ITC is one of India’s most diversified companies. A customer may encounter the company while buying Aashirvaad atta, Sunfeast biscuits, Bingo! snacks, Classmate notebooks, Fiama personal-care products or Mangaldeep incense sticks. ITC also operates major businesses in cigarettes, agriculture, paperboards, packaging and information technology.
The company’s business model connects several of these activities. Its agricultural network sources crops and other raw materials, its paper and packaging divisions support product manufacturing, and its distribution network places consumer goods in stores across India.
This diversified structure allows ITC to earn from high-margin tobacco products while investing in branded foods, personal care, stationery, agriculture and other future-facing businesses.
ITC Company Quick Overview
| Particular | Details |
| Company name | ITC Limited |
| Established | 1910 |
| Headquarters | Kolkata, West Bengal |
| Chairman and Managing Director | Sanjiv Puri |
| Industry | Diversified consumer goods and industrial businesses |
| Core business model | Manufacturing, brand ownership, distribution and exports |
| Main business segments | FMCG, agri-business, paperboards, paper and packaging |
| Technology subsidiary | ITC Infotech India Limited |
| Major brands | Aashirvaad, Sunfeast, Bingo!, YiPPee!, Classmate, Fiama and Savlon |
| FY2026 gross revenue | ₹80,867 crore |
| FY2026 EBITDA | ₹25,208 crore |
| FY2026 PBT before exceptional items | ₹26,951 crore |
| Hotels position | ITC Hotels is now a separately listed associate company |
ITC reported gross revenue of ₹80,867 crore and EBITDA of ₹25,208 crore for FY2025–26. The company’s present operating portfolio covers FMCG, agriculture, paperboards, packaging and information technology.
What Is the ITC Business Model?
ITC follows a diversified manufacturing and consumer-brand business model. It produces goods, develops brands and distributes products through traditional shops, supermarkets, e-commerce platforms, quick-commerce services and institutional channels.
The company also follows an integrated supply-chain strategy. Its agricultural business sources crops such as wheat, rice, spices, coffee and tobacco. Some of these materials are exported, while others are supplied to ITC’s own consumer businesses.
Its paperboards and packaging operations produce materials used by ITC and external companies. This reduces dependence on outside suppliers while creating a separate business-to-business revenue stream.
How Does ITC Make Money?
1. Cigarette Sales
Cigarettes remain one of ITC’s most profitable businesses. The company owns brands across different price categories, including Gold Flake, Classic, Navy Cut, American Club and Players.
ITC earns by manufacturing cigarettes and selling them through distributors, wholesalers and retailers. The amount collected from customers includes substantial government taxes, so the complete retail price does not become company revenue or profit.
Profitability depends on sales volume, product mix, tobacco costs, manufacturing efficiency and taxation. Premium cigarettes may provide better margins, while ITC also develops products for different regional and price-based customer groups.
In FY2026, ITC’s cigarette segment recorded an 8.2% increase in net segment revenue and a 5.1% rise in segment results. The business faced a major change in cigarette taxation from February 1, 2026.
2. Packaged Food Products
ITC earns significant revenue from packaged foods sold under brands such as Aashirvaad, Sunfeast, Bingo!, YiPPee!, B Natural, ITC Master Chef, Farmland, Sunrise and 24 Mantra Organic.
The company purchases ingredients, manufactures or outsources products, packages them and sells them to distributors and retailers. Revenue is generated each time a customer purchases atta, biscuits, noodles, snacks, spices, dairy products, frozen foods or beverages.
ITC keeps the difference between the selling price and the combined cost of raw materials, manufacturing, packaging, transportation, retailer margins and marketing.
Its packaged-food portfolio allows the company to serve several price points and eating occasions. A customer may buy basic staples for everyday cooking and premium biscuits, snacks or frozen food for convenience.
3. Personal Care and Home-Care Products
ITC sells soaps, shower gels, perfumes, deodorants, handwash, disinfectants and home-care products through brands such as Fiama, Vivel, Engage, Savlon and Nimyle.
These products can provide attractive margins when the company builds a strong brand and customers are willing to pay more than the manufacturing cost.
However, personal-care businesses require heavy advertising and continuous product development. ITC spends on packaging, celebrity campaigns, digital marketing, retailer visibility and promotional offers to compete with established consumer-goods companies.
4. Stationery, Incense Sticks and Safety Matches
ITC earns from notebooks and stationery through Classmate and Paperkraft. It also sells incense products under Mangaldeep and safety matches under brands such as Homelites.
The stationery business earns from students, educational institutions, offices and professionals. Product prices depend on paper quality, design, page count and format.
Mangaldeep earns through the sale of incense sticks, dhoop, sambrani and related fragrance products. These categories give ITC access to everyday household purchases beyond food and personal care.
ITC’s FMCG-Others segment, which includes these businesses along with packaged foods and personal care, achieved 10.1% revenue growth in FY2026.
5. Agri-Business and Exports
ITC’s agri-business buys, processes and sells agricultural commodities such as wheat, rice, coffee, spices, soya and leaf tobacco.
The company earns by selling these commodities to domestic buyers, international customers and its own consumer-product divisions. It can generate a margin between the sourcing cost and the final selling price after accounting for processing, storage and transportation.
ITC’s sourcing relationships also support products such as Aashirvaad atta and Sunrise spices. Direct procurement can improve quality control and reduce unnecessary intermediaries.
The company has also started exporting nicotine and nicotine-derivative products from a specialised facility in Mysuru. Agri-business revenue increased by around 3% in FY2026 despite geopolitical and export-related disruptions.
6. Paperboards and Specialty Papers
ITC manufactures paperboards and specialty papers used in packaging, printing, food service, pharmaceuticals and other industries.
Customers pay according to the type, quantity and technical qualities of the material. Specialised products may earn better margins than ordinary paper because they are designed for particular industrial requirements.
The division benefits from ITC’s experience in plantations, pulp processing and large-scale manufacturing. However, its earnings can be affected by wood prices, energy costs, demand and lower-priced imports.
7. Packaging and Printing Services
ITC provides packaging solutions to companies in industries such as food, beverages, personal care, tobacco and consumer goods.
It produces cartons, flexible packaging and other printed materials. Revenue comes from contracts based on design, materials, printing complexity and order volume.
Packaging also creates an internal advantage. ITC can use its design and manufacturing knowledge to develop distinctive packages for its own brands while selling similar expertise to outside customers.
8. Information Technology Services
ITC earns technology revenue through ITC Infotech, one of its major subsidiaries. The company provides technology consulting, software development, cloud services, data solutions, engineering services and digital transformation support.
Business customers usually pay under project-based, time-based or long-term managed-service contracts. ITC Infotech serves clients in India and international markets.
This business is different from manufacturing because its main resources are skilled employees, software platforms and specialised knowledge rather than physical products.
9. FoodTech and Other Operations
ITC also operates food-delivery and food-service initiatives under its FoodTech business. These ventures allow it to use its culinary knowledge, brands and supply-chain capabilities in newer formats.
A smaller “Others” segment includes FoodTech and ITC Grand Central in Mumbai. The hotel is managed by ITC Hotels Limited, even though it was excluded from the main hotel-business transfer.
What Happened to ITC’s Hotels Business?
ITC’s hotels business was demerged into ITC Hotels Limited with effect from January 1, 2025. ITC Hotels now operates as a separately listed company rather than as a regular operating segment of ITC Limited.
ITC Limited retained an interest of approximately 40% in the hotel company, while the remaining shares were issued directly to ITC shareholders under the demerger arrangement. ITC can therefore benefit from the value and results of its investment, but hotel room and restaurant revenue is primarily recorded by ITC Hotels Limited.
Major Costs in the ITC Business Model
ITC’s major costs include agricultural commodities, tobacco, edible oils, wheat, milk, paper, wood, packaging materials and energy. It also spends heavily on employees, factories, transportation, advertising and product distribution.
FMCG products require regular investment in brand building and retailer promotions. Paper and packaging operations need expensive machinery, plantations and energy. Export businesses are affected by freight rates, currency movements and international trade restrictions.
Taxes are particularly significant in the cigarette business. Changes in tax rates can influence prices, legal sales volumes and competition from illicit products.
Why the ITC Business Model Works
ITC’s greatest advantage is the connection between its businesses. Agricultural sourcing supports branded foods, while paperboards and packaging support consumer products. Its large distribution network can introduce new brands across several markets.
Cigarettes generate substantial cash and profit, while FMCG products create opportunities for long-term growth. Agriculture, packaging and technology provide additional income and reduce dependence on one category.
In FY2026, ITC’s gross revenue increased by 10.1%, while EBITDA grew by 4.9%.
Challenges Facing ITC
ITC faces strict regulations and high taxation in the tobacco business. A sharp increase in taxes can reduce legal demand and encourage illicit cigarette sales.
Its FMCG businesses compete with major Indian and international brands. Building market share requires advertising, discounts and regular product launches, which can limit profit margins.
The agricultural and paper businesses are exposed to weather, commodity prices, export restrictions and low-priced imports. ITC must also manage the complexity of operating several very different businesses under one group.
Conclusion
ITC makes money through cigarette sales, branded consumer products, agricultural trading, paperboards, packaging and information technology services. Its consumer portfolio covers foods, personal care, stationery, incense sticks and household products.
The company’s integrated structure allows one business to support another. Agriculture supplies raw materials, packaging protects and promotes products, and ITC’s distribution network takes them to customers. Its future growth will depend on expanding the non-cigarette FMCG portfolio while managing taxation, commodity costs, competition and regulatory risks.
FAQs
Q. Does ITC still make money directly from ITC Hotels?
ITC Hotels is now a separately listed company. ITC Limited holds an investment of approximately 40%, but most hotel operating revenue is recorded by ITC Hotels rather than ITC Limited.
Q. Is e-Choupal a paid service for farmers?
e-Choupal is mainly a sourcing and farmer-engagement network rather than a normal paid consumer service. It helps ITC connect with agricultural communities, share information and improve procurement efficiency.
Q. Why does ITC operate both agriculture and packaged-food businesses?
The agricultural business provides sourcing knowledge and access to raw materials. This can support quality, traceability and supply reliability for brands such as Aashirvaad and Sunrise.
Q. Does ITC manufacture every product it sells?
Not necessarily. ITC operates its own manufacturing facilities but may also work with approved third-party manufacturers and suppliers. The arrangement differs by product and location.
Q. Is cigarette revenue ITC’s only important source of profit?
No. Cigarettes remain a major profit contributor, but ITC also earns from packaged foods, personal care, agriculture, paperboards, packaging and technology services.
