Top 10 Interesting Facts About ITC

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  • Post last modified:01/11/2021

Sunfeast, Bingo, Classmate, Ashirvaad Atta, Mint-O-Fresh, Fiama, Vivel, Savlon, and many more brands in different sectors. All handled by just one Indian company, ITC.

But how did ITC build such a huge empire?. which you will learn in this article, along with interesting facts about ITC.

Laying down the strong foundation

Initially known as the Imperial tobacco company. ITC was incorporated in 1910, with its first office in Kolkata. Later in 1913, the company launched its state-of-the-art tobacco factory in Banglore. On its 16th birthday, ITC bought land in Kolkata for a new office to mark the beginning of an eventful journey into India’s future.

Today, the office is known as Virginia house, one of Kolkata’s most important landmarks. As of mid-2020, ITC’s tobacco business contributed around 74% to its profit.

ITC: A snapshot

  • 13 businesses in 5 segments.
  • over 120 new product launches in 2020-21.
  • over 100 countries where ITC exports.
  • ITC’s FMCG products are available in 6 million retail outlets.
  • over 900 patents filed.
  • more than 26,000 employees.
  • over 200 manufacturing units.

Excelling without an owner

When you think of reliance, you get a picture of Ambani. If you think of Apple, you get a picture of Steve Jobs. If you think of tata motors, you get a picture of Ratan Tata. But what about ITC?. Well, it’s a professionally managed company with 0% promoter holding.

Venturing into the luxury hospitality business

In 1975, ITC ventured into the hotel business by acquiring a hotel in Chennai, which is now known as my fortune. Today, ITC has set a bar for luxury hotels with four brands namely ITC hotels, Welcomhotel, Fortune hotels, And Welcomheritage. As a part of its international expansion plan, ITC is building a hotel in Colombo, Sri Lanka. Which is expected to start by 2021. As of today, ITC manages more than 100 hotels at 70 destinations.

Brand leadership of ITC

  • Aashirvaad is no.1 in branded Atta.
  • Bingo is no.2 in the bridges segment of snack foods and no.2 overall in snacks and potato chips.
  • Yipee is no.2 in noodles.
  • Sunfeast is no.1 in the cream biscuits segment.
  • Savlon is no.1 in surface disinfectant spray.
  • Classmate is no.1 in notebooks.
  • Fiams if no.2 in liquid bodywash category.
  • Mangaldeep is no.2 in Agarbattis.
  • Engage is no.2 in deodorants.

Ramping up the game in FMCG

Although the cigarette business still brings most of the profits, ITC is rapidly expanding its presence in the FMCG sector. Its FMCG products reach every second household in India. During the financial year 2020, ITC launches 60 new products in the non-cigarette fast-moving consumer goods segment, its sales have also increased by 15% year on year.

Leads in reducing carbon emissions

ITC consistently works towards expanding its positive carbon footprint through energy conservation and renewable sources of energy. In fact, 41% of the total source of ITC’s energy requirement is renewable. What’s more interesting is, ITC is the only company in the world to be 15 years carbon positive, 18 years water positive, and 13 years solid waste recycling positive.

Doing business while being environmentally friendly

A lot of cigarettes and FMCG products need a lot of packaging. FMCG cartons, electrical insulation papers, decorative laminate, writing and printing papers. ITC makes all of it. Even in the stationary market, ITC has about 25% market share under the name Classmate. Which has a consumer spend of over 1500 crore rupees.

But to manufacture these, a lot of wood is required. To overcome the depletion of wood, ITC has developed a farm plantation program. Where it offers saplings to farmers at a nominal fee, along with extensive support and knowledge for efficient planting. The company also provides farmers with a buyback guarantee once the tree matures. However, farmers are free to sell the wood. As of March 2020, it has plantations standing over 8,00,000 acres of land.

made it to the list of top market cap companies in India

With a wide variety of products and services, multiple brands. Making things from biscuits flours, perfumes, scent sticks, matchsticks, to providing services in IT, hospitality, and the giant tobacco business. ITC stands 14th in the list of top companies with a large market capitalization in India. Today, its stock price has grown more than 10 times since its IPO.

Digitizing & empowering the Agri-business

ITC’s Agri-business division is one of India’s largest exporters of agricultural commodities. Helping over 4 million farmers with E-CHOUPAL, by providing them with internet access. This initiative helps in informing and empowering the farmers to improve the quality of agricultural goods. There are 6,100 E-CHOUPALS in operation in 35,000 villages in 10 states. Each installation serves an average of 600 farmers in the surrounding 10 villages, within about a five-kilometer radius.

Small divisons into full-fledged companies

In 2000, ITC’s information technology business division was spun off into a wholly-owned subsidiary ITC infotech limited. Today, it is one of the fastest-growing global IT services company. Providing outsource IT solutions. The company also made it into the list of the world’s top 100 outsourcing companies of 2020. During the last financial year, the company’s consolidated total income grew by 12% year-on-year to rupees 2,268 crores, while net profit doubled to rupees 209 crores.

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