By: Pallavi Hajela 13020241098 Parva Soni 13020241099 Prajakta Kadu 13020241101 Prithvi Burgula 13020241102 Priya Pednekar 13020241103 Priyadarshini Permey 13020241104 Puravkumar Patel 13020241105 Rahul Halder 13020241106

ITC Limited

Revenue Increase INR 45,102 Crores

Founded- 1910Headquarter- KolkataRevenue- INR 45,102 Crores (12-13)Portfolio:• Food Products• Personal Care• Cigarettes• Apparel• Stationery• Hospitality• Agricultural Products• Information Technology

Revenue Increase INR 45,102 Crores

Gold-Flake WillsKings ClassicLights Navy CutPremium lights BristolPremium Flakes ScissorsFlake Liberty Silk Cut

Benson & Hedges

Maj

or C

igar

ette

Bra

nds

Maj

or I

TC B

rand

s

PackagingCigarette

Pack“Tukda” Carton

Sr # Cigarette Variant Qty. per tukda Qty. per pack1 Goldflake (Lights and Kings) 20 102 Wills NavyCut 20 103 Flake 50 104 Wills Classic (All variants) 10 205 B & H 10 20

A single carton contains 10,000 cigarettes

RetailerThe retailers are mostly• Small temporary

stores locally called “tapri”

• Small permanent store

• Grocery stores • Bars & Restaurants

Mr. ShekharOpposite D-Hostel ,

Symbiosis , Hinjewadi

• He sells almost all brands of ITC

• He gets fresh stock almost every day

• He buys a pack for Rs 138 and sell it for Rs 150

• Very less demand for small cigarettes in and around MIDC

• We also contacted a small retailer from Delhi. • He buys a pack of Wills Classic at Rs. 138 and sells the same Rs. 150 thus earning a

margin of Rs. 12 per pack. • He buys a tukda of any variant of GoldFlake (20 packs) at Rs. 1054.

Bill of A Retailer

WholesalerSantosh stores and Prakash stores , Hinjewadi

• The wholesaler buys from the distributor and sells the cigarettes to the small retailers.

• He earns a margin on each tukda sold and not on individual packs.

• The wholesaler keeps a regular stock of worth Rs. 2 lakh per week.

Sr # Cigarette VariantMargin Earned per tukda (Rs.)

1 Flake 14

2Goldflake (Lights and Kings) 12

3Wills Classic (All variants) 10

4 Wills NavyCut 8

• We also contacted a wholesaler from Delhi who sold cigarettes to the small retailer mentioned in the previous slide.

• He earns a margin of Rs. 16 per tukda of Goldflake he sells.

Prakash Stores

The “Scooter-wala”• Once the distributor receives the

cigarettes, he appoints certain agents to deliver it directly to the small retailers.

• Each agent is allotted a particular area.

• This agent daily travels to the allotted area on a bike with a red box containing cigarettes tied to it and sells the same to the retailers.

• For the agent, it is purely a business based incentive pay

• We managed to contact the agent who travels in the Hinjewadi area – Mr Ram Baros.

• He said that he receives 0.8% of the total sales he manages.

• He also mentioned that he sells cigarettes worth Rs.100000 daily. So he earns around Rs. 800 per day.

• Other than that he gets Rs. 3000/- per month as fuel charges.

• This amount has remained constant for the last 5 years.

Distributer

We contacted the following distributor from the Pimpri Chinchwad market :

Bombay Traders Kalewadi Phata

Pimple Saudagar stocking unit.

The distributor refused to divulge the information of the profits earned by him,

he helped us in understanding the

distribution network of ITC Cigarettes.

Mon

thly

Tar

gets

Arrival of Goods From Factory

Red

Boxe

s fo

r Age

nts

Factories

ITC has cigarette manufacturing units at the following locations:1. Kolkata (Kidderpore) , West Bengal2. Saharanpur, Uttar Pradesh3. Bengaluru, Karnataka4. Hyderabad, Andhra Pradesh5. Ranjangaon, Maharashtra

Cigarette manufactured in Ranjangaon Cigarette manufactured in Bengaluru & Hyderabad

Margin Earned At Each Level

Distribution Level Pack Tukda Carton

Distributer-- -

WholesalerRs 136.50 Rs 1365 Rs 68250

Retailer Rs 138.00 Rs 1380 -

Customer Rs. 150 - -

Distribution NetworkD

istr

ibut

ers

Fig: Distribution Network for ITC cigarettes to Hinjewadi

ConclusionDuring the 20 minutes presentation, around Rs 5555 worth

Cigarettes have been sold at Hinjewadi!!!!!

Considering the fact that cigarettes worth 2 lakhs are sold every day at Hinjewadi. We assume the business takes place for eighteen hours every day

• Nearly 5 million people are involved in the commercial operation pertaining to tobacco• Nearly 12 lakh people are involved in the cultivation of tobacco in• Tobacco’s share in India’s is around 1.8 per cent

Acknowledgement• Field study and research in and around Hinjewadi,

Pune.• http://www.livemint.com/Politics/2A6ThZPOTEdYqxQf

SvEcWK/82161-mn-Indian-smokers-will-die-every-year8217.html

• http://content.time.com/time/health/article/0,8599,1711154,00.html

• http://www.itcportal.com/businesses/index.aspx• http://www.itcportal.com/businesses/fmcg/cigarettes.

aspx

Smoking is Injurious To HealthIt causes Cancer