Made by:-

Kiran 015121

Kirti Prakash Pathak 015122

Komal Shukla 015123

ITC limited• ITC was incorporated on August

24, 1910 under the name Imperial Tobacco Company of India Limited.

• Now known as India Tobacco Company Limited from 1970.

• Headed by Yogesh Chander Deveshwar.

 

Brands

Foods, Personal Care, Cigarettes and Cigars, Branded Apparel, Education and Stationery

Products, Incense Sticks and Safety Matches, Hotels, Paperboards & Specialty

Papers, Packaging, Agri-Business and Information Technology

HUL• Hindustan Unilever Limited

(HUL) is India's largest FMCG Company with a heritage of over 80 years in India.

• Incorporated in the year 1933

• Chairman Mr. Harish Manwani

• HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe.

 

Brands

soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, packaged foods, ice cream, and

water purifiers.

Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr,

Kissan, Kwality Wall’s and Pureit.

COMPARATIVE ANALYSIS

COMPANIES BUSINESS

HUL• HUL is the largest pure-

play FMCG company in the country and has one of the widest portfolio of products sold via a strong distribution channel.

• It owns and markets some of the most popular brands in the country across various categories, including soaps, detergents, shampoos, tea and face creams.

ITC

• ITC is not a pure-play FMCG company, since cigarettes is its primary business.

• It is diversifying into non-tobacco.

• FMCG segments like foods, personal care, paper products, hotels and agri-business to reduce its exposure to cigarettes.

CORE VALUES

HUL• Always working with

integrity

• Positive impact 

• Continuous commitment

• Setting out our aspirations 

• Working with others

ITC

• Trusteeship

• Customer Focus

• Respect For People

• Excellence

• Innovation

• Nation Orientation

RISK

HUL• Being an MNC operating

in India, HUL is more conservative in its strategies than its Indian counterparts. Moreover, given increasing competition, it faces the risk of being overtaken by domestic players in various categories. Prolonged inflation may lead to margin contraction, in case HUL is not able to pass on this burden to consumers.

ITC

• Increased regulatory clamps on tobacco, along with rising tax burden. With its foray into the conventional FMCG space, ITC has entered the high-clutter branded products market. This will burden its resources in terms of ad spend and brand-building. Creating brand recall and building market share in new products are ITCs key challenges. Export ban and rising crop prices pose a threat for its agri-business, taxing its margins

SUSTAINABILITY POLICIES

HUL• Health & hygiene

• Improving nutrition

• Greenhouse gases

• Sustainable sourcing

• Enhancing livelihoods

• Empowering communities

• Stakeholder engagement

ITC• Life-cycle Sustainability

• Responsible Sourcing

• Diversity and Equal Opportunity

• Human Rights considerationof Stakeholders beyond theWorkplace

• Environment, Health & Safety

• Policy on Prohibition of Child Labor and Prevention of Forced Labor at the Workplace

OVERALL STRATEGY

HUL• HUL always believes in

customer friendly products with major emphasis on low cost overall without compromising on the quality of the product.

• They are leveraging the capabilities and scale of the parent company and focusing on the value of execution.

• The entire product portfolio is also being tweaked to include premium offerings such as Ponds Age Miracle and dove shampoo in skin and hair care.

ITC• ITC is focusing on delivering

value at competitive prices. Its tremendous reach through extensive distribution chain has been a competitive advantage.

• Additionally, the company's e-choupal model for direct procurement is well known under which ITC partners with over 100,000 farmers for spices and wheat procurement and an even larger number for oilseeds. This kind of rural pedigree is hard to beat

GROWTH DRIVERS

HUL• The Company has been

launching new products and brand extensions, with investments being made towards brand-building and increasing its market share. HUL is also streamlining its various business operations, in line with the One Unilever philosophy adopted by the Unilever group worldwide. Introduction of premium products and addition of new consumers via market expansion will be HULs growth drivers.

ITC

• ITCs backward integration to ensure that its products pass efficiently from the farms to consumers has helped it to cut down supply and procurement costs. ITCs non-cigarette FMCG business leverages the large distribution network the company has developed by selling cigarettes over the years. A rich product mix, along with ramp-up of investments in its new sectors, will be instrumental in charting ITCs growth path.

CONCLUSION• HULs up-and-running business model is a treat

for investors seeking exposure in the FMCG segment. The company has delivered in the past and has the potential to do better in future. In the small and medium term. ITCs growth story is still evolving.

• ITC is eyeing the pie which HUL and other FMCG players currently enjoy. Though risky, the companies business model will pay off in the long run. ITC has proved its expertise in the cigarettes, hotels, paper and agri-businesses. Investors who want to bank on its execution ability in FMCG can consider the stock with a long-term horizon.