Also the profits for three quarters of FY 20 are flattish. So not much happening in short term. Also as I was saying in my previous post some their products do not have mass appeal. Eg: ITC master chef and Fabelle chocolates are not available in all outlets. Its difficult to understand their marketing strategy. Take a list of their entire range of products. Most of it even we don’t know where they exist.
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Came across this interesting and potentially controversial study. It concludes illegal cigarettes may be as low as 3% versus the 20%+ claimed by industry players. While the sample size is relatively small for a country as large and varied as India, it does raise the question whether industry lobbyists are making a mole out of a mountain to pressure government to not rate taxes further.
Illicit cig_IN_John-and-Ross-2018.pdf (176.7 KB)
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As per this survey, In metro cities, illicit cigarettes is very less. May be due to surveillance ?
Other town selected are also only 5.
survey would have been more meaningful if it had included many rural and small town areas in different parts of india.
The author seems to be promoter of public welfare policy from cochin. So his intent is also to deflate illicit cigarette market share so that legal cigarattes are taxed more for public welfare.Its true industry players obviously want to inflate illicit market share so as to reduce tax rates by govt but real market share of illicit cigarettes is still unknown.
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So I found this - https://www.financialexpress.com/industry/alert-you-are-buying-illegal-fake-cigarette-every-one-out-of-three-times/1862444/
Prime Minister Narendra Modi last year ratified the FCTC protocol towards India’s commitment towards fighting illegal tobacco trade. “The idea is whatever is sold, should be sold through proper channels, Nakul Pasricha, President, ASPA, told Financial Express Online. Implementation of tax stamps has been one of the most effective measures and the experiences in many countries demonstrate that a comprehensive approach to address illicit tobacco markets is most effective, he added.
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Its more like a deodorant, very likely they are using the ENGAGE plant spare capacity
The size of this firm appears large. Wonder how many more such firms are in operation.
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I’m not an expert, but from what I have read, they will enter the premium segment; followed by mass segment. Like paperkraft to classmate and essenza di wills to fiama. So fabelle, as of now is kind of premium segment and eventually they will enter into the mass segment to compete with dairy milk, hopefully! Same is the case with their frozen food, namely MasterChef. In their entire range, I hope most of the products are visible like ashirvad, bingo, etc. I have no opinion about FY 20 and short term view.
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It’s mindblowing with daily news flow and new forays of ITC. I sometimes wonder how do they manage this behemoth and ensure efficiency and control. Isint this newsflow happening too often these days? Is it indicative of the company trying its hands at various things as it just has one target in mind…to increase volumes in non-cigarette business? How will all this end and when will it start behaving like a matured FMCG company and do not rely on cash from cigarette business…I mentioned it long back that it’s a different ball game to grow from nothing than to have a perennial cash source at your service…I think the day they start treating FMCG as different business unit or even chose to demerge and decide to stop it’s cash source, would be the begining of its rise. I would want it’s FMCG to struggle and grow in new categories…
Disc. Gradually nibbling
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Its a dark horse in the stable, can be the next big reformer like IT
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ITC kolkata traditional wing runs mature business - Cig –
While
Divisional CEO - Food who runs from Bangalore ,
Divisional CEO - Agri who from from Andhra/ Telangana -
Divisional CEO - Incense Sticks / Spitural Goods ( Mangaldeep) - Chennai
Divisional CEO- Educational Sector - Classmates
all run business like start ups
Mangaldeep is one of the top app in Spiritual category
They start 100s for experimental business - only 5 /6 survive after 5 odd years …
By the way ITC Agri is > 30 year old business - they used own Sundrop Oil brand in 1990s …
But some miscalculation in 1990s they sold lot of good business in FMCG to Conagra and Finance to ICICI
Hope they don’t do such mistakes this time around
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Non-availability of Savlon (antiseptic liquid and other products) is really frustrating. I don’t know if there is a distribution issue.
- Savlon (liquid & sanitizer & soap) are not available anywhere in my nearby areas since a month (4 super markets and several kiranas & medicos).
- Even Savlon handwash (liquid) is difficult to find.
- Same with Dettol antiseptic Liquid (though it is found sometimes along with its sanitizer). However, Dettol soap and handwash are available everywhere.
- Even branded sanitizers like Lifebuoy, Godrej, Dabur etc are available. But not Savlon.
- Thankfully, the newly launched Savlon spray is available, we have used it and its a good product.
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Precisely my point, these businesses are run as start up with perennial cash source, just like PE funding for start ups…it’s different to grow from your own cashflows…
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News-flows just dont stop for ITC. Another one
Thanks,
Deb
I am not able to find concall transcripts of ITC. Does ITC hold analyst concalls? Or don’t
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Even I came here for the same question! Could someone help us by finding the con-calls of ITC ltd?
https://www.researchbytes.com/Research-ShowCase/ITC-Limited-I0306.htm
No, ITC doesn’t seem to do ConCalls.