How itc got its act together – livemint
Over a decade ago, one of the doyens of Indian business journalism had written an article, “Tale of two companies”, comparing two packaged consumer goods makers—Hindustan Lever Ltd (still not Hindustan Unilever Ltd (HUL) then) and ITC Ltd. Noodles and company breach Since then much soap and detergent have been washed down the Hooghly and Arabian Sea—as indeed millions of puffs have been blown through human chimneys. About noodles and company While HUL has regained its old act by re-engineering itself, ITC has got its new act together by reinventing itself.
Till the early 1990s, the punch line of all Hindustan Lever chairmen used to be “we are an Indian company whose largest shareholder happens to be a multinational”. Noodles and company lone tree ITC, on the other hand, used to be less apologetic about its BAT Plc. Noodles and company nutrition parentage. Menu at noodles and company Following the eminently forgettable K.L. Noodles of the world locations Chugh era, when Y.C. Noodles and company rochester Deveshwar mounted the saddle, in a corporate coup of sorts with the backing of institutional shareholders, he decisively cut off the umbilical chord and embarked on a mission to establish ITC’s Indian credentials with a vengeance.
At the same time, with liberalization of the Indian economy, the new generation chairmen of Lever over time shed their trademark khadi silk bush-shirts in favour of bespoke suits when traversing the power corridors of Delhi.
Noodles and company frankfort However, this piece is not about comparing the two companies but trace the evolution of ITC as an Indian consumer products giant.
It is easy to surmise why Ajit Haksar—the last of the corporate Mohicans—ventured into hotels. Noodles and company ames It was partly to hedge against the possibility of curbs on the tobacco business and also as a safe haven for the surplus funds of the mother business that could be easily encashed anytime by selling the brand or the real estate. Noodles and company orem It is to Haksar and ITC’s credit that they nurtured Welcomgroup for a long time before it became truly profitable. Www noodles Printing and packaging (where Deveshwar first cut his teeth) and paper boards were but logical vertical integration.
Similarly, one would believe the lifestyle and apparel business was started to secure the Wills franchise. Noodles and company bangkok curry But the real serious diversification was kicked off with ITC’s plunge into the foods business—which arose both out of necessity and opportunity. Noodles and company loveland Subsequently, it naturally extended to pure consumer products play.
The story of ITC’s transformation is one of turning a proverbial threat into an opportunity. Menu noodles and company As the time-worn cliché goes—cigarettes is a “dying” industry in more senses than one. Noodles and company tulsa With the intervention of World Health Organization and a judiciary increasingly sensitive to the hazards of tobacco consumption, the tobacco industry has had to brace itself for a premature sunset like its consumers (smokers).
Simultaneously, there was a need to divert public attention from corporate governance and health (tobacco) to being a socially-responsible organization. Noodles and company layton This, one would suspect, was the genesis of a “we also make cigarettes” strategy.
The ban on cigarette advertising came as a blessing in disguise as it left ITC flush with cash. Noodles and company reviews Not having a majority foreign shareholding allowed it to enter the food sector—then reserved for domestic players (except those such as Nestle SA, GlaxoSmithKline PLC and a few others—who enjoyed the benefits of a “grandfather” clause). All about noodles Food was largely an open field with no organized pan-India player barring Britannia Industries Ltd. Noodles shop From biscuits, atta, ready-to-cook or heat meals, it has seamlessly moved to instant noodles, juices and now, one hears, coffee is in the pipeline.
For a cigarette manufacturer with low technology and little product innovation except in packaging perhaps, ITC’s most remarkable achievement was in learning the ropes of an entirely different supply chain and gaining mastery of a new product category, not just in terms of marketing but product development and innovation. Noodles and company boulder Equally challenging was building a network which—contrary to popular belief—had little in common with the cigarette retail channel.
The evolution into personal care was even more interesting because here it had to contend with a giant like Unilever with an 80-year legacy in India, international brands and world-class research and development. Www noodles and company Making soaps, body-wash and shampoo brands is as different as paneer is from talcum powder. Noodles delight menu Globally, too, it is rare for companies to be equally successful in both food and packaged consumer products. Noodles and company glen ellyn Neither Unilever nor Procter & Gamble Co. Noodles and company hours can really be considered to have handled both businesses with the same level of success while traditional food makers like Nestle and General Foods Corp. Noodles inc menu have by and large stuck to their knitting.
However, ITC’s real success lies in achieving this transformation with existing, home-grown talent with very little (or practically no) lateral hires at senior levels.
ITC remains one of the few large companies that still believes in providing long-term careers to its employees. Noodles and company concord ca It is a key differentiator in a fast-changing corporate world where “turnover” and “velocity” are the current flavours of human resources management. Noodles and company dc Changing the corporate DNA and culture is no mean task. Noodles and company vcu If an organization has to reinvent itself so have to its leaders. Noodles in company This is where Deveshwar scores above many of our present day corporate icons. Noodles and company ingredients Arguably, he had an extended stay at the top. Noodles and company orland park But Deveshwar leaves behind a new ITC for the next generation.
In contrast, the much-hyped “Project Millennium” of Lever—riding on which many careers were made—lost steam. Noodles and company elk river Among close to a dozen business ideas incubated—just about one (water, that too in a modified form) has survived the genetic implant.
The jury on the latter is still out. Noodles and company richfield But, what it does underscore is the rapidly shrinking ramp-up time. Noodles and company oakland What took Unilever 60 years to achieve, Amul did in 40 and ITC in 20. Noodles & company hours Now, Patanjali has managed to scale up in less than five.
Sandip Ghose is a marketer, blogger and writer. Noodles and company cupertino He is also a practising life coach for young professionals. Noodles menu fayetteville ar Follow him on Twitter @SandipGhose.