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100 Years of ITC

BY

Anand kumar Singh & Avinash Kumar Singh

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Journey of ITC

It is formed in 1910 by British and company

was registered in Calcutta with a small office

in Radhabazar lane.

It started with one expatiate manager & one

acquired cigarette manufacturing facility in

Munger (Bihar) .

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Contd..

Today ITC is the leading FMCG marketer in

India .

Clear market leader in the Indian Paperboard& packaging industry.

Second largest hotel chain

Countrys foremost agri business player

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Various Products of ITC

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Financial Highlights:1996-2010(RS in crores) March 31,1996 March31,2010

Gross Income 5188 26863

PAT 261 4061

Return on net assets % 28 41

Net Assets Employed 1886 14957

Net Worth 1121 14064

Market Capitalization 5571 114000

Shareholder Return in the period : 24.3%

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ITC - Business Portfolio

ITC

FMCG:

CIGARETTES

OTHER FMCG

HOTEL

S

AGRI BUSINESS

LEAF TOBACCO

AGRI

COMMODITIES

PAPERBOAR

D

PAPER &

PACKAGING

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ITCs Cigarettes BusinessITCs Cigarettes Business

Market leadership

Powerful brands across segments

Leadership in all segments - geographic & price

Extensive distribution network

Over 900 wholesale dealers serving more than 1 million

retail outlets

World-class state-of-the-art technology and

products

Investment - Rs.10 billion in six years

Exciting long term growth potential

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Cigarettes: Growth potential

Cigarettes account for only 14% of tobacco consumed in Indiaunlike world pattern of 85% due to prolonged punitivetaxation

Cigarettes (14% of tobacco consumption) contribute nearly

85% of Revenue to the Exchequer from tobacco sector 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 isappx. one tenth world average : 141

Future growth depends on relative rates of growth of per

capita income and moderation in taxes

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Source : Based on Cigarette consumption data(2003) from

World Cigarettes,ERC Group plc.

Per C apita Adult Cigarette C onsum ption

(Sticks)

16621753

561488

141

1190

U SA C hina Pakistan N epal Ind ia W orld Avg.

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FMCG Business

4 chosen categories:Staples

Aashirvaad Atta, Salt, Spices

Snack FoodsSunfeast Biscuits

ConfectioneryCandyman, mint-o

Ready to Eat

Kitchens of India, Aashirvaad ReadyMeals, Sunfeast Pasta

Aashirvaad Atta: current market leader amongst national branded

players

Sunfeast Biscuits:Differentiated & innovative products;

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ITCs Hotel Business

Manages 15 full service mid-market properties

under the Fortune Hotels brand

100% subsidiary company : Fortune Park Hotels Ltd.

Also operates 35 properties under theWelcomHeritage brand

Maharaja Heritage Resorts Ltd. 50% JV with Marudhar

Hotels (P) Ltd.

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Luxury hotel roomsLuxury hotel rooms -- East AsiaEast Asia

0

10000

20000

30000

40000

50000

60000

70000

80000

HongKong Singapore India

Source: Compendium of Tourism statistics, WTO

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ITCs Hotel properties

ITC Hotel Maurya Sheraton & Towers,New Delhi

ITC Hotel Grand Maratha Sheraton & Towers,Mumbai ITC Hotel Sonar Bangla Sheraton,Kolkata

ITC Hotel Grand Central,Mumbai

ITC Hotel Windsor Sheraton & Towers,Bangalore

ITC Hotel Kakatiya Sheraton & Towers,Hyderabad (thru a 68% holding in

Srinivasa Resorts Ltd.) ITC Hotel Park Sheraton & Towers ,Chennai (managed property)

WelcomHotel Rajputana Palace Sheraton,Jaipur

WelcomHotel Chola Sheraton, Chennai

WelcomHotel Mughal Sheraton,Agra

WelcomHotel,New Delhi WelcomHotel Rama International , Aurangabad

WelcomHotel Vadodara (thru associate company)

WelcomHotel New Delhi

WelcomHotel Grand Bay,Visakhapatnam (managed property)

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Indian paperboard marketIndian paperboard market

Annual paperboard demand appx. 1 million

tonnes

Fragmented capacity & obsolete technology

Low per capita usage at 0.75 kg - 1/7th globalaverage

Indian paperboard market growing at 7% p.a.

Value Added Coated board - the fastest growing

segment (20% p.a.) in India driven by the growingsophistication of the consumer

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Indian LeafTobacco industryIndian LeafTobacco industry

India - the second largest producer of tobacco

But, Indias share is only 7% in world tobacco trade

ITC - Indias largest buyer, processor, consumer & exporter

of cigarette tobaccos

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e-Chaupals

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Gross Income

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Return on Invested Capital

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Return on capital employed

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One of the 8 Indian Companies to feature in Forbes A-list for2004 Featuring 400 of the Worlds best big companies with M-cap. > USD 5 bln. & are

rated as the most attractive companies for investors

Only Indian FMCG Company to feature in Forbes 2000 List A comprehensive ranking of worlds biggest companies measured by a composite of

sales, profits, assets & market value

Among top in :

Sustained value creation (BT-Stern Stewart survey)

Operating profits

Cash Profits

Ranks No. 8 among Indian listed Companies by marketcap.(@31/03/06) No. 1 in FMCG Sector; 6th amongst Private Sector

Rated as one of Indias Most Respected Companies (IMRB-

Businessworld Survey 2006)

ITCOne ofIndias most valuable corporations

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