Technical Analysis Project of PGPM Mohit

A Project Report on
Technical Analysis
(Stock Market FMCG Sector)
{December- 2009}
Submitted By: -
Amit kumar (Roll No. C-164)

&
Mohit M. Bhendarkar (Roll No. C- 225)
Under the Guidance of :

Prof. Mrs. Rajlaxmi
Institute of Business Management & Research

8/182, Sunrise Park, Near ASIA School, Driven In Road, Ahmedabad - 380054.
Ph. : 079-26858717 / 40052917
Email : Ahmedabad@ibmrindia.org website : www.ibmrindia.org
INDEX
Particular Page No.

1. Preface 3
2. Acknowledgement 4
3. Executive Summary 5
4. Chapter 1 6
 Introduction 6
 Overview of Technical Analysis 8
 Benefits & Drawbacks 10
 History of Technical Analysis 11
 FMCG Sector 19
 Types of Charts 20
5. Chapter 2 25
 Dabur India 25
 P&G 34
 Nestle 45
 ITC 54
6. Chapter 3 71
 Dabur India (B/s & Profit Growth 71
Chart)
 P&G (B/s & Profit Growth Chart) 76
 Nestle (B/s & Profit Growth Chart) 81
 ITC (B/s & Profit Growth Chart) 86
7. Chapter 4 92
Conclusion 92
8. Bibliography 93
2
Preface
The Project offered by the IBMR College, is an enlightening course for those who
are wishing to master their Business administration skills, with their knowledge. This is an
unique course which is the collaboration of PGPM. It not only develops your management
talent but also develop your technical skill. It imparts the necessary theoretical knowledge
about the field but also provides an opportunity to practically experience the application of
the business administration fundamentals in the corporate as well as the non-corporate sector.
I was unaware about the role of exchanges and depositories in the secondary
market. Here I really got practical knowledge about the role of SEBI, NSE, and BSE etc. in
the secondary market. Now I am aware about the buying and selling system in the secondary
market through broking firm or sub-broker. I am very much thankful to Prof. Mrs. Rajlaxmi.
I therefore have pleasure to present my project study report, which, I hope as per
the curriculum requirements.
Date: 10th Dec 2009 Amitkumar (C-164)

Place: Ahmedabad Mohit M. Bhendarkar (C-225)
3
Acknowledgement
Study of business management is all about gaining knowledge from the practical
life examples. In partial fulfillment of my second year, I have prepared project on the
topic “Technical analysis on FMCG Sector”.
I am thankful to my project guide Prof. Mrs. Rajlaxmi who provided me guidance

and deep insights through out the preparation of my project.
I also express my sincere thanks to our guide Mr. Sachin Bhavsar (Advisory Head
of Angel Broking Ltd, Ahmedabad) and all professors of IBMR for helping me in project
preparation.
Finally, not to miss anyone, I thank all the people who have directly or indirectly
helped me a lot throughout my project preparation.
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Executive Summary
The main plot for my project is to study Technical Analysis, how it works and to
find out different kind of indicators and to test the superiority of trading strategies based
on Technical Analysis.
Chapter 1 contains some basic information/introduction on Technical Analysis.

i.e. what exactly Technical Analysis is and how does it differ from Fundamental
Analysis.
Chapter 2 contains information about the FMCG sector on which we done our
technical analysis we given the full information about the companies that is there Board
of Dirctor there vision & Mision. Our Companies are Nestle, Dabur India, P&G and ITC
Chapter 3 is built around the charts, the heart of the Technical Analysis. The
initial part is packed with chart properties and information regarding different types of
charts. Finally, description of different chart pattern which are used for analysis.
Chapter 4 epitomize the chart pattern analysis of all the 4 companies we have
inferred by studying the charts and try to identifying the future trend and give the
conclusion for the same.
Technical Analysis is not made up of only Indicators and oscillators; it has

candlestick which is one type of a chart but at the same time mostly use for interpretation
and very helpful in finding out the pattern.
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Chapter 1
Introduction
The methods used to analyze securities and make investment decisions fall into
two very broad categories
1. Fundamental analysis
2. Technical analysis.
Fundamental analysis involves analyzing the characteristics of a company in order

to estimate its value. Technical analysis takes a completely different approach; it doesn't
care one bit about the "value" of a company or a commodity. Technicians (sometimes
called chartists) are only interested in the price movements in the market. Despite all the
fancy and exotic tools it employs, technical analysis really just studies supply and
demand in a market in an attempt to determine what direction, or trend, will continue in
the future. In other words, technical analysis attempts to understand the emotions in the
market by studying the market itself, as opposed to its components. If you understand the
benefits and limitations of technical analysis, it can give you a new set of tools or skills
that will enable you to be a better trader or investor.
What is Technical Analysis?

Technical Analysis is the forecasting of future financial price movements based
on an examination of past price movements. Like weather forecasting, technical analysis
does not result in absolute predictions about the future. Instead, technical analysis can
help investors anticipate what is "likely" to happen to prices over time.
Technical analysis uses a wide variety of charts that show price over time.
Technical analysis is all about studying stock price graphs and a few momentum
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oscillators derived thereof. It must be understood that technical studies are based entirely
on prices and do not include balance sheets, P&L accounts (fundamental analysis), the
assumption being that the markets are efficient and all possible price sensitive
information is built into the price graph of a security / index.
Therefore, technical analysis supports the efficient market theory as against the
"random walk theory" which supports the belief that stocks can be bought / sold on
random events like flipping a coin!!! Technical analysis is more dynamic as compared to
fundamental analysis based on one simple argument - fundamental analysts depend on
corporate events like quarterly results and special announcements like earnings guidance
and policy changes in operations to generate a buy / sell recommendation.
If fundamental analysis was the single most reliable indicator of trends, prices
would predominantly fluctuate only 4 - 5 times a year - around quarterly results and
special announcements like mergers and acquisitions etc!! Why would prices fluctuate
almost daily? If the prices fluctuate ever so often, is there a way to forecast them? Yes
according to technical analysis!!
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Overview of Technical Analysis
Technical analysis involves the study of past market data related to price and
volume with the purpose of forecasting future price movements. Technical analysis does
not help in making absolute predictions. Rather it helps in projecting the “likely" price
movement over time.
Technical analysis is applicable to commodities, stocks, futures, foreign exchange

(forex), indices or any tradable instrument, the price of which is influenced by supply and
demand trends. It is used by day traders and short-term investors participating in
investment markets, such as the stock market and the foreign exchange (forex) market.
This type of analysis is also very useful for hedgers.
While fundamental analysis helps you decide what companies you may want to
invest in - based on the company's management, products and services, financial records,
and other information - it won't always help you figure out when to buy, sell or hold.
There will be times when the stock of a solid company falters and times when a riskier
company performs well. As a result, although fundamental analysis is important, it's not
always sufficient to make investment decisions. Technical analysis, the study of price
movements and trends, can help you figure out when to enter and exit the market.
Technical analysis, which gained momentum in the late 1800s as Dow Theory, is
one of the oldest techniques used to make market decisions. Based on the ideas of
Charles Dow, technical analysts use a variety of technical indicators, or series of data
points plotted on a price chart that has been formed using price or price and volume
statistics for a particular security over a particular time period. The goal is to spot market
trends and manage risks associated with price movements.
While some indicators use complex formulas and others are simpler, all of them
seek to establish visual patterns that make sometimes confusing price data easier to
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understand and interpret. Indicators can be applied to stock, indexes, futures contracts
and any other tradable instruments whose prices move in response to supply and demand.
While each indicator depicts patterns made by the price movements of securities,
studying just one may not give you a complete picture of the direction the price is likely
to head.
For example, an indicator may make false signals, called whipsaws, where prices
move in one direction and quickly revert to an original trajectory. Examining more than
one study makes it easier to spot true signals
How is Technical Analysis Done?
Technical analysis is based on the premise that price discounts every aspect and
information in the market. Technical analysis is also based on the belief that price
movements are never completely arbitrary and follow a trend. A technical analyst
believes that it is possible to identify an ongoing trend, trade based on the trend and
generate profits as the trend unfolds.
The methods used for technical analysis are:
1. Moving averages: This method is used to identify various support and resistance
levels for the short and long term. The most commonly used moving averages are the
30-day moving average (DMAs) and 200-day moving average (DMAs).
2. Charts and patterns: Extensive charts are made based on historical data on price
movements. These charts are used to identify patterns and shapes, such as double top,
double bottom, head and shoulders and triple bottom.
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Benefits of Technical Analysis
The benefits of technical analysis are:
1. Helps to identify a trend, allowing investors to make predictions on future trends.

2. Allows investors to judge the direction of the current trend and enables them to
gauge the best time to take a position in the market.
3. When it is used in conjunction with fundamental analysis and company and industry
related news, it minimizes the chances of an investor incurring losses.
Drawbacks of Technical Analysis
The drawbacks of technical analysis are:
1. It draws heavily on a person’s opinion or interpretation.

2. It is more a study of probabilities than of actual value.
3. Useful only for short-term investments.
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History of Technical Analysis
The history of technical analysis begins with Dow Theory. The Dow theory was
developed by Charles Dow through a series of editorials which he wrote in Wall Street
Journal of which he was an editor and part owner until 1902. Though Dow Theory is
the brain child of Charles Dow, he never wrote a book on it. It was S.A. Nelson and
William Hamilton who refined the theory into what it is today known as Dow Theory.
Further, William Hamilton further refined the theory by a series of articles in Wall
Street Journal between 1902 and 1929. He later wrote a book The Stock Market
Barometer. Later Robert Rhea read 252 articles written by Dow and Hamilton in Wall
Street Journal and further refined the theory in his book The Dow Theory.
There are various assumptions of Dow Theory. These assumptions form the
platform of analyzing the stocks. The assumptions of Dow Theory are as follows:
Manipulation
The first assumption is: The manipulation of the primary trend is not possible.
When large amounts of money are at stake, the temptation to manipulate is bound to be
present. Hamilton did not argue against the possibility that speculators, specialists or
anyone else involved in the markets could manipulate the prices. He qualified his
assumption by asserting that it was not possible to manipulate the primary trend.
Intraday, day-to-day and possibly even secondary movements could be prone to
manipulation. These short movements, from a few hours to a few weeks, could be subject
to manipulation by large institutions, speculators, breaking news or rumors. Today,
Hamilton would likely add message boards and day-traders to this list.
Hamilton went on to say that individual shares could be manipulated. Examples of

manipulation usually end the same way: the security runs up and then falls back and
continues the primary trend. Hamilton also pointed out that even if individual shares were
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being manipulated, it would be virtually impossible to manipulate the market as a whole.
The market was simply too big for this to occur.
Averages Discount Everything
The market reflects all available information. Everything there is to know is

already reflected in the markets through the price. Prices represent the sum total of all the
hopes, fears and expectations of all participants. Interest rate movements, earnings
expectations, revenue projections, presidential elections, product initiatives and all else
are already priced into the market. The unexpected will occur, but usually this will affect
the short-term trend. The primary trend will remain unaffected. The downtrend for Coca-
Cola began with the sharp fall from above 90. The stock rallied with the market in
October and November 1998, but by December started to decline again. According to
Dow theory, the October/November rally would be called a secondary move (against the
primary trend). It is likely that the stock was caught up in the general market advance at
the time. However, when the major indices were hitting new highs in December, Coca-
Cola was starting to flounder and resume its primary trend.
Hamilton noted that sometimes the market would react negatively to good news.
For Hamilton, the reasoning was simple: the market looks ahead. By the time the news
hits the street, it is already reflected in the price. This explains the old Wall Street axiom,
"buy the rumor, sell the news". As the rumor begins to filter down, buyers step in and bid
the price up. By the time the news hits, the price has been bid up to fully reflect the news.
Technical Analysis a Pseudo Science:
Many academicians call technical analysis a pseudo science. They say there is no
perfection in the theory of Charles Dow. Hamilton and Dow also readily admit that the
Dow theory is not a sure-fire means of beating the market. It is looked upon as a set of
guidelines and principles to assist investors and traders with their own study of the
market. The Dow theory provides a mechanism for investors to use that will help remove
some of the emotion. Hamilton warns that investors should not be influenced by their
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own wishes. When analyzing the market, make sure you are objective and see what is
there, not what you want to see. If an investor is long, he or she may want to see only the
bullish signs and ignore any bearish signals. Conversely, if an investor is out of the
market or short, he or she may be apt to focus on the negative aspects of the price action
and ignore any bullish developments. Dow theory provides a mechanism to help make
decisions less ambiguous. The methods for identifying the primary trend are clear-cut and
not open to interpretation.
Even though the theory is not meant for short-term trading, it can still add value
for traders. No matter what your time frame, it always helps to be able to identify the
primary trend. According to Hamilton (writing in the early part of the 20th century),
those who successfully applied the Dow theory rarely traded more than four or five times
a year. Remember that intraday, day-to-day and possibly even secondary movements can
be prone to manipulation, but the primary trend is immune from manipulation. Hamilton
and Dow sought a means to filter out the noise associated with daily fluctuations. They
were not worried about a couple of points, or getting the exact top or bottom. Their main
concern was catching the large moves. Both Hamilton and Dow recommended close
study of the markets on a daily basis, but they also sought to minimize the effects of
random movements and concentrate on the primary trend. It is easy to get caught up in
the madness of the moment and forget the primary trend.
Market Movements
The Dow Theory identifies the following market movements.
Primary Movement
Primary movements represent the broad underlying trend of the market and can last from
a few months to many years. These movements are typically referred to as bull and bear
markets. Once the primary trend has been identified, it will remain in effect until proved
otherwise. Hamilton believed that the length and the duration of the trend were largely
indeterminable. Hamilton did study the averages and came up with some general
guidelines for length and duration, but warned against attempting to apply these as rules
for forecasting.
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Many traders and investors get hung up on price and time targets. The reality of
the situation is that nobody knows where and when the primary trend will end. The
objective of Dow theory is to utilize what we do know, not to haphazardly guess about
what we don't know. Through a set of guidelines, Dow theory enables investors to
identify the primary trend and invest accordingly. Trying to predict the length and the
duration of the trend is an exercise in futility. Hamilton and Dow were mainly interested
in catching the big moves of the primary trend. Success, according to Hamilton and Dow,
is measured by the ability to identify the primary trend and stay with it.
Secondary Movements
Secondary movements run counter to the primary trend and are reactionary in
nature. In a bull market a secondary move is considered a correction. In a bear market,
secondary moves are sometimes called reaction rallies. Hamilton noted some
characteristics that were common to many secondary moves in both bull and bear
markets. These characteristics should not be construed as rules, but rather as loose
guidelines to be used in conjunction with other analysis techniques. The first three
characteristics have been applied to the example above.
Based on historical observation, Hamilton estimated that secondary movements

retrace 1/3 to 2/3 of the primary move, with 50% being the typical amount.
Hamilton also noted that secondary moves tend to be faster and sharper than the
preceding primary move.
At the end of the secondary move, there is usually a dull period just before the
turnaround. Little price movement, a decline in volume, or a combination of the two can
mark this dullness.
Lows are sometimes accompanied by a high-volume washout day.
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Hamilton characterized secondary moves as a necessary phenomenon to combat
excessive speculation. Corrections and counter moves kept speculators in check and
added a healthy dose of guesswork to market movements. Because of their complexity
and deceptive nature, secondary movements require extra careful study and analysis.
Investors often mistake a secondary move for the beginning of a new primary trend. How
far does a secondary move have to go before the primary trend is affected? To answer
this question it is necessary to understand the following stages of market.
For stocks. A primary bear market is defined as a long sustained decline marked
by deteriorating business conditions and subsequent decrease in demand for stocks. In
both primary bull markets and primary bear markets, there will be secondary movements
that run counter to the major trend.
Elow is a chart of the Dow Jones Transportation Average in 1992. Even though
Hamilton and Dow did not make specific references to trend lines, a line has been drawn
to emphasize the downward trajectory of the trend. Since the peak in February, a series of
lower lows and lower highs formed to make a downtrend. There was a secondary rally in
April and May (green circle), but the March high was not surpassed.
Dow Theory is a heterodox theory on stock price movements that includes what
is now called technical analysis as well as some portion of sector rotation. The theory was
derived from 255 Wall Street Journal editorials written by Charles H. Dow (1851–1902),
journalist, founder and first editor of the Wall Street Journal and co-founder of Dow
Jones and Company. Following Dow's death, William Peter Hamilton, Robert Rhea and
E. George Schaefer organized and collectively represented "Dow Theory," based on
Dow's editorials. Dow himself never used the term "Dow Theory," nor presented it as a
trading system.
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The six basic tenets of Dow Theory as summarized by Hamilton, Rhea, and
Schaefer are described below.
Six basic tenets of Dow Theory
1. The market has three movements
(1) The "main movement", primary movement or major trend may last
from less than a year to several years. It can be bullish or bearish. (2) The
"medium swing", secondary reaction or intermediate reaction may last from ten
days to three months and generally retraces from 33% to 66% of the primary price
change since the previous medium swing or start of the main movement. (3) The
"short swing" or minor movement varies with opinion from hours to a month or
more. The three movements may be simultaneous, for instance, a daily minor
movement in a bearish secondary reaction in a bullish primary movement.
2. Market trends have three phases
Dow Theory asserts that major market trends are composed of three
phases: an accumulation phase, a public participation phase, and a distribution
phase. The accumulation phase (phase 1) is a period when investors "in the know"
are actively buying (selling) stock against the general opinion of the market.
During this phase, the stock price does not change much because these investors
are in the minority absorbing (releasing) stock that the market at large is
supplying (demanding). Eventually, the market catches on to these astute
investors and a rapid price change occurs (phase 2). This occurs when trend
followers and other technically oriented investors participate. This phase
continues until rampant speculation occurs. At this point, the astute investors
begin to distribute their holdings to the market (phase 3).
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3. The stock market discounts all news
Stock prices quickly incorporate new information as soon as it becomes

available. Once news is released, stock prices will change to reflect this new
information. On this point, Dow Theory agrees with one of the premises of the
efficient market hypothesis.
4. Stock market averages must confirm each other
In Dow's time, the US was a growing industrial power. The US had

population centers but factories were scattered throughout the country. Factories
had to ship their goods to market, usually by rail. Dow's first stock averages were
an index of industrial (manufacturing) companies and rail companies. To Dow, a
bull market in industrials could not occur unless the railway average rallied as
well, usually first. According to this logic, if manufacturers' profits are rising, it
follows that they are producing more. If they produce more, then they have to ship
more goods to consumers. Hence, if an investor is looking for signs of health in
manufacturers, he or she should look at the performance of the companies that
ship the output of them to market, the railroads. The two averages should be
moving in the same direction. When the performance of averages diverge, it is a
warning that change is in the air.
Both Barron's Magazine and the Wall Street Journal still publish the daily
performance of the Dow Jones Transportation Index in chart form. The index
contains major railroads, shipping companies, and air freight carriers in the US.
5. Trends are confirmed by volume
Dow believed that volume confirmed price trends. When prices move on
low volume, there could be many different explanations why. An overly
aggressive seller could be present for example. But when price movements are
accompanied by high volume, Dow believed this represented the "true" market
view. If many participants are active in a particular security, and the price moves
17
significantly in one direction, Dow maintained that this was the direction in which
the market anticipated continued movement. To him, it was a signal that a trend is
developing.
6. Trends exist until definitive signals prove that they have ended
Dow believed that trends existed despite "market noise". Markets might
temporarily move in the direction opposite to the trend, but they will soon resume
the prior move. The trend should be given the benefit of the doubt during these
reversals. Determining whether a reversal is the start of a new trend or a
temporary movement in the current trend is not easy. Dow Theorists often
disagree in this determination. Technical analysis tools attempt to clarify this but
they can be interpreted differently by different investors.
Analysis
There is little academic support for the profitability of the Dow Theory. Alfred
Cowles in a study in Econometrica in 1934 showed that trading based upon the editorial
advice would have resulted in earning less than a buy-and-hold strategy using a well
diversified portfolio. Cowles concluded that a buy-and-hold strategy produced 15.5%
annualized returns from 1902-1929 while the Dow Theory strategy produced annualized
returns of 12%. After numerous studies supported Cowles over the following years, many
academics stopped studying Dow Theory believing Cowles's results were conclusive.
In recent years however, Cowles' conclusions have been revisited. William

Goetzmann, Stephen Brown, and Alok Kumar believe that Cowles' study was incomplete
[1] and that Dow Theory produces excess risk-adjusted returns.[1] Specifically, the return
of a buy-and-hold strategy was higher than that of a Dow Theory portfolio by 2%, but the
riskiness and volatility of the Dow Theory portfolio was lower, so that the Dow Theory
portfolio produced higher risk-adjusted returns according to their study.
Many technical analysts consider Dow Theory's definition of a trend and its
insistence on studying price action as the main premises of modern technical analysis.
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FMCG (Fast Moving Consumer Goods) Sector
The Indian FMCG sector is the fourth largest sector in the economy with a total
market size in excess of US$ 13.1 billion. It has a strong MNC presence and is
characterised by a well established distribution network, intense competition between the
organised and unorganised segments and low operational cost. Availability of key raw
materials, cheaper labour costs and presence across the entire value chain gives India a
competitive advantage. The FMCG market is set to treble from US$ 11.6 billion in 2003
to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most
product categories like jams, toothpaste, skincare, hair wash etc in India is low indicating
the untapped market potential. Burgeoning Indian population, particularly the middle
class and the rural segments, presents an opportunity to makers of branded products to
convert consumers to branded products. Growth is also likely to come from consumer
'upgrading' in the matured product categories. With 200 million people expected to shift
to processed and packaged food by 2010, India needs around US $ 28 billion of
investment in the food-processing industry.
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Types of Charts
In technical analysis various types of charts are used. For any investor or person
who is involved in the stock market it becomes very important to know what will happen
to prices of stocks tomorrow. Technical Analysis is one of the ways to forecast future
price movements. Use of historical price charts forms the premise of Technical Analysis.
There are a number of indicators which have been developed over a period of time to
determine the future price movements of stocks. Each indicator has got its own
interpretation, strengths and weaknesses. Therefore, as said earlier different indicators
should be used in conjunction with each other to determine the strength or weakness of a
trend and the possible future price movement.
A price chart is a sequence of prices plotted over a specific time frame. Technical
analysis is based on charts. Therefore sometimes technical Analysts are called Chartists.
On the chart, the y-axis (vertical axis) represents the price scale and the x-axis (horizontal
axis) represents the time scale. Prices are plotted from left to right across the x-axis with
the most recent plot being the furthest right. A graphical historical record makes it easy to
spot the effect of key events on a security's price, its performance over a period of time
and whether it's trading near its highs, near its lows, or in between. 90
There are basically three types of charts which are as follows:
1. Line Charts
2. Bar Charts
3. Candle Stick Chart
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1. Line Charts:
A line Chart is the simplest type of chart. Line Chart is drawn by plotting the
closing price of the stock on a given day and connecting them to make charts. They are
widely used charts. The price is marked on the Y-axis and the period of time on the X-
axis. Line chart’s strength comes from its simplicity.
The most basic of the four charts is the line chart because it represents only the
closing prices over a set period of time. The line is formed by connecting the closing
prices over the time frame. Line charts do not provide visual information of the trading
range for the individual points such as the high, low and opening prices. However, the
closing price is often considered to be the most important price in stock data compared to
the high and low for the day and this is why it is the only value used in line charts.
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2. Bar Charts
A bar chart displays any security’s open, low, high and closing prices. The bar
chart expands on the line chart by adding several more key pieces of information to each
data point. The chart is made up of a series of vertical lines that represent each data point.
This vertical line represents the high and low for the trading period, along with the
closing price. The close and open are represented on the vertical line by a horizontal
dash. The opening price on a bar chart is illustrated by the dash that is located on the left
side of the vertical bar. Conversely, the close is represented by the dash on the right.
Generally, if the left dash (open) is lower than the right dash (close) then the bar will be
shaded black, representing an up period for the stock, which means it has gained value. A
bar that is colored red signals that the stock has gone down in value over that period.
When this is the case, the dash on the right (close) is lower than the dash on the left
(open).
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3. Candle Stick Chart
The candlestick chart is similar to a bar chart, but it differs in the way that it is
visually constructed. Similar to the bar chart, the candlestick also has a thin vertical line
showing the period's trading range. The difference comes in the formation of a wide bar
on the vertical line, which illustrates the difference between the open and close. And, like
bar charts, candlesticks also rely heavily on the use of colors to explain what has
happened during the trading period. A major problem with the candlestick color
configuration, however, is that different sites use different standards; therefore, it is
important to understand the candlestick configuration used at the chart site you are
working with. There are two color constructs for days up and one for days that the price
falls. When the price of the stock is up and closes above the opening trade, the
candlestick will usually be white or clear. If the stock has traded down for the period,
then the candlestick will usually be red or black, depending on the site. If the stock's price
has closed above the previous day’s close but below the day's open, the candlestick will
be black or filled with the color that is used to indicate an up day. We will talk about
candlestick chart in detail later.
The stock investing basics of Japanese Candlesticks results in clear and easy way
to identify patterns that demonstrate highly accurate turns in investor sentiment. Whether
totally unfamiliar with investment concepts or very sophisticated in investment
experience, the Japanese Candlestick trading formations are easily utilized. A stock price
closing higher than where it opened will produce a white candle. A stock price closing
lower than where it opened creates a black candle. The boxes formed are called "the
body". The extremes of the daily price movement, represented by lines extending from
the body, are called "shadows or tails. A stock price closing where it opened or closing at
where it opened is called a doji. Memorizing the Japanese Candlesticks names and
descriptions of the candlestick trading formations is not necessary for successful trading.
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Many investors believe that candlestick charts are easy to read because of the
relationship between the open and the close. White (clear) candlesticks form when the
close is higher than the open and black (solid) candlesticks form when the close is lower
than the open. The white and black portion formed from the open and close is called the
body (white body or black body). The lines above and below are called shadows and
represent the high and low.
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Chapter 2
In the technical analysis of FMCG sector we have chosen four FMCG companies.
These are as follows.
1. Dabur India
2. P&G
3. Nestle
4. ITC
The profile of the above companies as follows.
1. Dabar India
1975
- The Company was incorporated on 16th September for manufacture of high grade
edible & industrial guargum powder and its sophisticated derivatives. It was
incorporated in the name of Vishal Chemical (India) Ltd.
1981
- On 19th September, the name was changed to Vidogum and Chemicals Ltd. The
capacity of the plant was 2700 tpa of modified and refined guargum powder and
derivatives such as oxidised guargum, carboxymethylated guargum, sydoxalkylated,
guargum and similar carbo hydrate modification. It was promoted by Dabur (S. K.
Burman) Pvt. Ltd. and founded in 1884 in Calcutta. The company manufacture herbal
and Ayurvedic medicines and cosmetics in India. The other products are Dabur Amla
Hair Oil, Badur Chavanprash, Pudin Hara etc.
- The company undertook to set up a unit at Matsya Industrial Estate, Alwar, Rajasthan
for manufacture of edible and industrial grade guargum powder and its derivatives.
25
1992
- A new range of coconut oil under the brand name Ànmol' was launched. The company
developed Dab 10, an intermediate for anti-cancer drug namely Taxol.
- The Company undertook to implement a phytopharma project at Ghaziabad U.P. This

unit would manufacture a specialised anti cancer drug Taxot apart from manufacture of
chemical intermediary for cancer drug and Terfenadine a non sedative anti allergic drug.
The installed capacity of Taxot, the intermediate drug and anti allergic drug would be `6
Kg, 40 Kgs. and 18 tonnes respectively.
- The company entered into a joint venture agreement with M/s. Guldenhorst BV
Netherland to form a company for manufacture and marketing of all types of bubble gum,
chewing gum, toffees,
chocolate and cocoa related products, sugar based spreading creams etc. The company
co-promoted Dabur Finance Ltd. to carry on the business of leasing, financing etc.
- 45,50,520 shares allotted. Pursuant to a scheme of amalgamation of Dabur with

Vidogum.
1994
- New products launched were `Dentacare,' Vatika and Lactonic which were well
received in the market.
- An integrated facility was designed at Alwar for manufacture of Ayurvedic Veterinary

range at Alwar, a joint venture in technical collaboration with Shikobo Ltd., Japan to
extend the range of natural gum products into speciality products.
- The company also undertook to set up a project in Himachal Pradesh for manufacture
of Hajmola, honey, Gulabari, Pudin Hara, Lavan Bhaskar Churna and soft gel capsules,
part of the existing range of products.
26
- At its Sahibabad plant, the company undertook to install various balancing
equipments, mechanise operations, hitherto performed manually, instal reverse Osmosis
plant, a concentration plant for extraction of herbs, barks, roots, seed etc.
- The company also undertook to upgrade amla pulping section, expand storage space for
ayurvedic raw materials and to meet the cost of the installation of two additional DG sets.
- The Company floated two companies a manufacturing unit in Egypt in the name of
Dabur Egypt Ltd. and Dadur International Ltd. in BVI. The company entered into a joint
venture with Seprache International Ltd. in the name of Ìnnova' Inc. For manufacture of
anti cancer drug namely `Paclitaxel'.
- The company signed a MOU with Osein Internatinal Ltd. for manufacture of biscuits,
snack, foods & other products in India.
1995
- In addition to the existing products, the company exported products like an improved
version of Chyawanprash (with more honey and less pungency) liquid form of
Chyawanprash an aqueous based, hair vitalizer Melatonine etc.
- 182,02,080 bonus equity shares issued in prop. 4:1. During November 1993, the
company issued 57,00,000 equity shares of Rs 10 lakh at a prem. of Rs 85 per share of
which the following were reserved for allotment on a preferential basis: (1) 2,64,000
shares to employees of the company's shareholders of group cos. (all were taken up); (2)
5,27,000 shares to NRIs (all were taken); (3) 11,40,000 shares to Indian Fin. Insts. (only
8,38,400) shares taken up; (4) 5,40,000 shares to FIIs (all were taken up); (5) 6,00,000
shares to Indian Mutual Funds (all were taken up). Balance 26,29,000 shares along with
3,01,600 shares not taken up by FIIs, issued to public. Additional 56,530 equity shares
allotted.
27
1996
- The company launched Madhuvanni an anticough preparation.
- A unit was being set up at Baddi for manufacture of Chywanprash Janma Ghunti, Lal
Tail, Dashmularishta and Ashokarishta. Semi synthetic pacitaxel and Docetaxel and
various front line anti cancer drugs were being produced both for domestic as well as
export market. The company proposed to double the volume of the Katni plant and
introduce modern technology in processing Amla with high productivity and improved
quality.
- The company undertook to set up a joint venture in Bangrain of France in the names of
Dabon International Pvt. Ltd. Another joint venture viz. General de Confiteria Pvt. Ltd.
commenced commerical production in April 1995.
1997
- The Company set up a new manufacturing unit with a high degree of automation at
Baddi (H.P.), to produce company's well known brands viz. Chyawanprash, Janma
Ghunti, Ayurvedic oils and Asva-Arishtas. A modern air conditioned packing line was
commissioned at Sahibabad for homemade brands of ethnic pastes and line juices. - The
Dabur India Ltd has formed a joint venture with Osem of Israel for the production of food
product in India. The joint venture named as Excelcia Food Pvt Ltd will have the Rs.15
paid up capital in which Dabur will have 60 per cent stake while Osem will have the rest
40 per cent holding in the company.
- The company extended its range of real fruit juice by offering mixed fruit juice and
tomato juice. Its veterinary division launched `mastilep' for curing mastitis in cattle.
- Dabur India launched a range of extruded snack foods, ready-to-use cooking pastes and
sauces here on Thursday.
28
- Dabur India is negotiating with Antonio Puig of Spain, the maker of the Paco Rabanne
perfume range, and Kesling of France to set up joint ventures in the country as a part of
its strategy to establish a strong presence in the personal care sector.
- Dabur India Ltd, Great Eastern Shipping Company Ltd and Ranbaxy Laboratories Ltd.
have signed agreements with NSDL to get their securities admitted for dematerialisation
at NSDL.
- Dabur Industries Ltd has signed a tripartite agreement with the National Securities
Depository Ltd and MCS ltd for dematerialising Dabur shares, becoming the first MCG
company to avail of the facility.
- Dabur India Ltd is launching a new communication campaign this month to reposition
its oldest brand - `Pudinhara'.
1998
- Dabur India Ltd on 19th January 1998 launched low sodium cooking salt called
Nutrasalt in Chandigrah.
- Dabur signed a joint venture with Bongrain International SA of France to form a new
company called Dabon International Ltd
- Dabur India Ltd has launched a range of ayurvedic health care products for dogs under
the umbrella brand name Ayupet.
- Dabur India Ltd (DIL) has commissioned consultancy firm Noble and Hewitt to script
a employee stock option plan.
- Dabur India has tied up with Godrej Foods for the manufacture and packaging of its
`Real' range of fruit juices and fruit drinks in tetrapacks.
29
1999
- Dabur India Ltd has entered into an agreement with its Spanish partner Agrolimen to
offload its 49 per cent stake in the joint venture company General De Confiteria India Ltd
in favour of an Agrolimen group company.
- Dabur Pharmaceuticals Limited (DPL) has set up its first overseas arm in Britain with a
million investment commitment and is considering similar ventures in Russia as well as
South African countries.
2000
- The Company has taken Nestle SA to the Company Law Board (CLB) charging the
latter with arm-twisting it as a majority shareholder in their biscuit manufacturing joint
venture Excelcia Foods Ltd (EFL).
- FMCG major Dabur, along with US insurance company Allstate and Prudential-ICICI
joint venture have applied for life insurance license as the Insurance Regulatory and
Development Authority .
- The Company has divested its entire 40 per cent stake in the controversial joint venture
Excelcia Foods with Swiss major Nestle SA for a token amount of Rs 10.
- The Company sub-divide the fully paid-up equity shares of Rs. 10 each into 10 fully
paid-up equity shares of Re. 1 each.
- Three domestic pharma companies - Cadila Pharmaceuticals, Shantha Biotech and

Dabur India have signed an agreement with the department of biotechnology (DBT) for
developing and marketing basic molecules in leprosy, hepatitis and tumor disease
segments.
30
- Crisil reaffirmed the highest safety rating of `P1+' to the company's Rs 100-crore
commercial paper programme. Crisil has reaffirmed it's AA rating, indicating high
safety, assigned to the Rs 20 crore non-convertible debenture issue of the company.
- Dabur India Ltd., has launched Efarelle Comfort, a natural menstrual pain reliever.
- Dabur India's ayurvedic specialities division has launched plain isabgol husk under the
brand name Nature Care.
2001
- Dabur India Ltd. proposes to increase the number of directors on its board, by adding
three new directors. 2002
- Dabur India Ltd has informed that Mr. Ninu Khanna would now be continuing as CEO
& Director till the Date of the next Board Meeting scheduled to be held on January 22,
2002.
2002
- Dabur India Ltd has informed that Mr.Ninu Khanna has resigned as Chief Executive
Officer and Director of the Company and the resignation has been accepted.
- Dabur India Ltd has informed that the Compensation Committee has allotted 16660
fully paid equity shares of Re 1 each for cash at par to the employees of the Company.
- Dabur India Ltd has informed that the Board of Directors has approved the
restructuring of the Board. Mr A CBurman, Mr Sidharth Burman, Air Chief Marshal N C
Suri (Retd), Mr S M Datta, Mr Raja Vijay Karan.Mr Ashok Goenka have resigned from
the Directorship of the Company and the Board has accepted the same w e f April 1,
2002.Further, Mr V C Burman and Mr Pradip Burman have also resigned from the
Whole-time Directorship of the Company. Mr V C Burman and Mr Pradip Burman will,
however continue as Non-executive Directors of the Company.
31
-Pradip Burman appointed as Whole time Director of Dabur India.
-The Board of Directors of Dabur India Ltd has appointed Mr Sunil Duggal as Chief
Executive Officer of the company wef July 01, 2002.
2003
-The fourth Largest FMCG, Dabur India Ltd has tied with Free Markets Inc. for using
leading edge technologies to execute online markets for its procurement needs.
-CRISIL assigned CRISIL GVC LEVEL 2 rating for governance and value creation
practices of the company.
-Dabur has sued Pharmaceutical major Ranbaxy for telecasting the comparative
commercial of Pepfiz.
-Dabur India has inducted Mr. Siddharth Burman as the chairman and Mr. Sunil Duggal,
Mr. P. D. Narang and Mr. Charanjit Mohan as the directors of the 4-member board of
Dabur
India's global arm based in Dubai.
-The company acquired 10,00,000 ordinary fully paid shares of 1 Pound Sterling each of
Redrock Limited with this acquisition Redrock Limited has become a wholly owned
subsidiary of the company. Redrock Limited is engaged in the business of manufacture
and sale of various cosmetics, toiletries and health care products and operates from the
Jebel Ali Free Trade Zone in Dubai.
-Acquires equity in Shri Dhanwantry Educational Society

-Dabur forges alliance with Dhanwantry
-Dabur launch new Herbal pill for diabetics
32
2004
-Dabur set to acquire Egyptian hair oil brand Touch
-Dabur India gets Tetra Pak award
-Dabur India inks pact with Accenture for outsourcing
-Implements `Spend visibility solution' software provided by FreeMarkets Inc to control

costs and strengthen the company's procurement process
-Dabur ties up Uttarnachal for cancer drug
-Dabur India has acquired a Nigerian company African Consumer Care Ltd, a step
precursor to its plans to go on-shore for manufacturing in the country
-Dabur join hands with DLF for healthcare hub
2005
-Delists equity shares from The Calcutta Stock Exchange Association Ltd (CSE) with
effect from January 27, 2005,
- Completes the acquisition process of Balsara Hygiene Products Ltd & Besta Cosmetics
Ltd on April 16, 2005.
2006
-Dabur's Director P D Narang appoints as Chairman of PTL
33
2. P&G
1964
- The Company was Incorporated on 20th July at Mumbai. The company Was
promoted by Richardson-Marrell Inc., New York and its wholly owned subsidiary -
vicks Products Inc., India.
- 90 shares taken up by signatories to Memorandum of Association. 110 shares issued to

Richardson Merrell Inc., U.S.A.
1966
- 2,74,890 shares issued to Richardson-Merrel, USA which 99,910 shares reserved for
allotment to directors, employees, associates, etc.
The balance 1,25,000 shares offered for public subscription.
1968
- 2,00,000 bonus shares issued in prop. 2:5.
1973
1978
1980
1983
- 5,94,000 shares issued (prem. Rs 20 per shares, prop. 11:15) as rights to resident
Indian shareholders. 81,000 shares (prem. Rs 20 per share) allotted to employees and
business associates.
34
1984
1985
- In September, the Company's herbal plant for the manufacture of herbal and other
natural ingredient products at Annaram in Medak district of Andhra Pradesh was
commissioned. The Mentha Research centre located at Bilaspur in U.P. carrys out
research in the growing of mentha arvensis from which mint oil and menthol are
produced.
- In October, Procter & Gamble Co., acquired Richardson-Vicks Inc., and consequent to
this, Richardson Hindustan Ltd. (RHL), became an affiliate of Procter & Gamble Co. In
view of this, the name of the Company was changed to Procter & Gamble India Ltd.,
from Richardson Hindustan Ltd., with effect from 4th April, 1988.
- The Company proposed to change its name to Procter & Gamble Hygiene and Health
Care Ltd. to better reflect the nature and character of the business and in keeping with
company's objective of focussing on its core categories viz. Feminine Hygiene and
Health Care.
- Richardson-Merrell Inc., Wilton, U.S.A., the holding company, holds 14,85,000 No. of
equity shares out of 37,12,500 No. of equity shares issued by the Company.
1988
1990
- The Company set up a plant at Mandideep, the M.P., to manufacture high technology
detregents. The first phase of the plant commenced commerical production in April
35
1991, and the new detergent Ariel Microsystem was test marketed in Vishakpatnam.
After the success therein, it was introduced to Andhra Pradesh and Tamil Nadu.
1991
- New initiatives were introduced to strengthen the skin and hair care business namely
Ùltra Clearsail', Òlay Sensitive' and `Mediker Upgrade'.
- During July-August, the Company offered 4,00,960 - 12.5% partly convertible

debentures of Rs 200 each on rights basis to equity shareholders (other than shareholders
of Richardson-Vicks Inc.,
U.S.A. RVI) in the proportion 1 deb.: 10 equity shares held. (all were taken up).
- Another 20,000 - 12.5% debenture were issued to employees on an equitable basis

(only 17,480 debentures taken up). Unsubscribed portion of 2,520 debentures was
allowed to lapse.
- Rs 65 of the face value of each debentures was to be automatically and compulsorily

converted into 1 equity share of Rs 10 each at a premium of Rs 55 per share on the expiry
of 18 months from the date of allotment of debentures.
1992
- During the year new initiatives namely Ariel Green, Whisper Exra Long and Whisper
Extra Large were introduced.
- The balance of Rs. 135 of the face value of each debenture was to be redeemed at par
on 3 equal annual instalments on the expiry of 6th, 7th and 8th years from the date of
allotment of debentures. Conversion of Part A of 65 of the debentures was preponed
from 4th March, 1993 to 31st July, 1992. Accordingly, the Company allotted 4,18,440
equity shares of Rs 10 each at a premium of Rs 55 per share on 1st August.
36
- The Company also offered 16,03,800 -14% non-convertible debentures (NCD) of Rs
100 each in the proportion 8 debs.: 20 equity shares held (all were taken up).
- Another 80,200 - 14% NCD's were issued to the employees on an equitable basis (only
79,2000 debentures taken up). Unsubscribed portion of 100 debentures was allowed to
lapse. Each block of 8 non-convertible debentures was to contain 1 warrant, entitling the
holder to apply for 3 equity shares of Rs. 10 each at a premium as may be then approved
by CCI within 4th and 5th year from the date of allotment. Accordingly 6,21,508 shares
were allotted at a premium of Rs 55 per share. These debentures were to be redeemed at
par on the expiry of 6th, 7th and 8th years from the date of allotment of debentures.
- During July, the Company issued 15,00,153 equity shares of Rs 10 each at a premium
of Rs 215 per share to RVI in order to raise their equity holding from 40% to 51%.
- Another 2,78,960 equity shares of Rs 10 each at a premium of Rs 55 per share and

1,56,559 equity shares of Rs 10 each at a premium of Rs 215 per share were allotted on
1st August, to enable RVI to continue to hold 51% of the equity capital on account of
conversion of Part A of
partly convertible debentures.
1993
- High Quality `Whisper' with `Wings' was introduced. During the year the Company
purchased Òld Spice Men's Toiletries and also divested the Laundry and Detergent
business but retained detergent manufacturing facility at Mandideep and supplied the
detergent to Proctor & Gamble Home Products Ltd.
- The Company issued 36,14,645 equity shares of Rs 10 each at a premium of Rs 110 per
share to RVI in order to raise their equity holding from 51% to 65%.
- During May 4,02,890 equity shares of Rs 10 each at a premium of Rs 55 per share and
7,51,339 equity shares of Rs 10 each at a premium of Rs 110 per share were allotted to
37
enable RVI to continue to hold 65% of the equity capital on account of conversion of
equity Warrants.
1995
- The Company introduced a premium line of drops under the name Vicks Vitamin `C'.
With a view to improving employees' productivity the company installed electronic voice
mail connecting all employees across India. The Company launched Whisper Extra Dry,
a superior performing sanitary protection product.
- The Company undertook to set up a state-of-the-art technology health care plant at

Goa.
1996
- The Company has recently introduced into test market VICKS VAPORUB Super
Balm.
1997
- 72,13,497 equity shares allotted as bonus shares in prop. 1:2.
- Procter & Gamble Home Products has expanded the line of its Pantene shampoos in
India by launching a new variant, Pantene Pro V Extra Treatment shampoo.
- Procter & Gamble Godrej has been renamed Procter & Gamble Distribution Company
with effect from December 16, 1996. The re-christening is a prelude to the wind-up or a
merger of the company with either of the two P&G companies in India, P&G India or
P&G Home Products.
- Procter & Gamble has finally launched Head & Shoulders, the world's leading anti-
dandruff shampoo brand in the country.
38
- Procter and Gamble India Ltd has announced a bonus share issue in the ratio of one
equity share for every two equity shares held.
- The board of Proctor & Gamble India (P&G) has declared a one-for-two issue of bonus
shares and 75 per cent dividend for the year ended June 30.
1998
- Procter & Gamble India has introduced a Stock Appreciation Rights (SAR) plan for all
its full-time employees in India, in an innovative variation of the stock option scheme.
- Procter & Gamble India Ltd. has changed its name to Procter & Gamble Hygiene and
Health Care Ltd. This was approved by the shareholders at the company's annual
meeting.
- Procter & Gamble (P&G) has launched a free career counselling service - P&G Future
Focus - with Resource Management Group (RMG).
- Procter & Gamble India Ltd (P&G) has undertaken an exercise of streamlining its
existing distribution and supply chain with a view to making it more consumer oriented,
thus making the products available to the consumer faster and fresher.
1999
- Procter & Gamble Home Products, the wholly-owned subsidiary of the Cincinnati-
based multinational, is test launching `Pringles', the internationally renowned potato chip
brand in the Capital.
- Procter & Gamble Inc (P&G), the US-based home products giant, has launched its
most popular detergent brand, Gain, in the local market.
- Procter & Gamble launched its first ever sight restoration corporate project called
Project Drishti in collaboration with the National Association for the Blind.
39
- The fast-moving consumer good major, Procter & Gamble is likely to route new brand
launches in India through its fully-owned subsidiary, P&G Home Products, instead of its
other subsidiary listed on the country's bourses.
2000
- The Company has launched a new brand, Tampax, Indian Sanitary napkin market.
- The Company has relaunched its Vicks cough drop in a new 2.5 gm blue back.
- The Company has launched Tide detergent in India.
- The Company has launched `Project Poshan', a social marketing initiative in

association with UNICEF in the Indian markets.
- Procter & Gamble Co. and setting the company on a blistering pace of change, Durk I
Jagar abruptly quit.
- The Company was awarded Chennai-based SembCrop Logistics the prestigious

Pinnacle Award for achieving internationally benchmarked standards in Good
Manufacturing Practices.
- The Company, the maker of Tide laundry detergent and Bounty paper towels, launched
an over-the-counter tooth whitening product under its Crest brand that uses the same
whitening ingredient used by dentists.
- The Company launched Pantene Lively Clean, the latest in the Pantene Pro-V range of
shampoos in India.
- The Company launched New Ariel Power Compact detergent with a new global
technology.
40
- Procter & Gamble Home Products Limited, the fully-owned subsidiary of Cincinnati-
based Procter & Gamble Co, is creating a new segment in the fabric cleaning market in
India with the launch of its international brand Febreze, fabric odour cleaner at Chennai.
- Helmut Meixner, chief executive officer of Procter & Gamble in India, has retired
effective 5th July, Gary Cofer, Director has been appointed P&G country manager in
India with immediate effect.
- The Company has relaunched Vicks Action 500+ in an attractive True Blue pack.
- The Company has entered into the second phase of planned restructuring, cashing in on
a more efficient supply chain management system, launching extension of existing
flagship brands and launching bigger brands from the global portfolio.
- The Company has launched Vicks Plus medicated lozenges in India.
- Gary W. Cofer, country manager, Procter and Gamble, India has been appointed
managing director of Procter and Gamble Hygiene and Healthcare Ltd. with effect from
1st September.
- Procter & Gamble Hygience & Healthcare has tied up with `Doctoranywhere.com', an
online consulting service that enables consultation, referral and interaction of doctors
with specialist consultants.
- Procter & Gamble Co., launched BeingGirl.com.
- The Company has tied up with Doctoranywhere.com, an online service that enables
consultation referral and interaction of doctors with specialists.
41
- The Company has introduced Doorstep Challenge advertising for its detergent brand,
Tide.
- The Company has launched a website -- www.spraytugsmooth.com exclusively for its

newly-launched fabric spray, Downy Wrinkleleaser, in an attempt to explain the benefits
of the product.
- Procter & Gamble's haircare brand Pantene will present Hair Asia Pacific 2000, the
international cotest for hairstyles and beauty experts in collaobration with the Sri Lankan
Association of Haridressers and Beauticians.
- The company has re-launched Viks Action 5000 in an attractive true Blue international
pack.
- The Company announced the launch of 'Best-Ever Head & shoulders anti-Dandruff
Shampoo' (H&S) in the Rs.500 crore hair care market.
2001
- Head & Shoulders, a brand of Shampoo from the Proctor and Gamble stable, has
launched its new commercial with three ke anti-dandruff claims -- eliminates dandruff
flakes forever with regular use, removes 100 per cent visible flakes and has an effect
from the first wash itself.
- Procter & Gamble Hygiene and Health Care has launched the new Whisper Ultra Day-
Night pack for the first time in India, in Tamil Nadu.
- Procter & Gamble Home Products has launched its Tide detergent in sachets, primarily
to induce trials.
- The Company has launched an outdoor advertising campaign for Vicks Plus medicated
lozenges.
42
- Procter & Gamble Home Products (P&G) has finally unveiled the mystery of the five
bald women in a ‘We want a change’ campaign with the relaunch of the Pantene Pro-V
range of shampoos in India.
2002
- Procter & Hygiene and Health Care Ltd has informed that Mr Gary Cofer will cease to
be the Managing Director of the company wef April 01, 2002. Mr Shantanu Khosla will
be appointed as the Managing Director.
2002
- Anil Gupta appointed as Additional Director of Procter & Gamble.
-Shantanu Khosla appointed as M D of Procter & Gamble w e f June 01, 2002.
2003
-Procter & Gamble Hygiene & Health Care Ltd has informed BSE that the Board of
Directors considered and approved the following changes in the constitution of Board of
Directors with effect from January 31, 2003: resignation of Mr. Peter Smit as the Director
and appointment of Ms. Nayantara Bali as Director to fill in the casual vacancy caused by
the resignation of Mr. Peter Smit.
-P & G has sought the approval of Foreign Investment Promotion Board to revamp the
capital of its foreign subsidiary.
-P&G and Jaya TV have announced a launch of 'Shiksha, Secure your child's future' a
special promotion to help educate children in India.
-P&G has informed BSE that it has discontinued the text-marketing of Vicks Action 500
Night.
43
-P&G and HLL have lodged a complaint with the Advertising Standards Council of
India over HLL's new Clinic All Clear Anti-dandruff shampoo.
-Procter & Gamble India has slashed the prices of its sachets of washing powder Tide
and Ariel.
-Procter & Gamble Hygiene and Healthcare ltd has launched new VICKS Formula 44
cough syrup, which provides safe, effective and long lasting relief of up to eight hours.
-P&G has more than doubled its productivity per employee in four years and there have
been savings in the backroom office of upto 90 minutes.
-P&G has set up two e-research and development networks, which would act as 'problem
solving exchanges'.
-Procter & Gamble announced 1:2 bonus issue the company would issue 1.08 million
new shares of Rs 10 each.
-Unveiled Ariel sachet priced at Rs 2 and Tide sachet at Re 1 in Andhra Pradesh for the
first time.
2004
-P&G unveils Rejoice Shampoo on Jan 19
-Procter & Gamble of the US announced a strategic tie-up with the Council of Scientific
and Industrial Research (CSIR) to support acceleration of its `Connect and Develop'
strategy launched in India in September last year
2005
-P&G introduces new aloe vera version of Head & Shoulders
44
3. Nestle
1959
- On 28th March, the Company was incorporated at New Delhi. The company was
promoted by Nestle Alimentana S.A. through a wholly owned subsidiary, Nestle
Holdings Ltd., Nassau, ahama Islands.
1968
- 1,37,785 Bonus shares issued in proportion 1:10 on 12.9.1968.
- On November company issued 3,00,000 shares at par. 22,000 shares reserved for
directors, etc. and 2,78,000 shares offered to the Public.
1970
- 34,251 shares issued against machinery to collaborators.
1978
- During the period 4,00,114 equity shares and 382,751 existing equity shares held by
Nestle's Holdings, Ltd., Nassau, Bahama Islands (Nestle) were offered to the resident
Indian nationals at a premium of Rs. 2.50 per share.
1980
- 22,50,000 bonus shares issued in proportion 1:1 on 30.7.1980.
1983
- 27,00,000 bonus shares equity shares issued in prop. 3:5.
1985
- 18,00,000 Rights equity shares issued (Prem. Rs 30 per shares; prop. 1:4). 4,50,000
additional shares allotted to retain oversubscription. 90,000 No. of equity shares
allotted (prem. Rs 30 per share) to employees of the Company on an equitable basis.
45
60,000 No. of equity shares allotted (prem. Rs 30 per share) to Nestle's Holdings Ltd. to
maintain their shareholding.
1986
- The Shareholders approved the issue of non-Convertible debentures (IInd series) for an
aggregate value of Rs 11.52 crores.
1987
- During the year installation of a new factory at Nanjangud (Karnataka), for the
manufacture of instant coffee was in progress.
1988
- During Jan/Feb, the Company offered 19,35,360-12% secured redeemable convertible
debentures of Rs 160 each of which 92,160 debentures were reserved for allotment to
Indian working directors and employees of the company. The remaining 18,43,200
debentures were offered to the shareholders (except Nestle) of the company on right basis
in the ratio of 4 debentures for every 25 shares of Rs.10 each of the company held.
Additional 2,76,480 debentures were allotted to shareholders to retain over-subscription.
- As per the terms of issue, the convertible part of Rs 60 out of the total face value of
each debentures of Rs 160 will be Automatically converted into one equity share of Rs 10
each as fully paid up at a premium of Rs 50 per share on 31.3.1989. The non-convertible
part of Rs 100 of each debenture will be redeemed after a period of seven years from the
date of allotment of debentures.
1989
- 22,11,840 No. of equity shares allotted (prem. Rs 50 per share) in part conversion of
12% debentures. 14,74,560 No. of equity shares of allotted to retain oversubscription.
90,000 No. of equity shares allotted (prem. Rs 30 per share) to employees of the
46
Company on an equitable basis. 60,000 No. of equity shares allotted (prem. Rs 30 per
share) to Nestle's Holdings Ltd. to maintain their equity shareholding.
- The name of the company was changed from `Food Specialities Ltd.' to `Nestle India
Ltd.' on 24th March.
1990
- During the year company entered into chocolate business by introducing Nestle
premium chocolates.
1991
- During the year company issued 10,00,000-14% secured redeemable non-convertible
debentures (series PP-1) of Rs. 100 each to Infrastructure Leasing and Financial Services
Ltd., on private placement basis.
1992
- As per the term of Amalgamation scheme 100,51,850 No. of equity shares of Rs.10
each of the company were issued to the NFPIL share holders in the proportion of two
equity shares of Rs. 10 each of the company for every thirteen equity shares of Rs.10
each held in the NFPIL.
1993
- Samalkha factory was commissioned during the year and underwent expansion for
cereal based products.
- 196,07,054 shares 47,51,625 No. of Equity shares of Rs 10 each allotted to M/s. Nestle
SA Switzerland to raise the stake to 51%. 128,55,429 bonus shares issued in prop. 1:4.
1994
- During the year company launched a number of new products viz., Cerelac Soya, Milk
maid, Dessert Mixes, Maggo Tonit's Special Cooking Bases, Maggi 1-2-3 noodles,
47
Contodina snack dressing and the chocolate items, milky base marbles and bar one
peanut. And also launched, Bonus and Polo.
1995
- During the year company commenced construction of a new factory at Bicholim, Goa.
At the same year, instant noodles factory was installed and commissioned at Samalkha
factory.
- During the year company launched Kit Kat manufactures at the new factory at Ponda,
Goa.
- During the same year the Nanjangud factory was commissioned and the unit was to
manufacture MILO - the World's Largest Selling Chocolate energy food drink.
- During 95-96, the company issued secured redeemable non-convertible debentures of

Rs. 100 each on private placement basis. i.e. 3,000,000
- 16.5 % (series PP-2) debentures and 2,500-17.5% debentures (series pp-2) and 2,500-
17.5% debentures (series PP-3).
- 32,138,572 bonus shares allotted in prop. 1:2.
- The Chennai-based Indian Food Fermentations tied up with Nestle India Ltd., to market
its dosa and vada batter in consumer pack, in the country. The company has signed an
agreement to this effect recently.
Nestle would sell the ready-to-use dosa, vada, sambhar and unique masala dosa batter in
consumer packs, under its own brand name in the country.
48
1996
- During the year company launched MILO-Chocolate energy food drink in South India
and a range of culinary products like, Dosa and Sampar mixes, pickles and new varieties
of soups under the brand Maggi.
1997
- Nestle India (NIL) is raising Rs.50 crore through a non-convertible debenture issue.
The issue has been rated AAA by Credit Rating and Information Services of India
(Crisil), indicating the highest safety with respect to timely payment of interest and
principal.
- NIL is one of the top players in the processed food & beverages industry and the largest
producer of instant coffee with a 49 per cent market share.
- After the success of KitKat and Polo, Nestle India has launched its first product in the
hard boiled sugar confectionery market, Allen's Splash.
- Nestle's wafer chocolate brand, Kit Kat, which created a major dent in the market with
its launch, its international milk drink brand Milo has garnered a mere three per cent
share (value terms) in the Rs 500 crore market, a year after its launch in India.
- Nestle India Ltd. (NIL) leads the list of the country's top 15 coffee exporters for the
ongoing calendar year in terms of both quantum and value for the period January 1 -
October 23.
1998
- Swiss multinational Nestle SA has ordered an international auditing of its Indian
subsidiary, which has been mired in a controversy of alleged financial irregularities and
insider trading.
49
- Nestle SA and the BM Khaitan group set up a joint venture, Nutritional Food Products
India Ltd, in 1990 which was amalgamated with NIL in 1993.
- Nestle has set up a parallel distribution network across the country.
1999
- The company has also set up a special cold chain for product distribution in select retail
outlets.
- Nestle India has entered into a 10-year agreement with Campco in February, 1990 for
manufacture and supply of bulk quantity of chocolates and cocoa products.
2000
- Nestle is set to enter the domestic bottled water business and will launch the product
under the brand name `Pure Life'.
- The Company has launched its ultra heat treated liquid milk, `Nestle Pure Milk', in
Bangalore, Chennai, Hyderabad and Kochi.
- The Company has launched Perrier and will celebrate Perrier Invitation Golf-2000.
- Nestle India Ltd. to launch Nescafe Gold and Nescafe Gold Decaffeinated.
- Nestle India has launched a range of gift packs under the Fox confectionery brand
name for the festivel seasons.
- The Company launched its second premium mineral water brand San Pellegrino in
India.
50
2001
- Nestle India Ltd. has launched `Pure Life', its mass-market bottled water, adding one
more premium brand to the already saturated Rs 600-crore bottledwater segment.
- The board of directors of Nestle India on July 27, nominated the Chairman and
Managing Director of NIIT Ltd, Mr Rajendra S. Pawar, on the company board with effect
from October this year.
- The board of directors of Nestle India on July 27, nominated the Chairman and
Managing Director of NIIT Ltd, Mr Rajendra S. Pawar, on the company board with effect
from October this year.
2002
-Nestle Group increases holding in Nestle India to 53.27%
-Ties up with Nilgiris to co-brand various dairy products like dahi, paneer, ghee and
possibly milk
-Launches a throat lozenge branded Acti-V to compete against Proecter & Gamble's
Vicks cough drops
-Regains top coffee exporter positon in India
-Parson Nutritional Pvt. Ltd. buys the assets of Excelsia Foods, including its
manufacturing unit at Ghaziabad, from Nestle S.A
2003
-Rolls out Nestle Development Nutrition Plan for infant weaning and launches its infant
food CERELAC 123 as a range of products graded to the needs of infants in each stage of
the plan
51
-Nestle India's executive director Ranjit Raj re-elected to be the Coffee Board member
representing instant-coffee manufacturers
-Nestle SA, Switzerland, buys 1.01 million shares in its Indian arm 'Nestle India'. With
this purchase, the parent holding in its Indian arm goes up to 59.8 per cent from 58.7 per
cent
-Consumer Body files case against Nestle India in National Consumer Dispute Redressal
Commission (NCDRC) regarding the non-compliance in weight in its 50-gm Nescafe
packs
-Signs a 100 per cent buyback pact with Bengal Nestor's India Ltd (BNIL) for its ultra
heat treated milk and other dairy products
-Ed Marra, the head of Nestle's Canadian business, will succeed Frank Cella as head of
strategic business units and marketing at the turn of the year, the Swiss group said in a
statement.
-Paul Bulcke, now head of German operations, will replace Carlos Eduardo Represas as
top executive in the Americas zone from July 1, '04.
2004
-Nestle India bags Tetra Pak's annual dairy and beverage industry award
-Nestle India has signed on Bollywood actress Preity Zinta to feature in its latest
commercial brand maggi
-Nestle introduces 'Sweet Lassi' in Delhi, Punjab and Haryana
52
-Nestle India said on June 24, 2004, it has signed Rani Mukherjee as brand ambassador
for its chocolate brand Nestle Munch and the advertising campaign will be released on
June 25
2005
-Neslte India launches new variant of Maggi
-Delists securities from the Delhi Stock Exchange Association Ltd (DSE) w.e.f. July 15,
2005.
2007
- Nestle India Ltd has informed that the Board of Directors of the Company at its
meeting held on July 31, 2007, inter alia, has appointed Mr. Pradip Baijal as a Non-
Executive Director of the Company.
53
4. ITC
1910
- On 24th August the Company was incorporated as a Private Limited Company under
the name, Imperial Tobacco Co. of India Ltd. The Company manufactures and
distributes cigarettes and smoking tobaccos and speciality papers including cigarette
tissue papers (Sole manufacturer in the country). Other activities include tobacco leaf
processing, printing and packaging, hotels, food and exports.
1953
- The Company acquired the manufacturing business of Tobacco Manufacturers (India)
Ltd., and the Complementary Lithographic printing business of Printers (India) Ltd.
1954
- The Company was converted into a Public Limited Company on 27th October.
1970
- The name of the Company was changed from the Imperial Tobacco Co. of India Ltd.,
to India Tobacco Co. Ltd., in May.
- 5,00,000 Right shares issued to Indian shareholders (prem. Rs 3 per shares). 32,90,000
No. of Equity Shares offered to the public (prem. Rs. 3 per share).
1972
- On October Company entered into hotel business.
1973
- Company received the approval of Govt. for setting up three processing plants.
1974
- On 1st April name again changed to I T C Ltd.
54
- During this period an offer for sale of 28,04,775 equity shares at par was made to the
Indian public by the three major non-resident shares holders viz., Tobacco manufactures
(India) Ltd, Tobacco Investments Ltd., and Rothmans International Ltd. all of UK.
1975
- ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd.
(UK).
1976
- During December some foreign shareholders offered a total of 38,00,000 No. of equity
shares of Rs 10 each at a premium of Rs 5.00 for sale to reduce the foreign equity holding
of the Company to 40%. The shares offered were 10,95,774 shares by Tobacco
Manufacturers (India) Ltd., 26,42,216 shares by Tobacco Investments Ltd., U.K., and
57,010 shares by Rothmans International Ltd., U.K.
1978
- 37,90,000 Bonus shares issued in prop. 1:5.
1979
- The name of the Company's chain of hotels was changed from Welcom Hotels to
Welcomgroup. The company entered into a Marketing Service and Reservations
Agreement with the Sheration International Incorporated which was sactioned by Govt.
on 27th January.
1980
- 45,48,000 Bonus shares issued in prop. 1:5.
55
1983
- A new Company under the name Gujarat Hotels was incorporated under a joint venture
agreement signed between the Company and Gujarat Industrial Investment Corporation.
This Co. had set up a 144-room hotel at Vadodara known as Welcomegroup Vadodara.
- The Company is holding 24.9% of the subscribed equity capital of Rs 348 lakhs of
Gujarat Hotels Ltd., as on 31.03.1993.
1984
- 29,38,050 shares allotted to bondholders in exchange of accrued interest on 1.7.1984.
1985
- 29,42,060 Shares allotted to bondholders in exchange of accrued interest.
1986
- The Company signed a joint venture agreement with MP Audyogik Vikas Nigam for
setting up of four hotels over the next five years.
- ITC Filtrona Ltd. a 50:50 joint venture Company promoted by the Company and
Filtrona International Ltd. UK. The Company manufactures high technology filters for
the cigarette industry.
1987
- New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced.
Long-term agreements were entered into with the unions of factories located at Calcutta,
Saharanpur and Munger. In Bangalore, however, working was affected by a strike for
114 days.
- The Company acquired Nedovs Hotel, Srinagar on lease. An agreement was concluded
for building a new hotel in Jaipur and the hotel division added another 30 rooms in
Mughal Sheraton, Agra, to cater to the growing demand.
56
1988
- In May the company formed a new division called Agribusiness Division for carrying
out research and development on production and distribution of high yielding cultivars
with emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and
export of agricultural produce.
- A Memorandum of Understanding was signed with the authorities to open an Indian

restaurant in Odessa, U.S.S.R.
- The Company subscribed for 11,86,157 No. of equity shares of Rs 10 each for cash at
par in the equity capital of PABL.
- Different varities of oilseeds under the brand name of ADARSH and cooking oil under
SUNDROP were launched.
- New investments were made in water and bulk liquid packaging project. The Company
explored the possibility of setting up a new software development centre in India with
ability to access Company's customers' computers abroad through data communication
links.
- A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.)
(ILTD) consisted of its operations in India where it operated as a sister concern of the
Company. ILTD was a pioneer in introducing Virginia tobacco to India and over the
year, developed into a highly efficient enterprise, besides being a very large exporter of
tobacco. The Company purchases, with effect from 1st April, 1975, the net assets in
India of ILTD whereupon it became a division of the Company.
1989
- During the year Company entered into a foreign collaboration agreement with Liqui
Box Corporation of U.S.A. for manufacture of Plastic bags dispensing valves and
57
filments, Industrial Machinery for use with packaging and filling system for manufacture
at the company's industrial unit at Thiruvottiyur in Tamil Nadu.
- 331,68,110 Bonus Equity shares issued in prop. 1:1.
- The Company proposed to evaluate a methodology for extraction of tobacco protein

and solenesol and also investigate on the feasibility of converting tobacco waste into
reconstituted waste.
- Due to political disturbances in Kashmir, the project work at hotel Nedovs in

Srinagar was suspended. The Bukhara restaurant was franchised to the Sheraton
hotel in Hongkong also.
1990
- Refined mustard oil under the brand name REAL GOLD was introduced in the market.
- On 1st April Tribeni Tissues Ltd was amalgamated with the Co. As per the terms of the
merger, 5 equity shares of Rs.10 each of the company were issued at par without payment
in cash for every six equity shares of Rs.10 each held in TTL. Accordingly, 105,95,070
No. of Equity shares were allotted to the shareholders of the erstwhile TTL.
1991
- The company entered into an agreement with MISR Import & Export Co. A.R.E Cairo,
Egypt for the export of tea to Egypt on Commission at the rate of 3% payable in U.S.
Dollars on the FOB/C&F value of each transaction.
- Company proposed to enter and agreement with National Trading & Developing
Establishment, Abu Dhabi for export of safety matches to UAE on commission at the rate
of 3% on FOB value of each transaction.
58
- Company proposed to enter and agreement with a firm under the name of Jalil Rastar,
Tehran, Iran for export of tea to Iran on commission at the rate of 5% on the FOB/C&F
value of each transaction.
1992
- Since January there was labour unrest at Tribeni Tissues paper mill which led to a
lockout at the mill with effect from 27th May.
- On 8th April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a wholly
owned trading subsidiary of the Company.
- During the same period a wholly owned subsidiary ITC Infotech Ltd. incorporated in
UK with an authorised capital of US $ 2 million and paid up capital of US lakh.
1993
- The hybrid seeds business was being repositioned in the newly formed ITC Zere Co.
Ltd., a joint venture paticipation with Zere Co. Plc of UK.
- The Company successfully launched Hero brand Cigarettes.
- During this period a finacial service division was formed. Companies Associated, ITC
Classic Finance Ltd, proposed to enter a joint venture with Peregrine Group of Hong
Kong through a new company, ITC Peregrine Capital Pvt. Ltd. to commence investment
banking and brokerage services business.
- In October the Company issued 45,00,000 Global Depository Receipts representing

45,00,000 ordinary shares. Three offered GDRs were to be issued with one warrent to
subscribe for one warrant GDR upon payment of US $ 15.30.
- Two new brands viz., `Classic Milds' and `Hero' were launched at the premium and
small-length ends respectively.
59
1994
- Company propose to sell various edible oil brands to ITC Agro Tech Ltd. for a
consideration of Rs.25 crores.
- On 21st February Tiruvottiyur establishment resumed following a tripartie settlement.
- 121,318,177 bonus equity shares issued in propn. 1:1, 2,85,550 No. of equity shares
issued on conversion of 1,85,450 warrants.
- Company introduced scissors standard.
- ITC classic finance entered into arrangemnt for launching mutual funds ITC Classic
Finance had set up a Company to enable operation in real estate and also a home finance
Co. to provide finance to a range of buyers in the Commercial/Home Property markets.
1995
- Company introduced capstan Menthol filter, capstan standard and Bristo standared and
re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in Kingsize
was introduced into test markets.
- The consideration of the edible oil business could not be completed due to adverse
business conditions experienced by the ITC Agro-Tech Ltd.
- During the year a new company ITC Classic Threadneedls AMC, a joint venture
between ITC Classic Finance Ltd. and Threadneedle Asset Management was formed to
launch a series of Mutual Funds.
- 25,78,150 No. of Equity shares allotted on exercise of 12,89,075 warrants on payment

of U.S. .30 per warrant.
60
1996
- Company purchased Mantralayam undertaking for a consideration of Rs.115.80 crores
aganst settlement of all dues. The plant has since been licensed back to ITC Agro-tech
for five years.
- The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brands
during the year.
1997
- ITC Classic Finance Ltd. was amalgamated with ICICI Ltd.
- ConAgra Inc. U.S.A., invested in ITC Agro-Tech Limited by way of preferential

allotment of over 51% equity, through its Mauritius based subsidiary, CAG-TECH
Limited.
- Having taken an in-principle decision to acquire the businesses, the ITC board has set
up an internal committee to go into the nitty-gritty of the real estate business in CIDL.
- City based Indian Tobacco Company workers will go on a day-long strike on

December 26, in protest against the management's move to retrench 416 workmen from
its cigarette manufacturing unit.
1998
- ITC Ltd has signed an agreement with National Securities Depository Ltd (NSDL) to
get its securities admitted for dematerialisation.
- ITC Ltd is one of the most liquid scrips in the capital market. With domestic
institutions having a considerable stake in this counter, this move is likely to improve
liquidity in demat trading.
61
- ITC Ltd has undertaken a comprehensive exercise to restructure all its wholly-owned
subsidiaries to align them with the four thrust areas viz., tobacco, hotels, paper and
paperboards and printing and packaging.
- ITC has nearly 105 subsidiaries, which are involved in various kinds of operations.
1999
- Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITC
Bhadrachalam Paperboards, from 37% to 51% through a preferential allotment of equity
shares. This follow the allotment, by the board of ITC Bhadrachalam Paperboards, of
1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per
share and 11% redeemable cumulative-preference shares of the face value of Rs 100
each, for cash, at par to promoter company ITC.
- ITC will set up a new tobacco processing department (TPD) because the increased
production will make it economical to process tobacco on site.
- The Anaparti factory of ITC Ltd -- ILTD division, received the Rajiv Gandhi National
Quality award for 1995.
- Mr. K.S. Rao, Chief Executive of the ILTD division of ITC, received the award from
the Union Minister for Chemical, Fertilisers, Food and Consumer Affairs, Mr. Surjit
Singh Barnala, at Vigyan Bhavan.
2000
- ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, and
Compaq Computer (I) Pvt. Ltd. signed an MoU aimed at exploring business opportunities
for deploying e-enabled solutions.
- The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to

make a beginning in agricultural e-trade.
62
- ITC Ltd its entry into retailing business by launching branded leisurewear apparels as
part of its diversification strategy into new areas.
- The Company is hiving off its Infotech services businesses in India, the US and UK
and merging them into a separate wholly-owned subsidiary.
- The IT division has entered into agreements with Compaq and expand the IT business.
- The company set up the Lifestyle Retailing Business Division. A strategic Business
Unit for the greeting cards business was set up under the Packaging and Printing
Division.
- ITC has launched Wills Sport, a full range of internationally styled premium wear for
men and women.
- ITC Infotech Ltd., the recently-launched it subsidiary of ITC Ltd., has become one of
the select software organisations in the world to achieve the distinction of being certified
at Level-5 on the prestigious Capability Maturity Model.
- Tobacco Company ITC launched a website, billed as òne stop terminus' for
international customers of agricultural commodities. The website, ww.itcibd.com, will
provide information on trading of key commodities.
- The Company have set up units in the north-eastern States to avail of special incentives
relating to Central excise duties.
- On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the
company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effective
from 12th July.
63
- The Board of the company has recommended an employee stock option scheme.
- ITC Ltd. has proposed an Employee Stock Option Plan where ordinary shares up to 5
per cent of the issued and subscribed capital will be issued to employees.
- Having carved a niche for itself by launching the first branded lifestyle apparel, Wills
Sport, in Delhi in July 2000, the Lifestyle Retailing Business Division of ITC Limited has
now big plans up its sleeve.
- ITC Ltd, the Rs 8,816 crore cigarette and hotels company, has decided to merge its
subsidiary, the Rs 623 crore ITC Bhadrachalam Paperboards Ltd, with itself.
2002
- ITC Ltd has informed that the Board of Directors, appointed Mr. J.B. Stevens as an
Additional Non-Executive Director of the Company and the Board accepted the
resignation of Mr. A.A. R. Rodrigures.
2002
- ITC Ltd has informed BSE that a large number of workmen have resumed work at the
company's printing factory at Tiruvottiyur Chenna.
- ITC Ltd, which has acquired a shade over 14 per cent in EIH Ltd, which owns the
Oberoi chain of hotels.
-ITC Ltd. has informed the Exchange that the Company on May 06, 2002 has allotted
20,96,982 Ordinary Shares of Rs 10/- each in the ratio of 1share of the company for every
16 fully paid up Equity Shares of Rs 10- each held in ITC Bhadrachalam Paperboards Ltd
to the members of the ITC Bhadrachalam, in terms of the Scheme of Amalgamation of
ITC Bhadrachalam with the company.
64
- ITC, Tobacco major, has launched Aashirvaad atta making its foray into Indian atta
market.
- ITC's greetings cards business and Maple Leaf have entered into Joint Venture where
Maple Leaf will exclusively manufacture pop-up cards for ITC.
- ITC Foods ands ITC Ltd, is finally foraying its way to the Rs 1,100 crore confectionery
market. The foods division which has shifted office from Kolkata to Bangalore this
month, has introduced its first confectionery product, acquired brand Minto in four cities.
-ITC Greeting Cards Business (ITC-GCB), has forayed into stationery products segment
with the launch of Expressions PaperKraft.
-ITC Limited has taken over Wills brand. ITC had to acquire the Wills brand in the US,
before it takes Wills merchandise to America.
-ITC Ltd. has informed the Exchange that the company has acquired further 56,000
ordinary shares of Nepalese Rupees 100/- each of Surya Nepal Pvt. Ltd. (Surya Nepal),
earlier known as Surya Tobacco Company (P) Ltd, a company incorporated under the
laws of Nepal.
-ITC Ltd has informed BSE that Industrial Development Bank of India ('IDBI') has
appointed Mr T M Nagarajan, Deputy Managing Director IDBI, on the Board of
Directors of the Company w e f August 14, 2002, as Nominee Director representing
IDBI, in place of Mr R Vasudevan.
-ITC Board approves integration of Bhadrachalam Paperboards Division and Tribeni

Tissues Division.
- ITC Ltd International Business Division (ITC-IBD) has introduced an online auction
platform called Tradersnet along with its web-based initiative Planternet.
65
-ITC, now moves towards match business, it has diversified into the match business to
earn more revenues from non-tobacco businesses.
2003
-ITC Ltd has informed to BSE that company's Spriha brand of natural incense sticks
(Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo Udyog
Trust in Pondicherry was launched on February 21, 2003.
-ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs
500 crore sales in five years. Salt is the second offering from ITC Foods' staple business
in the past 10 months, under the brand name of 'Aashirvaad'.
-ITC group company, International Travel House (ITH), has divested 49 per cent equity
in LeasePlan India to the Netherlands-based LeasePlan Corporation (formerly ABN
AMRO Lease Holding NV), making it a wholly-owned subsidiary of the foreign
company.
-ITC Ltd has set up a Rs 227 crore modernised pulp mill at its Bhadrachalam works
aiming to become the first producer of ECF PSP in the country.
-ITC bags Golden Peacock award for cleaner tech
-ITC has forayed into alliance with several state governments to take up afforestation
programmes and in lieu get land from which it can source wood-based feedstock for its
paperboard business.
-ITC Ltd has informed that the Board of Directors of the Company at its meeting held
on July 25, 2003 have noted the resignation of Mr T M Nagarajan, Nominee Director of
Industrial Development Bank of India.
66
- Indian Institute of Management Calcutta (IIMC) has joined with ITC Ltd. to unveil
annual business competition -Ideas to Imprementation (i2I).
- NCDEX allies with ITC Ltd for data sharing.
- Company issued & allotted 27792 Ordinary Shares of Rs 10 each, upon exercise of
27792 options by eligible employees under the ITC Employee Stock Option Scheme.
- Consequently the issued & subscribed share capital of the company stands increased to
Rs 247,54,85,090 divided into 24,75,48,509 ordinary shares of Rs 10/- each.
- Bags Seagate Intelligent Enterprise of the Year award for the most innovative use of
information technology
- Commences commercial production of paper using the environment-friendly ECF

(elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh
- Food wing of ITC eyes on 4 pc market share in biscuit market
- The government has not taken up the Supreme Court's suggestion to arrive at a
compromise formula with tobacco major ITC for settling the long-drawn-out excise
dispute on the ground that it was not clear about the legal provisions under which it could
do so.
- ITC unveils new brand of agarbattis
2004
- ITC's Wills Lifestyle unveiled its fall/winter collection here on Jan 6. The collection,
featuring Wills Classic formal wear, Wills Sport relaxed wear, Wills Clublife evening
wear, and fashion accessories from Furla and Valentino from Italy, is available at ITC's
Wills Lifestyle store near Nagarjuna Circle.
67
- ITC signs memorandum of understanding (MoU) with Andhra Pradesh government for
wasteland development
- ITC win Rs 5.80 cr grant from British challenge fund
- Acquires paperboards business of M/s Bilt Industrial Packaging Company Ltd including
its 65,000 MT per annum manufacturing facility at Thekkampatty Village, Coimbatore
District, Tamil Nadu.
- ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine
brand Kitchens of India and readymeal Aashirwad brand
- Completes the process of acquiring the paperboard manufacturing facility of BILT

Industrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility,
renamed 'unit Kovai', will operate as part of the paperboards and specialty papers division
of ITC, which has a unit at Bhadrachalam in Andhra Pradesh.
- ITC unveils Sunfeast biscuits in Chennai
- ITC ties up with Israeli firm for e-choupals
- Crisil gives 'AAA(SO)' to PTCs of ITC
- ITC Ltd's Internet-based rural project, è-Choupal', has won the inaugural `World
Business Award' instituted in support of the United Nation's Millennium Development
Goals
- The International Business Division (IBD) of ITC has bagged the Enterprise Business
Transformation Award for its unique web-based initiative called eChoupal. The award
68
was announced in Shanghai as part of the Wharton Infosys Business Transformation
Awards (WIBTA), for Asia Pacific.
- The international business division of ITC forays into trading of organic farm products
segment
- Web based e-choupal programme of ITC bags inaugral 'World Business Award at
International World Congress on June 8, 2004.
- ITC introduces new special incense gift packs in Bangalore
2005
- ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality
Management System certification ISO 9001:2000 for investor servicing.
- ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility
(CSR) in Emerging Economies for 2005'.
- ITC Ltd signs an MoU with Tripura Government for a bamboo development
programme.
- ITC unveils new `5-in-1' agarbattis
- ITC unveils Èxpressions Regalia'
- ITC e-Choupal gets Development Gateway Award
- ITC unveils Candyman Cofitino
69
2006
- ITC forges alliance with Tilda for DNA-tested basmati
- ITC ties-up with Marubeni for food biz
2007
- ITC Ltd. has informed that the Board of Directors of the Company at the meeting held
on July 27, 2007, appointed :
(i) Mr. A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating
the Specified Undertaking of the Unit Trust of India (SUUTI),
(ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC)
as an Additional Director of the Company, representing LIC,
(iii) Dr. R. K. Kaul, General Manager - National Insurance Company Limited, as an
Additional Director of the Company, representing General Insurers' (Public Sector)
Association of India,
(iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of the
Company, and
(v) Mr. S. B. Mathur, as an Additional Non-Executive Independent Director of the
Company.
- ITC acquires Australian agri-biotech co.
70
Chapter 3
Dabur India
71
Profit Growth Chart of last five years of company is as follows :
Dabur India
400 373.55
350 316.77
300 252.08
250
189.08
200 148.02
150
100
50
0
2005 2006 2007 2008 2009
year
profit
72
Different Types Stock Charts of Dabur India Ltd. For Second Quarter of 2009
In the above line chart of Dabur India Ltd we have seen that the trend is going to
the upward till first week of august and after that there is huge down trend where the
volume shows the good amount of buying but because of divergence the trend line
contradict itself . We have even seen the Descending Triangle Pattern, which we have
seen in the month of July and even in the month of August there is a Rounding Bottom
Situation.
73
In the above Candle Stick Chart of Dabur India Ltd. we have come across with
the Reversal Head and Shoulder Pattern which concludes that the support is 120 and
the resistance level is at 140. Hear, we even want to say that the exponential moving
average has shown upward trend till the month of August and then, when there is
negative divergence the exponential moving average is also following down.
74
In the above Bar Chart of Dabur India Ltd. we have seen the symmetrical triangle
in figure above is a pattern in which two trend-lines converge toward each other. This
pattern is neutral in that a breakout to the upside ordownside is a confirmation of a trend
in that direction.
75
Proctor &Gamble
76
77
P&G
200 178.85
180
160 139.51 131.42
140 124.61
120
100 89.82
80
60
40
20
0
2005 2006 2007 2008 2009
years
profit
Different Types Stock Charts of Proctor & Gamble For Second Quarter of 2009
78
In the above chart of P & G we have noticed that the flow of trend is going
upward but the rate of flow of upper trend is quit slow in the beginning of July then it
falls in the first week of August and then again it raise upward due to buying pressure
which we have noticed in the volume and it goes to the 1600 mark and again come to
1450 due to divergence.
79
A rounding bottom chart pattern looks similar to a cup and handle pattern but
without the handle. The long-term nature of this pattern and the lack of a confirmation
trigger, such as the handle in the cup and handle, make it a difficult pattern to trade.
In the above Candle Stick Chart of P&G in the month of August there is a
Rounding Bottom Pattern. And whenever there is rounding bottom pattern the future
trend must be upward in nature or else we can say that it is a long term reversal pattern
that signals a shift from a downward trend to an upward trend. We have also noticed that
during the month of July and August there is very lower amount of divergence but in the
month of September there is a good amount of divergence and also the share price of
company is also going upward. So there must be a co-relationship between them.
80
In the Bar Chart of P&G we have noticed the same patterns which were in the
previous charts of P&G.
81
Nestle
82
Nestle
600 534.08
500 413.81
400 315.1
309.57
300 251.92
200
100
0
2005 2006 2007 2008 2009
years
profit
83
Different Types Stock Charts of Nestle India Ltd. For Second Quarter of 2009
In the above Line Chart of Nestle India Ltd. we have seen the pattern of ascending
triangle in which the upper trend line flat and while the bottom trend line is upward
sloping this is generally thought of as a Bullish Pattern. The Moving Average and
exponential are going simultaneously. But when there is rise of diversions there is a gap
between Moving Average and exponential. And even we have noticed that the trend of
the share price is upward perhaps there is lower amount of volume in the month of
August and September.
84
In an ascending triangle, the upper trendline is flat, while the bottom trendline is
upward sloping. This is generally thought of as a bullish pattern in which chartists look
for an upside breakout.
85
This responsiveness is one of the key factors of why this is the moving average of
choice among many technical traders. As you can see in figure below, a 15-period EMA
rises and falls faster than a 15-period SMA. This slight difference doesn’t seem like
much, but it is an important factor to be aware of since it can affect returns.
86
ITC
87
Profit Growth chart of last five years of company is as follows :
ITC
3,500.00 3,120.10 3,263.59

3,000.00 2,699.97
2,500.00 2,191.40 2,235.35
2,000.00
1,500.00
1,000.00
500.00
0.00
2005 2006 2007 2008 2009
years
profit
88
Different Types Stock Charts of ITC For Second Quarter of 2009
In the above Line Chart of ITC Ltd. we have noticed that there is high amount of
volatility in the stock price and at the same time there is high amount of volume in the
month of July and even when the divergence are in the positive numbers the Simple
Moving Average is above the Exponential. But when there is a negative divergence it has
totally get reversed which we can see in the month of August.
89
In the above Candle Stick Chart of ITC Ltd. we have noticed that there is a
pattern of Head and Shoulder where head is in the end of July and the necklines are in
the middle of July and middle of August. In this pattern the neckline is a level of support
but there may be a trend reversal in which the support turned in to resistance. So there
must be a new support line and the trend is going to be downward in the near future.
90
In the above Bar Chart of ITC Ltd. we have observed that there is pattern of
Descending Triangle which we have drawn in the chart which shows that there is a
general bearish pattern from which we look for a downside breakout. And also we have
noticed that there is high amount of selling of stocks in the month of September. There is
one top which is 250 in the end of July and after that it never comes again. So we
consider that as a resistance and there is support line which is at 220.
91
Chapter 4
Conclusion
Though Technical Analysis is considered more of an art rather than science and
from academic perspective it might not have got the due recognition but it has been found
that if used with a discipline it can serve as a complementary tool to fundamental analysis
i.e. fundamental Analysis can be used for making Buy/Sell decision whereas Technical
Analysis can be used for deciding a right time to buy/sell.
From our study of Technical Analysis we conclude that Dabur India Ltd has
shown a trend reversal pattern and somewhere it even shows continuation pattern.
Noticed that there is a Descending Triangle Pattern and at the same Time Rounding
Bottom is also there. So basically it will be growing in the near feature. As we even
noticed that there is a Reversal Head and Shoulder Bottom also known as inverse head
and shoulder is used to signal a reversal in down trend
In the case of P&G it normally shown the continuation pattern by showing

Rounding Bottom. We even noticed that in the beginning of the two months there is low
amount of volume and because of no divergence the share price not show good result.
In the case of Nestle India Ltd. we have noticed that there is continuation pattern
in which we had identified the Ascending Triangle Pattern which generally thought of a
bullish pattern. We have identified rounding top which even shows the reversal trend and
a sign of good future market.
In the case of ITC Ltd. initially we have found that there is reversal pattern in
which we identified the Head and Shoulder Top. But later we analysed that there is
continuation pattern in the middle of the August. All and above ITC Ltd. shows bullish
trend in the beginning month but later on it comes to bearish or there is a reversal pattern
where the support line is turned in to resistance line. So in the near future the price of
stock will fall.
92
Bibliography
Websites
WWW.Investopedia.com
www.icharts.in
www.moneycontrol.com
www.wikipedia.com
www.scribd.com
www.yahoofinance.com
http://www.livemint.com/2009/10/23215627/itc-profit-jumpsbeats-estima.html
Books
C.Kevin
F.M. Pandey
Ahuja
Edwards. Rpberts D. and Magee, John.
93

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A Project Report on

Amit kumar (Roll No. C-164)

Under the Guidance of :

Institute of Business Management & Research

Particular Page No.

Date: 10th Dec 2009 Amitkumar (C-164)

I am thankful to my project guide Prof. Mrs. Rajlaxmi who provided me guidance

Chapter 1 contains some basic information/introduction on Technical Analysis.

Technical Analysis is not made up of only Indicators and oscillators; it has

Fundamental analysis involves analyzing the characteristics of a company in order

What is Technical Analysis?

Technical analysis is applicable to commodities, stocks, futures, foreign exchange

How is Technical Analysis Done?

The methods used for technical analysis are:

The benefits of technical analysis are:

1. Helps to identify a trend, allowing investors to make predictions on future trends.

Drawbacks of Technical Analysis

The drawbacks of technical analysis are:

1. It draws heavily on a person’s opinion or interpretation.

Hamilton went on to say that individual shares could be manipulated. Examples of

Averages Discount Everything

The market reflects all available information. Everything there is to know is

Technical Analysis a Pseudo Science:

The Dow Theory identifies the following market movements.

Based on historical observation, Hamilton estimated that secondary movements

Lows are sometimes accompanied by a high-volume washout day.

Six basic tenets of Dow Theory

1. The market has three movements

2. Market trends have three phases

Stock prices quickly incorporate new information as soon as it becomes

4. Stock market averages must confirm each other

In Dow's time, the US was a growing industrial power. The US had

5. Trends are confirmed by volume

In recent years however, Cowles' conclusions have been revisited. William

There are basically three types of charts which are as follows:

3. Candle Stick Chart

The profile of the above companies as follows.

- The Company undertook to implement a phytopharma project at Ghaziabad U.P. This

- 45,50,520 shares allotted. Pursuant to a scheme of amalgamation of Dabur with

- An integrated facility was designed at Alwar for manufacture of Ayurvedic Veterinary

- Three domestic pharma companies - Cadila Pharmaceuticals, Shantha Biotech and

-Acquires equity in Shri Dhanwantry Educational Society

-Dabur India gets Tetra Pak award

-Dabur India inks pact with Accenture for outsourcing

-Implements `Spend visibility solution' software provided by FreeMarkets Inc to control

-Dabur ties up Uttarnachal for cancer drug

-Dabur join hands with DLF for healthcare hub

- 90 shares taken up by signatories to Memorandum of Association. 110 shares issued to

- During July-August, the Company offered 4,00,960 - 12.5% partly convertible

- Another 20,000 - 12.5% debenture were issued to employees on an equitable basis

- Rs 65 of the face value of each debentures was to be automatically and compulsorily

- Another 2,78,960 equity shares of Rs 10 each at a premium of Rs 55 per share and

- The Company undertook to set up a state-of-the-art technology health care plant at

- The Company has launched Tide detergent in India.

- The Company has launched `Project Poshan', a social marketing initiative in

- The Company was awarded Chennai-based SembCrop Logistics the prestigious

- The Company has launched Vicks Plus medicated lozenges in India.

- Procter & Gamble Co., launched BeingGirl.com.

- The Company has launched a website -- www.spraytugsmooth.com exclusively for its

-Shantanu Khosla appointed as M D of Procter & Gamble w e f June 01, 2002.

- 96,00,000 bonus shares issued in prop. 1:1.

- During 95-96, the company issued secured redeemable non-convertible debentures of

- 32,138,572 bonus shares allotted in prop. 1:2.

- Nestle has set up a parallel distribution network across the country.