All about ITC Limited

All about ITC Limited

ITC Limited is an Indian conglomerate company headquartered in Kolkata, West Bengal, India. It operates in multiple business sectors such as Fast-Moving Consumer Goods (FMCG), Hotels. Agri-business, Paperboards, and Packaging, Information Technology, and other businesses.

Some of its popular brands include Aashirvaad, Sunfeast, Bingo!, Fiama, and Classmate. ITC is also committed to sustainability and has implemented various initiatives to reduce its carbon footprint. And promote sustainable practices in its operations.

ITC Limited was incorporated in 1910 and started as a tobacco company. Over the years, it has diversified into multiple business sectors and has become one of the largest Indian conglomerates.

ITC – The Brand Story

In the FMCG sector, ITC is a major player in the Indian market with a wide range of products such as food. Personal care, education and stationery products. It also has a strong presence in the hospitality sector with its chain of luxury hotels. Also including the ITC Maurya in New Delhi and the ITC Grand Chola in Chennai.

ITC has also made significant investments in agriculture. And has a large network of e-Choupal digital kiosks that connect farmers with buyers and provide them with information. And services to enhance their productivity and livelihoods.

The company is also known for its innovative and sustainable practices. Also including the use of renewable energy sources, water conservation, and waste reduction initiatives. In 2020, ITC was ranked as the world’s third-largest company in the food, beverage. And tobacco sector in the Dow Jones Sustainability Index.

ITC has a strong corporate social responsibility (CSR) program and is committed to creating sustainable livelihoods. And improving the quality of life of people in the communities where it operates.

What is the full form of ITC?

The full form of ITC is “Imperial Tobacco Company“. However, in 1970, the company changed its name to ITC Limited to reflect its diversification into other business sectors.

Is ITC owned by Tata?

No, ITC Limited is not owned by Tata Group. It is a standalone Indian conglomerate company that is publicly listed on the Bombay Stock Exchange (BSE). And the National Stock Exchange of India (NSE). The company’s largest shareholder is British American Tobacco (BAT), which currently holds around 29% of the company’s equity. The rest of the shares are held by various institutional and individual investors. Although there is no direct ownership connection between ITC and Tata Group. And the two companies have collaborated in the past for certain business ventures.

Who is main owner of ITC?

ITC Limited does not have a single majority owner. The company is publicly listed on the Bombay Stock Exchange (BSE). And also the National Stock Exchange of India (NSE). And also its shares are held by a diverse group of institutional and individual investors. As of September 2021, the largest shareholder in ITC is British American Tobacco (BAT). And which holds around 29% of the company’s equity. Other significant shareholders in the company include domestic and foreign institutional investors, mutual funds, and individual shareholders.

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What are the 13 businesses of ITC?

ITC Limited operates in various business sectors. As of September 2021, the company has 13 different businesses, which are:

  1. FMCG – Fast-Moving Consumer Goods
  2. Hotels
  3. Paperboards, Paper & Packaging
  4. Agri Business
  5. Information Technology
  6. Safety Matches and Agarbattis
  7. Lifestyle Retailing
  8. Education and Stationery Products
  9. Personal Care Products
  10. Incense Sticks (Agarbattis)
  11. Safety Matches
  12. Cigarettes and Tobacco Products
  13. Printing and Packaging Solutions

These businesses are operated through various subsidiaries and divisions of ITC Limited. The company has diversified into multiple business sectors over the years, making it one of the largest Indian conglomerates.

Is ITC a debt free company?

No, ITC Limited is not a debt-free company. As of September 2021, the company had long-term borrowings of approximately INR 3,870 crores (around USD 523 million). And short-term borrowings of around INR 635 crores (around USD 86 million). ITC has been following a prudent financial management policy. And its debt-to-equity ratio is relatively low compared to its peers in the industry. However, the company has been taking on debt to fund its capital expenditures and business growth initiatives. It’s worth noting that while ITC is not a debt-free company. And it has a strong balance sheet and generates healthy cash flows. Also which allows it to service its debt obligations comfortably.

What is the weakness of I T C?

Like any other company, ITC Limited has some weaknesses and challenges that it faces. Some of the weaknesses of ITC include:

  • Dependence on the tobacco business: Despite its efforts to diversify into other businesses. ITC’s tobacco business still accounts for a significant portion of its revenue and profits. This dependence on the tobacco business makes the company vulnerable to regulatory changes. And consumer trends that may impact the demand for tobacco products.
  • Limited international presence: While ITC is a well-established brand in India, its international presence is relatively limited. The company faces stiff competition from established global players in its core businesses. And such as FMCG and hospitality, and has been expanding its international operations slowly.
  • Cyclical nature of some of its businesses: Some of ITC’s businesses, such as agri-business. And paperboards, are cyclical in nature and are vulnerable to fluctuations in commodity prices and demand cycles. This can impact the company’s financial performance in the short term.
  • Regulatory challenges: The company operates in sectors that are heavily regulated, such as tobacco, hospitality, and agriculture. Changes in government policies and regulations can impact the company’s operations and profitability.

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Impact of the COVID-19 pandemic: The COVID-19 pandemic has had a significant impact on ITC’s businesses. And particularly in the hospitality sector, which has been hit hard by the travel restrictions and lockdowns. Although the company has taken various measures to mitigate the impact. And the pandemic has affected its financial performance in the short term.

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How many times I T C gives dividend in a year?

ITC Limited typically gives dividends to its shareholders twice a year. The company follows a bi-annual dividend payment schedule. And also announces its interim and final dividends after the end of the first half and full financial year, respectively. The dates for dividend payment and record are usually announced in advance. And shareholders holding shares on the record date are eligible to receive the dividend. The amount and frequency of dividends may vary from year to year. Also based on the company’s financial performance and other factors.

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Why I T C share is not growing?

There can be several reasons why the share price of ITC Limited is not growing or may be underperforming. Some of the factors that could impact the share price include:

  • Weak financial performance: If the company’s financial performance is weak or does not meet the market’s expectations. It could lead to a lack of investor interest and a decline in the share price.
  • Dependence on the tobacco business: As mentioned earlier, ITC is heavily dependent on its tobacco busines. And which is subject to regulatory risks and changing consumer preferences. This dependence on a single business can impact the share price. And especially if there are negative developments in the tobacco industry.
  • High levels of competition: The company operates in several competitive sectors, such as FMCG, hospitality. And retail, where it faces stiff competition from well-established players. The high level of competition can limit the company’s growth prospects and impact the share price.
  • Market sentiments: Share prices are also influenced by market sentiments and macroeconomic factors. Such as interest rates, inflation, and geopolitical developments. Any negative news or uncertainty in these areas could impact the share price of ITC.

It’s worth noting that share prices can be impacted by a multitude of factors. And it’s important to conduct thorough research and analysis before making any investment decisions.

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Chairman and MD of I T C Limited

Sanjiv Puri is the Chairman and Managing Director (MD) of ITC Limited. He also took over as the MD of the company in February 2017. And was appointed as the Chairman in May 2018 after the passing away of the Company’s previous Chairman, Mr. Y.C. Deveshwar. Sanjiv Puri has been Associated with ITC for over three decades. And also has held various Leadership positions in the company, including Chief Operating Officer and Director on the Board. Under his Leadership, ITC has been Focusing on Accelerating the growth of its Non-Cigarette FMCG Businesses. And Digital Transformation, and Sustainability Initiatives.

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Management of I T C Limited

ITC Limited is managed by a professional management team headed by the Chairman and Managing Director, Sanjiv Puri. The management team includes senior executives who are responsible for various business divisions and functions.

Some of the key members of ITC’s management team include:

  • B. Sumant – President, FMCG Businesses: Responsible for the Company’s Non-Cigarette FMCG Businesses, including foods, personal care, education, and Stationary.
  • Rajiv Tandon – Executive Director, Finance: Responsible for the Company’s financial management and Strategic planning.
  • Anil Menon – President, Human Resources: Responsible for the Company’s human resources management and development.
  • Nakul Anand – Executive Director, Hospitality and Travel: Responsible for the Company’s Hospitality and travel Businesses, including hotels, resorts, and Airlines.
  • S. Sivakumar – Group Head, Agri and IT Businesses: Responsible for the Company’s Agri-Business and information technology Bbusinesses.
  • Hemant Malik – Divisional Chief Executive, Foods: Responsible for the Company’s food division, which includes products such as Aashirvaad atta, Bingo! snacks, Sunfeast Biscuits, and Yippee! noodles.

The management team is also responsible for Implementing the Company’s Strategic plans. And also Ensuring the growth and Profitability of its various Businesses.

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