Here’s a clear explanation of **ITC Limited’s Business Model** 👇
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### **ITC Business Model Overview**
**1. Diversified Conglomerate Structure**
ITC Limited operates as a multi-business conglomerate with presence across **FMCG, Hotels, Paperboards & Packaging, Agri-Business, and IT services**. This diversification reduces risk and ensures multiple revenue streams.
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**2. Major Business Segments**
* **FMCG (Fast-Moving Consumer Goods):**
* Cigarettes (Flagship business, \~35-40% revenue share)
* Branded packaged foods (Aashirvaad, Sunfeast, Bingo, Yippee, B Natural)
* Personal care (Fiama, Vivel, Savlon)
* Lifestyle retail (Wills Lifestyle, John Players earlier)
* Stationery & matches
* **Hotels:**
* Operates premium, luxury, and business hotels under ITC Hotels, WelcomHotel, Fortune, and Aashray brands.
* **Paperboards, Paper & Packaging:**
* Integrated manufacturing of eco-friendly paperboards, specialty papers, and packaging solutions.
* **Agri-Business:**
* E-Choupal digital platform connects directly with farmers for procurement of wheat, soybeans, coffee, etc.
* Supplies to domestic and export markets.
* **IT Services:**
* ITC Infotech offers technology consulting and digital solutions globally.
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**3. Value Creation Strategy**
* **Backward Integration:**
Own sourcing (agriculture, paper) ensures cost efficiency and quality control.
* **Brand Building:**
Heavy investment in R\&D, innovation, and strong distribution network.
* **Sustainability Focus:**
ITC positions itself as carbon-positive, water-positive, and solid-waste recycling positive.
* **Synergy Across Businesses:**
Agri-business supports FMCG (e.g., sourcing wheat for Aashirvaad), packaging supports branded foods, etc.
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**4. Revenue & Profit Mix**
* Cigarettes remain the **largest profit generator**, though FMCG and agri-business are growing rapidly.
* Hotels and paperboards provide diversification but contribute less to profit compared to FMCG & cigarettes.
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✅ **In short:** ITC runs a **multi-vertical business model**, with cigarettes as the cash cow funding expansion into FMCG, hotels, and other sustainable ventures, creating long-term shareholder value.
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thanks
---
### **ITC Business Model Overview**
**1. Diversified Conglomerate Structure**
ITC Limited operates as a multi-business conglomerate with presence across **FMCG, Hotels, Paperboards & Packaging, Agri-Business, and IT services**. This diversification reduces risk and ensures multiple revenue streams.
---
**2. Major Business Segments**
* **FMCG (Fast-Moving Consumer Goods):**
* Cigarettes (Flagship business, \~35-40% revenue share)
* Branded packaged foods (Aashirvaad, Sunfeast, Bingo, Yippee, B Natural)
* Personal care (Fiama, Vivel, Savlon)
* Lifestyle retail (Wills Lifestyle, John Players earlier)
* Stationery & matches
* **Hotels:**
* Operates premium, luxury, and business hotels under ITC Hotels, WelcomHotel, Fortune, and Aashray brands.
* **Paperboards, Paper & Packaging:**
* Integrated manufacturing of eco-friendly paperboards, specialty papers, and packaging solutions.
* **Agri-Business:**
* E-Choupal digital platform connects directly with farmers for procurement of wheat, soybeans, coffee, etc.
* Supplies to domestic and export markets.
* **IT Services:**
* ITC Infotech offers technology consulting and digital solutions globally.
---
**3. Value Creation Strategy**
* **Backward Integration:**
Own sourcing (agriculture, paper) ensures cost efficiency and quality control.
* **Brand Building:**
Heavy investment in R\&D, innovation, and strong distribution network.
* **Sustainability Focus:**
ITC positions itself as carbon-positive, water-positive, and solid-waste recycling positive.
* **Synergy Across Businesses:**
Agri-business supports FMCG (e.g., sourcing wheat for Aashirvaad), packaging supports branded foods, etc.
---
**4. Revenue & Profit Mix**
* Cigarettes remain the **largest profit generator**, though FMCG and agri-business are growing rapidly.
* Hotels and paperboards provide diversification but contribute less to profit compared to FMCG & cigarettes.
---
✅ **In short:** ITC runs a **multi-vertical business model**, with cigarettes as the cash cow funding expansion into FMCG, hotels, and other sustainable ventures, creating long-term shareholder value.
---
thanks
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Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.