Last Updated on October 23, 2023 by BFSLTeam BFSLTeam
ITC conglomerate holds a prominent position in India’s corporate landscape. With a history spanning over a century, it has consistently been at the forefront of change and innovation. It began in 1910 as the Imperial Tobacco Company of India, focusing mainly on tobacco products. But as years passed, ITC decided to try new areas. Now, it’s not just about tobacco. They have made a mark on the daily goods you use, hotels you stay in, paper products, farming goods, and more. Although it’s still known for its tobacco business, ITC is also praised for its efforts to help the environment and the community. This blog will take you through the world of ITC, showcasing its growth and importance in India.
Table of Content
- 1 About ITC
- 2 Overview of ITC
- 3 ITC Timeline
- 3.1 1910: Foundation and Early Years
- 3.2 1974: A New Name, A New Identity
- 3.3 1925: Packaging & Printing Integration
- 3.4 1975: Entry into the Hospitality Sector
- 3.5 1979: Pioneering in Paperboards
- 3.6 1985: Global Expansion to Nepal
- 3.7 1990: Strengthening Agri Business
- 3.8 2000: Venturing into Retail Fashion and Global IT Services
- 3.9 2001: Diversification into FMCG
- 3.10 2002: Stationery and Safety Matches
- 3.11 2003: Agarbattis & Incense Sticks
- 3.12 2005: Personal Care Products
- 3.13 2007: Revolutionising the Snacks Market
- 3.14 2020: Adding Spice with Sunrise Foods
- 4 Major Subsidiaries of ITC
- 5 Major Acquisitions by ITC
- 6 Products and Brands under ITC
- 7 Conclusion
About ITC
Aspect | Details |
Industry Type | Diversified conglomerate |
Year Founded | 1910 |
Headquarters | Kolkata, West Bengal |
Key People | Sanjiv Puri (Chairman & MD) |
Countries Present | Operating in over 100 countries |
Market Cap | ₹5.66 trillion |
Total Employees | 23,725 (March 2023) |
Also Read: ITC Limited- Q2 Results
Overview of ITC
What began as a tobacco company has evolved into a conglomerate with a diversified portfolio, spanning multiple industries. The company’s remarkable journey is a testament to its ability to adapt and grow in response to changing market dynamics, making it a prominent player in sectors such as FMCG, agri-business, hotels, and more. This transformation from its tobacco origins to a diversified business giant showcases ITC’s resilience and commitment to innovation and excellence.
ITC Timeline
Let’s take a walk through the corridors of history to understand the pivotal moments in ITC’s journey:
1910: Foundation and Early Years
ITC was founded by Babu Keshav Dev Malaviya as the Imperial Tobacco Company of India Limited. It initially focused on tobacco products, catering to the growing demand in the Indian market.
1974: A New Name, A New Identity
In 1974, the company underwent a significant transformation, changing its name to I.T.C. Limited. This change marked a departure from its colonial associations and a step towards becoming a truly Indian conglomerate.
1925: Packaging & Printing Integration
In 1925, ITC initiated its Packaging & Printing Business as a strategic move to support its Cigarettes division. Today, it ranks as India’s leading packaging facility.
1975: Entry into the Hospitality Sector
In a strategic move, ITC entered the hotel industry with the opening of its first hotel, Chola Sheraton in Chennai. This marked the company’s foray into luxury hospitality.
1979: Pioneering in Paperboards
ITC ventured into the Paperboards industry in 1979, contributing to quality standards and the economic development of the Bhadrachalam region.
1985: Global Expansion to Nepal
In 1985, ITC expanded internationally, establishing Surya Nepal Private Limited, a significant step beyond Indian borders.
1990: Strengthening Agri Business
1990 saw the formation of the Agri Business Division, leveraging agri-sourcing competency and transforming the lives of farmers.
2000: Venturing into Retail Fashion and Global IT Services
The year 2000 saw the company’s entry into the lifestyle retailing sector with the launch of Wills Lifestyle stores. This move allowed ITC to cater to the fashion-conscious Indian consumer. ITC Infotech, the IT services subsidiary, expanded its global presence, providing cutting-edge IT solutions to clients around the world.
2001: Diversification into FMCG
In 2001, ITC diversified into the FMCG sector with its brand Aashirvaad. This marked the beginning of a new era for the company as it expanded its consumer goods portfolio.
2002: Stationery and Safety Matches
ITC entered the stationery market with Paperkraft and Classmate in 2002. The same year, it began marketing Safety Matches.
2003: Agarbattis & Incense Sticks
2003 marked the start of marketing Agarbattis (incense sticks), including popular brands like Mangaldeep.
2005: Personal Care Products
ITC entered Personal Care Products in 2005, introducing brands like ‘Essenza Di Wills,’ ‘Fiama,’ ‘Vivel,’ and ‘Superia.’
2007: Revolutionising the Snacks Market
In 2007, ITC introduced the Bingo! brand, revolutionising the Indian snacks market with innovative flavours and products that quickly gained popularity.
2020: Adding Spice with Sunrise Foods
ITC acquired spices maker Sunrise Foods, enhancing its product offerings.
Also Read: HUL
Major Subsidiaries of ITC
ITC’s vast empire extends to numerous subsidiaries, each contributing to its diversified business portfolio. Here’s a list of some major ones:
1. ITC Hotels
Known for luxury and sustainable practices, ITC Hotels boasts a wide network across India, offering world-class hospitality services.
2. ITC Infotech
This subsidiary is dedicated to providing cutting-edge IT services and solutions to clients globally, contributing to India’s growing IT industry.
3. ITC Agri Business
Focused on transforming agriculture through the e-choupal network, it connects farmers with markets, promoting sustainable agricultural practices.
4. ITC Paperboards & Specialty Papers Division
Producing high-quality paperboards and packaging materials, catering to both domestic and international markets.
5. ITC Lifestyle Retailing Business Division
Responsible for brands like Wills Lifestyle and John Players, it caters to the fashion needs of Indian consumers.
6. ITC Foods
Under this banner, ITC produces a wide range of food products, including Aashirvaad, Sunfeast, and Bingo!, addressing the diverse tastes of Indian consumers.
7. Mangaldeep Agarbattis
A popular brand synonymous with spirituality and tradition, offering a wide range of incense sticks.
Also Read: INFOSYS
Major Acquisitions by ITC
ITC has strategically expanded its reach through acquisitions. Here are some noteworthy acquisitions:
1. Bhadrachalam Paperboards Limited (2002)
This acquisition strengthened ITC’s position in the paperboard and packaging industry, allowing it to offer high-quality packaging solutions to a wide range of industries.
2. B Natural(2014)
ITC entered the packaged fruit beverages market with the acquisition of the B Natural brand
3. Technico Agri Sciences Limited (2016)
This acquisition played a crucial role in the development of ITC’s agri-business segment, enabling the company to provide better support to farmers and improve the quality of agri-products.
4. Savlon (2015)
The acquisition of the Savlon brand helped ITC enter the hygiene and healthcare sector. Savlon’s trusted products added a new dimension to ITC’s FMCG portfolio.
5. Charmis (2017)
ITC acquired the Charmis cream brand from Colgate-Palmolive, strengthening its position in the skincare segment.
6. Sunrise Foods (2020)
The acquisition of Sunrise Foods further enhanced ITC’s presence in the spices and instant noodle market, catering to the evolving tastes of Indian consumers.
Products and Brands under ITC
ITC’s diverse product portfolio caters to a wide range of consumer needs. Here are some of the major products and brands under ITC:
1. Aashirvaad
Aashirvaad is a trusted brand offering a range of atta (flour) and food products, known for their quality and purity.
Notable Products: Aashirvaad Atta, Aashirvaad Spices, Aashirvaad Svasti Ghee.
2. Sunfeast
Sunfeast is known for its delectable biscuits and snacks, offering a variety of flavours to suit different tastes.
Notable Products: Sunfeast Marie, Sunfeast Dark Fantasy, Sunfeast Yippee! Noodles.
3. Bingo!
Bingo! revolutionised the snacks market with its innovative flavours and snacks, becoming a favourite among consumers.
Notable Products: Bingo! Potato Chips, Bingo! Tedhe Medhe, Bingo! Mad Angles.
4. Fiama Di Wills
Fiama Di Wills offers a range of personal care products known for their quality and effectiveness.
Notable Products: Fiama Di Wills Soap, Fiama Di Wills Shower Gel, Fiama Di Wills Shampoo.
5. ITC Hotels
ITC Hotels provides luxury hospitality services, known for its world-class amenities and sustainability initiatives.
Notable Brands: ITC Grand Chola, ITC Maurya, ITC Gardenia.
6. Mangaldeep Agarbattis
Mangaldeep is a trusted name in incense sticks, offering a variety of fragrances for spiritual and traditional purposes.
Notable Products: Mangaldeep Rajnigandha, Mangaldeep Temple, Mangaldeep Aromatic Sticks.
7. Classmate
Classmate offers stationery products for students, helping them excel in their academic pursuits.
Notable Products: Classmate Notebooks, Pens, Pencils.
Conclusion
In the ever-evolving world of Indian business, ITC has not only stood the test of time but has also thrived and diversified, transcending its tobacco origins. From its humble beginnings in 1910 as the Imperial Tobacco Company of India Limited to its present-day status as a conglomerate with a global footprint, ITC continues to be a catalyst for India’s economic growth and societal development.
With a commitment to sustainability, innovation, and social responsibility, ITC is not just a business giant but a responsible corporate citizen. It has pioneered initiatives like e-choupal, transformed the FMCG sector, and set standards in luxury hospitality. As India marches forward, ITC remains a beacon of progress and prosperity, symbolising the nation’s potential and resilience. As you’ve journeyed through the history and diverse portfolio of ITC, remember that its story is still being written, promising more milestones and contributions to India’s growth in the years to come.