ITC: A Comparative Analysis Of Hindustan Unilever Limited

Vansh Batra

HOUSE A

BBASEP17S142

POM Report

When the topics comes to explain about any one company of my home country, my mind is bucket full of so many names. But from the boat full of companies in today’s competition, I choose ITC to give a little bit information and update on analysis.

Introduction

ITC is an Indian company which was established in 1910 with the name of Imperial Tobacco Company of India Limited. In 1970, the name of the company was renamed to Indian Tobacco Company Limited and then further in 1974, the final name was changed to I.T.C. Limited (which is now running the whole country with its many quality products and services. In September 2001, a major issue was also created by some members of the company just to have a

I have collected the whole information from the information but, after understanding everything, I am explaining here with my point of view.

COMPETITION

VISION: Sustain ITC position as one of the India’s most enhanced corporation all around the world through its performance, which is helping the company to give its contribution to Indian economy and side by side to the company stakeholders.

HUL: We are all so much known with the name of Hindustan Unilever Limited, is a great competitor of the brand because of its products in every field as the company is having a network with almost 2 billion people everyday. Now a days , majority of the population is using hair products to make their hairs shiny or either we can say floor shiners and home products. The company is not only providing the convenience to the public but also satisfying the daily needs.

Some Important point and factors of the company which are noted:

• ITC is having 66% market share whereas HUL’s market share is 56%. By this factor, we can conclude that ITC has huge market value.

• The profit of the ITC company is increasing by 15% per annum whereas HUL is having a constant value in its growth

• ITC is having a very huge market share as compared to Hindustan Unilever Limited.

Political Factors: The political environment is so much favourable for ITC and the company is also having a very nice impact on FMCG and Hotel business. For example, after the removal of expenditure tax in the year 2007, the company occupied its image with a very great glance in front of public with its presentation; which further helped in increasing the buying power of the customer. On the other hand, after the increment of the taxes with excise duty vat from 12.5% to 20% in states like Maharashtra and Delhi, the company faced lower sales just because of the potential of the customers which got deterred.

Economic Factors: At the time of changes of taxes, the filtered and the non-filtered cigarettes were placed at the same price due to which ITC faced a loss of 3% in its total profit due to which the company discontinued non-filtered cigarettes in future. Furtherly, ITC increased the production of filtered cigarettes which results in increment of 15% in company’s profit. By this, we can conclude that ITC is gaining at the expense of