Itc Limitee Essay

2686 Words May 30th, 2016 11 Pages
3/17/2016
3/17/2016
ITC LIMITED: INDIA FIRST
Case analysis
ITC LIMITED: INDIA FIRST
Case analysis

Kabita khanal
Roll no. 14206
MBA 4th term
South Asian Institute of Management
Kabita khanal
Roll no. 14206
MBA 4th term
South Asian Institute of Management

ITC LIMITED: INDIA FIRST

Introduction:
ITC Ltd (ITC) was incorporated on August 24, 1910, under the name Imperial Tobacco Company of India Ltd. to make cigarettes and tobacco. It was started as the consolidation of British Americal Tobacco (BAT) which was an umbrella organization. The manufacturing in India started in 1907 but later in 1912, local sourcing and processing of tobacco was started. Followed by
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During the onset of India’s Independence, ITC faced some challenges. The newly formed government after the Independence, decided to levy excise duties for the first time in order to fund the country’s development. This new law forced them to increase the price of the cigarettes. Now as the development started in the country, competition also started from various local organizations. This resulted in decrease of market share.
Issues:
According to the case, there were different eras of different leaders or chairman for the company. The first Indian Chairman for the ITC Company was P.N. Haksar. He joined the company and founded the “Market Research” department at Imperial. Then later in 1969, became the first Indian chairman of the company. It was during his time, the business was diversified. Although their diversification into Marine Products was a failure, their independent hotel chain was expanded in various regions. During his time, Foreign Exchange Regulation Act was enacted because of which BAT was forced to dilute its stake in the company. For the successful transformation of ITC, he won great recognition as a leader. The two main strategies that he devised include: first to enter an industry that would earn foreign exchange. Second one would be to enter the core section where government found it difficult to attract investment by big industrial undertakings.
The second chairman who succeeded Haksar was Jagadish Sapru (Haksar’s

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