ITC Limited explained

ITC Limited
Logo Alt:ITC Logo
Former Name:Imperial Tobacco Company of India Limited (1910–1970)
India Tobacco Company Limited (1970–1974)
I.T.C. Limited (1974–2001)
ITC Limited (2001–present)
Type:Public
Isin:INE154A01025
Industry:Conglomerate[1]
Predecessor:W.D. & H.O. Wills
Foundation:[2]
Location City:Virginia House, Chowringhee Road, Kolkata
Location Country:India
Key People:Sanjiv Puri
[3]
Revenue: (2024)
Operating Income: (2024)
Net Income: (2024)
Assets: (2024)
Equity: (2024)
Num Employees:33,824 (2023)
Divisions:ITC Hotels
ITC Paperboards and Specialty Papers Division
ITC Infotech
Sunrise Foods
Footnotes:[4] [5] [6] [7]

ITC Limited is an Indian conglomerate company, headquartered in Kolkata.[8] It has a presence across six business segments, namely FMCG, hotels, agribusiness, information technology, paper products, and packaging.[9] It generates a plurality of its revenue from tobacco products.[10]

In terms of market capitalization, ITC is the second-largest FMCG company in India and the third-largest tobacco company in the world.[11] [12] [13] It employs 36,500 people at more than 60 locations across India.[14] Its products are available in 6 million retail outlets in India and exported to 90 countries.[15] [4]

History

Tobacco Business and Early Years

"Origin" was originally named "Imperial Tobacco Company of India Limited", succeeding Imperial Brands and W.D. & H.O. Wills on 24 August 1910 as a British-owned company registered in Kolkata.[16] [17] Since the company was primarily based on agricultural resources, it ventured into partnerships in 1911 with farmers from the southern part of India to source leaf tobacco.[18] Under the company's umbrella, the "Indian Leaf Tobacco Development Company Limited" was formed in Guntur district of Andhra Pradesh in 1912.[19] The first cigarette factory of the company was set up in 1913 in Bangalore.

In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.[20] ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to further strengthen its presence. ITC helped set up an indigenous cigarette tissue-paper-making plant in 1946 to reduce import costs significantly. Then, a factory for printing and packaging was set up in Madras in 1949. The company acquired the manufacturing business of Tobacco Manufacturers (India) Limited and the complementary lithographic printing business of Printers (India) Limited in 1953.[21]

Name

Established in 1910 as the Imperial Tobacco Company of India Limited, the company was renamed as the India Tobacco Company Limited in 1970 and later to I.T.C. Limited in 1974. In 2001 the company was renamed ITC Limited, where "ITC" is no longer an acronym.[22] [23]

Shareholding and listings

ITC's equity shares are listed on Bombay Stock Exchange (BSE), National Stock Exchange of India (NSE) and Calcutta Stock Exchange (CSE).[24] The company's Global Depository Receipts (GDRs) are listed on the Luxembourg Stock Exchange. ITC is a constituent of two major stock market indices of India: BSE SENSEX and NIFTY 50 of NSE.[25]

In July 2023, ITC Ltd.'s board of directors approved in principle the demerger of its hotel business and the formation of a wholly owned subsidiary called ITC Hotels.[26] [27]

As of March 2024, British American Tobacco is the largest shareholder in the company with a 25.5% stake, followed by Life Insurance Corporation of India which holds 15.2%.[28]

Employees

As per the Annual report of the company, it had 28000+ employees as on 31 March 2020.[29] It spent 2,145 crores on Employee benefits during the FY 2012–13. During the same year, its attrition rate was 12%.

ITC's Chairman Yogesh Chander Deveshwar (d. 2019) won renowned awards and recognition including Padma Bhushan from Govt. of India 2005–09 and the seventh-best-performing CEO in the world by Harvard Business Review.[30]

Meera Shankar, Indian ambassador to the USA between 2009 and 2011, joined the board of ITC Limited in 2012 as the first woman director in its history.[31] She is an additional non-executive director of the company.[32]

Sanjiv Puri is the Chairman & Managing Director of ITC Limited. Puri was appointed as a Wholetime Director on the Board of ITC with effect from 6 December 2015, Chief Executive Officer in February 2017 and re-designated as the Managing Director in May 2018. He was appointed as the Chairman effective 13 May 2019.[33] Sanjiv Puri has also assumed office as the president of the Confederation of Indian Industry (CII) for 2024-25.[34]

See also

Further reading

External links

Notes and References

  1. Web site: ITC – History and Evolution . 2022-09-25 . www.itcportal.com . 18 May 2023 . https://web.archive.org/web/20230518144024/https://www.itcportal.com/about-itc/huy.aspx . dead .
  2. Web site: ITC - History and Evolution . 2022-09-25 . www.itcportal.com.
  3. Web site: ITC Leadership – Rishita Das, Chairman & Managing Director . 2022-09-25 . www.itcportal.com.
  4. Web site: Company Profile. Reuters. 16 November 2021. ITC Limited is a holding company, which is engaged in the marketing of fast moving consumer goods (FMGC)..
  5. News: Company History – ITC Ltd. . Economic Times . 15 September 2013.
  6. Web site: History and Evolution . ITC Limited . 14 September 2013.
  7. Web site: The ITC Network: Registered Office . ITC Ltd. . 14 June 2014.
  8. Web site: ITC – History and Evolution. www.itcportal.com. 25 September 2018.
  9. Web site: ITC Businesses . 2022-09-25 . www.itcportal.com.
  10. News: JC . Anand . Ajwani . Deepak . How ITC succeeded in pivoting from its traditional tobacco business to FMCG under Sanjiv Puri . 10 May 2024 . The Economic Times . 11 December 2023.
  11. Web site: Top 100 stocks by Market Capitalization BSE Listed stocks Market Capitalization . 2022-12-19 . www.bseindia.com.
  12. News: ITC briefly beats HUL to become most valued FMCG company amid hotel business demerger buzz . 10 May 2024 . Zee Business . 21 July 2023.
  13. News: Podishetti . Akash . ITC is world's 3rd most valuable tobacco company after London-based BAT sinks . 10 May 2024 . The Economic Times . 10 December 2023.
  14. Web site: 2023-04-21 . ITC Stocks Accomplished Strong Record, 11th Indian Firm with Over 5 Trillion Market Capitalisation . 2023-12-28 . Jagranjosh.com . en.
  15. Web site: Company's Annual Report 2019–20.
  16. News: ITC Ltd. . Business Standard India.
  17. Web site: ITC History ITC Information – The Economic Times. economictimes.indiatimes.com. 26 September 2018.
  18. News: Suman . Subhash Kumar . 27 June 2022 . ITC History: कहानी कंपनी की: 110 साल पुराना ITC का इतिहास, बनाती हैं आपके लिए ये चीजें . Aaj Tak News . Hindi.
  19. Book: Maat. Harro. Local Subversions of Colonial Cultures: Commodities and Anti-Commodities in Global History. Hazareesingh. Sandip. 26 January 2016. Springer. 978-1-137-38110-1. en.
  20. Web site: Business Studies Project 10 Companies Business. Scribd. en. 27 March 2020.
  21. Book: Cases in Financial Management. 1 August 2000. Tata McGraw-Hill Education. 978-0-07-463805-7. en.
  22. Citations:
  23. News: Himatsingka. Rakhi Mazumdar & Anuradha. ITC: Leading Multi-business conglomerate turns 100. The Economic Times. 2021-12-27.
  24. News: ITC share price jumps 4% despite missing Q4 profit estimate; here's why investors are buying stock . The Financial Express . 29 June 2020.
    News: Listing Information – ITC . Economic Times . 15 September 2013.
    Web site: ITC Institutional Ownership – ITC LTD. Stock . fintel.io . en.
  25. News: Aparna Deb . Sensex rises 114 points; Nifty settles above 9,100 mark; ITC rallies 7% . 25 May 2020 . www.timesnownews.com . 20 May 2020 . en.
  26. Web site: The ITC board of directors approves the demerger of the hotel company in principle; the stock drops more than 4% . Bru Times News . en.
  27. Web site: Agarwal . Nikhil . ITC board approves demerger of hotels business, share price drops 4% . The Economic Times . 24 July 2023.
  28. News: BAT's reduction of stake in ITC: Here's how it can impact the Indian FMCG giant . 10 May 2024 . Business Today . 1 April 2024 . en.
  29. Web site: Company Annual report 2019–20. 27 March 2020. itcportal.com.
  30. News: Hansen. Morten T.. The Best-Performing CEOs in the World. 1 January 2013. Harvard Business Review. 27 March 2020. Ibarra. Herminia. January–February 2013. 0017-8012. Peyer. Urs.
  31. News: Writankar . Mukherjee . ITC inducts Meera Shankar in its board as the first women ever . 4 August 2012 . 15 September 2013. The Times Of India.
  32. News: Mukherjee . Writankar . ITC inducts Meera Shankar in its board as the first women ever . 25 May 2020 . The Economic Times . 4 August 2012.
  33. Web site: ITC Leadership - Sanjiv Puri, Chairman & Managing Director . www.itcportal.com.
  34. Web site: Service . Express News . 2024-05-20 . ITC's Sanjiv Puri takes over as CII president . The New Indian Express . en.

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