1) Introduction

ITC is one of India's foremost private sector companies with a market capitalisation of
nearly US $ 14 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 BusinessWorld 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 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 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 25,000 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 3,60,000 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."
 2) History
 ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. Its 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. The Company's ownership progressively Indianised, and the name of
the Company was changed to I.T.C. Limited in 1974. In recognition of the
Company's multi-business portfolio encompassing a wide range of businesses -
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &
Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting &
Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.
 Though the first six decades of the Company's existence were primarily devoted to
the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the
Seventies witnessed the beginnings of a corporate transformation that would usher
in momentous changes in the life of the Company.
 ITC's Packaging & Printing Business 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 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
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.
 n 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 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, 24 'Choupal
Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and
Uttar Pradesh.
 In 2000, ITC launched a line of high quality greeting cards under the brand name
'Expressions'. In 2002, the product range was enlarged with the introduction of Gift
wrappers, Autograph books and Slam books. In the same year, ITC also launched
'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages
and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the
company rolled out 'Classmate', a range of notebooks in the school stationery
segment.
 ITC also entered the Lifestyle Retailing business with the Wills Sport range 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 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 2007, the Company introduced 'Miss Players'- a fashion
brand in the popular segment for the young woman.
 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 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 mint-o and Candyman confectionery and
Aashirvaad atta (wheat flour). 2003 witnessed the introduction of Sunfeast as the
Company entered the biscuits segment. ITC's entered the fast growing branded
snacks category with Bingo! in 2007. In just seven 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 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
markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and
Vivel range of shampoos in June 2008.

3) Meaning of Name
 ITC stands for “Imperial Tobacco Company” initially when it was incorporated for
the 1st time in 1924. Later on the name has been changed to “Indian Tobacco
Limited” in 1974. After that, in recognition of the Company's multi-business
portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards & Specialty Papers,
Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full
stops in the Company's name were removed effective September 18, 2001. The
Company now stands rechristened 'ITC Limited'. There is no specific meaning of
ITC name is given on their website. But what I think is that it is the name given to
the company to signify the operation of the company. Since ITC started its
business in tobacco industry, they have chosen the name to demonstrate their
nature of business and what exactly what they want to perform.
 4) Evolution of Name
 ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco
Company of India Limited'. ITC had a humble beginning and in the initial days it
used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th
birthday on August 24, 1926, ITC purchased the plot of land situated at 37,
Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later company's
headquarter building, 'Virginia House' came on that plot. Progressively the
ownership of the company Indianised, and the name of the Company was changed
to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio
encompassing a wide range of businesses, the full stops in the Company's name
were removed effective September 18, 2001 and the Company was rechristened as
'ITC Limited'.

5) About Logo

The logo basically showing the name of the company i.e. “Imperial Tobacco
Company” and later on “Indian Tobacco Company”. Company using the logo to
show their company name which is clearly understood from the logo.
6) Operation
 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. Its main operation is related to tobacco industry of India
from which the company grab maximum revenue. Additional to this company
has its footprints in other sectors also. Starting from Hotel industry, FMCG foods,
Personal care, Agarbattis, Match box, Apparels, Papers, Greetings cards, Pens
etc. ITC is one of the top conglomerates of India and the 2nd largest exporter
from India. The main strength of ITC is their “Brand value” and “Distribution
Channel” which has its reach at all parts of the company.

7) Product Mix

Fig.: Product Mix of ITC

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 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 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.

FMCG 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 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
98 years to the Indian consumer and several of its brands are today
internationally benchmarked for quality.
 The Foods business carries forward this proud tradition to deliver quality food
products to the consumer. All products of ITC's Foods business available in the
market today have been crafted based on consumer insights developed through
extensive market research. Apart from the current portfolio of products, several
new and innovative products are under development in ITC's state-of-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 98 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 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:
 Kitchens of India
 Aashirvaad
 Sunfeast
 mint-o
 Candyman
 Bingo!

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 Signature designer wear, designed by
the leading designers of the country.
 With a distinctive presence across segments at the premium end, ITC has also
established John Players as a brand that offers a complete fashion wardrobe to
the male youth of today. The recent launch of Miss Players with its range of
trendy fashion wear for young women has been a successful addition to the
youthful offering. With its brands, ITC is committed to build a dominant presence
in the apparel market through a robust portfolio of offerings.
  At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and
pleasing atmosphere. The use of space is refreshing, which is reflected even in
the spacious changing rooms. Every store offers an international retailing
ambience with the extensive use of glass, steel and granite, reflecting the most
contemporary trends in store design, thereby creating a splendid backdrop for
the premium offerings.
 Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of India
recently. Wills Lifestyle has been twice declared 'The Most Admired Exclusive
Brand Retail Chain of the Year' at the Images Fashion Awards in 2001 & 2003 as
well as 'Most Admired Fashion Brand of the year - Fashion Forward' in 2009.

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 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.
  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 & Stationary products

 ITC made its entry into the stationery business in the year 2002 with its premium
range of notebooks, followed in the year 2003 with the more popular range to
augment its offering.
 Today, ITC continues to blend its core capabilities to market a growing range of
education and stationery products. These capabilities include,

a. Manufacturer of India’s first Ozone treated environment friendly Elemental

Chlorine Free (ECF) pulp, paper and paperboard.

b. Knowledge of image processing, printing & conversion garnered from its

Packaging & Printing Business.

c. Brand Building & Trade Marketing & Distribution strengths resident in its
FMCG Business.

 ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”, with

Classmate addressing the needs of students and Paperkraft targeted towards
college students and executives.
 Classmate - India’s truly largest National brand, reaching 65,000 outlets across
the country, has over 300 variants in its range which comprises notebooks, long
books, practical books, drawing books, scrap books, reminder pads etc.
 The Classmate Fun N Learn range of children books targeting pre school
learners, comprising categories like Pre School Learner, Active Minds and Read
Aloud Tales with features like Wipe n Use again, Trace & Color and Puzzles
ensure that a child's first lessons are truly enjoyable.
 Classmate Invento Geometry Boxes, launched for school students comprise a
world-class precision compass and high quality plastic instruments coupled with
interesting trivia and useful information, to make geometry more fascinating for
students.
 Aesthetically designed, Classmate pens offer the consumer a smoother and
more comfortable writing experience through use of ergonomic design, reducing
the effort required for writing. The initial launch comprises ball pens - Classmate
Safari and Classmate Ilet - and gel pens - Classmate Glider and Classmate
Octane.
 A new entry to the Classmate portfolio is its range of HB Jet Black pencils.
Designed attractively for school kids, the pencils offer a unique advantage of
lesser lead wear out and thus, “Stay Sharper for Longer”.
 The Classmate Notebook range builds in regional preferences and caters to the
requirements of All India & State Education Boards. Every Classmate notebook
carries ITC's Corporate Social Responsibility message on its back. For every four
Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative
that supports, among other projects, primary education in villages.
 Classmate has successfully run the “Classmate Young Author & Artist Contest”
for 5 years. The contest is a national level event going across 34 cities and getting
participation from 5000 schools.
 The Paperkraft range consists of premium stationery with a wide variety for
executives to choose from. The assortment consists of notepads & multi subject
notebooks in hard, soft covers & multiple binding formats including spirals, wiros
etc.
 The Paperkraft brand recently launched premium business paper – an
environment friendly multipurpose paper for office and home use. The paper has
been crafted by ITC’s Bhadrachalam unit using a pioneering technology, called
 “Ozone Treated Elemental Chlorine Free technology”. Paperkraft business paper
is the whitest and brightest 75 & 70 GSM papers manufactured in India and
provides consumers an opportunity to “Go Green”.

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 small-scale
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 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 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 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.
 Mangaldeep Yantra is a special offering from ITC and this specially created
fragrance evokes the ambience of a temple. 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 recently been 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 cross-
section 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.
 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 manufactured by small scale and cottage units, providing livelihood
opportunities for more than 5000 people. Seven out of 10 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.

 Expressions Aromatic Candles

o Leveraging its deep consumer insight, ITC's Agarbatti business recently
launched "Expressions" Premium Range of Aromatic Candles in India
through Wills Lifestyle Stores. Research on usage and attitude reveals a
strong linkage of candles to attributes like Romance, Decoration and
Wellness (Aromatherapy).
o The Expressions range of Aromatic candles comprises Amour - the
Romance Series, Adora - the Decor Series and Nirvana - the Spa Series.
The basis of segmentation is colour and fragrance - Red for romance,
Purple for décor and Green for wellness. The fragrance of the candles have
been specially selected are made from the finest perfumes and oils. Each
candle's fragrance, shape and design are carefully chosen with a distinct
sensation and ambience in mind. Ideal for gifting, Expressions Aromatic
Candles promise to soothe, uplift and transform.
Hotels
 ITC entered the hotels business in 1975 with the acquisition of a hotel in
Chennai, which was then rechristened ITC Chola. 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. ITC's Hotels business is one of India's finest and
fastest growing hospitality chains. ITC Hotels' commitment to delivering globally
benchmarked services, embedded in a culture deeply rooted in India's rich
tradition of hospitality, gives it a unique and distinct identity.

 A leader in the premium hospitality segment, ITC Hotels have had the privilege of
hosting world leaders, Heads of State and discerning guests from across the
world and within.

 ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in

the hospitality industry. It was the first to launch the idea of a 'Hotel within a
Hotel' by segmenting, customizing and branding hotel services like 'ITC One',
'Towers' and the 'Executive Club'. Each of these caters to specialized needs of the
global business traveller with unmatched quality and a range of custom-made
services.

 ITC-Welcomgroup was the first to introduce branded

cuisine. Its restaurants Bukhara, Dakshin and DumPukht are
today powerful cuisine brands. ITC-Welcomgroup also
showcases international cuisine in its specialty restaurants West View and Pan
Asian.

 ITC has strategically customized its hotels and appropriately categorized them to
fulfill the service and budgetary needs of travellers. ITC-Welcomgroup has an
 exclusive tie-up with global partner Starwood for its top of the line premium
brand, the 'Luxury Collection'. ITC Hotels 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 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 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 Hotel Chennai and Sheraton New Delhi
offer warm, comforting services to the global traveller and a chance to connect.
  Fortune Hotels offer full service properties
all over India, including smaller towns and cities,
ideal for the budget traveller. Fortune Hotels have
a strong presence in Ahmedabad,
Thiruvananthapuram, Calicut, Darjeeling, Jamshedpur, Vapi, Hyderabad,
Gurgaon, Indore, Ootacamund, Madurai, Jodhpur, Vijaywada, Chennai,
Visakhapatnam, Mahabalipuram, Kolkata, Bengaluru, Navi Mumbai, Tirupati and
Port Blair, while several more hotels are expected to be commissioned soon in
other key 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.

 Welcom Environment

 WelcomEnviron 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.
 ITC Green Centre
 The ITC Green Centre in Gurgaon, the
headquarters of ITC's Hotels Business is the
physical expression of this commitment to
sustainability - Ecological, Social and Economic.
This building is one of the world's largest green
buildings with space of over 170,000 square feet and the first non-commercial
complex in the country to be awarded the United States Green Building Council-
Leadership in Energy and Environmental Design's (USGBC-LEED) platinum rating -
the highest in the order.
 At ITC Green Centre, energy consumption has been reduced significantly through
design integration. The building has been designed to maximize the effect of
natural light during daytime, largely eliminating the need for artificial ones. At
the same time, the window glass, while allowing light inside, does not allow heat.
This not only keeps the office cool from inside during the day, but also decreases
the load on air-conditioners. Again, there is minimum exterior lighting to limit
night sky pollution. The water consumption has dropped by 40 per cent and, with
a water re-cycling plant, the building is now a zero water discharge building.
 ITC Welcomgroup - Empowering Differently-abled people
 ITC-Welcomgroup has established that if provided with an opportunity to work
and become self-sufficient, people who are differently abled can significantly
contribute to the workplace, families and the community. ITC-Welcomgroup has
taken a positive step in this direction by employing people who are differently
abled across its hotels. ITC-Welcomgroup believes that everyone should be
treated with sensitivity and empathy. The models it has created have been
effective and have succeeded in sensitising other employees to the needs of
those differently-abled. Keeping in mind their specific skills, over 100 differently
abled have been employed in diverse functions like housekeeping, teleworking,
 bakery and as musicians. Special badges for the visually impaired, whistles for
hearing impaired employees to use in an emergency and sign language classes
for the staff to communicate with them are just a few examples of how ITC-
Welcomgroup has created an atmosphere of sensitivity and caring.

Paperboard and Speciality papers

ITC’s Paperboards and Specialty Papers Division is India’s largest and most
technologically advanced paper and paperboards business. ITC caters to a wide
spectrum of packaging, graphic, communication, writing, printing and specialty paper
requirements through its four world-class mills in India. Having pioneered many
speciality applications like cigarette tissues, packaging boards, aseptic cartons and
gypsum liners, 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 paperboards market. It is also the largest Indian exporter of coated boards.

Packaging
ITC's Packaging & Printing Business is the country's largest convertor of paperboard
into packaging. It converts over 50,000 tonnes of paper and paperboard per annum
into a variety of value-added packaging solutions for the food & beverage, personal
products, cigarette, liquor, cellular phone and IT packaging industries. It has also
entered the Flexibles and Corrugated Cartons business.
The Division, which was set up in 1925 as a strategic backward integration for ITC's
Cigarettes business, is today India's most sophisticated packaging house. State-of-the-
art technology, world-class quality and a highly skilled and dedicated team have
combined to position ITC as the first-choice supplier of high value added packaging.
The Division supplies value-added packaging to the Company's Cigarettes business. Its
client list includes several well-known national and international companies like British
American Tobacco, Philip Morris International, Surya Nepal Private Limited, VST
Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India Pvt Ltd., Pernod Ricard,
Allied Domecq, Whyte & Mackay, Hindustan Lever, Tata Tetley, Nestle and Reckitt
Benkiser India Limited, etc.
With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and
Haridwar in Uttarakhand certified to ISO 9001, ISO 14001 and OHSAS 18001, the
Company offers a comprehensive product range in packaging:
Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels
Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons
Fluted Cartons Shoulder Boxes Pre-printed cork tipping Flexibles Packaging
ITC occupies a leadership position in cigarette and liquor packaging in India. It supplies
packaging to cover 70 billion cigarettes a year domestically, and supplies packaging for
15 billion cigarette sticks a year for the export market. It is the largest supplier of
liquor mono cartons in the country.
ITC has enhanced the value of some of the most favoured brands with superior look-
and-feel packaging, using the best raw materials and process combinations, and an in-
house pre-press Design Centre.
A Product Introduction Process team pioneers packaging innovations. The team uses a
unique process to pilot the client's packaging through its manufacturing system.
Specifications are evolved based on clients' needs. Corresponding to the specifications,
a variety of packaging solutions is then generated. The efficacy of the packaging is
tested simulating the client's factory conditions.
E-Chaupal
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 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 agri-products
are in excess of Rs. 1500 Crores (Rs. 15 billion). It currently focuses on exports of:
• Feed Ingredients - Soyameal
• Food Grains - Rice (Basmati & Non Basmati), Wheat, Pulses
• Edible Nuts - Sesame Seeds, HPS Groundnuts, Castor oil
• Marine Products - Shrimps and Prawns
• Processed Fruits - Fruit Purees/Concentrates, IQF/Frozen Fruits, Organic
Fruit Products, Fresh Fruits
• Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery
and other Seed Spices
 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 web-enabling the
Indian farmer. Christened 'e-Choupal', ITC's empowerment plan for the farmer centres
around 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 multi-dimensional 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 6200 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, 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 e-Choupals, 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
identity-preserved 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
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
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. Three Choupal Fresh Cash & Carry
Stores and Six 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 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 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 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.itcibd.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
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 high-yielding varieties of chipstock potato
seeds.

8) Chairman
The chairman of ITC limited:
 Yogesh Chander Deveshwar

Executive Directors:
 Sahibzada Syed Habib –ur-Rehman
 Anup Singh
 Krishnamoorthy Vaidhyanath
9) Critical Events that change the course
 Indian rural and agri. market is 70% to other resources in India ,but only 30 % of
GDP is from agriculture sector . ITC realized it that their cigarette business has a
limit further which they wont be able to tap profit and their expansion plans. So
diversification was needed in any case to build a foothold in Indian market.
 FMCG bieng the fourth largest sector in the field which is expanding at a very fast
pace and it has huge potential , along with the benefit that it can be accrued by
organizing the existing fragmented market leading to concept of ‘one stop shop’.
 Further India being one of the largest economies with the benefit of its vast
market, it attracted ITC to expand its operation in various areas of hospitality,
FMCG ,Greeting cards Branded Apparels etc.

10) The Responsibility Factor

Preamble
Over the years, ITC has evolved from a single product company to a multi-
business corporation. Its businesses are spread over a wide spectrum, ranging
from cigarettes and tobacco to hotels, packaging, paper and paperboards and
international commodities trading. Each of these businesses is vastly different
from the others in its type, the state of its evolution and the basic nature of its
activity, all of which influence the choice of the form of governance. The
challenge of governance for ITC therefore lies in fashioning a model that
addresses the uniqueness of each of its businesses and yet strengthens the unity
of purpose of the Company as a whole.
Since the commencement of the liberalisation process, India's economic scenario
has begun to alter radically. Globalisation will not only significantly heighten
business risks, but will also compel Indian companies to adopt international
norms of transparency and good governance. Equally, in the resultant
competitive context, freedom of executive management and its ability to
respond to the dynamics of a fast changing business environment will be the new
success factors. ITC's governance policy recognises the challenge of this new
business reality in India.
Definition & Function
ITC defines Corporate Governance as a systemic process by which companies are
directed and controlled to enhance their wealth generating capacity. Since large
corporations employ vast quantum of societal resources, we believe that the
governance process should ensure that these companies are managed in a
manner that meets stakeholders aspirations and societal expectations.

Core Principles
ITC's Corporate Governance initiative is based on two core principles. These are :
i. Management must have the executive freedom to drive the enterprise
forward without undue restraints; and
ii. This freedom of management should be exercised within a framework of
effective accountability.
ITC believes that any meaningful policy on Corporate Governance must provide
empowerment to the executive management of the Company, and
simultaneously create a mechanism of checks and balances which ensures that
the decision making powers vested in the executive management is not only not
misused, but is used with care and responsibility to meet stakeholder aspirations
and societal expectations.
Cornerstones
From the above definition and core principles of Corporate Governance emerge
the cornerstones of ITC's governance philosophy, namely trusteeship,
transparency, empowerment and accountability, control and ethical corporate
citizenship. ITC believes that the practice of each of these leads to the creation of
the right corporate culture in which the company is managed in a manner that
fulfils the purpose of Corporate Governance.
Trusteeship:
ITC believes that large corporations like itself have both a social and
economic purpose. They represent a coalition of interests, namely those of
the shareholders, other providers of capital, business associates and
employees. This belief therefore casts a responsibility of trusteeship on
the Company's Board of Directors. They are to act as trustees to protect
and enhance shareholder value, as well as to ensure that the Company
fulfils its obligations and responsibilities to its other stakeholders. Inherent
in the concept of trusteeship is the responsibility to ensure equity, namely,
that the rights of all shareholders, large or small, are protected.
Transparency:
ITC believes that transparency means explaining Company's policies and
actions to those to whom it has responsibilities. Therefore transparency
must lead to maximum appropriate disclosures without jeopardising the
Company's strategic interests. Internally, transparency means openness in
Company's relationship with its employees, as well as the conduct of its
business in a manner that will bear scrutiny. We believe transparency
enhances accountability.
Empowerment and Accountability:
Empowerment is an essential concomitant of ITC's first core principle of
governance that management must have the freedom to drive the
enterprise forward. ITC believes that empowerment is a process of
actualising the potential of its employees. Empowerment unleashes
creativity and innovation throughout the organisation by truly vesting
decision-making powers at the most appropriate levels in the
organisational hierarchy.
ITC believes that the Board of Directors are accountable to the
shareholders, and the management is accountable to the Board of
Directors. We believe that empowerment, combined with accountability,
provides an impetus to performance and improves effectiveness, thereby
enhancing shareholder value.
Control:
ITC believes that control is a necessary concomitant of its second core
principle of governance that the freedom of management should be
exercised within a framework of appropriate checks and balances. Control
should prevent misuse of power, facilitate timely management response
to change, and ensure that business risks are pre-emptively and effectively
managed.
Ethical Corporate Citizenship:
ITC believes that corporations like itself have a responsibility to set
exemplary standards of ethical behaviour, both internally within the
organisation, as well as in their external relationships. We believe that
unethical behaviour corrupts organisational culture and undermines
stakeholder value.
11) What make them different from others
 Brand
 Management
 Distribution Channel

12) Contact
Registered Office
VIRGINIA HOUSE

37 J.L.NEHRU ROAD, KOLKATA 700 071

EPABX NO. : 91-(0)33 22889371

Communications
Department-wise Fax
VIRGINIA HOUSE
Ground Floor
Merchandising Fax 22881417
Taxation Fax 22880842

Blending

Marketing PD

1st Floor
Corporate Accounting Fax 22881256
Fax 22882256/
India Tobacco Division Accounting
22882070
2nd Floor
General
Chairman
Directors Fax 22882257
Communication Room
Corporate Financial Controller
3rd Floor
General Fax 22882251
Engineering Fax 22880188
Engineering Marketing
Production
Leaf
Purchasing

4th Floor

India Tobacco Division Board (ITD)

Human Resources - ITD
Fax 22882953
ITD Finance
T&RA

ITC CENTRE

1st Floor

Corporate Funds & Planning Fax 22880826

Fax 22886262
Investor Service Centre
22880826, 22886320
3rd Floor
India Tobacco Division MIS Fax 22887534, 22885045
22887114, 22886218,
ISDN Line, ITD MIS
22880830, 22889665
4th Floor
Hotels Fax 22882344
Hotels (Fortune Hotel Data 1) Fax 22884852
IBD Aqua Fax 22888283
Investment Subsidiaries Fax 22889980

Surya Nepal Private Limited

International Travel House 22889836

6th Floor
General
Fax 22882259
Audit, Legal, Secretarial
7th Floor
Corporate Human Resources Fax 22882260
Salaries & Retirement Funds, Legal, EHS, PPD Fax 22880754
8th Floor
Corp. Communications Fax 22880655

9th Floor

Export Marketing Fax 22882252

Divisional Audit, NBDC, Mktg. Exports, Task
Fax 22889411
Force, Engineering

11th Floor

Fax 22884903