History of ITC Group

ITC Limited is a diversified conglomerate based in Kolkata, India. Established in 1910, the company has significantly expanded its operations beyond tobacco and has ventured into various sectors like education, FMCG, food, and financial services.

Initially, the acronym ITC stood for Imperial Tobacco Company of India Ltd. However, in 1970, it was changed to Indian Tobacco Company, and later, in 1974, it was changed again to stand for just “ITC Limited”. Let’s study the ITC Group in detail, observe its history, and know about all its businesses and subsidiaries.

The ITC Group is one of India's largest and most valuable companies. As of March 2024, the company reported net sales of Rs. 70,105 crore. It is also the third-largest tobacco company globally. To begin with, let’s have a look at some basic details of ITC Limited:

The company operates in several industries, such as::

• Fast-Moving Consumer Goods (FMCG)
• Hotels
• Paperboards and Packaging
• Agribusiness

Also, ITC is highly regarded for its commitment to sustainability and corporate social responsibility (CSR). The company has received numerous awards for its environmental and social initiatives. ITC's shares are traded on major Indian stock exchanges, including:

• Bombay Stock Exchange (BSE)
• National Stock Exchange of India (NSE)
• Calcutta Stock Exchange (CSE)

The company was founded in 1910 as the Imperial Tobacco Company of India Limited. It has now evolved from its tobacco-centric products and expanded into other business sectors.

Some key milestones include entering the hotel industry in 1972 and launching popular FMCG brands like “Aashirvaad” and “Sunfeast”. Today, ITC is one of the most profitable FMCG companies in India.

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Let us look at some key events in the rich history of ITC Group:

• 1910:
  • ITC was founded as the Imperial Tobacco Company of India Limited.
  • It operated as a subsidiary of the British-American Tobacco Company.
• 1953:
  • ITC acquired the manufacturing business of Tobacco Manufacturers (India) Limited.
  • This acquisition strengthened its position in the tobacco industry.
• 1954
  • ITC became a public limited company.
  • It opened up its shares to the public.
• 1970:
  • The company was renamed India Tobacco Company Limited.
• 1972:
  • ITC diversified into the hotel business.
• 1974
  • The company simplified its name to ITC Limited.
  • The full form of the acronym was dropped.
• 1979
  • The hotel chain operated by ITC was renamed from 'Welcome Hotels' to 'Welcomgroup'.
• 1987:
  • ITC introduced new cigarette brands:
    • Wills Flake Premium Filter
      and
    • Scissors Filter
• 1988:
  • ITC launched 'ADARSH' oilseeds and 'SUNDROP' cooking oil.
  • This marked its entry into the edible oils market.
• 1998:
  • ITC expanded significantly and grew to nearly 105 subsidiaries.
• 2003:
  • ITC launched “Spriha” natural incense sticks and “Aashirvaad” salt.
• 2010:
  • ITC entered the fairness cream market and the cigar business.
  • The company significantly expanded its product offerings in the personal care and luxury segments.
• 2022:
  • ITC achieved a Gross Sales Value of Rs. 90,104 crore.
  • The Net Profit of the company increased to Rs. 15,058 crore.
  • The company was crowned as one of the most profitable FMCGs in India.

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The company operates in multiple sectors. Let us look at some major subsidiaries of ITC Group operating in different business verticals:

Hospitality

• Srinivasa Resorts Limited
• Fortune Park Hotels Limited
• Welcomhotels Lanka (Private) Limited, Sri Lanka

FMCG (Fast-Moving Consumer Goods)

• Surya Nepal Private Limited
• North East Nutrients Private Limited

Technology

• ITC Infotech India Limited (I3L)
• ITC Infotech (USA)
• ITC Infotech Limited UK
• ITC Infotech Do Brasil
• Indivate Inc. [a 100% owned subsidiary of ITC Infotech (USA)]

Investment

• Russell Credit Limited
• Greenacre Holdings

Others

• Wimco Limited
• Technico Pty Limited
• Landbase India Limited
• Gold Flake Corporation Limited
• ITC Essentra Limited

It is pertinent to note that the ITC Group has an extensive range of brands. Its products reach approximately 230 million households in India. Let us look at all the major businesses of ITC Limited:

• Branded packaged foods
  • Aashirvaad: Flour and staples 
  • Sunfeast: Biscuits, pasta, and other bakery items 
  • Bingo!: Snacks like chips and namkeens 
  • Candyman: Confectionery 
  • Sunbean: Coffee 
  • ITC Master Chef: Frozen and ready-to-cook foods
• Personal care 
  • Dermafique: Skincare 
  • Fiama: Bathing products 
  • Vivel: Soaps and personal care 
  • Engage: Deodorants and perfumes 
  • Savlon: Antiseptic and hygiene products 
  • Charmis: Skincare
• Education and stationery
  • Classmate: Notebooks and stationery 
  • Paperkraft: Premium business paper
• Agarbattis and safety matches
  • AIM 
  • Mangaldeep 
  • Homelites
• Hotels
  • ITC Hotels 
  • Fortune Park Hotels 
  • Welcomhotels Group
• Cigarettes and cigars 
• Packaging and paperboards
• Agri-business
• Information technology

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Being a conglomerate, the ITC Group operates several businesses through its various subsidiaries. Let us look at the major ones:

• ITC Infotech India Limited
  • Provides a wide range of IT services, which primarily include:
    • Application development and maintenance
    • QA Testing
    • Infrastructure management
    • IT Consulting
• ITC Hotels Limited
  • Manages luxury hotels under several brands, such as:
    • ITC Hotels
    • WelcomHotels
    • Fortune Hotels
    • WelcomHeritage
  • This subsidiary is a key player in ITC's hospitality business.
• ITC Limited
  • Manufactures and markets a range of cigarettes and tobacco products.
  • As the core company, ITC Limited is a significant contributor to the group's overall revenue.
• Srinivasa Resorts Limited
  • Owns and operates luxury resorts, including the ITC Kakatiya in Hyderabad.
  • This subsidiary enhances ITC's footprint in the luxury hospitality sector,

ITC Limited has evolved from a tobacco company in 1910 to become a diversified conglomerate with a significant presence in FMCG, hotels, paperboards and packaging, agribusiness, and information technology.

ITC Group’s successful expansion is majorly driven by its subsidiaries like ITC Infotech, ITC Hotels, and Srinivasa Resorts. With a strong brand portfolio, ITC continues to be one of India's most valuable companies.

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