UNDERSTANDING THE DISTRIBUTION SYSTEM OF L.T.C AN COMPETITIVE ANALYSIS Submitted for the partial fulfilment of the requirement for the award of POST GRADUATE DIPLOMA IN MANAGEMENT. SUBMITTED BY:- Shubham chaudhary ROLL NO: - M2012104 UNDER THE GUIDENCE OF:- SUBMITTED TO:= Ms.Nidhi phutela Asst, Professor qetela & APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, GREATER NOIDA (2012-14)PREFACE The PGDM AICTE (MBA) curriculum is so designed that we can get enough practical knowledge of business world help them to explore their skills in corporate world in future. ‘The PGDM training helps us to understand and gain knowledge about the industry and the market environment, It develops skills of analyzing and interpreting problems through application of concepts and techniques of management. Jam lucky that, | got an opportunity for making the project report on “ITC Sun feast biscuit.” | visited the various concerns for two months and | prepare my project report on the topic “UNDERSTANDINGTHEDISTRIBUTION SYSTEM OF LT.C AN COMPETITIVE ANALYSIS.” And the study is divided into various chapters to get knowledge. 1 also considered: some published material on the particular topic as well as about the concem. This helps me in boosting up my confidence and determination which will help me to face the situation in coming. years. This report is written account of what I learnt and experienced during my survey. 1 wish, those going through it will not only find it readable but also get as useful information. The main limitation of my experience was that [did not get the full and comeet information from the market, as many of the respondents did not answer to my questionnaire correctly and completely, | did a project for ITC in Haridwar. The study consists of the following chapters. introduction of ITC, study on performance of Sunfeast biscuit in tenis of their competitor, retailers and customers perception, sales analysis, distribution, and conclusion etc.ACKNOWLEDGEMENT Life of human beings is full of interaction, No one is self-sufficient by himself whenever anyone is doing some serious and important work a lot of help from the people concemed is, needed & one less specially obliged towards them, I cannot forget acknowledging them in few words as without the guidance & co-ordination of them in my project report would not have been possible. A large number of individual contributed to this project. Lam thankful to all of them for their help and encouragement. My writing in the project report has also been influenced by a number of website and standard textbooks. As for as possible, they have been fully acknowledged at the appropriate place. | express my gratitude to all of them, First of all L owe my heartfelt gratitude to my guide Prof, Ms. Nidhi phutela for his noble guidance throughout the completion of the project. T would like to extend my heartfelt thanks to Mr. Gaurav Mchandiratta, Asst, Manager of ITC Pvt. Lid., Saharanpur Branch for giving me an opportunity to work on this project. 1 would also like to thanks Mr, Mukesh pandey , Area Manager of ITC Pvt. Ltd., Haridwar for his guidance, inspiration, and constructive suggestions, which helped me in the project. 1 must also thank the management of ITC Pvt, Ltd, to provide excellent opportunity and environment to be able to pull my project through. Cooperation of the staff is also gratefully acknowledged. Last but not least, also give my sincere thanks to all the people to directly indirectly have help and encourage me in finding the way to us collecting the requisite information and completing the project effectively and timely, Shubham chaudhary AIT ~ School of Management, Greater NoidaDECLARATION I, the undersigned, hereby declare that the Project Report entitled “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF LT.C AND COMPETITIVE ANALYSIS.” written and submitted by me to the APEEJAY INSTITUTE OF TECHNOLOGY- SCHOOL OF MANAGEMENT, Greater Noida in partial fulfilment of the requirements for the award of PGDM (MBA) under the guidance of Ms. Nidhi Phutela is my original work and the conclusions drawn therein are based on the material collected by myself, SHUBHAM CHAUDHARY PLACE: - HARIDWAR Date;-CERTIFICATE This is to certify that the “UNDERSTANDING THE DISTRIBUTIONSYSTEM OF | AND COMPETITIVE ANALYSIS."is the bonafide project work done by Shubham chaudhary student of Apeejay Institute of Technology — School of Management, Greater Noida during the Summer Internship Training, in partial fulfilment of the requirements for the award of the Degree of “Post Graduate Diploma in Management” and that the project has not formed the basis for the award previously of any degree, diploma, fellowship or any similar title. To the best of my knowledge and belief the project represents independent and original work on the part of candidate under my guidance, Name and Signature of Mentor Name and Signature of DirectorContents Chapter- 1: Chapter-2:- Chapter-3:+ Chapter-4:- Chapter= 5:= Chapter 6:- Chapter- 7:+ Chapter- Chapter-9:- Page No roduction & Profile of the organization ITC PROFILE HISTORY OF ITC ORGANIZATIONAL STRUCTURE. AREA OF DIVERSIFICATION SUNFEAST PROFILE HOW ITC TURNED BUSCUITS BUSINESS, DISTRIBUTION SYSRTM OF 1.7.C Objective of the study Scope of the study Limitation of the study Major Competitors of sunfeast biscuit Research methodology and design Data presentation, Analysis, and interpretation suggestions and swot Bibliography AnnexureCHAPTER- 1 Distribution system of I.T.CCHAPTER- 2 INTRODUCTION1OO Inspiring Years 100 years. ™ ME Meee tt teem India First.INTRODUCT 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 to LTC. Limited in 1974, In regognition of the Company's muilti-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 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 LL. 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 wenerated landmarks. Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobaeeo 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 strategie backward integration for IFC'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. [TC chose the hotels business for its potential t cam 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 Paperbaards ainalgamiated with the Company effective March 13, 2002 and became & 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, Lid (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 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 acquited 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 Tiibeni Tissues Division (TTD). To hamess strategic and operational synergies, TTD was merged with the Bhadrachalam Paperbourds Division to form the Paperboards & Specialy 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 eovering over 4 million farmers, ITC's first rural mall, christened 'Choupal Sagar’ was inaugurated in August 2004 at Sehore. On the rural retail front, 24 ‘Choupal Saagars' are now operational 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 “Paperkraf"was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched uncer 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 “Paperkeaft” Brand, “Paperkraft” offers a diverse portfolio: in the premium executive stationery and office consumables segment. Paperkrafi 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 velaxed 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, Jokin 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 2000, TTC 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 [T-enabled services companies and has established itself’ as a key player in offshore outsourcin; providing outsourced IT solutions and services to leading global customers across key facus verticals - Manufacturing, BFS! (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- ‘oand 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 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 matchesbrands 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 parinership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeepacross range of flagrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagehampa, ITC introduced Esserza Di Wills, an exclusive range of fine fiagrances and bath & body care products for men and women in July 2003, Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men 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,ITC PROFILE ITC is one of India’s foremost private sector companies with a market capitali US $ 18 billion and a turnover of over US $ 5.1 Billion, ITC is rated among the World's Best jon of nearly Big Companies, Asia's ‘Feb, 50° and the World's Most Reputable Companies by Forbes magazine, among Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also tanks among India's top 10 *Most Valuable (Company) Brands’, in a study conducted by Brand Finance and published by the Economic Times. ITC has a diversified presence in Cigareties, 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 souree of inspiration "a commitment beyond the market". In his own words. "JTC believes that its aspiration to create enduring value for ihe nation provides the mative 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 10 enhancing the competitiveness of the larger value chain of whieh it isa 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 gamer 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 eamers (US $ 3.2 billion in the last decade), The Company's 'e-Chou pal’ 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 ease study at Harvard Business School, is expected to progressively create for ITC a huge rural distr 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 I solutions, including ¢-cnabled 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 globalizing environment to consistently reward more than 3, 68,000 sharcholders, fulfil 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Company History — ITC 1910 = On 24th August the Company was incorporated as a Private Limited Company under the name, Imperial Tobacco Co. of IndiaLtd. The Company manufacture and distribute rettes and smoking tobaccos and specialty papers including cigarette issue papers (Sole manufacturer in the country). 1953 - The Company acquired the manufacturing business of Tobacco Manufacturers (India) Ltd., and the Complementary Lithographic Printing business of Printers (India) Ltd. 1954 - The Company was converted into a Public Limited Company on 27th October. 1970 - The name of the Company was changed from the Imperial Tobacco Co of India Ltd., to India Tobacco Co. Ltd., in May. 1972 - On October Company entered into hotel business. 1973 - Company received the approval of Govt, for setting up three Processing plants, changed tol TC Lid, = ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Lid. (UR). 1979 The name of the Company's chain of hotels was changed from Welcome Hotels 10 Welcomgrnip, The company entered into a Marketing Service and Reservations Agreement with the Sheration Intemational Incorporated which was sanctioned by Govt. on 27" January.1983 ~ A new Company under the name Gujarat Hotels was incorporated under a joint venture agreement signed between the Company and Gujarat Industrial Investment Corporation. ‘This Co. had set upa 144-room hotel at Vadodara known as Welcome group Vadodara, 1987 - New brands viz., Wills Flake Premium Filter and Scissors Filter were introduced. Long- term agreements were entered into with the unions of factories located at Calcutta, Saharanpur and Munger. In Bangalore, however, working was affected by a strike for 114 days, 1988 = In May the company formed a new division called Agribusiness Division for carrying out research and development on production and distribution of high yielding cultivars with emphasis on oil seeds, marketing of edible oils in bulk and consumer packs and export of agricultural produce. + A Memorandum of Understanding was signed with the authorities to open an Indian restaurant in Odessa, U.S.S.R. - Different varieties of oilseeds under the brand name of ADARSH and cooking oil under SUNDROP were launched. - New investments were made in water and bulk liquid packaging project. The Company explored the possibility of setting up a new software development centre in Inclia with ability to access Company's customers! computers abroad through data communication Links. = A major part of the business of India Leaf Tobacco Development Co. Ltd., (U.K.) (ILTD) consisted of its operations in India where it operated as a sister concern of the Company. ILTD was a pioneer in introducing Virginia tobacco to India and over the year, developed into a highly efficient enterprise, besides being a very large exporter of tobacco, ‘The Company purchases, with effect from Ist April, 1975, the net assets in India of ILTD whereupon it became a division of the Company: 1990 ~- Refined mustard oil under the brand name REAL GOLD was introduced in the market. - On Ist April Tribeni Tissues Lid was amalgamated with the Co.1992, -¢ January there was labour unrest at Tribeni Tissues papermill which led to a lockout at the mill with effect from 27thMay, = On Sth April, ITC Global Holdings Pte. Ltd was incorporated in Singapore a wholly ‘owned trading subsidiary of the Company, - During the same period a wholly owned subsidiary ITC InfoTech Ltd, Incorporated in UK with an authorised capital of US $ 2million and paid up capital of US lakh, 1993 = The Company successfully launched Hero brand Cigarettes = Two new brands viz., ‘Classic Milds' and ‘Hero’ were launched at the premium and small- length ends respectively. 1995 ~ Company introduced CAPSTAN Menthol filter, CAPSTAN standard aid Briste standard and redesigned Gold Flake Kings and Berkley Filter, Further, Gold Flake Lights in King- size was Introduced into test markets. 1996 - The Company has launched “Classi¢ Ultra Milds' and “Wills Natural Lights’ brands during the year, ic Finance Lid, was amalgamated with ICICI Lid. 1998 - ITC has nearly 105 subsidiaries, which are involved in various kinds of operations. 1999= Tobacco gaint ITC has raised its stake in paper and paperboards subsidiary, ITC Bhadrachalam Paperboards, from 37% to $1% through a preferential allotment of equity shares. ‘This follow the allotment, by the board of IPC Bhadrachalam Paperboards, of 1,91,20,000 No. of equity shares of Rs. 10 each for cash, at an issue price of Rs. 65 per share and. 11% redeetable cuniulative-preference shares of the face value of RS100 each, for cash, at par to promoter company ITC. = ITC will set up a new tobaceo processing department (TPD) beeause the increased production will make it economical toprocess tobacco on site: - The Anaparti factory of ITC Lid - ILTD division, received the Rajiv Gandhi National Quality award for 1995, 2000 ~ ITC Infotech Ltd, the UK-based, wholly-owned subsidiary of the Company, and Compaq Computer (1) Pvt. Ltd. signed an MoU aimed at exploring business opportunities for deploying ¢-enabled solutions. = The Company has launched a projeet e-Choupal in Bhopal to Web-cnable farmers to take a beginning in agricultural ¢-trade, ~ ITC Ltd its entry into retailing business by launching branded leisurewear apparels as part of its diversification strategy into new areas, = The Company is hiving off its Infotech services businesses in India, the US and UK and merging them into a separate wholly-owned subsidiary. ~The IT division has entered into agreements with Compag and expand the IT business. - The company set up the Lifestvle Retailing Business Division, A strategie Business Unit for the greeting cards business was set up wider the Packaging and Printing Division, = ITC has launched Wills Spon, a full range of intemationally styled premium wear for men and women. = Tobacco Company ITC launched a website, billed as ‘one stop terminus! for international customers of agricultural commodities. The website, WWW.itcibd.com, will provide information on trading of key commodities. ~ The Company have set up units in the north-eastem States to avail of spec relating to Central excise duties,+ On 21th August, JTC Infotech India Limited became a wholly owned subsidiary of the company. Ansal Hotels Limited became a subsidiary of [TC Hotels Limited effective from 12th duly. = The Board of the company has recommended an employee stock option scheme. -Having carved a niche for itself by launching the first branded lifestyle apparel, Wills Sport, in Delhi in July 2000, the Lifestyle Retailing Business Division of ITC Limited has now big plans up its sleeve, 2002 - ITC, Tobacco major, has launched Aashirvaad ama making its foray into Indian ata market ~ ITC's greetings cards business and Maple Leaf have entered into Joint Venture where Maple Leaf will exclusively manufacture pop-up cards for ITC. = ITC Foods and ITC Lid, is finally foraying its way tw the Rs 1,100 crore confectionery market, The foods division which has shifted office from Kolkata to Bangalore this month has introduced its frst confectionery product, acquired brand Minto in four cities, -ITC Greeting Cards Business (ITC-GCB), has forayed into stationery products segment with the launch of Expressions PaperKraft. -ITC Limited has tken over Wills brand. ITC had to acqui before it takes Wills merchandise t America. -ITC, now moves towards match business, it has diversified into the match business to eam more revenues from non-tobacco businesses. 2003, -ITC Lid has informed to BSE that company’s Spriia brand of natural i sticks (Agarbathis) manufactured by Cottage Industries, a unit of the Sri Aurobindo Udyog Trust in Pondicherry was launched on February 21, 2003. -ITC on April 04, introduced salt in the staple segment, as part of its efforts to clock a Rs 500 crore sales in five years. Salt is the second offering from ITC Foods" staple business in the past 1Omonths, under the brand name of '‘Aashirvaad’.-Commences commercial production of paper using the environment-friendly ECF (elemental chlorine-trec) technology at its Bhadrachalam unit in Andhra Pradesh -Food wing of ITC eyes on 4 pe market share market -ITC unveils new brand of agarbaitis 2004 -ITC Food launches a range of 'eooking pastes’ under its ready-to-eat gourmet cuisine brand Kitchens of India and ready meal Aashirwad brand -Completes the process of sequiring the paperboard manufacturing facility of BILT Industrial Packaging Co Ltd. (Bipco) near Coimbatore in Tamil Nadu. The facility, renamed ‘unit Kovai’, will operate as part of the paperboards and specialty papers division of ITC, which has a unit at Bhadrachalam in Andhia Pradesh, -ITC unveils Sunfeast biscuits in Chennai ~ ITC ties up with Israeli firm for ¢-channel, 2005 - ITC Lid becomes one of the very few companies in India ta obtain the coveted Quality Management System certification ISO 9001:2000 for investor servicing, = ITC Lid wins ‘Golden Pencack Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005’. - ITC Lid signs MoU! with Tripura Government for a bamboo development programme. ~ ITC unveils new “S-in-I! agarbattis -ITC unyeils "Expressions Regalia! -ITC e-Choupal gets Development Gateway Award ITC unveils Candyman Cofitine 2006 -ITC forges alliance with Tilda for DNA-tested basmati -ITC tieseup with Mamibeni for food biz 2007 = ITCLid. Has informed that the Board of Directors of the Company at the meeting held on July 27, 2007, appointed :(i) Mr, A. Baijal, IAS (Retd.), as an Additional Director of the Company, representating the Specified Undertaking of the Unit Trust of India (SUUTH), (ii) Mr. D. K, Mehrotra, Managing Director - Life Insurance Corporation of India (LIC) as an Additional Director of the Company,representing LIC, (ili) De. R. K, Kail, General Manager - National Insurance Company Limited, as an Additional Director of the Company, representing General Insurers’ (Public Sector) Association of India, (iv) Mr. P. B. Ramanujam, as an Additional Non-Executive Independent Director of the Company, and (v) Mr. S.B, Mathur, as an Additional Non-Executive Independent Director of the Comp. = ITC acquires Australian agri-biotech co. 2008 ITC Infotech signs partnership agreement with ADAM Software ITC InfoTech, a global IT services company and a fully owned subsidiary of ITC Lid. today signed a partnership agreement with ADAM Software, a leading Digital Asset Management company. ITC Infotech will provide services around ADAM Software's Digital Asset Management (DAM) platform. ITC Infotech services will include information architecture modelling and design, ADAM implementation and support, integration with enterprise applications such as portals; rights management eic, digital asset descriptive metadata cataloguing and Web 2.0 based portal development serviees. With in-depth understanding of how media supply chain works, ITC Infotech is well placed to publish and distribute quality content. TTC launches eco-friendly "Paperkraft Premium Business Paper ITC recently launched "Paperkraft Premium Business Paper", an environment friendly paper whieh has been crafted by ITC using a pioneering technology, which is first of its kind in India called "Ozone Treated Elemental Chlorine Free technology" Paperkraft is a superior and environmentally friendly, multipurpose paper for office and home use, which lets you exercise your power to "Go Green", This unique product is an integral part of ITC's significant initiatives to augment natural and seare resources and has been launched in line with ITC's triple bottom line commitment to building economic, environmental and social capital for the nation.Yet another addition in ITC's ‘wide array of differentiated FMCG products, Paperkraft Premium Business Paper has been ereated by ITC to provide consumers an opportunity to partner in our efforts to mitigate the adverse impact of climate change and create a positive environmental footprint. In terms of quality, Paperkraft offers a superior value proposition since it is the Whitest and brightest 75 GSM busiiess paper manufactured in India. A proprietary chemical treatment has enabled it to become an eco friendly paper with a higher archival life, 2009 ITC's Hotel Royal Gardenia becomes the world’s largest LEED Platinum rated Green Hotel ~ «= first Hotel in India to achieve this recognition ITC's new luxury hotel in Bengaluru, the ITC Hotel Royal Gardenia was conferred the highest rating for green buildings in the world — the LEED India Platinum Rating. This recognition makes it the world’s largest platinum rated hotel and is yet another manifestation of FTC's leadership in Sustainability Practices. ITC is the only company in the world to be carbon positive, water positive and solid waste recycling positive. ‘The LEED Platinum Rating for the ITC Hotel is one greener milestone close on the heels of the ITC Green Centre in Gurgaon which was the world’s first largest green building. This Centre was chosen by the US Secretary of State Hillary Climon to announce her vision on Indo-US collaboration on Climate Change during her last visit to India, After a tour of the building she called it the "Monument to the Future”. IT'C’s exemplary commitments to green practices have also enabled its hotel in Kolkaia ~ the [TC Hotel Sonar to be the only hotel in the world to earn carbon credits. In keeping with the ITC Commitment to the “Triple Bottomline” philosophy, ITC Hotels has aspired to be an *exemplar’ in the service sector and truly provides leadership to positive environmental action ina sustainable manner, The ITC Royal Gardenia is an inclusive blend of contemporary design and international green practices, a beacon in a bustling urban environment. Built on the ethos of “Responsible Luxury” the hotel has adopted contemporary ‘Green Practices’ that hamess the element of nature in an inspired setting to deliver unique guest experiences.According to Chief Executive, ITC Hotels Division, Nakul Anand, “The ITC Royal Gardenia exemplifies ITC's vision and is perhaps the perfect example of finding common rhythm between manmade and natural environment. The challenge was to see how luxury and responsibility could be in harmony together. Thus a series of sustainable measures and practices Were embraced to ensure that elements of nature were effectively harnessed at every level inside the luxury hotel”. ITC creates mobile version of Corporate Website ITC is among the first Indian companies to launch a mobile version of its Corporate Websi -wwwiteportal mobi This unique endeavour by ITC, sims to enhance stakeholder engagement by leveraging multiple channels of communication that can deliver maximum value to Internet users, With the increasing reach of mobile phones in India and Intemet navigation rapidly becoming a.common feature on majority of cell phones, the mobile version of ITC's corporate website will offer convenience of accessing information instantly and a superior surfing experience, www iteportal. mobi can now be accessed by millions of active mobile Intemet users in the country and abroad. Optimized for fast download, the easy-to-navigate website is designed for any mobile that supports WAP2.0 and has a screen resolution of 320x240 pixels. This new initiative from ITC will not only make information search easier and relevant for the mobile intemet user but will also enable proaetive engagement with stakeholders by reaching out to them with news aleris, product and service offers. The launch of the mobile version is a strategic shift from an existing information-providing format to a proact communication mode that is more meaningful in today’s environment of rapidly evolving communication technologies. ITC Infotech launches services for seamless migration to Windows 7 in partnership with Microsoft ITC Infotech, a global IT services company and fully owned subsidiary of ITC Ltd, has launched services to help customers migrate seamlessly to the latest Windows 7. The company has partnered with Microsoft to offer services around Microsoft's Application Compatibility Framework (ACF),Mr. Jake Braly, Group Maniger ~ US BMO, Microsoft, said, “ITC Infotech has been a valued partner in the Application Compatibility PoC Program since May 2009.” ITC Infotech has developed a methodology to help customers mitigate application issues around Windows 7, through Microsoft's proven ACF framework. In association with Microsoft, ITC Infotech will work with customers in resolving compatibility issues, Some of the key business benefits of the ACF include packaged assessment, enablement through technical training and remediation of business critical applications, 2010 ITC’s Fiama Di Wills unveils the new Anti Hair Fall Shampoo The Mantra to feel young! After storming the market with the innovative transparent gel bathing bars which won the “Product of the Year’ award recently, Fiama Di Wills, ITC's personal care brand, has launched yet another i & Conditioner, in Chennai today, The new variant was unveiled by the glamorous Brand novative product for its consumers - The Anti — Hairfall Shampoo Ambassador Deepika Padukone at a high decibel launch event. The new anti hairfall Shampoo combines the goodness of Nature and Science that ensures gentle care while fighting hairfall effectively. Fiama Di Wills Anti Hairfall Shampoo promises reduced hairfall due to breakage in just three washes. The shampoo has been Jauniched in Tamil Nadu and will soon be extended to more markets. The Fiama Di Wills Anti-Hairfall Shampoo is unique as it offers consumers the goodness of Brazil Nut, found in the Amazon Forests and the effectiveness of science with the Hair restore Technology. Brazil nut, is known to seal in hair moisture giving it shine and a silky smooth texture. Italso helps renew dry and lifeless hair. The Hair Restore Technology, developed at the IFC R&D Centre, helps repair cuticles and restore the protective lipid layer to reduce further damage. This strengthens hair and reduces hair fall due to breakage. The Anti-hairfall Conditioner also enriched with Brazil Nut extracts and the hair restore technology gives best results when used with Fiama Di Wills Anti-Hairfall Shampoo.Atul Joshi, Head of Marketing, Personal Care Products Business, ITC Limited, said “Hair Fall is a serious concer for everyone and also has a severe impact on the individual's psyche a5 it adds years to one’s appearance. We are glad to present a different Anti Hairfall Shampoo that has been developed through extensive research at our R&D centre to formulate the innovative Hair Restore Technology. We are confident that consumers will definitely like the experience of the combined goodness of the exotic Brazil Nut and the Hair Restore Technology to give them the mantra to feel young! | urge the consumers to try our product and experience the difference Deepika Padukone, Brand Ambassador for Fiama Di Wills said, “fam delighted to announce the launch of the new Fiama Di Wills Anti Hair Fall Shampoo & Conditioner here in Chennai. The range has grown to introduce variety of solutions for every kind of hair and address a wide range of hair problems. I have been using Fiama Di Wills’s products since its inception and can confidently say that they are true to their promise. Beautiful hair is every woman's dream and the new shampoo with the goadness of Brazil Nut and Hair Restore Technology is designed to provide an answer to hairfall.” ITC Infotech Achieves Platinum Partner status in the Oracle(R) PartnerNetwark ITC Infotech, a global IT services & Solutions Company and a fully owned subsidiary of ITC Lid., has achieved "Platinum Partner’ status as part of the Oracle Partner Network (OPN) program. This prestigious recognition as a platinum partner is an acknowledgment of the expertise and excellence in ITC Infotech’s superior and differentiated capabilities across the entire suite of ‘Omele solutions, Mr. Tyler Prince, Group Vice President, North America Sales, Applications and Public Sector Alliances and Channels, Oracle, said, "The Oracle Partner Network program acknowledges partners that demonstrates excellence in helping our mutual customers reach their full business potential. We are happy to provide ITC Infotech with this distinction in recognition af their efforts towards administering diverse Oracle platforms and applications across global IT business environments, We look forward to engaging with ITC Infotech across a variety of industries to provide cutting-edge solutions.” ITC completes 100 years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 commemorate and pay homage to the spirit of the institution Ata special Centenary event, in Kolkata, Chairman Mr. ¥ C Deveshwar, adklressing a 29,000 strong audience of employees across the country through a webcast, said. that: “Innovation should be asource 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 cusiomer 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’ ITC Hotels becomes the greenest luxury hotel chain in the world = ANITC's lncury hotels are sow LEED® Platinum rated « All ITC’s luxury hotels have been accorded the highest rating: LEED Platinum (Leadership in Energy and Environmental Design) making it the ‘greenest luxury hotel chain in the world’. This distinction is an endorsement of ITC Hotels’ credo of “Responsible Luxury’ - an ethos that integrates world class green best practices with contemporary design elements to deliver the best of luxury in the greenest possible manner. The Responsible Luxury commitment of ITC Hotels blends elements of nature to deliver a unique value proposition to disceming guests, conscious of their responsibility to be planet positive. In addition to the wide spectrum of environment friendly measures that ITC Hotels implement, the ITC group's carbon positive, water positive and solid waste recycling positive status ensures that a guest’s stay at any of its luxury hotels contributes to a lower carbon footprint.ITC Hotels’ commitment to Responsible Luxury has given it the unique distinction of being the greenest luxury hospitality chain in the world. Today, all ‘ITC Hotels’- ITC Maurya, New Delhi; ITC Maratha; Mumbai; ITC Grand Central, Mumbai; ITC Sonar, Kolkata; ITC Windsor, Bengaluru; *ITC Gardenia, Bengaluru; ITC Kakatiya, Hyderabad and ITC Mughal, Agra are rated LEED Platinum by the U.S, Green Building Council (USGBC), for their commitment to perform to the highest standards of energy, water and waste efficiency and continuing to provide inspiration to the Green Building movement in India, (*Rated LEED Platinum by Indian Green Building Council-IGBC) Commenting on the distinction, Nakul Anand, Executive Director, ITC Ltd, ‘This coveted feat uniquely positions ITC as the first hotel chain in the world to have all its premium luxury hotels accorded the highest rating: LEED Platioum by USGBC. It exemplifies the credo of ‘Responsible Luxury’ adopted by ITC’s Hotels Division — delivering globally benchmarked quality, services and luxury in the greenest possible manner." 2011 Government of India honours ITC Hotels with ‘Best Employer’ National Award for Empowerment of Persons with Disabilities ‘The Government of India, Ministry of Social Justice and Empowerment has conferred ITC Hotels with the 2011*Best Employer* National Award for Empowerment of Persons with Disabilities, The award was presented by Minister of Social Justice and Empowerment, Shri Mukul Wasnik, in recognition of ITC's philosophy of an ‘equal opportunities’ employer in keeping with its policy to ensure respect for Human’s Rights and Prevention of Discrimination at Workplace. Dipak Haksar, Chief Operating Officer, [TC Hotels received the award at a ceremony held at Vigyan Bhawan in New Delhi on December 3, 2011. ITC Hotels” human resources approach, in keeping with ITC's core values, promotes diversity and offers equality of opportunity to all employees fostering meritocracy in the organisation. It acknowledges that every individual brings a different and unique set of perspectives and capabilities to the team. A discrimination-free workplace for employees provides the environment in which diverse talents can bloom and be nurtured. This is achieved by ensuring that a non-diserimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices.2012 AIMA confers the Business Leader of the Year Award on Mr Y C Deveshwar, Chairman ITC For over 5 million people, many of whom represent the poorest in Rural India. His vision to make ITC a global exemplar in Sustainability practices has led ITC to become the only company in the world, of comparable size to be “carbon positive’, ‘water positive’ and “solid waste reeycling positive’, Mr Deveshwar's commitment to put Country before Corporation has not only inspired innovative business models that contribute meaningfully to societal development, but has also led to the creation of world-class Indian brands across ITC's businesses, Earlier, Mr Deveshwar was honoured with one of the highest civilian awards- the Padma Bhushan by the Government of India in 2011, Amongst several other awards and recognitions during his distinguished career, he has also been honoured with the Global Leadership Award by the US-India Business Council of the US Chamber of The All India Management Association (AIMA), India’s apex body of professional management today conferred its Business Leader of the Year Award on Mr ¥ C Deveshwar, Chairman, ITC Limited at a function held this evening in New Delhi to commemorate the AIMA Managing India Awards 201 Fiama Di Wills Men pioneers a new trend. Unveils the Fiama Di Wills Men website in a first-of-its-kind web debud in Indi ““Innovation" is the foundation of all initiatives at Fiama Di Wills leading tw creation of innovative products and engaging brand experiences. It manifests in ITC's leading personal care brand Fiama Di Wills continuous strives to create hallmarks of consumer trust through its range of unique bath care products and brand experiences.ITC in Saharanpur ORGANIATION STRUCTURE Branch Manager ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER (FOOD) (pep) (CIGARATTE) 4 AM (AREA MANAGER) AE AE(AREA EXECUTIVE)Area of diversification ITC has transformed itself from a leading cigarette manufacturer to an umbrella group that offers a diversified product mix to enhance its brand image and reduce dependency on tobacco related produets, It has forayed into the hospitality service industry and has become a major player in the hotels segment. Its position in the FMCG (fast moving consumer goods) business is also on a growth curve; especially its confectionery and biscuits which are slated to achieve the top ranks among its peers. It has made heavy investments to strengthen its IT (information technology) segment and to. compete with the big players like Infosys and Wipro, Although the ITC group is marketing its image as an ideal corporate citizen and a company that takes its social responsibility seriously, it still earns 80% of revenues from selling cigarettes and other tobacco related produets. The major areas in which ITC has diversified are: FMCG Cigarettes Food Lifestyle Retailing Greetings and stationer Safety Matches Incense sticks Hotels Paperboards and Packaging Paperboards and specialty paper packaging Agri-Business Agri- exports E- choupal Information Technology‘C in FMCG Sector 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, NayyCul, 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, The Company has been able to build on 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 therefare 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 aititudes 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- yours won solutions. In west Asia,ITC has become a key player in the GCC markets through growing volumesofitsbrands. ITC’s cigareties are produced in its state-of-the-art factories at Bengaluru, munger, Saharanpur and Kolkata, These factories are known for their high level of quality, contemporary technology and work environment.Foods Ready to Eat: Keeping alive long forgotten culinary traditions, ‘Kitchens of India” presents its range of ready-to-eat cuisines, Each one of these legendary delicacies has been ereated by Master Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the ‘ages, from one generation to the next Bukhara Bukhara, a village in Uzbekistan, was a meeting place for the traders from Asia and Europe. It was also a spot on the fabled Silk Route, a passage commonly used by traders, scholars and nomads. It was on this route that the unique Bukhara style of cooking was born, The Master Chefs of ITC Hotels have whipped up the delectable bite into history with this cuisine from the North-West Frontier Province with a masterpiece like dal Bukhara. Dal Bukhara Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered with prized indian spices overa coal fire, for long hours on end, Sunfeast (Biscuits) In 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits, Sunfeast’s brand essence, "Spread the Smile" connotes happiness, contentment, satisfaction, and pleasure. The mascot sunny reinforces the emotional aspects of the brand, In span of 6 year sunfeast has launched many new variants and has its presence in almost all types of biscuit categories. Sunfeast immediately established itself as a provider of innovative and distinctive products ~ Sunfeast. Marie was launched in an innovative orange flavour and the 'Sunfeast Dream Cream’ range includes new flavours as well as flavour enhancers. The Sunfeast Dream Cream range is currently available in 8 variants, The Company has also introduced ‘Sunfeast Dark Fantasy’, a dark chocolate and vanilla cream offering for the premium segment s markets, Riding on the success of its initial offering, TC also entered the milk biscuit category withSunféast milk magic biscuit, Apart from milk which helps mental growth, these biscuit also contain the ~—fimest’ «quality = wheat_~—adding physical. «growth, In the last two years, the Sunfeast biscuits portfolio has been enhanced to include salted crackers and cookies. The ‘Sun feast Snack' salted crackers are available in 2 unique variants — ‘Chilli Flakes’ and ‘Classic Salted’, Sunfeast’s latest offering, ‘Sunfeast Special” biscuits are also available in select markets. The Sunfeast Special range currently includes cookies in two variants~ Butter and Cashew, as well as cream biscuils in two variants ~ Choco: and Orange. The sunfeast product portfolio has been fiurther expanded to include healthy snacks option, Sunfeast pasta treat is whole wheat based instant pasta for children After a tremendous success of the 4 initial flavours, the instant pasta range has been expended with two new exciting flavours — pizza, and chicken. The pasta segment was further expanded with the launch of sunfeast benne vita in 4 innovative variants, Confectionary:= ITC currently has two brands in the confectionery segment -"mint-o' and ‘Candy man’. Mint-o' was acquired by ITC from Candico in March 2002, ITC re-launched the compressed mint offering, across all major markets in India, with new and improved product and. packaging, Available in the regular mint flavour with added blue specks to enhance consumer experience, mint-o is also offered in innovative ‘Orange mint’ and "Lemon mint’ flavours. ‘mint-o! js available in two sizes ~ rolls of 20 and 6, capturing the international essence of ‘youthful cool’ ITC launched the ‘Candy man’ range of confectioneries in August 2002, Led by the ‘Candy man Fruitee Fun’ range of assorted fruit flavours (Wild Banana’, ‘Pineapple Punch’, ‘Orange Josh’ and "Mango Delite’), the ‘Candy man’ portfolio now includes deposited candy products like’Candy man Butterscotch Licks’ and ‘Candyman Eclairs' (Choco flavoured as well as Vanilla Cream centre inside a Butterscotch outer shell), The coffee toffee segment also saw the successful launch of ‘Candyman Cofitino’ in November 2005, Two new products — ‘Candyman Natkhat Mango’ and ‘Candyman Maha Mango! were launched recently. The’Candyman’ range of confectionery largeted at ‘fun-filled, naughty kids’ who seek a delightful candy experience through a range of candy types and flavours.Bingo. ITC's new snacks brand Bingo! Marks the company’s foray into the fast growing branded snacks segment. The launch of Bingo! Represent ITC fifth major line of foods business after highly successful staples, biscuit, Ready to eat and confectionary business, The launch of Bingo! is symbolic of ITCs* distinct approach of introducing innovative and differentiated products ina largely undifferentiated market place, ‘The initial offerings from Bingo! include an array of products in both Potato Chips & Finger Snacks segment. The Potato Chips offerings comprise four innovative variants inspired by the stacking habits of different parts of the country as well as masala, salted and tomoto flavors. Additionally, a south- inspired dairy option has also been introduced under the potato chips offering. ITC in Agricultural Industry ITC's Intemational Business Division (IBD) 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 Foodgrains ~ 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 fruit, organie fruit, Fresh fruits Coffee & Spices ~ coffee, Black pepper, Chilly, Turmeric, Ginger, Celery, and other sced spices. Although one of the relatively younger business divisions of ITC, it has, in a short span established itself as a first-choice supply chain partner of several leading international customers. Its major customers include Cargill, marubeni, Toepfer, among others, whe source agriculture commodities and food produets from India, Its customer relationship management has enabled it to achieve a very high reputation for quality, reliability and value added services.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 [TC to build a highly cost effective procurement system, ITC has made significant investments in ened ‘e-Choupal’, ITC's web plan for the farmer centres around providing internet kiosks in villages. Farmer use this technology infrastructure to access on- line information from ITC's farmer friendly website, Data aecess by the farmers related to the weather, crop condition, best practices in farming, ruling international prices and a host of other relevant information. Currently, the ‘e-Choupal’ website - www.echoupal.com - provides information to farmers across the ning States of Madhya Pradesh, Haryana, Uttaranchal, Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala, ITC plans to extend the 'e-Choupal’ t0 cover 10 million farmers across 100,000 villages covering 1S Indian states. ITC's International Business Division, one of India’s largest exporters of agricultural commodities, has conceived ¢-Choupal as a more efficient supply chain aimed at delivering value to its customers around the world on a sustainable basis. STRATEGIES OF ITC ITC is a board-managed professional company, committed to ereating endl shareholder and for the nation. It has a rich organizational culture rooted respect for people and belief in empowerment, Its philosophy of all-round value creation is backed by strong corporate governance policies and systems, * Create mult drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. ITC’s corporate strategies are * Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology * Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality, + Ensure that each of its businesses is world class and internationally competitive. +Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and capabilities residing in ITC's various businesses * Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. + Continuously strengthen and refine Corporate Governance Processes and systems to catalyses the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control accountability, Sustain IC's position as one of India’s most valuable corporations through world class performance, creating growing value for the Indian economy and the Company's stakeholders To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value Sun feast profile Snack foods Sunfeast In July 2003, ITC forayed into the Biscuits market with the Sunfeast range of Glucose, Marie and Cream Biscuits, Sunfeast’s brand essence, "Spread the Smile” connotes happiness, contentment, satisfaction and pleasure. The mascot Sunny reinforces the emotional aspects of the brand, In a span of 6 years Sunfeast has launched many new varieties and has its presence in almost all types of biscuit categories. Sunfeast Milky Magic Packed with goodness of milk these deliciously nutritious erisp and crunchy biscuits are a favourite among mothers and kids. Milky Magic has the ‘power of 2’ - A. perfect balance of energy that aids physical strength and mental ability. These biscuits strike the right balance of milk and wheat which helps in an all round development and nurturing of the child,Sun feast Marie ‘Sun feast Marie Light: ‘This ideal teatime biscuit is made from the finest quality wheat high in fibre and keeps one light and healthy through the day. Orange Marie: Ithas the distinction of being one of the iiost sticcessful innovative Maric biscuits and is liked by one and all. Sun feast Golden Bakery Sunfeast Golden Bakery is a premium cookie on an innovative and differentiated platform Launched nationally in March 2008, these cookies are made from the recipes crafted by the master bakers of ITC Hotels and are slowly baked in the traditional way till they are golden brown and develop the crispy broken crust texture. The Sunfeast Golden Bakery cookies are available in three distinet flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. ‘These products are designed to give consumers a rich & truty indulgent experience. Sun feast Dark Fantasy Inspired by the Master Chefs of ITC hotels, it is the richest of chocolate vanilla biscuits. These biscuits are created using carefully chosen premium ingredients for a sensory experience unlike any other. Dark Fantasy is more than a biscuit; it’s a luxurious mix of aromatic cocoa and vanilla, Sun feast Glucose For those light hunger pangs, a wholesome & nutritious choice as these golden brown biscuits is made from the best quality wheat, Sunfeast Glucose biscuits are ideal not just for kids but adults too. Sun feast Dream CreamA truly scrumptious range of cream biscuits that have become an instant hit with children ITC’s chefs have put their legendary skills imto these biseuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy flavor linger on, Strawberry Cream Bourbon The first of its kind cream biscuit with a special delight for all those chocolate special strawberry flavor erystals that will lovers. ‘Orange Cream & Butterscotch Cream Experience a tangy twist in biscuits with Another first, the taste of ice-crea Orange cream cream biscuits. Mango Cream & Elaichi Cream A special summer flavour cream biscuits Taste the queen of spices in cream for all those who love the king of fruits biscuits, Sunfeast Snacky Bigger than most others in the salted biscuit category, Snacky is light and erispy like no other. From kids to adults, it’s the quintessential ‘Family Biscuit”, Available im two variants, Classie salted and Chilli flakes - the very first of its kind in India. Sunfeast sweet 'n salt ‘These thin and crisp biscuits come with a distinctive sundry taste, that of salt and sweetness. A bite into one of these one keeps wondering about its taste! Sunfeast Nice These are crisp coconut biscuits showered with sugar crystals. The crisp sugary sweetness will just go on to make all those nice moments niSunfeast Benne Vita Flaxseed Biseuits If Benne Vita in italian stands for ‘Good Life’, then Benne Vita Flaxseed biscuits just make the good life better. The Flaxseed content in these protein and mineral enriched biscuits are rich source of Omega [II acids that helps control cholesterol. Flaxseed is the richest plant soutee of these essential Omega-3 Fatty Acids, It is also rich in dietary fibre, proteins, calcium and other minerals to maintain healthy heart and good gut health. Sunfeast Special ITC Sunfeast presents a range of Special cookies and creams, Special Cookies: Made with best quality wheat, cashew and butter, Sunfeast Special cookies are baked with real butter and the finest ingredients to give a mouth-watering treat that makes every moment special, Available int Cushew/ Butter/ Coconut. Special Creams: Delicious value for money cream biscuits with a thick layer of cream sand two biscuits. Available in Orange and Chocolate variants. Sunfeast Pasta The Sunfeast produet portfolio. was expanded in early 2003 to include healthy snacking options as. well, Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced asa healthy snacking option for children and young adults. Afer the tremendous suecess of the 4 initial Flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting favours - Pizza style, Chicken and Tangy Tomato,How ITC turned biscuits business around. Biscuits and tea in the moming were a routine. So were the key market players and their favourite products, The two major players Britannia [Get Quote] and Parle were busy biting of chunks of the national market among themselves, with a host of smaller brands in various regions, While the business was still very competitive, there wasn't anything groundbreaking, In 2003 with ITC fotaying into the segment, a lot of that changed, AL that time, Britannia and Parle held, between them over 82 per cent of the market in value terms. The rest too was firmly held by smaller players like Priya Gold whieh had a strong presence in the north. So, in essence, the market already had strong well entrenched players. So how could a late entrant like ITC make its mark? Six years down the line, however, things have changed a lot, It is. a classi¢ story of the hare and the tortoise, While it is far from winning the race, slowly and steadily, the tortoise is gaining ground, The late entrant is already on the podium in the third place with as much as 7 per cent of the market in terms of value, "ITC made hay when the sun wasn't shining," says a consultant who's been tracking the industry for a long time. But first, why did ITC train its eve on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple, "We decided to enter the foods segment because it's a Rs $50,000 crore (Rs billion) market in India. But only 6 per cent of this is branded and packuged. In developed markets, nearly 95 per cént of the food market is branded and packaged, So there was lot of scope for a branded player In foods, biscuits was tempting. The Rs 4,000-crore (Rs billion) Indian biscuits market has grown at 12-14 per cent year-on-year, Then, there was a business synergy. ITC was already value-udding to wheat with its branded atta presence, By entering the biscuits segment, it could also improve its bottomline further, But despite the fast growth rates, the biscuits industry was not all rosy. Over the years, even giants like Hindustan Lever had failed. For instance, HLL which had flirted with biscuits under the Max brand exited in 2005. But ITC's Sunfeast has a different story to tell so far, the strategist looks at the gameplan of a Jate entrant and how the biscuits industry has responded.New recipe Before entering the segment, ITC dug into market research, Research revealed that the category had gaps which ITC could settle into. Findings revealed that consumers wished to taste new and innovative products, That was precisely what the competition had not done in a big way. Says Naware, "The biscuits industry had witnessed little innovation; Glucose was Glucose and Marie was still Marie." The company decided that this could be its biggest point of attack, In 2003, ITC launched Sunfeast with six ranges, But it was a calculated risk, ITC stuck to category favourites like Glucose, Maric and Bourbon cream Along with that, it also launched innovations such as orange-flavoured Marie, Marie light and butterscotch-flavoured cream biscuits. In 2004, Sunfeast followed this up with the launch of Sunfeast Milky Magie, More recently, it also has launched the Sunfeast Snacky and Sunfeast Golden Bakes. Analysts believe that just because Sunfeast was a new brand, helped matters, Says a consultant, “The biscuits industry had not witnessed any major product innovation in years. Consumers were just waiting for something new, something fresh, whea Sunfeast happened.” Even the competition had not made things better. Between 2000 and 2005 neither Parle nor Britannia launched any major new product, Yes, Britannia did re-launch its Tiger brand in 2005. But Britannia claims that it is looking at more than just products, Richa Arora, general manager and head of marketing and innovations, Britannia Industries, says, "We are not just looking at new products, but tapping newer opportunities -- such as different occasions as well as out-of-home eonsumptions." In 2005, before Diwali, Britannia launched Occasions - boxes of assorted biscuits priced between Rs 50 and Rs 200 -- which the company claims has been very successful. In 2006, however, the industry has seen a flurry of innovations from the big two, Digestive Marie -» was launched by Parle in early February 2006, Britannia launched its new double= flavoured Mariegold and 30-30 Chakkar. And Parle is all set to launch at least twa new products before the end of this year.Distribution maze I's common knowledge, that for FMCG products, distribution channels are very important, Says Pravin Kulkarni, general manager, marketing, Parle Products, "For biscuits, distribution and visibility are extremely important as it's partly a impulse purchase product." And in biscuits, setting up a distribution channel is anything but easy, Consider this. Priya Gold, which entered the western region in 2000, is struggling to find its feet even eight years later. However, in this regard, Sunfeast has been fortunate: thanks to its tobacco business, ITC already had @ good understanding of distribution channels, The company used its existing network of convenience stores = the company's name for the hole-inethe-wall pan-beedi shops -- for Sunfeast, Not content with the existing resources, the company also looked at grocery stores and other retail formats, ‘The company says the brand is now available ii nearly 1.8 million outiets, Britannia claims it has a superior distribution clout with its presence in nearly 3.3 million outlets. Parle, the seasoned player itself, says it is available in 1.5 million outlets. Sunfeast's next step was to step up its branding and promotion. Ad thrust In August 2003, a month after its launch, the company undertook a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds = riding behind buses, blocking television spots, booking that comer space in your favourite newspaper and soon, Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels. At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself. In April 2005, Sunfeast launched its major carspaign, It signed on Hindi film aetor, Shah Rukh Khan as its brand ambassador. In the same year, as the official sponsor of the WTA tennis championship ~ titled the Sunfieast Open = the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it, But that's not all, For promotions in southern states, Sunfeast has signed ‘Tamil super star Surya as a brand ambassador.Analysts say that ITC's deep packets have helped Sunfeast in many ways. ‘The company claims that it has been spending 35-40 per cent of its tumover from the biscuits segment on advertising and promotions. Going by that number, ITCs annual marketing spends are estimated to be in the region of about Rs 115-120 erore (Rs billion), Until last year, Priya Gold spent close to Rs 45-50 erore (Rs billion), nearly 10 per cent of its turnover on marketing, Even market leader Britannia with spends of Rs 100 crore (Rs billion) (2004-05) spends about 10 per cent of sales on marketing. But Arora says that the figure will increase substantially in 2006-07. ITC is elearly among the largest spender on ads and promotions in the biscuits category. Analysts predict that these figures are all set to rise this year, But industry experts aren't impressed. Says a consuliant, "Although Sunfeast's Shah Rukh Khan Association is imeresting, it is yet to do something groundbreaking, like Britannia khao world cup jhao or the Lagaan promotion for that matter.” Pricing models ‘The biscuits industry now has two clear models. Parle products play the low price game at all varieties of biscuits from glucose to cream, Essentially, Parle plays @ high volume, low margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in cream variants and volumes from the Mari¢ and Glucose segments. For instance, cream biscuits ftom both Britannia and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs $ for its eream variants, Except for Hide & Seek, all of Parle’s products lie in the price range between Rs 4 and Rs 6 for 100 gram packs. To be fair, in Glucose and Marie, the companies have little choice. As there is little differemtiation, constimers are extremely price sensitive, But these segments are important, Marie and the popular glucose varieties make up for nearly 58 per cent of the Rs 4,000 crore (Rs billion) biscuits segment ~ a significant Rs 2,200 crore (Rs billion). Says Sunil Alagh, chairman, SKA Advisors, and former CEO of Britannia Industries, "the biscuit consumer is willing to pay more only when he sees a clearly differentiated product. Hence companies have little choice in terms of pricing." No wonder all the Glucose and Marie variants straddle price points of Rs 4-6 (for 100 grams)Key challenges Back in 2003, nobody thought Sunfeast would have consumers eating out of its hands. Says Naware, "Seven pet cent in less than three years is something that we could have only dreamt about.” Importantly, industry barometer AC Nielsen: has indicated that both Parle and Britannia are losing market shares, According to the AC Nielsen retail sales audit in March 2006, both Britannia and Parle have fost volumes, Britannia’s shares have dropped from 35.8 per cent in 2004-05 to 30.5 pet cent in May 2006 (volumes), Parle's shares have also dropped from 42.2 to 38.4 per cent in the same period. Even Priya Gold has seen a minor dip from 6.4 per cent to 5 per cent, ITC's Sunfeast has been a big gainer with its shase increasing from 2.7 to 6.7 per cent, In terms of value, Britannia leads the market with 37 per cent market share, followed by Parle’s 31.3 per cent and ITC's 6.3 per cent, Nevertheless, the gap is still wide, Sunfeast still has a long way to go. But what can the bigger players do? Alagh has an interesting observation, Says he, "Biscuits have always been a low margin, high volume game. Both Britannia and Parle have very high volumes afford to lower their margins.” A potential afier-effect? Sunfeast too may have to drop its prices to be in the reckoning and this will squeeze its margin even lower. While the full game is yet to be played outfor the moment the sun seems to be shining an Sunfeast.CHAPTER- 3 RESEARCH METHODOLOGY OBJECTIVE, SCOPE & LIMITATIONRESEARCH METHODOLOGY This chapter describes the methodology of the study, This project is based on information collected from primary sources. After the detailed study, an attempt has been made to present comprehensive analysis of performance of ITC sunfeast biscuit versus britinnia and parle, consumed by the people, The data had been used to cover various aspects like consumption, retailer's preference und retailer's satisfaction, regarding Sunfeast Britinnia and Parle. In collecting requisite data and information regarding the topic selected, | went to the retailers of hatidwar and collected the data, Survey design: The study is a cross sectional study because the data were collected al a single point of time For the purpose of present study 2 related sample of population was selected on the basis of convenience, Sample Size and Design: ‘A sample of 100outlet was taken on the basis of convenience. The retailers were contacted on the basis of random sampling Research Period: Research work is only carried for 2 of 3 weeks, Research Instrument: This work is carried out through selfadministered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices,Data Collection: The data, which is collected for the purpose of study, is divided into 2 bases: Primary Source: The primary data comprises information survey of “UNDERSTANDINGTHESALE SYSTEM OF I-T.C ANCOMEPARITIVE ANALYSIS OF SUNFEAST BISCUIT, BRITANNIA & PARLE”. The data has been collected direetly from respondent with the help of structured questionnaires. Secondary souree: the secondary data was collected from internet and reference from library. Data Analysis: The data is analyzed on the basis of suitable tables by using mathematical techniques. The technique that Ihave used is bar graphs.Object of the project Defining the objectives is the most crucial part of the research. If the objectives are not clear the researcher cannot identify the problem and thus cannot find a way of the problem. This project is based on the study of relative performance towards ITC sunfeast, Britani and parle biscuits, Objectives of the study a 4. To study the company (ITC LTD) profile, product line, and SKUs of Sunfeast biscuits To study the relative performance of Sunfeast versus Britannia and Parle, To study the visibility, supply, distribution channel, promotional activities, of Sunfeast in market }. To study the retailer's preferences, margin, produet awareness and perception. 5. To know about the organizational hierarchy of ITC LTD.Scope of the study As learning is a human activity and is as natural, ax breathing. Despite of the fact that learning is all pervasive in our lives, psychdlogists do not agree on how learning takes place How individuals learn is a matter of interest to marketers. They make aware to the customer about their product, quality, benefits and promotional activities. They want to teach retailers in their roles as their roles as consumers. They want retailers to learn about their products, product attributes, potential consumers benefit, how to use, maintain or even dispose of the product and new ways of behaving that will satisfynot only the consumer's needs, but the marketer's objectives ‘The scope of my study restricts itself to the analysis of the visibility, supply, distribution channel, promotional. There are many other brands of biscuit available but my study is imited to three major players of buscuit leaving behind the others, The scope of my study is also restricts itself to Haridwar region only,Limitations of the study In attempt to make this project authentic and reliable, every possible aspect of the topic was kept in mind, Nevertheless, despite of fact constraints were at play during this project. The main limitations are as fellow: 1. Due to limitation of time only few outlet were selected for the study. So the sample of retailers was not enough to generalize the finding of the study. 2. The main source of data for the study was primary data with the help of self-administered questionnaires, Hence, the chances of unbiased information are less, 3. People were hesitant to disclose the true facts, 4, The chance of biased response cannot be eliminated though,CHAPTER- 4 DISTRIBUTION SYSTEM OF ITCDISTRIBUTION CHANNEL OF ITC MANNUFACTURING PLANT ‘WHOLESELLER CONSUMER RETAILERDISTRIBUTION CHANNEL OF ITC ITC provides products and services of superior quality and value by soureing its technologies, equipment and inputs from reputed international and Indian manufacturers and suppliers. Common values, relating to human rights performance, are shared across the entire supply chain because ITC is committed to the importance of a socially responsible and accountable supply hain, As a large and multi-product enterprise whose products are benchmarked nationally and internationally, ITC's main supply chains can be grouped as follows: For all its operations, technology, machinery and equipment are sourced from reputed and globally benchmarked suppliers/vendors who are expected to follow intemationally accepted norms and standards on human rights. ITC's major businesses are vertically integrated across several Divisions. A substantial part ofthe supply chain is therefore internal through strategic backward linkages. Common values relating to human rights performance are shared across this supply chain, Being a major agric-based company, the agriculture sector is a major supplier of inputs for its operations. The bulk of agricultural commodities are procured fram siate controlled trading platforms and the open market Avery small proportion of ITC’s business consists of supply chains comprising local vendors ‘and suppliers, The policy framework for such entities is enuneiated separately in ‘Policy to Ensure Respect for Human Rights across the Supply Chain’Operations at the WD shop WD Constitution and its Importance Every WD firm has a constitution, which is a legal document that authorizes the owner to carry out the ITC distribution business under a specified enterprise name, accompanied with a specimen signature of the Proprietor and manager. In ease, the firm has partners, they have to give a certification by the 1" of January every year. POP Register and Uses POP register is a monthly record of the quantity of different types of POPs at the WD gadown, This is prepared at the end of every month, copy is also sent to the branch, The POP register can be used to check whether the Cycle plan inputs were given. This is basically a track of the POP given and thus can be used if the POP provided was used properly at the focus markets. D and D Register The Dé D register is a record of amount and value of D&D of different brands (SKU wise), that is held by a given WD at any point of time, The WD can claim for the amount from the company. This register ean be used to track the amount of D & D, which is being received, and if itis large a corrective action may be initiated, Onge every quarter, a company official (AM) inspects the D&D. The different types of D &D have been described cutlier.Binders of the AE’ It consists of the following different parts: ¢ Industry Summary Volume This records the total food industry a detailed summary of ITC, competition and transit trade both market share and market wise. Along with the previous two years it also shows the quarterly, monthly and yearly average performance, This ean be used to keep a track over the industry as a whole and the trends---- the change in market share, growth rate by vol. ete * Total Consolidated Brand Card The brands are segmented into KSFT, RSFT, LONGS, PLAINS and BINGOS and the performance of the brand for the past 4 years (avg) and monthly analysis of each brand in the current year is recorded, This is used to track the trends brand-wise i.e, to check which brand is moving etc. If the brand sales are decreasing, we have to see to which brands have these sates shifted to and then figure out the reason .e.g. an increase in prices leading to downgrading. * Weekly sales Analysis It gives the % sales per week of the total sales of the month, Ideally for the first 3 weeks it should be 7/30*100 (23.3%) and 10°100/30 for the last week(30%) depending on whether the month is 30 or 31 day month, A deviation of 2% of the above value may be allowed. © Industry Brand Segment Analysis This is similar to the Total Consolidated Brand Card, but is done for the competition brands and is used to check their trends and the brands —wise changes in sales and try to correlate the changes with the comparable brands of ITC. * Volume by POP Groups This gives the total food industry volume in each of the different POP groups market of the section. This is used to understand and track how a particular POP group is behaving and the sales trends there--- and can be used to determine if an action specific to that POP ought to be taken., The performanee in the past years is also given for performance comparison..