Itc Company Profile

1)Introduction ITC is one of India's foremost private sector companies with a market capitalisation of nearly US $ 14 billion and a turnover of over US $ 5 billion.* ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine,

among

India's

Most

Respected

Companies

by

BusinessWorld and among India's Most Valuable Companies by Business

Today.

ITC

ranks

among

India's

`10

Most

Valuable

(Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty

Papers,

Packaging,

Agri-Business,

Packaged

Foods

&

Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain

growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment

management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,60,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation. For the Shareholder."

2)History 

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most

venerated

landmarks.

The

Company's

ownership

progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle

Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. 

Though the first six decades of the Company's existence were primarily

devoted

Cigarettes

and

to

the

Leaf

growth

Tobacco

and

consolidation

businesses,

the

of

the

Seventies

witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. 

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.



In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITCWelcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.



In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the

market

leader

in

India.

Bhadrachalam

Paperboards

amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty

Papers

Division.

ITC's

paperboards'

technology,

productivity, quality and manufacturing processes are comparable

to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. 

n 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).



In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.



Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On

the rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. 

In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.



ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.



In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled

services companies and has established itself as a key player in offshore

outsourcing,

providing

outsourced

IT

solutions

and

services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. 

ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.



In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.



ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.



ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

1)Meaning of Name 

ITC stands for “Imperial Tobacco Company” initially when it was incorporated for the 1st time in 1924. Later on the name has been changed to “Indian Tobacco Limited” in 1974. After that, in recognition

of

the

Company's

multi-business

portfolio

encompassing a wide range of businesses - Cigarettes & Tobacco,

Hotels,

Information

Technology,

Packaging,

Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'. There is no specific meaning of ITC name is given on their website. But what

I think is that it is the name given to the company to signify the operation of the company. Since ITC started its business in tobacco industry, they have chosen the name to demonstrate their nature of business and what exactly what they want to perform.

1) 

Evolution of Name

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. ITC had a humble beginning and in the initial days it used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th birthday on August 24, 1926, ITC purchased the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later company's headquarter building, 'Virginia House' came on that plot. Progressively the ownership of the company Indianised, and the name of the Company was changed to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses, the full stops in the Company's name were removed effective September 18, 2001 and the Company was rechristened as 'ITC Limited'.

1)About Logo

The logo basically showing the name of the company i.e. “Imperial Tobacco Company” and later on “Indian Tobacco Company”. Company using the logo to show their company name which is clearly understood from the logo.

2)Operation 

ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round

value

creation

is

backed

by

strong

corporate

governance policies and systems. Its main operation is related to tobacco industry of India from which the company grab maximum revenue. Additional to this company has its footprints in other sectors also. Starting from Hotel industry, FMCG foods, Personal

care,

Agarbattis,

Match

box,

Apparels,

Papers,

Greetings cards, Pens etc. ITC is one of the top conglomerates of India and the 2nd largest exporter from India. The main strength of ITC is their “Brand value” and “Distribution Channel” which has its reach at all parts of the company.

1)

Product Mix

Fig.: Product Mix of ITC

Cigarettes •

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it has a leadership position in every segment of the market. It's highly popular portfolio of brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

• The Company has been able to build on its leadership position because of its single minded focus on value creation for the consumer through significant investments in product design, innovation, manufacturing technology, quality, marketing and distribution. • All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends.

• ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas markets. In the extremely competitive US market, ITC offers high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the GCC markets through growing volumes of its brands. •

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger, Saharanpur and Kolkata. These factories are known for their high levels of quality, contemporary technology and work environment.

FMCG Foods •

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments.

•

The packaged foods business is an ideal avenue to leverage ITC's proven strengths in the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. ITC has stood for quality products for over 98 years to the Indian consumer and several of its brands are today internationally benchmarked for quality.

•

The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bengaluru.

•

Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 98 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business.

• The Foods business is today represented in 4 categories in the market. These are: • Ready To Eat Foods • Staples • Confectionery • Snack Foods • In order to assure consumers of the highest standards of food safety and hygiene, ITC is engaged in assisting outsourced manufacturers in implementing world-class hygiene standards through HACCP certification. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6 brands:

•

Kitchens of India

•

Aashirvaad

•

Sunfeast

•

mint-o

•

Candyman

•

Bingo!

Lifestyle Retailing •

ITC’s Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear, designed by the leading designers of the country.

•

With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today. The recent launch of Miss Players with its range of trendy fashion wear for young women has been a successful addition to the youthful offering. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings.

•

At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and pleasing atmosphere. The use of space is refreshing, which is reflected even in the spacious changing

rooms. Every store offers an international retailing ambience with the extensive use of glass, steel and granite, reflecting the most contemporary trends in store design, thereby creating a splendid backdrop for the premium offerings. •

Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of India recently. Wills Lifestyle has been twice declared 'The Most Admired Exclusive Brand Retail Chain of the Year' at the Images Fashion Awards in 2001 & 2003 as well as 'Most Admired Fashion Brand of the year - Fashion Forward' in 2009.

Personal Care •

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care

portfolio

brings

world-class

products

with

clearly

differentiated benefits to quality-seeking consumers. •

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally.

• ITC's state-of-the-art manufacturing facility meets stringent requirements practices.

of

hygiene

Contemporary

and

benchmarked

technology

and

manufacturing the

latest

manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal. • Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product

formulations

use

internationally

recognised

safe

ingredients, subjected to the highest standards of safety and performance.

Education & Stationary products • ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering. • Today, ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include, a.

Manufacturer of India’s first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard.

b.

Knowledge of image processing, printing & garnered from its Packaging & Printing Business.

conversion

c. Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business. •

ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”, with Classmate addressing the needs of students and

Paperkraft

targeted

towards

college

students

and

executives. •

Classmate - India’s truly largest National brand, reaching 65,000 outlets across the country, has over 300 variants in its

range which comprises notebooks, long books, practical books, drawing books, scrap books, reminder pads etc. •

The Classmate Fun N Learn range of children books targeting pre school learners, comprising categories like Pre School Learner, Active Minds and Read Aloud Tales with features like Wipe n Use again, Trace & Color and Puzzles ensure that a child's first lessons are truly enjoyable.

•

Classmate Invento Geometry Boxes, launched for school students comprise a world-class precision compass and high quality plastic instruments coupled with interesting trivia and useful information, to make geometry more fascinating for students.

•

Aesthetically designed, Classmate pens offer the consumer a smoother and more comfortable writing experience through use of ergonomic design, reducing the effort required for writing. The initial launch comprises ball pens - Classmate Safari and Classmate Ilet - and gel pens - Classmate Glider and Classmate Octane.

•

A new entry to the Classmate portfolio is its range of HB Jet Black pencils. Designed attractively for school kids, the pencils offer a unique advantage of lesser lead wear out and thus, “Stay Sharper for Longer”.

• The Classmate Notebook range builds in regional preferences and caters to the requirements of All India & State Education Boards. Every Classmate notebook carries ITC's Corporate Social Responsibility message on its back. For every four Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative that supports, among other projects, primary education in villages.

•

Classmate has successfully run the “Classmate Young Author & Artist Contest” for 5 years. The contest is a national level event going across 34 cities and getting participation from 5000 schools.

•

The Paperkraft range consists of premium stationery with a wide variety for executives to choose from. The assortment consists of notepads & multi subject notebooks in hard, soft covers & multiple binding formats including spirals, wiros etc.

•

The Paperkraft brand recently launched premium business paper – an environment friendly multipurpose paper for office and

home

use.

The

paper

has

been

crafted

by

ITC’s

Bhadrachalam unit using a pioneering technology, called “Ozone Treated

Elemental

Chlorine

Free

technology”.

Paperkraft

business paper is the whitest and brightest 75 & 70 GSM papers manufactured in India and provides consumers an opportunity to “Go Green”.

Safety Matches

• As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the small-scale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. •

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim Mega and Aim Metro. With differentiated product features and innovative value additions, these brands

effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned subsidiary of ITC has consolidated the market standing of the Company's Matches business through synergy benefits

derived

through

combined

portfolio

of

offerings,

improved servicing of proximal markets and freight optimization. Through

its

participation,

ITC

aims

to

enhance

the

competitiveness of the small and medium scale sectors through its

complementary

R&D

based

product

development

and

marketing strengths, especially the breadth and depth of the Company's trade marketing and distribution.

Agarbattis • As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (incense sticks) sourced from small-scale and cottage units in 2003. This business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the business, ITC aims to enhance the competitiveness of the small and medium scale sectors through its complementary R&D

based product development and strengths in trade marketing and distribution. •

Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.

•

Mangaldeep Yantra is a special offering from ITC and this specially created fragrance evokes the ambience of a temple. The premium range from ITC, Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has recently been accredited with IFAT certification, which is an internationally recognized benchmark for fair trade practices.

•

Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of multiple fragrances in a single pack. Mangaldeep appeals to a cross-section of consumers with offerings at various price points. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry dominated by multiple local brands.

•

In line with ITC's Triple Bottom Line philosophy of every business contributing to the nation's economic, environmental and social capital, Mangaldeep agarbattis are manufactured by small scale and cottage units, providing livelihood opportunities for more than 5000 people. Seven out of 10 Mangaldeep Agarbatti manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an ITC

initiative to improve the quality of raw agarbatti production and provide better value realization for women rollers. Under the project, ITC has extended support to NGOs in states and like Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units, training village women in rolling agarbattis and employing them in these units. • Expressions Aromatic Candles ○

Leveraging its deep consumer insight, ITC's Agarbatti business

recently

launched

"Expressions"

Premium

Range of Aromatic Candles in India through Wills Lifestyle Stores. Research on usage and attitude reveals a strong linkage of candles to attributes like Romance, Decoration and Wellness (Aromatherapy). ○

The Expressions range of Aromatic candles comprises Amour - the Romance Series, Adora - the Decor Series and Nirvana - the Spa Series. The basis of segmentation is colour and fragrance - Red for romance, Purple for décor and Green for wellness. The fragrance of the candles have been specially selected are made from the finest perfumes and oils. Each candle's fragrance, shape and design are carefully chosen with a distinct sensation

and

ambience

in

mind.

Ideal

for

gifting,

Expressions Aromatic Candles promise to soothe, uplift and transform.

Hotels •

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80 destinations,

ITC-Welcomgroup

has

set

new

standards

of

excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels business is one of India's finest and fastest growing hospitality chains. ITC Hotels' commitment

to

delivering

globally

benchmarked

services,

embedded in a culture deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct identity. • A leader in the premium hospitality segment, ITC Hotels have had the privilege of hosting world leaders, Heads of State and discerning guests from across the world and within. •

ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in the hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the 'Executive Club'. Each of these caters to specialized needs of the global business traveller with unmatched quality and a range of custom-made services.

•

ITC-Welcomgroup was the first to introduce branded

cuisine.

Its

restaurants

Bukhara,

Dakshin and DumPukht are today powerful cuisine brands. ITC-Welcomgroup also showcases international cuisine in its specialty restaurants West View and Pan Asian.

•

ITC has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travellers. ITC-Welcomgroup has an exclusive tie-up with global partner Starwood for its top of the line premium brand, the 'Luxury Collection'. ITC Hotels was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a threedecade exclusive partnership.

•

ITC-Welcomgroup's properties are classified under four distinct brands:

• ITC Hotels - Luxury Collection •

In 2007, ITC-Welcomgroup entered a new phase in its collaboration with Starwood

Hotels

&

Resorts.

ITC-

Welcomgroup now has an exclusive tieup

with

premium

Starwood brand,

in

bringing

the

its

'Luxury

Collection', to India. These are super deluxe and premium hotels located at strategic business and leisure locations. The seven hotels which are part of this collection are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand Central in Mumbai, ITC Windsor in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. •

WelcomHotels offer five-star hospitality for the discerning business and leisure traveller. hotels

Currently under

WelcomHotel

there

this Rama

are

brand

three namely,

International

Aurangabad, WelcomHotel

Vadodara

and

WelcomHotel

Grand Bay Vishakhapatnam. Four other ITC-Welcomgroup Sheraton

Hotels

–

Sheraton

Rajputana

Hotel

Jaipur,

Sheraton Chola Hotel Chennai and Sheraton New Delhi offer warm, comforting services to the global traveller and a chance to connect. •

Fortune properties

Hotels all

offer

over

full

India,

service including

smaller towns and cities, ideal for the budget traveller. Fortune Hotels have a

strong

presence

in

Ahmedabad,

Thiruvananthapuram, Calicut, Darjeeling, Jamshedpur,

Vapi,

Hyderabad, Gurgaon, Indore, Ootacamund, Madurai, Jodhpur, Vijaywada, Chennai, Visakhapatnam, Mahabalipuram, Kolkata, Bengaluru, Navi Mumbai, Tirupati and Port Blair, while several more hotels are expected to be commissioned soon in other key locations in India. •

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a unique experience. WelcomHeritage

endeavours

to

preserve ancient royal homes and the historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage provides a fine range of hotel services inside these architectural legacies present in Rajasthan, Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal, Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal

Pradesh, Uttar Pradesh, Maharastra, Kerala, Andhra Pradesh and Puducherry. •

Welcom Environment

•

WelcomEnviron is ITC-Welcomgroup's vision for a green world. It's a multi-faceted programme started in order to propagate environmental causes in the cities where ITC-Welcomgroup's hotels are located. With the guiding principle of 'Reduce, Reuse and

Recycle',

each

hotel

has

its

own

programme,

encompassing local participation, creating awareness among employees and internal conservation. • ITC Green Centre •

The ITC Green Centre in Gurgaon, the headquarters of ITC's Hotels Business is

the

physical

commitment Ecological,

expression

to

Social

of

this

sustainability and

-

Economic.

This building is one of the world's largest green buildings with space of over 170,000 square feet and the first non-commercial complex in the country to be awarded the United States Green Building

Council-Leadership

in

Energy

and

Environmental

Design's (USGBC-LEED) platinum rating - the highest in the order. •

At ITC Green Centre, energy consumption has been reduced significantly through design integration. The building has been designed to maximize the effect of natural light during daytime, largely eliminating the need for artificial ones. At the same time, the window glass, while allowing light inside, does not allow heat. This not only keeps the office cool from inside during the day, but also decreases the load on air-conditioners. Again, there

is minimum exterior lighting to limit night sky pollution. The water consumption has dropped by 40 per cent and, with a water re-cycling plant, the building is now a zero water discharge building. •

ITC Welcomgroup - Empowering Differently-abled people

•

ITC-Welcomgroup has established that if provided with an opportunity to work and become self-sufficient, people who are differently abled can significantly contribute to the workplace, families and the community. ITC-Welcomgroup has taken a positive step in this direction by employing people who are differently abled across its hotels. ITC-Welcomgroup believes that everyone should be treated with sensitivity and empathy. The models it has created have been effective and have succeeded in sensitising other employees to the needs of those differently-abled. Keeping in mind their specific skills, over 100 differently abled have been employed in diverse functions like housekeeping, teleworking, bakery and as musicians. Special badges for the visually impaired, whistles for hearing impaired employees to use in an emergency and sign language classes for the staff to communicate with them are just a few examples of how ITC-Welcomgroup has created an atmosphere of sensitivity and caring.

Paperboard and Speciality papers ITC’s Paperboards and Specialty Papers Division is India’s largest and most technologically advanced paper and paperboards business. ITC caters to a wide spectrum of packaging, graphic, communication, writing, printing and specialty paper requirements through its four world-class

mills

in

India.

Having

pioneered

many

speciality

applications like cigarette tissues, packaging boards, aseptic cartons and gypsum liners, ITC’s Paperboards and Specialty papers business enjoys market leadership in the value-added paperboards segment, and also has a significant share of the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Packaging ITC's Packaging & Printing Business is the country's largest convertor of paperboard into packaging. It converts over 50,000 tonnes of paper and paperboard per annum into a variety of valueadded packaging solutions for the food & beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. It has also entered the Flexibles and Corrugated Cartons business. The Division, which was set up in 1925 as a strategic backward integration for ITC's Cigarettes business, is today India's most sophisticated packaging house. State-of-the-art technology, worldclass quality and a highly skilled and dedicated team have combined to position ITC as the first-choice supplier of high value added packaging. The Division supplies value-added packaging to the Company's Cigarettes business. Its client list includes several well-known national and international companies like British American Tobacco, Philip Morris

International,

Surya

Nepal

Private

Limited,

VST

Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India Pvt Ltd., Pernod Ricard, Allied Domecq, Whyte & Mackay, Hindustan Lever, Tata Tetley, Nestle and Reckitt Benkiser India Limited, etc. With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and Haridwar in Uttarakhand certified to ISO

9001, ISO 14001 and OHSAS 18001, the Company offers a comprehensive product range in packaging: Flip-top boxes

Display outers

Shells and Slides

Soft cup

and strap Labels Bundle Wraps

Flap boxes

Inner Frames

Coupon Inserts

Folding Cartons Fluted Cartons

Shoulder Boxes

Pre-printed cork tipping

Flexibles Packaging ITC occupies a leadership position in cigarette and liquor packaging in India. It supplies packaging to cover 70 billion cigarettes a year domestically, and supplies packaging for 15 billion cigarette sticks a year for the export market. It is the largest supplier of liquor mono cartons in the country. ITC has enhanced the value of some of the most favoured brands with superior look-and-feel packaging, using the best raw materials and process combinations, and an in-house pre-press Design Centre. A Product Introduction Process team pioneers packaging innovations. The team uses a unique process to pilot the client's packaging through its manufacturing system. Specifications are evolved based on clients' needs. Corresponding to the specifications, a variety of packaging solutions is then generated. The efficacy of the packaging is tested simulating the client's factory conditions.

E-Chaupal ITC's pre-eminent position as one of India's leading corporates in the agricultural

sector

is

based

on

strong

and

enduring

farmer

partnerships, that has revolutionized and transformed the rural agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices. ITC's Agri Business Division is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports of: •

Feed Ingredients - Soyameal

• Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses • Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil • Marine Products - Shrimps and Prawns • Processed Fruits Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic Fruit Products, Fresh Fruits • Coffee & Spices - Coffee, Black Pepper, Chilly, •

Turmeric, Ginger, Celery and other Seed Spices Farmer empowerment through e-Choupals

ITC's unique strength in this business is the extensive backward linkages it has established networking

with

the

with

farmers. the

This

farming

community has enabled ITC to build a highly system.

cost ITC

effective has

procurement

made

significant

investments in web-enabling the Indian

farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres around providing Internet kiosks in villages. Farmers use this technology infrastructure to access on-line information from ITC's farmer-friendly website www.echoupal.com. Data accessed by the farmers relate to the weather, crop conditions, best practices in farming, ruling international prices and a host of other relevant information. e-Choupal today is the world's largest rural digital infrastructure. The unique e-Choupal model creates a significant two-way multidimensional channel which can efficiently carry products and services into and out of rural India, while recovering the associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6200 installations covering nearly 40,000 villages and serving over 4 million farmers. Currently, the 'e-Choupal' website provides information to farmers across the 10 States of Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu. Over the next 5 years it is ITC's Vision to create a network of 20,000 e-Choupals,

thereby

extending

coverage

to

100,000

villages

representing one sixth of rural India. Supporting the e-Choupal network are ITC's procurement teams, handling agents and contemporary warehousing facilities across India,

enabling

its

Agri

Business

to

source

identity-preserved

merchandise even at short notice. ITC's processors are handpicked, reliable high quality outfits who ensure hygienic processing and modern packaging. Strict quality control is exercised at each stage to preserve the natural flavour, taste and aroma of the various agri products.

•

Choupal Saagar

Following the success of the e-Choupal, the

Company

launched

Choupal

Saagar, a physical infrastructure hub that comprises collection and storage facilities

and

hypermarket

a that

unique offers

rural multiple

services under one roof. This landmark infrastructure, which has set new benchmarks for rural consumers also incorporates farmer facilitation centres with services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment services, fuel station etc. 24 'Choupal Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing initiative to establish a chain of 100 Choupal Saagars in the near future. Choupal Fresh Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture produce like fresh fruits and vegetables. Three Choupal Fresh Cash & Carry Stores and Six Choupal Fresh retail stores are currently operational at Hyderabad. The company has also set up a complete cold chain for ensuring the availability of fresh products in the market, besides directly sourcing farm fresh produce from the farmers. •

Choupal Pradarshan Khet

In line with its mission of improving the quality of life in rural India, ITC's Agri

Business

flagship

has

extension

launched

a

programme

called 'Choupal Pradarshan Khet' (CPK) or demonstration plots to help

farmers

enhance

farm

productivity by adopting agricultural best practices. Started in 200506, the crop portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram, mustard, sunflower and potato. This initiative, has covered over 70,000 hectares and has a multiplier impact and reaches out to 1.6 million farmers. Processed Fruits In line with its strategy of achieving a higher order of value capture, the business also focuses on the value added segment, steadily enhancing its basket of offerings with several new products. These include frozen foods, IQF (individually quick frozen) fruits, niche products like baby-food quality purees and high brix pulp and organic purees. ITC seeks to focus on this segment and exploit the market opportunity for tropical fruits and fruit products, where India has a natural advantage of growing the complete range, including exotic varieties. In Processed Fruits category, ITC exports from HACCP certified plants to Western Europe, North Africa, West Asia, Japan and North America, a wide range of Processed Fruit products made from Mango (Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC is the leading Indian exporter of Organic Fruit Products certified to European (EC 2092/91) and US (NOP) Standards.

Fresh

Table Grapes

& Pomegranates

are sourced

from

ITC's

EUREPGAP certified farmer groups & retailed through prominent supermarkets like Sainsbury's and Albert Heijn in Europe and Daiei in Japan. Marine Products ITC has been a significant exporter of seafood from India since 1971. It exports frozen as well as cooked shrimps and other seafood products to Japan, USA and Europe. Its well-known brands include Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular. • A customer centric approach ITC's Agri Business Division continues to use innovation as its core strategy to retain its position as the one-stop shop for sourcing agricommodities from India. Besides setting benchmarks in quality, reliability and value-added services, ITC is a trendsetter in customer care particularly in commodity trading. Major customers include Cargill, Marubeni, Toepfer, among others, who source agriculture commodities and food products from India. Customers can log onto www.itcibd.com, and readily access information on crop production and forecast, market updates, the latest shipment status and the prevailing foreign exchange rates. Sourcing for ITC ITC's Agri business is progressively aligning its commodity portfolio with the sourcing needs of the Company's Foods business to generate higher order value from its agri procurement infrastructure. The business has commenced procurement of chipstock potatoes, one of the critical raw materials in the manufacture of the Company's

'Bingo!' brand of potato chips. The acquisition of Technico, an Australian company with technology leadership in the production of early generation seed potatoes, helped the business access a ready pipeline of new high-yielding varieties of chipstock potato seeds.

1)Chairman The chairman of ITC limited: ➢ Yogesh Chander Deveshwar

Executive Directors: ➢ Sahibzada Syed Habib –ur-Rehman ➢

Anup Singh

➢

Krishnamoorthy Vaidhyanath

1)Critical Events that change the course 

Indian rural and agri. market is 70% to other resources in India ,but only 30 % of GDP is from agriculture sector . ITC realized it that their cigarette business has a limit further which they wont be able to tap profit and their expansion plans. So diversification was needed in any case to build a foothold in Indian market.



FMCG bieng the fourth largest sector in the field which is expanding at a very fast pace and it has huge potential , along

with the benefit that it can be accrued by organizing the existing fragmented market leading to concept of ‘one stop shop’. 

Further India being one of the largest economies with the benefit of its vast market, it attracted ITC to expand its operation in various areas of hospitality, FMCG ,Greeting cards Branded Apparels etc.

1)The Responsibility Factor Preamble Over the years, ITC has evolved from a single product company to a multi-business corporation. Its businesses are spread over a wide spectrum, ranging from cigarettes and tobacco to hotels, packaging,

paper

and

paperboards

and

international

commodities trading. Each of these businesses is vastly different from the others in its type, the state of its evolution and the basic nature of its activity, all of which influence the choice of the form of governance. The challenge of governance for ITC therefore lies in

fashioning

a model

that addresses the

uniqueness of each of its businesses and yet strengthens the unity of purpose of the Company as a whole. Since the commencement of the liberalisation process, India's economic scenario has begun to alter radically. Globalisation will not only significantly heighten business risks, but will also compel Indian companies to adopt international norms of transparency and good governance. Equally, in the resultant competitive context, freedom of executive management and its

ability to respond to the dynamics of a fast changing business environment will be the new success factors. ITC's governance policy recognises the challenge of this new business reality in India.

Definition & Function ITC defines Corporate Governance as a systemic process by which companies are directed and controlled to enhance their wealth generating capacity. Since large corporations employ vast quantum of societal resources, we believe that the governance process should ensure that these companies are managed in a manner that meets stakeholders aspirations and societal expectations.

Core Principles ITC's Corporate Governance initiative is based on two core principles. These are : i.Management must have the executive freedom to drive the enterprise forward without undue restraints; and ii.This freedom of management should be exercised within a framework of effective accountability. ITC

believes

that

any

meaningful

policy

on

Corporate

Governance must provide empowerment to the executive management of the Company, and simultaneously create a mechanism of checks and balances which ensures that the decision making powers vested in the executive management is not only not misused, but is used with care and responsibility to meet stakeholder aspirations and societal expectations. Cornerstones

From the above definition and core principles of Corporate Governance emerge the cornerstones of ITC's governance philosophy, namely trusteeship, transparency, empowerment and accountability, control and ethical corporate citizenship. ITC believes that the practice of each of these leads to the creation of the right corporate culture in which the company is managed in a manner that fulfils the purpose of Corporate Governance. Trusteeship: ITC believes that large corporations like itself have both a social and economic purpose. They represent a coalition of interests, namely those of the shareholders, other providers of capital, business associates and employees. This belief therefore casts a responsibility of trusteeship on the Company's Board of Directors. They are to act as trustees to protect and enhance shareholder value, as well as to ensure

that

the

Company

fulfils

its

obligations

and

responsibilities to its other stakeholders. Inherent in the concept of trusteeship is the responsibility to ensure equity, namely, that the rights of all shareholders, large or small, are protected. Transparency: ITC

believes

that

transparency

means

explaining

Company's policies and actions to those to whom it has responsibilities.

Therefore

transparency

must

lead

to

maximum appropriate disclosures without jeopardising the Company's strategic interests. Internally, transparency means

openness

in

Company's

relationship

with

its

employees, as well as the conduct of its business in a

manner that will bear scrutiny. We believe transparency enhances accountability. Empowerment and Accountability: Empowerment is an essential concomitant of ITC's first core principle of governance that management must have the freedom to drive the enterprise forward. ITC believes that empowerment is a process of actualising the potential of its employees.

Empowerment

unleashes

creativity

and

innovation throughout the organisation by truly vesting decision-making powers at the most appropriate levels in the organisational hierarchy. ITC believes that the Board of Directors are accountable to the shareholders, and the management is accountable to the Board of Directors. We believe that empowerment, combined with accountability, provides an impetus to performance

and

improves

effectiveness,

thereby

enhancing shareholder value. Control: ITC believes that control is a necessary concomitant of its second core principle of governance that the freedom of management should be exercised within a framework of appropriate checks and balances. Control should prevent misuse of power, facilitate timely management response to change, and ensure that business risks are pre-emptively and effectively managed. Ethical Corporate Citizenship: ITC

believes

responsibility

that to

set

corporations exemplary

like

itself

standards

have of

a

ethical

behaviour, both internally within the organisation, as well

as in their external relationships. We believe that unethical behaviour corrupts organisational culture and undermines stakeholder value.

1)What make them different from others  Brand  Management  Distribution Channel

1)Contact

Registered Office VIRGINIA HOUSE 37 J.L.NEHRU ROAD, KOLKATA 700 071 EPABX NO. : 91-(0)33 22889371

Communications Department-wise Fax VIRGINIA HOUSE Ground Floor Merchandising

Fax 22881417

Taxation

Fax 22880842

Blending Marketing PD 1st Floor Corporate Accounting

Fax 22881256

India Tobacco Division Accounting

Fax 22882256/ 22882070

2nd Floor General Chairman Directors

Fax 22882257

Communication Room Corporate Financial Controller 3rd Floor General

Fax 22882251

Engineering Engineering Marketing Production

Fax 22880188

Leaf Purchasing 4th Floor India Tobacco Division Board (ITD) Human Resources - ITD ITD Finance

Fax 22882953

T&RA

ITC CENTRE 1st Floor Corporate Funds & Planning

Fax 22880826