You are on page 1of 79

Corporate Information

Corporate Management Committee(CMC) Directors
* Y.C. Deveshwar * S S H Rehman * A Singh * K Vaidyanath

Registered Office
ITC LTD. 37,J.L.NEHRU ROAD, KOLKATA 700071

Audit Committee
*P B Ramanujan *Y P Gupta *B Vaidyanath (Director Responsible The finance function) *S Basu (Head of internal Audit)

Executive Directors
*K S Valdyanathan *A Nayak *R Srinivasan *R G Jacob *B B Chatterjee

Company
ITC Limited Saharanpur-247001 (Uttar Pradesh)

BANKERS
AXIS Bank State Bank Of India Punjab National Bank ICICI Bank

INTRODUCTION
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 19 billion and a turnover of over US $ 5 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, 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 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. 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 Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating. ITC employs over 26,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3,73,000 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."

ITC FAMILY ITC PAPERBOARD LIMITED: India’s largest manufacture of paper & paperboard. ITC AGRO-TECH LIMITED: Business processes edible oil & also moving towards consolidating other aspects of edible oil procurement. It develops high quality seeds for the Indian agriculture sector. marketing & trading. INTERNATIONAL TRAVEL HOUSE LIMITED: One of the India’s leading travel & tour agency offering services for business & leisure travelers throughout India. UK is making available in India the latest Cigarette filter technology including technology advance multiple filters. ITC FILTRONA LIMITED: A joint venture with filtrona international limited. in the business of “rent a car” under the “Eurocar” brand& in the process of setting of golf resets of International standards. It also an India’s largest exporter of paper & paperboard industry. 315Cr Company. ITC CLASSIC FINANCE LIMITED: It is Rs. ITC with ZENECA limited UK. ITC ZENECA LIMITED: A unique partnership of two major players in agro-business. which is established to offer preferred financial services & products. .

Its the market & operates 16 leading hotel properties under the Welcome group banner. It contributes over 4% of the revenue. INDIAN TOBACCO DIVISION: It is India’s largest manufacture & exporter of cigarette.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. INDIAN LEAF TOBACCO DEVELOPMENT DIVISION: It’s the largest producer & exporter of tobacco in India. It has the market share of 67% of the total cigarette market in India. It has the collaboration with ITC Sheraton USA for the International marketing of the ITC hotels. provides 9% of the Indian Agri-export & about 2% of the company’s total export centers total tax. ITC has achieved the “Super star trading house” status. ITC HOTELS LIMITED: ITC hotels limited are a premier hotel chain catering to the International travelers. .

To facilitate efficient running of the business.Corporation Headquarters (CHQ) 2. All of the Divisional boards and divisional executive Committees report to Committee of directors. most of the authorities and responsibilities have been delegated to committee of directors which comprises of executive directors only. The various divisions with their head quarters are as follows: NAME 1.Packaging and Printing Division (PPD) 5-ITC Bhadrachalam Paper Board Ltd.Indian Leaf Tobacco Development Division (ILTD) 3. PLACE Calcutta Guntur Calcutta Tiruvottiyur Secundrabad . which enjoys great deal of functional autonomy. ITC is a well-diversified company with the interests in various businesses. Although management is vested in the Board of Directors consisting of the both Executives and non-executive directors.Indian Tobacco Division (ITD) 4.ITC STRUCTURE As stated earlier. “Divisional Board” or the “Divisional Executive Committee” depending up on its size heads each division. the company has spit up in to several division.

Cigarettes factories.Integrated Research Center (IRC) Calcutta New Delhi Hyderabad Mumbai Calcutta Bangalore Divisions are further broken up into component unit and branches such as etc.Hotels Division (HD) 8.Agri-business Division (ABD) 9.6. .International Business Division (IBD) 10.Information Systems Functions (IFS) 11.. and Hotel properties 17 hotels under the name of Welcome Group.Trebeni Tissue Division 7. for examplethe hotel division holds around Marketing branches.

creating growing value for the Indian economy and the Company’s stakeholders.The ITC Vision Sustain ITC’s position as one of India’s most valuable corporations through world class performance. delivering superior and sustainable value COMPANY OVERVIEW . The ITC Mission To enhance the wealth generating capability of the enterprise in a globalizing environment.

Agri-Exports. The Company now stands rechristened 'ITC Limited'. Nehru Road) Kolkata. create tourism infrastructure and generate large scale direct and indirect employment. which came up on that plot of land two years later. It was to mark the beginning of a long and eventful journey into India's future. 1926. and the name of the Company was changed to I. The Company celebrated its 16th birthday on August 24. 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 full stops in the Company's name were removed effective September 18. Its beginnings were humble. Limited in 1974. for the sum of Rs 310. 1910 under the name of 'Imperial Tobacco Company of India Limited'. In 1979. This decision of the Company was historic in more ways than one. A leased office on Radha Bazar Lane.T. Since then ITC's Hotels business has grown to occupy a position of leadership. would go on to become one of Kolkata's most venerated landmarks. Paperboards & Specialty Papers. Lifestyle Retailing and Greeting Gifting & Stationery . the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company. Hotels. 'Virginia House'. The Company's headquarter building. by purchasing the plot of land situated at 37. The Company's ownership progressively indianite. ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. Kolkata. (now renamed J.ITC was incorporated on August 24. 2001.Cigarettes & Tobacco. Foods. with over 70 owned and managed properties spread across India.000. In recognition of the Company's multi-business portfolio encompassing a wide range of businesses . The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. was the centre of the Company's existence. ITC chose the hotels business for its potential to earn high levels of foreign exchange.L.C. Packaging. which today has become the market . Chowringhee. ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited. Information Technology. 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'.

5 million farmers. leveraging its Agri-sourcing competency. ITC set up the Agri Business Division for export of agri-commodities. In November 2002. Maharashtra and Uttar Pradesh. British American Tobacco and various independent shareholders in Nepal. ITC launched a line of high quality greeting cards under the brand name 'Expressions'. TTD was merged with the Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002. In 2003. a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. productivity. Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal). The merged entity was named the Tribeni Tissues Division (TTD). In the same year. In 2004. an economically backward area in the state of Andhra Pradesh. the product range was enlarged with the introduction of Gift wrappers. ITC acquired Tribeni Tissues Limited. In 2000. ITC's first rural mall. environmental protection and community development.leader in India. In 1990. Also in 1990. ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. It is directly involved in education. a range of notebooks in the school stationery . In August 2002. Ltd (BIPCO). a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft'. ITC set up Surya Tobacco Co. Autograph books and Slam books. Bhadrachalam Paperboards Division. the company rolled out 'Classmate'. ITC also launched 'Expressions Matrubhasha'. On the rural retail front. in Nepal as an Indo-Nepal and British joint venture. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range. christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. To harness strategic and operational synergies. It has also made an immense contribution to the development of Sarapaka. The Division is today one of India's largest exporters. Now it extends to 9 states covering over 3. a range of premium stationery products. this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. In 1985. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. quality and manufacturing processes are comparable to the best in the world. 21 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh. In 2002. 2002 and became a Division of the Company. Since inception. Bhadrachalam Paperboards amalgamated with the Company effective March 13. near Coimbatore. its shares have been held by ITC. ITC's paperboards' technology. Tamil Nadu.

Today ITC InfoTech is one of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing. In 2002. in 2002. Aim. ITC launched a special 'Celebration Series'.segment. Wills Lifestyle became title partner of the country's most premier fashion event Wills Lifestyle India Fashion Week . In just six years.a fashion brand in the popular segment for the young woman In 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Club life evening wear (2003). ITC spun off its information technology business into a wholly owned subsidiary. In 2006. ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad aata (wheat flour). In 2007. taking the event forward to consumers. the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands. . a rapidly growing market share and a solid market standing. ITC InfoTech India Limited. Mangaldeep.that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. John Players. To mark the occasion. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. 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. CPG&R (Consumer Packaged Goods & Retail) and THT (Travel. Aim Mega and Aim Metro. the Company introduced 'Miss Players'. Hospitality and Transportation). Financial Services & Insurance). ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. BFSI (Banking.ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. ITC also initiated a foray into the popular segment with its men's wear brand. ITC's entered the fast growing branded snacks category with Bingo! In 2007. to more aggressively pursue emerging opportunities in this area. 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. providing outsourced IT solutions and services to leading global customers across key focus verticals –Manufacturing. In 2002. ITC now markets popular safety matches brands like iKno. with an enviable distribution reach.

Tobacco Division of ITC Products ITC has brought modern farm practices and continuous improved to Virginia and Burley Tobacco cultivation. and Berkley Filter. Wills remain as the largest free standing consumer . Sambrani and Nagchampa.ITC introduced Essenza Di Wills. the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Capstan standard. October and December 2007 respectively. Gold Flake Premium Filter has since been rolled out of market and Gold Flake Light King size has been introduced ITC’s strong brand portfolio has is demonstrated by the fact that scissors is the brand leader in volume.ITC’s ILTD (Indian Leaf Tobacco development Division) is India’s largest buyer. Inizio. a premium range of Shampoos. Madhur. Bouquet. processor and exporter of leaf tobacco.ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De WIlls & Vivel range of soaps in February 2008. Sandalwood. Shower Gels and Soaps in September. Gold Flake Kings. The company’s green leaf threshing at Anarporti and Chirala are thelargest in Asia. Through its emphasis on quality and services. They are the first tobaccos threshing plants in the world to get ISO 9002 accreditation for matching International norms. ITC owns the brand leadership in every segment The Company has launched several new brands such as Capstan Menthol. Jasmine. is striving to make tobacco the “Golden Crop Of India”. Filter. Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills'. ILTD. an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose.

Bangalore and Munger have the 9002-quality accreditation The Company has signed an agreement with the British American Tobacco Company Limited (BAT) of which it is already an associate. viz. As per this agreement ITC Ltd. ITC’s factories at Calcutta. The production branches better known as cigarette factories are situated in four factories. Calcutta II. Bangalore III Saharanpur IV Munger (Bihar) Following are the subsidiaries fall under ITD: * Surya tobacco company * All India tobacco company limited * Élan enterprises Ltd. I. launched BAT’s global brand such as State Express 555 and Benson and Hedges. Saharanpur. * Fortune tobacco company * ITC filtrona Ltd.product in India and Wills Gold Flake family has grown to be come the largest single trademark in the consumer product. .

) 2.Q. Secundrabad. Ahmadabad 3. Jaipur SOUTH: 1. 5. New Delhi 2. Coimbatore 3. situated at Bangalore. Nagpur EAST: 1. Saharanpur 3.Q) 2. Jammu 4. Ernakulam 4. Bangalore (H. Patna . Bhopal 4. Mumbai (H.Marketing overview: ITC has got 17 “trade marketing branches” in the following regions: NORTH: 1. Vishakapatnam 3. Guwahati 4. Lucknow 5. Calcutta (H. Madras Apart of the above. WEST: 1. a major constituent of ITD is tobacco technology Centre.Q) 2.

(TOBACCO PRODUCTS) There are many ITC Tobacco Products which are as follows: CLASSIC FTK 20 RC: GOLD FLAKE FTK 20RC: GOLD FLAKE FTK 10HL MD: CAPISTAN FT 10HL: NAVY CUT FT 10HL PP: NAVY CUT FT 20HLND: GOLD FLAKE PREMIUM FT 10HL: .

BRISTOL FT 10HL: FLAKR FT 10HL MD: SCISSORS FK 10: .

ITC has over the last 96 years established a very close business relationship with the farming community in India and is currently in the process of enhancing the Indian farmer's ability to link to global markets. The packaged foods business is an ideal avenue to everage ITC's proven strengths in the areas of hospitality and branded cuisine. through the e-chopal initiative. several new and innovative products are under development in ITC's state-of-the-art Product Development facility located at Bangalore. . ITC has stood for quality products for over 96 years to the Indian consumer and several of its brands are today internationally benchmarked for quality. contemporary packaging and sourcing of agricultural commodities. Leadership in the Foods business requires a keen understanding of the supply chain for agricultural produce. This long-standing relationship is being leveraged in sourcing best quality agricultural produce for ITC's Foods business. All products of ITC's Foods business available in the market today have been crafted based on consumer insights developed through extensive market research. nurtured by the Company's Hotels business. ITC's world famous restaurants like the Bukhara and the Dum Pukht. Staples and Snack Foods segments. Apart from the current portfolio of products. demonstrate that ITC has a deep understanding of the ndian palate and the expertise required to translate this knowledge into delightful dining experiences for the consumer. The Foods business carries forward this proud tradition to deliver quality food products to the consumer.Non Tobacco division of ITC products ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the brand. and produce the quality demanded by its customers. A more broad-based entry has been made since June 2002 with brand launches in the Confectionery.

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 Foods business is today represented in 4 categories in the market. The unwavering commitment to internationally benchmarked quality standards enabled ITC to rapidly gain market standing in all its 6 brands: • • • • Kitchens of India Aashirvaad Sunfeast Bingo! .

Riding on the success of its initial offerings. Apart from milk which helps mental growth. Sunfeast’s brand essence. these biscuits also contain the finest quality wheat aiding physical growth. satisfaction and pleasure. contentment. Both cream and milk biscuits have received enthusiastic response from consumers. Sunfeast mascot Sunny reinforces the immediately established itself as a provider of innovative and distinctive products – Sunfeast Marie was launched in an innovative orange flavour and the 'Sunfeast Dream Cream' range includes new flavours as well as flavour enhancers. a dark chocolate and vanilla cream offering for the premium segment in select markets. Marie and Cream Biscuits. The emotional aspects of the brand.(NON TOBACOO PRODUCTS)  Sunfeast In 2003. . "Spread the Smile" connotes happiness. The Company has also introduced 'Sunfeast Dark Fantasy'. ITC also entered the milk biscuit category with Sunfeast Milky Magic biscuits in the general milk and milk cream categories. ITC forayed into the Biscuits market with the Sunfeast range of Glucose. The Sunfeast Dream Cream range is currently available in 8 variants.

'Sunfeast Pasta Treat'. The recently launched Sunfeast Golden Bakery offers the freshly baked taste of cookies in 3 variants .In the last few years the Sunfeast biscuits portfolio has been enhanced to include salted crackers and cookies. sugar sprinkled biscuits. Sunfeast's cookie offering. The pasta segment was further expanded with the launch of 'Sunfeast Benne Vita' in 4 innovative variants. as well as cream biscuits in two variants – Choco and Orange. The flax seed content in these protein and mineral enriched biscuits is a rich vegetarian source of Omega III acids.Choco-nut. Cashew and crunchy Coconut. The brand has also launched Sunfeast Nice. The 'Sunfeast Snacky' salted crackers are available in 2 unique variants viz. which in Italian stands for ‘Good Life’. It is for the first time in India that an icon of the stature of . Butter-nut and Butter scotch. With continued focus on health and nutrition. The Sunfeast Special range currently includes cookies in three variants – Butter. 'Sunfeast Special' biscuits are also available in select markets. This range has been enhanced recently with the launch of Sunfeast Benne Vita Flax Seed biscuits that reflect the brand essence of Benne Vita. Sunfeast extended the biscuits portfolio to the nutritional segment with the launch Sunfeast Sachin's Fit Kit – a range of healthy products cocreated with Sachin Tendulkar. After the tremendous success of the 4 initial flavours the instant Pasta range has been extended with two new exciting flavours – Pizza and Chicken. a whole wheat based instant pasta was introduced as a healthy snacking option for children.. a tasty and delightful offering of crispy. Chilli Flakes and Classic Salted.The Sunfeast product portfolio has been further expanded to include healthy snacking options as well.

It is the shared vision of Sunfeast as well as Sachin Tendulkar that products under the Sachin's Fit Kit range will enable create "Champions of Tomorrow". Bingo’s portfolio includes an array of products in both Potato Chips & Finger Snacks segment. .  Bingo! The launch of Bingo! in March 2007 marked ITC's foray into the fast growing branded snack foods segment.Sachin Tendulkar has been actively involved in the product development process as co-creator of the Sunfeast Sachin's Fit Kit range.Sunfeast Sachin's Vitamin and Protein enriched biscuits and Sunfeast Sachin's Multigrain biscuits. The launch range comprises two offerings .

Masala and Tomato flavours. capturing the international essence of ‘youthful cool’.'mint-o' was acquired by ITC from Candico in March 2002.'mint-o' and 'Candyman'. . Chilli Dhamaka and Achaari Masti. The offerings under the Finger Snacks segment are equally unique presentations with innovative products like Tedhe Medhe. Available in the regular mint flavour with added blue specks to enhance consumer experience. mint-o is also offered in innovative 'Orange mint' and 'Lemon mint' flavours.Tomato Mischief. offering the consumers with choice in terms of both formats and flavors. 'mint-o' is available in 3 sizes – rolls of 20 and 6 and singles. ITC re-launched the compressed mint offering.ITC launched 'mint-o Fresh' in October 2004. Its launch extended the footprint of the 'mint-o' brand in line with the strategy of adding excitement and contributing to the growth of the confectionery category. the pakoda inspired Live Wires and the khakra inspired Mad Angles.The Potato Chips offerings comprise the ever-popular Salted. mint-o Fresh is available in two refreshing mint flavours – mint-o Fresh Eucalyptus and mint-o fresh Cool Green. mint-o Cool Blue – a single mint in a pillow-pack was launched In November 2007. 'mint-o Fresh' is especially targeted at the adult consumer creating a basket of mint-based products across price points.  Confectionary ITC currently has two brands in the confectionery segment . as well as some innovative variants inspired by the snacking habits of different parts of the country like Chatkila Nimbu Achaar and Tandoori Paneer Tikka. which has become an instant hit among consumers is available in 3 flavours . across all major markets in India. with new and improved product and packaging. An ‘active’ mint deposited candy. Mad Angle's.Bingo! is positioned as a youthful and innovative snack.

innate style. The brand was further strengthened with the launch of 'Candyman Natkhat Mango' and 'Candyman Maha Mango'. Inizio. the 'Candyman' portfolio now includes deposited candy products like 'Candyman Butterscotch Licks' and Candyman Éclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell). The Essenza Di Wills range of perfumes reinforces ITC’s tradition of bringing world-class products to Indian consumers to enrich the quality of their lives. 'Orange Josh' and 'Mango Delite').Inizio Femme (for women) and Inizio . the signature range under Essenza Di Wills captures the very essence of attraction between a man and a woman with its two distinct lines . In line with the strategy to provide innovative flavours to the consumers. naughty kids’ who seek a delightful candy experience through a range of candy types and flavours. Candyman Mango Licks was launched in June 2007 and Candyman Natkhat Gowawa in October 2007. The brand personifies exclusivity.Essenza Di Wills embodies a fine balance between the classic and the contemporary.  Soaps and Shampoos ITC launched an exclusive line of prestige fine fragrances under the Essenza Di Wills brand in mid 2005.ITC launched the 'Candyman' range of confectioneries in August 2002. sophistication and magnetism. The Essenza Di Wills line has been developed with the assistance of French perfumery experts to give it the mystique and premium luxury quality that go with the best of international brands. 'Pineapple Punch'. The coffee toffee segment also saw the successful launch of 'Candyman Cofitino' in November 2005. The 'Candyman' range of confectionery is targeted at ‘fun-filled. Led by the 'Candyman Fruitee Fun' range of assorted fruit flavours ('Wild Banana'.

to offer a harmonized grooming experience. USA.Volume Boost (with extracts of .Fiama Di Wills Shampoos developed in collaboration with Cosmetech Labs Inc. the country's most premier fashion event that brings together the leading designers of the country. specially designed for the brand by one of India’s leading designers. The packaging for all Fiama Di Wills products has been developed by a leading European design firm and the fragrances have been developed by an international fragrance house in France. This premium range is a unique blend of nature and science that promises gentle effective care. The bath and body care products share the same olfactory signature of the fine fragrances. Each of these is designed to deliver a specific hair benefit to the consumer :Everyday Mild (with extracts of Thyme & Juniper) is a gentle caring shampoo suitable for daily use. The Essenza Di Wills fashion line. Varun Bahl. received high appreciation at the Spring-Summer show in September 2007. The women's fine fragrance revolves around 'Floral Fruity Musky' notes while the men's fine fragrance is centered on 'Oriental Woody Fruity' notes. In September 2007. It is an outcome of 4 years of extensive research and development by experts at ITC R&D Centre.. Essenza Di Wills has significantly enhanced its brand salience in the lifestyle space by being the associate sponsors of the Wills Lifestyle India Fashion Week. dull hair. offers a range of four variants. conditioner. select John Players stores and select premium outlets. shower gels and soap.Homme (for men). Aqua Balance (with extracts of Magnolia Blossom Watercress) is a gentle moisturizing shampoo ideal for dry. Essenza Di Wills is available at Wills Lifestyle stores. ITC launched Fiama Di Wills. a premium range of personal care products comprising shampoos.

damaged hair. It also gives the additional benefits of UV protection as it contains Sunflower Seed extract. Ministerial Portfolio Statement . silky and strong and is ideal for weak. This gentle conditioner enriched with Avocado Oil and Burdock extract promises to make hair shiny. Each of these shampoos can be complemented with Fiama Di Wills Polishing Drops conditioner. soft and smooth. which is a natural UV absorber.Silky Strong (with oils of Macadamia Nut and Babassu) helps make hair smooth.Rosemary & Sage) is a gentle volumizing shampoo ideal for thin. limp hair.

and take place following the presentation of the BUDGET. they complement agency annual reports. and financial performance. The PDF version includes the following Queensland departments and agencies: • • • Department of Employment and Training Department of Industrial Relations Sport and Recreation Queensland GROWTH AND DEVELOPMENT OF ITC LIMITED IN YEAR 2011 Net Turnover up 26. the public and other interested parties for obtaining information on key strategies and prospective outcomes. of individual Queensland government agencies. Ministerial Portfolio Statements are also used by Members of Parliament. the media. These hearings examine the funding provided in the state budget to each ministerial portfolio.Ministerial Portfolio Statements are the primary source of information for the hearings of the Parliamentary Estimates Committees. which document actual performance (including audited financial statements) for the financial year just completed. Ministerial Portfolio Statements are forward-looking in their focus and provide predominantly budgeted financial and non-financial performance information for a new financial year. In this way.3% . 2010-11 Ministerial Portfolio Statement The 2010-11 Ministerial Portfolio Statement was released on 6 June 2010 and covers the key outputs being delivered by the Queensland Department of Employment and Training in the 2010-11 financial year.

19. Net Turnover at Rs.3% driven by the non-cigarette FMCG businesses. .65 per share). while Post-tax profit at Rs. Earnings Per Share for the year stands at Rs.3% of the Company’s Net Turnover. 3. The Company’s performance for the fourth quarter was equally impressive with Net Turnover recording a growth of 24. 1166. completed yet another year of strong performance with Gross Turnover for the year growing by 20.6% ITC Ltd. 7.3% of Net Turnover Q4 Underlying Post-tax Profits up 18.8%. 3466 crores.49 crores.5% over the previous year to touch Rs.12369 crores grew by 26.10 per Ordinary share of Re. This will entail a total cash outflow of Rs.19505 crores.3927 crores.Non-Cigarette businesses now constitute 52.2. higher agri-business revenues and the continuing strong performance by the Hotels business.940 crores grew by 20.2% to Rs. The Board of Directors recommended a dividend of Rs.2700 crores registered a growth of 20. Pre-tax profit increased by 20.each (Previous year: Rs. 198.6% after adjusting for income tax refunds.4%.21 crores. Pre-tax profit at Rs. comprising proposed dividend of Rs.6% during the year and now accounts for 52.1/.28 crores and income tax on the proposed dividend of Rs. 651 crores represents an underlying growth of 18.1% to Rs. The non-cigarette portfolio grew by 37.1364. Post-tax profit at Rs.

.

.

which was extended to target markets during the year met with very good consumer response. The business also scaled up the branded spices volumes under the ‘Aashirvaad’ brand. ‘Aashirvaad Select’. Initial consumer response has been very encouraging. . The range of offerings now comprises more than 150 distinct food products under 6 brands. In terms of consumer spend ‘Aashirvaad’ and ‘Sunfeast’ have both become five hundred crore rupee brands within a short span of time. Sales in the Biscuit category grew by 55% over the previous year. Product mix continued to improve on the back of enhanced sales of value added products like Creams. initially comprising 16 highly innovative and differentiated flavors. ‘Aashirvaad Atta’ grew from strength to strength with impressive gains across each region. the Company’s premium atta offering. the business expanded its production capacity by adding facilities in two more locations. In the Staples category.Branded Packaged Foods: The Branded Packaged Foods business continued to expand rapidly with sales recording an impressive growth of 51% over the previous year. Cookies etc. The year marked the Company’s foray into the fast growing organized Salty Snacks market with the launch of the ‘Bingo!’ range of potato chips and finger snacks. leveraging the brand’s strong association with superior quality and consistency. The year also saw the launch of 3 exciting variants in the premium creams segment and the ’FIT KIT’ range of products endorsed by Sachin Tendulkar in two unique variants. The ‘Sunfeast’ range stood further expanded with the launch of ‘Sunfeast Special’ biscuits in select markets in the fast growing mid-price creams segment and the extension of mid-price cookies to target markets. is backed by extensive market research leading to crafting of products/variants customized for the Indian palate. The brand now commands a 52% market share amongst national branded players and is the clear market leader in most major markets. On the manufacturing front. The launch.

bath and body care . The export segment also registered strong growth during the year. an exclusive line of prestige fragrance. Australia and Germany. Exports of KOI products were scaled up during the year. the business continued to expand consumer franchise with strong sales growth across its portfolio. the ‘Classic’ range of formal wear. viz. ‘Wills Sport’ relaxed wear and ‘Wills Clublife’ evening wear. the business in collaboration with some of the leading designers of the country successfully introduced the ‘Wills Signature’ range of designer wear in select ‘Wills Lifestyle Stores’. Canada. The ‘Wills Lifestyle’ range was further augmented during the year with the extension of Essenza Di Wills’.In the Confectionery category. Product range in the Pasta segment was also augmented with the launch of ‘Sunfeast Benne Vita’ in four innovative variants. The availability of KOI products stood significantly enhanced in leading US retail chains providing a strong platform for future growth. As part of the ‘Ramp to Racks’ initiative. In the premium segment. UK. ‘Cofitino’ and the new variants launched during the year viz. Product portfolio was further expanded in the Ready-to-Eat segment with the introduction of 12 new products in the domestic market under the ‘Kitchens of India’ (KOI) banner. The brand is now available in USA. Lifestyle Retailing: The market standing of the Company’s Lifestyle Retailing business stood significantly enhanced on the back of an impressive 52% growth during the year under review in both the premium and popular segments. the ‘Candyman’ and ‘Mint-o’ brands registered strong growth with sales growing by nearly 51% over the pervious year driven by ‘Eclairs’. The brand’s association with high fashion and premium imagery stood reinforced with the resounding success of the ‘Wills Lifestyle India Fashion Week’ (WIFW) the countries most prestigious lifestyle event. These product offerings have met with excellent response from discerning consumers. Switzerland. The business added incremental capacity during the year to meet the enhanced business volumes. ‘Natkhat Mango’ and ‘Maha Mango’.

‘Wills Lifestyle’ was named a ‘Super brand’ by the Super brand Council of India and honored with the ‘Retailer of the Year’ award at the Idea Zee Fashion Awards. ‘John Players’ delivered a strong performance leveraging its youthful and fashionable product range and a significantly enhanced presence across target outlets. The ‘Wills Lifestyle’ range is currently available in over 200 locations through ‘exclusive brand outlets’ (EBOs) and ‘shop-in shops’. the business established an exclusive manufacturing arrangement with a state-of-the-art unit which. coupled with an expanded product portfolio. enabled a threefold increase in export turnover. Greeting.products. In a clear recognition of its enhanced market standing. The celebrity association with style icon Hrithik Roshan created high buzz for the brand among its youthful target audience. Gifting & Stationery Business: . The brand continued to earn industry recognition winning the ‘The Most Admired Fashion Campaign of the Year’ at the Images Fashion Awards 2007. The business continued to post significant improvements in several operating indices such as average realizations. The number of ‘exclusive brand outlets’ in which the brand is available doubled during the year with a trebling of the associated retail space. to select ‘Wills Lifestyle’ stores. In the popular ‘Youth’ segment. During the year under review. footfalls/conversion and sell through rates. The products have met with very encouraging response from quality conscious consumers.‘John Players’ has now established a strong pan-India presence with availability at over 170 Flagship Stores and 1700 Multi Brand Outlets. mobilizing high degree of trials and garnering enhanced consumer mind share. The business continued to actively pursue opportunities in the Exports arena consolidating the existing customer base and establishing long-term partnerships with high potential customers.

‘Alfa Plus’ is India’s first ‘Elemental Chlorine Free’ (ECF) paper with superior whiteness. Associated events like the ‘Classmate Young Artist Contest 2006’ and panel discussions with eminent educationists were held in selected cities. custom manufactured at the Company’s Bhadrachalam Unit. ‘Classmate’ has become India’s leading and most widely distributed notebook brand in a relatively short span of time.. product quality and enhanced product availability. Safety Matches & Incense Sticks: ITC’s philosophy of creating shareholder value through serving society finds expression in the marketing of Safety matches and Incense sticks sourced from small scale and cottage sector units. the business enlarged the scale and scope of its ‘Classmate Connect’ school contact programmed. a wholly owned subsidiary of the Company. brightness and smoothness characteristics compared to other writing and printing papers in the market. . garnering a share of 16% in the branded segment of the market. In line with its ‘Citizen First’ philosophy the Company contributes Re. ‘Classmate’ offers school and college students a memorable writing experience with the superior ‘Alfa Plus’ paper used in these notebooks. The business gained significantly during the year from synergy benefits accruing from the recent acquisition of Wimco Ltd. During the year.Stationery sales doubled during the year driven by the flagship brand ‘Classmate’.000 students. The Safety Matches business recorded robust growth during the year through continued focus on new product development. making it the largest literary event in the national school calendar. During the year. by Russell Credit Ltd. ‘Paperkraft’ is targeted at discerning executives and college students and is available at all leading modern format stationery stores. 1 towards its rural development initiatives for every notebook sold. the premium stationery brand ‘Paper raft’ unveiled its new designer range. The ‘Classmate Young Author Contest 2006’ covered5000 schools across 34 cities and reached out to 200.

During the year. the Company continues to partner with small and medium enterprises to help them raise their quality and process standards. Karnataka. have resulted in significantly enhanced market standing. Progress was made on the export front with initial shipments to certain African markets. freight optimization. improved servicing of proximal markets.Synergies in the form of a stronger combined brand portfolio. The business also commenced exports of incense sticks sourced from units in the small-scale and cottage sector leveraging the marketing services and large overseas presence of the Exim Bank of India. a pioneering effort in the incense sticks industry. supply chain efficiencies.Market standing of the Company’s Mangaldeep’ brand of incense sticks (agarbattis) stood further strengthened with sales recording robust growth during the year driven by improved distribution reach and the launch of 11 new products (7 at regional level and 4 at national level). The business continues to support the small-scale sector through technical and management inputs to improve their product quality and processes. rationalisation of sales & distribution. Sourcing from Khadi & Village Industries Commission (KVIC) approved units continued during the year. the ‘Mangaldeep’ brand was also exported to 11 countries including USA & South Africa. greater access to better quality critical raw materials etc.In pursuance of its abiding social commitment. The business continued its collaboration with various NGOs in Bihar. aided by the Company’s process and technical inputs. Sixagarbatti manufacturing units have received ISO 9001-2000 certification till date. Pondicherry and Tamil Nadu to provide vocational opportunities to rural youth and economically disadvantaged women in keeping with the Company’s commitment to the ‘Triple Bottom Line’. FMCG-Cigarettes: .

round corner beveled edge packers and automatic filter feed systems. Excise duty rates on cigarettes were increased for the second successive year. The cause for concern. This strategic intervention enabled the launch of several key initiatives across the brand portfolio in terms of pack modernisation. remains the severe taxation and regulatory milieu for cigarettes in India. cigarettes have been brought under the ambit of Value Added Tax by the States at a rate of 12.5% on invoice price. the business continued to induct state-of-the-art and cutting-edge technology in its manufacturing facilities such as high speed cigarette making and packing machines. a unique IT-enabled ‘Six Sigma’ based product development process was implemented during the year. Moreover. without a reduction/set off in excise duties collected in lieu of State level sales tax.The Company’s uncompromising commitment to providing superior value to consumers through world-class products helped in sustaining its leadership position in the cigarette industry. while duty rates on cigarettes went up in excess of 6% in the Union Budget 2007. The success of these initiatives is evidenced by the significant enhancement of the Company’s market standing in the Premium categories and higher market shares in all segments in key competitive markets across the country. However. In line with the Company’s mantra of continuous and consistent offering of value added worldclass products to the Indian consumer. Cigarettes continue to be discriminated against cheaper and revenue inefficient tobacco products like bidis and chewing tobaccos. The strategy of value addition yielded an impressive performance during the year with cigarette sales volumes posting a growth of over 7% during the year. however.the same were left unchanged in respect of most of the other tobacco products. limited edition offerings in different flavours and the introduction of ‘Silk Cut’ in the King Size and Regular Filter formats. In keeping with the policy of maintaining global standards across the value chain. with effect from 1st April 2007. .

the business completed several renovation/product upgradation programmes during the year. while segment results (PBIT) at Rs. Key initiatives included renovation of guest rooms and suites in ITC Maurya. 418 crores during 2006/07. The ‘Luxury Collection’ brand philosophy of offering unique experiences indigenous to their destination complements ITC-Welcomgroup’s own ethos of being rooted in the Indian tradition of warm. ‘The Luxury Collection’. to India. The arrangement includes rebranding WelcomHotel New Delhi as a ‘Sheraton’ property. 986 crores driven by better room rates. improved occupancies and food & beverage sales. Gross Operating Profit (PBDIT) grew 28. Globally recognized as a unique brand. 351 crores grew 36% over the previous year. ITC Kakatiya and a new health Spa at ITC Mughal. the ‘Luxury Collection’ consists of 60 premium properties spread across the globe. The business also extended the coverage of the ‘Six Sigma’ Quality initiatives across a larger number of properties. the Company’s hotels business is a clear leader in terms of operating efficiency as measured by the ratio of PBDIT to Net income. These impressive results make the Company’s hotels business the fastest growing among the major hotel chains in the country both in terms of revenues and profits.Hotels: The Company’s hotels business posted yet another impressive performance during the year with segment revenues growing by 26% to touch Rs. As per the agreement.2% over the previous year to touch Rs.In line with the strategy of maintaining the contemporariness of its properties. personalised hospitality. ITC-Welcomgroup will have an exclusive partnership with Starwood to bring in its premium brand.Construction activity in respect of the new super- . Additionally. The year marked a significant development for the Company’s hotels business with ITCWelcomgroup entering a new phase in its collaboration with Starwood Hotels & Resorts through a new franchise agreement. people and processes with a view to further enhancing the service edge. Seven ITC-Welcomgroup hotels will join the list of exclusive properties world-wide that are part of Starwood’s ‘Luxury Collection’.

During the year. industries like foods and pharmaceuticals are progressively switching to ECF pulp-based paperboards.819 MT in 2005-06. The segment generated strong operating cash flow of Rs. the business took rapid strides towards achieving ‘zero solid waste’ status. Specialty Paper and Packaging segment recorded strong growth during the year both in terms of sales and operating profits. The superior quality of the ECF pulp has enabled expansion of the market for value added paperboards.000 TPA paperboard machine and . Specialty Paper & Packaging: The Paperboards.Production during the year touched 390. Segment revenue grew by 11% to touch Rs. is a source of sustainable competitive advantage to the business. Paperboards. Apart from making further progress in reducing water and energy consumption.539 crores. Growth in sales of Specialty Papers was driven mainly by the Decors segment. The Company’s state-of-the-art ECF pulp mill. With increasing awareness of hygiene and safety among Indian consumers. The business continued to focus on the critical areas of pulp and energy. Sales of value added paperboards (VAP) grew by 15% over last year to touch 139155 MT in line with the Company’s strategy of enriching the product mix. The business also made good progress in respect of the 2 major capacity augmentation projects comprising (a) a 90.417 crores. Substantial progress has also been made in developing project plans and obtaining requisite approvals for a new property at Chennai. the only one of its kind in the country.deluxe luxury hotel at Bengaluru is progressing as per plans. which are the two main components of product cost. the business made substantial progress in respect of the pulp capacity expansion project. 2100 crores while segment results improved by 19% to Rs.458 MT as compared to 365.

Rajasthan. Andhra Pradesh and Kerala. Uttar Pradesh. Uttaranchal. The business made significant progress in its capacity expansion projects. Investments in the Chennai unit towards enhanced packaging capabilities and superior technology were also completed. This state-of-the-art facility would enable the business to service the growing needs of the Company’s Foods business and also facilitate cost-effective and efficient servicing of external customers. The Company’s Packaging & Printing business is the leading provider of value added paperboard packaging in the country.5 million farmers in 38. Haryana.(b) a 100.000 TPA paper machine for manufacturing uncoated (c) Paper including branded copier grades. The business supports the competitiveness of the Company’s cigarette and other FMCG businesses through discerningly superior and innovative packaging solutions. The new facility at Haridwar was completed during the year. Agri business : Overall Agribusiness revenues during the year grew by an impressive 38% driven by soya and rice exports and leaf tobacco. The network currently comprises 6400 choupals reaching out to over 3. adding manufacturing capacity both in the paperboard cartons and flexibles segments. These investments would support the growing requirements of the Company’sCigarettes and other FMCG businesses and also provide high quality packaging to external customers.a rare honour and perhaps the first for any private . Karnataka. Maharashtra. It is a matter of pride and deep satisfaction that the pioneering e-choupal initiative found special mention in the Economic Survey 2006/07 for its transformational impact on rural lives .The e-choupal network was further scaled up during the year while simultaneously focusing on enhancing its reach and productivity.500 villages in the states of Madhya Pradesh.

Madhya Pradesh. Maharashtra and Uttar Pradesh. Karnataka.company in the country. Uttar Pradesh. and (c) community development. 18 ‘Choupal Saagars’ are now operational in the 3 states of Madhya Pradesh. On the rural retail front.000 hectares providing over 28 million person days of employment among the disadvantaged. Leaf tobacco exports during the year grew by an impressive 21% by value to touch an all-time high. taking the total area under coverage to nearly 65. The business continued to provide strategic sourcing support to the Company’s cigarette business. This sterling performance was achieved through a combination of focused business development efforts and customized product and service offerings to both existing and new customers. It continued to focus on the three main areas of interventions under ‘Mission Sunehra Kal’: (a) natural resource management.The Company continued to intensify its footprint in the social sector by expanding to newerdistricts during the year. Orissa. the Company made significant progress during the year in its social and environmental initiatives. Contribution to Sustainable Development: In pursuit of its abiding commitment to create stakeholder value through service to society. West Bengal and Bihar. Andhra Pradesh.800 hectares during the year. The Company’s pioneering initiative of wasteland development through its Farm and SocialForestry Programmes was scaled up further with the addition of 23. watershed and agriculture development.On the sourcing front. These ‘Choupal Saagars’. nearly doubling the channel throughput. in synergistic combination with the e-Choupal network. (b) sustainable livelihoods. the business continued to leverage the e-choupal network for procuring high quality agri commodities at competitive prices. Tamil Nadu. The rural distribution initiative made good progress. would serve as the core infrastructure to support ITC’s rural distribution strategy. Rajasthan. The Company currently runs 54 social development projects in 43 districts spread over the states of Kerala. comprising genetic improvement in livestock and women’s economic empowerment. which includes wasteland. This includes . with focus on primary education and health and sanitation.

531 water-harvesting structures provide critical irrigation to about 14.069 hectares in 380 villages reaching out to 10. the programme for genetic improvements of cattle through artificial insemination to produce high-yielding cross-bred progenies has been given special emphasis because it reaches out to the most impoverished and has the potential to pull them out . Sustainable agricultural practices received a major boost with the promotion of more than 4. designed to assist farmers in identified moistures-stressed districts. the Company lays equal emphasis on ensuring efficient usage of water through interventions aimed at improving farm productivity. promoting group irrigation projects and demonstrating the use of sprinkler sets. The sustainable livelihoods initiative of the Company strives to create alternative employment for surplus labour and decrease pressure on arable land by promoting non-farm incomes. The project will undertake soil and moisture conservation work on 5.510 poor households. thanks to the sale of plantations. The collaboration between ITC and the Government of AP for wasteland development under ‘Indira Kranti Patham’ was sustained during the year – 830 hectares of plantations were promoted through this public-private partnership. The year also saw another significant milestone with the signing of an agreement with the Government of Rajasthan for watershed development in the Bhilwara District of Rajasthan under a public-private partnership programme. To date.the Company’s Social Forestry Programme which has so far promoted plantations covering 9. Not only have their earnings per acre improved significantly. The households covered under the Social Forestry Programme continue to reap the benefits derived from plantations.287 hectares. the watershed development programme today covers 26. The soil & moisture conservation programme.700 hectares. witnessed a sharp increase in its coverage during the year. Among many such activities. 1. Their own incomes have been invested wisely into productive assets to ensure a long-term virtuous cycle of development. but also most beneficiaries have ensured that the contribution to the Village Development Fund continues apace. In continuation of its policy of providing an integrated solution for promoting a sustainable watermanagement regime.500 organic fertilisers units through vermicomposting and NADEP technologies during the year. In all.000 hectares in five years.

The Company further improved its ‘water positive’ and ‘carbon positive’ status. Although such resources rest in abundance with the corporate sector. and also made significant improvements towards achieving ‘zero solid waste’ status through recycling of all solid wastes. The most crucial resource required to address the various developmental issues is not so much financial as organizational. with the large challenges of inclusiveness and ecological fragility threatening to undermine the sustainability of economic growth. The Company has followed the highest level ‘A+’ for reporting the ‘Triple Bottom Line’ performance.500 villages. Inhe area of environment. 10. the organizational capability of the corporate sector tends to be deployed almost . health and safety. Nearly 6. with several business units achieving 100% recycling of all solid wastes. details its achievements across them three dimensions of the ‘Triple Bottom Line’.7% in the previous year. 77 cattle development centres already cover more than 1. independently assure by PricewaterhouseCoopers. The initiative for the economic empowerment of women also continued apace: to date. no single organ of society possesses the resources to address these serious issues. Total recycling of waste in the Company’s businesses/units improved to 93% in 2006/07 from 78.000 milch animals during the year.of poverty. providing integrated animal husbandry services to nearly 55. ITC continues to raise the bar for its operating units. unveiled in December 2006. The Company’s third Sustainability Report.000 women have been gainfully employed either through micro-enterprises or as self-employed though income generation loans. in the absence of incentives. is the first Indian and one of the first 10 reports world-wide to be presented in accordance with the latest ‘G3’ revision of Global Reporting Initiative (GRI) guidelines. This report.232 women have been organised under 801 self-help groups (SHG) with total savings of Rs 53 lakhs. Incentivizing Corporate Social Responsibility (CSR): Mobilizing Consumer Support: In an emerging economy like India's.

CSR can serve as an additional differentiator for the Company's products and services. For example. is engaged in taking the lead to involve its consumers as partners in progress by bundling CSR as part of its unique value proposition as well as the value proposition of brands such as ‘Sunfeast’ and ‘Aashirvaad’ which leverage the agricultural value chain and the rural economy for success in the domestic market. As Indian businesses progressively integrate with the global market. ITC Ltd. The Centre will endeavour to transform Indian businesses by providing thought leadership. There is already evidence of such a trend emerging in developed markets. thereby simultaneously serving the cause of shareholders as well as society at large. In line with this thought. Its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products.ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business. In this context. hotels. The Centre seeks to address the institutional void in developing the requisite capability among Indian industry.exclusively towards addressing the needs of shareholders through financial performance. the Company's support for the setting up of the ‘CII-ITC Centre of Excellence for Sustainable Development’ is asterling example of incentivising CSR through recognition of excellence in sustainability practices. packaged foods and . the need for responsible business conduct will become an imperative for global competitiveness.It is hoped that the Company's example will serve to encourage others in the corporate sector to contribute more readily with impactful CSR initiatives. Financial reward arising from the exercise of preference by civil society in favour of responsible corporate can trigger substantial corporate participation in CSR activities. By mobilizing support of consumers. promoting awareness and building capacity amongst Indian enterprises in their quest for sustainable development SWOT ANALYSIS Strengths: ITC leveraged it traditional business to develop new brands for new segments.ITC is a diversified company trading in a number of business sectors including cigarettes. paper Agriculture.

greetings cards.com/agri_exports/e-choupal_new. branded apparel. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world.000 villages.Its Gold Flake tobacoo brand is the largest brand in India and this single brand alone hold 70% of the tobacco market. safety matches. Weakness: The company’s original business was traded in tobacco.To fund its cash guzzling FMCG start-up.ITC stands for Imperial Tobacoo Company of India Limited. It is interesting that a business that is now so involved in brandig continues to use its original Name. despite the negative connection tobacco with poor health and premature death. product development and marketing penetration. incense sticks and stationery.So there is an argument that ITC’s move into FMCG is being subsidied by its tobacoo operations. Mint-o.Cigarettes account for 47% of the company’s turnover. It is also an ambitious project that has a goal of reaching 10 million farmers in 100.e-Choupal is a community of practice that links rural Indian farmers using the Internet. then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such . Bingo! And Sun Feast (and others) can be developed usin strategies of market development. Take a look at eChoupal here http://www. the company is still dependent upon its tobacoo revenues. personal care.itcportal.confectionary. Opportunities: Core brands such as Aashirvaad.htm ITC leverages e-Choupal in a novel way. Information Technology. supporting business solutions. The company researched the tastes of consumers in the North.and that in itself is responsible for 80% of its profits. West and East of India of atta (a popular type of wheat flour).ITC is moving into new and emerging sectors including Information Technology.

as Aashirvaad Select in the Northern market. both domestic and international. Mar '07 Investment Valuation Ratios Face Value Mar '08 Mar '09 Mar '10 Mar '11 10.. Therefore the dynamic of competition will alter in the medium term. Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. The laws of economics dictate that if competitors see that there is a solid profit to be made in an emerging consumer society that ultimately new products and services will be made available.00 1. Western companies will see India as an exciting opportunity for themselves to find new market segments for their own offerings ITC's opportunities are likely to be opportunities for other companies as well.Per capita consumption of personal care products in India is the lowest in the world offering an opportunity for ITC's soaps. Threats: The obvious threat is from competition. shampoos and fragrances under their Wills brand.00 . Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.00 1. Cr ………. This concept is tremendously difficult for competitors to emulate.00 1. Data Analysis and Interpretation KEY FINANCIAL RATIO ……….00 1.Chairman Yogi Deveshwar's strategic vision is to turn his India conglomerate into the country's premier FMCG business. In Rs.

80 0.50 21.55 34.50 28.08 1.65 18.30 3.09 22.69 3.44 .64 17.51 1.26 1.02 5.01 56.40 290.57 27.97 21.01 25.58 0.00 25.59 3.Dividend Per Share Operating Profit Per Share (Rs) Net Operating Profit Per Share (Rs) Free Reserves Per Share (Rs) Bonus in Equity Capital Profitability Ratios Operating Profit Margin(%) Profit Before Interest And Tax Margin(%) Gross Profit Margin(%) Cash Profit Margin(%) Adjusted Cash Margin(%) Net Profit Margin(%) Adjusted Net Profit Margin(%) Return On Capital Employed(%) Return On Net Worth(%) Adjusted Return on Net Worth(%) Return on Assets Excluding Return on Assets Including Revaluations Return on Long Term Funds(%) Liquidity And Solvency Ratios Current Ratio Quick Ratio Debt Equity Ratio Long Term Debt Equity Ratio Debt Coverage Ratios Interest Cover Total Debt to Owners Fund Financial Charges Coverage Ratio Financial Charges Coverage Ratio Post Tax Management Efficiency Ratios Inventory Turnover Ratio Debtors Turnover Ratio Investments Turnover Ratio Fixed Assets Turnover Ratio Total Assets Turnover Ratio Asset Turnover Ratio 31.00 111.43 5.43 0.10 10.01 0.19 22.32 5.01 456.88 86.84 32.36 30.29 34.09 1.56 32.80 50.33 191.45 23.13 35.02 199.19 81.71 17.97 0.18 21.38 29.26 24.42 0.70 34.98 25.56 0.02 0.67 28.00 21.76 1.63 36.42 1.24 26.01 169.89 81.07 6.97 26.36 0.67 0.02 0.64 18.18 34.67 33.65 8.36 1.80 16.51 1.85 23.98 21.33 0.51 20.04 39.01 209.16 1.01 172.28 23.64 32.73 25.87 36.75 3.05 2.01 0.76 37.40 21.74 17.22 21.61 23.44 1.40 31.22 6.75 33.33 2.95 3.99 24.50 16.01 0.27 86.17 1.25 0.70 13.12 32.43 36.03 0.91 20.63 0.79 6.62 87.03 58.85 36.01 112.50 36.61 0.02 268.59 3.01 258.23 29.76 20.80 37.10 37.98 31.99 2.50 11.60 5.86 34.60 25.51 28.01 0.79 17.44 23.73 22.43 2.49 25.52 122.95 1.45 21.26 21.00 87.51 145.31 1.59 1.09 16.27 16.82 18.39 37.09 27.83 25.01 0.18 24.57 0.05 24.85 28.88 1.92 0.55 306.

68 49.07 44.51 213.85 50.05 AdjustedCash Flow Times 0.16 16.80 12.75 54.36 47.95 12.95 Imported Composition of Raw Materials 18.19 49.53 16.06 45.68 Cash Flow Indicator Ratios Dividend Payout Ratio Net Profit 40.12 223.12 43.83 14.45 43.90 0.98 54.78 56.56 220.29 Dividend Payout Ratio Cash Profit 35.25 Earning Retention Ratio 47.78 7.39 18.68 56.53 6.22 0.88 52.94 Cash Earning Retention Ratio 56.68 0.05 47.52 18.54 50.31 48.19 Material Cost Composition 38.07 62.57 53.89 40.05 .06 42.92 6.24 0.54 48.39 185.08 64.Average Raw Material Holding Average Finished Goods Held Number of Days In Working Capital Profit & Loss Account Ratios 212.44 15.84 48.53 44.66 Consumed Selling Distribution Cost Composition 7.12 52.35 6.30 50.00 Expenses as Composition of Total Sales 16.98 6.45 49.76 44.61 43.

3/II. the higher the ratio.734557 The current ratio of 1. Loans and advances 8161.Ratio Analysis of the Company A Year 1 II. The ratio is an indication of a company's ability to meet shortterm debt obligations. .01 (I1.4) 1.73 times says that the company is in relatively good short-term financial standings. the more liquid the company is.4: LIQUIDITY RATIO 2011 Current ratio = Current assets/Current Liabilities Current assets.11 Current liabilities and provisions 4705.3: II.

7569357 The small ‘Quick ratio’.4) Current liabilities and provisions 4705. .3a)/(II.01 .3a (Current assets. 0. i. ITC has strong financial positions in many other aspects.76 times says that the company's financial strength is not so strong.39 ll.72 3561. Loans and advances) Inventories 8161.11 4599.e. In general. a quick ratio of 1or more is accepted by most creditors.2 Quick ratio or acid test ratio: (Current assets-inventories)/ Current Liabilities ll. however.3-II.3: Less:ll.4 (II. quick ratios vary greatly from industry to industry and ITC does not have as such any worries in getting creditors.

4 Current liabilities and provisions 7405.4) .3 Cash ratio or Absolute liquidity ratio= (Cash+Marketable securities)/Current liabilities II.39 0 1032.39 ll.13 times says that the company is not in the position to very quickly liquidate its assets and cover short-term liabilities. (The ratio is of interest to short-term creditors) .01 (II.1394178 The cash ratio of 0.3c)/(II. But there is no such liquidity need for the company and so the small value of the ratio has no such important implications.3c: Add: Cash and bank Balances Marketable securities 1032.

2: I.2)/(I. Thus its earnings are stable.55 13735.0129268 The ratio of 0. which means that the company has not been aggressive in financing its growth with debt.1: Debt – equity ratio: Long term debt/ equity (net worth) Loan Fund Shareholders’ funds 177. .08 (I.B Year Solvency Ratio 2011 1 I. The company has better support from the shareholders.1) 0.01 times.

2: I.2 Debt ratio: debt (long term)/ (debt (long term) + equity) or debt/capital employed I.1: Loan Fund Shareholders’ funds 177.63 (I.2+I. Thus the Company is efficiently utilizing its loan funds.0127618 The ratio of 0.55 13735. .1) 0.08 (I.1) 13912.2)/(I.01 signifies that the company has employed more capitals over its debts.2+I.

It has no tension of paying interests over its loans.3 Interest Coverage ratio =(earnings before interest and tax) / interest P/L:III: profit before taxation exceptional items 3926.454545 The ratio of 7139.7 II.4a-13) 7139. .55 (P.4a -13: Interest accrued but not due on loans 0.III)/(II.4 times is magnificently very high and hence the company has very sound financial position.

68 times signifies that the company is efficient in selling its stock .C YEAR 1 TURNOVER RATIOS 2011 Inventory turnover=Cost of goods sold or net sales/Average (or closing) inventory P/L:IB Net sales 7755.3a: Inventories 4599.3a:) 1.6860635 The ratio of 1.72 (P/L:IB)/(II.42 II.

2 Days of Inventory holding= Number of days in the year (say 360)/ Inventory turnover ratio.6860 (P/L:IB)/(II.3a:) 1.6860635 The ratio of 1.68 times signifies that the company is efficient in selling its stock . Number of days in a year 360 Inventories turnover ratios 1.

.67 11.3b) Sundry debtors 668.3b: (P/L:IB)/(ll.3 Debtors turnover ratio= Credit sales or net sales/Average (or closing) debtor (or accounts receivable (total debtors +bills receivable) P/L:IB: Net sales 7755.6 times signifies that the company is getting good returns and has no visible risk but benefits out of its debtors.42 II.598277 The ratio of 11.

0345 The debt collection period of 32 days is quiet good and the company is efficient in getting back its dues.4 Collection period= Number of days in the year(say 360)/ Debtors turnover Number of days in the year 360 Debtors turnover 11. .6 360)/(DTR) 31.

5 Current assets turnover= Net sales/ Current assets P/L:IB: Net sales 7755.42 8161.95 times signifies that.11 II.950289 Current assets. the company is efficient in making sales revenue.3: (P/L:IB)/ (II. loans and advances The ratio of . .3) . in spite of the current liabilities.

10 2.42 Net Current Assets (P/L:IB)/(NCA) 3456.6 Net current assets turnover = Net sales/ Net current assets P/L:IB: Net sales 7755.24 times signifies that the company is highly efficient in utilizing its net current assets and generating sales revenue .243980 The ratio of 2.

1) .92 times signifies that the company is very efficiently utilizing its fixed assets for generating sales revenue .97 (P/L:IB)/(II. . .42 II.9139108 The ratio of .7 Fixed assets turnover= Net sales/ Net fixed assets P/L:IB: Net sales 7755.1: Net Fixed Assets 8485.

75 Net Current assets Net assets 3456.5247303 .82 (P/L:IB)/(NA) The ratio of 0.8 Net assets turnover= Net sales/ Net assets or capital employed = (Net assets =all assets.42 II.1: Net Fixed Assets 8485.97 II.10 14779. Investments 2837.53 times signifies that the company has still to be more efficient in utilizing its net assets in generating sales revenue .2: .accumulated depreciation) P/L:IB: Net sales 7755.

2241 .42 (P/L:III)/(P/L:IB)×100 (P/L:IB)/(NA) 62.74 P/L:IB: Net Sales 7755. .22% is quiet impressive and the company is making good profits.D Year Profitability Ratios 2011 Margin: (Profit before interest and tax (PBIT)/ Net sales)×100 P/L:III: Profit before taxation and Exceptional items 4825.5247303 The Profit margin of 62.

081409 The net margin of 42.2 Net margin= Profit after tax (PAT) ×100 / Net sales P/L:III: Profit after taxation 3263. .59 P/L:IB: Net Sales 7755.42 (P/L:III)/(P/L:IB)×100 42. and the company is performing well.08% is quiet impressive.

2: Net Fixed Assets Investments 8485.10 Net assets (P/L:III)/(NA)×100 32.74 items II.3 Before tax return on investment:=(PBIT/Net assets) ×100 P/L:III: Profit before taxation and Exceptional 4825. .65087 14779.82 The Return of 32.1: II.75 Net Current assets 3456.97 2837.65% is quiet good and company is performing well.

1: Shareholders funds 13735.4 Return on equity= (PAT/Equity (net worth)) ×100 P/L:III: Profit after taxation 3263.760983 The ratio of 23.08 (P/L:III)/(P/L:IB)×100 23.76% is quiet good and the company is utilizing the shareholders funds in a better way.59 1. .

E Year

Equity-related Ratios 2011

1

Earning per share (EPS)= PAT/Number of ordinary share

P/L:III: P/L:IV-19(iv):

Profit after taxation

3263.59

Weighted average Number of ordinary shares 3757636907 outstanding

(P/L:III)/(P/L:IV)(×10^7: to convert in per rupee)

8.68521914

In comparison to the face value of Re.1/share the EPS of Rs.8.69 is very good.

2

Dividends per share (DPS)= Dividends/ Number of ordinary shares

P/L:IV: P/L:IV-19(iv):

Proposed Dividend

1396.53

Weighted average Number of ordinary shares 3757636907 outstanding

(P/L:III)/(P/L:IV)×10^7(to convert into unit rupees)

3.71651129

Dividend per share (DPS) is a simple and intuitive number. It is the amount of the dividend that shareholders have (or will) receive, over a year, for each share they own. In compared to the face value of the share Re.1.00/share. DPS of Rs.3.71 is quiet good.

3

Pay out ratios=DPS/EPS or Dividends/PAT

DPS EPS

3.71 8.69

DPS)/(EPS)

.4269275

a very low payout ratio indicates that a company is primarily focused on retaining its earnings rather than paying out dividends. The payout ratio also indicates how well earnings support the dividend payments: the lower the ratio, the more secure the dividend because smaller dividends are easier to pay out than larger dividends. So the value of 0.43 times is quiet good.

.4 Dividend Yield: DPS/Market value per share We have to get the Market value per share of the relevant period Market Price Per Share The closing price of the common or preferred stock as reported on the applicable stock exchange consolidated tape as of the date indicated 5 Price/Earning ratio: Market value per share/ EPS We have to get the Market value per share of the relevant period. 6 Earning Yield: EPS/ Market value per share We have to get the Market value per share of the relevant period.

08 Weighted average Number of ordinary shares 3757636907 outstanding (I.7 Book value per share: Net worth/ Number of ordinary shares I.e.Rs. i. The book.55244064 BV is considered to be the accounting values of each share. i. drastically different than what the market is valuing the stock at.100. 36. Here “diluted” value is considering numbers of share is not considering .e.1 P/L:IV-19(iv): Shareholders funds 13735. Rs.1)/(P/L:IV)×10^7(to convert into unit rupees) 36.55is far higher than the face value of each share.

75 8161.15 17. 17.11 7295.65 2934. i. .69% is quiet good and the company is doing well.F YEAR 1 Investment-related Ratios 2011 Return on assets or earning power (ROA)= (PAT/ Average total assets (of the given year here 2008&09)) ×100 or ((PAT+ Interest)/Average fixed assets) ×100 P/L:III: Profit after taxation Fixed Assets 2010 3263.55 7019.e.768625 Earning power of the company.27 18367.59 Investments 2010 Current assets 2010 Fixed assets 2009 Investments 2009 Current assets 2009 Average total assets (PAT/ATA) )×100 2837.

2 Return on capital employed (ROCE)=(EBIT(PBIT)/ Capital employed) ×100 P/L:III: Profit before taxation and Exceptional 4825.74 items I: Sources of Funds 14779.65% signifies that the company is getting good return out of its investment Decisions.82 ((P/L:III)/I)×100 32. .65087126 The ROCE of 32.

59 1.76 times) is same as that of “Return on equity”.G Year Return on Equity (ROE) 2011 1 ROTSE (return on total shareholders equity)=(PAT/ Total Shareholder equity) ×100 P/L:III: Profit after taxation 3263. .760983 The ratio (23. since there are no preference shares.I: Shareholders funds 13735.08 (P/L:III)/(P/L:IB)×100 23.

and “return on total shareholders equity” since there are no preference shares Du Pont Analysis for the year 2011 .I: Shareholders funds 13735.59 1.08 (P/L:III)/(P/L:IB)×100 23. The ratio (25.G Year Return on Equity (ROE) 2011 2 ROOSE (return on ordinary shareholders equity) /RONW (return on net worth)= (PAT.87 times) is same as that of “Return on equity”.760983 .prefenctial dividends)/Net worth) ×100 P/L:III: Profit after taxation 3263.

94 14.08 7755.08% 8161.10 21355.60392% Du Pont Analysis for the year 2011 Interest charges Corporate Income test Cost of goods sold Operating expenses Net sales+/-non operating surplus/deficit Total cost Net profit after tax Net sales Net profit margin 3120.46587269 times 19.11 8485.59 7755.97 16647.Interest charges Corporate Income test Cost of goods sold Operating expenses Net sales+/-non operating surplus/deficit Total cost Net profit after tax Net sales Net profit margin Inventories Other Current assets Cash bank and marketable securities Receivables Current assets Fixed assets Total assets Net sales Total assets turnover Return on total assets 3263.42 42.42 .60999% .

.92 7408.27 7295. They also got huge success in the non tobacco products like bingoo.65 14314.51753066 times 7. paperboards etc. They have planned a sound supply chain and distribution system. ITC entered in the fast moving sector with strong marketing strategies. If ITC is growing like this than the day is not away that it became the market leader in fast moving sector same as ITC Tobacco product sector.41 .5611178% CONCLUSION After going through the long study of ITC financial Report I find out that the ITC company growths their business day by day not only in tobacco products but also in non tobacco products. confectionaries.Inventories Other Current assets Cash bank and marketable securities Receivables Current assets Fixed assets Total assets Net sales Total assets turnover Return on total assets 7019. ITC is focusing on the quality of the product. they provide stiff competition to their competitors like parle. Cadbury etc.

investopedia.uconn.com . • http://www.org/casestudies/icmr_case_studies.icmrindia.BIBLIOGRAPHY • http://www.edu/ • http://www.com/terms/d/debtequityratio.morningstar.econ. •http://www.

Annexure  Cash Flow Statement for the year ended 31st March 2011  Consolidated Profit & Loss Account for the year 31st March 2011  Consolidated Balance sheet for the year 31st March 2011 .

Thank You! .