Acknowledgement

We would like to thank Prof. Mr. P A Johnson , who gave us an opportunity to work on this topic. Under his guidance we were able to work to the best of our ability and knowledge. Without his support we wouldnt have got such a wonderful experience Because of this project we got in-depth knowledge about the subject by working on various aspects of Financial Ratios (formation of project plan).

Thank You

Index Topic

Sr. No.

Page no.

1.

History and Evolution & ITC profile

6-7

2.

Board of Directors

3.

FMCG products

4.

ITC way

10

5.

Vision

11

6.

Mission

12

7.

PE ratio

13

8.

Earning per share

14

10.

Net Revenue

15

11.

Debt equity ratio

16

12.

Return on capital employeed

17

13.

Current ratio

18

15.

Future Scenario of ITC

22-24

16.

e-Choupal

25-27

GROUP MEMBERS
Vikrant Bhagwat Viplav Jadhav Vivek Shah Vishal Shelar Vrajesh Thakkar 12157 12158 12159 12160 12161

History and Evolution

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then toI.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Fast Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and Information Technology the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.

The ITC Profile

ITC is one of India's foremost private sector companies with a market capitalisation of US $ 35 billion and a turnover of US $ 7 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine and among India's Most Valuable Companies by Business Today. ITC ranks among India's '10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in FMCG, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, and Information Technology. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for

the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. The ITC group's contribution to foreign exchange earnings over the last ten years amounted to nearly US$ 4.9 billion, of which agri exports constituted 56%. The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC group directly employs 29,000 people and the Company's Businesses and their value-chains generate over 5 million sustainable livelihoods. The Company continuously endeavours to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 4,08,000 shareholders, fulfil the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the Nation. For the Shareholder."

CHAIRMAN
Y C Deveshwar

EXECUTIVE
Nakul Anand

DIRECTORS
K N Grant

P V Dhobale

NON-EXECUTIVE
A Baijal

DIRECTORS
AV Girija Kumar

S Banerjee

S H Khan

S B Mathur

D K Mehrotra

H G Powell

P B Ramanujam

S S H Rehman

Anthony Ruys

Basudeb Sen

M Shankar

K Vaidyanath

B Vijayaraghavan

FMCG PRODUCTS OF ITC

ITC WAY
ITC is a board-managed professional company, committed enduring value for the shareholder and for the nation. It organisational culture rooted in its core values of respect for belief in empowerment. Its philosophy of all-round value backed by strong corporate governance policies and systems. ITCs corporate strategies are :

to creating has a rich people and creation is

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITCs various businesses. Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.

Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance

vision
Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for the Indian economy and the Company's shareholders.

Mission To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value

PE RATIO
35 30 28.13 28.79

25
20 15 10 5

25.1 21.54

24.78

P.E. Ratio

0
2008 2009 2010 2011 2012

EARNING PER SHARE

8

7.88 6.45 4.11

6 4.29
4

5.31

2
0 2008 2009 2010

Earning per share

2011

2012

NET REVENUE

DEBT EQUITY RATIO

0.02
0.02

0.015

0.01
0.01

0.01

0.01

0.005

0 2008 2009 2010 2011

RETURN ON CAPITAL EMPLOYED

50
45 40 35 30 25 20 15 38.25 35.11 40.89

46.13

49.04

Return on capital employed

10 5 0
2008 2009 2010 2011 2012

CURRENT RATIO
1.6
1.4 1.2 1.36 1.42 1.08 0.92 Current ratio 1.08

1
0.8 0.6

0.4
0.2 0

2008

2009

2010

2011

2012

DIVIDEND PER SHARE

10 9 8 7

6 5 4 3 2 1 0 2008 2009 2010 2011 2012

3.5 3.7 4.45 4.5 10 Dividend per share

MARKET SHARE(TOBACCO)
ITCS tobacco business contributes to 40% of its revenue and 80% of profits ,this cash generating business Has helped enabled it to take ambitious ,but expensive bets in new segments and deliver Modest profit.

FUTURE SCENARIO OF ITC

FUTURE SCENARIO OF ITC

ITC is one of the India's foremost FMCG private sector companies with a market capitalization of over US $ 35 billion and a turnover of US $ 7 billion.

ITC Ltd plans to invest Rs 25,000 crore over five-seven years in more than 40 projects, across hotels, logistics and the FMCG space.
The company is planning an investment of around Rs. 500 crore in West Bengal to set up a foods factory and a logistic hub.

Future scenario of ITC

The company segment revenues of ITC's new businesses were growing at a faster, touching a Rs. 5,000 crore turnover in a short time. This is expected to triple in the next five to seven years. During the quarter, the robust growth of Net Profit is increased by 20.22% to Rs. 16021.40 million. The company is planning to expand its Agarbatti procurement network under its Mangaldeep brand in Andhra Pradesh, Uttar Pradesh and Madhya Pradesh.

e-Choupal
The e-Choupal model has been specifically designed to tackle the challenges posed by the unique features of Indian agriculture, characterised by fragmented farms, weak infrastructure and the involvement of numerous intermediaries, among others. e-Choupal also unshackles the potential of Indian farmer who has been trapped in a vicious cycle of low risk taking ability ,low investment , low productivity , weak market orientation , low value addition , low margin . This made ITC and Indian agribusiness sector globally uncompetitive, despite rich & abundant natural resources.

 ITC has invested rs.1000cr in echoupal.

This initiative, which has covered over 70,000 hectares, has a multiplier impact and reaches out to over 1.
6 million farmers.

Awards won by ITC for e-Choupal United Nations Industrial Development Organisation (UNIDO) Award at the international conference on Sharing Innovative Agribusiness Solutions 2008 at Cairo . The Stockholm Challenge 2006. The Corporate Social Responsibility Award 2004 from The Energy and Resources Institute(TERI) And many more.....

THANK YOU