The BAT-ITC Tussle


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Case Details:

Case Code : BECG012
Case Length : 11 Pages
Period : 1996-2002
Pub. Date : 2002
Teaching Note : Available
Organization : ITC BAT
Industry : Food, Beverages & Tobacco
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

The Warring Factions

Chugh had joined ITC as an engineer at the Munger factory. Having made rapid progress up the corporate ladder, he was given full responsibility for ITC's Bhadrachalam Paper project.

Not only was the project successfully commissioned, but Chugh also played a crucial role in lobbying with the Andhra Pradesh state government when it withdrew certain crucial concessions.

On the strength of his successful track record, Chugh was made the vice-chairman of ITC in 1989 and the Chairman in 1991...

The Mysterious End

The charges of financial irregularities were confirmed later on by an audit committee. The committee said that ITC was involved in certain questionable deals, which had led to a drop in profits of Rs 2.61 billion for 1995-96. However, the committee cleared Chugh of all charges. A few days later in September 1996, Chugh summoned a press conference and to the surprise of everyone, announced his decision to step down from his post by December 1996...

Exhibits

Exhibit I: ITC: A Chronology of Events

Exhibit II: ITC Shareholding Pattern

Exhibit III: Income & Expenditure Statements

Exhibit IV: ITC - Segment Wise Sales

Exhibit V: ITC - The Board Structure

Exhibit VI: A Profile of BAT

Exhibit VII: Corporate Governance at ITC


 

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