ITC Limited, Lucknow

Summer Training Project Report Submitted towards Partial Fulfillment of the Degree of requirements for the award of degree of

“Master of Business Administration” Of
GAUTAM BUDDHA TECHNICAL UNIVERSITY, LUCKNOW

Submitted by :AMRITA SINGH (Roll No.0940870005) Under Guidence Of :Mr.Satyendra Singh Ms Arti Kkatnani

1

Chandra Mauli Institute Of Management Sciences & Technology GORAKHPUR (U.P)(CODE – 408)

DCR T N E E A IO

I, A r aS g mit in h

, ab n fid s d n o th o a e tu e t f e

C A D AM U I IN T U EO M N G M N HN R A L S IT T F A A E E T S IE C S& C NE T C N L G .G R K P R E H OO Y O A H U th w r tittle e ok d ,h r b , d c r th t e e y e la e a

develop an understanding of frontline capability

development practices of itc company of India so that the industry best practice can be adopted by ITC presented genuine to the best of my knowledge.

2

Amrita Singh

AK O LD E E T C N WE G M N
From this acknowledgement, I want to say thanks to persons who helped me directly or indirectly in shaping the present study. I find myself unable to recompensate without the help provided by these elite personalities, through my pen picture. May God help them in all times of life! I wish to express at outset my deep sense of gratitude to Mr. V Venugopal, Branch Manager, ITC Limited, Lucknow for providing me opportunity to work upon the challenging and relevant Project. I would also like to thank Mr. Saurabh Jain, Asst. Manager, GR1, ITC Limited, Lucknow who has showered the best guidance upon me.

3

The successful completion of this project entitled “To develop an understanding of frontline (salesman) capability development practices of ITCcompany of India, so that the industry best practices can be adopted by ITC” was possible because of help and cooperation from Branch Office, ITD Marketing, ITC LTD, Lucknow. I would like to extend my sincere thanks to Mr. Satyendra Singh (Area Executive, ITC Lucknow) for his kind cooperation and providing me with required data and information and also offered his precious counsel. With profound pleasure and privilege, I express my deep gratitude to all those respondents whom I visited to carry out this research in order to collect information and who patiently delivered the necessary information. Gratitude will always remain to my parents, friends, and Prof. R S Singh, Director, Chandramauli Institute of Management, Science and Technology, Gorakhpur, and other faculties without their
4

blessings and guidance this project would not have been a success. Finally, I would like to thank my family members for their understanding and help while I was working on this project.

(Amrita Singh)

P EAE RF C

5

The Consumer is king; finally eighteen years after the liberalization of India's economy began the marketplace has, suddenly, become frighteningly competitive. Not only have new players including a host of powerful translation, stormed into the country, there are more brands available than ever before in every segment of every market. Befittingly, for the time in above 50 years since Independence, delivering the final verdict will be the customer who is already finicky about what will buy, in future, only that which meets her every desire. This demands more intimate understanding of the consumer by the smart companies'. Retailers are direct interface to Consumers for almost all the companies. They are not only pivotal for reaching various products to the End Consumers, but also plays an important role in purchase decision and help us understand the needs of consumer. Our Frontline Force is in direct contact with Retailers and sometimes consumers as well. So he

6

must be well equipped to win the confidence of retailer and to build lasting relationship with him as well. Being well equipped helps our Frontline Sales force to Make Available our products in desired form and freshness at right outlets, i.e. Selling In. Also he should be aware of Selling Out techniques. FMCG Companies conduct Training Program and Refresher Modules for Frontline Sales Force so as to enable them achieve competitive Edge in Market. My Project is based on Capability Development Programs for Frontline Sales Force, adapted by Various FMCG companies’ (vis-à-vis ITC Limited), different kinds of training programs conducted for Frontline, Mechanisms of such programs, and Systems and processes w.r.t. capability development.

7

Contents
Acknowledgement Preface

Chapter-I
INTRODUCTION OF TOPIC PROJECT OBJECTIVE RESEARCH METHODOLOGY

8

Chapter-II
COMPANY PROFILE

Chapter-III
DATA ANALYSIS

Chapter-IV
FINDINGS

Chapter-V
CONCLUSION

Chapter-VI
SUGGESTION ANNEXURE

9

10

Introduction
Human Resource development has in recent years became the focus of attention of planners policy makers and administrators. Human resource development may be defined as the process of increasing the knowledge,skill and capacities of people. It is important not only for an enterprise but for the nation to develop in human resources. A country can develop only when its human resources are developed through health nutrition education training and research. At the enterprise level employee ,salesmen training and executive development are main area of human resources development.

11

Concept of Training
Training is the process of increasing the knowledge and skills for doing a particular job. It is an organized procedure by which people learn knowledge and skill for a definite purpose. The purpose if training is basically to bridge the gap between the job requirements and present competence of an salesmen need. Training amied at improving the behavior and performance of a person. It is a never ending or a continous process. Training is closely related with education and development but need to be differentiated from these terms.

Benefits of Training to the Salesmen
Training is useful to salesmen in the following ways:-

Self- confidence: Training helps to improve the self-confidence of an salesmen. It enables him to approach and perform his job with enthusiasm.

12

High Earning: Trained salesmen can perform better and there by can earn more.

Safety: Training helps an salesmen to use various safety devices. He can handle machines safely and become less prone to accidents.

Adaptability: Training enables an salesmen to adapt changes in work procedures and methods.

Promotion: Through training salesmen can develop himself and earn quick promotions.

New Skills: Training develops new knowledge and skills among salesmen.The new skills are avalueable assest of an salesmen and remain permanently.

Objectives of Training
The main objectives are as follows:

13

To impart to new entrants the basic knowledge and skills required foe efficient performance of definite task.

To assist the employees to function effectively in their present positions by exposing them to the latest concept, information and techniques and developing the skills they would require in their particular field.

To build up a second line of component officers and prepare them to occupy more responsible positions.

To broaden the minds of senior managers through interchange of experience within and outside so as to correct the narrow outlook

caused due to over specialization.

PROJECT OBJECTIVE
14

PROJECT TITLE:

To develop an understanding of frontline capability development practices of ITC company.
THE STUDY SHALL ENTAIL THE FOLLOWING:

To measure the awareness level of employee about training programme for ITC.

To find the percentage of employee who programme of ITC.

are satisfy with training

To find percentage of employee who really think that training provided to them is enhancing their ability.

To find out problem of employees in availing training. To find satisfaction level of salesmen regarding training.

Research Methodology
15

Data for survey is collected from Primary source

• •

Visiting the organization (observation techniques)

Using structured questionnaire for the existing customer and for general public.

Secondary source

• • •

Company Broachers

Company Website

Internet

Type of Sampling: Stratified random sampling technique is used for collecting the primary data. For the questionnaire: I have used the methodology for the questionnaire close ended. Close ended Method:

16

• •

Dichotomous

Multiple choice

Sample Survey: The respondents should be as representative of the total population as possible in order to produce a miniature cross section. The selected respondents constitute what is technically called a SAMPLE and the selection process is called SAMPLING TECHNIQUE.

RESEARCH INSTRUMENT
Questionnaire: Questionnaire are formal set of questions prepared to collect the required information. This one of the most effective and popular technique used in surveys. However, one has to be careful while drawing up questionnaire. Before deciding on the questions, it is important to understand the exact information needed and who shouldbe interviewed. The contents, phrasing and the sequence of the questionnaire should also be clear and unambiguous. The knowledge level of the target of respondents should be kept in the mind while drawing up the questions.
17

18

ITC Profile
ITC is one of India's foremost private sector companies with a market capitalization of over US $ 30 billion and a turnover of US $ 6 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 ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's

19

50 best performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, 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, Personal Care and Stationery. 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

20

commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." 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. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.

21

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 $ 3.2 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. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution

infrastructure, significantly enhancing the Company's marketing reach. ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT services and solutions to leading global customers. ITC Infotech has carved a niche for itself by addressing customer challenges through innovative IT solutions.

22

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 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalising environment to consistently reward more than 3,91,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: “Enduring Value. For the Nation. For the Shareholder."

History and Evolution

23

ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. As the Company's ownership progressively Indianised, the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC LTD’

24

The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the

25

beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has

26

grown to occupy a position of leadership, with over 100 owned and managed properties spread across India. In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the

27

development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a

28

major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front,

29

24 'Choupal Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh. In 2000, ITC forayed into the Greeting, Gifting and Stationery products business with the launch of Expressions range of greeting cards. A line of premium range of notebooks under brand “Paperkraft” was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009 saw the launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the

30

“Classmate” brand. In 2008, ITC repositioned the business as the Education and Stationery Products Business and launched India's first environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new categories in the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board Markers in 2009. ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening

31

wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and

32

has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment. ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands minto and Candyman confectionery and Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast

33

as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In eight years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing. In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro. ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and

34

Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select

35

markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

The ITC Way
ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITC’s corporate strategies are : Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets.

o

36

o

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology.

o

Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality.

o

Ensure that each of its businesses is world class and internationally competitive.

o

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC’s various businesses.

o

Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.

o

Continuously strengthen and refine Corporate Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.

The ITC Leadership

37

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 wholetime 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

38

the need for supervision and control.

The ITC Vision & Mission Vision
Sustain ITC's position as one of

India's most valuable corporations

through world class performance,

creating growing value for the Indian

economy and the Company’s

stakeholders

Mission
To enhance the wealth generating

capability of the enterprise in a
39

globalising environment,

delivering superior and sustainable

stakeholder value

Core Values
TC's Core Values are aimed at developing a customer-focused, highperformance organisation 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 actualise stakeholder value and interest on a long term sustainable basis.

Customer Focus

40

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.

Excellence

41

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.

ITC BUSINESSES FMCG
It is ITC's strategic intent to secure long-term growth by synergising and blending the diverse

42

pool of competencies residing in its various businesses to exploit emerging opportunities in the FMCG sector. The Company’s institutional strengths – deep understanding of the Indian consumer, strong trademarks, deep and wide distribution network, agri-sourcing skills, packaging know-how and cuisine expertise – continue to be effectively leveraged to rapidly grow the new FMCG businesses. Over the last few years, ITC has rapidly scaled up presence in its newer FMCG businesses comprising Branded Packaged Foods, Lifestyle Retailing, Education and Stationery products, Personal Care products, Safety Matches and Incense Sticks (Agarbatti) with Segment Revenues growing at an impressive compound annual growth rate of 38% during the last 5 years.

43

The Company’s unwavering focus on quality, innovation and differentiation backed by deep consumer insights, world-class R&D and an efficient and responsive supply chain will further strengthen its leadership position in the Indian FMCG industry.

Cigarettes

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

44

product design, innovation, manufacturing technology, quality, marketing and distribution. All initiatives are therefore worked upon with the intent to fortify market standing in the long term. This in turns aids in designing products which are contemporary and relevant to the changing attitudes and evolving socio economic profile of the country. This strategic focus on the consumer has paid ITC handsome dividends. 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

45

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.

Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery, Staples and Snack Foods segments. The packaged foods business is an ideal avenue to leverage ITC's proven strengths in

46

the areas of hospitality and branded cuisine, contemporary packaging and sourcing of agricultural commodities. ITC's world famous restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's Hotels business, demonstrate that ITC has a deep understanding of the Indian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. ITC has stood for quality products for over 100 years to the Indian consumer and several of its brands are today internationally benchmarked for quality. The Foods business carries forward this proud tradition to deliver quality food products to the consumer. All products of ITC's Foods business available in the

47

market today have been crafted based on consumer insights developed through extensive market research. Apart from the current portfolio of products, several new and innovative products are under development in ITC's stateof-the-art Product Development facility located at Bengaluru. Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. ITC has over the last 100 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets, through the e-Choupal initiative, and produce the quality demanded by its customers. This

48

long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business. The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

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:
49

• Lifestyle Retailing

ITC's Lifestyle Retailing Business Division has established a nationwide retailing presence through its Wills Lifestyle chain of exclusive specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories and Essenza Di Wills - an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of premium shampoos and shower gels. Wills Lifestyle has also introduced Wills

50

Signature designer wear, designed by the leading designers of the country. With a distinctive presence across segments at the premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe to the male youth of today. With its brands, ITC is committed to build a dominant presence in the apparel market through a robust portfolio of offerings

Personal Care

In line with ITC's aspiration to be India's premier FMCG company, recognised for its world-class quality and enduring consumer trust, ITC forayed into the Personal Care business in July 2005. In the short period since its entry, ITC has already launched an array of brands, each of which offers a unique and superior value proposition to

51

discerning consumers. Anchored on extensive consumer research and product development, ITC's personal care portfolio brings world-class products with clearly differentiated benefits to quality-seeking consumers. ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging consumer response and is being progressively extended nationally. ITC's state-of-the-art manufacturing facility meets stringent requirements of hygiene and benchmarked manufacturing practices. Contemporary technology and the latest manufacturing processes have combined to produce distinctly superior products which rank high on quality and consumer appeal.

52

Extensive insights gained by ITC through its numerous consumer engagements have provided the platform for its R&D and Product Development teams to develop superior, differentiated products that meet the consumer's stated and innate needs. The product formulations use internationally recognised safe ingredients, subjected to the highest standards of safety and performance

Education and Stationery

ITC made its entry to the education and stationery business with its Paperkraft brand in the premium segment in 2002; and later expanded into the popular segment with its Classmate brand in 2003. By 2007, Classmate became the largest Notebook brand in the country. Together, Classmate and Paperkraft offer a range of products in the Education

53

& Stationery space to the discerning consumer, providing unrivalled value in terms of product & price. Classmate and Paperkraft have become a natural extension of the consumer. Meticulous understanding of consumer needs helped creating a relevant and comprehensive portfolio satisfying the needs of different sets of consumers. ITC is the manufacturer of India's first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard. It blends its knowledge of image processing, printing and conversion garnered from Packaging & Printing Business with its brand building and trade marketing & distribution strengths resident in its FMCG business to offer superior value products to consumers.

54

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

Safety Matches

As part of its strategic initiative to create multiple drivers of growth in the FMCG sector, ITC commenced marketing safety matches sourced from the smallscale sector. The Matches business leverages the core strengths of ITC in marketing and distribution, brand building, supply chain management and paperboard & packaging to offer Indian consumers high quality safety matches. ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep, Aim, Aim

55

Mega and Aim Metro. With differentiated product features and innovative value additions, these brands effectively address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety Matches in India. ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and the USA. The successful acquisition of Wimco Ltd. by Russell Credit Ltd., a wholly owned subsidiary of ITC has consolidated the market standing of the Company's Matches business through synergy benefits derived through combined portfolio of offerings, improved servicing of proximal markets and freight optimization. Through its participation, ITC aims to enhance the competitiveness of the small and medium scale

56

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.

Agarbattis

As part of ITC's business strategy of creating multiple drivers of growth in the FMCG sector, the Company commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in 2003. This Business leverages the core strengths of ITC in nation-wide distribution and marketing, brand building, supply chain management, manufacture of high quality paperboards and the creation of

innovative packaging solutions to offer Indian consumers high quality Agarbattis. With its participation in the

57

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. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra. Durbar Gold is a new offering from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance. The premium range from ITC, Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and are specially hand rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage Industries, Puducherry, has been

58

accredited

with

IFAT

certification,

which

is

an

internationally

recognized benchmark for fair trade practices. Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a choice of multiple fragrances in a single pack. Mangaldeep appeals to a crosssection of consumers with offerings at various price points. These agarbattis are available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a unique concept of packaging which retains the fragrance for a longer period and helps in "Completing the Purity of Prayer". Mangaldeep is fast emerging as the only national brand in an industry dominated by multiple local brands. Mangaldeep Dhoop, made with Natural Ingredients, is available in specific markets and

59

is fast emerging as a key player in North India. Recently, Mangaldeep launched the Premium range of Sarvatra Flora agarbattis. Sarvatra flora agarbattis are a wet type of agarbattis, different from the normal agarbattis. These agarbattis have a natural base, are brownish in colour and offer a wholesome and differentiated fragrance experience to the consumer. Sarvatra Flora Agarbattis are now available in select markets. The Business is currently working on various exciting new offerings to the consumers and is planning to launch them in the near future. In line with ITC's Triple Bottom Line philosophy of every business contributing to the nation's economic, environmental and social capital, Mangaldeep agarbattis are

60

manufactured by small scale and cottage units, providing livelihood opportunities for more than 8500 people. Six out of 11 Mangaldeep Agarbatti manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in Social Habilitation through Agarbattis) is an ITC initiative to improve the quality of raw agarbatti production and provide better value realization for women rollers. Under the project, ITC has extended support to NGOs in states and like Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units, training village women in rolling agarbattis and employing them in these units. In the latest initiative, ITC signed a MoU with Orissa Government run Orissa Rural Development and Marketing Society (ORMAS) for marketing raw incense sticks in the

61

state- a move that is expected to provide employment opportunities to over 3000 rural women.

1.

Hotels

ITC Welcomgroup, India's premier chain of luxury hotels was launched on October 18, 1975, with the opening of its first hotel - Chola Sheraton in Chennai. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80 destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety. A leader in the premium hospitality segment, ITC-Welcomgroup Hotels have had the privilege of hosting world leaders, Heads of State and discerning guests from across the world and within As one of India's most dynamic hospitality chains, ITC-Welcomgroup has set standards for excellence in the hotel industry by pioneering the concept of branded accommodation. The
62

chain has developed three brands of accommodation ITC One', 'Towers' and the 'Executive Club' to differentiate between the needs of various travelers and provide high levels of service. First to introduce branded cuisine, its restaurants Bukhara, Dakshin and DumPukht are renowned for their delicious and authentic Indian cuisines from the different regions of India. ITC-Welcomgroup also showcases international cuisine in its specialty restaurants West View and Pan Asian. ITC-Welcomgroup has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travellers. With its exclusive strategic tie up with Starwood for its top of the line premium brand the 'Luxury Collection', the group is strengthening its international marketing stance. ITC-Welcomgroup was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive partnership. ITC-Welcomgroup's properties are classified under four distinct brands:

ITC Hotels - Luxury Collection In 2007, ITC-Welcomgroup entered a new phase in its collaboration with

63

Starwood Hotels & Resorts. ITC-Welcomgroup now has an exclusive tie-up with Starwood in bringing its premium brand, the 'Luxury Collection', to India. These are super deluxe and premium hotels located at strategic business and leisure locations. The 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 & ITC Royal Gardenia in Bengaluru, ITC Kakatiya in Hyderabad and ITC Mughal in Agra. WelcomHotels offer five-star hospitality for the discerning business and leisure traveller. Currently there are three hotels under this brand namely, WelcomHotel Rama International Aurangabad, WelcomHotel Vadodara and WelcomHotel Grand Bay Vishakhapatnam. Four other ITC-Welcomgroup Sheraton Hotels – Sheraton Rajputana Hotel Jaipur, Sheraton Chola

64

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

65

locations in India.

WelcomHeritage brings together a chain of palaces, forts, havelis and resorts that offer a

unique experience. WelcomHeritage endeavours to preserve ancient royal homes and the

historical Indian grandeur and opulence for the future Indian generations. WelcomHeritage

provides a fine range of hotel services inside these architectural legacies present in Rajasthan,

Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West Bengal, Karnataka,

Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya, Arunachal Pradesh, Uttar Pradesh,

Maharastra, Kerala, Andhra Pradesh and Puducherry. WelcomEnviron
66

is ITC-Welcomgroup's vision for a green world. It's a multi-faceted programme started in order to propagate environmental causes in the cities where ITC-Welcomgroup's hotels are located. With the guiding principle of 'Reduce, Reuse and Recycle', each hotel has its own programme, encompassing local participation, creating awareness among employees and internal conservation.

2. 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

67

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.

3.

Agri- Commodities & Rural Services

ITC's pre-eminent position as one of India's leading corporates in the agricultural sector is based on strong and enduring farmer partnerships that has revolutionized and transformed the rural

68

agricultural sector. A unique rural digital infrastructure network, coupled with deep understanding of agricultural practices and intensive research, has built a competitive and efficient supply chain that creates and delivers immense value across the agricultural value chain. One of the largest exporters of agri products from the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts, Marine Products, Processed Fruits, Coffee & Spices. ITC's Agri Business Division is the country's second largest exporter of agri-products with exports of over Rs. 1000 Crores (Rs. 10 billion). Its domestic sales of agriproducts are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports and domestic trading of:
• Feed

Ingredients - Soyameal

69

• Food

Grains - Rice (Basmati & Non Basmati), Wheat, Pulses Nuts - Sesame Seeds, HPS Groundnuts, Castor oil Products - Shrimps and Prawns Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits,

• Edible

• Marine

• Processed

Organic Fruit Products, Fresh Fruits
• Coffee

& Spices - Coffee, Black Pepper, Chilly, Turmeric,

Ginger, Celery and other Seed Spices Farmer empowerment through e-Choupals 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 webenabling the Indian farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres around
70

providing Internet kiosks in villages. Farmers use this technology infrastructure to access on-line information from ITC's farmer-friendly website www.echoupal.com. Data accessed by the farmers relate to the weather, crop conditions, best practices in farming, ruling international prices and a host of other relevant information. e-Choupal today is the world's largest rural digital infrastructure. The unique e-Choupal model creates a significant two-way multidimensional channel which can efficiently carry products and services into and out of rural India, while recovering the associated costs through agri-sourcing led efficiencies. This initiative now comprises about 6500 installations covering nearly 40,000 villages and serving over 4 million farmers. Currently, the 'e-Choupal' website provides information to farmers across the 10 States of Madhya Pradesh,

71

Haryana, Uttarakhand, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu. Over the next 5 years it is ITC's Vision to create a network of 20,000 eChoupals, thereby extending coverage to 100,000 villages representing one sixth of rural India. Supporting the e-Choupal network are ITC's procurement teams, handling agents and contemporary warehousing facilities across India, enabling its Agri Business to source identitypreserved merchandise even at short notice. ITC's processors are handpicked, reliable high quality outfits who ensure hygienic processing and modern packaging. Strict quality control is exercised at each stage to preserve the natural flavour, taste and aroma of the various agri products. Choupal Saagar

72

Following the success of the e-Choupal, the Company launched Choupal Saagar, a physical infrastructure hub that comprises collection and storage facilities and a unique rural hypermarket that offers multiple services under one roof. This landmark infrastructure, which has set new benchmarks for rural consumers also incorporates farmer facilitation centres with services such as sourcing, training, soil testing, health clinic, cafeteria, banking, investment services, fuel station etc. 24 'Choupal Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing initiative to establish a chain of 100 Choupal Saagars in the near future. Choupal Fresh

73

Choupal Fresh, ITC's fresh food wholesale and retail initiative, leverages its extensive backward linkages with farmers and supply chain efficiencies. It focuses on stocking fresh horticulture produce like fresh fruits and vegetables. Five Choupal Fresh retail stores are currently operational at Hyderabad. The company has also set up a complete cold chain for ensuring the availability of fresh products in the market, besides directly sourcing farm fresh produce from the farmers. Choupal Pradarshan Khet In line with its mission of improving the quality of life in rural India, ITC's Agri Business has launched a flagship extension programme called 'Choupal Pradarshan Khet' (CPK) or demonstration plots to help farmers enhance farm productivity by adopting agricultural best

74

practices. Started in 2005-06, the crop portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram, mustard, sunflower and potato. This initiative, has covered over 70,000 hectares and has a multiplier impact and reaches out to 1.6 million farmers. Processed Fruits In line with its strategy of achieving a higher order of value capture, the business also focuses on the value added segment, steadily enhancing its basket of offerings with several new products. These include frozen foods, IQF (individually quick frozen) fruits, niche products like baby-food quality purees and high brix pulp and organic purees. ITC seeks to focus on this segment and exploit the market opportunity for tropical fruits and fruit products, where India has a natural advantage of growing the complete range, including exotic varieties. In Processed

75

Fruits category, ITC exports from HACCP certified plants to Western Europe, North Africa, West Asia, Japan and North America, a wide range of Processed Fruit products made from Mango (Alphonso, Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC is the leading Indian exporter of Organic Fruit Products certified to European (EC 2092/91) and US (NOP) Standards. Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP certified farmer groups & retailed through prominent supermarkets like Sainsbury's and Albert Heijn in Europe and Daiei in Japan. Marine Products ITC has been a significant exporter of seafood from India since 1971. It exports frozen as well as cooked shrimps and other seafood products to Japan, USA and Europe. Its well-known brands

76

include Gold Ribbon, Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular. A Customer Centric Approach ITC's Agri Business Division continues to use innovation as its core strategy to retain its position as the one-stop shop for sourcing agri-commodities from India. Besides setting benchmarks in quality, reliability and value-added services, ITC is a trendsetter in customer care particularly in commodity trading. Major customers include Cargill, Marubeni, Toepfer, among others, who source agriculture commodities and food products from India. Customers can log onto www.itcabd.com, and readily access information on crop production and forecast, market updates, the latest shipment status and the prevailing foreign exchange rates. Sourcing for ITC

77

ITC's Agri business is progressively aligning its commodity portfolio with the sourcing needs of the Company's Foods business to generate higher order value from its agri procurement infrastructure. The business has commenced procurement of chipstock potatoes, one of the critical raw materials in the manufacture of the Company's 'Bingo!' brand of potato chips. The acquisition of Technico, an Australian company with technology leadership in the production of early generation seed potatoes, helped the business access a ready pipeline of new highyielding varieties of chipstock potato seeds.

4.Information Technology
ITC Infotech, a global IT services company, is today one of India's fastest growing IT services and solutions providers.

78

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 practitioner's expertise in some of these industry verticals, which has in part been bequeathed by parent ITC Limited, which runs market leading businesses in these verticals. While an enterprise range of technology capabilities and

79

world class quality processes form the foundation of ITC Infotech's cuttingedge IT service strength, a sharp domain focus ensures that IT and ITeS delivery always 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 Infotech's leadership capabilities also accrue from business critical engagements with leading organisations across five continents, and a service delivery footprint spanning over 140 countries. ITC Infotech conforms to the highest standards in international process quality, with ISO 27001, ISO 9001, SEI CMM Level 5 and BS 7799 accreditations. These reflect the company's ongoing enterprise-wide focus to ensure that every engagement, program and project delivers

80

international quality consistently.

Group Companies

81

ORGANISATION CHART:
SALES PROMOTION OFFICER SALES TRAINEE AREA EXECUTIVE

AREA MANAGER
82

ASSISTANT MANAGER

BRANCH MANAGER

REGIONAL SALES MANAGER DISTRICT MANAGER

NATIONAL SALES MANAGER GENERAL MANAGER SALES

EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER CHIEF EXECUTIVE OFFICER

BOARD OF DIRECTOR

CHAIRMAN

83

The organization chart of ITC as given above is self explanatory of the functioning of marketing and selling division. The sales person officer is at the bottom of the hierarchy chain and reports to area executive. The area manager is then reported by the area executive who then reports to branch manager. The regional manager heads the branch manager, and then the district manager comes next in the chain followed by the general manager. After the general manager the executive vice president is next higher authority headed by CEO of ITC who directly reports the board of director headed by the chairman.

ITC STRUCTURE

84

As stated earlier, ITC is a well-diversified company with the interests in various businesses. To facilitate efficient running of the business, the company has spit up in to several division, which enjoys great deal of functional autonomy. “Divisional Board” or the “Divisional Executive Committee” depending up on its size heads each division. Although management is vested in the Board of Directors consisting of the both Executives and non-executive directors, most of the authorities and responsibilities have been delegated to committee of directors which comprises of executive directors only. All of the Divisional boards and divisional executive Committees report to Committee of directors. The various divisions with their head quarters are as follows: NAME PLACE 1- Corporation Headquarters (CHQ) Kolkata

85

2- Indian Leaf Tobacco Development Division (ILTD) Guntur 3- India Tobacco Division (ITD) 4- Packaging and Printing Division (PPD) Tiruvottiyur 5-ITC Bhadrachalam Paper Board Ltd. Secundrabad 6- Tribeni Tissue Division Kolkata 7- Hotels Division (HD) Delhi 8- Export Division (ED) Delhi 9- Agri-business Division (ABD) Hyderabad 10- Information Systems Functions (IFS) Kolkata 11- Integrated Research Center (IRC) Bangalore New New Kolkata

86

12-International Travel House (ITH) Kolkata Divisions are further broken up into component unit and branches such as etc., for examplethe hotel division holds around Marketing branches, Cigarettes factories, and Hotel properties 17 hotels under the name of Welcome Group.

PRODUCTION BRANCHES
The production branches better known as cigarette factories are situated in fourfactories, viz. I. Kolkata (Kidderpore) II. Bangalore III. Saharanpur IV. Munger (Bihar) V. Haridwar Following are the subsidiaries fall under ITD: 1. 2. Surya tobacco company All India tobacco company limited

87

3. 4. 5.

Élan enterprises Ltd. Fortune tobacco company ITC filtrona Ltd.

ITC FAMILY
ITC PAPERBOARD LIMITED India’s largest manufacture of paper & paperboard. It is also India’s largest exporter of paper & paperboard industry. ITC CLASSIC FINANCE LIMITED It is Rs. 315Cr Company which is established to offer preferred financial services & products. ITC AGRO-TECH LIMITED Business processes edible oil & also moving towards consolidatig other aspects of edible oil procurement, marketing & trading. ITC FILTRONA LIMITED

88

A joint venture with filtrona international limited. UK is making available in India the latest Cigarette filter technology including technology advance multiple filtersITC ZENECA LIMITED A unique partnership of two major players in agro-business, ITC with ZENECA limited UK. It develops high quality seeds for the Indian agriculture sector. INTERNATIONAL TRAVEL HOUSE LIMITED One of the India’s leading travel & tour agency offering services for business & leisure travelers throughout India, in the business of “rent a car” under the “Eurocar” brand& in the process of setting of golf resets of International standards. SURYA TOBACCO COMPANY LIMITED ITC’s joint venture project in Nepal is the company’s largest private sector corporation with brands leader in every segment. ITC has achieved the “Super star trading house” status. It contributes over 4% of the revenue, provides 9% of the Indian agri-export & about 2% of the company’s total export centers total tax. INDIAN TOBACCO DIVISION It is India’s largest manufacture & exporter of cigarette. It has the market share of 67% of the total cigarette market in India.
89

INDIAN LEAF TOBACCO DEVELOPMENT DIVISION It’s the largest producer & exporter of tobacco in India. ITC HOTELS LIMITED A premier hotel chain catering to the International travelers. Its the market & operates 16 leading hotel properties under the Welcome group banner. It has the collaboration with ITC Sheraton USA for the International marketing of the ITC hotels.

FINANCIAL POSITION
ITC Limited (ITC) offers various business operations. ITC offers its products and services through highly diversified business mix. It includes paperboards and specialty papers, cigarettes, branded apparel, and agri-business. Furthermore, ITC offers hotels, packaged foods and confectionery, greeting cards and other fast moving consumer good (FMCG) products. It operates its business through five segments namely FMCG, hotels, agribusiness, paperboards,
90

paper & packaging, and others. FMCG segment consists of cigarettes and other businesses. The following data provides a comprehensive insight into the company financial structure. The company’s strengths and weaknesses and areas of development or decline if analyzed the financial summary of 2008-2009 gives an insight into the present financial position of company. The resulting figures are benchmark for all leading FMCG companies across the globe. The assets of the company were and the total liabilities were and profits were very satisfactory.

Background:
ITD Vision:
ITC to be the Leading FMCG Company in India In Market Standing In Profitability In Growth In Sustainability
91

In Stakeholder Perception To achieve ITD Vision, company has laid down TM&D Guidelines. It inculcates in itself the Distribution Strategy, so as to reach end consumers.

Distribution Strategy:
Key Parameters of Distribution Strategy are: • Market Coverage Strategy. • Market Representation Strategy. • Outlet Coverage Strategy. • Various Channels Serviced. • Infra Requirement. Benefits of Market Classification 1. Market Classification helps us to decide a service pack for a particular market so as to achieve distribution objectives. 2. Helps to determine Brand Input Plan. 3. Helps to identify the brands needed to focus.

Market Representation Strategy:
Market Representation is based on Market Coverage Strategy keeping into account Cost of

92

servicing. Market Representation is critical for providing sharper focus in managing the diversities & complexities associated with ITC’s widespread forays in the FMCG space. Market Representation is to be achieved through:

Wholesale Dealers (WD / Customer)

O A Firm or a Company which purchases stocks in bulk from ITC for the purpose of actively Distributing and reselling to retailers, wholesalers and consumers for a profit.

WD Branch

O A full-fledged distribution operation of the Wholesale Dealer for actively distributing & reselling stocks to retailers & wholesalers in a town &/or surrounding village markets.

WD Stockist

O A Firm or an Individual located in a market away from the WD market which purchases stocks from a WD for the purpose of actively distributing and reselling all product categories to trade in that market 93

& surrounding rural markets.

Different Channels Serviced:
Out of entire outlet universe, there might be certain set of outlets which show a degree of homogeneity amongst them. These differentiated set of Outlets are called as Channels. Channels are classified basis: 1. Lead Category 2. Location 3. Trade Behavior 4. Consumer Behavior

Various Channels Identified are:

• • • •

Convenience

Grocery

Whole Sale

Modern Format

Channel Classification helps to provide differentiated and customized Service Pack.

Outlet Coverage Strategy:

94

It is not feasible to cover entire universe of outlets directly. So Outlets Coverage Strategy has been laid by our strategy makers so as to maximize distribution on optimal Costs.

Basis of Outlet Coverage
Outlets are covered keeping in view following criteria: • • • Sales Volume Sales Value Outlets Serviced by Competition.

Also, Outlets have further been classified in premium outlets and others so as to provide customized Service Pack.

WD Infrastructure:
WD infrastructures are categorized into:

Backend Infrastructure –

o o o

Office Warehouse Backend Staff - Comp Operator, Cashier, Accountant, Godown Keeper, Godown Helpers.

Frontline Infrastructure – 95

o

Selling and Supervision Infrastructure   WD DS WD Team Leader

o

Delivery Infrastructure   Delivery Vehicle Delivery Boy

Among the entire Infrastructure at WD point, Frontline Staff i.e. WD DS is of most significance.

Importance of WD Frontline Sales Force (WD DS)
We know that The Consumer is king; finally eighteen years after the liberalization of India's economy began, the marketplace has, suddenly, become frighteningly competitive. Not only have new players including a host of powerful translation, stormed into the country, there are more brands available than ever before in every segment of every market. Befittingly, for the time in above 50 years since Independence, delivering the final verdict will be the customer

96

who is already finicky about what will buy, in future, only that which meets her every desire. This demands more intimate understanding of the consumer by the smart companies'. There are various means used by companies to interact with consumers, to create awareness, to generate trials, and to take feedback. Some of them are as below:

• Communication/Activities: o ATL
(Above the line Communication) Branding,

Advertisement. o BTL (Below the line Communication) - Sales Promotion, Merchandising.

• Retailer.
Here, Retailers are more important because they are direct interface to Consumers for almost all the companies. They are not only pivotal for reaching various products to the End Consumers, but also plays an important role in purchase decision and help us understand the needs of consumer and take/give feedback pertaining to products.

97

In this way role of frontline force (WD DS) is very important as he is not only direct interface to Retailers but also plays an important role in BTL activities viz. Sales Promotion (scheme communication), merchandising (Presentation of Product and POSM to Persuade People to Purchase). So, Frontline Force is pivotal for making a product/brand successful in market and hence helps achieve Organization Objectives.
So, it is very important that the Frontline Force (WD Sales Force) is well trained, well equipped, and hence effective enough to achieve Organizational Goals. Various Companies including ITC has been conducting various programs for Induction of new DSs, Training of Selling Skills, and PKWs.

In the last couple of years, ITC has geared up its efforts in the direction of frontline capability development. ITC has demarcated its practices in the following areas:

• • •

Selling Skills Training Product Knowledge Workshops Structured Induction Programs for new entrants

New and innovative frontline sales programs have been launched for the Frontline sales team both for technical and managerial competencies. These have significantly impacted the frontline productivity.

98

My project is based on Comparative analysis of various methodologies applied for development of Frontline Sales Force of lead FMCG Companies and understands:

• •

Capability development measures adopted. Different kinds of training programs conducted for Frontline Organization

• •

Mechanisms of such programs. Systems and processes w.r.t. capability development.

Methodologies applied by ITC for Frontline Capability Development:
ITC has geared up its efforts in the direction of frontline capability development. ITC has demarcated its practices in the following areas:

1. Selling Skills Training 2. Product Knowledge Workshops 3. Structured Induction Programs for new entrants

1. Selling Skills Training:

99

ITC has designed classroom training sessions for Capability Development of Frontline force under the name of:

a. Kamal Ka Funda
Kamal Ka Funda was designed to train and develop Frontline using illustrative examples and real life situation. Kamal Ka Funda was a two day classroom session broadly divided into four sections meant to be covered in 4 sessions, 2 sessions per day. The cascade was planned for all the DSs across channel in the branch. To make the cascade interactive, the no. of DSs per batch was kept low at around 25 – 30. Also, to ensure DS’s involvement and to create excitement, each batch was divided into four teams and there were question and answer sessions at the end of each session and in between the sessions. The four sections of the cascade are detailed below:

I.

Badalti Duniya: This section briefed DSs about changing environment around us and need for adopting new/scientific method to gain competitive edge.

II.

ITC ke Taur Tarike: This section detailed DSs about ITC way of doing things with special emphasis on Availability, Visibility,
100

and Freshness. It also taught about Win- Win Situation and Mutuality. It also demonstrated that ITC not only believes in Selling- In but also in Selling – Out. The section also includes 9 steps of Call.

The nine Steps of Call are as follows:

– – – – – – – – –

Preparation

Approach

Stock Check

Presentation

Closing

Merchandising

Consumer Contact

Administration

Evaluation 101

Out of aforementioned 9 steps of Call, 1st five steps are meant for Selling – In, 6th and 7th step are meant for Selling – Out, whereas last 2 steps take care of both Selling – in and Selling – out.
III.

Selling – In: This section detailed 5 steps of Selling – In, i.e. Preparation, Approach, Stock Check, Presentation, & Closing, and 2 steps that are common to both Selling – In and Selling – out, i.e., Administration and Evaluation. This section also illustrated 5 stage selling format that are detailed as:

– – – – –

Summarise the situation

State the Idea

Explain how it works

Reinforce the key benefits

Closing

IV.

Selling – Out: This section detailed 6th and 7th steps of call i.e., Merchandising and Consumer Contact, as well as Sales

102

Promotion, its importance, its benefit, and how it should be utilized to take maximum competitive advantage.

b. Kaun Karega Kamal –

It was refresher module of Kamal Ka Funda. The program was scheduled for one day. Like Kamal ka Funda, it was also meant for all the Frontline Force across Channel and each batch contained of 25-30 individuals. At the end of module, each guy had to undergo a quiz individually and the topper of each batch was facilitated and rewarded by a Silver Coin.

2.

Product Knowledge Workshops:
ITC has been conducting PKWs (Product Knowledge Workshops) for various product categories for Frontline so as to prepare them to answer the queries from retailer and consumer as well. These workshops detail about Competition, benchmark brand, Product (its USP and superiority over competition), Target Group/Consumer, and Pricing. The workshop not only helps to understand the product, but it also help to identify target outlets by identifying the benchmark brand. The workshop also helps DSs to be better equipped for objection handling, solving queries, and hence gain confidence

103

of retailer, thus getting competitive edge. This module not only helps to achieve DS’s objective but also organizational objective. Various product categories for which PKWs have been organized for DSs are:

Confectionary – The module of Confectionary PKW was named as “10 minute Funda”. It gave broad view of Competition, Product, Target consumer, and pricing for different subcategories of confectionary, viz. HBC, Toffee, Eclairs Re1, Eclairs 50p, and Deposited Candy.

Agarbatti -

ITC launched Agarbatti ( Incense Stick) and Dhoop

under Brand name Mangaldeep. The module on Agarbatti PKW tells types of agarbatti basis manufacturing/ making process; i.e. Masala and Dipped. Agarbatti is also categorized basis Price – point per stick; i.e. Basic and Value- Added. The module gave
broad view of Competition, Product, Target consumer, and pricing.

Soap- PKW for Soaps detailed the type of soap basis per 100 gram of
soap; i.e. Premium (> Rs 25 per 100g), Upper-mid (Rs 15-25 per 100 g), Popular (< Rs 10 per 100 g). The module gave broad view of Competition, Product, Target consumer, and pricing.

Shampoo – It detailed classification of Shampoo basis:

a) Material Used-

104

o Natural/ Herbal o Aftificial/Synthetic
b) Price –point-

o Premium o Upper-Mid o Popular
c) Dandruff/Anti-Dandruff –

o Dandruff o Anti- Dandruff
The module gave broad view of Competition, Product, Target consumer, and pricing.

3. Structured Induction Program for new Entrants:
As discussed earlier, to provide customized service to retailers, ITC has differentiated trade into various Channels. For each channel, ITC has differentiated strategy and different service pack, which includes separate Selling and Supervision Infrastructure. The various channels Identified are:

Convenience 105

Grocery o o o Grocery 1 Grocery 2 Grocery 3

Whole Sale

So, different set of channels, it requires different set of infrastructure which in turn require different set of skills. So, it required differentiated induction program for new entrants. The induction programs for few cannels are briefed below:

Convenience DS:Background:

WDs are operating in multiple channels and need sales force trained to operate in a particular channel.

Due to ramping up of infrastructure and following continuous attrition, there are new DS coming up in the WD system.

Significant increase of new product categories and skus in the last few years.

Quality of DS is critical to achieve business objectives.

106

Large numbers of our customers have requested us to help them in providing structured induction program which will facilitate smooth transition of the new DS in their role.

Recommendation: Make sure the DS carries the DS Kit before leaving for market. Kit should essentially contain the following:

• • • • • • • •

List of Outlet wise Day wise Beats based on target outlet list List of product availability norms Product Freshness norms Bill Book Scheme Chart Price List DS Bag POSM ( Paper Ad board for Cigarettes and other FMCG POSM)

Grocery 1 DS:Background:

WDs are operating in multiple channels and need sales force trained to operate in a particular channel.

107

Due to ramping up of infrastructure and following continuous attrition, there are new DS coming up in the WD system.

Significant increase of new product categories and skus in the last few years.

• •

Quality of DS is critical to achieve business objectives.

Large numbers of our customers have requested us to help them in providing structured induction program which will facilitate smooth transition of the new DS in their role.

Grocery 2 DS:Background:

WDs are operating in multiple channels and need sales force trained to operate in a particular channel.

Due to ramping up of infrastructure and following continuous attrition, there are new DS coming up in the WD system.

Significant increase of new product categories and skus in the last few years.

Quality of DS is critical to achieve business objectives.

108

Large numbers of our customers have requested us to help them in providing structured induction program which will facilitate smooth transition of the new DS in their role.

109

110

Analysis and Interpretation

Q1.

Which type of training did you get? b)off the job training 80% 20%

a) on the job training on the job off the job

20%

on the job off the job

80%

Interpretation-80% salesmen says that they have taken on the job training and 20% says that they have taken off the job training.

111

Q2.

Whether training provided to you helped in learning new selling skills? Yes No Can’t say 92% 5% 3%

3%

5% no yes cant s ay

92%

Interpretation-92% salesmen says that training helped them in learning new skills 5% says salesmen says that training did not help them in learning new skills and 3% salesmen says that they cant say anything.

Q3).

Rank following of the job training according to your preference?
112

Response Job rotation Orientation Apprenticeship Internship 48% 42% 8% 2%

8% 2% 48% 42%

job rotation orientation apprentic eship internship

Interpretation-More than 40% of salesmen ranks lectures at the top then case study than role playing and than conference.

113

Q4. Whether the physical facility for the training was satisfactory? Response Yes No Can’t say 95% 5% 0%

5 %

0% yes no cant say 95%

Interpretation-95% salesmen says that physical facilities for training was satisfactory 55 says that they were not satisfied with physical facility for training. Q5. Whether the trainer has sufficient knowledge ?
114

Response Yes No 80% 20%

20%

yes no

80%

Interpretation-80% salesmen says that trainer has sufficient knowledge of subject matter.20% says that they were not satisfied with the trainer.

Q6. Whether there is need of training in an organization?
115

Response Yes No 95% 5%

5%

yes no

95%

Interpretation-95% says that there is a need of training in the organization.5% says that there is no need for training.

Q7. Whether you are satisfied with training program? Response
116

Yes No

90% 10%

1 0%

yes no

90%

Interpretation-90% salesmen says that they are satisfied with the training program and 10% says that they are not satisfied with the training program.

Q8.

How training is evaluated in an organization? Reponse
117

By performance By result By behavior

65% 20% 15%

15%

20% 65%

by perform ance by res ult by behaviour

Interpretation-65% says that training is evaluated in organization by performance 20% says that through result and 15% says that through behavior.

Q9.

How many training program are attended in a year?

118

Response 10-20 Salesmen says 20-40 Salesmen says More than 40 salesmen says 60% 30% 10%

10% 1s Qtr t 2nd Qtr 3rd Qtr

30%

60%

Interpretation-10 to 20 salesmen says 60% training program are attented in a year,20 to 40 salesmen says that 30% training program are attented in a year and more than 40 salesmen says that 10% training program are attented in a year.

119

Q10. Have any salesman ever come across any problem during the training session Response Yes No 60% 40% conducted in the organization?

40%

yes 60% no

Interpretation-60% says that they did not faced any problem in the training session but 40% says that they faced problem in the training session.

120

Q11. Does retraining is nessecery due to change in job , technology and the environment? Response Yes No 95% 5%

5%

yes no

95%

Interpretation-95% salesmen says that retraining is necessary due to change in job,technology and environment 5% do not agree with the statement.

121

Q12. Whether training was helpful in enhancing the performance ? Response Yes No Can’t say

10%

5%

yes no cant s ay

85%

Interpretation-85% says that training helps in enhancing the performance,10% says that it does not help and 5% cant say.

122

FINDINGS

123

Most of the salesmen say that they have taken 80% on the job training. 20% say that they have taken of the job training.

92% salesmen says that training helped them in learning new skills 5% says salesmen says that training did not help them in learning new skills and 3% salesmen says that they cant say anything.

92% salesmen says that training helped them in learning new skills 5% says salesmen says that training did not help them in learning new skills and 3% salesmen says that they cant say anything.

95% salesmen says that physical facilities for training was satisfactory 55 says that they were not satisfied with physical facility for training.

80% salesmen says that trainer has sufficient knowledge of subject matter.20% says that they were not satisfied with the trainer.

95% says that there is a need of training in the organization.5% says that there is no need for training.

90% salesmen says that they are satisfied with the training program and 10% says that they are not satisfied with the training program.

65% says that training is evaluated in organization by performance 20% says that through result and 15% says that through behavior.

124

10 to 20 salesmen says 60% training program are attented in a year,20 to 40 salesmen says that 30% training program are attented in a year and more than 40 salesmen says that 10% training program are attented in a year.

60% says that they did not faced any problem in the training session but 40% says that they faced problem in the training session.

95% salesmen says that retraining is necessary due to change in job,technology and environment 5% do not agree with the statement.

85% says that training helps in enhancing the performance,10% says that it does not help and 5% cant say.

Conclusion:125

Training and organizational development are two areas of opportunity for HR professionals to make a strong, positive impact on a company. Proper training is one of the major factors in salesmen ability to be successful in the job. With a full understanding of the training need of your organization and the many options available, you can develop training plans to help salesmen reach a higher level of productivity. Analysing your business to make sure its processes enable its function effectively and efficiently organizational development activities will often lead to eye-opening discoveries. By fully understanding organization development and the type of intervention you can examine your company from a new angle and pinpoint areasfor improvement in productivity and efficiency.

126

Recommendation
127

1. ITC should conduct Separate/Special training program for Team Leaders as well. Trained and effective TL will be able to train, guide, develop, and lead the team to achieve desired objectives.
2. Management should establish relationship between performance

level and reward. 3. The employees must be assured that promotion would be made entirely on the basis of his/her performance/productivity and not on other factors.
4. Reward system must be indivisualised because attractiveness for

particular reward may offer from person to person. 5. The management should take serious measures for enhancing the level of autonomy and responsibility in job. 6. Organisation work culture should be honestly implemented in all units/departments to increase the efficiency of the organization. 7. For less productive salesmen, they must be sent for re-training in order to motivate them. 8. Delegation of authority along with responsibilities should be encouraged. 9. An ideal organization must trust the capabilities of its employees and give them chance to prove themselves.
128

10. Unproductive workers as units must be picked up and analysed. And

they must be first asked to bring about an improvement in them, otherwise the management must try to get rid of them. 11. Regular meetings of various departmental heads and the unit

manager should be arranged, in order to discuss the working and problems of the organization as a whole and various departments separately.

129

130

Questionnaire
Q1. Which type of training did you get? a) on the job training b)off the job training

Q2.

Whether training provided to you helped in learning new selling skills? Yes ( ) No( ) Cant say( )

Q3.

Rank following of the job training according to your preference? Job rotation Orientation Apprenticeship Internship

Q4.

Whether the physical facility for the training was satisfactory? Yes( ) No( ) Cant say( )

Q5. Whether the trainer has sufficient knowledge ?
131

Yes( )

No( )

Q6. Whether there is need of training in an organization? Yes( ) No( )

Q7. Whether you are satisfied with training program? Yes( ) No( )

Q8.

How training is evaluated in an organization? By performance By result By behavior

Q10. How many training program are attended in a year? 10-20 Salesmen says 20-40 Salesmen says More than 40 salesmen says

132

Q11. Does retraining is necessary due to change in job , technology and the environment? Yes( ) No( )

Q12. Whether training was helpful in enhancing the performance ? Yes( ) No( )

General Information: Address: …………………………………………………………………………… …………………………………………………………………………… ………………………………………………… Telephone: …………………………………………………………………………… …………….

133

Mobile: …………………………………………………………………………… …………………. E mail: …………………………………………………………………………… ……………………

Occupation:
Business

( )Service

()

()Self employment ( )House wife Student ()

Gender: Marital Status:

( ) Male

( )Female

( )Married

( )Unmarried

Number of members in the family :134

( )1 to 4

( )4 to 6

( )Over 6

Monthly income in rupees:( )Below 8000 ( )20000-30000 ( )8000-20000 ( )Above 30000

BIBILOGRAPHY

• Human Resource Management- Shina • www.itcportal.com

135

136

Sign up to vote on this title
UsefulNot useful

Master Your Semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master Your Semester with a Special Offer from Scribd & The New York Times

Cancel anytime.