How ITC Built Iconic Brands: Lessons for Aspiring Entrepreneurs

Overview

Exploring the strategies ITC used to build iconic brands and key lessons for entrepreneurs. Blog Category:

​ITC Limited, established in 1910, has evolved into one of India's leading conglomerates, with a significant presence in the Fast-Moving Consumer Goods (FMCG) sector. Its diverse portfolio includes renowned Indian brands such as Aashirvaad, Sunfeast, Bingo!, and Yippee!, contributing to a substantial portion of the company's revenue.

Innovation is at the heart of ITC's business approach. The company continuously expands its product portfolio, including the introduction of health-focused offerings to tap into India's growing health food market. Their proactivity facilitates their ability to stay ahead of trends and cater to diverse markets. In August 2024, ITC launched 'Right Shift,' a thoughtfully designed product line targeting consumers aged 45 and above. This range features nutritious offerings with natural ingredients, specifically selected to support digestion, strength, and energy.

ITC Limited has smartly adopted digital transformation to boost its manufacturing operations by incorporating cutting-edge technologies like Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IoT), and blockchain. These innovative implementations have notably enhanced efficiency, agility, and product quality throughout the company's production facilities.

The students at Tetr College of Business had the opportunity to visit ITC's state-of-the-art manufacturing facility, and gained valuable insights into the company's operational excellence. They observed ITC's meticulous quality control processes, which help ensure safety and consistency throughout their vast range of products. Through this, they learned the crucial role of stringent quality assurance in maintaining both brand reputation and consumer trust. 

The visit also provided students with an impressive overview of ITC's comprehensive end-to-end supply chain management. From the initial sourcing of raw materials all the way to final distribution, ITC utilizes sophisticated machinery and automation to efficiently scale production, effectively meeting mass-market demand. For aspiring entrepreneurs, gaining this understanding of operational processes proves invaluable when looking to optimize their own operations and achieve meaningful scalability in the competitive FMCG sector.

A Sneak Peek into ITC’s Smart Factories

1. Smart Manufacturing through Industry 4.0

ITC has implemented Industry 4.0 practices in their Paper & Paperboard business, with over 100 use cases optimizing operations. Their toolkit includes Industrial IoT, integrated data systems, AI/ML algorithms, and computer vision solutions, all working together to boost productivity and quality.

2. AI and ML for Supply Chain Optimization 

The company uses an AI/ML-powered integrated planning system to optimize inventory and enhance productivity. Their IoT-based solutions track stock movements in real-time, improving vehicle turnaround and customer service through smart data analytics.

3. Robotic Process Automation (RPA) for Operational Efficiency

 ITC has deployed more than 830 bots across various processes, eliminating repetitive manual tasks. This automation initiative has delivered significant time savings while improving accuracy and compliance.

4. Digital Platforms for Collaborative Manufacturing

The ITC One platform enables sharing best practices, using data analytics for cost optimization, and managing supply chains efficiently. This collaborative approach helps identify improvement opportunities and deliver better results.

Key Takeaways from the ITC Immersion

1. Quality Control and Manufacturing Excellence

• Tetr students observed ITC’s stringent quality control measures that maintain product safety and consistency.

• They gained firsthand insights into the end-to-end manufacturing processes for iconic Indian products like Bingo Mad Angles, Sunfeast biscuits, and Aashirvaad Atta.

2. FMCG Production and Efficiency

• Students understood the intricacies of the FMCG supply chain, from production to stockists and distribution networks.

• They saw how ITC uses advanced machinery and automation to scale production efficiently for mass-market consumption.

3. Branding and Packaging Strategy

• The immersion provided insights into how ITC integrates branding and packaging decisions within its manufacturing process.

• Students analyzed how ITC ensures that packaging aligns with consumer expectations and product positioning.

ITC Limited's journey offers a wealth of lessons for aspiring entrepreneurs, particularly in areas of quality control, supply chain management, innovation, and digital transformation. Tetr College of Business's approach to education, which emphasizes practical application and global exposure, equips students with the tools and insights necessary to succeed in the dynamic FMCG landscape. The synergy between ITC's operational excellence and Tetr's experiential learning model underscores the value of bridging theoretical knowledge with real-world practice.

Ready to gain real-world business expertise? Apply now and take your first step toward entrepreneurial success!