1. ITC: Packaged Food Business Group – 05 20 - Shrikant Jangam 51 - Raman Shinde 61 - Tejashree Sawant 62 - Vipul Bhandari

2. Timeline of ITC ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited In 1974, the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology ITC's Packaging & Printing Business was set up in 1925 In 1975, the Company launched its Hotels business with Welcome group of Hotels

3. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited In 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000 Foray into Food Business in 2001 ITC launched line of premium range of notebooks under brand Paperkraft in 2002 In 2002, ITC also entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour) In 2003, ITC witnessed the introduction of Sunfeast as the Company entered the biscuits segment ITC entered the fast growing branded snacks category with Bingo! in 2007

4. Business Portfolio: ITC ITCFMCG Cigarettes Personal Care Packaged Food Products Hotels Agri Business Paperboard & Packaging

5. ITC Food Business KOI Aashirwa d SunfeastMinto CandymanBingo

6. Tobacco Vs Non-Tobacco Share of Non-Tobacco portfolio crossed the 50 per cent of net turnover mark in 2006-07 (Food & Lifestyle)

7. Question & Answers

8. Why ITC entered packaged food sector Government’s legislation to ban smoking in Public places Ban on sponsoring sporting and cultural events Fall of stocks – ITC Packaged branded foods constitute the major portion of consumption in developed markets Indians spend about $130-$150 billion (INR 5,20,000 to INR 6,00,000 crore) on food annually – ITC’s Market Research Support from its own divisions

9. ITC growth is based on synergising and blending multiple core competencies to create epicentre for growth ITC tapped core competencies in tobacco, hospitality, Agri, IT sector to build and grow other business Tobacco - Used strong distribution network to deliver FMCG products - Blending skills used to create blends for Aashirvad atta - Mfg and process skills used for mfg FMCG products Agriculture business - Help to source raw material for mfg of biscuits - E-choupal help to distribute product in rural areas

10. Hotels - Provide consumer insights into tastes and habits of high end consumers - Analysis of consumer taste by region help them to launch Regional variants of Bingo and aashirvad atta ITC Info tech - Helps to create and maintain the IT backbone of E-choupal initiative, distribution network and design solution program

11. Corporate Diversification Strategy ITC’s Corporate strategy aims at creating multiple drivers of growth using its ◦wide distribution reach, ◦superior brand building capabilities, ◦effective supply chain management and ◦acknowledged service skills in hoteliering ◦quality packaging

12. BCG matrix for ITC group Stars Hotels Paperboards/ Packaging Agri Business Question Mark FMCG - Others Cash Cows FMCG - Cigarettes Dog ITC-Infotech High Relative Market Share Industry Growth Rate Low HighLow

13. SWOT Analysis of Packaged Food Sector Strength Growth of organised retail Improvement in packaging technology Urbanisation Value for money Convenient pricing Focus on Traditional Indian foods Better quality of Food Intense competition Weakness Low penetration in Rural market Infrastructure development Opportunities New product introduction as per change/requirement of consumers Rising disposable income Threat FDI by MNC’s Decrease in no. of Farmers practicing agriculture

14. Most Innovative Brand They have innovated the way product represent in the market. E.g Ashirvad aata got award in packaging Giving variant in the food e.g. Sunfeast Dark fantasy, Sunfeast delishus Leverage on each core competency and get the best out of it

15. Thank You