As one of the country’s largest corporations, ITC has always remained media-shy ever since the sordid events of the Nineties shook the very foundations of the company. Yet every now and then, it chooses to come out of its shell and provide an opportunity for a more in-depth interaction. Last month, it decided to engage with Forbes India. Chairman Y.C. Deveshwar and his entire top brass shared their perspective on ITC’s future with my colleague, Associate Editor T. Surendar, and me across Delhi and Kolkata and over video conference from Chennai and Bangalore.
Those who’ve tracked ITC’s fortunes through the decades will know the history of Virginia House in Kolkata’s Chowringhee, where ITC is headquartered. I’ve heard many business leaders pay lip service to serving India’s needs. But right from the time A.N. Haksar took charge as the first Indian chairman of ITC, the company has been a test case for redefining several modern precepts of management. For starters, can diversified conglomerates compete more effectively than focussed rivals in emerging markets like India? This is an issue that sounds almost as old as the hills, but in recent times, it has come into sharp focus as ITC took on Hindustan Unilever, the Indian subsidiary of the Anglo-Dutch multinational that almost made this country its second home.(This story appears in the 02 July, 2010 issue of Forbes India. To visit our Archives, click here.)
While it will take some time for ITC to match the marketing might of HUL, but ITC's ability to focus and produce results in diversified field from hospitality industry , paper and fmcg is really commendable. Companies like HUL should also learn from ITC how to manage staple food business alongside with detergents and soaps, which is also a non core buisness area for ITC.
on Jun 25, 2010ITC is without doubt one of the most respected and diversified companies of India. It makes for a good conglomerate, however, it needs to go a long way to match up to HUL in the FMCG space. <br /> HUL is solely focused in this sector and has created benchmarks when it comes to consumer insights, sales and distribution systems, brand development and brand building. ITC on the other hand has been a a very sales driven organization, thanks to its tobacco business which requires intense distribution. However they need to work on the overall marketing systems to challenge HUL in a domain they have created.
on Jun 21, 2010