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  Business Standard                                                                         November 15, 2002

  ITC diversifies into match business

 

Kausik Datta & Pradeep Gooptu

ITC, the tobacco-to-hotels major, has diversified into the match business in a bid to earn more revenues from non-tobacco businesses. The company is marketing the new product through its nearly four-million strong marketing and distribution network.

Retail trade sources said ITC has challenged the marketing basics in the match industry by selling a 75 paise matchbox with larger sticks against the normal 50-60 paise boxes which have smaller sticks.

ITC is producing the product from small units and marketing them through its network. Matches are mostly produced at Sivakasi and Kovilpatti in Tamil Nadu. The packaging design and specifications are supplied by ITC to small units which manufacture the product, according to the order.

Further, ITC match-boxes have been specially designed and colour-printed with a food recipe with each box as well.

The design and recipe package also clearly indicates the intended buyer is not just the smoker, thus far the focus of most campaigns, but targeted equally at the lady in the kitchen and the budding cook. The recipes imply that they come with the stamp of branded kitchens of ITC’s hotels and hospitality business, though it is not mentioned as such.

The Rs 10,000 crore company is offering recipes of different cuisine, especially Indian delicacies. The recipes are neatly printed on a special sticker which forms the back of the drawer that holds the matches. The normal box carries specially- designed front and safety tips at the back. All this comes free with the safety match. More accurately, recipes of different Indian dishes are available on the back.

 
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