Diversification is a buzzing word in the present business world. It is the strategy for growth where a business ventures into new product line and or markets. A survey of literature on this issue shows that this strategy along with its effects has been explored by many researchers, but very little work has been done on Indian context. In India, ITC Ltd can be recognized as one of the biggest and most successful conglomerate, whose diversification has been a prime strategy of growth. In the present study, a modest attempt was made to make a comparative analysis of the impact of diversification strategy on the association between profit earning capability of ITC Ltd with its asset management efficiency in the pre and post-diversification periods. The period of study considered here was from 1994-95 to 2013-14, which was segregated into pre-diversification and post-diversification period. 

KEYWORDS: Diversification, Profitability, Asset Management Efficiency.