From its inception as a small tobacco company, ITC has transformed into a powerhouse in the Fast Moving Consumer Goods (FMCG) sector. This article delves into the captivating history and evolution of ITC, tracing its remarkable journey from its humble beginnings to becoming one of India’s top corporations.
Founding and Early Years:
In 1906, two representatives of British American Tobacco, Jellico and Page, ventured into India to establish a foothold for their cigarette business. They found a partner in Baksh Ilahi, a small businessman who had acquired initial funding from a prostitute. Thus, the Imperial Tobacco Company of India was born in Kolkata in 1910.
Expansion and Diversification:
Over the years, ITC expanded its operations and ventured into various sectors. In 1913, it opened a factory in Bangalore, marking its foray into manufacturing. The company gradually increased its Indian ownership, with Ajit Narayan Haksar becoming the first Indian Chairman in 1969. Renamed several times, it settled as ITC Ltd. in 1974.
Diversification Beyond Tobacco:
ITC’s expansion wasn’t limited to tobacco. In 1975, it entered the hospitality sector with the acquisition of a hotel in Chennai, marking the beginning of ITC-Welcome Group. The company further expanded internationally, establishing Surya Tobacco in Nepal in 1985.
Agri-business and Beyond:
In the 1990s, ITC diversified into agri-business with initiatives like e-Chaupal, connecting farmers digitally. The company also entered the IT sector with Infotech India Limited. Later, it ventured into various FMCG segments, launching brands like Ashirwad Atta, Engage Deodorant, and more.
The Leadership of YC Deveshwar:
YC Deveshwar, the former Chairman of ITC, played a pivotal role in steering the company to success. Under his leadership, ITC’s revenue skyrocketed from Rs 2,000 crores to Rs 39,000 crores. His contributions earned him the prestigious Padma Bhushan in 2011.
Achieving FMCG Dominance:
In April 2023, ITC’s market capitalization surpassed Rs 5 lakh crores, making it India’s largest FMCG company. Within months, it crossed the Rs 6 lakh crore mark and surpassed Hindustan Unilever in market value, solidifying its position as a top-tier corporation.
Conclusion:
From its modest beginnings as a tobacco company to its current status as an FMCG behemoth, ITC’s journey exemplifies resilience, innovation, and visionary leadership. With a diverse portfolio of brands and a commitment to excellence, ITC continues to leave an indelible mark on India’s corporate landscape.
