ITC Limited ITC Limited

One of Indias Most Admired and Valuable Companies

ITC Performance Track Record
Rs crs
1995-96 2012-13
17-yr Cagr
95-96 to 12-13
Net Revenue 2,536 29,606 15.6%
PBDIT 584 11,566 19.2%
PBIT 536 10,771 19.3%
PBT 452 10,684 20.4%
2
Sensex (CAGR 95-96 to 12-13) : 10.7%
PBT 452 10,684 20.4%
PAT 261 7,418 21.8%
Capital Employed 1,886 23,569 16.0%
ROCE % 28.4 45.7
Market Capitalisation 5,571 244246 24.9%
Total Shareholder Returns % 26.4%
Market Cap and TSR based on FY-end prices
95-96 to
12-13
02-03 to
12-13
07-08 to
12-13
09-10 to
12-13
17 years 10 years 5 years 3 years
GTO 13.2% 14.3% 14.5% 16.9%
CAGR
Consistent performance over 17 year, 10 year, 5 year and 3 year horizons
In terms of Revenue, Profits, TSR Vs. Sensex
Consistency of Performance
3
GTO 13.2% 14.3% 14.5% 16.9%
PAT 21.8% 18.4% 18.9% 22.2%
TSR 26.4% 33.9% 26.7% 35.0%
Sensex 10.7% 20.0% 3.8% 2.4%
TSR and Sensex returns are based on Mar-end of each FY
Rate of growth has accelerated further in the last three years
ITCs ranking
Amongst all listed private sector cos.
PBT: No. 6
PAT: No. 5
4
PAT: No. 5
Market Capitalisation: No. 3
Note: Based on Published Results for H1 FY14, Market Capitalisation based on 31
st
Dec 2013
ITC ITC ITC ITC is the only Indian Company to be ranked is the only Indian Company to be ranked is the only Indian Company to be ranked is the only Indian Company to be ranked
amongst the Top 10 global FMCG companies amongst the Top 10 global FMCG companies amongst the Top 10 global FMCG companies amongst the Top 10 global FMCG companies in in in in
value creation value creation value creation value creation during during during during the period 2008 the period 2008 the period 2008 the period 2008- -- -12 12 12 12
55
value creation value creation value creation value creation during during during during the period 2008 the period 2008 the period 2008 the period 2008- -- -12 12 12 12
(Boston Consulting) (Boston Consulting) (Boston Consulting) (Boston Consulting)
One of the foremost in the private sector in terms of :
Sustained value creation (BT-Stern Stewart survey)
Operating profits
Cash Profits
Only Indian FMCG Company to feature in Forbes 2000 List
One of Indias most valuable and admired companies
6
A comprehensive ranking of worlds biggest companies measured by a
composite of sales, profits, assets & market value
Also ranked amongst the Top 10 global FMCG companies in terms of value
creation during the period 2005-2009 by Boston Consulting Group. Is the only
Indian company to feature consistently amongst the Top 10 global FMCG
companies.
Awards & Accolades (1)
Harvard Business Review ranked
ITC Chairman Y C Deveshwar as
the 7th Best Performing CEO in
the World
ITC conferred
Chairman Y C
Deveshwar was
conferred the
Padma Bhushan by
the Government of
India (2011)
7
ITC conferred
the prestigious
World
Business and
Development
Award 2012
at the Rio+20
UN Summit for
its Social and
Farm Forestry
Initiatives
ITC Grand Chola,
the worlds largest
LEED Platinum
rated hotel in the
New Construction
category, launched
in September 2012
Awards & Accolades (2)
Businessworld
FICCI CSR
award in Large
Enterprise
category
AIM Asian CSR
Award by the
Asian Forum
on Corporate
Social
Responsibility
Rainforest Alliance
awarded ITC's
Bhadrachalam Unit,
the Forest
Stewardship
Council Forest
Management
certification
8
Best Overall
Corporate Social
Responsibility
Performance :
Institute of
Public
Enterprise
Hotels awarded
the Most
Trusted Hotel
brand in the
Public Choice
Honours
category at the
Times Travel
Honours
Accolades & Awards (3)
e-Choupal initiative wins global recognition:
World Development Report 2008 published by
World Bank
Stockholm Challenge Award 2006 in the Economic
Development category which recognises initiatives
that leverage Information Technology to improve
living conditions and foster economic growth in all
parts of the world.
First Indian Company and second in the world to win
the Development Gateway Award 2005 for its trail-
9
the Development Gateway Award 2005 for its trail-
blazing e-Choupal initiative
Corporate Social Responsibility Award from The
Energy and Resources Institute (TERI)
World Business Award 2004: International Chamber
of Commerce & the HRH Prince of Wales &
International Business forum
Harvard University case study
Applauded by the then President of India Dr APJ
Kalam in his special address during the national
symposium to commemorate 60th year of
Independence
ITCs Vision
Sustain ITCs position as one of Indias most
valuable corporations through world class
performance, creating growing value for the Indian
10
performance, creating growing value for the Indian
economy and the Companys stakeholders
ITCs Vision
Make a significant and growing contribution towards :
mitigating societal challenges
enhancing shareholder rewards
By
11
creating multiple drivers of growth while sustaining leadership in
tobacco and
focusing on Triple BottomLine Performance
Enlarge contribution to the Nations
- Financial capital
- Environmental capital
- Social capital
Key Corporate Strategies
Focus on the chosen business portfolio
FMCG; Hotels; Paperboards, Paper & Packaging; Agri Business, Information
Technology
Blend diverse core competencies residing in various businesses to enhance
the competitive power of the portfolio
12
Position each business to attain leadership on the strength of world class
standards in quality and costs
Craft appropriate strategy of organisation and governance process to :
Enable focus on each business and
Harness diversity of portfolio to create unique sources of competitive advantage
ITC Business Portfolio
FMCG
,
Cigarettes Personal Care Foods Lifestyle Retailing
Education & Stationery Matches
Incense Sticks
13
Paperboards, Paper
& Packaging
Hotels
Agri Business
Information
Technology
Strategy of Organisation to manage diversity of Portfolio
Formal 3-tiered governance structure:
Board of Directors :
Comprising executive (4) and non-executive directors (10)
Strategic supervision
Corporate Management Committee :
14
Corporate Management Committee :
Comprising executive directors and senior managers
Strategic management
Divisional Chief Executive &Divisional Management Committee :
Executive management
FMCG - Cigarettes
ITCs Cigarettes Business
Market leadership
Leadership across all segments - geographic & price
Extensive FMCG distribution network
16
Extensive FMCG distribution network
Direct servicing of 1,00,000 markets & 2 million retail
outlets
State-of-the-art technology and world class products
Cigarette Industry in India
Cigarettes account for less than 15% of tobacco consumed in India
unlike world pattern of 85% due to prolonged punitive taxation
Cigarettes (15% of tobacco consumption) contribute the bulk of
Revenue to the Exchequer from tobacco sector
48% of adult Indian males consume tobacco. Only 10% of adult Indian
17
48% of adult Indian males consume tobacco. Only 10% of adult Indian
males smoke cigarettes as compared to 16% who smoke biris and 33%
who use smokeless tobacco (Source: Global Adult Tobacco Survey India
2010)
Annual per capita adult cigarette consumption in India is appx. one
ninth of world average
Per Capita Consumption of Tobacco in India (gms per year)
1145
1256
468
743
18
Source:World Cigarettes ERC Statistics, Tob Board & Industry Estimates gms/Yr
Per Capita consumption is ~60% of World Average
China USA Pakistan Nepal India World
438
461
468
Per Capita Cigarette Consumption per annum
2786
1841
1711
1028
No. of cigarettes per capita per annum
Per Capita consumption in India ~11% of World average
Source: The Tobacco Atlas - 4
th
Edition (American Cancer Society), 2012
Russian Federation Japan China USA Pakistan Nepal Bangladesh India
1028
468
420
154
96
FMCG - Others
20
Drivers of Growth & Value Capture - New FMCG Initiatives
4482
5545
7012
Rs. crs
Rapid Scale up of FMCG businesses
21
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
563
1013
1704
2511
3014
3642
,
Creating world-class brands for Indian Consumers
22
Branded Packaged Foods
23
Biscuits, Staples, Snacks, Confectionery, Ready to Eat & Noodles
Branded Packaged Foods
Amongst one of the fastest growing Foods business in the country
Bakery and Confectionery Foods - Biscuits, Confectionery
Snack Foods - Savoury Snacks, Noodles and Pasta
Staples, Spices and Ready to Eat Foods - Atta, Salt, Spices, Ready to Eat (RTE)
Aashirvaad Staples (Wheat flour, Salt, Spices),
Ready to Eat Ready Meals, Instant Mixes
Atta (wheat flour) - #1 in Branded packaged
Atta among national players
Driven by strong brands-
24
Sunfeast Biscuits, Noodles and Pasta
Bingo! Yumitos Potato Chips, Finger Snacks
Mad Angles, Tedhe Medhe, Tangles
mint-o & Candyman Confectionery
Kitchens of India Ready Meals, Premium
conserves, chutneys & Cooking sauces
Biscuits - #3 All India
Noodles - #2 All India
Savoury Snacks - #2 All India
Confectionery - #3 in Sugar Confectionery
Ready-to-Eat - Leveraging expertise of Hotels
business. Premium Conserves/Chutneys
first in India
Products
Notebooks
Writing
Instruments
(Pen, Pencils etc)
Scholastic
Education & Stationery
25
Scholastic
products
Brands
Classmate
Paperkraft
Education & Stationery Products Business
Leverages print and paper know-how to address suitable opportunities in
the stationery market.
An emerging (currently ` `` `11000 crs Stationery) market in India - growth
driven by increasing cross-cultural exposure, government spending on
26
driven by increasing cross-cultural exposure, government spending on
education
Classmate and Paperkraft continue to gain consumer franchise
Classmate : Market leader in Notebooks segment
Lifestyle Retailing
27
Enhanced lustre & premiumness to brand Wills to a position of eminence
Offering a Lifestyle proposition with portfolio straddling multiple genres
- Wills Lifestyle - a fashion destination, offers a choice of super-premium formals for men,
designer, work, relaxed & evening wear and fashion accessories
- John Players embodies the spirit of the modern youth that is playful, fashionable and cool
Lifestyle Retailing
Upmarket product range available in exclusive Wills Lifestyle stores (95) across
40 cities and more than 500 shop-in-shops in leading departmental stores and
multi-brand outlets.
Strong distribution network in place for the mid-market brand John Players
availability in more than 400 Exclusive Branded outlets, 1500 multi branded
28
availability in more than 400 Exclusive Branded outlets, 1500 multi branded
outlets and departmental stores
Wills Lifestyle rated amongst the Top 5 Luxury brands in India (TIME
magazine)
John Players is the 2
nd
largest brand in the Youth segment
Club ITC a pan-ITC consumer loyalty programme is fast gaining traction
among premium clientele of Will Lifestyle and ITC Hotels.
Safety Matches & Incense sticks (Agarbattis)
29
Safety Matches & Incense sticks (Agarbattis)
Current Safety Matches & Incense sticks industry consumer spend
estimated at ~ ` 6,700 crores
AIM Indias largest selling Safety Matches brand
Mangaldeep : Indias second largest selling Incense sticks brand
30
Mangaldeep : Indias second largest selling Incense sticks brand
ITC markets its brands with value-added products across price points
ITCs Matches & Incense sticks businesses provide livelihood opportunities
to more than 18000 people
Personal Care
Brands:
Essenza Di Wills
Fiama Di Wills
Vivel
Superia
Engage
Product portfolio:
31
Product portfolio:
Personal Wash
(Soaps, Shower Gel)
Hair Care
(Shampoo, Conditioner)
Skin Care
(Skin Cream, Face Wash
etc.)
Deodorants
Talc
Personal Care Products
Current market size estimated at over ` 40,000 crores (growing at 12% p.a.)
Portfolio approach straddling all consumer segments with 4 umbrella brands
Essenza Di Wills
Fiama Di Wills
Vivel
Superia
32
Superia
Recently launched Engage brand in the fast growing deodorants segment well
received
Laboratoire Naturel A state-of-the-art consumer and product interaction
centre leveraged to launch unique and differentiated products
Products continue to receive encouraging consumer response
Hotels & Tourism
33
Hotels & Tourism
ITC Hotels
No. 2 in Size
34
No. 1 in Profitability Margin
Hotels & Tourism industry
Foreign arrivals into India: ~6.6 million Vs. ~57.7 million in China
The two nations were on par 2 decades ago
Today, Beijing alone has as many hotel rooms as the whole of India
Indias luxury rooms availability lower than even smaller East Asian countries
Huge potential driven by Indias diversity and economic growth
35
Source: Compendium of Tourism statistics, WTO
0
10000
20000
30000
40000
50000
60000
70000
80000
Hong Kong Bangkok Singapore Malaysia India
Indian Hotel Industry
Current supply ~183,000 rooms of which 5 Star category represents
nearly 28% of total inventory
India needs an additional 50,000 rooms in the next 3/5 years to
service projected tourist arrivals
36
Present high levels of room inventory in key Indian cities leading to a
relatively weak pricing scenario to persist over the short term
As infrastructure for trade & commerce improves - potential for
leisure tourism to grow
Over 95 properties across 66 locations
4 Brands ITC Hotels, WelcomHotel, Fortune & WelcomHeritage
16 Five-Star Deluxe/ Five-Star Properties with over 4200 rooms
41 Fortune Hotels with over 3300 rooms
40 WelcomHeritage Properties with nearly 1000 rooms
ITC Hotels
37
Exclusive tie-up with Starwoods Luxury Collection for 10 hotels.
ITC Hotels rated as greenest luxury hotel chain in the world
ITC Grand Chola - First 5 Star 'Green Rating for Integrated Habitat Assessment'
(GRIHA) rated luxury hotel by the Ministry of New and Renewable Energy
Projects underway at Bengaluru, Kolkata, Classic Golf Resort (near Gurgaon)
and Hyderabad.
ITC Hotels: Worlds Greenest Luxury Hotel Chain
All ITC Luxury Hotels LEED Platinum certified
Responsible Luxury ethos weaved into the Brand Identity
Paperboards, Paper
&
39
&
Packaging
Paperboards & Packaging Business
No. 1 in Size
No. 1 in Profitability
No. 1 in Environmental Performance
40
Indian Paperboard market
Annual paperboard demand appx. 2.9 million tonnes
Low per capita usage of paper at around 9 kgs p.a. (world average
over 55 kgs p.a.)
41
Indian paperboard market growing at 7.5% p.a.
Value-added Coated board - the fastest growing segment (12% p.a.)
in India driven by the growing sophistication of the consumer
Market leader in growth segment value-added coated boards
World-class contemporary technology
Ozone bleached Pulp Mill fully operational one of its kind in Asia meeting world-class
environmental standards
Fully integrated with in-house pulping capacity at ~3 lakh MT
Internationally competitive quality and cost
Social farm forestry in mill command area to improve access to cost effective fibre &
ITCs Paperboards, Paper & Packaging businesses
42
Social farm forestry in mill command area to improve access to cost effective fibre &
to attain self-sufficiency
Biotech research based high yielding clones effectiveness tested in approx. 165000
hectares
Newly commissioned 1 lakh MT per annum Paperboard machine running well
ITCs packaging SBU - Indias largest converter of Paperboard into high quality printed
packaging
Provides superior packaging solutions to the cigarettes and new FMCG businesses
Leading supplier to Indian FMCG industry
Fully integrated packaging unit at Haridwar operationalised in Mar-13
Agri Businesses
- Leaf Tobacco
- Agri Commodities
43
- Agri Commodities
Agri Business
No. 1 in Leaf Tobacco
44
No. 1 in Leaf Tobacco
No. 2 in Agri commodities
Pioneer in rural transformation
Indian Leaf Tobacco industry
India the second largest producer of tobacco
However, Indias share is only at 8% of world tobacco trade
Upgradation of tobacco consumption from other formats to cigarettes will
enable:
growing domestic base & larger opportunities for value-added exports
45
ITC Indias largest buyer, processor, consumer & exporter of cigarette
tobaccos
5
th
largest leaf tobacco exporter in the world
Pioneering cultivation of flavourful Flue-cured, superior Burley and
Oriental tobaccos in India
Robust growth in exports in recent years with improvement in realizations
ITCs Agri Commodity Business
Distinctive sourcing capability for ITCs Foods businesses
Farmlinkages in 17 States covering Wheat, Soya, Potato, Coffee etc.
Unique Customer Relationship Management programme for commodity customers
in both domestic and international markets
Leveraging Information Technology for the transformational e-Choupal initiative
Rural Indias largest Internet-based intervention
Over 40000 villages linked through around 6100 e-Choupals servicing over 4 million
46
Over 40000 villages linked through around 6100 e-Choupals servicing over 4 million
farmers
e-choupal: Strategic Thrust
Procurement: cost & quality optimisation
strategic sourcing support to the Foods business (support creation of verticals in wheat,
potato etc.)
cost-effective sourcing for exports/domestic external business
Rural retail
24 Choupal Saagars operational
ITC: An Exemplar In Triple Bottom Line Performance
ECONOMIC
47
ECONOMIC
SOCIAL
ENVIRONMENT
ECONOMIC PERFORMANCE
48
ECONOMIC PERFORMANCE
8.4%
13.6%
16.5%
14.2%
19.9%
5 . 0 %
1 0 . 0 %
1 5 . 0 %
2 0 . 0 %
2 5 . 0 %
20000
25000
30000
35000
40000
45000
Gross Revenue
GOLY
5.6%
24.7%
20.8%
22.4%
20.1%
5 . 0 %
1 0 . 0 %
1 5 . 0 %
2 0 . 0 %
2 5 . 0 %
3 0 . 0 %
4000
6000
8000
10000
12000
0
9
1
0
1
1
1
2
1
3
PBT GOLY
Performance Trends
CAGR
5 Yrs : 14.5%
3 Yrs : 16.9%
CAGR
5 Yrs : 18.5%
3 Yrs : 21.1%
08-09 09-10 10-11 11-12 12-13
0
8
-
0
9
0
9
-
1
0
1
0
-
1
1
1
1
-
1
2
1
2
-
1
3
4.6%
24.4%
22.8%
23.6%
20.4%
0 . 0 %
5 . 0 %
1 0 . 0 %
1 5 . 0 %
2 0 . 0 %
2 5 . 0 %
3 0 . 0 %
2500
5000
7500
0
8
-
0
9
0
9
-
1
0
1
0
-
1
1
1
1
-
1
2
1
2
-
1
3
PAT GOLY
32.8%
40.6%
43.5%
45.4%
45.7%
30.0%
35.0%
40.0%
45.0%
50.0%
0
8
-
0
9
0
9
-
1
0
1
0
-
1
1
1
1
-
1
2
1
2
-
1
3
ROCE
CAGR
5 Yrs : 18.9%
3 Yrs : 22.2%
ITCs Economic Contribution to the Nation
10 year Value addition ~ Rs. 1.6 lakh crore (US$ 35 billion)
~75% of value addition accrued to the Exchequer
Among the top tax payers in the nation (Private sector)
Excise payments represent ~ 7% of Indias total Excise collection
50
Foreign exchange earnings in the last 10 years: USD 5 bln
Of which agri exports constituted ~60%
ITC - Key Financials Q3 2013/14
` crs
Q3 13/14 Q3 12/13 Goly %
Gross Revenue 12223 10825 12.9
Net Revenue 8623 7627 13.1
51
Net Revenue 8623 7627 13.1
PBDIT 3675 3188 15.3
PBIT 3449 2982 15.7
PBT 3440 2957 16.3
PAT 2385 2052 16.3
Q3 2013/14: Segment Revenues
` ` ` ` crs
Q2
2013-14 2013-14 2012-13
%
Segment Revenue (Net)
3724 a) FMCG - Cigarettes 4116 3657 12.5
1962 - Others 2078 1783 16.6
5686 Total FMCG 6194 5440 13.9
Q3
GOLY(%)
52
5686 Total FMCG 6194 5440 13.9
247 b) Hotels 315 309 1.9
1772 c) Agri Business 1786 1631 9.5
1179 d) Paperboards, Paper & Packaging 1257 1062 18.5
8884 Total 9553 8442 13.2
1108 Less : Inter segment revenue 930 815 14.1
7776 Net sales / income from operations 8623 7627 13.1
Q3 2013/14: Segment Results
` ` ` ` crs
Q2
2013-14 2013-14 2012-13
2570 a) FMCG - Cigarettes 2653 2234 18.8
(13) - Others 10 (24)
2557 Total FMCG 2663 2210 20.5
9 b) Hotels 62 55 12.1
Q3
GOLY(%)
53
9 b) Hotels 62 55 12.1
285 c) Agri Business 205 173 19.0
221 d) Paperboards, Paper & Packaging 232 229 1.4
3071 Total 3162 2666 18.6
(33) Less: i) Finance Costs 9 25 (63.7)
(130) ii) Other Unallocable Exp. / (Inc.) - Net (287) (316) (9.1)
3234 Profit Before Tax 3440 2957 16.3
YTD Dec13: Segment Revenues
` ` ` ` crs
2013-14 2012-13
%
Segment Revenue (Net)
a) FMCG - Cigarettes 11377 10347 10.0
- Others 5785 4947 16.9
YTD Dec 13
GOLY(%)
54
- Others 5785 4947 16.9
Total FMCG 17162 15293 12.2
b) Hotels 812 759 7.1
c) Agri Business 5748 5346 7.5
d) Paperboards, Paper & Packaging 3599 3179 13.2
Total 27321 24578 11.2
Less : Inter segment revenue 3584 3152 13.7
Net sales / income from operations 23737 21425 10.8
YTD Dec13: Segment Results
` ` ` ` crs
2013-14 2012-13
Segment Results
a) FMCG - Cigarettes 7306 6214 17.6
- Liab. no longer reqd. written back 158 0
FMCG - Cigarettes 7464 6214 20.1
- Others (21) (93) 77.2
Total FMCG 7443 6120 21.6
b) Hotels 80 97 (17.7)
YTD Dec 13
GOLY(%)
55
b) Hotels 80 97 (17.7)
c) Agri Business 689 604 14.2
d) Paperboards, Paper & Packaging 704 776 (9.2)
Total 8916 7597 17.4
Less: i) Finance Costs 28 62 (54.7)
Liab. no longer reqd. written back (35) 0
Finance Costs (7) 62 NA
ii) Other Unallocable Exp. / (Inc.) - Net (514) (420) 22.3
Profit Before Tax 9436 7955 18.6
YTD Dec13: Segment Capital Employed
` ` ` ` crs
2013-14 2012-13
Capital Employed
a) FMCG - Cigarettes 5218 4525 15.3
- Others 3167 2358 34.3
Total FMCG 8386 6883 21.8
YTD Dec 13
GOLY(%)
56
Total FMCG 8386 6883 21.8
b) Hotels 3576 3416 4.7
c) Agri Business 1793 1476 21.5
d) Paperboards, Paper & Packaging 5184 4719 9.9
Total Segment Capital Employed 18939 16494 14.8
ITC - Key Financials 2012/13
` ` ` ` crs
FY 12/13
Actuals
FY 11/12
Actuals
Goly %
Gross Revenue
41810 34872 19.9
Net Revenue
29606 24798 19.4
57
Net Revenue
PBDIT
11566 9674 19.6
PBIT
10771 8975 20.0
PBT
10684 8898 20.1
PAT
7418 6162 20.4
2012/13: Segment Revenues
` ` ` ` crores
FY 13 FY 12 Goly%
Segment Revenue (Net)
a) FMCG - Cigarettes 13970 12324 13.4
- Others 6983 5526 26.4
Total FMCG 20953 17850 17.4
b) Hotels 1074 1006 6.8
58
c) Agri Business 7201 5695 26.4
d) Paperboards, Paper & Packaging 4237 3923 8.0
Total 33464 28475 17.5
Less : Inter segment revenue 3859 3676 5.0
Net sales / income from operations 29606 24798 19.4
2012/13: Segment Results
` ` ` ` crores
FY 13 FY 12 Goly%
Segment Results
a) FMCG - Cigarettes 8326 6908 20.5
- Others (81) (195) 58.4
Total FMCG 8245 6712 22.8
b) Hotels 138 279 (50.7)
59
c) Agri Business 731 643 13.7
d) Paperboards, Paper & Packaging 964 937 2.9
Total 10078 8571 17.6
Less: i) Interest (Incl other Finance Cost) 86 78 11.0
ii) Other net un-allocable expenditure/ income
(693) (404) 71.6
Profit Before Tax 10684 8898 20.1
2012/13: Segment Capital Employed
` ` ` ` crores
FY 13 FY 12 Goly%
Capital Employed
a) FMCG - Cigarettes 4953 3599 37.6
- Others 2532 1989 27.3
Total FMCG 7485 5588 33.9
60
Total FMCG 7485 5588 33.9
b) Hotels 3460 3238 6.9
c) Agri Business 1257 1702 (26.2)
d) Paperboards, Paper & Packaging 4958 4354 13.9
Total Segment Capital Employed 17160 14881 15.3
SOCIAL PERFORMANCE
61
SOCIAL PERFORMANCE
Social Impact
Direct employment ITC Group : 30,000
Indirect employment across the value chain : 5 million
e-choupal: worlds largest rural digital infrastructure serving over 4
million farmers
Social and Farm forestry initiative has greened nearly 165,000
62
Social and Farm forestry initiative has greened nearly 165,000
hectares & provided approx. 64 million person-days of employment
among tribals & marginal farmers
Significant thrust on social sector investments
Natural resource management
Sustainable livelihoods
Community development programmes in the economic vicinity of
operating locations
ENVIRONMENTAL PERFORMANCE
63
ENVIRONMENTAL PERFORMANCE
Environmental Impact
Carbon positive enterprise 8
th
year in a row
Sequestering/storing more than the amount of CO
2
that the company emits
Water positive - 11
th
year in a row
Creating over twice rainwater harvesting potential than ITCs net consumption
Solid waste recycling positive 6
th
year in a row
64
Solid waste recycling positive 6
th
year in a row
Over 40%of total energy consumed is fromrenewable sources
Only Company in the world to achieve all 3 key indices of
environmental sustainability
Forward-looking Statements
Statements in this presentation describing the Companys objectives, future prospects,
estimates, expectations etc. may be forward looking statements within the meaning
of applicable securities laws and regulations. Investors are cautioned that forward
looking statements are based on certain assumptions of future events over which the
Company exercises no control. Therefore there can be no guarantee as to their
accuracy. These statements involve a number of risks, uncertainties and other factors
that could cause actual results to differ materially from those that may be projected
65
that could cause actual results to differ materially from those that may be projected
or implied by these forward looking statements. Such risks and uncertainties include,
but are not limited to: growth, competition, acquisitions, domestic and international
economic conditions affecting demand, supply and price conditions in the various
businesses in the Companys portfolio, changes in Government regulations, tax
regimes and other statutes, and the ability to attract and retain high quality human
resource.