ITC which started as a small cigarette manufacturing company in 1910 has grown into a company worth around four lakh 90 thousand crore rupees today. are suffering a lot but ITC company has shed light in the lives of 40 lakh farmers in Madhya Pradesh and stopped a few thousand farmer suicides but how many of you know this according to the reports of the old health organization who every year directly affects the health of around 80 lakh people by their side 12 lakh people are indirectly suffering from health problems due to breathing that air but have you ever doubted that these cigarettes and paan masala which are killing peoples lives can cause cancer and instead of going on strike they should stop selling them. You need to understand how much profit you get in the form of ITC business actually a whole day is not enough because ITC company has more than 30 branded products from cigarette manufacturing to seven star hotel but ITC company gets 50% to 60% revenue from only two business that is cigarettes and Agriculture exports but the point here is that if ITC company is getting around 50% to 60% revenue from only two businesses then why this company does business then I am going to tell you about the strategy and secret of this ITC company. ITC Company which was registered in India as Imperial Tobacco Company Limited in 1910 in its initial days was WD & H Old Company.
Basically it was a tobacco basic company so for the raw material required for it in 1912 in Guntur District of Andhra Pradesh under the name of Indian Leaf Tobacco Development Company Limited. A company established ITC company has made very good profits within a very short time of its entry in India.Cigarettes are an edition once people get used to it they buy it again and again but one fear that ITC company had from before is that cigarette business is unpredictable because it is not known at what time and in which country. Who does not know if it will be banned so the business and market share they got in India should not be limited to cigarettes only ITC company started selling cigarettes as well as other products. In 1970 the internal tobacco company changed its name to ITC Indian Tobacco Company but there was a problem here that is ITC. The company decided to manufacture and sell other products as well as cigarettes but if the name of the company would be difficult for the buyers then in 1974 the Indian Tobacco Company was registered as ITC Limited in short form, from here the ITC Company Group was started. In addition to buying hotels ITC company started their hotel business by building five star hotels through partnership in countries like Sri Lanka and Dubai which means that the tax to be paid to the government will definitely increase.
So many companies do service programs to overcome this tax and also ITC company has developed by taking an economically backward area called Sarapaka in Andhra Pradesh. They launch their products to cover all economic classes For example if they target middle class and do FMCG business they target rich people and run seven star and five star hotel business Here we need to understand that how much profit ITC company made in cigarette business with those profits Started a new business venture and made a business plan for every corner of India. In 2003 the Indian government banned advertisements for cigarettes and tobacco products but until then the cigarette manufacturing company which had made good profits through heavy advertisement would have lost sales if there were no ads so it indirectly went to the production houses in the film industry. They used to pay a lot of money and put the scenes of the star heroes smoking cigarettes in the movie that is why they said in the movie starting that smoking and alcohol are harmful to life without these two you can not show any movie in India 99% of the time the reason for this is that they are doing direct marketing but in 2003 Sudden Gods was banned. Marketing is very much done by doing according to a study done by the Old Health Organization in India 75% of movies have hero or villain smoking scenes.
And by taking it as an inspiration 50% of people and school children in India are addicted to smoking but do you want to ban the sale of these The revenue is more than 35600 crore rupees I think now you will get a clarity how this company is marketing cigarettes indirectly and why that the government is not banning these It is only cigarette business there is another golden treasure in ITC pocket the same agricultural export business the reason for the agricultural export business of ITC company to develop so well is that Madhya Pradesh was the state of soybean production in India. The farmers of Madhya Pradesh who are growing the highest amount of soybeans are the ones who commit suicide in thousands or the right price for the harvested crop. Here you can get a doubt. When there is so much demand for soybeans in the international market what is the need for the farmers who grow soybeans in Madhya Pradesh to commit suicide What is the demand for soybeans in foreign countries No even companies like ITC which are exporting them are not making profits but ITC company has found out who is eating these profits by deceiving the farmers. There are mediators who have taken the license to buy and all those mediators look at the crop and decide the price they like and whoever announces the highest price the farmers have to sell to them but what actually happens there is that all the mediators in the market
And they are the same and no one quotes a higher price for the crop brought by the farmer. The announcers are the farmers who have brought the crop from many kilometers on hired tractors to the market and are unable to take the crop back. The situation is the same if they ask a high price but this is not the present situation but the problem solved by ITC in 1999 and 2010. So how ITC company has solved this problem is that every village where soybeans are cultivated has been given computer and internet connection so that the farmers can get a reward for their hard work and ITC company has launched a website called e-Chaupal. It is very clear through this website, so the farmers who see it decide who to sell their crops to so ITC company buys soybeans directly from the farmers without intermediaries and does business in the international market. ITC company has changed the lives of more than 40 lakh farmers living in more than 30 thousand villages in the state of Madhya Pradesh. For a few decades farmers were committing suicide after seeing only losses in agriculture. ITC company made the farmers see profits for the first time. In fact, ITC company has done good and bad in India. Maybe this company has lost a lot in the time of Corona. After Corona came in 2020 people in India immediately became health conscious and reduced the smoking of cigarettes. Do you know what is the reason for ITC company to be sustainable even in such a critical time The company started with a different business like FMCG software industry packaging all these also did good business and gave good profits to ITC due to which ITC balanced the profit and loss in its multiple business and stood as a successful company in the long term.
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