PROJECT REPORT

ON

AN ANALYSIS OF PRODUCTS AND MARKET OF ITC

COMPANY
SUBMITTED IN PARTIAL FULFILLMENT FOR THE
AWARD OF THE
DEGREE OF BACHELOR OF BUSINESS
ADMINISTRATION 2015-16
UNDER THE GUIDANCE OF
MS. PARUL DESHWAL

SUBMITTED BY
Ayushi Singh
ROLL NO- 05214901714 BBA 3RD SEM C SECTION

1
 Table of Contents

Student declaration………………………………………………………..i

Certificate from Guide…………………………………………………….ii

Acknowledgement…………………………………………………………iii

Executive Summary………………………………………………………..iv

Chapter Scheme……………………………………………………………v

List of Tables……………………………………………………………….vi

List of Graphs………………………………………………………………vii

List of Charts……………………………………………………………….viii

List if Abbreviations, if any…………………………………………………ix

Page no.

CHAPTER INTRODUCTION 8 - 11
1.1 Purpose of the study………………………………………………..

1.2 Research Objectives of the study…………………………………..

1.3 Research Methodology of the study……………………………….

1.3.1 Research Design……………………………….

1.3.2 Data Collection …………………..

1.3.3 Limitation ………………………………………….

CHAPTER -2 12 - 17

About the Organization / Company Profile……………………………………………

CHAPTER -3 18 - 68
Findings and
Analysis……………………………….…………………………………………………….

2
CHAPTER -4 69 - 70
Suggestions………………………….…………………………………………………….

CHAPTER -5 71 - 72
Conclusion and Limitation……….…………………………………………………….

Bibliography
Miscellaneous

3
 STUDENT UNDERTAKING

This is to certify that I have completed the Project titled”An analysis on product and market on

ITC company” under the guidance of “MS. PARUL DESHWAL" in partial fulfillment of the

requirement for the award of degree of Bachelor of Business Administration (BBA) at Maharaja

Surajmal Institute, New Delhi. This is an original piece of work and has not been submitted

elsewhere.

Ayushi Singh

STUDENT SIGNATURE

4
 CERTIFICATE

This is to certify that the project titled “AN ANALYSIS ON PRODUCT AND MARKET OF

ITC COMPANY”is an academic work done by “Ayushi Singh” submitted in the

partial fulfillment of the requirement for the award of the degree of Bachelor Of Business

Administration (BBA) from Vivekananda Institute of Professional Studies, Vivekananda School

of Business Studies, New Delhi., under my guidance & direction. To the best of my knowledge

and belief the data & information presented by him/her in the project has not been submitted

earlier.

MS. PARUL DESHWAL

Signatures

5
 ACKNOWLEDGMENT

I would like to thank Ms. PARUL DESHWAL without whose guidelines and
help I would not have been able to complete my project work and their
guidelines providing confidence enough to handle my project. I am in debated
to above expertise for sharing in Wright and experience with me.

I had also received encouragement and support from other faculty member
that have help me in understanding about ITC Ltd and product and its
internal structure.

6
 EXECUTIVE SUMMARY

ITC was established on Aug 24, 1910 as the Imperial Tobacco Company of India Ltd in Kolkata
and its name was changed to I.T.C. Limited in 1974 and finally they changed it to ITC Ltd in
2001. ITC has diversified presence in tobacco, foods and confectionery, apparel, paper boards,
packaging and hotel businesses. The Foods Division is the most recent diversification of the ITC
group. They entered in this business in 2001. They launched KoI brand under Ready to Eat
segment .They expanded with brand launches in the Confectionery, Staples and Snacks Food
segments.ITC has fulfilled all needs and requirements of the people. If the company maintains its
standard or increases it in the near future it surely will attain the no. 1 position in the market.
Here, through this report we try to study the environment in which ITC foods
operate, to know about its diversified business and Its CSR towards society.

7
 CHAPTER 1
INTRODUCTION

8
1.1 Objectives:
1. To study about different product and services in which ITC deals in.

2. To study about its CSR (corporate social responsibilities).

3. To know about position of ITC in Food market and its strategy.

9
1.2 RESEARCH METHODOLOGY OF THE STUDY
Research can be defined as a scientific and systematic search for pertinent information on a
specific topic. Research is a careful investigation of inquiry especially through search for new
facts in any branch of knowledge. In simple terms, research refers to search for knowledge.
Research comprises defining and redefining problems, formulating hypothesis or suggested
solutions collecting, organizing and evaluating data, making deductions and reaching
conclusions and at last carefully testing the conclusion to determine whether they fit the
formulating hypothesis.
Research methodology is away to systematically solve the research problem. It may understand
as a science of studying how research is done scientifically. In it, we study the various steps that
are generally adopted by the researcher in study of his research problem along with logic behind
them.
A Research design is a framework or blueprint for conducting the research of a project. It details
the procedures necessary for obtaining the information needed. A research design lays the
foundation for conducting the project.

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1.3 DATA COLLECTION
The data can be collected in the following two ways:

PRIMARY DATA:
The data collected by the person himself/herself for personal use with the help of questionnaires,
pie-charts, graphs, etc. This set of information is not available to anyone before the person
collects it himself/herself.

ADVANTAGES OF PRIMARY DATA:

The main advantage of Primary data is that
1. Basic Data
2. Unbiased information
3. Original data
4.Data from the primary market/ population
5. Data direct from the population.

SECONDRY DATA
The data collected by a person that had already been collected and used by some other
individual. It can be said as the re-usage of the data being collected. No questionnaires, etc. are
involved in this as the person seeks the information which is already present to him/her.
Sources of Secondary Data:
Secondary Data was collected from any magazines, newspapers, journals, articles, books or from
the internet.

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CHAPTER 2
ITC

12
COMPANY INTRODUCTION:
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.

ITC’s corporate strategies are:

 Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organisational capability with opportunities in domestic and export markets.
 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.
 Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.
 Ensure that each of its businesses is world class and internationally competitive.
 Enhance the competitive power of the portfolio through synergies derived by blending
the diverse skills and capabilities residing in ITC’s various businesses.
 Create distributed leadership within the organisation by nurturing talented and focused
top management teams for each of the businesses.
 Continuously strengthen and refine Corporate Governance processes and systems to
catalyse the entrepreneurial energies of management


 by striking the golden balance between executive freedom and the need for effective
control and accountability.

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COMPANY PROFILE AND EVOLUTION:
 ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Limited. As the Company's ownership progressively Indianised, the name of the
Company was changed from Imperial Tobacco Company of India Limited to India
Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of
the Company's multi-business portfolio encompassing a wide range of businesses - Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars,
Branded Apparel, Education and Stationery Products, Incense Sticks and Safety
Matches, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business and
Information Technology - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.
 The Company's 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.
 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' (now renamed My
Fortune, Chennai). 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

14
 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 under four brands namely, ITC Hotels - Luxury
Collection, Welcome Hotels, Fortune Hotels and WelcomHeritage.
 In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam
Paperboards Limited. 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.
 In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint
venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its
name was changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company
diversified into manufacturing and exports of garments.
 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

15
 million farmers. Also, through the 'Choupal Pradarshan Khet' initiative, the agri services
vertical has been focusing on improving productivity of crops while deepening
relationship with the farming community.
 ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To

 augment its offering and to reach a wider student population, the Classmate range of
 notebooks was launched in 2003. Classmate over the years has grown to become India's
largest notebook brand and has also increased its portfolio to occupy a greater share of
the school bag. Years 2007- 2009 saw the launch of Practical Books, Drawing Books,
Geometry
 Boxes, Pens and Pencils under the 'Classmate' brand. In 2008, ITC positioned the
business as the Education and Stationery Products Business and launched India's first
environment friendly premium business paper under the 'Paperkraft' Brand. 'Paperkraft'
offers a diverse portfolio in the premium executive stationery and office consumables
segment. In 2010, Colour Crew was launched as a new brand of art stationery.
 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 'Wills Signature', taking the event forward to consumers.
 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 - Banking Financial Services & Insurance (BFSI), Consumer

16
 Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media &
Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics.
 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
entered the fast growing branded snacks category with Bingo! in 2007. In 2010, ITC
launched Sunfeast Yippee! to enter the Indian instant noodles market. In just over a
decade, the Foods business has grown to a significant size under seven 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 and Aim.
 ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. Mangaldeep is a highly
established national brand and is available across a range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
 ITC entered the Personal Care Business in 2005. In seven years, the Personal Care
portfolio has grown under 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel' and 'Superia'
brands which have received encouraging consumer response and are also being
progressively extended nationally.
 In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market.
Armenteros cigars are available exclusively at tobacco selling outlets in select hotels, fine
dining restaurants and exclusive clubs.

17
 CHAPTER 3
FINDINGS AND ANALYSIS

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 1. Different product and services in which ITC deals
in.

ITC is serving this country through many products and services. The Company which
started with Cigarette business in year 1910 is having its foot prints almost all the
segments of business and we can say that non sector is untouched with this blue chip
company.
The Major Sector in which ITC deals in are...
1.1 FMCG
1.2 Paperboard & Packaging
1.3 Agri Business
1.4 Hotels
1.5 Information Technology

1.1 FMCG:

CIGARETTES & CIGAR

ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, ITC has
a leadership position in every segment of the market. ITC’s highly popular portfolio of brands
includes Insignia, India Kings, Lucky Strike, Classic, Gold Flake, Navy Cut, Players, Scissors,
Capstan, Berkeley, Bristol, Flake, Silk Cut, Duke & Royal.

19
 The Company has been able to consolidate its leadership position
with single minded focus on continuous value creation for consumers through significant
investments in creating & bringing to market innovative product designs, maintaining consistent
& superior quality, state-of-the-art manufacturing technology, & superior marketing and
distribution. With consumers & consumer insights driving strategy, ITC has been able to fortify
market standing in the long-term, by developing & delivering contemporary offers relevant to the
changing attitudes & aspirations of the constantly evolving consumer.

ITC's pursuit of international competitiveness is reflected in its initiatives in 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 its
export operations.

ITC's cigarettes are manufactured in state-of-the-art factories at Bengaluru, Munger, Saharanpur,

Kolkata and Pune, with cutting-edge technology & excellent work practices benchmarked to the
best globally. An efficient supply-chain & distribution network reaches India's popular brands
across the length & breadth of the country.

1.1.2 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

20
palate and the expertise required to translate this knowledge into delightful dining experiences
for the consumer. ITC has stood for quality products for over 100 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 100 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

21
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 7 brands.

1.1.3 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. With its
brands, ITC is committed to build a dominant presence in the apparel market through a robust
portfolio of offerings.

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1.1.4 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 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.

1.1.5 EDUCATION & STATIONARY:

ITC made its entry to the education and stationery business with its Paperkraft brand in the
premium segment in 2002; and later expanded into the popular segment with its Classmate brand
in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together,
Classmate and Paperkraft offer a range of products in the Education & Stationery space to the
discerning consumer, providing unrivalled value in terms of product & price.

23
Classmate and Paperkraft have become a natural extension of the consumer. Meticulous
understanding of consumer needs helped creating a relevant and comprehensive portfolio
satisfying the needs of different sets of consumers.

ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine
Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing
and conversion garnered from Packaging & Printing Business with its brand building and trade
marketing & distribution strengths resident in its FMCG business to offer superior value
products to consumers.

Paperkraft Business paper and the papers used in Classmate and Paperkraft notebooks are
superior in quality and environment-friendly. Other offerings available in education and
Stationery range are safe and certified non-toxic.

1.1.6 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.

24
ITC's range of Safety matches include popular brands like Aim, Aim Special, Aim Premium and
i Kno. With differentiated product features and innovative value additions, these brands
effectively address the needs of different consumer segments. 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., a 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.

1.1.7 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.
25
Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood, Durbar, Anushri etc. New launches include Fragrance of Temple – Gold Tradition
& Silver Edition; Champa, Tarangini & Malligai in an attractive pouch format

The pouch format of packaging is increasingly becoming popular.

To meet this need of the market Mangaldeep has launched three
variants – Champa, Tarangini & Malligai. Each of them has been
designed keeping the relevant market needs in mind. The
products have received a tremendous response not only from the
consumers and also by the trade.

Fragrance of Temple is a flagship sub brand in the Mangaldeep portfolio. Superior fragrance,
high quality sticks and differentiated packagings are some of the highlights of Fragrance of
Temple. New launch included Fragrance of Temple – Gold Edition & Fragrance of Temple –
Silver Edition. Both packs are industry first gold/silver metalized plastic pack. Fragrance of
Temple – Silver Edition has won the prestigious "IFCA Star
Award 2011" which recognizes Packaging Excellency in
terms of design, development, innovation and creativity.

26
Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and is fast
emerging as a key player in North India. Having varied consumer offers and differentiated
product offerings, Mangaldeep Dhoop is fast emerging a force to reckon with. New launches
include Sandal & Mogra variants as well as 3in1 offering in a singular pack.

The Business continues to work on various exciting new offerings to the consumers
and is planning to launch them in the near future.

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 12,000 people. Six out of 17 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. In
the latest initiative, ITC signed a MoU with Orissa Government run Orissa Rural Development
and Marketing Society (ORMAS) for marketing raw incense sticks in the state- a move that is
expected to provide employment opportunities to over 3000 rural women.

1.1.1Paper Board & Speciality Paper

ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and
most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of
packaging, graphic, communication, writing, printing and specialty paper requirements through
its four world-class manufacturing units, 7 sales offices and a network of more than 50 dealers in
India, along with an international trade network of 18 distributors / agents and 4 finishing
operations close to the market for providing faster service to the customers.

27
Having pioneered many specialty applications, 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 fine papers market. It is the largest exporter of coated boards from India.

ITC takes great pride in servicing a large cross-section of industry requirements - from cigarette
tissues to FMCG cartons, from electrical insulation papers to PLA Coated Boards, from
decorative laminate base to writing and printing papers and much more. ITC straddles the entire
spectrum of paperboards - from 100% virgin, food-grade boards which are from renewable and
sustainable resources to 100 % recycled boards

Some of ITC's prominent paperboard brands are:

Folding Box Boards:Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber Premium, Pearl XL Pac

Solid Bleached Sulphate Boards:Safire Graphik, Art Maestro, Carte Persona, Carte Lumina,
Safire XL Pac, Digiart

Poly coated boards: Indobev, Indobarr

PLA Coated boards: Omegabev, Omegabarr, Omegawrap

Recycled boards: Eco Blanca, Eco Natura

Fine Papers: AlfaZap, Alfa Plus, Hi Brite, Paperkraft , Alfazine, Perma White

Each of the units specialises in a range of products. Together, these units produce close to
5,50,000 TPA of paper and paperboards that meet stringent quality requirements across the
world. All four manufacturing units are ISO 9001, ISO 14001 and OHSAS 18001 certified and
meet strict Environment, Health and Safety norms.

The unit in Bhadrachalam is India's largest integrated pulping and paperboard manufacturing
unit. It boasts of equipment supplied by internationally renowned suppliers for pulping
processes, paper machines, web detection & inspection systems, and finishing & packing lines.
Currently the unit produces high-end virgin and recycled boards for packaging and graphic

28
applications, and fine printing papers. The Bhadrachalam unit manufactures and uses pulp made
from ozone bleaching process known as light ECF process. The use of ozone technology
significantly reduces the load of toxins in the effluent discharged, and helps customers get a
brighter, stronger product that is also environmentally responsible with the BOD (Biochemical
oxygen on demand) and COD (Chemical oxygen on demand) level way below the National
Standards Limits. PM 4 & PM 5 of Unit Bhadrachalam is BRC – IOP certified for food grade
boards.

The Kovai unit currently focuses entirely on recycled boards, servicing requirements for both
greyback and whiteback recycled boards, The Kovai unit is a benchmark in environmental
performance - helping ITC turn solid waste recycling positive by consuming more paper waste
generated than is generated internally. This is done by collecting waste from households and
institutions and recycling it at this facility.

The Tribeni unit specializes in fine papers and tissues and the product range from this unit
comprises opaque papers for fine printing like the Bible, dictionaries, cigarette tissues, medical
grade papers, anti-rust papers, electrical insulation papers, decor surface, printing and barrier
papers. The Bollaram unit manufactures specialty boards such as cast coated papers and boards,
poly extrusion coated barrier boards and C2S art boards and ivory boards. This unit is BRC- IOP
certified for food grade boards.

Customers are at the core of the business. This is reflected in the diverse range of products,
grades and value added services. There is a strong focus on partnering customers to co-create and
deliver superior solutions, enhancing their competitive advantage.

All the 4 units of ITC PSPD are FSC-CoC (Forest Stewardship Council- Chain of Custody)
certified enabling it to provide a diverse range of paperboards/paper with FSC certificate which
is a gold standard in wood certification for ethical and legal sourcing.

The Business' quality philosophy is reflected at every stage - from the selection of clones used
for growing pulpwood to world-class manufacturing facilities to the finishing and packing lines.
It embraces the relevant skills and competencies of employees, managers and specialists as well.

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A dedicated network of regional sales offices, an extensive dealer and agent network in India and
across the globe along with close to market finishing and stock holding facilities enable ITC's
Paperboards and Specialty Papers business to reach out to customers faster, to service them
better. With the division-wide implementation of Enterprise Resource Planning (ERP) in 2009,
the business also offers customers an enriched experience through enhanced connectivity and
web-access to many of the services that were handled offline.

ITC's commitment beyond the market finds a strong expression in the Social and Farm forestry
programmes spearheaded by the business. These programmes help create man hours of
employment for the rural poor, besides being a sustainable source of high-quality raw material
for the business. ITC's Research and Development efforts in creating disease resistant, high
yielding clones help farmers realize greater yields in a shorter time - from land that may be
otherwise unproductive. More than 1,24,000 hectares of planted area stands testimony to ITC's
commitment to sustainable forestry.

Working towards credible certification of its environmentally responsible processes and

products, ITC is the first Indian company to be invited to become a member of the WWF GFTN
programme. With this membership, ITC has committed to bring larger volumes of its products
and its operations under credibly certified schemes like FSC.

Supporting the cause of clean technology, ITC is a front-runner in introducing environment-

friendly Elemental Chlorine Free (ECF) technology, and more recently, Ozone bleaching in
India. ITC's focus on being a carbon-positive, water-positive, zero-solid waste disposal
organization leads it to constantly develop ways of reducing, reusing and recycling. ITC has been
‘Carbon Positive’ for six years in a row, ‘Water Positive’ for nine consecutive years and ‘Solid
Waste Recycling Positive’ for the last four years.

ITC's Paperboards and Specialty Papers business has also been a first-mover in the field of
collecting and recycling post-consumer waste from residential localities, corporate and
educational institutes through its WOW programme. ITC reaches out directly to consumers with
its Wealth Out of Waste (WOW) campaign, that has been successfully implemented in select
locations across southern India, and has plans to expand into other locations across the Country.

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1.1.2Packaging

ITC's Packaging & Printing Business is the largest value added converter of paperboard
packaging in South Asia. It converts over 70,000 tonnes of paper, paperboard and laminates per
annum into a variety of value-added packaging solutions for the food & beverage, personal
products, cigarette, liquor and consumer goods industries.

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 ITC's various FMCG businesses. Its client list
includes several well-known national and international companies like Nokia, Colgate
Palmolive, Pernod Ricard, Diageo, British American Tobacco, Philip Morris International, Agio
Cigars, UB Group, Tata Tetley, Tata Tea, Reckitt Benckiser, Radico Khaitan, Akbar Brothers,
Surya Nepal, VST Industries, etc.

With three packaging factories at Tiruvottiyur near Chennai (in the South), Munger in Bihar (in
the East), and Haridwar (in the North of India), the Company offers a comprehensive product

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range in packaging backed by its packaging expertise over the decades and cutting edge
technology making it truly a "One stop shop for Packaging".

Product Lines

ITC's Packaging Business has 3 major product lines

 Carton Board Packaging

 Printed Cartons
 Fluted cartons
 Flexible Packaging
 Tobacco Packaging

Carton Board Packaging : ITC occupies a leadership position in catering to the needs of the
liquor, mobile phones & food. ITC offers a range of value additions for carton board packaging
such as UV offset printing, Foil Stamping, Embossing, Window patching & lined cartons, etc.

Flexible Packaging : is an area of high growth, supported with investments in technology and
equipment from world class suppliers. ITC offers a completely integrated solution for laminates
from Pre-press, In-house Blown Film, Cast film, Extrusion Lamination, Hot Melt Coating,
specialty pouching and bag making. This is backed by in house cylinder making and pre press
support.

Tobacco packaging : ITC offers a range of products line including flip top boxes (Square,
Round, Beveled and Pillow Pack Hinge lids etc), Outers, Soft Cup labels, Pack inserts, Printed
cork tipping, printed overwraps, inner frames. ITC makes value added shoulder boxes for cigars
and cigarettes. ITC supplies packaging for over 80 billion cigarettes a year domestically, and
supplies packaging for 15 billion cigarette sticks a year for the export market to leading tobacco
majors.

Innovation & New Product Development

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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 based on which a variety of packaging solutions is generated.
The efficacy of the packaging is tested simulating the client's factory conditions. ITC has
contemporary laboratories for its 3 product lines for testing packaging requirements.

Green Packaging

ITC Packaging has pioneered offering of Green Packaging which includes usage of raw material
from sustainable sources and conversion of the same in a facility which is 100% powered by
renewable energy (Wind Energy). This clean energy initiative along with the other sustainability
initiatives helps the Packaging Business to significantly contribute to ITC being a carbon
Positive, Water Positive and Solid Waste Recycling Positive Company.

1.2 Agribusiness
1.2.1 Agri Commodities & Rural Services

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.

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One of the largest exporters of agri products from the country, ITC sources the finest of Indian
Feed Ingredients, Food Grains, Marine Products, Processed Fruits, Coffee & Spices.

ITC's Agri Business Division is the country's second largest exporter of agri-products. It
currently focuses on exports and domestic trading of:

Feed Ingredients – Soya meal

Food Grains - Rice (Basmati), Wheat

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 image of Farmer empowerment through e-

ChoupalsITC'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 6500
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 and

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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

image of Choupal SaagarFollowing 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

image of Choupal FreshChoupal 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. 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.

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Choupal Pradarshan Khet

image of Choupal Pradarshan KhetIn 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.

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.

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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, among others, who source
agriculture commodities and food products from India. Customers can log onto
www.itcabd.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 chip stock 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 chip stock potato seeds.

1.4 Hotel

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Launched on October 18, 1975, ITC Hotels, India's premier chain of luxury hotels, as a brand
has become synonymous with Indian hospitality. With over 90 hotels in 67 destinations, ITC
Hotels has set new standards of excellence in the hotel industry in Accommodation, Cuisine,
Environment and Guest Safety.

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.

As one of India's most dynamic hospitality chains, ITC Hotels has set standards for excellence in
the hotel industry by pioneering the concept of branded accommodation. The chain has
developed three brands of accommodation ITC One', 'Towers' and the 'Executive Club' to
differentiate between the needs of various travelers and provide high levels of service.
First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht are renowned
for their delicious and authentic Indian cuisines from the different regions of India. ITC Hotels
also showcases international cuisine in its specialty restaurants West View and Pan Asian.

ITC Hotels has strategically customized its hotels and appropriately categorized them to fulfill
the service and budgetary needs of travellers. With its exclusive strategic tie up with Starwood
for its top of the line premium brand the 'Luxury Collection', the group is strengthening its
international marketing stance. ITC Hotels was also instrumental in bringing the 'Sheraton' brand
to India, with which it enjoyed a three-decade exclusive partnership.

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ITC Hotels's properties are classified under four distinct brands:

ITC Hotels - Luxury Collection

In 2007, ITC Hotels entered a new phase in its collaboration with Starwood Hotels & Resorts.
ITC Hotels 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 ten hotels which are part of this collection are: ITC Grand
Chola in Chennai, ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC
Grand Central in Mumbai, ITC Windsor &ITC Gardenia in Bengaluru, ITC Kakatiya in
Hyderabad and ITC Mughal in Agra and ITC Rajputana in Jaipur.

Welcome Hotels offer five-star hospitality for the discerning business and leisure traveller.
Currently there are three hotels under this brand namely, Welcome Hotel Rama International
Aurangabad, Welcome Hotel Vadodara and Welcome Hotel Grand Bay Vishakhapatnam. Two
other Welcome Hotel Sheratons - Sheraton Park Hotel and Towers, Chennai and Sheraton New
Delhi offer warm, comforting services to the global traveller and a chance to connect.

Fortune Hotels operates mid-market to upscale properties in the first-class, full-service business
hotel segment all over India, in major metros, mini metros, state capitals and business towns,
promising business and leisure travelers a wide choice of destinations and accommodation.
Fortune Hotels currently has hotels operating in Ahmedabad, Chennai, Gurgaon, Indore, Jaipur,
Jammu, Jamshedpur, Kolkata, Ludhiana, Madurai, Navi Mumbai, Ooty, Port Blair, Pune,
Tirupati, Trivandrum, Vapi, Vijayawada, Vishakhapatnam, Hyderabad, Lavasa, Noida, Manipal,
Bengaluru, Mussoorie, Goa, Thane, Gandhinagar and Mysore while several more hotels are
expected to be commissioned soon in other key locations in India.

Welcome Heritage brings together a chain of palaces, forts, havelis and resorts that offer a
unique experience. Welcome Heritage endeavours to preserve ancient royal homes and the
historical Indian grandeur and opulence for the future Indian generations. Welcome Heritage
provides a fine range of hotel services inside these architectural legacies present in Rajasthan,
Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal, Karnataka,

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Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal Pradesh, Uttar Pradesh,
Maharastra, Kerala, Andhra Pradesh and Puducherry.

Welcome Environment

Welcome Environment is ITC Hotels' vision for a green world. It's a multi-faceted programme
started in order to propagate environmental causes in the cities where ITC Hotels' 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. Hillary
Clinton's visit to ITC Green Centre

ITC Hotels - Empowering Differently-abled people

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ITC Hotels 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 Hotels has taken a positive step in this direction by employing
people who are differently abled across its hotels. ITC Hotels 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 Hotels has
created an atmosphere of sensitivity and caring

1.6 Information Technology

Formed in 2000, ITC Infotech has today carved a niche for itself in the arena of global IT
services and solutions. The company has established technology Centers of Excellence (CoE) to
deepen capabilities and incubate cutting-edge technical competencies. A robust outsourcing
model, comprehensive suite of differentiated solutions & services and focus on excellence in
execution has provided the company a leadership position in chosen domains.

ITC Infotech’s customer centric go-to-market approach is organized by industry verticals. The
company services industries including, Banking Financial Services & Insurance (BFSI),
Consumer Packaged Goods (CPG), Retail, Manufacturing, Engineering Services, Media &
Entertainment, Travel, Hospitality, Life Sciences and Transportation & Logistics.

The company enjoys the rare advantage of having a practitioner's expertise in some of these
industry verticals, which has in part been bequeathed by parent ITC Limited, which runs market
leading businesses in these verticals. While an enterprise range of technology capabilities and
world class quality processes form the foundation of ITC Infotech's cutting-edge IT service
strength, a sharp domain focus ensures that IT services delivery always places business needs
ahead of technology.

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ITC Infotech provides IT solutions by addressing customer pain points through innovative
solutions, optimizing their IT landscape and maximizing returns from IT investments. The
company focuses on developing deep and differentiated capabilities to enhance expertise in
specific industry domains, business solutions and technologies. This steadfast focus on
delivering enduring value to customers has formed the bedrock of the ITC Info tech’s growth
strategy. The company has been successful in attaining differentiation in niches and continues to
gain competitive advantage and strengthen market standing. ITC Info tech's leadership
capabilities also accrue from business critical engagements with leading organisations across five
continents, and a service delivery footprint spanning over 140 countries.

ITC Infotech conforms to the highest standards in international process quality, with ISO 27001,
ISO 9001, CMMi Level 3 and BS 7799 accreditations. These reflect the company's ongoing
enterprise-wide focus to ensure that every engagement, program and project delivers
international quality consistently.

People first

ITC Infotech nurtures its employees through numerous training and development programmes to
help them actualize their potential. The overarching objective is to ensure for each individual, a
wholesome and challenging job profile, thereby constantly aligning individual aspirations to
organizational needs. ITC Infotech offers global careers, global exposure and a diversity of
opportunities to create business and technology leaders of tomorrow.

The company became the first Indian IT company to receive the prestigious Social
Accountability (SA) 8000:2008 certification. SA8000 is widely accepted as the most viable and
comprehensive international workplace management system.

2. To study about its CSR (corporate social responsibilities).

Corporate Social responsibility means devising corporate strategies and building a business
with the society’s needs in mind. Social responsibility should be impaired in business
decision making and it also implies an obligation to deal with social problems that business
organizations are believed to have towards the society in which they function. Businesses

42
have far reaching effects not only on the economic well being of the nation but also upon its
social fabric. Business organizations have become the most significant social institutions
having the power to influence the lives of the people.The concept of social responsibility in
India emerged as direct response to the policies of the Government making India a socialistic
democratic state.
Inspired by a vision to serve a larger national purpose and abide with the strong value of
Trusteeship, ITC has crafted innovative business models to create larger societal capital
while simultaneously delivering long term shareholder value. This overarching aspiration to
create meaningful societal value is manifest in ITC's strategy to enhance the competitiveness
of value chains of which it is a part. It is therefore a conscious strategy to design and
implement Social Investments / CSR programmes in the context of ITC's businesses, by
enriching value chains that encompass the most disadvantaged sections of society, especially
those residing in rural India, through economic empowerment based on grass-roots capacity
building.
Recognizing that business enterprises are economic organs of society and draw on societal
resources, it is ITC's belief that a company's performance must be measured by its Triple
Bottom Line contribution to building economic, social and environmental capital. ITC is
therefore committed to creating larger 'stakeholder value' by aligning its performance to these
Triple Bottom Line objectives. As an Indian enterprise, ITC believes that this approach can
unleash strong drivers of growth to make it more inclusive and equitable for even the most
marginalized sections of society, through the creation of sustainable livelihoods, and to
ensure long-term business sustainability and competitiveness.

Preamble
It is the Company's intent to make a positive difference to society. It recognises that it cannot
do it all; so that if there are choices to be made, bias will be towards doing fewer projects
with greater impact and focusing initiatives on communities in which the Company lives and
operates.

Policy
It is ITC's policy:

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To pursue a corporate strategy that enables realisation of the twin goals of shareholder value
enhancement and societal value creation in a mutually reinforcing and synergistic manner.
To align and integrate Social Investments / CSR programmes with the business value chains
of your Company and make them outcome oriented. To support creation of on and off-farm
sustainable livelihood sources thereby empowering stakeholder communities to conserve and
manage their resources.
To implement Social Investments / CSR programmes primarily in the economic vicinity of
your Company’s operations with a view to ensuring the long term sustainability of such
interventions.
To contribute to sustainable development in areas of strategic interest through initiatives
designed in a manner that addresses the challenges faced by the Indian society especially in
rural India.
To collaborate with communities and institutions to contribute to the national mission of
eradicating poverty and hunger, especially in rural areas, through agricultural research and
knowledge sharing, superior farm and agri-extension practices, soil and moisture
conservation and watershed management, conservation and development of forest resources,
empowering women economically, supplementing primary education and participating in
rural capacity building programmes and such other initiatives.
To align your Company’s operations with the national objective of inclusive growth and
employment generation by leveraging your Company’s diversified portfolio, manufacturing
bases, supply chains and distribution channels, to infuse an appropriate mix of capital and
technology to further social business initiatives such as e-Choupal, animal husbandry,
agarbatti rolling etc. and support organisations / institutions engaged in building linkages
with local, regional and urban communities and markets.
To sustain and continuously improve standards of Environment, Health and Safety through
the collective endeavour of your Company and its employees at all levels towards attaining
world class standards and support other programmes and initiatives, internal or external, for
the prevention of illness and combating of diseases as may be considered appropriate from
time to time.

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 To encourage the development of human capital of the Nation by expanding human
capabilities through skills development, vocational training etc. and by promoting excellence
in identified cultural fields.
As the farmers and villagers of India are the main customers for ITC Ltd and Hindusthan
Unilever Ltd (HUL) the corporate are now seriously involved in imparting the knowledge to
use modern methods and tools for their financial as well as social development. This rural
initiative of the corporate is beneficial to the rural population and the corporate as well. The
corporates are fulfilling the social responsibility by investing in the implementation of the
program in the places where their product potential is substantial and a large network is
developed over the years. It also helps the corporate to win the confidence of the villagers
and improves their brand image.

ITC e- Choupal:
ITC’s International Business Division one of the India’s largest exporters of agricultural
commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering
value to its customers around the world on a sustainable basis. The e-Choupal model has been
specifically designed to tackle the challenges posed by the fragmented farms of Indian
Agriculture characterized by weak infrastructure and the involvement of numerous
intermediaries among others. e-Choupal also unshackles the potential of Indian farmer who has
been trapped in a vicious cycle of low risk taking ability, low investment, weak market
orientation, low value addition, low margins and all this leading to further lowering of risk taking
ability making him globally uncompetitive.

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For a country which is having very rich and abundant natural resources, hard working and
efficient farmers it is unfortunate that Indian agricultural business remains globally
uncompetitive. It is identified that the main problem is low risk taking ability of Indian farmer
and his dependence on the money lender for his farm activity. He needs quality inputs such as
fertilizers, chemicals, good farming practices and timely information about minimum sale price (
MSP ) for his product, weather data and insurance to safeguard his crop. Whereas the inputs for
farming activity are supplied by Agri-input retailer the information required to take a decision
about the crop is provided by the department of Agriculture of State Government through Village
level workers (VLW s).
In the traditional practice the farm output reaches the processor through the ‘Mandi’ system or
the Money lender which end up in very low margins for the farmer. The modern practice of
going through a trader, broker and processor helps the farmer to get a fairly good margin for his
products. High margins will enable the farmer to enhance his investment in the farming activity
for higher productivity.

Such a market led ‘business model’ can enhance competitiveness of Indian agriculture and
trigger a virtuous cycle of higher productivity, higher incomes, enlarged capacity for farmer risk
management, larger investments and higher quality coupled with higher productivity.
Further a growth in rural incomes will also unleash the latent demand for industrial goods so
necessary for the continued growth of the Indian economy. This will create another virtuous
cycle propelling the economy into a higher growth trajectory. Operation and benefits
‘e-Choupal’ provides real- time information and customized knowledge to making use of the
physical transmission of data about the capabilities of current intermediaries, logistics, bridge
financing. This enhances the ability of the farmers to take decisions and align their farm output

46
with market demand thereby securing quality and productivity. The aggregation of the demand
for farm inputs from individual farmers gives them access to high quality inputs from established
and reputed manufactures at fair prices. As a direct marketing channel virtually linked to the
‘mandi’ system for price discovery ‘e-Choupal’ eliminates wasteful intermediation and multiple
handling. This helps in reducing the transaction costs.
‘e-Choupal’ ensures world class quality in delivering all these goods and services through
several product /service specific partnerships with the leaders in the respective fields in addition
to ITC’s own expertise.
While farmers benefit through enhanced farm productivity and higher farm gate prices ITC
benefits from the lower net cost of procurement by eliminating unnecessary costs in the supply
chain. ITC also offers better prices to the farmer compared to competition in the field.
‘Sanchalaks’: are the village internet kiosks managed by farmers for their use to enable the
agricultural community access ready information in their local language on the weather and
market prices. It helps them to know more about the scientific farm practices and risk
management. It also facilitates the sale of farm products and purchase farm inputs from their
door steps.
The status of implementation and benefits:
Launched in June 2000,’e-Choupal’ has become the largest initiative among all Internet based
interventions in rural India. e-Choupal services today are used by 4.0 million farmers growing a
range of crops such as soybean, coffee, wheat, rice, pulses and shrimp in 40,000 villagers
through 6500 internet kiosks operated in nine states (Madhya Pradesh, Haryana , Uttaranchal ,
Karnataka, Andhra Pradesh, Uttar Pradesh, Maharastra, Rajasthan and Kerala ).
The problem encountered while setting up and managing these ‘e-choupals’ are primarily of
infrastructure inadequacies, including power supply, telecom connectivity and band width, apart
from the challenge of imparting skills to the first time internet users in remote and inaccessible
areas of rural India. Several alternative and innovative solutions are being used to overcome the
challenges, power back - up through batteries charged by solar panels, upgrading BSNL
exchanges with RNS kits, installation of VSAT equipment, Mobile Choupals, local caching of
static content on website to stream in the dynamic content more efficiently. They have also
provided round the clock help desks for the benefit of farmers.
ITC has taken care to involve farmers in the designing and management of the entire,

47
e-Choupal initiative. The active participation of farmers in their rural initiative has created a
sense of ownership in the project among the farmers. They see the e-Choupal as the new age co
operative for development.
An international study has shown that the farmers income have increased by 20%. The
productivity has increased from 14% to 29% by using e-Chaupal services.
Recognition:
(1) ITC is the first Indian company and second in the world to win the prestigious Development
Gateway Award in 2005 which recognizes ITC’s e-Chaupal as the most exemplary contribution
to the field of Information and Communication Technologies (ICT) for development priorities
like poverty reduction, its scale and replicability, sustainability and transparency.
(2) E-Chaupal was declared as one of India’s best Innovations and won the ‘Innovation for India
Award-2006’ for ITC.
(3) ITC has won the Golden Peacock Awards for Corporate Social responsibility in Asia in the
year 2007, the award for ‘CSR in Emerging Economies 2005’ and Excellence in Corporate
governance’ in the same year. These awards have been instituted by the Institute of Directors,
New Delhi in association with the world council for Corporate Governance and Centre for
Corporate Governance.
(4) The Corporate Award for Social responsibility 2008 from, The Energy and Resources
Institute (TERI) in recognition of its exemplary initiatives in implementing Integrated watershed
development programmes across seven states in India.
(5) United Nations Industrial Development Organization (UNIDO ) Award at the International

conference on sharing Agribusiness solutions 2008 at Cairo for ITC’s exemplary initiatives in
agribusiness through e-Chaupal. ITC’s agribusiness was adjudged the winner out of 120
solutions presented by 65 countries for providing innovative solutions including updated
information on crops in remote Indian villages. ITC’s e-Chaupal the largest rural digital
infrastructure in the world today covers over 40,000 villages and benefits over 4 million farmers.
This distribution network, comprising of digital and human infrastructure, not only empowers
farmers with information but has also helped transform rural communities into vibrant economic
organizations by co-creating thriving markets.
Comparison with other Indian companies:

48
TERI has judged ITC as the first company for the corporate awards on CSR in 2008. The second
prize went to Cairn India Ltd for their efforts in launching the Micro Vendor Development
Program by creating sustainable lively hood opportunities. This independent evaluation of ITC e-
Chaupal by TERI which is a Non Government Organization ( NGO ) shows that it is one of the
best initiatives taken by a corporate in India as a part of their CSR.
Other Indian Companies which have won TERI awards for their significant contribution over the
years towards fulfilling their Corporate Social Responsibility are.
1) HZL
2) ONGC
3) Tata Tea
4) Mahindra& Mahindra
5) Numaligarh Refineries Ltd.
ITC has consistently improved its performance by steadily expanding its e Chaupal program to
different states in India over the past five years and won the farmers appreciation in India. Many
developing countries are now following similar initiatives for the development of agri-business.
Future plans of ITC:
(1) To improve the logistic efficiency ITC is planning to integrate bulk storage, handling
and transportation facilities.
(2) Extension of the ‘e-Choupal’ initiative to 15 states across the country.
(3) To channelize other services related to micro - credit health and education through
the same ‘e-Choupal’ infrastructure.
ITC estimates a payback period of seven years on its total investments in the e Chaupal initiative
with full bouquet of services to the farmers and rural customers.
ITC’s philosophy for Rural Development:
ITC believes that an effective growth strategy for our nation must address the needs of rural
India

which is home to 75 % of our population. It is imperative to ensure that India’s economic growth
is inclusive, embracing its villages, so as to free millions of our disadvantaged citizens from the
indignity of poverty. ITC has partnered the Indian farmer for close to a century. It is now
engaged in elevating this partnership to a new height by using information technology ‘e-

49
Choupal’ initiative.
HUL’s initiative in Rural Development - Shakti
Hindusthan Unilever Limited (HUL) and its constituent companies have been in India since
1931. The Company has consciously developed its strategies and operations keeping in view,
development of India as the focus for its growth. The company’s main contributions are
developing and using relevant technologies, stimulating industrialization, boosting exports,
adding value to agriculture and generating productive employment and income opportunities.
HUL has been engaged in rural development since 1976 in India. The first programme called
IRDP (Integrated Rural Development Program) was started in the year 1976 at Eta district in
Uttar Pradesh as a part of its dairy operations. This programme now covers 500 villages in the
district. Later, in all the places where HUL established their factories, similar programmes were
also started in adjacent Villages. These activities focus on training the farmers for better
productive use of their agricultural resources, animal husbandry, generating alternative income,
health & hygiene and infrastructure development.
The most important contribution for rural development is to create income - generating
opportunities to villagers. Such initiatives will only be successful when linked with the
companies core business and is mutually beneficial to both the customers for whom the
programme in intended and also for the company.
Based on these insights HUL launched project Shakti in the year 2001 in keeping with the
purpose of integrating business interests with national interests.

Project Shakthi
The objectives of project Shakthi are to create income - generating capabilities for
underprivileged rural women by providing a small-scale enterprise opportunity, and to improve
rural living standards through health and hygiene awareness. It is ushering in prosperity and
more importantly, self-respect to women in rural India.
Under the project, HUL offers a range of mass-market products to the Self Help Groups (SHG s)
which are relevant to rural customers. HUL imparts the necessary training to these groups on the
basis of enterprise management which the women need to manage their enterprises. For the SHG
women, this translates into a much-needed, sustainable income contributing towards better living
and prosperity. Armed with micro-credit women from SHG’s become direct-to-home distributors
in rural markets.

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A typical Shakthi entrepreneur conducts a steady business which gives her an income in excess
of Rs.1000/- per month on a sustainable basis. As most of these women live below the poverty
line and hail from small villages with less than 2000 population, this earning is very significant.
Project Shakthi thus enables these families to live with dignity, with real freedom from want. In
addition to money there is a marked change in the woman’s status within the household, with a
much greater say in decision making. This will lead to better health and hygiene, education of
their children especially the girl child and an overall betterment in living standards.
The important and notable aspect of this model is it creates a win-win partnership between HUL
and the consumers, some of whom will depend on the organization for their livelihood and builds
a sustainable cycle of growth for all.

3. Position of ITC in Food market and its strategy.

More importantly, the company has been cutting its losses in the non-cigarette FMCG business
to Rs 297 crore in 2010-11 from Rs 483 crore in 2008-09.

What will also give Deveshwar great confidence in the future of these businesses is that things
are looking up for quite a few of them, despite rising input costs. The food business, for instance,
recorded its maiden profit last fiscal and analysts say the stationery product business is not too
far from profitability. The personal-care business is also reducing losses despite the growing
investment in new product launches and marketing. In fact, leading broking firms like HDFC
Securities and Angel Broking are betting that ITC's non-cigarette FMCG business would
breakeven by next financial year.

"The losses are reducing due to favourable product mix, higher realisations and a combination of
smart sourcing and cost saving across supply chain," says broking firm Sharekhan analyst
Kaustubh Pawaskar.

Top-down Strategy

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Company officials attribute this turnaround to the company's "top-down" approach to cracking
categories in the FMCG business. It's a strategy the company perfected in its mainstay cigarette
business and has replicated in the personal care, food and stationery operations.

Typically, ITC enters any new category at the premium end, builds its brands, and then rolls out
the mass range. For example, it entered the stationery segment with the premium Paperkraft
range in 2002 and then followed it up with the mass market Classmate range the next year. By
2007, Classmate became the largest notebook brand in the country. "Indian consumers love
premium and imported products. Hence, had we started from the bottom end of the market,
consumers would have never accepted us when we entered the premium segment," ITC's
executive director Kurush N Grant told ET on Sunday during a recent interaction.

Add to that the advantages of better margins and a juicy sales mix, its no wonder that ITC is
replicating the strategy across categories. ITC entered the food business in 2001 with premium
ready-to-eat brand Kitchens of India and in 2003, launched the Aashirvaad range of mid-segment
ready meals at a price range of Rs 35-50.

Similarly, in 2005 when it forayed into the personal-care market, it was through the super-
premium brand Essenza Di Wills in perfumes, bath and body care. This was followed by
premium brand Fiama Di Wills in 2007, the mid-market brand Vivel and eventually the mass-
market Superia.

As per a recent HDFC Securities report, ITC has some 6% market share in the fiercely
competitive soap market and is increasing its 2-3% market share in shampoos. While staples,
confectionery, biscuits have become profitable, the Bingo! range of snacks is close to break eve.

52
MARKET OF ITC
The main driver in attracting the consumers is Quality of the product itself with nearly 65% of
the people surveyed citing it as the main criterion for choosing the product, followed by past
experience of the consumer with the brand (17.6%). Price was third criterion with a percentage
of 11.7% of the people surveyed gave importance during buying. An effective advertisement will
attract more and more customer to buy, helps in the brand and image formation, and informative
in telling the USP of the product

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Analysis on Diversification

ITC has been a leader in the tobacco business, but it realize from the up coming trends that
remaining with a single business is not a noble thought, moreover the company was threatened of
the anti-tobacco campaign. Therefore the company decided to venture in to InfoTech with ITC
InfoTech, foods via Kitchens of India, greeting cards through Expressions and lifestyle retailing
through Wills Sport. Each of these is intended to draw revenues of at least Rs. 250 crore by
2005.ITC was a cash rich company with a liquidity of Rs.8816 million in the cigarette business,
even though the company understood the need and usefulness of diversification. The writer in
the article is mainly concerned with the way ITC spreads its wings in the lifestyle segments, he
writes:”

forty-five stores in 34 cities in just under a year, selling an expensive fashion brand of relaxed-
wear. If retail swamp-out and brand salience were the goals, ITC’s Wills Sport would be on a
victory lap already.”The company has started its retail stores not only in Indian metros but also
in the small towns like Ranchi, Jabalpur, Gwalior, Belguam, Ernakulam etc. the article also talks
about the strong market campaign done by the company, it also describe how the company has
used its brand image to attract the Indian youth. It also tells about the strategy adopted by the
company to differentiate itself in this segment, like the company is outsourcing its designs form
the American Design Intelligence Group (ADIG), a SanFrancisco, US-based garment and retail
consultancy. Now it has its own six-member team, even as it continues a tie-up with Science &
Designs, an Italian fashion design house – through which it keeps a watch on hot western labels
such as Banana Republic and Armani Exchange.

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Financial Analysis of ITC Ltd.

In the quarter ended June, 07, ITC’s net profit grew 20% to Rs.782.87 million and net sales rose
up 17% to Rs.3325.23 million. This profit growth was primarily driven by its cigarette business
because of high margin and agribusiness, but its top line growth mainly comes from non tobacco
business and agro business. ITC is facing pressure on its consolidating operating margin due to
continued losses by its non- cigarette FMCG business and decline in the profitability for paper
and paper board business. Higher advertising expanses, which grew 35% in FY07 and freight
cost, which were up 31% last year, have also affected the margins. Going forward, the focus will
be on the performance of its non tobacco FMCG business, which has begin to show sign of
turning around. ITC’s top line and bottom-line growth is likely to be marginally affected looking
at its aggressive investment in hotel and other FMCG business. Its recent foray in to home
and personal care also need immediate investment. At the current market price of Rs.180, the
stock is valued at around 20.5 times its FY08estimated earning per share of Rs.9. this is
significantly lower than its historical price to earnings multiple of around 25 and also lower than
its peers in FMCG sectors. This provides 20-25% upside over the next 12-18 months.

57
TC’s top line and bottom-line growth is likely to be marginally affected looking at itsaggressive
investment in hotel and other FMCG business. Its recent foray in to home and personal care also
need immediate investment. At the current market price of Rs.180, the stock is valued at around
20.5 times its FY08estimated earning per share of Rs.9. this is significantly lower than its
historical price to earnings multiple of around 25 and also lower than its peers in FMCG sectors.
This provides 20-25% upside over the next 12-18 months

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62
SWOT Analysis ITC
ITC is one of India's biggest and best-known private sector companies. In fact it is one of the
World's most high profile consumer operations. This SWOT analysis is about ITC. Its businesses
and brands are focused almost entirely on the Indian markets, and despite being most well-
known for its tobacco brands such as Gold Flake, the business is now diversifying into new
FMCG (Fast Moving Consumer Goods) brands in a number of market sectors
including cigarettes, hotels, paper, agriculture, packaged foods and confectionary, branded
apparel, personal care, greetings cards, Information Technology, safety matches, incense sticks
and stationery. Examples of its successful new FMCG products include:
 Aashirvaad - India's most popular atta brand with over 50% market share. It is also
present in spices and instant mixes.

 Mint-o - Mint-0 Fresh is the largest cough lozenge brand in India.

 Bingo! - a new introduction of finger snacks.

 Kitchens of India - pre-prepared foods designed by ITC's master chefs.

 Sunfeast - is ITC's biscuit brand (and the sub-brand is also used on some pasta products).

Strengths
ITC leveraged it traditional businesses to develop new brands for new segments. For example,
ITC used its experience of transporting and distributing tobacco products to remote and distant
parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are
often asked to develop new food concepts for its FMCG business.
ITC is a diversified company trading in a number of business sectors including cigarettes, hotels,
paper, agriculture, packaged foods and confectionary, branded apparel, personal care, greetings
cards, Information Technology, safety matches, incense sticks and stationery.

Weaknesses
The company's original business was traded in tobacco. ITC stands for Imperial Tobacco
Company of India Limited. It is interesting that a business that is now so involved in branding

63
continues to use its original name, despite the negative connection of tobacco with poor health
and premature death.
To fund its cash guzzling FMCG start-up, the company is still dependant upon its tobacco
revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is
responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast
Moving Consumer Goods) is being subsidised by its tobacco operations. Its Gold Flake tobacco
brand is the largest FMCG brand in India - and this single brand alone hold 70% of the tobacco
market.

Opportunities
Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed
using strategies of market development, product development and marketing penetration.

ITC is moving into new and emerging sectors including Information Technology, supporting
business solutions.

e-Choupal is a community of practice that links rural Indian farmers using the Internet. This is an
original and well thought of initiative that could be used in other sectors in many other parts of
the world. It is also an ambitious project that has a goal of reaching 10 million farmers in
100,000 villages. Take a look at eChoupal here http://www.itcportal.com/agri_exports/e-
choupal_new.htm

ITC leverages e-Choupal in a novel way. The company researched the tastes of consumers in the
North, West and East of India of atta (a popular type of wheat flour), then used the network to
source and create the raw materials from farmers and then blend them for consumers under
purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP
Chakki in the Western market and Aashirvaad in the Eastern market. This concept is
tremendously difficult for competitors to emulate.

Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's
premier FMCG business.

Per capita consumption of personal care products in India is the lowest in the world offering an
opportunity for ITC's soaps, shampoos and fragrances under their Wills brand.

Threats
The obvious threat is from competition, both domestic and international. The laws of economics
dictate that if competitors see that there is a solid profit to be made in an emerging consumer
society that ultimately new products and services will be made available. Western companies

64
will see India as an exciting opportunity for themselves to find new market segments for their
own offerings.

ITC's opportunities are likely to be opportunities for other companies as well. Therefore the
dynamic of competition will alter in the medium-term. Then ITC will need to decide whether
being a diversified conglomerate is the most competitive strategic formation for a secure future.

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

ITC Pricing strategy:

The pricing of the ITC food division depends upon the Customers’ demand schedule, function
and the competitors’ price. The pricing of the company is such that it caters to the need of all
income groups of people but special provision has been kept for Low and middle income group,
and their pricing are competitive with respect to other players like Britannia, Parle and Brisk
farm. The company follows the Going rate pricing that is the price of the product depends upon
the competitors price. The firm chooses pricing more or less the same as Market leader.

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ITC Promotional activities
A particular budget is allocated for the promotion of the products, the local promotion scheme is
decided by the Area Sales Managers, it give its suggestion to the District office and that is
forwarded to the Head Quarter in Kolkata. In another promotional scheme for Biscuits a
particular number of cases is given freely to the distributors according to the amount of sale they
make, this was a
Drop down promotion
i.e. of the number of free cases that a particular distributors gets, off them a certain part is
reserved for the retailers and customer if they buy a certain level of biscuit quantity.
ITC Distribution
Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes
business; the ban on advertisements is likely to work in favour of ITC thanks to the recall factor.
The company's reliable distribution network also ensures superior inventory turnover than its
peers

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67
CONCLUSION
From the study of these two successful rural initiatives taken by ITC and HUL which are the
leading and well established Indian Corporates, it is very clear that it proved to be a competitive
corporate advantage in fulfilling corporate social responsibility. The decision of ITC to extend
‘e-Choupal’ to 15 other states in the country shows their commitment to the objective of rural
development in India. The infrastructure of ‘e-Choupal’ can be put to better use for other
services especially in rural health and education area.
Providing safe drinking water to villages in India is a challenge which requires the involvement
of corporates and NGO’s. State Governments are engaged in developing Schemes and involving
their machinery for implementation, but the success rate of these programs is very low.
Corporates can play a key role in educating the rural population about the importance of safe
drinking water in maintaining their health. It is estimated that the cost of providing health
services for the villagers suffering due to contaminated water is 8 times
higher than providing free and safe drinking water. It is therefore suggested that all corporates
should take the example of ITC and HUL and do their best in fulfilling their Corporate Social
Responsibility and participate in the growth of Indian economy.

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FUTURE PLANS OF THE COMPANY

Today, the Aashirvaad brand stands for and salt and is expected to add, spices and rice in the
staples segment. In the ready-to-eat segment, Aashirvaad has been expanding the range and the
latest offering includes its combo packs of rice and gravies. Besides, an all-purpose curry paste
has also been included in the range. To make a success of any foods business, apart from
understanding the palate, it would be procurement and sourcing which have to deliver on two
fronts: mainly that of quality and efficiency. As for its ready to eat category Kitchens of India
(KOI), the company’s strategy is to expand the KOI product porfolio. In this category, the
company plans to introduce new products to meet the evolving needs of consumers. This
premium brand is targeted at tourists, consumers who order at home, NRIs and women in the age
group 25 plus.

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CHAPTER 4
SUGGESTIONS AND
RECOMMENDATIONS

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Recommendations
1 . The company can implement the following measure for increasing the sales and volume of
their products.

2 . Advertisement for the Aashirvaad atta is found to be ineffective and infrequent. So, the
company can come up with an aggressive advertisement to attract the Indian housewife as they
are found to be the decision maker in the buying of Atta.

3 . The company can come up the concept of forming a Retail chain of Food products across all
over India as it is follows the marketing strategy of Umbrella branding.In such retail chains all
the food division products can be sold at the discountedrate, as more and more products are
coming under the Umbrella products like food processing.

4 . The branded atta can be exported to other countries where we are currently exporting the
whole wheat.

5 . The company can approach the government or distributing their products in Military canteens
and can sell them to organization that provides the afternoon meals to the children as a part of
mid-day meal scheme

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CHAPTER 5
CONCLUSION AND
LIMITATIONS

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LIMITATIONS

Skill set shortage

Maintaining high quality standards

Lack of talent pool

Unable to do primary research

Confidentiality

Enhanced risk management

Time constraint

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BIBLOGRAPHY
WEBSITES
http://www.itcportal.com

http://www.blonnet.com

http://www.just-food.com

http://www.thehindubusinessline.com

http://www.imcri.org

http://www.indiarretail.com
hhttp://www.retailbiz.com
•

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