Presented to: Priti Salvi Sandip Prajapati

Presented by: Anal Patel Sanket Gajjar Sweta Patel Gaurav Jain Rahil Shah

ITC was incorporated on August 24, 1910. ITC is One of India's foremost private companies with market capitalization of US$10 billion and turnover of US$3 billion. Among Indias private sector companies, ITC ranks third in pre-tax profit. It has diversified presence in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, branded apparel, packaged foods and confectionery, greeting cards and other FMCG products.

One of Indias most valuable and respected companies, which contribute to the companys revenue, employment, exports and socioeconomic development. ITC strength that aims multiple drivers of growth anchored on its time-tested core competencies: large distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skill in hotel business.

To enhance the wealth generating capability of the enterprise in a globalizing environment delivering superior and sustainable stakeholder value.

Vision

Sustain ITCs position as one of India's most valuable corporations growing value for the Indian economy and companys shareholders.

Trusteeship Customer focus Respect for people Excellence Innovation Ethical corporate citizenship

Distribution network Cost control strategy Diversification of products Extensive advertising Regular introduction of new products Innovation Maintenance of freshness and hygiene

ITC has status of one of premier company with multi product portfolio from single product. All products have influence each other to make governance in ITC. The challenge for governance is to make model that gives uniqueness of each of its business and yet strengthen the unity of company as a whole. ITC has been influence by economic liberalization and globalization. Challenge and threat they adopted

To attract large investment International governance practice

Management must have the executive freedom to drive a enterprise forward without undue restraints. These freedom of management should be exercised within a framework of effective accountability.

Strategic supervision by board of directors Strategic management by the corporate management committee Executive management of the divisional business

Audit committee Compensation committee Nomination committee Investor service committee Corporate management committee

Cornerstone of ITCs corporate governance Trusteeship Transparency Empowerment and accountability Control Ethical corporate citizenship

during 1996-2005 for instance, total shareholder returns, measured in terms of increase in market capitalization and dividend, grew at a compound rate of more than 23%per annum. The company market capitalization recently touch the milestone and symbolic US$10 billion.

In earlier time infrastructure was weak ,markets were unorganised and too many blood-sucking intermidiatories were there. These pose their own challenges to improving productivity of land and quality of crops. The unfortunate result was inconsistent quality and uncompetitive prices,making it difficult for the farmer to sell his produce in the world market. ITC proactive solution to these problems is the echouple initiative; the single largest information technology based intervention by a corporate entity in rural India.

E-choupal is a Hindi word which means village meeting place. Market is a meeting place where vendors and customers come together to de transitions. e-choupal is a virtual market place where farmers can transact directly with a processor and can realize better price for their produce.

E-choupal is potentiality and efficient delivery channel for rural development. Its single largest information technology based intervention by corporate entity in rural India. ITC accumulates information regarding weather, modern farming practices, and market prices from sources like meteorological department, agri-universities, mandies etc., and upload all information on to e-choupal web site.

Relevant & real time information

commodity prices, local weather ,news

Customized knowledge
farm management, risk management

Supply chain for farm inputs

Screened for quality, demand aggregation for

completive prices &efficient logistics Direct marketing channel for farm producers owner transaction costs better value through traceability

ITC has organized village women into microcredit group. ITC provides training to group members to handle bank accounts and understand the nuances of government development program. ITC provided venture funds that have generated hundreds of women entrepreneur.

ITC provides critical supports to schools to maximize enrolment and minimize dropouts. ITCs rural education cover 10000 children through 94 supplementary living center and support to government primary school. The company reserves one rupee out of every classmate note book sold towards rural development initiatives including primary education in villages. It provides students with uniform and books.

E- environment H- health S- safety This philosophy which recognizes the need to preserve and enrich the environment and provide a safe and healthy workplace for their employees.

dissemination of the information and provide appropriate training to enable all employees to accept individual responsibility for environment, health and safety. To provide and maintain facility, equipment, operation and working condition. To ensure safe handling of the material that are classified as hazardous to health and environment. reduce waste and promote recycling of materials. Proactively share information with business partners. To instill a sense of duty in every employee towards personal safety.

Forbes A-List for 2004, featuring 400 of "the world's best big companies ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF).

Year 2011

Award The Padma Bhushan, one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation.

2010
2007 2006

The U.S.-India Business Council (USIBC) Award for Global Leadership.

SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich. Business Person of the Year from UK Trade & Investment, the UK Government organization that supports overseas businesses in that country. Inducted into the `Hall of Pride' by the 93rd Indian Science Congress. Honored with the Teacher's Lifetime Achievement Award. Manager Entrepreneur of the Year from Ernst & Young. Retail Visionary of the Year from Images, India's only fashion and retail trade magazine.

2006
2005 2001

1998
1996 1994 1986

Honorary Fellowship from the All India Management Association

Distinguished Alumni Award from IIT, Delhi. Marketing Man of the Year from A&M, the leading marketing magazine. Meridian Hotelier of the Year.

In 1905,British American Company(BAT) set up peninsular Tobacco company in India. peninsular was involved in cigarette production,tobacco procurement and processing. In 1910 it set up full fledged sales organization named imperial tobacco company of india. BAT set up another manufacturing unit in bangalore in 1912.

In july 1912 Indian Leaf Tobacco was incorporated to handle the raw material requirement. By 1919 BAT had transferred its holding in peninsular and ILTC to Imperial Tobacco Company. Throughout the 1920 Imperial Tobacco Company appointed distributors and agents in various parts of the country. Due to faster growing in sales Imperial set up its third factory in UP in 1924. In 1925 Imperial set up a printing factory at Munger . In 1928 head office in Calcutta was inaugurated.

In march 1995 BAT had a press released expressing a lack of confidence in K.L.Chugh,the chairmain of its indian subsidory and demanded his resignation. Reason was that the chugh had forcably asked BAT to increase his stake in ITC and BAT was not in favour of diversification of ITCs. BAT had shown the reason of resignation that there were financial irregularities in the company instead of shareholding issue hence ITC was surprised. Chug had called press conference and cleared that he would not be step down and cleared his stand that BAT was trying to increase its stake and wanted to use ITCs funds for its own benefits and also said that ITC did not need BAT.

Due to the allegations and counter allegations of the ITC-BAT in media ,image of the ITC dropped down.

Audit committee conformed charge of financial irregularities which whowever cleared chugh of all charges. Then unexpectadly chugh announced his resignation stating that the difference of opinion between him and BAT was not good for the growth of the company. Then surprisingly BAT had aggred to drop all charges against chugh ang gave him good package and offerd him as a chairman position at ITC. Still investigsting public are not aware of the reasons for the sudden spart and real terms of the hatch-up between BAT and chugh.

Though so many global honours on ITC & its social commitment to social responciblity,ITC got serious trouble for fera violation. In oct 1996 various investigation agencies had raided various ITC offices in Calcutta for FERA violation. After finding evidence on 30th oct 1996 ,ED(Enforcement Directrorate) officials arrested various Executive persons of ITCs for interrogations under section 35 of FERA for international trading deales during 1991-1995 by ITC. By the Nov 1996 total 15 officials arrested including J.N.Sapru and Krishen Lal Chugh .

For the first time in indian corporate history,the entire board of directors of a company has been held liable for irregularities ,leading to serious debat regarding the stringent FERA regulations and the need for efficient corporate governance practices in companies. The issue was discussed in both the house of parlament where MPs accused ITC of poor corporate governance practice and lack of transperancies and wanted to investigate in to the matter by department of companies affairs in the interest of shareholders. Inspite of good financial result of 1996-1997,image of the company got spoiled due to above issues.