Presented to: Priti Salvi Sandip Prajapati

Presented by: Anal Patel Sanket Gajjar Sweta Patel Gaurav Jain Rahil Shah

ITC was incorporated on August 24, 1910. ITC is One of India's foremost private companies with market capitalization of US$10 billion and turnover of US$3 billion.  Among India’s private sector companies, ITC ranks third in pre-tax profit.  It has diversified presence in cigarettes, hotels, paperboards and specialty papers, packaging, agri-business, branded apparel, packaged foods and confectionery, greeting cards and other FMCG products.
 

which contribute to the company’s revenue. .  One of India’s most valuable and respected companies. exports and socioeconomic development. superior brand-building capabilities. ITC strength that aims multiple drivers of growth anchored on its time-tested core competencies: large distribution reach. employment. effective supply chain management and acknowledged service skill in hotel business.

Vision  Sustain ITC’s position as one of India's most valuable corporations growing value for the Indian economy and company’s shareholders. . To enhance the wealth generating capability of the enterprise in a globalizing environment delivering superior and sustainable stakeholder value.

      Trusteeship Customer focus Respect for people Excellence Innovation Ethical corporate citizenship .

       Distribution network Cost control strategy Diversification of products Extensive advertising Regular introduction of new products Innovation Maintenance of freshness and hygiene .

 ITC has been influence by economic liberalization and globalization.  All products have influence each other to make governance in ITC.  Challenge and threat they adopted   To attract large investment  International governance practice .ITC has status of one of premier company with multi product portfolio from single product.  The challenge for governance is to make model that gives uniqueness of each of its business and yet strengthen the unity of company as a whole.

These freedom of management should be exercised within a framework of effective accountability. .  Management must have the executive freedom to drive a enterprise forward without undue restraints.

   Strategic supervision by board of directors Strategic management by the corporate management committee Executive management of the divisional business .

     Audit committee Compensation committee Nomination committee Investor service committee Corporate management committee .

      Cornerstone of ITC’s corporate governance Trusteeship Transparency Empowerment and accountability Control Ethical corporate citizenship .

measured in terms of increase in market capitalization and dividend. total shareholder returns. grew at a compound rate of more than 23%per annum. The company market capitalization recently touch the milestone and symbolic US$10 billion.  during 1996-2005 for instance. .

 .making it difficult for the farmer to sell his produce in the world market. the single largest information technology based intervention by a corporate entity in rural India.  The unfortunate result was inconsistent quality and uncompetitive prices.  ITC proactive solution to these problems is the echouple initiative.In earlier time infrastructure was weak .markets were unorganised and too many blood-sucking intermidiatories were there.  These pose their own challenges to improving productivity of land and quality of crops.

. E-choupal is a Hindi word which means “village meeting place”. Market is a meeting place where vendors and customers come together to de transitions. e-choupal is a virtual market place where farmers can transact directly with a processor and can realize better price for their produce.

.

   E-choupal is potentiality and efficient delivery channel for rural development. ITC accumulates information regarding weather. Its single largest information technology based intervention by corporate entity in rural India. agri-universities. . and market prices from sources like meteorological department. modern farming practices. and upload all information on to e-choupal web site.. mandies etc.

.

demand aggregation for completive prices &efficient logistics  Direct marketing channel for farm producers  owner transaction costs better value through traceability .   Relevant & real time information  commodity prices.news Customized knowledge  farm management. local weather . risk management Supply chain for farm inputs  Screened for quality.

   ITC has organized village women into microcredit group. ITC provides training to group members to handle bank accounts and understand the nuances of government development program. ITC provided venture funds that have generated hundreds of women entrepreneur. .

The company reserves one rupee out of every “classmate” note book sold towards rural development initiatives including primary education in villages.    ITC provides critical supports to schools to maximize enrolment and minimize dropouts. It provides students with uniform and books. ITC’s rural education cover 10000 children through 94 supplementary living center and support to government primary school. .

health S. .    E.safety This philosophy which recognizes the need to preserve and enrich the environment and provide a safe and healthy workplace for their employees.environment H.

 Proactively share information with business partners.  .  To provide and maintain facility. health and safety. equipment.  To ensure safe handling of the material that are classified as hazardous to health and environment. operation and working condition.dissemination of the information and provide appropriate training to enable all employees to accept individual responsibility for environment.  To instill a sense of duty in every employee towards personal safety.  reduce waste and promote recycling of materials.

featuring 400 of "the world's best big companies“  ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines  ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award.  the United Nations Development Programme (UNDP). International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF).  .Forbes A-List for 2004.

one of the highest civilian awards in the country by the Government of India in recognition of his distinguished service of a high order to the Nation. Retail Visionary of the Year from Images. Marketing Man of the Year from A&M. Manager Entrepreneur of the Year from Ernst & Young. 2010 2007 2006 The U. Business Person of the Year from UK Trade & Investment. the leading marketing magazine. India's only fashion and retail trade magazine. Honored with the Teacher's Lifetime Achievement Award. . 2006 2005 2001 1998 1996 1994 1986 Honorary Fellowship from the All India Management Association Distinguished Alumni Award from IIT.S. Delhi. Meridian Hotelier of the Year. Zurich.-India Business Council (USIBC) Award for Global Leadership. SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium.Year 2011 Award The Padma Bhushan. the UK Government organization that supports overseas businesses in that country. Inducted into the `Hall of Pride' by the 93rd Indian Science Congress.

. BAT set up another manufacturing unit in bangalore in 1912. peninsular was involved in cigarette production.British American Company(BAT) set up peninsular Tobacco company in India.    In 1905. In 1910 it set up full fledged sales organization named imperial tobacco company of india.tobacco procurement and processing.

 Due to faster growing in sales Imperial set up its third factory in UP in 1924.In july 1912 Indian Leaf Tobacco was incorporated to handle the raw material requirement.  In 1925 Imperial set up a printing factory at Munger .  By 1919 BAT had transferred its holding in peninsular and ILTC to Imperial Tobacco Company.  .  In 1928 head office in Calcutta was inaugurated.  Throughout the 1920 Imperial Tobacco Company appointed distributors and agents in various parts of the country.

Chugh.In march 1995 BAT had a press released expressing a lack of confidence in K.  BAT had shown the reason of resignation that there were financial irregularities in the company instead of shareholding issue hence ITC was surprised.  Reason was that the chugh had forcably asked BAT to increase his stake in ITC and BAT was not in favour of diversification of ITC’s.the chairmain of its indian subsidory and demanded his resignation.L.  Chug had called press conference and cleared that he would not be step down and cleared his stand that BAT was trying to increase its stake and wanted to use ITC’s funds for its own benefits and also said that ITC did not need BAT.  .

 Due to the allegations and counter allegations of the ITC-BAT in media . .image of the ITC dropped down.

Then surprisingly BAT had aggred to drop all charges against chugh ang gave him good package and offerd him as a chairman position at ITC.    Audit committee conformed charge of financial irregularities which whowever cleared chugh of all charges. Then unexpectadly chugh announced his resignation stating that the difference of opinion between him and BAT was not good for the growth of the company. . Still investigsting public are not aware of the reasons for the sudden spart and real terms of the hatch-up between BAT and chugh.

ITC got serious trouble for fera violation.ED(Enforcement Directrorate) officials arrested various Executive persons of ITC’s for interrogations under section 35 of FERA for international trading deales during 1991-1995 by ITC. . After finding evidence on 30th oct 1996 . In oct 1996 various investigation agencies had raided various ITC offices in Calcutta for FERA violation. By the Nov 1996 total 15 officials arrested including J.    Though so many global honours on ITC & its social commitment to social responciblity.Sapru and Krishen Lal Chugh .N.

image of the company got spoiled due to above issues. Inspite of good financial result of 1996-1997. .   For the first time in indian corporate history.leading to serious debat regarding the stringent FERA regulations and the need for efficient corporate governance practices in companies. The issue was discussed in both the house of parlament where MPs accused ITC of poor corporate governance practice and lack of transperancies and wanted to investigate in to the matter by department of companies affairs in the interest of shareholders.the entire board of directors of a company has been held liable for irregularities .