Supply chain

One of our biggest strengths is our understanding of critical control points in the leaf tobacco value chain. The ILTD supply chain is a time-tested sequence of activity-based processes from seed to smoke and involves scheduling of tobacco plantations ably supported by crop extension activities, procurement either through farm-gate or through auctions based on order mapping of various customers, aggregation, processing and inbound and outbound logistics.
Focused Crop Development: </SPAN A major differentiating factor that provides us a cutting edge over our competitors in India is our focused crop development initiatives and extension services. Working closely with the farming fraternity, we have constantly transferred technology from the lab to the land with appropriate solutions, apart from pioneering the introduction of contemporary varieties. Model villages are adopted to exhibit all scientific farming techniques and the comprehensive advantages of their adoption to farmers. Enabled by a team of agronomists, agriculture experts and development managers, the crop development initiative has gone a long way in improving the quality table of the Indian tobacco basket, including in the non-flue cured tobacco growths such as Burley and Oriental.

We recognize that combining non-invasive farming techniques and appropriate technology is crucial to sustainable agriculture and ecological balance. Sustainable soil and crop management being a core focus, we have widely propagated tray seedlings as a practice that simultaneously conserves soil nutrients and increases farm yields. Water management is a critical factor in rainfed and substantially arid regions and towards this end various projects have been actively promoted. An integrated pest management programme links counter-measures to close monitoring of pest incidence to reduce the use of chemical pesticides and all efforts have been to deploy neem-based and other organic pesticides for crop protection and to conserve soil fertility. Another focus area of our crop development has been to bring about relevant and cost-effective mechanization to suit specific macro zones. We have optimized energy consumption in Flue curing by introducing fuel-efficient Venturi furnace systems in tobacco curing barns. With the improved pipe layout and metal clad doors and roofs insulated with paddy straw, these systems reduce curing time and fuel consumption. Deploying appropriate technology that also utilizes alternative fuel, venturi furnaces supplement firewood with briquettes made of coffee or paddy husk and other agri-waste.

A team of trained managers and support staff cover the remotest of tobacco growing regions to be in constant touch with tobacco farmers and act as a vital link between the farmers and the scientists, buyers and sales team.

Sourcing the right tobaccos: Our competitive edge is in the timely delivery of quality tobaccos at a competitive price. A team of trained buyers buy the requisite quality and quantity of tobaccos on behest of customers, either through auctions (Flue Cured) or at the farm-gate (non-Flue Cured). We buy the run-of-the-crop, which is a key enabler for our scale and scope value proposition to our customer. Our seasoned buyers, with their domain knowledge and understanding, handle procurement based on customer specific product requirements. We are ably supported by a dedicated pool of suppliers, who specialize in procuring niche styles to cater to specific customer requirements. Our inventory of over 100 M. Kg. is also leveraged from time to time to meet off-season customer needs, making it possible for us to offer a variety of tobaccos all round the year.

Leaf utilization: Critical to our ability to meet and exceed customer specifications, is our leaf utilization competence. Our well-trained classification team is adept in consistently delivering homogenous blocks based on physical, chemical and smoke parameters with a sound understanding of supply demand dynamics and over all utilization requirements. A core focus area of the leaf utilization team is also to optimize operational efficiencies, to peg the cost table to a minimum. <BR< SPAN> Our in-house warehousing facilities are benchmarked to international standards for phytosanitary, hygiene and infestation control. Armed with an in-house manual HIMILO and ISO 9000 certification, we manage our customers inventory and facilitate just-in-time delivery. Our refrigerated storage facility, where temperature and humidity are digitally monitored to substantially enhance the shelf life of processed leaf tobaccos, is a unique service proposition to niche customers. Our buy-to-box systems and procedures, are contemporary conforming to all quality and service specifications. Supported by an ERP system, the movement of leaf tobacco from buy-to-box can be tracked, a key enabler towards attaining traceability.

Logistics: Logistics has been a key differentiator in the quality of supply chain solutions that we provide to the customer. Our logistics is the value chain partner for the customer and has been serving 70 destinations across 48 countries, delivering in accordance to customer specifications. This wide reach and critical volume enable us to negotiate the best prices in ocean freight. Our domain knowledge in routing is enhanced by the fact that we have the five biggest names in Maritime business as our consulting partners. Our logistics is committed to drive the philosophy of On Time in Full.

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