ITC, originally known as the Indian Tobacco Company, has surpassed its tobacco-centric origins to become a multifaceted entity. Its expansive portfolio encompasses diverse sectors, including Fast Moving Consumer Goods (FMCG), Hotels, Paperboards and Packaging, Agri-Business, and Information Technology. This transformation over the course of a century showcases the fascinating journey of ITC Group, illustrating its resilience and adaptability in the ever-changing business landscape. Today, we will look at the in-depth history of ITC Group and its evolution into one of the biggest industry players.
Must Know Information About ITC Company
| Aspect | Details |
| Year of founding | 1910 as the Imperial Tobacco Company of India Limited |
| Gross Revenue (31.03.2023) | ₹69,481 crores |
| Net Profit (31.03.2023) | ₹18,753.31 crores |
| Diversified Presence | FMCG, Hotels, Packaging, Paperboards & Specialty Papers, Agri-Business |
| Export Presence | Products exported to 90 countries |
| Annual Revenue (FY 2023) | ₹702.45 billion |
| Chairman | Sanjiv Puri (Took over from Y.C. Deveshwar in 2019) |
| Market Capitalization (15.11.2023) | ₹544,417.77 crore (US$68.5 billion) |
| Global Presence | Operations in 90 countries |
| Vision | Create enduring value for the nation and shareholders through leadership in each business. |
Sanjiv Puri’s Net Worth
According to a report, his total remuneration for the financial year 2022-23 amounted to Rs 16.31 crore (US$2.1 million), covering elements such as salary, performance bonus, perquisites, and retirement benefits. It’s worth noting that this figure excludes any considerations related to his shareholdings and portfolio in ITC and other companies, which could contribute to his overall net worth.
ITC Company History
India Tobacco Company Limited (ITC company full form)- ITC Limited is a prominent Indian conglomerate.
Let us walk you through the amazing ITC History of ITC Group:
ITC Group works in areas like FMCG, hotels, packaging, wallpapers, specialty papers, and agribusiness. ITC Group started in 1910 as the Imperial Tobacco Company of India Limited, and back then, they mainly sold tobacco stuff like cigarettes, cigars, and pipe tobacco. But as time passed, they changed and became one of India’s most successful FMCG companies.
In 1975, ITC started working in hotels by opening their first one, the Chola Sheraton, in Chennai. ITC Hotels runs fancy and well-acknowledged lavish hotels in important Indian cities under various brands, such as ITC Hotels, Welcomhotel by ITC Hotels, Fortune Hotels, and WelcomHeritage. These brands cater to different segments of customers, ranging from luxury to budget, and offer different experiences, such as heritage, wellness, and adventure.
The history of ITC Company is pretty interesting and covers a lot of ground.
During the 1980s, ITC got into making paper and packaging and set up a factory in Bhadrachalam, Andhra Pradesh. At the same time, they also started working in agri-business, which means they sell things like rice, wheat, and spices to other countries.
In the 1990s, ITC Group went through a big change when their now ex-chairman, J. N. Sapru, retired. Yogesh Chander Deveshwar took over as the new chairman in 1996 and turned ITC into ITC Group, a big mix of different businesses, with a focus on doing things in a way that keeps the environment healthy.
In the early 2000s, ITC started selling stuff in the FMCG sector. They launched their main brand, “Classmate,” with things like notebooks and pens. They also began selling food under the name “Kitchens of India,” which included ready-to-eat meals, spices, and even condiments.
ITC History Timeline
1910: The Imperial Tobacco Company of India Ltd. was set up, and ITC began as a Private Limited Company on August 24.
1953: The company acquired Tobacco Manufacturers (India) Ltd.’s production division.
1954: On October 27, the company became a Public Limited Company.
1970: In May, the name changed from Imperial Tobacco Co. of India Ltd. to India Tobacco Co. Ltd.
1972: ITC entered the hospitality industry.
1973: Government approval for three processing plants was granted.
1974: On April 1, the name changed to ITC Ltd without any acronyms.
1975: Acquired the net assets of India Leaf Tobacco Development Co. Ltd. in India.
1979: The company rebranded its hotel chain from “Welcome Hotels” to “Welcomgroup.”
1983: A joint venture with Gujarat Industrial Investment Corporation formed a new company, Gujarat Hotels, and Welcomegroup Vadodara, a 144-room hotel, was built.
1986: Joint venture with MP Audyogik Vikas Nigam to build four hotels in the next five years.
1987: Introduced Wills Flake Premium Filter and Scissors Filter; Nedovs Hotel in Kashmir leased.
1988: Introduced oilseed varieties under the trade names “ADARSH” and “SUNDROP.”
1990: Market debut of refined mustard oil under the “REAL GOLD” trademark.
1993: ITC successfully launched Hero and Classic Milds brand Cigarettes.
1995: Redesigned Gold Flake Kings and Berkley Filter; introduced capstan Menthol filter, capstan standard, and Bristo standard. Kingsize Gold Flake Lights released in test markets.
1996: Introduced Classic Ultra Milds and Wills Natural Lights.
1997: A contract between ICICI Ltd. & ITC Classic Finance Ltd. was signed.
1998: ITC had close to 105 subsidiaries engaged in various businesses.
2000: The packaging and Printing Section established the Lifestyle Retailing Business Division. Introduced Wills Sport, a line of luxury apparel for men and women.
2003: Introduced Spriha brand of natural incense sticks (Agarbathis) and launched salt under the “Aashirvaad” brand.
2008: Introduced Eco-friendly “Paperkraft Luxury Business Paper.”
2010: Prospered in the Rs. 1,700 crore fairness cream industry.
2011: ITC Ltd.’s CEO- Mr. Y. C. Deveshwar, was honoured with the Padma Bhushan. Introduced popular products like Classmate notebooks and John Players.
2012: Introduced ITC’s top personal care brand’s distinctive Skin Nourishing Range of Soaps, called Vivel.
2014: Replaced TCS as the most admired business in India. Entered the e-cigarette industry. Made one of the biggest international investments in Colombo’s history through ITC Hotels.
2017: Took steps to contribute to Swachh Bharat.
2022: As of March 31, ITC Limited India was ranked as one of the most profitable FMCG businesses in India, with gross sales of 90,104 crores and recorded a net profit of 15,058 crores.
ITC Group Businesses
ITC Group is involved in several sectors, each contributing to its growth and recognition as one of India’s leading private sector companies:
| Business | Brands |
| FMCG | Aashirvaad, Sunfeast, Bingo, Kitchens of India, B Natural, Fabelle, Sunbean, ITC Master Chef, Farmland, Fiama, Vivel, Savlon, Engage, Dermafique, Nimyle, Classmate, Paperkraft, Wills Navy Cut |
| Hotels | ITC Hotels, Welcomhotel, Fortune Hotels, WelcomHeritage |
| Paperboards and Packaging | ITC Paperboards, ITC Packaging, ITC Printing |
| Agri-Business | Wheat, Rice, Pulses, Spices, Coffee, Soya, Marine Products |
| Information Technology | ITC Infotech |
ITC Limited Subsidiaries
All these subsidiaries have their own special focus and skills, but they all work under ITC Limited. By doing different types of businesses, ITC Group has made a strong and sustainable model that can handle changes in the economy. Their focus on innovation and sustainability helps them stay competitive in the business world.
1. Russell Credit Limited:
- A 100% subsidiary of ITC Limited.
- An investment company focusing on strategic areas like FMCG, Hotels, Paper, Paperboards and Packaging, Agri Business, and Information Technology.
- The wholly owned subsidiary, Greenacre Holdings Limited, is engaged in property infrastructure maintenance.
2. ITC Investments & Holdings Limited:
- A 100% subsidiary of ITC Limited.
- An investment company holding shares in various ITC group companies and providing financial services to ITC and its subsidiaries.
3. Landbase India Limited:
- A subsidiary of ITC Limited with a 68% stake.
- Owns and operates the Classic Golf & Country Club, the first South Asian signature championship course designed by Jack Nicklaus.
- Owns ITC Grand Bharat and the Laburnum in Gurgaon.
4. ITC Infotech India Limited:
- A 100% subsidiary of ITC Limited.
- A rapidly growing global IT and IT-enabled services company.
- Provides outsourced IT solutions and services across various industries.
- Wholly owned subsidiaries in the UK as well as the USA.
5. Surya Nepal Private Limited:
- An Indo-Nepal-UK joint venture, 60% owned by ITC Limited.
- Among the largest private sector enterprises in Nepal, involved in Cigarettes, Safety Matches, and Readymade Garments.
- Operates the ‘Surya Social Service’ program focusing on education, health, environment, and women empowerment.
6. Srinivasa Resorts Limited:
- A subsidiary of ITC Limited with a 68% stake.
- Owner of ITC Kakatiya, a luxury hotel in Hyderabad with numerous awards for excellence.
7. Fortune Park Hotels Limited:
- A subsidiary of ITC Limited with a 74% stake.
- A professional hotel management company catering to the mid-priced market segment.
- Operates under the brand name Fortune Hotels, with 47 operating hotels across India.
8. Bay Islands Hotels Limited:
- A subsidiary of ITC Limited with a 51% stake.
- Manages hotels and resorts in the Andaman and Nicobar Islands.
- Owns Fortune Resort Bay Island in Port Blair, operated by Fortune Park Hotels Limited.
9. WELCOMHOTELS LANKA (PRIVATE) LIMITED:
- A wholly owned subsidiary of ITC Limited in Sri Lanka.
- Incorporated to construct, build, and operate a mixed-use development project, including a luxury hotel in Colombo.
- Leased prime sea-facing land in Colombo from the Board of Investment of Sri Lanka.
10. Technico Pty Limited:
- A 100% subsidiary of ITC Limited.
- Owns TECHNITUBER® technology, a tissue culture technique for high-quality, disease-free, and affordable seed potatoes.
- Commercialization through wholly-owned subsidiaries in Australia, China, and Canada.
11. Gold Flake Corporation Limited:
- A 100% subsidiary of ITC Limited.
- Engaged in the manufacturing and sale of cigarettes and tobacco products in India.
- Exports cigarettes to various countries in Asia, Africa, and Europe.
12. ITC Essentra Limited:
- A 50:50 joint venture between ITC Limited and Essentra plc, UK.
- Manufactures and sells speciality paperboard and packaging solutions for the tobacco industry in India and overseas markets.
Conclusion
The ITC Group of Companies has come a long way since it started as a tobacco company in 1910. Over time, they expanded into many different industries. Now, they are one of the biggest companies in India. The ITC Group focuses on new ideas, taking care of the environment, and doing good things for society.
FAQs! ITC History
ITC, established in 1910 as the Imperial Tobacco Company of India Limited, diversified into various sectors like FMCG, hotels, and paperboards, evolving into one of India’s leading private sector companies.
ITC doesn’t have a single owner; it’s collectively owned by shareholders. British American Tobacco Plc holds the largest individual stake at 29.4%.
Visionary leaders such as Sir Joseph Nall, A J Harvard, K L Chugh, Y C Deveshwar, and current Chairman Sanjiv Puri contributed to the development and transformation of ITC.
ITC is not owned by a specific group but has diverse ownership. Major stakeholders include British American Tobacco Plc, LIC, and Tobacco Manufacturers (India) Limited.
ITC houses a diverse portfolio of brands such as Aashirvaad, Sunfeast, Bingo, Kitchens of India, B Natural, Fabelle, Sunbean, and ITC Master Chef, covering products from atta to gourmet coffee.
ITC stands for “Imperial Tobacco Company of India Limited,” reflecting its historical roots in the tobacco industry.
Source – itcportal.com
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