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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 to the growth and consolidation of the
Cigarettes and Leaf Tobacco businesses, 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 'ITC-
Welcomgroup 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 of hygiene and benchmarked manufacturing
practices. Contemporary technology and 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 & conversion


garnered from its Packaging & Printing Business.

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 three-
decade 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 tie-
up with Starwood in bringing its
premium brand, the '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. Currently there are three
hotels under this brand namely,
WelcomHotel Rama 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 Hotels offer full service


properties all over India, 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 expression of this
commitment to sustainability -
Ecological, Social 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 value-
added 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, world-
class 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 with the farmers. This
networking with the farming
community has enabled ITC to build a
highly cost effective procurement
system. ITC has 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 multi-
dimensional 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 a unique rural
hypermarket that offers 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 has launched a
flagship extension programme
called 'Choupal Pradarshan Khet'
(CPK) or demonstration plots to
help farmers enhance farm
productivity by adopting agricultural best practices. Started in 2005-
06, 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 agri-
commodities 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 that corporations like itself have a
responsibility to set exemplary standards of 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
Fax 22882256/
India Tobacco Division Accounting
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
Fax 22882953
ITD Finance
T&RA

ITC CENTRE
1st Floor
Corporate Funds & Planning Fax 22880826