Paperboards and Specialty Papers

ITC's Paperboards and Specialty Papers Division is India's largest, technologically advanced and
most eco-friendly, paper and paperboards business. The business caters to a wide spectrum of
packaging, graphic, communication, writing, printing and specialty paper requirements through
its four world-class manufacturing units, 6 sales offices and a network of more than 50 dealers in
India, along with an international trade network of 15 distributors / agents.

Having pioneered many specialty applications like cigarette tissues, opaque papers, food grade
packaging boards and tele-card boards, ITC's Paperboards and Specialty Papers business enjoys
market leadership in the value-added paperboards segment, and also has a significant share of the
Indian fine papers market. It is the largest exporter of coated boards from India.

The largest manufacturer of cigarette tissue in India and continues to be the market leader with a
share of 65% of the domestic market. In the growing décor segment, your Company continues to
record steady growth with a market share of 26%.Total production of Paper and Paperboards
during the year stood at 547,931 tons compared to 469,335 tons during the previous year. Overall
sales, including internal transfers, grew by 19% to 549,181 tons, with the value added aperboards
growing at a faster pace of 29%. Export turnover for the year grew by 38%. Currently, the
business exports to more than 50 countries including UK, UAE, Turkey, Greece, Sri Lanka,
Bangladesh, Iran and Nigeria.

Despite inflation in input costs and pricing pressures in the ‘Writing and Printing’ paper
segment, the business posted a sterling performance driven by higher overall productivity, higher
value capture through increased usage of in-house pulp, superior product mix and several cost
management initiatives.

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

Some of ITC's prominent paperboard brands are:

Folding Box Boards: Cyber XLPac, Cyber Cypak, Cyber Propac, Cyber XL Premium,
Pearl XL Pac
Solid Bleached Sulphate Boards: Safire Graphik, Art Maestro, Carte Persona Modified
Solid Bleached Sulphate Boards: Carte Lumina, Safire XL Pac

Poly coated boards: Indobev, Indobarr

Recycled boards: Ecoviron, Fusion

Fine Papers: ECF AlfaZap, Alfa Plus, Hi Brite, Paperkraft

Each of the units specialises in a range of products. Together, these units produce more than
500000 TPA of paper and paperboards that meet stringent quality requirements across the world.
All four manufacturing units are ISO 9001, ISO 14001 and OHSAS 18001 certified and meet
strict Environment, Health and Safety norms.

The unit in Bhadrachalam is India's largest integrated pulping and paperboard manufacturing
unit. It boasts of equipment supplied by internationally renowned suppliers for pulping
processes, paper machines, web detection & inspection systems, and finishing & packing lines.
Currently the unit produces high-end virgin and recycled boards for packaging and graphic
applications, as well as fine printing papers With the commissioning of a new wood free paper
machine in May 2008, ITC has made its entry into the writing, printing and copier papers
segment. The Bhadrachalam unit manufactures and uses pulp made from light ECF technology
using Ozone. The use of ECF technology significantly reduces the load of toxins in the effluent
discharged, and helps customers get a brighter, stronger product that is also environmentally
responsible.

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

The Tribeni unit specializes in fine papers and tissues and the product range from this unit
comprises opaque papers for fine printing like the Bible, dictionaries, cigarette tissues, medical
grade papers, anti-rust papers, electrical insulation papers, decor surface, printing and barrier
papers. The production lines for cigarette component papers and communication papers have
been upgraded in 2008 to ensure that all products continue to meet exacting international
benchmarks.

The Bollaram unit manufactures specialty boards such as cast coated papers and boards, poly
extrusion coated barrier boards and C2S art boards and brief cards. This unit is BRC certified for
food grade boards. ITC has also commissioned a second poly-extrusion in February 2008 to meet
the growing requirements of barrier boards.

Customers are at the core of the business. This is reflected in the diverse range of products,
grades and value added services. There is a strong focus on partnering customers to co-create and
deliver superior solutions, enhancing their competitive advantage.
The Business' quality philosophy is reflected at every stage - from the selection of clones used
for growing pulpwood to world-class manufacturing facilities to the finishing and packing lines.
It embraces the relevant skills and competencies of employees, managers and specialists as well.

A dedicated network of regional sales offices, an extensive dealer and agent network in India and
across the globe enables ITC's Paperboards and Specialty Papers business to reach out to
customers in more than a 100 different locations. With the division-wide implementation of
Enterprise Resource Planning (ERP) in 2009, the business will also offer customers an enriched
experience through enhanced connectivity and web-access to many of the services that are
currently handled offline.

ITC's commitment beyond the market finds a strong expression in the Social and Farm forestry
programmes spearheaded by the business. These programmes help create unitions of man hours
of employment for the rural poor, besides being a sustainable source of high-quality raw material
for the business. ITC's Research and Development efforts in creating disease resistant, high
yielding clones help farmers realize greater yields in a shorter time - from land that may be
otherwise unproductive. More than 1,00,000 hectares of planted area stands testimony to ITC's
commitment to sustainable forestry.

Working towards credible certification of its environmentally responsible processes and

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

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

friendly Elemental Chlorine Free (ECF) technology, and more recently, Ozone bleaching in
India. ITC's focus on being a carbon-positive, water-positive, zero-solid waste disposal
organization leads it to constantly develop ways of reducing, reusing and recycling.

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