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ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited.
As the
Company's ownership progressively Indianised, the name of the Company was changed from Imperial
Tobacco
Company of India Limited to India Tobacco Company Limited in 1970 and then toI.T.C. Limited in 1974.
In
Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business,
Foods,
Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the Company's name
were removed
effective September 18, 2001. The Company now stands rechristened 'ITC Limited
'.
The Company’s beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre
of the
Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the
plot of land
situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This
decision of
the Company was historic in more ways than one. It was to mark the beginning of a long and eventful
journey into
India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land
two years
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
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
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
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since
inception, its
shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal.
In August
2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal
Private
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
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 forayed into the Greeting, Gifting and Stationery products business with the launch of
Expressions
range of greeting cards. A line of premium range of notebooks under brand “Paperkraft”was launched in
2002. To
augment its offering and to reach a wider student population, the popular range of notebooks was
launched under
brand “Classmate” in 2003. “Classmate” over the years has grown to become India’s largest notebook
brand and has also increased its portfolio to occupy a greater share of the school bag. Years 2007- 2009
saw the
launch of Children Books, Slam Books, Geometry Boxes, Pens and Pencils under the “Classmate” brand.
In 2008,
ITC repositioned the business as the Education and Stationery Products Business and launched India's
first
environment friendly premium business paper under the “Paperkraft” Brand. “Paperkraft” offers a
diverse
portfolio in the premium executive stationery and office consumables segment. Paperkraft entered new
categories in
the office consumable segment with the launch of Textliners, Permanent Ink Markers and White Board
Markers in
2009.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality
relaxed wear for
men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include
Wills
Classic formal wear (2002) and Wills Clublife evening 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
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
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 Aashirvaadatta (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 eight years, the Foods business has grown to a significant size
with over200 differentiated products under six distinctive brands, with an enviable distribution reach, a
rapidly growing
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 matchesbrands like
iKno,
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 Mangaldeepacross 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 & Vivelrange of soaps in February and Vivel range of shampoos in June 2008.
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.
•Create multiple drivers of growth by developing a portfolio of world class businesses that best
•Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri
•Benchmark the health of each business comprehensively across the criteria of Market Standing,
•Enhance the competitive power of the portfolio through synergies derived by blending the diverse
•Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses. Continuously strengthen and refine Corporate
Governance processes and systems to catalyse the
entrepreneurial energies of management by striking the golden balance between executive freedom
25 Aug 2010
Kolkata: ITC completed a 100 years on the 24th of August, 2010. A glorious moment in its history, the
occasion was
marked by celebrations across all its offices and facilities in India, with Company flag-hoisting
ceremonies to
At a special Centenary event, in Kolkata, Chairman Mr. Y C Deveshwar, addressing a 29,000 strong
audience of
employees across the country through a webcast, said that: "Innovation should be a source for
creating consumer
delight as well as triple bottom line performance so as to generate greater value for the shareholder
and the society.
Value creation for the Indian society is best achieved by creating sustainable livelihoods and
replenishing natural
capital." Emphasising on the need for competitive vitality, Chairman Mr Deveshwar underscored the
need to leverage
knowledge resident across diverse businesses in its world class human resources to create
"Champion Teams"
that would continuously innovate to deliver competitively superior customer value. He reiterated his
firm belief that
the unique amalgam of ITC’s Vision, Values and Vitality has ensured that the Company is ‘Future-
ready’.
The event also included the felicitation of the winners of the ‘Voice of ITC’ contest – a one-of-its-
kind internal
talent contest, that saw more than a 1000 entries, out of which the final 15 were shortlisted to record
the ITC Anthem.
The ITC anthem, ‘Kal ki Oaur’, formally released on this occasion, expresses ITC’s abiding commitment
to growth,
As part of the ITC centenary initiative, the Classmate ‘Ideas for India Challenge ’ was also launched.
Engaging the
youth of the country, the nation wide programme invites ideas which have the potential to transform
their India of
tomorrow. The Classmate ideas for India challenge will reach out to 25 lakh students across 30 cities,
500 schools
A unique internal contest, ‘Think Next’ was launched on the occasion of ITC’s centenary. This
enterprise-wide
competition is aimed at fostering innovation as a key driver for growth and a differentiator to remain
competitively
superior in the global marketplace. The contest would unfold over the following months and reward
the most
innovative ideas from among ITC’s employees, touching upon diverse areas like systems, product
development,
ITC’s employees also signed the ITC Pledge – an oath of duty and dedication that reaffirms their
commitment to the
livelihoods.
The ITC story is one of transformation from a single product company to one of India’s largest multi-
business corporate enterprises in the private sector. This long and inspirational journey of challenge and
change has unfolded in tandem with India’s own evolution and growth across ten decades. These 100
inspiring years have been marked by an overarching Vision to serve a larger national purpose, to live by
the
strong Values of Trusteeship and to nourish internal Vitality to create superior value for all stakeholders.
It has been the journey of an organisation that has consciously put Country before Corporation - an
enterprise that proudly echoes the credo ‘Let’s Put India First’. It has been a journey of leadership, not
only in shareholder value creation, but also in serving all stakeholders and in meeting societal
expectations.
It has been a voyage that has brought ITC global recognition as an exemplar in sustainability practices -
theonly company in the world of its size to be carbon positive, water positive and solid waste
recycling positive. This long and eventful travel across a century has been particularly meaningful and
satisfying because it has enabled ITC to create over 5 million sustainable livelihoods.
With a market capitalisation of more than Rs.100,000 crores, ITC steps into its next century with an
ambitious portfolio of businesses for tomorrow that span Fast Moving Consumer Goods, Paper &
Packaging,
Hotels, Agri-Business and Information Technology. Its aspirations are matched by its formidable array of
enterprise capabilities - deep consumer insights, international quality products, world-class human
capital,
globally contemporary business processes, powerful brands, an excellent trade marketing and
distribution
Like all long and eventful journeys, ITC’s too had a small beginning, way back in 1910 when the British
owned Imperial Tobacco Company set foot in Calcutta. The mass produced cigarette was still a novelty
then.
High quality Virginia tobaccos had never been grown in this vast subcontinent. Even before the
Company
was registered as ‘Imperial Tobacco’, it had already set up India’s first cigarette factory at Munger (1908)
and commenced tobacco leaf buying operations in Andhra Pradesh (1909). Around 1911, the Company
started working in partnership with farmers in South India for crop development. The Indian Leaf
Tobacco
Working with farmers and experts, right blends were developed from
tobacco grown in untried tracts. New sources were located and farming
country. It had five cigarette and two leaf processing factories, one
printing and packaging unit and was in the process of setting up another
small-scale ancillary units. By the late 50s, its imports had fallen to a
fraction and, by 1969, virtually all materials were sourced from within the
country.
pressure on corporates to reduce foreign ownership combined with the vision of the first Indian
Chairman
Shri Ajit Narain Haksar, paved the way for Indianisation of the Company and its Management. The vision
was to build an Indian enterprise that would derive its inspiration from the needs of Indian society and
craft
its growth strategies accordingly. It triggered ITC’s first major diversification into the Hotels business
(1975), followed by its entry into the Paperboards business (1977). Both were critical nation-building
interventions. The hotel industry would open new avenues for foreign exchange earnings by boosting
tourism. The engagement with the paperboard industry would mark ITC’s entry into the core sector,
with an
This changing character of the Company found expression in the change of its name from Imperial
Tobacco
Company of India Limited to India Tobacco Company Limited in 1970, moving on to I.T.C. Limited in 1974
and finally to the current form of ‘ITC Limited’ without full stops in 2001.
In the decade and a half following the initial diversification forays into hotels and paperboards, the
Company
ran into severe challenges. These were highly capital-intensive businesses which made huge demands
on the
Company’s resources. Since these businesses were structured as separate companies during this period,
their ability to raise capital and achieve meaningful scale was stunted. Consequently, these businesses
The decade from the mid-eighties to the mid-nineties witnessed feverish strategic activities. The
Company
entered the financial services business and set up ITC Classic Finance Ltd. Almost simultaneously it
entered
the edible oils business and set up ‘ITC Agro Tech Ltd.’, which was to later launch the popular brand
‘Sundrop’. During this period, the Hotels business took its iconic restaurant ‘Bukhara’ beyond the shores
of
India into New York and Chicago. ITC acquired the specialty papers company ‘Tribeni Tissues Ltd.’.
Aspiring
to become an international trading house in the likeness of a Japanese ‘sogo shosha’, ‘ITC Global
Holdings
Pte Ltd.’ was set up in Singapore. Additional capital was raised through an issue of Global Depository
When the current Chairman took over in 1996, ITC was experiencing an unenviable mix of challenges: its
core cigarette business had just been slapped with a retrospective excise duty demand of Rs. 803 crores;
its
earlier diversifications into hotels and paperboards had not reached fruition for want of adequate
investments; its more recent forays into financial services, edible oils and international trading were still
incurring losses; the Company’s weak diversification performance was facing severe criticism; to
compound
matters, a battle for control of the Company had ensued amidst a huge public smear campaign which
significantly damaged its reputation; and India had just entered into a phase of economic liberalisation,
Responding to the extremely challenging context of old burden and new opportunities, the newly
constituted
Board of Directors led by Shri Y C Deveshwar launched into a purposeful phase of rationalising,
restructuring
and repositioning the Company for international competitiveness. The new team stood steadfast in its
resolve to preserve ITC’s Indian identity and its strategy of creating multiple drivers of growth. A new
structure of corporate governance based on the principles of trusteeship, transparency and distributed
leadership was put in place. Recognising that ITC was not well positioned to create long-term value in
businesses such as edible oils and financial services, a responsible exit from these businesses was
executed
in 1998. In what was one of the most turbulent periods in the Company's history, huge financial outlays
were incurred to wind up Classic Finance and make a pre-deposit in the excise duty case for the period
1983-87. Subsequently, with the winning of several legal cases, ITC’s stand was vindicated, marking a
very
The critical task of building the international competitiveness of the Company’s businesses continued
apace.
Reaffirming its faith in the strategy of multiple drivers of growth, the Company restructured its portfolio
of
businesses based on the strategic fit between market opportunities and its core capabilities. The
Paperboards business was merged with ITC, infusing it with new life. A deep commitment to the
creation of
growing and sustainable value within India inspired ITC to swim against the tide and fashion a
comprehensive turnaround strategy, drawing upon the diverse skills within the ITC Group. The R&D
programme which had developed high yielding, hardy and disease resistant clonal saplings was
significantly
stepped up. Small farmers and poor tribals with private wastelands were mobilised to grow these trees
with
an assured buy back to augment their meagre incomes. Today, these plantations span over 1,00,000
hectares. Over 46 million person days of employment have been created. Most importantly, the
Paperboards
business stands transformed into a clear industry leader - profitable and environmentally responsible.
Similarly, the Hotels business was folded back into ITC in 2004. Renewed and dedicated efforts to create
one
of India’s finest hospitality chains have today resulted in an internationally acknowledged business with
best-
in-class operating margins, with discerning guests that include Heads of State of several countries as well
as
global corporate leaders. Moreover, reflecting ITC’s commitment to ‘Responsible Luxury’, its Hotels
combine
lent strength to these businesses taking them to leadership positions in a short span of time.
In 2000, ITC launched the revolutionary e-Choupal, bringing Information Technology to farmers and
providing them efficient access to markets and inputs. This initiative, now a Harvard Business School
case
study and a recipient of several prestigious global awards, has transformed rural lives, empowered
farmers
and raised rural incomes in the command areas of its operation. Today, more than 4 million farmers
benefit
from ITC’s e-Choupal. In the same year, ITC entered the Information Technology space on the strength
of
its domain knowledge. This business today is one of the fastest growing IT companies in India, driven by
the
In 1996, ITC had a Gross Income of Rs. 5188 crores, with a Profit After Tax of Rs. 261 crores and a Market
Capitalisation of Rs. 5571 crores. A decade and a half later - as ITC enters its Centenary year - the
strategic
choices made over the years, the untiring effort of its dedicated human capital, the support of its
shareholders and the trust of millions of consumers and its partners have today transformed ITC into a
Rs.
26,000 crore company with a Profit After Tax of over Rs. 4000 crores and a Market Capitalisation that
exceeds Rs. 100,000 crores. However, the financial value created for the stakeholders is only one pillar
ofITC’s contribution. An even more meaningful contribution lies in its efforts to build societal capital for
the
nation.
Inspired by the opportunity to contribute to a larger national purpose, Chairman Deveshwar has
redefined
ITC’s Vision to embrace societal value creation as an integral part of its business goals. ITC has
consciously
chosen to measure its performance in terms of its contribution to the triple bottom line benchmarks of
enhancing economic, environmental and social capital for the nation. Supporting large-scale social
forestry
programmes for poor tribals, creating large watershed projects, empowering women, providing
supplementary education to the rural poor and enhancing the quality of animal livestock are some of
ITC’s
large sustainability initiatives that have transformed the lives of thousands who live at the margin.
Arising
from its commitment to a low carbon future, nearly one-third of ITC’s energy comes from renewable
sources. Its green commitment extends to its buildings, with two of its properties achieving Platinum
LEED
certification.
are at the top of the FMCG space competing with the best
thought leadership to sustainability issues in the country, creating institutions and businesses that walk
the
talk in contributing to a more secure, sustainable and inclusive future. ITC has also built world-class
human
capital which is raring to take the Company into its next century.
The next century promises to be even more exciting and rewarding. ITC has assiduously invested in the
future. Today, the Company is already poised in the frontline of multiple businesses that will become
the
powerhouses of tomorrow as the Indian economy surges ahead. Significant investments in cutting-edge
R&D
will deliver unique solutions for a better quality of life. ITC’s deep commitment to sustainable business
practices will be a source of competitive advantage as civil society becomes even more aware,
discerning
and demanding.
ITC steps into the next 100, inspired to create enduring value for all stakeholders, inspired to preserve
and
protect its deep-rooted Indian identity, and inspired to create value for the nation. Indeed, the best is
yet to
come.
Images
Wills Lifestyle has co-created exclusive lines with Rohit Bal, Ranna
Gill, Rohit Gandhi-Rahul Khanna, Satya Paul, Rajesh Pratap Singh and
Lifestyle stores.
Summer 2010
Classmate Pens
free writing.