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CHAPTER-1
INTRODUCTION
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1.1 INTRODUCTION TO ITC LTD.
ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's
Most Reputable Companies by Forbes magazine and among India's Most Valuable
Companies by Business Today.
ITC Ltd. completed yet another year of strong performance. The Net Turnover at Rs 3763
crores registered a growth of 15% driven by the continued scale up of the new FMCGbusinesses, which grew by 30%, higher Paperboard & Packaging revenues and strong
performance by the Agri businesses.
The unprecedented increase in excise duties on non-filter cigarettes in the Union Budget
2008, steep increases in commodity prices and store rentals, the brand building costs of
the new Personal Care portfolio and the significant investments in enhancing distribution
capability combined to exert intense pressure on profitability during the quarter.
Consequently, pre-tax profits at Rs. 1189 crores registered a subdued growth of 4.9%
over the same period last year. Post tax profit at Rs. 803 crores grew by 4.1%. Earnings
Per Share stood at Rs. 2.13 (SPLY Rs 2.05).
FMCGCigarettes
The extraordinary increase in the rates of excise duties on non-filter cigarettes, of the
order of 140-390%, in the 2008 Union budget has made it unviable for legitimate
manufacturers to make value propositions that will appeal to consumers in this segment.
The Company had no option but to discontinue the manufacture and marketing of non-
filter cigarettes in the Plain and Micro segments.
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Branded Packaged Foods
The Branded Packaged Foods business registered a sales growth of 24% over the
previous year despite the economic slowdown and increasing competitive pressures.
The Bingo! product range got further enhanced with the recent launch of Finger Snack
Hatke Jhatke.
The product mix of the Sunfeast range of biscuits witnessed continued enrichment
driven by improving sales of value added products like Creams, Cookies etc.
In the Staples category, Aashirvaad further built on its leadership position withrevenues growing handsomely.
Confectionery sales grew significantly during the quarter, driven by Eclairs and the
extension of new segments like Lactos, which is being rolled out nationally. Similarly,
the Ready-to-Eat (RTE) group continues
to grow steadily, having made its first foray into the frozen foods segment in the US
markets.
Lifestyle Retailing
The Lifestyle retailing business continued to enhance consumer franchise with a retail
footprint, which now stands at 53 Wills Lifestyle stores, an extensive network ofJohn
Players exclusive brand outlets and expanded visibility at reputed large format stores
and multi brand outlets.
Personal Care Products
The business continued to register a healthy growth, improving its footprint amongst the
national branded players. A range of personal care products under the brands Fiama Di
Wills, Vivel Di Wills, Viveland Superia addresses identified segments of the
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market with differentiated value benefits. The product portfolio got further enhanced with
the launch of the Superia range of anti-dandruff shampoos during the quarter.
Education & Stationery Products
The stationery business continued to be scaled up. The Classmate range of notebooks,
which is the countrys most widely distributed brand, is being marketed through school
contact programmes, point of sale promotions and the Classmate Young Author Contest.
Hotels
During the quarter, the hotels business posted a revenue growth of 10% to touch Rs. 228
crs.
Paperboards, Specialty Papers & Packaging
The business maintained its market leadership with segment revenues increasing by 25%.
Agri Business
The business revenues grew by 17%, driven by an impressive growth in leaf tobacco
exports.
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Strategic Investment
During the quarter, ITC Infotech (USA), Inc, a subsidiary of ITC Infotech Limited,
acquired Pyxis Solutions, a US based company specializing in quality assurance and
testing. Consequently Pyxis became a wholly owned subsidiary of the Company.
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1.2RESEARCH OBJECTIVES OF THE STUDY
To study the history of ITC Ltd.
To understand the different strategies adopted by ITC Ltd.
To study the unique measures and innovation adopted by ITC to increase itsmarket share.
To learn more on how ITC Ltd. helps in preserving national heritage.
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Sustain ITCs position as one of Indias most valuable
corporations through world class performance, creating
growing value for the Indian economy and Companys
stakeholders.
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To enhance the wealth generating capability of the
enterprise in a globalizing environment, delivering
superior and sustainable stakeholder value.
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1.5 GLOBAL HONOURS
ITC constantly endeavors to benchmark its products, services
and processes to global standards. The Company's pursuit ofexcellence has earned it national and international honours. ITC
is one of the eight Indian companies to figure in Forbes A-List
for 2004, featuring 400 of "the world's best big companies".
Forbes has also named ITC among Asia's'Fab 50' and the World's
Most Reputable Companies.
ITC has several firsts to its credit:
ITC is the first from India and among the first 10
companies in the world to publish its Sustainability Report in compliance (at thehighest A+ level) with the latest G3 guidelines of the Netherlands-based Global
Reporting Initiative (GRI).
ITC is the first Indian company and the second in the world to win the prestigious
Development Gateway Award. It won the $100,000 Award for the year 2005 for its
trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural
India.
ITC has won the inaugural 'World Business Award', the worldwide business award
recognizing companies who have made significant efforts to create sustainable livelihood
opportunities and enduring wealth in developing countries.
ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000
quality certification and the first among cigarette factories in the world to be awarded
the ISO 14001 certification
ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001
Environment Management Systems certification.
ITC Infotech finds pride of place among a select group of SEI
CMM Level 5 companies in the world.
ITC's Green Leaf Threshing plant in Chirala is the first in
India and among the first 10 units in the world to bag the Social
Accountability (SA 8000) certification.
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ITC Chairman Y C Deveshwar has received several honours over the years. Notable among
them are:
Year Awards
2007 SAM/SPG Sustainability Leadership Award conferred at the
International Sustainability Leadership Symposium, Zurich.
2006 Business Person of the Year from UK Trade & Investment, the
UK Government organization that supports overseas businesses in
that country.
2006 Inducted into the `Hall of Pride' by the 93rd Indian Science
Congress
2005 Honoured with the Teacher's Lifetime Achievement Award
2001 Manager Entrepreneur of the Year from Ernst & Young Retail
Visionary of the Year from Images, India's only fashion and retail
trade magazine
Some of the other notable recognitions are:
The Stockholm Challenge 2006 for the e-Choupal initiative. This award is for using
Information Technology for the economic development of rural communities.
The Corporate Social Responsibility Crown Award for Water Practices from
UNESCO. ITC also received the National Award for Excellence in Water
Management 2007 in the 'beyond the fence' category from the CII Sohrabji Godrej
Green Business Centre
The Readers' Digest Pegasus Award for corporate social responsibility, recognizing
outstanding work done by socially conscious companies.
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 programs across 7 states in India.
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The 'Enterprise Business Transformation Award' for Asia Pacific (Apac), instituted by Infosys
Technologies and Wharton School of the University of Pennsylvania for its celebrated e-
Choupal initiative.
The Business Today Award for the Best Managed Company in recognition of its
outstanding initiatives in the consumer products segment.
The only Indian FMCG company to have featured in the Forbes 2000 list. The
Forbes 2000 is a comprehensive ranking of the world's biggest companies, measured by
a composite of sales, profits, assets and market value. The list spans 51 countries and 27
industries.
The NDTV Profit Business Leadership Award for being the Best Food Company
of 2007. The Award has been instituted to recognize organizational excellence.
The CNBC-TV18's International Trade Award 2008 for Outstanding Exporter of
the Year in the FMCG & Food category.
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CHAPTER-2
COMPANY
PROFILE
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2.1 HISTORY OF ITC,LTD.
ITC was incorporated on August 24, 1910 under the name of 'Imperial TobaccoCompany of India Limited'. Its beginnings were humble. The Company
celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the
sum of Rs 310,000. This decision of the Company was historic in more ways than
one. It was to mark the beginning of a long and eventful journey into India's
future. The Company's headquarter building, 'Virginia House', which came up on
that plot of land two years later, would go on to become one of Kolkata's most
venerated landmarks. The Company's ownership progressively Indianised, and the
name of the Company was changed to I.T.C. Limited in 1974. In recognition of
the Company's multi-business portfolio encompassing a wide range of businesses
- Cigarettes & Tobacco, Hotels, Information Technology, Packaging,
Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing
and Greeting Gifting & Stationery - the full stops in the Company's name were
removed effective September 18, 2001. The Company now stands rechristened
'ITC Limited'.
Though the first six decades of the Company's existence were primarily devotedto 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 Division was set up in 1925 as a strategicbackward integration for ITC's Cigarettes business. It is today India's most
sophisticated packaging house.
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In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai
which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the
hotels business was rooted in the concept of creating value for the nation. Since then ITC's
Hotels business has grown to occupy a position of leadership, with over 70 owned and managed
properties spread across India.
In 1979, ITC entered the Paperboardsbusiness by promoting ITC BhadrachalamPaperboards Limited, which today has become the market leader in India. 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 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), nearCoimbatore, Tamil Nadu.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and Britishjoint venture. Since inception, its shares have been held by ITC, British American
Tobacco and various independent shareholders in Nepal. In August 2002, it
became a subsidiary of ITC Limited and its name was changed to Surya Nepal
Private Limited (Surya Nepal).
In 2000, ITC launched a line of high quality greeting cards under the brand name'Expressions'. In 2002, the product range was enlarged with the introduction of
Gift wrappers, Autograph books and Slam books. In the same year, ITC also
launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight
languages and 'Expressions Paperkraft', a range of premium stationery products.
In 2003, the company rolled out 'Classmate', a range of notebooks in the school
stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range ofinternational 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
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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 platformfor the Fashion Design industry. To mark the occasion, ITC launched a special
'Celebration Series', taking the event forward to consumers. In 2007, the
Company introduced 'Miss Players' - a fashion brand in the popular segment for
the young woman.
2.2 ITC,LTD. PROFILE
ITC is one of India's foremost private sector companies with a market capitalization of
nearly US $ 15 billion and a turnover of over US $ 4.75 billion. ITC is rated among the
World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies
by Forbes magazine, among India's Most Respected Companies by Business World and
among India's Most Valuable Companies by Business Today. ITC also ranks among
India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand
Finance and published by the Economic Times.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Packaging, Agri-Business, Packaged Foods & Confectionery, Information
Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG
products. While ITC is an outstanding market leader in its traditional businesses of
Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market
share even in its nascent businesses of Packaged Foods & Confectionery, Branded
Apparel and Greeting Cards.
As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y.C. Deveshwar calls this source of inspiration
"a commitment beyond the market".
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ITC's diversified status originates from its corporate strategy aimed at creating multiple
drivers of growth anchored on its time-tested core competencies: unmatched distribution
reach, superior brand-building capabilities, effective supply chain management and
acknowledged service skills in hoteliering.
ITC's Agri-Business is one of India's largest exporters of agricultural products.
ITC is one of the country's biggest foreign exchange earners (US $ 2.8 billion in
the last decade). The Company's 'e-Choupal' initiative is enabling Indian
agriculture significantly enhance its competitiveness by empowering Indian
farmers through the power of the Internet.
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
aggressively pursuing emerging opportunities in providing end-to-end IT solutions,
including e-enabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international
awards for quality, productivity, safety and environment management systems. ITC was
the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 21,000 people at more than 60 locations across India. This over-arching vision
of the company is expressively captured in its corporate positioning statement: "Enduring Value.
For the nation. For the Shareholder."
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2.3 MANAGEMENT
Yogesh Chander Deveshwar-- chairman and whole time director
Sahibzada Syed Habib Ur Rehman-- executive director
Anup Singh-- executive director
Krishnamoorthy Vaidyanath-- executive director
John Patrick Daly-- non-executive director
Hugo Geoffrey Powell-- non-executive director
Sunil Behari Mathur-- non-executive director
Dinesh Kumar Mehrotra-- non-executive director
Pillappakkam Bahukutumbi Ramanujam-- non-executive director
Basudeb Sen-- non-executive director
Ram S Tarneja-- non-executive director
Balakrishnan Vijayaraghavan-- non-executive director
Serajul Haq Khan-- non-executive director
Anil Baijal-- non-executive director
Ravinder Kumar Kaul-- non-executive director
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2.4
T h e I T C L e a d e r s h i p
Flowing from the concept and principles of Corporate Governance adopted by the
Company, leadership within ITC is exercised at three levels. The Board of Directors at
the apex, as trustee of shareholders, carries the responsibility for strategic supervision of
the Company. The strategic management of the Company rests with the Corporate
Management Committee comprising the whole time Directors and members drawn from
senior management. The executive management of each business division is vested with
the Divisional Management Committee (DMC), headed by the Chief Executive. Each
DMC is responsible for and totally focused on the management of its assigned business.
This three-tiered interlinked leadership process creates a wholesome balance between
the need for focus and executive freedom, and the need for supervision and control.
ITC is a board-managed professional company, committed to creating enduring value for
the shareholder and for the nation. It has a rich organizational culture rooted in its core
values of respect for people and belief in empowerment.
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ITCs corporate strategies are:
Create multiple drivers of growth by developing a portfolio of world classbusinesses that best matches organizational 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 ofMarket 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 byblending the diverse skills and capabilities residing in ITCs various businesses.
Create distributed leadership within the organization by nurturing talented andfocused top management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems.
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2.5
ITC's Core Values are aimed at developing a customer-focused, high-
performance organization which creates value for all its stakeholders:
Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by
all our stakeholders. We will actualize stakeholder value and interest on a long term
sustainable basis.
Customer Focus
We are always customer focused and will deliver what the customer needs in terms of
value, quality and satisfaction.
Respect for People
We are result oriented, setting high performance standards for ourselves as individuals
and teams. We will simultaneously respect and value people and uphold humanness and
human dignity.
We acknowledge that every individual brings different perspectives and capabilities to
the team and that a strong team is founded on a variety of perspectives. We want
individuals to dream, value differences, create and experiment in pursuit of opportunities
and achieve leadership through teamwork.
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Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation
We will constantly pursue newer and better processes, products, services and
management practices.
Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit
of our goals, we will make no compromise in complying with applicable laws and
regulations at all levels.
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2.5
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CHAPTER3
PRODUCT
AND
SERVICES
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1.1 FOODS
ITC made its entry into the branded & packaged Foods business in August 2001 with the
launch of the Kitchens of Indiabrand. 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 deepunderstanding of the Indian palate and the expertise required to translate this knowledge
into delightful dining experiences for the consumer. ITC has stood for quality products
for over 96 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.
Leadership in the Foods business requires a keen understanding of the supply chain for
agricultural produce. ITC has over the last 96 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. The Foods business is
today represented in 4 categories in the market. These are:
Ready To Eat Foods Staples Confectionery Snack Foods
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In order to assure consumers of the highest standards of food safety and hygiene, ITC is
engaged in assisting outsourced manufacturers in implementing world-class hygiene
standards through HACCP certification. The unwavering commitment to internationally
benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6
brands:
Kitchens of India Aashirvaad Sunfeast mint-o Candyman Bingo!
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2.2 LIFESTYLE RETAILING
ITCs 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 ofWills Classic work wear, Wills Sport
relaxed wear, Wills Clublife evening wear, fashion accessories. Wills Lifestyle has also
introduced Wills Signature designer wear, designed by the leading designers of the
country.
With a distinctive presence across segments at the premium end, ITC has also established
John Players as a brand that offers a complete fashion wardrobe to the male youth of
today. The recent launch ofMiss Players with its range of trendy fashion wear for young
women has been a successful addition to the youth portfolio. With its brands, ITC is
committed to build a dominant presence in the apparel market through a robust portfolio
of offerings.
ITC's Wills Lifestyle believes in the philosophy of 'Enjoying
the Change' - the change that comes through actively exploring one's own
multifacetedness and stretching one's limits. This season, Wills Lifestyle presents a
complete fashion wardrobe that complements every facet of your lifestyle - at work,
when you're relaxed and while you party.
Wills Lifestyle has been established as a chain of exclusive specialty stores providing theIndian consumer a truly 'International Shopping Experience' through world-class
ambience, customer facilitation and clearly differentiated product presentation.
Superbrand 2006 was awarded to Wills Lifestyle by the Superbrands Council of
India. At the Images Fashion Awards 2001 & 2003, Wills Lifestyle was declared ' The
Most Admired Exclusive Brand Retail Chain of the Year'.
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ITC forayed into the youth fashion segment with the launch of John Players in
December 2002 and John Players is committed to be the No. 1 fashion brand for the
youth. This foray leverages ITCs proven competencies in understanding consumer
insights, brand building and design capabilities.
At the Images Fashion Awards 2005,John Players was declared 'The Most Admired
Shirt Brand of the Year' and at the Images Fashion Awards 2007, John Players was
awarded the 'The Most Admired Fashion Campaign of the Year' award.
The recent launch ofMiss Players has added to the youth portfolio. The range which
spans across trendy tops, funky denims, smart trousers and stylish dresses along with a
whole range of cool fashion accessories has been designed keeping in mind the tastes of
the female youth of the country.
Miss Players is currently available at select exclusive stores and at leading John Players
stores in key cities.
Having built a powerful brand portfolio that is making waves across the country, ITC's
Lifestyle Retailing is poised to grow and build a dominant presence in the country's
fashion industry.
Wills Lifestyleis now title partner of the countrys most premier fashion event - Wills
Lifestyle India Fashion Week.
Wills Classic work wear was launched in November 2002, providing thepremium
consumer a distinct product offering and a unique brandpositioning. Featuring luxurious
fabrics crafted to perfection with themost contemporary styling.
Wills Classic work wear is positioned as the brand for new age leaders,who are changing
the rules of business and encouraging a dynamicculture of enterprise, innovation and
teamwork. Showcasing the epitomeof new age luxury. Experience a new language ofcharming sophisticationthis season.Having established a distinctive presence in the
premium apparel segmentin a short span of time with Wills Sport premium relaxed wear
and WillsClassic new age work wear, Wills Lifestyle launched Wills Clublife inMay
2003 in the growing evening wear segment, thereby strengtheningits portfolio in the
premium segment.
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Evening wear inspired by the allure and intrigue of the dark. Sensuousfabrics and
seductive patterns add to the magical enchantment.Charm in style.
2.3 PERSONAL CARE
Essenza Di Wills
Continuing with its philosophy of bringing to Indian consumers worldclass products thatenrich the quality of their lives, ITC launched EssenzaDi Willsan exclusive range of
fine fragrances and bath & body careproducts for men and women in July 2005. Inizio,
the signature rangeunder Essenza Di Wills provides a comprehensive grooming
regimenwith distinct lines for men (Inizio Homme) and women (Inizio Femme).
The rich and sensual fine fragrances are all day offerings designed by the leading
international fragrance houses in France. The personal care range includes a host of bath
and body care products that share the same olfactory signature of the mens and womens
fine fragrances to offer you a harmonized fragrance experience.
Inizio by Essenza Di Wills promises you a timeless experience. An invitation to discover
your true essence, your soul. At select Wills Lifestyle stores. Enjoy the Change.
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Fiama di wills
In September 2007, ITC launched Fiama Di Wills, a premium range of personal care
products comprising shampoos, conditioner, shower gels and soap. This premium
range is a unique blend of nature and science that promises gentle effective care. It is an
outcome of 4 years of extensive research and development by experts at ITC R&D
Centre. The packaging for all Fiama Di Wills products has been developed by a leading
European design firm and the fragrances have been developed by an international
fragrance house in France.
The Fiama Di Wills product line also consists of a 3-variant range of transparent shower
gels which are unique as they come with suspended beads.
The Fiama Di Wills range of soaps has been launched under the sub - brand Skin Sense.
The first variant to be introduced in this range is Soft Green. This is a gentle caring soap,
which helps enhance retention of skin proteins making skin look beautiful and youthful.
Vivel di wills
Between February and June 2008, ITC expanded its personal care portfolio with thelaunch ofVivel Di Wills and Vivel brands. Vivel Di Wills, a range of soaps, and Vivel,
a range of soaps and shampoos, cater to the specific needs of a wide range of consumers.
Backed by consumer insights, these ranges offer the unique value proposition of
providing the multiple benefits of Nourishment, Protection and Hydration in every single
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product. Thus providing, the ever-discerning consumer, complete care. The Vivel range
of shampoos is available in three variants.
Superia
In the popular segment, ITC has launched a range of soaps and shampoos under the brand
name Superia.Superia Soaps enriched with natural ingredients give radiant glowing skin.
Superia Soaps are available in four variants :
Superia shampoos with triple conditioners and natural ingredients bring a natural shine to
hair. Superia shampoos are available in two variants.
2.4
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ITC is the market leader in cigarettes in India. With its wide range of invaluable brands, it
has a leadership position in every segment of the market. It's highly popular portfolio of
brands includes Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut,
Scissors, Capstan, Berkeley, Bristol and Flake.
The Company has been able to build on its leadership position because of its single
minded focus on value creation for the consumer through significant investments in
product design, innovation, manufacturing technology, quality, marketing and
distribution.
ITC's pursuit of international competitiveness is reflected in its initiatives in the overseas
markets. In the extremely competitive US market, ITC offers high-quality, value-priced
cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key player in the
GCC markets through growing volumes of its brands.
ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru, Munger,
Saharanpur and Kolkata. These factories are known for their high levels of quality,
contemporary technology and work environment.
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2.5 EDUCATION AND STATIONARY PRODUCTS
ITC is blending its core capabilities to market a growing range of greeting, gifting &
stationery consumer products. These capabilities include:
i. Manufacturer of India's first environment friendly Elemental Chlorine Free (ECF)pulp, paper & paperboard
ii. Knowledge of image processing, printing & conversion garnered from itsPackaging & Printing Business
iii. Brand Building & Trade marketing & distribution strengths resident in its FMCGBusiness
ITC's stationery Brands are marketed as "Classmate" and "Paperkraft", with
Classmate addressing the needs of school goers and Paperkraft targeted towards college
students and executives.
The Paperkraft range consists of premium stationery with a wide variety for executives
to choose from. The assortment consists of notepads & multi subject notebooks in hard,
soft covers & multiple binding formats including spirals, wiros etc.
Classmate - India's largest National brand, reaching 50,000 outlets across the country,has over 300 variants in its range which comprises notebooks, long books, practical
books, drawing books, scrap books, reminder pads etc.
A recent addition to the Classmate portfolio has been the Classmate Fun N Learn range
of children books targeting preschool learners.
The Classmate range builds in regional preferences and caters to the requirements of All
India & State Education Boards. Every Classmate notebook carries ITC's Corporate
Social Responsibility message on its back-cover. For every two Classmate Notebooks
sold, ITC contributes Re. 1 to itsrural development initiative that supports, among other projects, primary education in
villages.
The Business has launched Geometry Boxes for school students branded as Classmate
Invento. The Mathematical Instruments Box comprises world-class precision compass,
high quality plastic instruments coupled with interesting trivia and useful information.
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ITC also markets a range of Greeting Cards and Gifting products under the Brand
"Expressions". The gifting portfolio includes autograph books, slam books, party
invitations, letter pads, gift-wraps, popup books & mini books. The business also markets
Expressions Regalia, a connoisseur's collection of greeting cards.
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2.6 SAFETY MATCHES
As part of its strategic initiative to create multiple drivers of growth in the FMCG sector,
ITC has commenced marketing safety matches sourced from the small-scale sector. This
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.
These matches are available in unique designs and with innovative value added features.
ITC's brands like iKno, Mangaldeep, VaxLit, Delite and Aim have already become
popular. The Aim brand is already the largest selling brand of Safety Matches in India.
Export of premium brands has also commenced to markets such as Europe, Africa and
the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly
owned subsidiary of ITC is expected to further consolidate the market standing of the
Company's Matches business through synergy benefits of 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.
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2.7 AGARBATTIS
As part of ITC's business strategy of creating multiple drivers of growth in the FMCG
sector, the Company has commenced marketing agarbattis (incense sticks) sourced from
small-scale and cottage units. 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.
ITC has launched Mangaldeep Agarbattis across a wide range of fragrances like Rose,
Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and
Mogra. Recently, a new fragrance Yantra has been launched which evokes the ambience
of a temple. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer
a choice of fragrances in a single pack. The 'Mangaldeep' brand is fast emerging as the
only national brand in an industry dominated by multiple local brands. Mangaldeep is
also being exported to United States of America, United Arab Emirates, Bahrain, Nepal,
Singapore, Malaysia, Oman and South Africa.
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. Six of ITC's small scalemanufacturers are the first in the country to receive the ISO 9000-2001certification for
agarbatti making.
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2.8 HOTELS
ITC Limited entered the hotels business in 1975 with the acquisition of a hotel in
Chennai, which was rechristened Hotel Chola. Since then the ITC-Welcomgroup brand
has become synonymous with Indian hospitality. Today amongst India's finest and
fastest growing hotel chains, it consists of over 70 hotels across as many destinations in
India. These include super deluxe and five star hotels, heritage palaces, havelis and
resorts and full service budget hotels.
The 440-room ITC Maurya at New Delhi is not only amongst the leading business hotel
in the country, but is in a class by itself. Complete with the 'ITC One', the hotel has
played host to a galaxy of world dignitaries, including Bill Clinton and Bill Gates. In
fact, even as he was leaving the White House, the former US President nostalgically
recalled the memories of a fabulous Indian meal he and his family had at the Bukhara
restaurant in the hotel. Bukhara has been declared the Best Indian Restaurant in the
world, by 'The Restaurant Magazine', UK. It has also been voted the Best Restaurant
in Asia and is the only Indian restaurant to feature in the list of50 Best Restaurants in
the World for five yearssince 2002.
Another landmark hotel - the ITC Grand Central in Parel, Mumbai was formally
inaugurated in January 2005. This five star deluxe property with 242 suites and rooms
offers international standards of service, state of the art amenities and culinary
excellence.
ITC Mughal at Agra, a proud recipient of Asia's first Aga Khan Award for Architecture,
is an outstanding resort hotel, lavishly spreading across 35 acres of beautifully
landscaped Mughal gardens.
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The 386-room ITC Maratha, opened in February 2001, is perceived as amongst the
leading and the finest properties in Mumbai, designed in a grandiose classic style, the
hotel pays tribute to Mumbai's colonial roots and the spirit of the Great Marathas.
ITC-Welcomgroup pioneered a holistic concept of "branded accommodation" in the
hospitality industry. It was the first to launch the powerful idea of a 'Hotel within a
Hotel' by segmenting and branding the hotel services. It created the exclusive 'ITC
One', 'The Towers' and the 'Executive Club' each catering to the needs of the global
business traveler with unmatched quality and a range of services.
In 2007, ITC-Welcomgroup entered a new phase in its collaboration with StarwoodHotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood in
bringing its premium brand, the Luxury Collection, to India. The seven hotels which
are part of this collection are:
ITC Maurya in Delhi ITC Maratha in Mumbai ITC Sonar in Kolkata ITC Grand Central in Mumbai ITC Windsor in Bengaluru ITC Kakatiya in Hyderabad and ITC Mughal in Agra.
The agreement also includes the rebranding of WelcomHotel New Delhi as a Sheraton,
while The Chola and The Park in Chennai, and The Rajputana in Jaipur retain their
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Sheraton con
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2.9 PAPERBOARDS AND SPECIALTY PAPERS
Following the amalgamation of the erstwhile ITC Bhadrachalam Paperboards Limited
with ITC in 2002, the Paperboards and Specialty Papers businesses were merged to
harness strategic and operational synergies. The Division today produces above 400,000
TPA of paperboards and fine papers
The Divisions full range of products is depicted in the chart below :-
ITC is one of the world's most modern and contemporary manufacturers of packagingand graphic series of boards. ITC's Paperboards business has a manufacturing
capacity of 360,000 (TPA) tonnes per annum and is India's market leader across all
carton-consuming segments including cigarettes, foods, beverages, pharma,
personal care & toiletries, durables and match shells. ITC makes some of the
premium graphic boards used for greeting cards, covers, sleeves, tags and playing
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cards. The Company produces both Virgin and Recycled boards spanning the full
requirement of a packaging customer.
The erstwhile ITC Bhadrachalam Paperboards Limited was incorporated
in 1975. It set up an integrated pulp and paper/board manufacturing
facility in 1979 at Bhadrachalam in Andhra Pradesh in South India, 300
kms.0020east of Hyderabad. Since then, the mill facilities have been
continuously upgraded to achieve internationally benchmarked
quality standards and operational efficiencies.
In September 2002, ITC's Bhadrachalam Paperboard Unit commissioned an
110,000 TPA Elemental Chlorine Free (ECF) fiber line. This is a state-of-the-art fiberline and the only one in India, which meets effluent norms, set by the Ministry of
Environment and Forests of the Government of India and Pollution Control Boards.
In November 2003, ITC acquired the paperboard manufacturing facility of BILT
Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.
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2.10 PACKAGING
ITC's Packaging & Printing Business is the country's largest converter of paperboard
into packaging. It converts over 35,000 tonnes of paper and paperboard per annum into a
variety of value-added packaging solutions for the food & beverage, personal products,
cigarette, liquor, etc. 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.
Its client list includes several well-known national and international companies like
British American Tobacco, Surya Nepal Private Limited, VST Industries, UB
Group, Seagram, Allied Whyte & Mackay, Hindustan Lever, Tata Tetley and
Nestle, etc.
With two ISO 9000:2000 certified & ISO 14001 certified packaging factories at
Tiruvottiyur near Chennai and Munger in Bihar, and a third factory coming up at
Uttaranchal, the Company offers a comprehensive product range in packaging:
Flip-top boxes Display outers Shells and slides Softcup and strap Labels Bundle wraps Flap boxes Inner frames Coupon inserts Folding cartons Shoulder boxes Pre-printed cork tipping Flexible packaging
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ITC occupies a leadership position in cigarette and liquor packaging in India. It supplies
packaging to cover 70 billion cigarettes a year domestically, and supplies packaging for
15 billion cigarette sticks a year for the export market. It is the largest supplier of liquor
mono cartons in the country.
ITC has enhanced the value of some of the most favoured brands with superior look-and-
feel packaging, using the best raw materials and process combinations, and an in-house
pre-press Design Centre.
A Product Introduction Process team pioneers packaging innovations. The team uses a
unique process to pilot the client's packaging through its manufacturing system.
Specifications are evolved based on clients' needs. Corresponding to the specifications, a
variety of packaging solutions is then generated. The efficacy of the packaging is tested
simulating the client's factory condition.
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2.11 AGRI-EXPORTS
ITC's International Business Division (IBD) is the country's second largest exporter
ofagri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic
sales of agri-products are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently
focuses on exports of:
Feed Ingredients - Soya meal
Food grains - Rice (Basmati & Non Basmati), Wheat, Pulses
Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil
Marine Products - Shrimps and Prawns
Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits,
Organic Fruit Products, Fresh Fruits
Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger,
Celery and other Seed Spices and other Seed Spices
Although one of the relatively younger business divisions of ITC, it has, in a short spanestablished itself as a first-choice supply chain partner of several leading international
customers. Its major customers include Cargill, Marubeni, Toepfer, among others, who
source agriculture commodities and food products from India. Itscustomerrelationship
management has enabled it to achieve a very high reputation for quality, reliability and
value added services.
ITC's unique strength in this business is the extensive backward linkages it has
established with the farmers. This networking with the farming community has enabled
ITC to build a highly cost effective procurement system. ITC has made significant
investments in web-enabling the Indian farmer. Christened 'e-Choupal', ITC's web planfor the farmer centers around providing Internet kiosks in villages.
Following the impressive success of e-Choupal, the Company unveiled the first 'Choupal
Saagar' near Sehore in Madhya Pradesh in August 2004. Seventeen more 'Choupal
Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and
Uttar Pradesh. The 'Choupal Saagar' is a rural hypermarket which provides multiple
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services under one roof. It creates a platform for farmers to sell their produce. Farmers
can also buy quality products for their farm and household consumption from 'Choupal
Saagar'.
The business is progressing a pilot project for retailing fresh fruits and vegetables. Three
Choupal Fresh Cash & Carry Stores are currently operational at Hyderabad, Pune &
Chandigarh.
In Processed Fruits category, ITC exports from HACCP Certified plants to Western
Europe, North Africa, Mid-East, Japan and North America, a wide range of Processed
Fruits products made from Mango (Alphonso, Kesar & Totapuri), Guava, Papaya, &
Pomegranate for Industrial and Consumer use. ITC is the leading Indian exporter of
Organic Fruit Products Certified to European & US Standards.
Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP Certified
Farmer groups & retailed through prominent supermarkets like Sainsbury's & Albert
Heijn in Europe, Daiei in Japan. ITC's countrywide network of procurement teams,
handling agents and contemporary warehousing facilities enable it to source quality
merchandise even at short notice. ITC's processors are handpicked reliable outfits which
ensure hygienic processing and modern packaging. Strictest quality control is
exercised at each stage to preserve the natural flavors, taste and aroma of the
various agri-products.
ITC has been a significant exporter of sea foods 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. ITC's International 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.
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2.11 E-CHOUPAL
ITCs International Business Division, one of Indias largest exporters of agricultural
commodities, has conceived e-Choupal as a more efficient supply chain aimed atdelivering 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 unique features of Indian agriculture, characterized by fragmented farms, weak
infrastructure and the involvement of numerous intermediaries, among others.
The Model in Action:
Appreciating the imperative of intermediaries in the Indian context, e-Choupal
leverages Information Technology to virtually cluster all the value chain participants,delivering the same benefits as vertical integration does in mature agricultural economies
like the USA.
e-Choupal makes use of the physical transmission capabilities of curren t
intermediaries aggregation, logistics, counter-party risk and bridge financing while
disinter mediating them from the chain of information flow and market signals.
With a judicious blend of click & mortar capabilities, village internet kiosks managed by
farmers called sanchalaks themselves, enable the agricultural community access
ready information in their local language on the weather & market prices, purchase farmproduce from the farmers doorsteps (decision making is now information-based), etc.
Real-time information and customized knowledge provided by e-Choupal enhance the
ability of farmers to take decisions and align their farm output with market demand and
secure quality & productivity. The aggregation of the demand for farm inputs from
individual farmers gives them access to high quality inputs from established and reputed
manufacturers 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. Thereby it significantly reduces transaction costs.
e-Choupal ensures world-class quality in delivering all these goods & services through
several product/service specific partnerships, in addition to ITCs own expertise. While
the farmers benefit through enhanced farm productivity and higher farm gate prices, ITC
benefits from the lower net cost of procurement (despite offering better prices to the
farmer) having eliminated costs in the supply chain that do not add value.
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The Value Chain - Farm to Factory Gate:
E-Choupal also unshackles the potential of Indian farmer who has been trapped in a
vicious cycle of low risk taking ability > low investment > low productivity > weak
market orientation > low value addition > low margin > low risk taking ability. This
made him and Indian agribusiness sector globally uncompetitive, despite rich & abundant
natural resources.
Such a market-led business model can enhance the 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 and 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.
The Status of Execution:
Launched in June 2000, 'e-Choupal', has already become the largest initiative among all
Internet-based interventions in rural India. 'e-Choupal' services today reach out to more
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than 3.5 million farmers growing a range of crops - soyabean, coffee, wheat, rice, pulses,
shrimp - in over 38,500 villages through nearly 6500 kiosks across nine states (Madhya
Pradesh, Haryana, Uttaranchal, Karnataka, Andhra Pradesh, Uttar Pradesh, Maharashtra,
Rajasthan and Kerala).
The problems encountered while setting up and managing these e-Choupals are
primarily of infrastructural inadequacies, including power supply, telecom connectivity
and bandwidth, apart from the challenge of imparting skills to the first time internet users
in remote and inaccessible areas of rural India.
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2.12 LEAF TOBACCO
ITC pioneered the cultivation and development of Leaf Tobaccos in India. Nearly a
century of creating customer delight ensures that globally, ITC's Leaf Tobacco business
is synonymous with being "The One Stop Shop for Quality Indian Tobaccos" . The Leaf
Tobacco business' partnership with the farmer is also almost 100 years old. In a spirit that
truly embodies the Company's "commitment beyond the market".
ITC is the largest buyer, processor and exporter of leaf tobaccos in India - creating
a global benchmark as the single largest integrated source of quality tobaccos.
Serving customers in 48 countries across more than 69 destinations, ITC co-creates
and delivers value at every stage of the leaf tobacco value chain.
ITC buys nearly 50 per cent of all tobacco types grown in India. It has a team of
experienced, highly skilled and professional buyers and classifiers who source and
segregate tobaccos to exacting customer specifications.
ITC's comprehensive and sophisticated R&D facilities cover all aspects of
cultivation, product development and processing through fundamental and applied
research. Thus, ITC's value proposition to its customers is "On Time In Full" delivery
of quality tobaccos spanning across all tobacco types at competitive prices.
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2.13 ITC INFOTECH
ITC Infotech, a global IT services company, is today one of Indias fastest growing IT
services and solutions providers.
Based out of a picturesque 35 acre campus in the heart of Bangalore city, ITC Infotech,
through wholly-owned subsidiaries in the UK and US, provides outsourced IT services
and solutions to leading global customers.
ITC Infotech offers IT services and solutions across five key industry verticals: Banking,
Financial Services & Insurance (BFSI), Consumer Packaged Goods (CPG) & Retail,
Manufacturing & Engineering Services, Travel, Hospitality & Transportation and
Media & Entertainment.
ITC Infotech enjoys the rare advantage of having a practitioners 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
ca pabilities and world class quality processes form the foundation of ITC Infotechs
cutting-edge IT service strength, a sharp domain focus ensures that IT and ITeS deliveryalways places business needs ahead of technology.
ITC Infotech has carved a niche for itself as a leading global IT solutions provider by
addressing customer pain points through innovative solutions. ITC Infotechs leadership
capabilities also accrue from business critical engagements with leading organizations
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, SEI CMM Level 5 and BS 7799 accreditations. These reflect the
companys ongoing enterprise-wide focus to ensure that every engagement, program andproject delivers international quality consistently.
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Industry Recognition
Premier analyst and market research agencies have recognized ITC Infotechs position as
the preferred IT partner. It has been::
Featured amongst Top 100 Global Outsourcing Companies in the Leaderscategory - International Association of Outsourcing Professionals .
Ranked amongst Top 10 Specialty Application Development Providers -Global Services, CMP Media .
Named amongst major Indian global service providers for PLMimplementation and engineering services - ARC Advisory.
Listed as a leading Player in CRM & CPG SpaceForrester .
Mentioned amongst Top Offshore SAP Service ProvidersForrester.
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2.14 PRESERVING NATIONAL HERITAGE
As a socially responsible corporate citizen, ITC endeavors to create value for the
Indian society in multiple ways, one of them being preservation of India's rich
cultural heritage. ITC has made significant contribution to the promotion of Indian
classical music, theatre, art and cuisine.
In d i a n Cl a s s i c a l Mu s i c . . . . . . . . .
ITC established the prestigious ITC
Sangeet Research Academy (ITC-
SRA) at Kolkata in 1978 with the
objective of preserving and
promoting Hindustani Classical
Music. It was a pioneering andunique corporate initiative aimed at
creating an institutional substitute
for India's ancient tradition of royal patronage of the arts. It was
also a path breaking experiment in reviving India's age-old
tradition of `guru-shishya parampara', a knowledge management
process in which teachers and students live together to facilitate continuous learning.
In a telling demonstration of the effectiveness of the gurukul system, ITC-SRA, in the 29
years plus since its inception, has produced several maestros of Hindustani classical
music. They include Ajoy Chakrabarty and Rashid Khan, both of whom have achievednational acclaim. Other equally well-known and reputed musicians from the ITC-SRA
gurukul are: Arun Bhaduri and Mashkoor Ali Khan. Upcoming young musicians like
Shantanu Bhattacharya, Aniruddha Bhattacharya, Kaushik Bhattacharya, and many other
were also groomed in the academy while the likes of Arshad Ali, Nilanjana Roy and
Supratik Sengupta (sitar), all still students of the gurukul, have already begun to receive
recognition for their musical prowess.
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The ITC Sangeet Sammelans, which have since spread to other metros as well, have
become an annual feature and are admired and appreciated by music lovers across the
country.
Today re-creating a tradition.
Tomorrow spreading it to the world.
We l c o mTh e a t r e . . . . . . . . . . . . . . . .
ITC's hotels business (ITC-Welcomgroup) actively supports the cause of theatre.
`WelcomTheatre', launched a decade ago, showcases the best of Indian theatre
productions, especially the experimental stage.
W e l c o m A r t . . . . . . . . . . . . . . . .
Welcomgroup also supports contemporary Indian art under the banner of `WelcomArt'.
The Shristi art galleries located at various Welcomgroup hotels regularly sponsor theworks of upcoming Indian artists. WelcomArt also conducts art camps where senior
accomplished artists guide budding talent, often leading to new discovery of promising
young artists.
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K i t c h e n s o f In d i a . . . . . . . . . . . .
ITC-Welcomgroup has done pioneering work in reviving India's Heritage cuisine. It has
combined extensive research and the exceptional skills of its chefs to recreate some of the
finest cuisine from India's history. These include:
`Dum Pukht', the cuisine and unique style of cooking popularized by the aristocratic
Nawabs of Awadh two centuries ago.
`Bukhara', the authentic north-west frontier cuisine served at the restaurant of the samename located at the ITC Maurya. Its long list of admirers consists of the `who's who'
international travelers including the former US President, Mr. Bill Clinton.
`Dakshin', the handpicked traditional recipes from the four southern states of Karnataka,
Kerala, Tamil Nadu and Andhra Pradesh.
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ITC. Working for you. Working for India.
Even as its brands delight consumers and
enrich their quality of life, ITC continues to be powered by its aspiration to make a larger
contribution to national imperatives.
Like empowering farmers, greening wastelands, irrigating dry lands, nurturing small
scale enterprises, empowering village
women and supporting rural education.
Because our people and our country
deserve the best.
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CHAPTER-4
RESEARCH
METHODOLOGY
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4.1 Meaning of Research
Redman and Mory define research as a systemized effort to gain new
knowledge. Some people consider research as a movement, a movement from
the known to the unknown.
Research is an academic activity and as such the term should be used in a
technical sense. According to Clifford Woody, 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 conclusions to determine
whether they fit the formulating h ypothesis.
4.2 Objectives of Research
The purpose of research is to discover answers to questions through the
application of scientific procedures. The main aim of research is to find outthe truth which is hidden and which has not been discovered as yet. Though
each research study has its own specific purpose but the research objectives
can be listed into a number of broad categories, as following: -
1. To gain familiarity with a phenomenon or to achieve new insights intoit . Studies with this object in view are termed as exploratory orformulative research studies.
2. To portray accurately the characteristics of a particular individual,situation or a group. Studies with this object in view are known as
descriptive research studies.
3. To determine the frequency with which something occurs or with whichit is associated with something else. Studies with this object in view
are known as diagnostic research studies.
4. To test a hypothesis of a casual relationship between variables. Suchstudies are known as hypothesis-testing research studies.
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4.3 Significance of Research
All process is born of inquiry. Doubt is often better than overconfidence, for
it leads to inquiry and inquiry leads to invention. Is a famous Hudson
Maxim in context of which the significance of research can well be
understood. Increased amounts of research make p rogress possible.
Research inculcates scientific and inductive thinking and it promotes the
development of logical habits of thinking and organization.
The role of research in several fields of applied economics, whether related
to business or to the economy as a whole, has greatly increased in modern
times. The increasing complex nature of business and government has
focused attention on the use of research in solving operational problems.
Research, as an aid to economic policy, has gained added importance, both
for government and business.
4.4 Research Methodology
Research methodology is a way to s ystematically solve the research problem.
It may be understood as a science of studying how research is done
scientifically. In it we study the various steps that are generally adopted by a
researcher in studying his research problem along with the logic behind th em.
It is necessary for the researcher to know not only the research methods or
techniques but also the methodology.
4.5 Data Collection Source
Information was collected through both primary and secondary sources.
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Primary Data: In some cases the researchers may realize the need for
collecting the first hand information. As in the case of everyday life, if we
want to have first hand information or any happening or event, we either ask
someone who knows about it or we observe it ourselves, we do the both.Thus, the two method by which primary data can be collected is observation
and questionnaire.
Secondary Data: Any data, which have been gathered earlier for some other
purpose, are secondary data in the hands of researcher. Those data collected
first hand, either by the researcher or by someone else, especially for the
purpose of the study is known as primary data.
The data collected for this project has been taken from the secondary
source.
Sources of secondary data are:-
Internet Magazines Publications Newspapers
4.6 LIMITATIONS
The information is secondary data due to lack of time for preparationof the project.
The information presented might not be 100% accurate.
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CHAPTER-5
CONCLUSION
&
SUGGESTIONS
5.1 CONCLUSION
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ECONOMIC
A growing portfolio of businesses encompassing FMCG, Paperboards & Packaging,Agri & Foods Business, Hotels and Information Technology.
A turnover of over US$ 5 billion and a market capitalisation of nearly US$ 19 billion. Total Shareholder Returns, measured in terms of increase in market capitalisation and
dividends, grew at a compound rate of over 26% per annum over the last 13 years.
The new FMCG businesses support the competitiveness, technology upgradation andmarket reach of over 150 Small and Medium Enterprises (SMEs).
ENVIRONMENT
ITC has been Carbon Positive three years in a row (sequestering/storing twice theamount of CO2 than the Company emits).
Water Positive six years in a row (creating three times more Rainwater Harvestingpotential than ITC's net consumption).
Close to 100% solid waste recycling. All Environment, Health and Safety Management Systems in ITC conform to the best
international standards.
SOCIAL
ITC's businesses generate livelihoods for over 5 million people. ITC's globally recognised e-Choupal initiative is the world's largest rural digital
infrastructure benefiting over 4 million farming families.
ITC's Social and Farm Forestry initiative has greened over 80,000 hectares creating anestimated 35 million person days of employment among the disadvantaged.
ITC's Watershed Development Initiative brings precious water to nearly 35,000hectares of drylands and moisture-stressed areas.
ITC's Sustainable Community Development initiatives include women empowerment,supplementary education, integrated animal husbandry programmes.
5.2 SUGGESTIONS
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FMCGIt has been suggested that this part of the company should be handled withcare because of immense competition.
E-Choupal ITC Ltd's e-Choupals: Backward Integration as a Forward-LookingStrategy for India's Rural Markets. In addition to being sustainable and scalable, ITC's e-
Choupal model promises to be widely replicable. The belief is that, in managing e-Choupal
networks in areas that are diverse socio-economically and agriculturally, ITC will gain the
expertise needed to replicate the model not only throughout India, but in other developing
countries as well.
Strong brand building capability will be tested. So the company should take care ofthis too.
Strategic forays into emerging high growth markets. This might generate some kindof problems for the company, if things do not go as planned. Therefore, the company
should make good marketing strategies.
Corporate strategy of creating multiple drives of growth anchored on its corecompetencies and distribution reach.
Embracing difficult and challenging corporate strategy.
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CHAPTER-6
PRIMARY DATA
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Survey on ITC Ltd
Name: ___________________
Address: _________________
Mobile no: ________________ Age:_______
Profit of respondent:
a) Student
b) Working Professional
c) Self employed
d) House wife
e) Service
f) Government service
Q1: What is your total family Income?
a) Less than 1,50,000
b) 1,50,000 -3,00,000
c) 3,00,000 -5,00,000
d) More than 5,00,000
Q2: Are you the main earning member of your fa mily?
a) Yes
b) No
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Q3: Do you use any ITC products or services?
a) Yes
b) No
IF yes, then which Product mention it
Q4: Are you satisfied wit h ITC products or services?
a) Yes
b) No
QuestionnaireITC with respect to its FMCG division
1. Would you say that you are well aware of the Company ITC and the FMCG products itoffers to the market?
Yes
No
2. As sales staff, are you motivated enough to promote ITCs products?What are or arent
your reasons for the same?
Yes
Reasons
No
3. Do you receive the ITC products at your retail stores on time and as per schedule?
Always
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Most of the times
Sometimes
Almost never
4. If not, would you say that there are frequent delays or are they few and far between?
Frequent
Few and far between
5. Do you believe the Company deals with these delays effectively and efficiently?
Always
Most of the times
Sometimes
Almost never
6. As retailers and sales staff, would you say the products are well packaged and sealed?
Always
Most of the times
Sometimes
Almost never
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7. As sales managers and staff, are you provided incentive enough to provide and distributethe ITC products in the market with sufficient on-shelf display?
Always
Most of the times
Sometimes
Almost never
8. Does the Company brief you well enough and keep you up-to date via dialogues,brochures, informative lecture series etc so that you, as salespeople, are equipped with
adequate knowledge about the Company and its products that you sell?
Yes
No
9. Have you encountered any major, substantial problems in dealingwith the people at ITC?
Yes
Occasionally
Rarely
Never
10. When you lay out ITC against giants in the FMCG industry like HUL and P&G, can yousay that it has competed effectively and worked hard to promote its products?
Yes
It could do more
No
11. Do you believe ITC has a certain USP that distinguishes it from HUL and P&G? If so,what do you believe it is?
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Yes
USP
Not really
12. Are you comfortable dealing with the people at ITC, in terms of putting forth complaintsor addressing grievances, if any?
Always
Most of the times
Sometimes
Almost never
13. Do you personally believe that ITC products are of a superior quality?
Yes
No
14. Based on customer visits, would you say that a substantial segment of the market aremore than willing to purchase ITC products despite their prices being slightly higher?
Always
Most of the times
Sometimes
Almost never
15. Have you ever had to deal with angry customers who have felt that the ITC products theyreceived were not up to the mark?
Always
Most of the times
Sometimes
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Almost never
16. If so, have you dealt with them personally or referred them back to the Company to dealwith?
Personally
Referred them back to the Company
17. Overall, would you say there is customer satisfaction with regards ITCs FMCGproducts?
Yes, definitely
Possibly
Not really
No
18. ITC is the only FMCG Company that features on the Forbes Global 2000 rankings for
2009 at position 987. Were you aware of this? And if you were, what does this say to you?
Yes, I was aware
Implications
No, I was not aware
19. On a scale of 1-5 (1 being the highest), how would you rate ITC as a FMCGmanufacturer, keeping in mind the larger giants of HUL and P&G?
1
2
3
4
5
20. Are you satisfied with ITC e-choupal scheme in rural areas?
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.Yes
.No
If yes then how much:
.100%
.80%
.50%
.25%
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Questionnaire-Demographic
Q1. Average age of a Vijeta outlet owner is around 36 years (Young &Enterprising).
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BIBLIOGRAPHY
1 . BOOKS
K o t h a r i , C . R . R e s e a r c h M e t h o d o l o g y , 3 r d ed i t ion , 1997 , V ikasP u b l i s h i n g H o u s e P v t . L t d , N e w D e l h i .
2 . WEBSI TES
w w w .marke t resea rch . com w w w . i t cpor t a l . com w w w . ind ian in fo l ine . com Indian Tobacco Company, Website. URL: .
ITC-IBD (International Business Division of the Indian Tobacco Company), e-Choupal Website. URL: http://www.echoupal.com
Reuters. ITC Expands e-Choupal. URL:
.
http://www.marketresearch.com/http://www.marketresearch.com/http://www.indianinfoline.com/http://www.indianinfoline.com/http://www.indianinfoline.com/http://www.marketresearch.com/