BCG Matrix a.k.a. Growth-Share Matrix, Boston Box, Boston Matrix, Boston Consulting Group analysis.

Created by Bruce Henderson for the Boston Consulting Group in 1970 to help corporations with analyzing their business units or product lines.

This helps the company allocate resources and is used as an analytical tool in brand marketing, product management, strategic management, and portfolio analysis.

Formerly Known as Indian Tobacco Company

Formerly Known as Imperial Tobacco Company

FMCG-Cigarettes

Started in 1910 As Company’s Core Business. Market leadership in all segments - geographic & price (70% Market Share).Extensive FMCG distribution network (Direct servicing of 1,00,000 markets & 2 million retail outlet).Cigarettes account for only 15% of tobacco consumed in India unlike world pattern of 85% due to prolonged punitive taxation. Of the 58% of adult Indian males who consume tobacco, barely 15% can afford cigarettes. (Biri : Cigarettes ratio = 10 : 1)Annual per capita adult cigarette consumption in India is appx. one tenth world average which is 141. In 2001 - Lost 15% of Its Business Because of Rise in Excise Duty.In 2007 - VAT Was charged at 12.5% which increased the price of cigarettes by 84ps per cigarette. Hence ITC had to shut down their business of Plains (i.e. Non Filter Cigarettes) which was 20% of total FMCG Cigarette Business.

FMCG-Others

Ashirvad Atta is now #1 selling.Sunfeast Biscuits is ranked #3.Bingo, launched in August 2007, now enjoys 16% market share.November 2007 Mint-o overtakes its competitor Chlormint .‘Classmate’ brand already the most widely distributed stationary brand in India. Kitchens of India has about 48% market share in India and a huge export potential. Ready to Eat food Market is estimated to be Rs.700m.Safety Matches market at Rs. 1250 crores p.a. for 24 billion match boxes which is targeted by ITC’s iKno, Aim, Aim Mega, Aim Metro. Successful acquisition of 94% of WIMCO Ltd. i.e. Homelites, Ship. ‘Mangaldeep’ the only National brand in the country serves the nation’s 900cr incense sticks market.

Hotels

Hotel Brands: ITC-WelcomGroup, WelcomHeritage & Fortune. Totally 90 Hotels, 77 Destinations and 5500 Rooms under management. Destinations include most of India as well as Singapore and Dubai. Hosted a galaxy of world dignitaries like Bill Gates to Bill Clinton, Condoleezza Rice to Benazir Bhutto. Restaurant Brands: Bukhara, Dum Pukht and Dakshin.

Agri Business

ITC Agri Business is one of India’s largest exporter of agricultural commodities. June 2000, eChoupal – strategic and cost effective sourcing support to the Foods business (support creation of verticals in wheat, soya, corn, potato etc.)

eChoupal - Services reaches to 4 million Farmers who are growing Wheat, Rice, Pulses, Soyabean, Coffee in over 40,000 villages thru nearly 6,500 kiosks across nine states.

Diverse range of goods/services : FMCG, consumer durables, agri-inputs. Farmer Financial Services - insurance (focus: weather), credit (focus: Kisan credit card scheme)Rural Retail – 18

Choupal Sagars .

Agenda 2012 is to cover 15 states with 1,00,000 Villages with about 20,000 eChoupal Kiosks servicing about 10 million farmers.

Packaging & Paperboards

Annual paperboard demand – appx. 1.1 million tones. Indian paperboard market growing at 7% p.a. Significant export opportunities for high quality Indian manufacturers. ITC paperboards exports - Rs. 2 billion appx. ITC’s packaging unit - India’s largest converter of paperboard into high quality printed packaging. Provides superior packaging solutions to the cigarettes and new FMCG businesses. India has low per capita usage at around 6 kgs p.a. (World average – over 50 kgs p.a.)

Infotech

ITC Infotech Ltd. Is a wholly owned subsidiary of ITC Ltd. ITC Infotech is responsible for developing & maintaining the entire ITC eChoupal infrastructure. Although a separate entity and brand, ITC Infotech’s primary job is to keep ITC as a group upto date with latest technology.

REVENUES Growth-

Share Matrix

Y/E March (Rs cr) FY2008 FY2007

% Growth

% Contrib.

% Market Share

Growth

Share

FMCG-Cigarettes

13,825.6

12,833.7 7.7 58.41 70% Low High

FMCG-Others 2,511.1 1,689.5 48.6 10.61 16% High Low

Hotels 1,100.2 985.7 11.6 4.6590

Hotels High High

Agri Business 3,868.4 3,501.3 10.5 16.34

2nd Largest Exporte

r High HighPaperboards & Packaging 2,364.3 2,100.1 12.6 9.99

1st in Asia High High

ITC Infotech - - - - - Low Low

MARKET SHARE

Star

• Agri Business• Hotels• Paperboards &

Packaging

Question mark

• FMCG-Foods

Cash Cow

• FMCG-Cigarettes

Dog

• ITC Infotech

G ROWT

H