Introduction
The storied company ITC Limited has carved a strong presence across fields of FMCG, hotels, paperboards, agri-business, and IT. This multipronged group hangover from the cigarette manufacturing days of yore. So, the story of ITC is not merely a story of business success; it is about transformation, diversification, and a strategic vision.
In this blog, we will shed light on the story of ITC Limited, its important milestones, and how it has remained a household name.
The Beginning: British Legacy (1910 to 1947)
Initially incorporated in the year 1910 as Imperial Tobacco Company of India Limited, ITC was originally a subsidiary of the British American Tobacco Company (BAT). The company commenced business in Kolkata, with the explicit objective of manufacturing tobacco products. For many decades, tobacco was the core area of business, with ITC eventually invading near-monopoly powers over the whole cigarette segment in India.
Key Milestones:
1970s: The company diversified into hotels opening ITC Hotels. Thus, it created new avenues for revenue generation while placing the brand in a premium position.
Rebranding and New Identity (1974)
The change of name from Imperial Tobacco Company of India Limited to ITC Limited in 1974 was formal recognition of the company’s growth outlook and desire for diversification.
This was indeed a watershed moment in the story of the company. ITC was no more a tobacco company; it was set to become a multi-business concern.
Strategic Diversification (1980s-2000s)
Over the next two decades, ITC entered multiple sectors:
- FMCG (Fast Moving Consumer Goods):
The FMCG division of ITC gave birth to brands like Aashirvaad, Sunfeast, Bingo!, Yippee!, Fiama, Vivel, and Engage.
- Agri-Business:
ITC became a major agri-exports player, launching the revolutionary e-Choupal platform, which empowered farmers with real-time market information and better pricing.
- Paperboards & Packaging:
Keeping sustainability at the core, ITC has developed a credible standing in the domain of eco-friendly paperboards and packaging solutions.
- Information Technology:
The launching of ITC Infotech opened the company’s doors to global IT services, catering to Fortune 500 customers.
FMCG: The Game Changer
ITC’s greatest transformation occurred with its aggressive investment in FMCG, changing from a company with no presence to big enough that its FMCG brands are now part of every Indian household, generating over ₹20,000 crores in sales annually.
Some blockbuster brands:
- Aashirvaad Atta – Market leader in packaged wheat flour.
- Sunfeast – A favorite biscuit brand.
- Bingo! – A strong competitor in the snack market.
- Yippee! Noodles – Popular among kids and adults alike.
- Savlon & Fiama – Well-known personal care brands.
Sustainability and Social Impact
ITC has always been on the top of the ESG rankings. The company is:
- Carbon Positive for more than 18 years
- Water Positive for more than 21 years
- Solid Waste Recycling Positive for more than 16 years
Through Mission Sunehra Kal, Women Empowerment, and Primary Education programs, ITC has quite an impact on social issues.
Financial Performance and Investor Confidence
ITC is among the highest dividend-paying companies in the country despite being a conglomerate. Its debt-free balance sheet, consistent cash flows, and strong return ratios make it a favourite for long-term investors.
In view of its recent sighting of the demerger of the hotel business and a view to digital transformation, more confidence has been injected into the future of ITC.
Conclusion: A True Indian Success Story
The story of ITC is a telling tale of transformation, diversification, and innovation. From a British-owned tobacco company to a proudly Indian multinational with presence across numerous sectors, ITC stands as a living example of the evolution of a name over time.
As a consumer, an investor, or a business enthusiast, one can learn a thing or two from the foresight and execution that ITC has shown.