Overview oI ITC :-

Indian tobacco and Cigarettes is the oldest industry in India. India holds the second position in
producing tobacco in the world .Tobacco occupies a prime place in the Indian economy on account oI
its considerable contribution to the agricultural, industrial and export sectors. India is the one oI the
leading Tobacco exporting country in the world. Tobacco products are being chewed, snuIIed and
most oI the time smoked all around the world. People have been consuming tobacco products Ior
centuries. Originally Irom the Americas, since 1492 it has spread Iar and wide. Today, tobacco is
grown in over 100 countries.
Tobacco and Cigarettes:
It is important to understand smoking and smokeless tobacco. Smokeless tobacco is the one which is
used in unburned Iorm. The main types oI smokeless tobacco are snuII and chewing tobacco.
Cigarettes are the most popular type oI smoking as indeed oI all tobacco. They can be without Iilter
but must be sold with Iilter-tips they are machine made but important market consists oI Roll-Your-
Own (RYO) cigarettes. Beedies are popular in India, where eight times as many Beedies are sold as
cigarettes .No other product has stimulated demand Ior tobacco as much as the Cigarette. Until the
1870s, cigrattes were mainly rolled by hand. Today they are made by machines, which can make
hundreds iI not thousands oI sticks per minute, cigarettes have become an article oI mass
consumption. Over 80 per cent oI tobacco grown is utilized in the manuIacturing oI cigarettes.
ITC is Conglomerate Company which is the best innovative, creative Iirm in India, originated on 24
th

August in 1910 under the name oI Imperial Tobacco Company oI India Limited as private limited
company. A leased oIIice on Radha Bazar Lane, Kolkata, was the centre oI the company`s survival. In
the recognition oI the company`s multi-business portIolio consists oI wide range oI business like-
Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Packaging, Paperboards &
Specialty Papers, Agri-business, Foods, Lifestyle Retailing, Education & Stationery and Personal
Care. The Iirm`s name changed two times i.e. I.T.C. Limited in 1974 and at last to ITC Limited.
'ision of ITC:-
'To Sustain ITC`s position as one oI India`s most valuable corporations through world class
perIormance, creating growing value Ior the Indian economy and the company`s stakeholders.
Mission of ITC:-
'To enhance the wealth generating capability oI the enterprise in globalizing environment, delivering
superior and sustainable stakeholder value.


Company`s key developments:
The company`s beginnings were humble, over the years in cigarettes and tobacco Iield:
In 1953- the ITC acquired the manuIacturing business oI Cigarettes and LeaI Tobacco Businesses and
also packaging and printer business. In 1954 company renovated into Public Limited Company on
27
th
October, thereby it issuing the 5,00,000 Right shares to shareholders and 32, 90,000 no. oI equity
shares oIIered to the public. During this period, 28,04,775 equity shares was made to the Indian
Public by the three major non-resident shares holders namely Tobacco manuIactures (India)Ltd.,
Tobacco Investments Ltd., and Rothmans International Ltd. all oI UK.
In 1975 ITC Ltd purchased the net asset in India oI India LeaI Tobacco Development Co. Ltd.
(UK).In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. In
1987 the company introduced new brands namely Wills Flake Premium Iilter and Scissors Iilter. In
1995 company introduced capstan Menthol Iilter, capstan standard and Bristol standard and re-
designed Gold Flake Kings and Berkley Iilter. Additionally, Gold Flake Lights in Kingsize was
introduced into markets. ITC launched a new tobacco processing department in order to increase
tobacco production economically on site. ITC win 5.80 crores grant Irom British challenge Iund.
Cigarettes alone accounted Ior 72 to revenues and 88 oI proIits in the quarter to September 30,
2004. During this quarter, ITC had reported a net proIit oI 486 crores on net turnover oI 1738
crores.
In March 2010, ITC has launched hand rolled cigar, Armentrros, in the Indian market, these cigars
have discerning taste oI the Indian cigar specialist. rmenteros are the perIect option Ior the cigar
connoisseur. These are being sourced Irom the Dominican Republic, the largest producer oI hand
rolled cigars in the world.
Competitors for ITC:-
Majority oI the cigarettes that are produced in India comes Irom companies like ITC Ltd, Asia
Tobacco Company (ATC), Elite Tobacco, GodIrey Philips India and Jeebak Laboratories. But the
First Private Company and Leading in cigarette manuIacturing is ITC. Among those above listed
companies, GodIrey Philips India is the main competitor holding 12 oI market share. It`s brands
include stellar, Igen, Jaisalmer, Four Square, Red and White, North Pole, Cavanders, Tipper. GodIrey
Philips India Ltd is marching in Indian market with a vision as to become a leading tobacco company
and with a mission as to allow its entire people to think and act Iundamentally, widen
uncompromisingly and produce path breaking ideas and strategies to drive the company. Although
GodIrey Philip India is having a turnover oI 1800 crores, but it is less than that oI ITC. The reason
behind this company is holding a second rank in Indian market due to low popularity oI its cigarettes
in the market. GodIrey Philips India Ltd is now Iocusing on widening their business in many part oI
the world so that like ITC. ITC holds Iirst place in Indian market with sole authority only but GodIrey
Philip holds second position in the Indian market, not as single but as collaboration with other
companies.
!rocess of !roduction and service delivery in ITC:
Bangalore, Kolkata, Munger, Saharanpur are the Iour major cities in India where ITC has cigarette
production units. The cigarettes that are coming Irom this units oI production, goes into market with
diIIerent brand names like Berkeley, Bristol, Capstan, Classic ,Insignia, India Kings Gold Flake, Silk
Cut, Navy cut, Scissors and Flake. ITC is having three contract manuIacturers namely Reliable
Cigarette and Tobacco Industries Pvt. Ltd. (RCTI), Asian tobacco Company (ATC) and Hyderabad
Deccan Cigarettes Industry (HDC).
Cigarette manuIacturing involves cutting oI tobacco and stem into diIIerent blend and this process is
called as cut tobacco. As per the trading requirement, this cut tobacco is mixed with other raw
materials like soya meal, Iood grains, wheat, pulses, dried marine prawns, coIIee seeds, black pepper,
ginger seeds and other spice seeds to make the cigarettes. Division which processes tobacco is called
as PMD i.e., Primary manuIacturing Division. For making packing oI cigarettes, this tobacco is sent
to Secondary manuIacturing Division SMD. Depending upon the Iactors like cigarettes with Iilters,
non-Iilters, length, circumIerence, pack style they are categorized into various segments. Then these
Iinished cigarettes are supplied to various wholesalers and retailers.
ITC Support mechanisms:
Agri Business oI Indian Tobacco Company is the major support mechanism Ior this company. As oI
the new tobacco rates Iixed by the government, buying tobacco Irom outsource involves very high
amount oI expenditure to any company .When compared to previous year, the rate oI Tobacco per
kilo gram was raised Irom 110 to 159. So, In order to overcome this expenditure this Agri business,
which is a part oI the ITC conglomerate company serves tobacco directly to the cigarette
manuIacturing units as a means oI support with low rate.


(NIGILL I p|ercy
2009)
e-CHOU!- et`s put India first:
e-Choupal is latest division oI ITC which related to the agriculture and Iormer`s point oI view with
slogan 'et`s Put India First. It mainly concentrates on e-empowering Indian Iarmers with agenda
oI raising agricultural productivity and making the rural economy more socially inclusive.
In 2000, harnessing the empowering Iorce oI inIormation technology and its scalability, ITC launched
e-Choupal-a knowledge portal providing Iarmers with a range oI inIormation and services designed to
enable them physically talented in agricultural Iield. Today e-Choupal is a vibrant and rapidly
growing zone oI business and interaction Ior over 4 million Iarmers.
ITC launched Mission Sunehra Kal, a rural capacity building program Iostering local initiatives to
develop water and Iorest resources, open up new non-Iorm livelihoods, empower women
economically and expand primary education.
The Iollowing shows milestones e-Choupal through various development techniques:
4 million Iarmers empowered, 6,500 e-Choupals installed. 114,428 hectare greened, generating 51.48
million person-days oI employment through social & farm forestry. 56,951 hectares brought under
soil and moisture conservation through watershed development.15, 378 women members, and 1183
selI-help groups through women`s empowerment. 176 cattle development centers and 3,520 villages
covered annually through livestock development. 252,329 children covered through 2,334
supplementary learning centers through !rimary education.


ITC`S evergreen Highlights:
ITC is the biggest cigarette Company and also a conglomerate Iirm has completed 100 years oI
existence.
ITC is one oI the eight Indian companies to Iigure in Forbes A-List Ior 2004, Ieaturing 400 oI 'the
world best big companies, and also Forbes has also named ITC among Asia`s `Fab 50` and the
world`s most Reputable companies.
(ITC Ltd., 2011)
ITC is the only company in the world to be Carbon !ositive, Water !ositive & Solid Waste
recycling positive.
Best manuIacturer oI cigarettes` Ior the year 2008 & 2007 and best exporter oI cigarettes Ior 2008 and
also 5 star health and saIety rating.