Monday, March 18, 2013

For Them, it’s About Social Sustainability

By Betting big on CSR, ITC has Once Again shown What It Takes to be one of the Fastest Growing Companies in India.

When Y. C. Deveshwar took over in 1996, ITC was experiencing an unmatchable mix of challenges. Its cigarette business had been slapped with an excise duty demand of Rs.8.03 billion, its diversification into hotels and paperboards had still not bore fruits, its forays into financial services, edible oils and international trading too were still incurring losses. In short, the company was facing a severe criticism, both from its investors and industry experts.

Cut to today, and things have completely changed for this FMCG giant. Though severe taxation and regulatory environment for cigarettes in India continue to be a cause for concern, innovation and an unrelenting consumer focus have enabled ITC to deliver a splendid performance to make its way to this year edition of B&E’s Fastest Growing Companies in India. In fact, initiatives across the brand portfolio, in terms of modernisation of cigarette packs and introduction of new brands and variants, helped ITC declare a strong topline growth of 16.3% (y-o-y) to Rs.181.53 billion in FY2010 from Rs.156.11 in FY2009. Needless to say the major contribution came from the cigarette business that reported a 14.3% rise in gross revenues, from Rs.151.15 billion in FY2009 to Rs.172.83 billion in FY2010. Earnings too grew by a robust 27% (y-o-y) to Rs.40.61 billion in FY2010 from Rs.32.63 billion in FY2009.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

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