Itc cigarette distribution channel

supply chain and thee distribution chaneel of ITC india limited
prepared by uvise p m
based on the market study and survey during december 2015.

1. ITC - Cigarettes A study of sales & distribution of BY UVISE P.M. SMBS

2. ITC-Company profile ITC was established on August 24, 1910 Indian public conglomerate company headquartered in Kolkata, West Bengal, India ITC's gross revenue for FY2014-15 stood at Rs. 49964.82 crores. The number of permanent employees as on 31st March, 2015 was 25,787 and supports livelihoods of ~6 million people.

3. Name Name year Imperial Tobacco Company of India Limited 1910 Indian Tobacco Company Limited 1970 I.T.C. Limited 1974 ITC Ltd Sept 2001 ‘ ITC’ not have any Acronym

4. ITC’s Business Portfolio FMCG Cigarettes Personal Care Foods Lifestyle Retailing Education & Stationery Safety Matches & Incense Sticks Paperboards, Paper & Packaging Hotels Agri Business Information Technology

5. FMCG- Cigarettes 8.7% growth in the Cigarettes segment last FY. legal cigarette industry in India continues to be impacted by taxation and discriminatory regulatory regime. Two rounds of sharp increase in Excise Duty in July 2014 and February 2015.

6. FMCG- Cigarettes Revenue from sale of cigarettes is >60% of gross revenue from sale of products and services. ITC have got one of the finest distribution channel in the country

7. Product varients ITC's major cigarette brands include Wills Navy Cut, Gold Flake Kings, Gold Flake Premium lights, Gold Flake Super Star, Insignia, India Kings, Classic (Verve, Menthol, Menthol Rush, Regular, Citric Twist, Mild & Ultra Mild), 555, Silk Cut, Scissors, Capstan, Berkeley, Bristol, Lucky Strike, Players, Flake and Duke & Royal.

8. Distribution channel- Cigarettes INTERMEDIARY DESCRIPTION FACTORIES C and F/DEPOTS DISTRIBUTOR WHOLE SALER RETAILER CUSTOMER BANGLORE HOSUR LAXMAN DAS GOVARDAN PVT.LTD ADAM’S STORES HOWCKERS (SCOOTER WALA) BISMI STORES ERNAKULAM

9. Retailer Suppliers- wholesaler and distributor Wholesaler through the howckers Retailer approach wholesaler for goods Cash purchase are preferred by supplier. Profit is from the each product. Gets fresh stock almost every day. Margins are different for the packet sale and single unit sale. Buy a pack for Rs 103 and sell it for 108 or 110.

10. wholesaler Buy goods from distributor and sell to retailers. At less price compared to retailer. Price rate of product is based on the ordering quantity. Distributor vehicle directly serve the wholesaler. Cash and carry purchases. He buys the packet at Rs 100.50 and sell at 103

11. Scooter wala Link b/w distributor and retailer. 501 stores in muvattupuzha. They also sell safety matches and agarbathies. 5 howckers under muvattupuzha division. Each person is allotted to each area. They are supply at demand and they don’t have any target. They are receiving 0.8% commission from distributor Other than that he gets Rs. 3000/- per month as fuel charges.

12. Distributor They distribute most of the ITC product. They receive goods from C and F and forward toward retailers and wholesalers They provide warehousing for goods. they have receiving certain percentage of sale as benefit( refused to provide the information ) They are not providing special schemes.

13. Distributor They place order to depots in every week and at demand. Average sale of cigarettes is 60,00000 No targets are set by the company And have a sales team managed by distributor.

14. C and F They carry and transfer the ITC products to the distributor. Under direct control of ITC They receive goods from plants. Three depots in Kerala territory. Office is situated at Ernakulum. They transfer goods to distributor by road.

15. Smoking is Injurious To Health It causes Cancer

16. Thank you