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ITC - Cigarettes A study of sales & distribution of
BY UVISE P.M. SMBS
ITC-Company profile
ITC was established on August 24, 1910
Indian public conglomerate company headquartered in
Kolkata, West Bengal, India
ITC's gross revenue for FY2014-15 stood at Rs. 49964.82 crores.
The number of permanent employees as on 31st March, 2015
was 25,787 and supports livelihoods of ~6 million people.
NameName year
Imperial Tobacco Company of India Limited
1910
Indian Tobacco Company Limited 1970
I.T.C. Limited 1974
ITC Ltd Sept 2001
‘ITC’ not have any Acronym
ITC’s Business Portfolio FMCG
Cigarettes Personal Care Foods Lifestyle Retailing Education & Stationery Safety Matches & Incense Sticks
Paperboards, Paper & Packaging Hotels Agri Business Information Technology
FMCG- Cigarettes 8.7% growth in the Cigarettes
segment last FY. legal cigarette industry in India continues to
be impacted by taxation and discriminatory regulatory regime.
Two rounds of sharp increase in Excise Duty in July 2014 and February 2015.
FMCG- Cigarettes Revenue from sale of cigarettes is >60% of
gross revenue from sale of products and services.
ITC have got one of the finest distribution channel in the country
Market Capitalization (Rs. cr)
ITCGodfrey PhillipVSTKothari ProductGolden TobaccoNTC IndustriesRTCL
Product varients
ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.
Distribution channel-CigarettesINTERMEDIARY
DESCRIPTION
FACTORIES
C and F/DEPOTSDISTRIBUTOR
WHOLE SALER
RETAILER
CUSTOMER
BANGLORE HOSUR
LAXMAN DASGOVARDAN PVT.LTD
ADAM’S STORES
HOWCKERS(SCOOTER WALA)
BISMI STORES
ERNAKULAM
Retailer Suppliers- wholesaler and distributor Wholesaler through the howckers Retailer approach wholesaler for goods Cash purchase are preferred by supplier. Profit is from the each product. Gets fresh stock almost every day. Margins are different for the packet sale and
single unit sale. Buy a pack for Rs 103 and sell it for 108 or 110.
wholesaler Buy goods from distributor and sell to retailers. At less price compared to retailer. Price rate of product is based on the ordering
quantity. Distributor vehicle directly serve the wholesaler. Cash and carry purchases. He buys the packet at Rs 100.50 and sell at 103
Scooter wala Link b/w distributor and retailer. 501 stores in muvattupuzha. They also sell safety matches and agarbathies. 5 howckers under muvattupuzha division. Each person is allotted to each area. They are supply at demand and they don’t have
any target. They are receiving 0.8% commission from distributor Other than that he gets Rs. 3000/- per month as fuel
charges.
Distributor They distribute most of the ITC product. They receive goods from C and F and
forward toward retailers and wholesalers They provide warehousing for goods. they have receiving certain percentage of
sale as benefit(refused to provide the information ) They are not providing special schemes.
Distributor They place order to depots in every
week and at demand. Average sale of cigarettes is
60,00000 No targets are set by the company And have a sales team managed by
distributor.
C and F They carry and transfer the ITC
products to the distributor. Under direct control of ITC They receive goods from plants. Three depots in Kerala territory. Office is situated at Ernakulum. They transfer goods to distributor by
road.
Smoking is Injurious To HealthIt causes Cancer
Thank you