Project Report on Itc
Transcript of Project Report on Itc
A PROJECT REPORTON
STUDY OF ITC FMCG PRODUCTS
Submitted in Partial Fulfillment for the awardSubmitted in Partial Fulfillment for the award
OfOf
Bachelor of Business AdministrationBachelor of Business Administration
(Affiliated to CCS University, Meerut)(Affiliated to CCS University, Meerut)
Submitted To:
Miss Abhilasha Vihan
Faculty, BBA
Submitted By:
Mohd. Shanu
9673516
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DECLARATION
I Mohd. Shane hereby declare that the research work presented in this project report entitled “STUDY
OF ITC FMCG PRODUCTS” for fulfillment of the award of Bachelor of Business Administration
from Chodhary Charan Singh University, Meerut is based on my work. The project embodies the result
of original work and studies carried out by me and the contents of the project do not form the bases for
the award of any other degree to me or anybody else.
Date : Mohd. Shane
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ACKNOWLEDGEMENT
.First of all I would like to thank the Management at ITC for giving me the
opportunity to do my one-month project training in their esteemed organization.
I am highly obliged to Mr. D.K SHARMA for granting me to undertake my
training at Meerut branch.
I express my thanks to all Sales Managers under whose able guidance and
direction, I was able to give shape to my training. Their constant review and
excellent suggestions throughout the project are highly commendable.
And I would also like to thanks my teacher all Faculty of BBA for providing their
full support & guidelines under my training period
My heartfelt thanks go to all the executives who helped me gain knowledge about
the actual working and the processes involved in various departments.
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INDEX
Certificates 2
Acknowledgement 3
Executive Summary 5
Industry Profile 6
Company Profile 22
Objective of Study 41
Limitation 42
Scope of Study 43
Research Methodology 48
Data Analysis 52
Findings 60
Conclusion 63
Suggestions 64
Bibliography 67
Appendix 68
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PREFACE
To start a business the success depends upon the research done about the particular & consumer
attitude the product. Marketing research plays a vital role in a business to make it successful. I
tried to put my best effort to complete the task on the basis of skills. I am having this study done
about the flour sales & distribution in the city of different companies. In order to know about the
opportunities in the mareket.Inthe study, an attempt is made to cover every expect of these
objectives to find out solutions for the company.
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COMPANY OVERVIEW
ITC is one of the India`s foremost private sector companies with a market capitazation of nearly US $ 15 billion & a turnover of US
$ 6 billion. Rated among the World`s Leading Companies by Forbes manazine, ITC ranks third
in pre-tax profit among India`s private
Sector corpoiration.ITC has a diversified presence in Cigarettes, Hotels, Paperboard & Specialty
Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting
Cards & other FMCG products. While ITC is an outstanding market leader in its traditional
businesses of Cigarettes, Hotels, Paperboards, Packaging & Agri-Export, it is rapidly gaining
market share even in its nascent businesses of Branded Apparel, Greeting Cards & Packaged
Foods & Confectionery.
As one of India`s most valuable & respected corporations, ITC is widely perceived to be
dedicatedly nation- oriented. Chairman Y C Deveshwar calls this source of inspiration (a
commitment beyond the market).In his own words ;( ITC believes that its aspiration to
create enduring value for the nation provides the motive force to sustain growing
shareholder value. ITC practices this philosophy by not only driving each of its businesses
towards international competitiveness but by also consciously contributing to enhancing
the competitiveness of the larger value chain of which it is a part).
ITC`s diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution reach,
superior brand-building capabilities, effective supply chain management & acknowledged
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services skills in hoteliering. Over time, the strategic forays into new businesses are expected to
grammar a significant share of these emerging high-growth markets in India.
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ITC VISION
Sustain ITC’s position as one of the India’s most Valuable corporations through world
Class performance, creating growing value For the Indian & the company’s
Stake holders.
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ITC MISSION
To enhance the wealth generating capability of Enterprise in a globalizing environment,
delivering Superior & sustainable stake holder value.Over the years, ITC has evolved from a
single Product Company to a multiple business corporation.Its business separated over a wide
spectrum, Ranging from cigarettes & tobacco to hotels Packaging, paper & paperboards &
international.
Commodities trading.
ITC defined Corporate Governance as a systemic Process by which companies are
directed & controlled to
Enhance their wealth generating capacity.
Since large corporation employ wast quantum of a societal Resources, we believe that
the governance process should Ensure that these companies are managed in a manner that
Meets stake holder’s aspirations & societal expectations.
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CORE PRINCIPLES
ITC`s Corporate Governance initiative is based on two core principles. These are
Management must have the executive freedom to drive the enterprise forward without
undue restraints; and
This freedom of management should be exercised with in a framework of effective
accountability
CONTROL
ITC believes that control is a necessary concomitant of its second core principle of governance
that the freedom of management should be exercised within a framework of appropriate checks
and balances. Control should prevent misuse of power, facilitate timely management response to
change, and ensure that business risks are preemptively and effectively managed.
HISTORY AND BACKGROUND
ITC was incorporated on August 24,1910 under the name of Imperial Tobacco Company of
India Limited. Its beginnings were humble. A leased office on RADHA BAZAR Lane,
Kolkata, was the centre of company`s existence. The Company celebrated its 16 birthday on
August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,(now renamed
J.L. Nehru Road) Kolkata, for the sum of Rs 310,000.This decision of the Company was
historic in more ways
Than one. It was to mark the beginning of a long and eventful journey in to India` future. The
Company`s headquarter building,Virgina House, which came up on that plot of land two years
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later,would go on to become one of Kolkata`s most venerated landmarks. The Company`s
ownership progressively indianised, and the name of the Company was changed to I.T.C Limited
in 1974. In recognition of the Company`s multi-businesses portfolio encompassing a wide range
of businesses-Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specailty Papers, Agri-Exports,Food, Lifestyle Retailing and Greeting Gifting & Stationery-the
full stops in the Company`s name were removed effective September 18, 2001. The Company
now stands rechristened ITC Limited.
In 1925 as a strategic backward integration for ITC`s Cigarettes business. It is today India`s
most sophisticated packaging house. In 1975 the Company launched its Hotels business with the
acquisition of a hotel in Chennai which was rechristened ITC-Welcome group hotel
Chola`.The objectives of ITC`S Entry into hotels business was rooted in the concept of creating
value for the nation.ITC chose the hotels business for its potential to earn high levels of foreign
exchange, create tourism infrastructure and generate large scale direct and indirect employment.
Since then ITC`s Hotel`s business has grown to occupy a position of leadership, with 66 owned
and managed properties spread across India.
In 1979, entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited, which today has become the market leader in India. Bhadrachalam
Paperboards amalgamated with the Company effective March 13,2002 and became a Division of
the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged
with the Company`s Tribeni Tissuses Division to from the Paperboards & specialty Papers
Division. ITC`S paperboards` technology, productivity, quality and manufacturing processes are
comparable to the best in the world.
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In 2004 ,ITC acquired the paperboard manufacturing facility of BILT Industrial
PACKAGING Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. This KOVAI Unit allows ITC
to improve customer service with reduced lead time and a wider product range.
On 1985, ITC SET up Surya Tobacco Co. in Nepal as a joint venture with the reputed Soaltee
group. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarettes industry. The merged entity was named the
Tribeni Tissues Division (TTD). To harness strategic and operational synergies TTD was
merged with the Bhadrachalam Paperboards Division to form Paperboards & Specialty Papers
Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the International Business
Division (IBD) for export of agri- commodities. The division is today one of India‘s largest
exporters. ITC’s unique & now widely acknowledged e- Choupal initiative began in 2000 with
Soya farmers in Madhya Pradesh. Now it extends to 6 states covering over 3.1 million farmers.
In 2000, ITC’s Packaging business high quality greeting cards under the brand name
‘Expressions’. Launched a line of In 2002 , the product range was enlarged with the introduction
of the Gift wrappers, Autograph books & Slam books. In the same year, ITC also launched
‘Expressions Matrubhasha’, a vernacular range of greeting cards in eight. Language &
‘Expressions Paper raft’, a range of premium stationery products. In 2003, the company rolled
out ‘Classmates’, arrange of notebooks in the school stationery segment.
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ITC also entered the Lifestyle retailing business with the Wills Sport range of international
quality relaxed. Wear for men & women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) & Wills Clublife evening
wear (2003). ITC also initiated a foray into the popular segment with its men’s wear brand ,
John players, in 2002.
In 2000 . ITC pun off its information technology business into a wholly owned subsidiary , ITC
InfoTech India Limited. To more aggressively pursue emerging opportunities in this area.
ITC made its entry into the braded &packaged Foods business in August 2001 with the launch of
the Kitchens of India brand. A mare broad- based entry has been made since June 2002 with
brand launches in the Confectionery, Staples & Snacks Foods segments. In 2002, the ‘mint-o’
trademark was acquired & relaunched in orange &mint flavors’. In the same year ‘Candy man’
was added to the confectionery range & ‘Aashirvaad’ Atta was rolled out. The ‘Aashirvaad’
brand now extends to ready-to-eat foods, ready-to-cook pastes & salt. In 2003 the ‘Candy man’
range was expanded to include deposited candies & éclairs. In 2003 ‘Sun feast’ biscuits were
launched & ‘mint-o’ lemon mint flavor was introduced. In 2004 the ‘Kitchens of India’ brands
was extended to cooking pastes.
In 2002, ITC’s philosophy of contributing to enhancing the competitiveness of the entire value
chain found yet another expression in Safety Matches initiative. ITC now markets popular safety
matches brands like iKno, Mangle Deep , Vaxlit, Delite & Aim.
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ITC’s foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. ITC’s popular agarbattis brands include
Spriha & Mangle Deep across a range of fragrances like Rose, Jasmine, Sandalwood,
Madhur, Sambrani & Nagchampa.
ITC Registered Office
ITC Limited
Virgina House
37 J.L Nehru Road
Kolkata
Pin Code – 700071
INDIA
An overview of ITC Saharanpur Factory
ITC Saharanpur Factory was established in the year 1926 and is the second oldest among all the
cigarette factories after Merger. It manufactures processed cut tobacco and packed cigarettes. It
has a built up area of 26334 s-m. The facilities include the production block consisting of
primary manufacturing department (PMD) & secondary manufacturing department (SMD) ,leaf
go down ,WMS go down , FG (shipping department) , utilities , service block , administrative
block & gate house .
Tobacco leaves are purchased from farmers through auction by ILTD (leaf tobacco division)
& are sending to different ITD factories depending on their requirement. Tobacco leave is
divided in 2 parts, the lamina (leaf part) & the stem (the midrib separated from lamina by
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threshing). Tobaccos leaves are received in leaf go down & stored till the time they are issued to
PMD for processing.
The PMD process in 2 separated lines the (the lamina & the stem line respectively) which result
in processed cut tobacco which gets stored in Cut Tobacco Store (CTS). From CTS it is issued
to SMD for production of packed cigarettes. The SMD is divided in 2 sections – the maker & the
packer sections. Wrapping materials stores (WMS) materials are supplied from WMS go down
at this state both the maker & the packer for production. WMS materials are all other things
cigarettes packet other than the tobacco the maker is responsible for producing cigarettes sticks
& the packer section produces packed cigarettes These are then sent to the finished goods go
down for temporary storage & eventual shipment from there.
CAREERS WITH ITC
ENTRY LEVEL RECRUITMENT
ITC visits premier Engineering and Management campuses every year to induct quality talent for
its various Businesses.
Manufacturing
ITC inducts talent for the Technical function from the 5 IITs (Chennai, Delhi, Kanpur,
Kharagpur, Powai) and some of the NITs. Engineers from disciplines such as Mechanical,
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Electrical and Electronics, Production Engineering, Chemical and Civil are considered for
placement.
The process starts in August each year with a campus visit and a pre-placement presentation.
This provides an opportunity for young aspirants to learn more about the Company, its history
and achievements, its corporate strategy, details of its various businesses and the kind of careers
they can look forward to.
The selection process is objective and robust. A range of selection
tools are used. These include assessment centres, group tasks and in-
depth personal interviews.
Candidates found suitable for employment are immediately given offers to join ITC in July of
the following year. After a comprehensive induction programme, they are assigned to various
businesses of the Company.
Marketing and Human Resources
ITC sources talent from the premier Management Institutes of the
country for the Marketing and HR functions. These campuses
include the IIMs, ISB, XLRI, FMS, IIFT, TISS, JBIMS and
Symbiosis.
The pre-placement presentation at campuses, normally in September/October each year, provides
an opportunity for young aspirants to know more about the Company, its history and
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achievements, its corporate strategy, details of the various businesses and the kind of careers they
can look forward to.
During these visits, ITC also selects first-year students for Summer Internships during April to
July of the following year.
A team of ITC managers visits campuses once again between December and March for final
placement. The process consists of group discussions and personal interviews preceded by
psychometric tests and assessment centres. Employment offers are made to selected candidates
immediately. On joining ITC in July, candidates undergo an induction programme before being
assigned to one of the Company's businesses.
Trading, Sourcing and Logistics
ITC visits premier institutes such as IIMA, IIFT, IRMA and
MANAGE to induct talent for its Agri Business Division.
Pre-placement presentations at campuses normally take place in
September/October each year. These presentations provide an
opportunity for young aspirants to know more about the Company, its history and achievements,
its corporate strategy, details of its various businesses and the kind of careers they can look
forward to.
During these visits, first-year students are selected for Summer Internships
with ITC in April to July of the following year.A team of ITC managers
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visits these campuses once again between December and March for campus interviews. The
process consists of group discussions and personal interviews preceded by psychometric tests
and assessment centers.
Employment offers are made to selected candidates immediately. On joining ITC in July,
candidates participate in an induction programme. Thereafter they are assigned to responsibilities
in Trading, Sourcing and Logistics in the Agri Business Division.
Finance
ITC recruits entry-level talent for the Finance function from amongst
qualified Chartered Accountants and MBAs specializing in Finance.
Candidates are short-listed for selection from a pool of applicants that
apply to ITC on-line through the Company's portal at www.itcportal.com. Recruitment of entry
level talent in the Finance Function takes place twice a year.
Preliminary interviews are held at selected locations. The
short-listed candidates are called to Kolkata for the final
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selection process which extends over two days. The selection process comprises psychometric
tests, assessment centers, group tasks and personal interviews. The interviewing panel looks for a
strong conceptual base in finance and accounting. Effective inter-personal skills, integrity,
intellectual rigour, a "will do" attitude, creativity, leadership and high energy are other essential
attributes.
Candidates who receive offers of employment undergo a comprehensive induction programme
before being assigned to the Internal Audit function. The tenure in the Internal Audit function
normally extends over a period of 3 years. Following this, they are assigned operational
responsibilities in one of the Company's businesses.
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Manfred Boden (West-Germany) obtains 1980-81 unsolicited computer print-outs from
"spirit" comunicators. Before that he received telephone calls. Until 1983 he has also
unsolicited contacts with communicators of non-human evolution.
Hans Otto Koenig developed new spirit communication technologies from 1982 to 1988,
employing extremely low frequency oscillators, as well as lights in the ultraviolet and
infrared range. In 1983 he appeared on a popular radio program on Europe’s largest radio
station, Radio Luxembourg. The host, Rainer Holbe, had Koenig set up his equipment
under close supervision of the station engineers. One of the engineers asked if a voice
could come through in direct reply to a question, and a voice quickly replied, “We hear
your voice. Otto Koenig makes wireless contact with the dead.” Stunned, Rainer Holbe
addressed the millions of listeners across Europe, “I tell you, dear Listeners of Radio
Luxembourg, and I swear by the life of my children, that nothing has been manipulated.
There are no tricks. It is a voice, and we do not know from where it comes.”
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Formals 3 – Tierd governance structure :
Board of director:
Comprising executive (4) &non executive directors (11) strategic supervision
Corporate management committee:
Comprising executive directors & senior managers strategic management
Divisional Chief executive & divisional management committee:
SHARE HOLDERS
↓
BOD
↓
CORPORATE MANAGEMENT COMMITTEE
↓
(CMC)
↓
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DMV DMC DMC DMC DMC (HOTEL) (PAPER) (TOBACCO) (IT)
(AGGI)
Board of Directors
Chairman
Yogesh Chander Deveshwar
Corporate Management
Committee
Directors
Y C Deveshwar Chairman
A Singh Member
K Vaidyanath Member
K N Grant Member
Executives
N Anand Member
A Nayak Member
T V Ramaswamy Member
S Sivakumar Member
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K S Suresh Member
R Tandon Member
B B Chatterjee Member & Secretary
Executive Vice President & Company Secretary
Biswa Behari Chatterjee
General Counsel
Kannadiputhur Sundararaman Suresh
Investor Service Centre
37 Jawaharlal Nehru Road, Kolkata 700 071, India
Phone: 033-2288 6426/2288 0034
Fax: 033-2288 2358
E-mail: [email protected]
Auditors
Deloitte Haskins & Sells
Chartered Accountants, Kolkata
Board Committees
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Investor Services Committee
A V Girija Kumar Chairman
P B Ramanujam Member
B Sen Member
K Vaidyanath Member
B Vijayaraghavan Member
B B Chatterjee Secretary
Compensation Committee
S H Khan Chairman
A Baijal Member
S B Mathur Member
H G Powell Member
B Sen Member
Nominations Committee
Y C Deveshwar Chairman
A Baijal Member
S Banerjee Member
A V Girija Kumar Member
S H Khan Member
S B Mathur Member
D K Mehrotra Member
P B Ramanujam Member
Sustainability Committee
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Y C Deveshwar Chairman
S Banerjee Member
H G Powell Member
A Ruys Member
B Sen Member
B Vijayaraghavan Member
B B Chatterjee Secretary
Anup Singh
Krishnamoorthy Vaidyanath
Kurush Noshir Grant
Executive Directors
Anil Baijal
Angara Venkata Girija Kumar
Serajul Haq Khan
Sunil Behari Mathur
Dinesh Kumar Mehrotra
Hugo Geoffrey Powell
Pillappakkam Bahukutumbi Ramanujam
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LINES OF BUSINESS
INDIA TOBACCO
FOOD DIVISION
LIFESTYLE RETAILING BUSINESS
PERSONAL CARE PRODUCT STRATEGIC BUSINESS UNIT
EDUCATIONARY & STATIONARY PRODUCT STRATEGIC BUSINESS UNIT
SAFETY MATCHES STRATEGIC BUSINESS UNIT
AGARBATTIS STRATEGIC BUSINESS UNIT
HOTEL DIVISION
PAPER BOARD & SPECIALITY PAPER DIVISION
PACKAGING & PRINTING STRATEGIC BUSINESS UNIT
AGRI BUSINESS DIVISION
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CIGARETTES & TOBACCO
Initially ITC was dealing only in Cigarettes & Tobacco.It's highly popular portfolio of
brands includes Insignia, India Kings, Classic, Gold Flake, Navy Cut, Scissors, Capstan,
Berkeley, Bristol and Flake. ITC's cigarettes are produced in its state-of-the-art factories at
Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of
quality, contemporary technology and work environment.
In pursuit of international competitiveness, ITC has launched four brands – Checkers
Cigarettes, Hi-Val Cigarettes, Royale Classic Cigarettes and Gold Crest Cigarettes –In the
extreme competitive us market recently ITC has launched Royale Classic Cigarettes, gold cut
and scissors filters Kings Cigarettes in the Middle East. The response to these brands has been
encouraging.
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The requirement to print pictorial health warnings on tobacco product packs under the 'Cigarettes
and Other Tobacco Products (Prohibition of Advertisement and Regulation of Trade and
Commerce, Production, Supply and Distribution) Act, 2003' (COTPA) and the consequential
constriction in consumption will jeopardize the livelihood of 35 million people dependent on the
tobacco industry. Restrictive measures of this nature should be preceded by the creation of
alternative sources of income for those so affected.
Packaging & Printing Business-
ITC Packaging & Printing Business was set up in 1925 as a strategic backward integration
for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
Hotels-
In 1975 the Company launched its Hotels business with
the acquisition of a hotel in Chennai which was rechristened
'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was
rooted in the concept of creating value for the nation. ITC chose the hotels business for its
potential to earn high levels of foreign exchange,
create tourism infrastructure and generate large scale
direct and indirect employment. Since then ITC's
Hotels business has grown to occupy a position of leadership, with over 100 owned and managed
properties spread across India.
Competitors:
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ITC had a competition from the Taj group of hotels and some international hotels like Hyatt
hotels, Hilton and le meridian. ITC has its hotels in every major city across India.
The standard of the ITC hotel comes from the fact that the Delhi based Maurya Sheraton is the
only hotel that is proffered by government of India for providing hospitality to their international
guest and delegates.
Future prospects:
With the success in hotel industry the company must move on further,
ITC should open a family restaurant chain or fast food restaurants in the metro cities. This would
definitely be a success. ITC should try to expand further in foreign countries
PACKAGING & PRINTING BUSINESS
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the
Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with
the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division.
ITC's paperboards' technology, productivity, quality and manufacturing processes are
comparable to the best in the world. It has also made an immense contribution to the
development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is
directly involved in education, environmental protection and community development. In 2004,
ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd
(BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer
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service with reduced lead time and a wider product range. In 1990, ITC acquired Tribeni Tissues
Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the
cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness
strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards
Division to form the Paperboards & Specialty Papers Division in November 2002.
The different paperboard brands of ITC are:
Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber
Propac
Solid Bleached Sulphate Boards: Safire Graphik, Art
Maestro, Carte Persona
Poly coated boards: Indobev, Indobarr
Recycled boards: Ecoviron, Fusion
ITC is one of the world's most modern and contemporary manufacturers of packaging and
graphic series of boards. ITC's Paperboards business has a manufacturing capacity of 360,000
tonnes per year and is India's market leader across all carton-consuming segments including
cigarettes, foods, beverages, pharma, personal care & toiletries, durables and match shells.
The business posted steady growth with segment revenues improving by 11% during the
quarter. This was driven by a 14% improvement in volumes of the Value Added Portfolio of
paper and paperboards and robust performance of the packaging business.
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ITC is the largest exporter of coated boards from India. The Company exports nearly 20 per
cent of the coated boards it produces. Its coated boards fulfill exacting customer requirements in
Malaysia, Sri Lanka, Bangladesh, Iran, Australia, UAE, Saudi Arabia, Singapore, U.K., Italy,
Netherlands and China.
The new pulp mill project is nearing completion and is slated for commissioning in the last
quarter of this fiscal. Steady progress is also being made in the completion of the new paper
machine. The pulp mill with a capacity of 120000 tons of hardwood pulp will provide a distinct
cost advantage, apart from removing the dependency on imported hardwood pulp, which has
seen an unprecedented run-up in prices, adversely affecting margins across the industry. The
paper machine will augment capacity by about 100,000 TPA in 2008/09 and will drive growth
based on strong forward linkages with the stationery business.
Agri Business Division-
Also in 1990, leveraging its agri-sourcing competency,
ITC set up the Agri Business Division for export of
agri-commodities. The Division is today one of India's
largest exporters. ITC's unique and now widely
acknowledged e-Choupal initiative began in 2000 with
soya farmers in Madhya Pradesh. Now it extends to 10
states covering over 4 million farmers. ITC's first rural
mall, christened 'Choupal Sager' was inaugurated in
August 2004 at Sehore. On the rural retail front, 24
'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar
Pradesh.
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Farmer empowerment, Choupal Saagar, Choupal Fresh, Choupal Pradarshan Khet Processed
Fruits, Marine Products, Customer Centric Approach.
The e-Choupal model has shown that a large corporation can combine a social mission and an
ambitious commercial venture; that it can play a major role in rationalizing markets and
increasing the efficiency of an agricultural system, and do so in ways that benefit farmers and
rural communities as well as company shareholders.
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ITC's example also shows the key role of information technology - in this case
provided and maintained by a corporation, but used by local farmers - in helping to bring about
transparency, to increase access to information, and to catalyze rural transformation, while
enabling efficiencies and low cost distribution that make the system profitable and sustainable.
Critical factors in the apparent success of the venture are ITC's extensive knowledge of
agriculture, the effort ITC has made to retain many aspects of the existing production system,
including retaining the integral importance of local partners, the company's commitment to
transparency, and the
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respect and fairness with which both farmers and local
partners are treated. The sustainability of the engagement
comes from the idea that neither the corporate nor
social agendas will be subordinated in favor of the other.
Lifestyle Retailing business-
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores
later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife
evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear
brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most
premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from
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buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To
mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to
consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular
segment for the young woman.
COMPETITORS AND SUGGESTIONS:
ITC had proved to be a tuff competitor in this segment too against the established brands like
MONTE CARLO, peter England, Allen Solly and many more. The launch of Miss Players was a
good move by the company as it gives an advantage to the company for introducing a complete
collection especially for women. Only few companies had introduced such exclusive brands. The
company can move on with the introduction of new products like jackets, winter shawls.
Information Technology-
In 2000, ITC spun off its information technology business into a wholly owned subsidiary,
ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area.
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Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services
companies and has
established itself as a key player in offshore outsourcing, providing outsourced IT solutions and
services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking,
Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and
Media & Entertainment
Safety Matches-
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire
value chain found yet another expression in the Safety Matches initiative. ITC now markets
popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
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FOOD-
ITC's foray into the Foods business is an outstanding example of successfully blending
multiple internal competencies to create a new driver of business growth. It began in August
2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002,
ITC entered the confectionery and staples segments with the launch of the brands mint-o and
Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of
Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded
snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a
significant size with over 200 differentiated products under six distinctive brands, with an
enviable distribution reach, a rapidly growing market share and a solid market standing.
.
ITC’S MINTO mouth freshener is emerging as a recognizing brand apart from rival
PREFETTI’S HALLS. A blend of effective distribution, aggressive trade level activity and
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consistent marketing efforts have helped the business to gain a substantial market share in this
segment.
Competitors:
Britannia
Parle
Priyagold
IMPROVEMENTS NEEDED:
The steady growth of the company is satisfactory since it had launched late in the market but the
significant growth in the product is amazing. In my view company should concentrate on the
brands by adding more flavors. for attracting kids company can introduce free gift items like
what lays had done previously when it had introduce tazo’s. During the research it is fund that
some retailers are not getting product due to the reasons like shortage, no approach of salesman
etc so being new in the market we have to firstly satisfy 4P’s to get success.
Agarbattis (incense sticks) –
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include
superia and Mangaldeep across a range of fragrances like
Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
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Nagchampa. The Expressions range of Aromatic candles
comprises Amour - the Romance Series, Adora - the
Decor
Personal Care-
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body
care products for men and women in July 2005. Inizio, the signature range under Essenza Di
Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme)
and women (Inizio Femme). Continuing with its tradition of bringing world class products to
Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos,
Shower Gels and Soaps in September, October and December 2007 respectively. The Company
also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select
markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel
range of shampoos in June 2008.
The 'Fiama Di Wills' range of shampoos and shower gels are now available at all major markets.
The company has recently launched Fiama Di Wills Polishing Drops (conditioner), which is
enriched with Avocado Oil and Burdock extract to make the hair feel smooth and shiny. These
superior products are an outcome of years of R & D based product development. They reflect
ITC's deep consumer insight.
COMPETITORS:
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The company had entered this segment very late; the market is still dominated by GARNIER and
L’OREAL with HINDUSTAN UNILEVER, PROCTOR AND GAMBLE and COLGATE
PALMOLIVE just behind them. It would be a matter of time for ITC to show its presence, since
it had become a name of trust among the people of India.
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CONCLUSION:
As per the company introduction of soap and shampoo’s, it can move on with the introduction of
cosmetics to the Indian market. It need to do more efforts in order to raise the sale of personal
products because products other than superia are not doing well.
Education & Stationery Products –
ITC made its entry into the stationery business in the year 2002 with its premium range of
notebooks, followed in the year 2003 with the more popular range to augment its offering. ITC’s
stationery Brands are marketed as “Classmate” and “Paperkraft”, with Classmate addressing
the needs of students and Paperkraft targeted towards college students and executives.
Classmate Fun N Learn , Classmate Invento , Classmate pens, Paperkraft are the
stationery products of ITC.
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COMPETITORS:
The major competitor of ITC in this field is NAVNEET publication whose notebooks are
very popular among people.
CONTRIBUTION IN THE MARKET:
The Classmate brand alone contributes about Rs 150 crore. Data estimates the market for
school and education sector at Rs 5,000 crore. Classmate lack behind the variety if compared to
Navneet publications. With the introduction of more varieties it can be a market leader.
The GREETING CARD section includes EXPRESSION greeting card which are gaining
huge popularity among the people .The main reasons behind is that they are available I wide
range apart from ARCHIE’S and HALLMARK which are very expensive.
The company can have a growth in this segment because of its quality in its brand and at a
reasonable price. On the other hand hallmark is charging more because of its brand name. The
card can be of wider acceptance if remain in same price range.
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FINANCIAL PERFORMANCE
In total sales of the ITC, FMCG division enjoys maximum share. FMCG is having the maximum
sales and that too in cigrate manufacturing in which company is a national player and oldest in
this manufacturing field.
The company is having negative profits in FMCG-other than cigrate as company has just
entered in this segment ,inspite of this, company is having 83.46% growth in it and loss
company is having in its.
FMCG-other than cigrate is all due to initial investment in sales and administration expenses in
this division.
In agricultural division company net sales has lowered down but the overall profit i.e PBT has
increased by 98.30% which shows the division has been able to maintain its below the line
expenditures i.e selling and administration expenses.
About hotel business, company is having loss in it and all this is because of that terrorist attack
in Mumbai on Taj hotel last year which has shaken the faith of public and also a step reduction in
international travel as a fallout of the global economic crisis has triggered a significant slide in
occupancies and average room rates and the company has to bear a loss in the of month of
September 2009.
In paper and paper boards Business Company is having 12% growth in PBT.
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Ten Years at a Glance
44
S.No
YEARS GROSS INCOME (RS. IN CRORES)
1. 2001 8827.11
2. 2002 9982.46
3. 2003 11194.47
4. 2004 12039.92
5. 2005 13585.39
6. 2006 16510.51
7. 2007 19636.53
8. 2008 21966.84
9. 2009 23678.46
10. 2010 26862.98
AWARDS
ITC`s Cigarettes business has won numerous awards for its quality, environmental management
systems and product excellence.
The Kolkata factory has won the prestigious Genentech Safety Gold Award for the year 2003-
2004 in the manufacturing sector.
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ITC`s cigarette factories in Kolkata, Bangalore and munger have been awarded the OHSAS
18001 Certificate by Det Norske VERITAS (DNV) for their Occupational Health and Safety
Management systems(OHSMS).
ITC has been awarded the Best Manufacturer of Cigarettes and 3 Best Exporter of Tobacco
Products for 2003, by the Tobacco Board of India.
The Saharanpur factory has won the GOLD Award, 2003 on Occupational Safety from The
Royal Society for the Prevention of Accidents (ROSPA).
The Kolkata factory was the first cigrate factory in the world to receive the ISO 14001
accreditation for their environmental management systems.
The Saharanpur and Bangalore factories have also received the ISO 14001 certification.
All cigarette factories have ISO 9002 Quality Certification.
The Kolkata factory has won the Rajiv Gandhi National Quality Award (Best in Eastern
Region) for 1998.
The ITC has also received the prestigious Sword of Honors Award from the British Safety
Council for highest standards of safety.
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Mission Sunehra Kal, ITC’s rural capacity building programme, now active in 11 States,
empowers rural people communities to sustainable changes that make them
economically competitive and socially secure.
In the rural communities where the mission has put down roots there is a new spirit of optimism
and confidence. People have augmented and diversified their livelihoods. Education for children,
employment for women, sanitation and family health have taken on a new urgency. Every family
and every farm has resources to build a better future. Stagnation and deterioration have given
way to change and improvement.
To accomplish this change, ITC targets four problems, which it believes are the fundamental
obstacles to productivity and growth in the farm sector :
1. Loss of productivity through soil erosion caused by intensification of land use and
decline of water tables and forest resources.
2. Dependence on out-moded farm practices and inferior inputs.
3. Loss and disruption of farm incomes and non-availability of alternative livelihoods.
Inadequate access to primary education and healthcare
4. Inadequate access to primary education and healthcare
ITC enables farmers to implement solutions that are sustainable because they are
1. mutually reinforcing,
2. based on knowledge transfer and co-operative application of technology,
3. dependent on mobilisation and optimisation of local resources.
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The delivery model mobilises a four-way partnership between village communities, specialist
NGOs, the Government and ITC, bringing to every initiative the best relevant management and
technical expertise.
ITC has also worked with State Governments in pioneering public-private partnerships. In
Andhra Pradesh, 3,596 hectares of wasteland have been developed so far through a collaboration
with the State Government’s rural poverty reduction project, Indira Kranthi Padham, and its
Comprehensive Land Development programme. ITC has also signed a landmark agreement with
the Government of Rajasthan to bring 5,000 hectares under soil and moisture conservation in the
drought-prone Bhilwara district.
By augmenting water resources and forest cover and fostering organic soil management, ITC
has enhanced farm productivity. It has simultaneously opened up new avenues of non-farm
income and employment to reduce pressure on land.
RESEARCH PROBLEM
TO ANALYSIS THE SALES & DISTRIBUTION OF AASHIRWAD FLOUR IN
DIFFERENT- DIFFERENT PLACES OF SAHARANPUR CITY AND FIND OUT THE
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REASON FOR DECREASE IN IT SALES.AND ALSO FINDS OUT THE DIFFERSENCES
BETWEEN ITS COMPETITORS PRODUCT.
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50
OBJECTIVE OF RESEARCH
TO ANALYSE THE SALES OF AASHIRVAAD IN THE CITY
OF SAHARANPUR.
TO ANALYSE THE DISTRIBUTION OF AASHIRVAAD IN
THE CITY OF SAHARANPUR.
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RESERACH DESIGN
SAMPLE SIZE:
A sample size of100 shopkeeper was taken.
SAMPLE PROCEDURE :
Simple random sampling was done.
DATA COLLECTION INSTRUMENT :
The study is based on analysis and interpretation of a questionnaire which was distributed to
100 shopkeepers. The survey included open and ended questions the information about the
new shopkeeper who are open the shop recently or in few days.
SAMPLE DESIGN
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Data collection (primary & secondnary).
Graphical representation.
Data representation.
Select different-2 market of Saharanpur
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SOURCES OF DATA
Both Primary data and secondary data were collected to meet the objective. Data is taken as
per the requirements of the study.
TO collect the primary data, we went to the different-2 market of Saharanpur city.
In this research we collect the data from 10 markets & about 100 shops for collect primary
data, for collect the secondary data we use ITC website ,news paper ITC report, market
trend,magzine article.
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COLLECTION OF DATA
For collection of primary data we went to the different-2 market of Saharanpur city. For
collection of primary data we prepared a questionnaire to know about the research. In this we
meet the 100 retailers & ask him different-2 question to complete the objective that we have to
done in the research objective.
In collection of primary data we use ITC website, news paper ITC report, market trend,
magazine article & other related information to complete the objective of research.
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ANALYSIS OF DATA
In Saharanpur City there are mainly three brands competing each others. These are Aashirvaad , Shaktibhog & Local mill flour
S.NO COMMODITY WEIGHT (KG.) PRICE (Rs)
1.
Aashirvaad
Flour
10 kg. 190-195 Rs.
2.
Shakti Bhog
Flour
10 kg. 170-175 Rs.
3.
Local Mill
Flour
10 kg. 140-145 Rs.
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SALES ( IN %)
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S.No Area Aashirvaad
Flour
Shakti Bhogh Local Mill Flour
1. Naveen Nagar 20% 30% 50%
2. Chander Nagar 20% 30% 50%
3. Khalashi Line 10% 10% 80%
4. Sugar Mill 15% 10% 75%
5. Court Road 25% 35% 40%
6. Hakikat Nagar 15% 20% 65%
7. Behat Road 5% 5% 90%
8. Sharda Nagar 10% 15% 75%
9. Railway colony 10% 10% 80%
10. Ravi Nagar 10% 15% 75%
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INTERPRETATION
BASED ON THE FINDINGS OF THE SURVEY WE GET THE FOLLOWING RESULTS:
NAVEEN NAGAR
In this area aashirvaad had got all generally all positive review from the shop.
Shakti bhog
Local mill
Aashirvaad
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CHANDER NAGAR
In this area aashirvaad had got also all generally all positive review from the shop.
Shakti bhog
Local mill
Aashirvaad
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KHALASHI LINE
In this area the sale of aashirvaad very lower than its competitor local mill flour.
Shaktibhog
Local mill
Aashirvaad
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SUGAR MILL
In this area position of Aashirvaad better than to Shakti bhog, but not better than local mill flour
Shaktibhog
Local mill
Aashirvaad
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COURT ROAD
In this area there are great competition amongst all three product but local mill flour sales more than others.
ShaktibhogLocal millAashirvaad
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HAKIKAT NAGAR
In this area there are great competition in Shakti bhog & aashirvaad flour.
Shaktibhog
Local mill
Aashirvaad
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BEHAT ROAD
Sales- It is the one of the areas where rural area is nearby due to which here Local mill flour is doing well.
Shaktibhog
Local mill
Aashirvaad
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SHARDA NAGAR
In this area there is great share of local mill flour in this area of Saharanpur.
Shaktibhog
Local mill
Aashirvaad
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RAILWAY COLONY
In this area there is also a great share of local mill flour in Saharanpur market.
Shaktibhog
Local mill
Aashirvaad
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RAVI NAGAR
In this area also a great share of local mill flour in this area of Saharanpur market.
Shaktibhog
Local mill
Aashirvaad
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DISTRIBUTION
S.No AREA Aashirvaad Shakti Bhogh Local Mill Flour
1 NAVEEN NAGAR R.S R.S R.S
2 CHANDER NAGAR R.S R.S R.S
3 KHALASHI LINE O.B O.B R.S
4 SUGAR MILL O.B O.B R.S
5 COURT ROAD R.S R.S R.S
6 HAKIKT NAGAR O.B O.B R.S
7 BEHAT ROAD O.B O.B R.S
8 SHARDA NAGAR O.B O.B R.S
9 RAILWAY COLONY O.B O.B R.S
10 RAVI NAGAR O.B O.B R.S
O.B=ORDER BOOK, R.S=READY STOCK
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FINDINGS
After Conducting the Survey on Sales and Distribution of Aashirvaad Flour in the city of
Saharanpur,
We find that the rate of Aashirvaad Flour is more than its Competitor ( Shakti Bhogh and
Local Mill Flour.
The Retailers said that product is strong, but due to high rate than others its sale is less
than its competitors.
We also find that the packaging of Aashirvaad is better than its competitors.
We also find that the Distribution of ITC Aashirvaad is much better than others.
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CONCLUSION
Conclusion is that, there are 50% people of Saharanpur belong to the middle class family and
also the 30% people of Saharanpur living below than poverty line, so it is impossible to them to
purchase costly product.
If we talk about the flour of the weight of 10 Kg. The rate of local mill flour is between 140 -
145 Rs. To compare with Aashirvaad it is less than about 50 Rs. (Aashirvaad rate is between
190-195 Rs.)
It means that they purchase more 3 Kg. flour in 50 Rs.
If we talk about Shakti Bhogh it is also less than 20 Rs, in comparison to Aashirvaad (Shakti
Bhogh rate is between 170-175 Rs.)
So ITC should work on it, to increase the sales of Aashirvaad in the market of Saharanpur.
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SUMMARY
After going thick on the things, now the time is to make a complete picture. While
making a product SKU (stock keeping unit) of the shop retailers think about the GMROI (Gross
margin return on investment) & they promote the brand which pays them highest. They expect
return in the form of profit margin, company schemes and window displays. Among these
company schemes makes the difference & are the highest sources of motivation after profit
margins. Retailing demands a constant push from the company.
Marketers need to use advertising and brand building strategy to address the discerning
buyers and retail push to in the different buyers. The manufacturer should understand the
consumer behavior. Because retailers can’t help quality and price. It is only up to the
manufacturer to provide the consumer what he wants. I need to stress on it because 77% retailers
said that it is the demand for what we sell.
At the time of research it is found that the profit margins available to the all distributors of
different brands and retailers are same. Retailers are mainly getting profit of 10-12 %. But what
vary are the schemes introduced by the companies for retailers and end consumers.
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SUGGESION
These are the following suggestion.
Company should decrease the rate of aashirvaad.
Company should more work on advertising of aashirvaad.
Company should also work for its distribution.
Company should reduce the awareness of people about itc.
Company should start many scheme & offer to increasing of aashirvaad.
Company should also analysis its competitor’s strategy.
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LIMITATION
Time is short for deep research.
The rate will change in time to time.
The study is limited.
The study is limited to some areas of Saharanpur city.
We have to consider only 10 Kg. weights
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ANNEXURES
(1) Which flour you selling in the present?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
(2) Which brand is delivering you proper service?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
(3) Which factorsdo you considers while purchasing flour?
(a) Quality
(b) Price
(c) Resource
(4) Which brand do you store most?
(a) Shakti bhog
(b) Aashirvaad
(c) Local mill
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(5) When a consumer comes to your shop which brand you gives to him?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(6) Which brand is offering you highest margins?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(7) Which brand distribution in the best?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
(7) which brand packagaging in the best?
(a) Shakti bhog
(b) Aaswhirvaad
(c) Local mill
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(8) Which brand is giving you more instruction about the product?
(a) Aashirvaad
(b) Shakti bhog
(c) Local mill
(9) Have you use aashirvaad?
(a) Yes
(b) No
(10) What is your opinion about aashirvaad?
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BIBLIOGRAPHY
ITC ANNEXURESITC REPORTS MARKETTING MANAGEMENT- P. KOTLERMARKETING RESEARCH-G.C. BERIwww.itcportal.com RESEARCH METHODOLOGY-C.R.KOTHARI
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