I.T.C. Limited(ITC).
The principal activities of the Group are manufacturing of cigarettes & tobaccos; hotel and resort operations; manufacturing and development of papers and packaging. Apart from that the Group is into Lifestyle retailing business and into the export of Indian agri-commodities.
The Group has operations all over India. The brands of the Group include India Kings, Wills, Gold Flake, Checkers, Hi-Val, Wills Sport, and Expressions.
Cigarettes accounted for 80% of fiscal 2002 gross revenues; agri products, 10%; paper, 7%; hotels, 3%; and other, 7%.
ITC, an affiliate of BAT has a dominating 66%volume share and 76% value-share in the Indian cigarette market. Cigarette and tobacco forms the bread and butter business of the company accounting for 90% of turnover. Besides that ITC also has interests in hotels, packaging and paper businesses.
The cigarette and tobacco players face increasing protests from anti-tobacco and health organizations. Globally as well as in India, the anti-smoking lobbying has been gaining ground. The cigarette industry faces immense pressure with declining volumes and increasing government regulations and taxation.
Profitability of most players has been affected. Players like ITC with a strong brand equity and pricing power have been able to maintain margins through price increases. The industry has received some relief in the form of excise exemption for manufacturing in North Eastern states, and most companies have commenced manufacture in the region to avail of the excise exemption.
ITC has recently also ventured into a number of new businesses, which will leverage on its existing strong brand equity. The company has forayed into retailing business with opening up of its apparel retail shops in Delhi. It plans to invest Rs2.5bn in these new ventures.
It also plans to enter into retail processed food business through its hotel chains. The company is also looking at a likely entry into the greeting cards business. It has also invested heavily in hotel project, which are expected to be completed by the end of this year.
In Q1 FY01, the company sales grew by 11%yoy to Rs21.4bn, although in volume terms cigarette sales grew marginally by 2%. Value growth has come due to upgradation of product mix towards a premium portfolio and price hikes undertaken after the current year's budget.
Operating profit margin has improved by 250 basis points to 18.5% and net profit increased by 25% yoy to Rs2.4bn in Q1.
The principal activities of the Group are manufacturing of cigarettes & tobaccos; hotel and resort operations; manufacturing and development of papers and packaging. Apart from that the Group is into Lifestyle retailing business and into the export of Indian agri-commodities.
The Group has operations all over India. The brands of the Group include India Kings, Wills, Gold Flake, Checkers, Hi-Val, Wills Sport, and Expressions.
Cigarettes accounted for 80% of fiscal 2002 gross revenues; agri products, 10%; paper, 7%; hotels, 3%; and other, 7%.
ITC, an affiliate of BAT has a dominating 66%volume share and 76% value-share in the Indian cigarette market. Cigarette and tobacco forms the bread and butter business of the company accounting for 90% of turnover. Besides that ITC also has interests in hotels, packaging and paper businesses.
The cigarette and tobacco players face increasing protests from anti-tobacco and health organizations. Globally as well as in India, the anti-smoking lobbying has been gaining ground. The cigarette industry faces immense pressure with declining volumes and increasing government regulations and taxation.
Profitability of most players has been affected. Players like ITC with a strong brand equity and pricing power have been able to maintain margins through price increases. The industry has received some relief in the form of excise exemption for manufacturing in North Eastern states, and most companies have commenced manufacture in the region to avail of the excise exemption.
ITC has recently also ventured into a number of new businesses, which will leverage on its existing strong brand equity. The company has forayed into retailing business with opening up of its apparel retail shops in Delhi. It plans to invest Rs2.5bn in these new ventures.
It also plans to enter into retail processed food business through its hotel chains. The company is also looking at a likely entry into the greeting cards business. It has also invested heavily in hotel project, which are expected to be completed by the end of this year.
In Q1 FY01, the company sales grew by 11%yoy to Rs21.4bn, although in volume terms cigarette sales grew marginally by 2%. Value growth has come due to upgradation of product mix towards a premium portfolio and price hikes undertaken after the current year's budget.
Operating profit margin has improved by 250 basis points to 18.5% and net profit increased by 25% yoy to Rs2.4bn in Q1.