Itc Ltd Overview
Established in 1910, ITC is India's largest cigarette manufacturer and seller, diversifying across FMCG (excluding cigarettes), Hotels, Paperboards, Paper and Packaging, and Agri Business segments. Dominating the domestic cigarette market with over 80% market share with brands like Insignia and Classic, the cigarette segment, despite constituting only 40% of ITC's revenues, remarkably contributes 81% towards its PBIT, underscoring its profitability amidst challenges from the illicit cigarette market. Beyond tobacco, ITC has expanded into a variety of FMCG products with brands across food, personal care, stationery, and apparel, supported by its D2C platform operational across 24,000+ pin codes. In the hospitality sector, ITC Hotels, launched in 1975, ranks as the second-largest chain in India with a diverse portfolio under brands like ITC Hotels and Fortune Hotels, continuously expanding its presence. The Agri Business segment positions ITC as a significant agri-product exporter, including being a leading leaf tobacco exporter. In paperboards, paper, and packaging, ITC leads in the value-added segment, emphasising sustainable and recycled materials. FY23 saw a revenue split showing a diversification with FMCG and Agri making significant contributions alongside cigarettes. The recent demerger of its hotels business into ITC Hotels Limited in August 2023, with ITC retaining a 40% share, illustrates its strategic realignment towards focused growth in its diverse operations.