A Study On

WORKING CAPITAL WITH REFERENCE TO MARUTHI,TOBACCO

TANGUTUR.

An Internship Report Submitted to the Department of MBA, JNTU - Kakinada

In Partial Fulfillment for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

BILLA SIVA

(Reg. No. 18491E0035)

Under The Esteemed Guidance Of

Mr. B. CHAKRAVARTHY M.B.A (P.h.d)

Assistant Professor

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

QIS COLLEGE OF ENGINEERING &TECHNOLOGY (AUTONOMOUS)

An ISO 9001:2008 Certified Institution and Accredited by NBA

(Affiliated to JNTU - Kakinada and Approved by AICTE)

Vengamukkapalem, Pondur Road

ONGOLE -523001.
 QIS COLLEGE OF ENGINEERING & TECHNOLOGY(AUTONOMOUS)

DEPARTMENT OF MASTER OF BUSINESS ADMINISTRATION

An ISO 9001:2008 Certified Institution and Accredited by NBA

(Affiliated to JNTU - Kakinada and Approved by AICTE)

Vengamukkapalem, Pondur Road

Ongole-523001

CERTIFICATE

This is to certify that the project entitled “A STUDY ON WORKING CAPITAL WITH
REFERENCE TO MARUTHI TOBACCO,TANGUTUR. is a bonafide work done and
submitted by Mr,BILLA SIVA.Reg. No. 18491E0035 under my guidance and supervision.

Signature of the guide Signature of the HOD

Mr. B.CHAKRAVARTHY . Dr. D. RAGHAVA

Assistant professor. Head of the department

 DECLARATION

I hereby declare that the project entitled “A STUDY ON WORKING CAPITAL WITH
REFERENCE TO MARUTHI TOBACCO TANGUTUR” submitted by me under the
guidance of Mr B.CHAKRAVARTHI, M.B.A, Assistant professor of MASTER OF
BUSINESS ADMINISTRATION in QISCET, Ongole. This is my original work and it has
not been submitted to any other universities or institutions for the award of any Master’s
Degree.

Place:

Date:

BILLA SIVA

(Reg.no.18491E0035)
 ACKNOWLEDGEMENT

I would like to express a deep sense of gratitude and thank profusely

Mr.B.CHAKRAVARTHY, MBA Assistant professor, without whose counsel and able
guidance, it would have been impossible to complete the project in this manner.

I express my deep sense of gratitude to Mr. RAGHAVA, Head of the Department of MBA
in QIS College of Engineering & Technology (Autonomous), for his continuous monitoring
and support in the successful completion of the project work.

I also express my gratitude to Dr. VENKAT RAO, Principal of QIS College of Engineering
& Technology (Autonomous), for his guidance and co-operation during my course of study.

I am highly thankful to the authority of MARUTHI TOBACCO PVT LTD for their kind
permission to undertake the present study as well as extending help in collecting the data. I
express my gratefulness to the company executives, supervisors and employees for sparing
their valuable time and courtesy during the period of study.

Finally, I express my profound gratitude to MY PARENTS AND FRIENDS for their

cooperation towards the completion of my project successfully.

BILLA SIVA

Reg.no. 18491E0035
 INDEX

CHAPTERS LIST OF CONTENTS PAGE NO.

Chapter-1

Need of the Study

Introduction of the industry /company

Objectives of the internship

Chapter-2 i) Industry Profile

Origin/ History
SWOT Analysis
List of companies in Indian market
Global scenario of the Industry
Challenges faced by Industry
ii) Company Profile
Origin / Incorporation of the Company
Vision, Mission, Goals & Objectives
Organization Structure
Competitors
Products / Services
Achievements/Rewards
CHAPTER-1
 NEED OF THE STUDY

"ITC Limited" was incorporated under the name 'Imperial Tobacco' which was later renamed
as 'Imperial Tobacco Company of India Limited', succeeding W.D. & H.O. Wills on 24
August 1910 as a British-owned company registered in Calcutta.] Since the company was
largely based on agricultural resource, it ventured into partnerships in 1911 with farmers of
southern part of India for sourcing leaf tobacco. Under the company's umbrella, the 'Indian
Leaf Tobacco Development Company Limited' was formed in Guntur district of Andhra
Pradesh in 1912. The first cigarette factory of the company was set up in 1913 at Bangalore.
In 1918, leaf-buying points were created in southern India. ITC's cigarette factory
at Munger was equipped with printing facility in 1925, paving way for its first non-tobacco
business.
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, 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. [7] More factories were set up
in the following years for cigarette manufacturing across India.
In 1928, construction began for the company's headquarters, the 'Virginia House' at Calcutta.
ITC acquired Carreras Tobacco Company's factory at Kidderpore in 1935 to further
strengthen its presence. ITC helped to set up indigenous cigarette tissue-paper-making plant
in 1946 to significantly reduce the import costs and a factory for printing and packaging was
set up at Madras in 1949. The Company acquired the manufacturing business of Tobacco
Manufacturers (India) Limited and the complementary lithographic printing business of
Printers (India) Limited in 1953.
The company was converted into a Public Limited Company on 27 October 1954. The first
step towards Indianization was taken in the same year with 6% of Indian shareholding of the
company. ITC also became the first Indian company to foray into consumer research during
this time. During 1960's, technology was given more focus with setting up of cigarette
machinery and filter-rod manufacturing facilities aimed at achieving self-sufficiency in
cigarette-making.
Ajit Narain Haskar became the company's first Indian chairman in 1969 and this was crucial
in building up the Indian management for the company. As the company's ownership
progressively Indianised, under Haskar's leadership, the name of the company was changed
from 'Imperial Tobacco Company of India Limited' to 'India Tobacco Company Limited' in
1970. ITC also became the first company in India to start phased Indianisation of capital and
the Indian shareholding of ITC grew from 6% to 25%. ITC entered into brand sponsorship for
various sporting events, starting from the 1971 Scissor's Cup. Innovative market campaigns
and electronic data processing were started in the 1970s.
In 1973, ITC set up its integrated research center in Bangalore, aimed at diversification and
venturing into newer businesses with research and development. With the unfolding
diversification plans, the name of the company was changed to 'I.T.C. Limted' in 1974. The
Indian shareholding grew further to 40% during this time. ITC entered into the hospitality
sector with hotel business in 1975 with the acquisition renaming of ITC Welcomgroup Hotel
Chola in Madras. ITC chose the hospitality sector for its potential to earn high levels of
foreign exchange, create tourism infrastructure and generate large scale direct and indirect
employment.
 INTRODUCTION TO THE INDUSTRY

Fast moving consumer goods are products that have a quick turnover, and relatively low cost.
FMCG generally include a wide range of often purchased consumer products such as toiletries,
soap, cosmetics, teeth cleaning products, shaving products and detergents, as well as other non-
durables such as glassware, bulbs, condoms, batteries, paper products and plastic goods. The
purchasers usually put less thought into the purchase of FMCG than they do for other durable
products such as electronic items. In comparison with other industries such as automobiles,
computers, and airlines, FMCG business has a steady rate of growth, for it does not suffer from
huge recession and layoffs…

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. In 1985,
ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since
inception, its shares have
 OBJECTIVES OF THE INTERNSHIP

Effectiveness study aims:

• To examine whether a policy introduced in India will affect self-reported tobacco use
behaviour (e.g., quit attempts, successful quitting, quit intentions) among tobacco users, as
compared to tobacco users in countries where that policy is not being introduced;
• To examine whether a policy introduced in India will enhance policy-relevant psychosocial
variables (e.g., warning labels: measures of label salience) among tobacco users, as compared
to tobacco users in countries where the relevant policy has not changed; and
• To examine whether a policy introduced in India will impact levels of general psychosocial
variables that have been identified in past research to be related to tobacco use and quitting
(e.g., beliefs and attitudes, perceived risk, subjective norms, perceived behavioural
control/self-efficacy, intentions to quit) among tobacco users, compared to countries with no
policy change. urn.

Mediation and moderation study aims:

• To examine whether the effects of FCTC policies that have been introduced in India are
being offset by compensatory behaviours (e.g., whether price increases lead to switching to
discount brands rather than to quitting);
• To examine whether the effects of tobacco control policies are moderated by situational
and individualdifference factors such as (a) demographic variables (age, gender, socio-
economic status (SES); (b) personality variables (e.g., time perspective); (c) environmental
context (e.g., number of peers/family members who smoke or use other forms of tobacco);
and (d) tobacco use history of the individual (e.g., past quit attempts, tobacco use intensity).
Of particular note will be whether FCTC policies serve to reduce disparities of tobacco use
burden as a function of SES; and
• To examine whether the effects of each policy on tobacco use behaviour are mediated by
those psychosocial variables that have been identified by past research to be important in
predicting and understanding tobacco use behaviour.
 CHAPTER-2
COMPANY & INDUSTRY PROFILE
 INDUSTRY PROFILE
HISTORY
Established in 1910, ITC Limited is a diversified conglomerate with businesses spanning Fast
Moving Consumer Goods comprising Foods, Personal Care, Cigarettes and Cigars, Branded
Apparel, Education & Stationery Products, Incense Sticks and Safety Matches; Hotels,
Paperboards and Packaging, Agri Business and Information Technology. The Company 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 to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974.
In recognition of the ITC's multi-business portfolio encompassing a wide range of businesses,
the full stops in the Company's name were removed effective September 18, 2001. The
Company now stands rechristened 'ITC Limited,' where 'ITC' is today no longer an acronym
or an initialised form.

A Modest Beginning

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

1925: Packaging and Printing: Backward Integration

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, 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.

1975: Entry into the Hospitality Sector - A 'Welcom' Move

The Seventies witnessed the beginnings of a corporate transformation that would usher in
momentous changes in the life of the Company. In 1975, the Company launched its Hotels
business with the acquisition of a hotel in Chennai which was rechristened 'ITC-
Welcomgroup Hotel Chola' (now renamed My Fortune, Chennai). 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 under four brands namely, ITC Hotels - Luxury
Collection, WelcomHotels, Fortune Hotels and WelcomHeritage.
ITC Hotels recently took its first step toward international expansion with an upcoming super
premium luxury hotel in Colombo, Sri Lanka. In addition, ITC Hotels also recently tied up
with RP Group Hotels & Resorts to manage 5 hotels in Dubai and India under ITC Hotels' 5-
star 'WelcomHotel' brand and the mid-market to upscale 'Fortune' brand.

1979: Paperboards & Specialty Papers - Development of a Backward Area

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited. 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.

1985: Nepal Subsidiary - First Steps beyond National Borders

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture.
In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was
changed to Surya Nepal Private Limited (Surya Nepal). In 2004, the company diversified into
manufacturing and exports of garments.
1990: Paperboards & Specialty Papers - Consolidation and Expansion
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.
1990: Agri Business - Strengthening Farmer Linkages
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. Also, through the 'Choupal Pradarshan Khet' initiative, the agri services vertical has
been focusing on improving productivity of crops while deepening the relationship with the
farming community.

2002: Education & Stationery Products - Offering the Greenest products

ITC launched line of premium range of notebooks under brand Paperkraft in 2002. To
augment its offering and to reach a wider student population, the Classmate range of
notebooks was launched 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 Practical Books, Drawing Books, Geometry
Boxes, Pens and Pencils under the 'Classmate' brand. 'Paperkraft' offers a diverse portfolio in
the premium executive stationery and office consumables segment.

2000: Lifestyle Retailing - Premium Offerings

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international
quality relaxed wear for men and women in 2000. 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 'Wills Signature',
taking the event forward to consumers.

2000: Information Technology - Business Friendly Solutions

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 - Banking Financial Services & Insurance (BFSI), Consumer Packaged Goods
(CPG), Retail, Manufacturing, Engineering Services, Media & Entertainment, Travel,
Hospitality, Life Sciences and Transportation & Logistics.

2001: Branded Packaged Foods - Delighting Millions of Households

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 entered the fast
growing branded snacks category with Bingo! in 2007. In 2010, ITC launched Sunfeast
Yippee! to enter the Indian instant noodles market. In September 2014,
ITC launched GumOn Chewing Gum marking the entry into the category of gums. The
Company entered the Fruit-based juices and beverages market with the launch of B
Natural Fruit beverages in January 2015. ITC's forayed into the dairy segment with the
launch of Aashirvaad Svasti Ghee in November 2015. Launched in April
2016, Fabelle chocolates are ITC's premier offering in the luxury chocolate space. ITC
forayed into the branded coffee category in July 2016 with the launch of Sunbean Gourmet
Coffee. In February 2017, ITC launched ITC MasterChef super safe spices - the first-of-its-
kind spices launched in India, offering export quality super safe spices to the Indian
homemaker. ITC MasterChef Prawns were launched in June 2017 as the Company entered
the Frozen foods segment. ITC's first foray into fresh fruits and vegetables segment was
marked with the launch of Farmland Potatoes in November 2017
.In just over a decade and a half, the Foods business has grown to a significant size under
numerous distinctive brands, with an enviable distribution reach, a rapidly growing market
share and a solid market standing.

2002: Agarbattis & Safety Matches - Supporting the Small and Cottage Sector
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 and Aim.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the
manifestation of its partnership with the cottage sector. Mangaldeep is a highly established
national brand and is available across a range of fragrances like Rose, Jasmine, Bouquet,
Sandalwood and 'Fragrance of Temple'.

2005: Personal Care Products - Expert Solutions for Discerning Consumers

ITC entered the Personal Care Business in 2005 and the portfolio has grown under 'Essenza
Di Wills', 'Fiama', 'Vivel' 'Superia' brands which have received encouraging consumer
response and have been progressively extended nationally. In May 2013, the business
expanded its product portfolio with the launch of Engage deodorants. ITC marked its foray
into the health space with the acquisition of the brand Savlon and Shower to Shower in 2015.
In 2017, the business acquired the brand Charmis to enhance its skincare portfolio.

2010: Expanding the Tobacco Portfolio

In 2010, ITC launched its handrolled cigar, Armenteros, in the Indian market. Armenteros
cigars are available exclusively at tobacco selling outlets in select hotels, fine dining
restaurants and exclusive clubs.
 SWOT ANALYSIS

ITC Limited is an Indian conglomerate involved in the various diversified business. ITC has
6 different verticals of businesses, FMCG, Hotel, Paperboards, Speciality papers and
packaging; IT and agribusiness. ITC’s cigarette business contributes a major proportion of its
FMCG revenue. ITC’s gross revenue crossed the mark of Rs. 50000 crore in 2016.

Strengths in the SWOT Analysis of ITC :

Portfolio of Business: ITC has 6 strong and diverse businesses under its name which boasts
its total revenue and allows ITC to innovate and explore other business opportunities. Strong
Brands in various businesses: ITC is a strong house of brands with most of
its products leading the segments in which they operate. ITC owns some of the most popular
cigarette brands like gold flake and Classic..

With a portfolio like this, ITC has become one of the most powerful conglomerates in India
and is admired all over the world.

Weaknesses in the SWOT Analysis of ITC :

High Proportion of revenues from Tobacco products: ITC has been continuously making
efforts to divert the FMCG business from over dependence on tobacco products and have
been successful in doing so to an extent. But, tobacco products remain to be the major source
of the revenue contributing more than 60% of the total revenue from FMCG businesses.

Opportunities in the SWOT analysis of ITC

Strategic Acquisitions: ITC should continue making the strategic acquisition like they have
done in the past by acquiring Savlon from Johnson & Johnson and B Natural from Balan
natural Foods. Keeping in mind that the product fits into the existing distribution network,
ITC can look to increase its portfolio of products and expand its Non-Tobacco FMCG
business and thereby strengthening the base of revenue.
 LIST OF COMPANIES IN INDIAN MARKET

COMPANY Address City Contact Number&Gmail

ALLIED D.no.10_2_26 2nd

40-4488 5000 / 40-4488 5184, email
AGRO line Sambasivapet GUNTUR
– alliedpackings@gmail.com
TRADERS Guntur(A.P)

LAKSHMI
Near Visnalayam
NARAYANA 040-67 50 50 50, email –
Tangutur Kondapur
TOBOCCO assistance@lakshmi@gmail.com
PRAKSAM(A.P)
TRADERS

LAKSHMI Ambedkar Nagar, 0861-2315836/37/38, 2312777,

ENTERPRISE Nellore, Andhra Nellore email –
S Pradesh assistance@lepnew@gmail.com
SeelamNukaraju
Complex Road,
KAKA
Katari Gardens, 883–2477770, 2477779, email –
SUBBARAO Rajahmundry
Rajahmundry-3, bollinenirjy@gmail.com
TOBOCCO
Andhra Pradesh,
INDIA.
P.N.Colony
Junction, Near
FAMOUSE
Datta Temple,
LEAF 8374-998824, 271118, email –
New Bridge Road, Srikakulam
TOBOCCO assistance@babugyn@gmail.com
Srikakulam
COMPANY
Andhra Pradesh,
INDIA.
4-120/A, North
Bypass Road, NH-
VENU 5, Backside
8592 667788&GMAI
TOBOCCO Agriculture Ongole
devaripalli1111@gmail.com
TRADERS Market Yard,
Mukthinuthalapad
u (V), Ongole,
 PrakashamDist,
Andhra Pradesh –
523 001.

32-11-02, Sheela
Nagar, BHPV
LAKSHMI Post, Vishakhapatna 0891 – 7100100&GMAIL lakshmi
TOBOCCO Vishakhapatnam m tobocco14@gmailcom
530 012 Andhra
Pradesh, India.
1-1348, Srinagar
Colony Extension,
Opposite to Sakshi
PRAKSAM Office, 08554 234
ENTERPRISE Rudrampeta, Anantapur 234.&GMAIL.mmtd114@gmail.co
S Anantapur – 515 m
004,
Andhra Pradesh,
India.
 GLOBAL SCENARIO OF THE INDUSTRY: -

ITC was incorporated in 1910 under the name of Imperial Tobacco Company of India
Limited (later changed to ITC Limited in 1974). It was initially in the cigarette and tobacco
business and later diversified into multiple businesses including hotels, paperboards and
speciality papers, packaging, agri-business, packaged foods and confectionery, branded
apparel, greeting cards and other FMCG products. The company entered the hospitality
business in 1975. In 1979 it entered the paperboards business by promoting ITC
Bhadrachalam Paperboards Limited, which was later amalgamated with ITC. In 1992,
leveraging its agri-sourcing competency, ITC set up the International Business Division for
export of agricommodities. More new lines of businesses have followed since 2001 in the
space of FMCG.The company’s products are manufactured at multiple production facilities
across the country. Certain initiatives of the company such as the ITC eChoupal, ITC
Choupal Saagar and the ITC social farm forestry programme have been recognised through
internationally acclaimed awards for their impact on rural life. ITC's diversified status
originates from its corporate strategy aimed at creating multiple drivers of growth, anchored
on its core competencies of strong distribution reach, superior brand-building capabilities,
effective supply chain management and service skills in hoteliering. Its distribution reach is
one of the largest in India – the FMCG business has a retail network over 2 million retailers
in the country, ranging from premium outlets in the metros to small shops in the interiors of
rural India. Currently British American Tobacco Company (UK) controls 32 per cent equity
stake in ITC. Domestic financial institutions hold 35 per cent share and foreign institutions
have a 15 per cent share. Indian public and corporate bodies hold the balance 13 per cent
stake.

ITC is the market leader in cigarettes in India with a wide range of strong brands. 3 of its
brands (Gold Flake,Wills and Scissors) feature amongst the top 5 FMCG brands in the
country.The Lifestyle Retailing business of ITC was established in the year 2000 through the
Wills Lifestyle chain of exclusive speciality stores that sell apparel and accessories under the
Wills trademark . ITC also sells men’s range of apparel under the brand name John Players
through exclusive brand outlets as well as more than 1500 multi-brand outlets. In 2001, ITC
made its entry into branded packaged foods business and rapidly expanded the portfolio to
include confectionery, staples and snack foods segments.The company’s products are rapidly
gaining consumer franchise and have established strong market standing in this short period
of time.

ITC has leveraged its paperboard and packaging business to market branded stationery and
greeting cards.The company is also into marketing of safety matches and incense sticks,
sourced from the small-scale and cottage sector.The range of FMCG products leverage its
core strengths in marketing and distribution, brand building, supply chain management and
paperboard and packaging

: ITC has one of India's finest hotel chains under the brand name ITC-Welcomgroup with 60
hotels and approximately. 5200 rooms in India. These include heritage palaces, havelis and
resorts under the sub-brand WelcomHeritage, full service budget hotels under the brand name
Fortune, super deluxe ‘ITC Hotels’ and five star hotels under the brand ‘WelcomHotel’.
Currently 10 of the ITC-Welcomgroup hotels are marketed worldwide by the Sheraton
Corporation, which is part of Starwood Hotels & Resorts, the well-known global hospitality
chain. Choupal Saagar. It creates a platform for farmers to sell their produce as well as buy
quality products for their farm and household consumption. It provides farmers additional
services under one roof like soil testing, banking, insurance, medical facilities and restaurant.
Going forward, these malls would serve as part of the core infrastructure to support ITC's
rural distribution strategy. 10 ‘Choupal Saagars’ are now operational in the 3 states of
Madhya Pradesh, Maharashtra and Uttar Pradesh while 9 more are in an advanced stage of
construction.
 CHALLENGES FACED BY THE COMPANY

 The cigarette industry in India continues to be impacted by a discriminatory taxation

and regulatory policy framework. The steep increase in the tax rates on cigarettes,
both at the Central and at the State level, has led to the undesirable consequence of
shifting consumption to lightly taxed (bidis etc) or tax evaded tobacco products,
which constitute as much as 85% of the total tobacco consumption.
 The domestic legal cigarette industry is faced with the growing menace of illegal
cigarettes. Independent research indicates that, in India, whilst there is a fall in
volumes of ‘duty paid’ cigarettes by 4.4% during the period 2005 to 2010, the ‘duty-
not-paid’ volumes grew by 49.3% during the same period.
 India has now been recognised as one of the leading destinations for illegal cigarettes.
Attractive tax arbitrage opportunities, as a result of the high level of taxes on the legal
domestic cigarette industry in India, incentivises illegal flow of cigarettes into the
Country.
 Another dangerous outcome of the increasing volume of illicit trade is that it
encourages the entry of organised criminal syndicates, which can have serious law
and order consequences for the country.
 ITC will continue to engage with policy makers through industry associations to seek
a non-discriminatory tax and regulatory regime on tobacco products in the interest of
the Government exchequer, domestic farmer community and industry.
 It has been ITC’s strategic intent to create multiple drivers of growth by building a
portfolio of world-class businesses leveraging enterprise strengths such as consumer
insights, innovative product development, brand building, state of the art
manufacturing as well as an efficient supply chain and distribution infrastructure as
well as sustained investments in R&D.
 Given the agro-climatic nature of the tobacco growing regions which are mostly rain-
fed, the farmers get an assured income from growing tobacco and without any proven
alternative crops.
 The disproportionately high taxation on cigarettes also adversely impacts the
livelihood of famers in general and the dependent community in particular. Tobacco
farmers are important constituents of the Tobacco Industry. Nearly two hundred
thousand farmers grow tobacco in 2 southern states of India
 High excise duty on cigarettes leads to an increase in the price of cigarettes, which has
an impact on the demand for the product. As the price of the product becomes
unaffordable, consumers tend to switchover to low cost options like Bidis and illegal
cigarettes, which has been quite evident with the decline in the proportion of
cigarettes in overall tobacco consumption from 25% in early 1990’s to 15% in 2011-
12. Reduction in the demand also impacts the market prices of the farm produce.
 To cite an example, due to the steep increase in excise duty (by 360%) on non-filter
cigarettes during the Union Budget of 2008-09, non-filter cigarettes which accounted
for nearly 30% of the cigarette industry, were virtually wiped out of the markets. This
had an adverse impact on the demand for domestic tobacco. As a result of this steep
hike in tax rates, tobacco which was being used in the manufacture of non-filter
cigarettes witnessed a sharp fall in prices (over 20%) during the 2010 market season,
thereby adversely affecting the incomes of tobacco farmers.
 Disparities in cigarette taxation structures would lead to an increase in the smuggling
of cigarettes from nearby countries, which would jeopardise the prospects of the
Indian Domestic Trade and in turn the dependent farming community.

 The growth in contraband cigarettes will also lead to a decline in demand for
locally produced farm produce and will in turn impact farm prices.
 COMPANY PROFILE

ORIGIN/INCORPORATION OF THE COMPANY:

ITC Ltd is one of India's foremost private sector companies. 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.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Ltd, provides IT
services and solutions to leading global customers. ITC Infotech has carved a niche for itself
by addressing customer challenges through innovative IT solutions. 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 was incorporated on August 24, 1910 under the name Imperial Tobacco Company of
India Ltd. As the company's ownership progressively Indianised, the name of the company
was changed from Imperial Tobacco Company of India Ltd to India Tobacco Company Ltd
in the year 1970 and then to I.T.C. Ltd in the year 1974. In recognition of the company's
multi-business portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,
Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-business,
Foods, Lifestyle Retailing, Education & Stationery and Personal Care - the full stops in the
company's name were removed effective September 18, 2001. The company now stands
rechristened,ITC,Ltd.
During the year 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. In the year 1925, the company set up Packaging &
Printing business as a strategic backward integration for ITC's Cigarettes business. It is today
India's,most,sophisticated,packaging,house.

In the year 1975, the company launched its Hotels business with the acquisition of a hotel in
Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. In the year 1979, they
entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Ltd, which
today,has,become,the,market,leader,in,India.

In the year 1985, the company set up Surya Tobacco Co. in Nepal as an Indo-Nepal and
British joint venture. In the year 1990, the company acquired Tribeni Tissues Ltd, 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). In the year 1990, the
company set up the Agri Business Division for export of agri-commodities. Today, the
Division is one of India's largest exporters.

In the year 2000, the company spun off its information technology business into a wholly
owned subsidiary, ITC Infotech India Ltd, to more aggressively pursue emerging
opportunities in this area. Also, the company 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,the,year,2003.

The company also entered the Lifestyle Retailing business with the Wills Sport range of
international quality relaxed wear for men and women in the year 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.

The company forayed into the Foods business 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, the company entered the confectionery and staples segments with the launch
of the brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). Also,
the company'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.
 VISION, MISSION, GOALS & OBJECTIVES
MISSION

1. To nurture graduates to be creative, critical, innovative and ethical leaders.

2. To advance knowledge and pushing the boundaries in fashion, textiles and design.
3. To support and collaborate with fashion, textiles and design industry to achieve a
sustainable progress.
4. To apply professional knowledge for the betterment of mankind .
VISION
To be the leading institution in fashion, textiles and design education, research and
partnership
STRATEGIES

 to provide professional education covering the whole spectrum of activities in fashion

and textiles, and develop “all-round” graduates with vision and a global outlook, a
sense of social responsibility, critical and creative thinking ability
 to conduct research to create and disseminate knowledge to the academic community,
commerce, industry, society and the world at large
 to continue the review of academic programmes in fashion and textiles
 to further enhance learning and teaching in both teaching methodology and practice,
the implementation of outcome-based learning, maintain and upgrade an environment
that facilitates learning, with an aim to stimulate students’ interest in learning
 to collaborate with partners on the development of preferred continuing education in
fashion and textiles
 to become an area of excellence in fashion and textile education and research,
regionally and internationally
 to lead and enhance the development of the fashion and textile industry
ORGANIZATION STRUCTURE
COMPETITORS
PRODUCTS & SERVICES
 ACHIEVEMENTS/ REWARDS
 ITC won the prestigious Porter Prize 2017 for 'Excellence in Corporate Governance
and Integration' and for its exemplary contribution in 'Creating Shared Value

 ITC ranked 3rd amongst leading corporates in India in terms of Corporate Reputation
(Nielsen Corporate Image Monitor 2014-15

 ITC ranked as the most admired company in India in 2014 (Fortune-Hay Group
survey)

 ITC recognised amongst the Top 10 employers in India by Randstad Employer Brand
Research survey 2018.

 Sunfeast Farmlite bagged Bronze for ‘Video Craft’ in Music category at ABBY
Awards 2019.

 Essenza Di Wills wins Silver for ‘Video Craft’ in Cinematography category at ABBY
Awards 2019

 ITC Hotels was awarded the Best Luxury Hotel Chain, ITC Kohenur - Best New
Luxury Hotel (India), ITC Grand Bharat - Best Luxury Resort (India) & ITC
International Terminal Lounge, New Delhi - Best Airport Lounge by Travel+Leisure
India & South Asia at the ‘India’s Best Awards’

 ITC conferred the prestigious ‘World Business and Development Award 2012’ at the
Rio+20 UN Summit for its Social and Farm Forestry Initiatives.

 AIM Asian CSR Award by the Asian Forum on Corporate Social Responsibility