ITC – History and Evolution|website=www.itcportal.com|access-date=25 September 2018}}</ref> ITC has a diversified presence across industries such as [[cigarette]]s, [[Fast-moving consumer goods|FMCG]], [[hotel]]s, [[Packaging and labeling|packaging]], [[paperboard]]s and specialty papers and [[agribusiness]].<ref>{{Cite web|title=About ITC Ltd {{!}} Company information {{!}} capitalmarket|url=https://www.capitalmarket.com/Company-Information/Information/About-Company/ITC-Ltd/301#:~:text=ITC%20Ltd%20is%20one%20of,Matches%20and%20other%20FMCG%20products.|access-date=28 July 2020|website=www.capitalmarket.com}}</ref>The company has a total of 13 businesses in 5 segments. Also there are 90 countries where ITC exports its products. Its products are available in 6 million retail outlets. <ref>{{Cite web|title=Company's Annual Report 2019-20|url=https://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2020/pdf/ITC-Report-and-Accounts-2020.pdf|url-status=live}}</ref>

Established in 1910 as the '''Imperial Tobacco Company of India Limited''', the company was renamed as the '''India Tobacco Company Limited''' in 1970 and later to '''I.T.C. Limited''' in 1974. The company now stands renamed to '''ITC Limited''', where "ITC" today is no longer an acronym or an initialised form.<ref>{{Cite web|title=ITC - History and Evolution|url=https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx|website=www.itcportal.com|access-date=30 April 2020}}</ref><ref>{{Cite web|title=Remade for India: India Tobacco Company's journey from modest to multi-business enterprise|url=https://www.indiatoday.in/magazine/cover-story/story/20170821-itc-multi-business-enterprise-hotels-hospital-venture-farm-produce-1028892-2017-08-11|last1=11 August|first1=Chinki Sinha|last2=August 21|first2=2017 ISSUE DATE|website=India Today|language=en|access-date=30 April 2020|last3=August 11|first3=2017UPDATED|last4=Ist|first4=2017 19:45}}</ref><ref>{{Cite news|title=ITC Ltd.|work=Business Standard India|url=https://www.business-standard.com/company/itc-301/information/company-history|access-date=30 April 2020}}</ref><ref>{{Cite web|title=Brand ITC: Corporate India's Century Old Success Story|url=https://www.nextbigbrand.in/brand-itc-corporate-indias-century-old-success-story/|date=29 March 2019|website=Next Big Brand|language=en-US|access-date=30 April 2020}}</ref> The company completed 100 years in 2010 and as of 2019–20, had an annual turnover of US$10.74 billion and a [[market capitalisation]] of US$35 billion. It employs over 36,500 people at more than 60 locations across India and is part of the [[Forbes 2000]] list. Within a relatively short span of time, ITC has built 25 mother brands, many of which are market leaders in their segments. This vibrant portfolio of brands represents an annual consumer spends of over H19,700 crore today. ITC’s world-class Indian brands anchor competitive and inclusive value chains that create, capture and retain larger value within the country. <ref>{{Cite web|title=Company's Annual Report, 2019-20|url=https://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2020/pdf/ITC-Report-and-Accounts-2020.pdf|url-status=live}}</ref>

"ITC Limited" was originally named "Imperial Tobacco Company of India Limited", succeeding [[W.D. & H.O. Wills]] on 24 August 1910 as a British-owned company registered in [[Calcutta]].<ref name="Complete history has submitted">{{cite news |title=ITC Ltd. |url=https://www.business-standard.com/company/itc-301/information/company-history |work=Business Standard India}}</ref><ref name="ITC History from their official site">{{cite web |title=ITC - History and Evolution |url=https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx |website=www.itcportal.com |publisher=ITC}}</ref><ref>{{Cite web|url=https://economictimes.indiatimes.com/itc-ltd/infocompanyhistory/companyid-13554.cms|title=ITC History {{!}} ITC Information – The Economic Times|website=economictimes.indiatimes.com|access-date=26 September 2018}}</ref>{{Better source needed|date=March 2020}} Since the company was largely based on agricultural resource, it ventured into partnerships in 1911 with farmers from the southern part of India to source leaf tobacco.{{Citation needed|date=March 2020

}} Under the company's umbrella, the "Indian Leaf Tobacco Development Company Limited" was formed in Guntur district of Andhra Pradesh in 1912.<ref>{{Cite book|last1=Maat|first1=Harro|url=https://books.google.com/books?id=zlneCgAAQBAJ&q=indian+leaf+tobacco+development+company+1912&pg=PA35|title=Local Subversions of Colonial Cultures: Commodities and Anti-Commodities in Global History|last2=Hazareesingh|first2=Sandip|date=26 January 2016|publisher=Springer|isbn=978-1-137-38110-1|language=en}}</ref> The first cigarette factory of the company was set up in 1913 at Bangalore.{{Citation needed|date=March 2020}}

In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.<ref>{{Cite web|url=https://www.scribd.com/presentation/422985551/Business-Studies-Project-10|title=Business Studies Project 10 {{!}} Companies {{!}} Business|website=Scribd|language=en|access-date=27 March 2020}}</ref> ITC acquired [[Carreras Tobacco Company]]'s factory at Kidderpore in 1935 to further strengthen its presence.{{Citation needed|date=March 2020}} ITC helped to set up indigenous cigarette tissue-paper-making plant in 1946 to significantly reduce the import costs and a factory for printing and packaging was set up at Madras in 1949.{{Citation needed|date=March 2020}} The company acquired the manufacturing business of Tobacco Manufacturers (India) Limited and the complementary lithographic printing business of Printers (India) Limited in 1953.<ref>{{Cite book|url=https://books.google.com/books?id=k25B27pcRIUC&q=itc+limited+acquired+the+manufacturing+business+of+Tobacco+Manufacturers+%28India%29+Limited+and+the+complementary+lithographic+printing+business+of+Printers+%28India%29+Limited+in+1953&pg=PA306|title=Cases in Financial Management|date=1 August 2000|publisher=Tata McGraw-Hill Education|isbn=978-0-07-463805-7|language=en}}</ref>

===Towards Indianisation and business diversification===

The company was converted into a Public Limited Company on 27 October 1954. The first step towards Indianization was taken in the same year with 6% of the Indian shareholding of the company. ITC also became the first Indian company to foray into consumer research during this time. During the 1960s, technology was given more focus on setting up cigarette machinery and filter-rod manufacturing facilities aimed at achieving self-sufficiency in cigarette-making.

Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was crucial in building up the Indian management for the company. As the company's ownership was progressively Indianised, under Haskar's leadership, the name of the company was changed from "Imperial Tobacco Company of India Limited" to "India Tobacco Company Limited" in 1970. ITC also became the first company in India to start from the 1971 Scissor's Cup. Innovative market campaigns and electronic data processing were started in the 1970s.

 

In 1973, ITC set up its integrated research center in Bangalore, aimed at diversification and venturing into newer businesses with research and development. With the unfolding diversification plans, the name of the company was changed to 'I.T.C. Limited' in 1974. The Indian shareholding grew further to 40% during this time. ITC entered into the hospitality sector with hotel business in 1975 with the acquisition renaming of ITC Welcomgroup Hotel Chola in Madras. ITC chose the hospitality sector for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large-scale direct and indirect employment.

 

The shareholding went over 60% in 1976 and more hotels were started by the company in the following years. ITC Sangeet Research Academy was set up at Calcutta in 1977. In 1979, ITC entered the paperboards business by promoting ITC Bhadrachalam Paperboards Limited. J N Sapru took over as the company's chairman in 1983 and the international expansion started with the acquisition of Surya Nepal Private Limited in 1985. The year 1986 saw vigorous moves from the company with the opening of an Indian restaurant  in the city of New York, acquisition and renaming of Vishvarama Hotels to ITC Hotels Limited, setting up of two new ventures – the ITC Classic Finance Limited and ITC Agro Tech Limited under its umbrella. ITC also entered into the edible oils industry with the launch of the Sundrop brand of cooking oils in 1988. Tribeni Tissues Limited was acquired in 1990. K L Chugh assumed the role of chairman in 1991 and ITC Global Holding Private limited was started as an international trading company in Singapore in 1992. In 1994, all the hotels under the company were transferred into the listed subsidiary company ITC Hotels Limited. ITC, through the brand Wills, sponsored the 1996 Cricket World Cup.

 

[[Yogesh Chander Deveshwar|Y.C. Deveshwar]] took over as the company's chairman in 1996 and the corporate governance structure was re-crafted to support the effective management of multiple businesses. ITC exited from edible oils business and financial services; sold the ITC Classic Finance Limited to ICICI Limited and handled the Sundrop business to ConAgra Foods Limited in 1998. In the year 2000, an innovative initiative for farmers called "e-Choupal" was started in Madhya Pradesh 2000. The same year witnessed the launch of ITC's Wills Sport range of casual wear with its first retail outlet in New Delhi and ITC's entry into stationery products and gifting business introducing the 'Expressions' range of greeting cards and Classmate notebooks. A wholly owned information technology subsidiary, ITC Infotech India Limited was also started in 2000 and the ITC Bhadrachalam Paperboards Limited was merged into ITC Limited. The name of the company was changed to "ITC Limited" omitting the dots and adapting the strategy "No stops for ITC" in 2001. An employee stock option scheme was introduced for the first time and a web portal for the company was launched. Subsidiaries for ITC Infotech were set up in the United Kingdom and the USA.

 

== Brand Leadership == {{Citation needed|reason=source to these rankings|date=July 2021}}

 

 

 

 

YiPPee! is No. 2 in Noodles

As per the Annual report of the company, it had 28000+ employees as on 31 March 2020, <ref name=":1">{{Cite web|last=|title=Company Annual report 2019-20|url=https://www.itcportal.com/about-itc/shareholder-value/annual-reports/itc-annual-report-2020/pdf/ITC-Report-and-Accounts-2020.pdf|url-status=live|access-date=27 March 2020|website=uppercrustindia.com}}</ref> It spent Rs. 2,145 crores on Employee benefits during the FY 2012–13. During the same year, its attrition rate was 12%.<ref name=":1" />

ITC's Chairman [[Y C Deveshwar]] (d. 2019) won renowned awards and recognition including [[Padma Bhushan]] from Govt. of India 2005–09, by [[Boston Consulting Group]] and seventh-best-performing CEO in the world by Harvard Business Review.<ref name=":1" /><ref>{{Cite news|last1=Hansen|first1=Morten T.|url=https://hbr.org/2013/01/the-best-performing-ceos-in-the-world|title=The Best-Performing CEOs in the World|date=1 January 2013|work=Harvard Business Review|access-date=27 March 2020|last2=Ibarra|first2=Herminia|issue=January–February 2013|issn=0017-8012|last3=Peyer|first3=Urs}}</ref>

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