1) Introduction

ITC is one of India's foremost private sector companies with a market capitalisation of

nearly US $ 14 billion and a turnover of over US $ 5 billion.* ITC is rated among the

World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies

by Forbes magazine, among India's Most Respected Companies by BusinessWorld and

among India's Most Valuable Companies by Business Today. ITC ranks among India's

`10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and

published by the Economic Times. ITC also ranks among Asia's 50 best performing

companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

While ITC is an outstanding market leader in its traditional businesses of Cigarettes,

Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even

in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel,

Personal Care and Stationery.

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 source of inspiration

"a commitment beyond the market". In his own words: "ITC believes that its aspiration

to create enduring value for the nation provides the motive 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

to enhancing the competitiveness of the larger value chain of which it is a 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 garner 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 earners (US $ 3.2 billion in the last decade).

The Company's 'e-Choupal' 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 case

study at Harvard Business School, is expected to progressively create for ITC a huge

rural distribution 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 IT solutions,

including e-enabled 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 globalising

environment to consistently reward more than 3,60,000 shareholders, fulfill 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."

2) History

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco

Company of India Limited'. Its beginnings were humble. A leased office on Radha

Bazar Lane, Kolkata, was the centre of the Company's existence. The Company

celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land

situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum

of Rs 310,000. This decision of the Company was historic in more ways than one. It

was to mark the beginning of a long and eventful journey into India's future. The

Company's headquarter building, 'Virginia House', which came up on that plot of

land two years later, would go on to become one of Kolkata's most venerated

landmarks. The Company's ownership progressively Indianised, and the name of

the Company was changed to I.T.C. Limited in 1974. In recognition of the

Company's multi-business portfolio encompassing a wide range of businesses -

Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &

Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting &

Stationery - the full stops in the Company's name were removed effective

September 18, 2001. The Company now stands rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily devoted to

the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, 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 strategic backward

integration for ITC'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. ITC chose the hotels business for its potential to earn high levels of

foreign exchange, create tourism infrastructure and generate large scale direct and

indirect employment. Since then ITC's Hotels business has grown to occupy a

position of leadership, with over 100 owned and managed properties spread across

India.

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

Paperboards Limited, which today has become the market leader in India.

Bhadrachalam Paperboards amalgamated with the Company effective March 13,

2002 and became a Division of the Company, Bhadrachalam Paperboards Division.

In November 2002, this division merged with the Company's Tribeni Tissues

Division to form the Paperboards & Specialty Papers Division. ITC's paperboards'

technology, productivity, quality and manufacturing processes are comparable to

the best in the world. It has also made an immense contribution to the

development of Sarapaka, an economically backward area in the state of Andhra

Pradesh. It is directly involved in education, environmental protection and

community development. In 2004, ITC acquired the paperboard manufacturing

facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu.

The Kovai Unit allows ITC to improve customer service with reduced lead time and

a wider product range.

n 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 acquired Tribeni Tissues Limited, a Specialty paper manufacturing

company and a major supplier of tissue paper to the cigarette industry. The merged

entity was named the Tribeni Tissues Division (TTD). To harness strategic and

operational synergies, TTD was merged with the Bhadrachalam Paperboards

Division to form the Paperboards & Specialty Papers Division in November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business

Division for export of agri-commodities. The Division is today one of India's largest

exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in

2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering

over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was

inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal

Saagars' are now operatonal in the 3 states of Madhya Pradesh, Maharashtra and

Uttar Pradesh.

In 2000, ITC launched a line of high quality greeting cards under the brand name

'Expressions'. In 2002, the product range was enlarged with the introduction of Gift

wrappers, Autograph books and Slam books. In the same year, ITC also launched

'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages

and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the

company rolled out 'Classmate', a range of notebooks in the school stationery

segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of

international quality relaxed 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, John 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 2007, the Company introduced 'Miss Players'- a fashion

brand in the popular segment for the young woman.

In 2000, ITC spun off its information technology business into a wholly owned

subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging

opportunities in this area. Today ITC Infotech is one of India’s fastest growing global

IT and IT-enabled services companies and has established itself as a key player in

offshore outsourcing, providing outsourced IT solutions and services to leading

global customers across key focus verticals - Manufacturing, BFSI (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-o and Candyman confectionery and

Aashirvaad atta (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 just seven 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 matches brands 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 partnership with the cottage sector. ITC's popular agarbattis

brands include Spriha and Mangaldeep across a range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath &

body care products for men and women in July 2005. Inizio, the signature range

under Essenza Di Wills provides a comprehensive grooming regimen with distinct

lines for men (Inizio 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.

3) Meaning of Name ITC stands for “Imperial Tobacco Company” initially when it was incorporated for

the 1st time in 1924. Later on the name has been changed to “Indian Tobacco

Limited” in 1974. After that, in recognition of the Company's multi-business

portfolio encompassing a wide range of businesses - Cigarettes & Tobacco,

Hotels, Information Technology, Packaging, Paperboards & Specialty Papers,

Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full

stops in the Company's name were removed effective September 18, 2001. The

Company now stands rechristened 'ITC Limited'. There is no specific meaning of

ITC name is given on their website. But what I think is that it is the name given to

the company to signify the operation of the company. Since ITC started its

business in tobacco industry, they have chosen the name to demonstrate their

nature of business and what exactly what they want to perform.

4) Evolution of Name ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco

Company of India Limited'. ITC had a humble beginning and in the initial days it

used to operate from a leased office on Radha Bazar Lane, Kolkata. On its 16th

birthday on August 24, 1926, ITC purchased the plot of land situated at 37,

Chowringhee, (now renamed J.L. Nehru Road) Kolkata. Two years later company's

headquarter building, 'Virginia House' came on that plot. Progressively the

ownership of the company Indianised, and the name of the Company was changed

to I.T.C. Limited in 1974. In recognition of the Company's multi-business portfolio

encompassing a wide range of businesses, the full stops in the Company's name

were removed effective September 18, 2001 and the Company was rechristened as

'ITC Limited'.

5) About Logo

The logo basically showing the name of the company i.e. “Imperial Tobacco

Company” and later on “Indian Tobacco Company”. Company using the logo to

show their company name which is clearly understood from the logo.

6) Operation ITC is a board-managed professional company, committed to creating enduring

value for the shareholder and for the nation. It has a rich organisational culture

rooted in its core values of respect for people and belief in empowerment. Its

philosophy of all-round value creation is backed by strong corporate governance

policies and systems. Its main operation is related to tobacco industry of India

from which the company grab maximum revenue. Additional to this company

has its footprints in other sectors also. Starting from Hotel industry, FMCG foods,

Personal care, Agarbattis, Match box, Apparels, Papers, Greetings cards, Pens

etc. ITC is one of the top conglomerates of India and the 2nd largest exporter

from India. The main strength of ITC is their “Brand value” and “Distribution

Channel” which has its reach at all parts of the company.

7) Product Mix

Fig.: Product Mix of ITC Agri BusinessLeaf Tobacco

Agri CommoditiesHotels

FMCG: Cigarettes

Other FMCG

ITC

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, Navy Cut, 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.

All initiatives are therefore 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 attitudes 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-your-own solutions. In West Asia, ITC has

become a key player in the GCC markets through growing volumes of its brands.

ITC's cigarettes are produced in its state-of-the-art factories at Bengaluru,

Munger, Saharanpur and Kolkata. These factories are known for their high levels

of quality, contemporary technology and work environment.

FMCG Foods

ITC made its entry into the branded & packaged Foods business in August 2001

with the launch of the Kitchens of India brand. A more broad-based entry has

been made since June 2002 with brand launches in the Confectionery, Staples

and Snack Foods segments.

The packaged foods business is an ideal avenue to leverage ITC's proven

strengths in the areas of hospitality and branded cuisine, contemporary

packaging and sourcing of agricultural commodities. ITC's world famous

restaurants like the Bukhara and the Dum Pukht, nurtured by the Company's

Hotels business, demonstrate that ITC has a deep understanding of the Indian

palate and the expertise required to translate this knowledge into delightful

dining experiences for the consumer. ITC has stood for quality products for over

98 years to the Indian consumer and several of its brands are today

internationally benchmarked for quality.

The Foods business carries forward this proud tradition to deliver quality food

products to the consumer. All products of ITC's Foods business available in the

market today have been crafted based on consumer insights developed through

extensive market research. Apart from the current portfolio of products, several

new and innovative products are under development in ITC's state-of-the-art

Product Development facility located at Bengaluru.

Leadership in the Foods business requires a keen understanding of the supply

chain for agricultural produce. ITC has over the last 98 years established a very

close business relationship with the farming community in India and is currently

in the process of enhancing the Indian farmer's ability to link to global markets,

through the e-Choupal initiative, and produce the quality demanded by its

customers. This long-standing relationship is being leveraged in sourcing best

quality agricultural produce for ITC's Foods business.

The Foods business is today represented in 4 categories in the market. These are:

Ready To Eat Foods

Staples

Confectionery

Snack Foods

In order to assure consumers of the highest standards of food safety and

hygiene, ITC is engaged in assisting outsourced manufacturers in implementing

world-class hygiene standards through HACCP certification. The unwavering

commitment to internationally benchmarked quality standards enabled ITC to

rapidly gain market standing in all its 6 brands:

Kitchens of India

Aashirvaad

Sunfeast

mint-o

Candyman

Bingo!

Lifestyle Retailing ITC’s Lifestyle Retailing Business Division has established a nationwide retailing

presence through its Wills Lifestyle chain of exclusive specialty stores. Wills

Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work

wear, Wills Sport relaxed wear, Wills Clublife evening wear, fashion accessories

and Essenza Di Wills – an exclusive range of fine fragrances and bath & body care

products and Fiama Di Wills - a range of premium shampoos and shower gels.

Wills Lifestyle has also introduced Wills Signature designer wear, designed by

the leading designers of the country.

With a distinctive presence across segments at the premium end, ITC has also

established John Players as a brand that offers a complete fashion wardrobe to

the male youth of today. The recent launch of Miss Players with its range of

trendy fashion wear for young women has been a successful addition to the

youthful offering. With its brands, ITC is committed to build a dominant presence

in the apparel market through a robust portfolio of offerings.

At Wills Lifestyle, customers can browse at leisure, and shop in a relaxed and

pleasing atmosphere. The use of space is refreshing, which is reflected even in

the spacious changing rooms. Every store offers an international retailing

ambience with the extensive use of glass, steel and granite, reflecting the most

contemporary trends in store design, thereby creating a splendid backdrop for

the premium offerings.

Wills Lifestyle was named Superbrand 2009 by the Superbrands Council of India

recently. Wills Lifestyle has been twice declared 'The Most Admired Exclusive

Brand Retail Chain of the Year' at the Images Fashion Awards in 2001 & 2003 as

well as 'Most Admired Fashion Brand of the year - Fashion Forward' in 2009.

Personal Care

In line with ITC's aspiration to be India's premier FMCG company, recognised for

its world-class quality and enduring consumer trust, ITC forayed into the

Personal Care business in July 2005. In the short period since its entry, ITC has

already launched an array of brands, each of which offers a unique and superior

value proposition to discerning consumers. Anchored on extensive consumer

research and product development, ITC's personal care portfolio brings world-

class products with clearly differentiated benefits to quality-seeking consumers.

ITC's Personal Care portfolio under the 'Essenza Di Wills', 'Fiama Di Wills', 'Vivel

Di Wills' 'Vivel UltraPro', 'Vivel' and 'Superia' brands has received encouraging

consumer response and is being progressively extended nationally.

ITC's state-of-the-art manufacturing facility meets stringent requirements of

hygiene and benchmarked manufacturing practices. Contemporary technology

and the latest manufacturing processes have combined to produce distinctly

superior products which rank high on quality and consumer appeal.

Extensive insights gained by ITC through its numerous consumer engagements

have provided the platform for its R&D and Product Development teams to

develop superior, differentiated products that meet the consumer's stated and

innate needs. The product formulations use internationally recognised safe

ingredients, subjected to the highest standards of safety and performance.

Education & Stationary products

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks, followed in the year 2003 with the more popular range to augment its offering.

Today, ITC continues to blend its core capabilities to market a growing range of education and stationery products. These capabilities include,

a. Manufacturer of India’s first Ozone treated environment friendly Elemental Chlorine Free (ECF) pulp, paper and paperboard.

b. Knowledge of image processing, printing & conversion garnered from its Packaging & Printing Business.

c. Brand Building & Trade Marketing & Distribution strengths resident in its FMCG Business.

ITC’s stationery Brands are marketed as “Classmate” and “Paperkraft”, with

Classmate addressing the needs of students and Paperkraft targeted towards

college students and executives.

Classmate - India’s truly largest National brand, reaching 65,000 outlets across

the country, has over 300 variants in its range which comprises notebooks, long

books, practical books, drawing books, scrap books, reminder pads etc.

The Classmate Fun N Learn range of children books targeting pre school

learners, comprising categories like Pre School Learner, Active Minds and Read

Aloud Tales with features like Wipe n Use again, Trace & Color and Puzzles

ensure that a child's first lessons are truly enjoyable.

Classmate Invento Geometry Boxes, launched for school students comprise a

world-class precision compass and high quality plastic instruments coupled with

interesting trivia and useful information, to make geometry more fascinating for

students.

Aesthetically designed, Classmate pens offer the consumer a smoother and more

comfortable writing experience through use of ergonomic design, reducing the

effort required for writing. The initial launch comprises ball pens - Classmate

Safari and Classmate Ilet - and gel pens - Classmate Glider and Classmate

Octane.

A new entry to the Classmate portfolio is its range of HB Jet Black pencils.

Designed attractively for school kids, the pencils offer a unique advantage of

lesser lead wear out and thus, “Stay Sharper for Longer”.

The Classmate Notebook range builds in regional preferences and caters to the

requirements of All India & State Education Boards. Every Classmate notebook

carries ITC's Corporate Social Responsibility message on its back. For every four

Classmate Notebooks, ITC contributes Re. 1 to its rural development initiative

that supports, among other projects, primary education in villages.

Classmate has successfully run the “Classmate Young Author & Artist Contest”

for 5 years. The contest is a national level event going across 34 cities and getting

participation from 5000 schools.

The Paperkraft range consists of premium stationery with a wide variety for

executives to choose from. The assortment consists of notepads & multi subject

notebooks in hard, soft covers & multiple binding formats including spirals, wiros

etc.

The Paperkraft brand recently launched premium business paper – an

environment friendly multipurpose paper for office and home use. The paper has

been crafted by ITC’s Bhadrachalam unit using a pioneering technology, called

“Ozone Treated Elemental Chlorine Free technology”. Paperkraft business paper

is the whitest and brightest 75 & 70 GSM papers manufactured in India and

provides consumers an opportunity to “Go Green”.

Safety Matches As part of its strategic initiative to create multiple drivers of growth in the FMCG

sector, ITC commenced marketing safety matches sourced from the small-scale

sector. The Matches business leverages the core strengths of ITC in marketing

and distribution, brand building, supply chain management and paperboard &

packaging to offer Indian consumers high quality safety matches.

ITC’s range of Safety matches include popular brands like i Kno, Mangaldeep,

Aim, Aim Mega and Aim Metro. With differentiated product features and

innovative value additions, these brands effectively address the needs of

different consumer segments. The Aim brand is the largest selling brand of Safety

Matches in India. ITC also exports regular and premium safety matches brands to

markets such as Middle East, Africa and the USA. The successful acquisition of

Wimco Ltd. by Russell Credit Ltd., a wholly owned subsidiary of ITC has

consolidated the market standing of the Company's Matches business through

synergy benefits derived through combined portfolio of offerings, improved

servicing of proximal markets and freight optimization. Through its participation,

ITC aims to enhance the competitiveness of the small and medium scale sectors

through its complementary R&D based product development and marketing

strengths, especially the breadth and depth of the Company's trade marketing

and distribution.

Agarbattis

As part of ITC's business strategy of creating multiple drivers of growth in the

FMCG sector, the Company commenced marketing Agarbattis (incense sticks)

sourced from small-scale and cottage units in 2003. This business leverages the

core strengths of ITC in nation-wide distribution and marketing, brand building,

supply chain management, manufacture of high quality paperboards and the

creation of innovative packaging solutions to offer Indian consumers high quality

Agarbattis. With its participation in the business, ITC aims to enhance the

competitiveness of the small and medium scale sectors through its

complementary R&D based product development and strengths in trade

marketing and distribution.

Mangaldeep Agarbattis are available in a wide range of fragrances like Rose,

Jasmine, Bouquet, Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and

Mogra.

Mangaldeep Yantra is a special offering from ITC and this specially created

fragrance evokes the ambience of a temple. The premium range from ITC,

Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and are specially

hand rolled by Cottage Industries, Sri Aurobindo Ashram, Puducherry. Cottage

Industries, Puducherry, has recently been accredited with IFAT certification,

which is an internationally recognized benchmark for fair trade practices.

Mangaldeep is also available in 3-in-1 and 5-in-1 packs giving the consumer a

choice of multiple fragrances in a single pack. Mangaldeep appeals to a cross-

section of consumers with offerings at various price points. These agarbattis are

available in innovative 'Fragrance-Locked' packaging. 'Fragrance locking' is a

unique concept of packaging which retains the fragrance for a longer period and

helps in "Completing the Purity of Prayer". Mangaldeep is fast emerging as the

only national brand in an industry dominated by multiple local brands.

In line with ITC's Triple Bottom Line philosophy of every business contributing to

the nation's economic, environmental and social capital, Mangaldeep agarbattis

are manufactured by small scale and cottage units, providing livelihood

opportunities for more than 5000 people. Seven out of 10 Mangaldeep Agarbatti

manufacturing units are ISO 9000 certified. Mangaldeep ASHA (Assistance in

Social Habilitation through Agarbattis) is an ITC initiative to improve the quality

of raw agarbatti production and provide better value realization for women

rollers. Under the project, ITC has extended support to NGOs in states and like

Bihar, Tripura, Tamil Nadu, who are setting up agarbatti units, training village

women in rolling agarbattis and employing them in these units.

Expressions Aromatic Candles

o Leveraging its deep consumer insight, ITC's Agarbatti business recently

launched "Expressions" Premium Range of Aromatic Candles in India

through Wills Lifestyle Stores. Research on usage and attitude reveals a

strong linkage of candles to attributes like Romance, Decoration and

Wellness (Aromatherapy).

o The Expressions range of Aromatic candles comprises Amour - the

Romance Series, Adora - the Decor Series and Nirvana - the Spa Series.

The basis of segmentation is colour and fragrance - Red for romance,

Purple for décor and Green for wellness. The fragrance of the candles have

been specially selected are made from the finest perfumes and oils. Each

candle's fragrance, shape and design are carefully chosen with a distinct

sensation and ambience in mind. Ideal for gifting, Expressions Aromatic

Candles promise to soothe, uplift and transform.

Hotels

ITC entered the hotels business in 1975 with the acquisition of a hotel in

Chennai, which was then rechristened ITC Chola. Since then the ITC-

Welcomgroup brand has become synonymous with Indian hospitality. With over

100 hotels in more than 80 destinations, ITC-Welcomgroup has set new

standards of excellence in the hotel industry in Accommodation, Cuisine,

Environment and Guest Safety. ITC's Hotels business is one of India's finest and

fastest growing hospitality chains. ITC Hotels' commitment to delivering globally

benchmarked services, embedded in a culture deeply rooted in India's rich

tradition of hospitality, gives it a unique and distinct identity.

A leader in the premium hospitality segment, ITC Hotels have had the privilege of

hosting world leaders, Heads of State and discerning guests from across the

world and within.

ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in

the hospitality industry. It was the first to launch the idea of a 'Hotel within a

Hotel' by segmenting, customizing and branding hotel services like 'ITC One',

'Towers' and the 'Executive Club'. Each of these caters to specialized needs of the

global business traveller with unmatched quality and a range of custom-made

services.

ITC-Welcomgroup was the first to introduce branded

cuisine. Its restaurants Bukhara, Dakshin and DumPukht are

today powerful cuisine brands. ITC-Welcomgroup also

showcases international cuisine in its specialty restaurants West View and Pan

Asian.

ITC has strategically customized its hotels and appropriately categorized them to

fulfill the service and budgetary needs of travellers. ITC-Welcomgroup has an

exclusive tie-up with global partner Starwood for its top of the line premium

brand, the 'Luxury Collection'. ITC Hotels was also instrumental in bringing the

'Sheraton' brand to India, with which it enjoyed a three-decade exclusive

partnership.

ITC-Welcomgroup's properties are classified under four distinct brands:

ITC Hotels - Luxury Collection

In 2007, ITC-Welcomgroup entered a new phase in

its collaboration with Starwood Hotels & Resorts.

ITC-Welcomgroup now has an exclusive tie-up with

Starwood in bringing its premium brand, the

'Luxury Collection', to India. These are super

deluxe and premium hotels located at strategic

business and leisure locations. The seven hotels which are part of this collection

are: ITC Maurya in Delhi, ITC Maratha in Mumbai, ITC Sonar in Kolkata, ITC Grand

Central in Mumbai, ITC Windsor in Bengaluru, ITC Kakatiya in Hyderabad and ITC

Mughal in Agra.

WelcomHotels offer five-star hospitality for the

discerning business and leisure traveller. Currently

there are three hotels under this brand namely,

WelcomHotel Rama International Aurangabad,

WelcomHotel Vadodara and WelcomHotel Grand

Bay Vishakhapatnam. Four other ITC-Welcomgroup Sheraton Hotels – Sheraton

Rajputana Hotel Jaipur, Sheraton Chola Hotel Chennai and Sheraton New Delhi

offer warm, comforting services to the global traveller and a chance to connect.

Fortune Hotels offer full service properties all over

India, including smaller towns and cities, ideal for

the budget traveller. Fortune Hotels have a strong

presence in Ahmedabad, Thiruvananthapuram,

Calicut, Darjeeling, Jamshedpur, Vapi, Hyderabad,

Gurgaon, Indore, Ootacamund, Madurai, Jodhpur, Vijaywada, Chennai,

Visakhapatnam, Mahabalipuram, Kolkata, Bengaluru, Navi Mumbai, Tirupati and

Port Blair, while several more hotels are expected to be commissioned soon in

other key locations in India.

WelcomHeritage brings together a chain of

palaces, forts, havelis and resorts that offer a

unique experience. WelcomHeritage endeavours

to preserve ancient royal homes and the historical

Indian grandeur and opulence for the future Indian

generations. WelcomHeritage provides a fine

range of hotel services inside these architectural legacies present in Rajasthan,

Madhya Pradesh, Uttarakhand, Himachal Pradesh, Jammu & Kashmir, West

Bengal, Karnataka, Tamil Nadu, Punjab, Haryana, Assam, Sikkim, Meghalaya,

Arunachal Pradesh, Uttar Pradesh, Maharastra, Kerala, Andhra Pradesh and

Puducherry.

Welcom Environment

WelcomEnviron is ITC-Welcomgroup's vision for a green world. It's a multi-

faceted programme started in order to propagate environmental causes in the

cities where ITC-Welcomgroup's hotels are located. With the guiding principle of

'Reduce, Reuse and Recycle', each hotel has its own programme, encompassing

local participation, creating awareness among employees and internal

conservation.

ITC Green Centre

The ITC Green Centre in Gurgaon, the

headquarters of ITC's Hotels Business is the

physical expression of this commitment to

sustainability - Ecological, Social and Economic.

This building is one of the world's largest green

buildings with space of over 170,000 square feet and the first non-commercial

complex in the country to be awarded the United States Green Building Council-

Leadership in Energy and Environmental Design's (USGBC-LEED) platinum rating -

the highest in the order.

At ITC Green Centre, energy consumption has been reduced significantly through

design integration. The building has been designed to maximize the effect of

natural light during daytime, largely eliminating the need for artificial ones. At

the same time, the window glass, while allowing light inside, does not allow heat.

This not only keeps the office cool from inside during the day, but also decreases

the load on air-conditioners. Again, there is minimum exterior lighting to limit

night sky pollution. The water consumption has dropped by 40 per cent and, with

a water re-cycling plant, the building is now a zero water discharge building.

ITC Welcomgroup - Empowering Differently-abled people

ITC-Welcomgroup has established that if provided with an opportunity to work

and become self-sufficient, people who are differently abled can significantly

contribute to the workplace, families and the community. ITC-Welcomgroup has

taken a positive step in this direction by employing people who are differently

abled across its hotels. ITC-Welcomgroup believes that everyone should be

treated with sensitivity and empathy. The models it has created have been

effective and have succeeded in sensitising other employees to the needs of

those differently-abled. Keeping in mind their specific skills, over 100 differently

abled have been employed in diverse functions like housekeeping, teleworking,

bakery and as musicians. Special badges for the visually impaired, whistles for

hearing impaired employees to use in an emergency and sign language classes

for the staff to communicate with them are just a few examples of how ITC-

Welcomgroup has created an atmosphere of sensitivity and caring.

Paperboard and Speciality papers

ITC’s Paperboards and Specialty Papers Division is India’s largest and most

technologically advanced paper and paperboards business. ITC caters to a wide

spectrum of packaging, graphic, communication, writing, printing and specialty paper

requirements through its four world-class mills in India. Having pioneered many

speciality applications like cigarette tissues, packaging boards, aseptic cartons and

gypsum liners, ITC’s Paperboards and Specialty papers business enjoys market

leadership in the value-added paperboards segment, and also has a significant share of

the Indian paperboards market. It is also the largest Indian exporter of coated boards.

Packaging

ITC's Packaging & Printing Business is the country's largest convertor of paperboard

into packaging. It converts over 50,000 tonnes of paper and paperboard per annum

into a variety of value-added packaging solutions for the food & beverage, personal

products, cigarette, liquor, cellular phone and IT packaging industries. It has also

entered the Flexibles and Corrugated Cartons business.

The Division, which was set up in 1925 as a strategic backward integration for ITC's

Cigarettes business, is today India's most sophisticated packaging house. State-of-the-

art technology, world-class quality and a highly skilled and dedicated team have

combined to position ITC as the first-choice supplier of high value added packaging.

The Division supplies value-added packaging to the Company's Cigarettes business. Its

client list includes several well-known national and international companies like British

American Tobacco, Philip Morris International, Surya Nepal Private Limited, VST

Industries, UB Group, Nokia, Flextronics, Foxconn, FMC India Pvt Ltd., Pernod Ricard,

Allied Domecq, Whyte & Mackay, Hindustan Lever, Tata Tetley, Nestle and Reckitt

Benkiser India Limited, etc.

With all the three factories at Tiruvottiyur near Chennai, Munger in Bihar and

Haridwar in Uttarakhand certified to ISO 9001, ISO 14001 and OHSAS 18001, the

Company offers a comprehensive product range in packaging:

Flip-top boxes Display outers Shells and Slides Soft cup and strap Labels

Bundle Wraps Flap boxes Inner Frames Coupon Inserts Folding Cartons

Fluted Cartons Shoulder Boxes Pre-printed cork tipping Flexibles Packaging

ITC occupies a leadership position in cigarette and liquor packaging in India. It supplies

packaging to cover 70 billion cigarettes a year domestically, and supplies packaging for

15 billion cigarette sticks a year for the export market. It is the largest supplier of liquor

mono cartons in the country.

ITC has enhanced the value of some of the most favoured brands with superior look-

and-feel packaging, using the best raw materials and process combinations, and an in-

house pre-press Design Centre.

A Product Introduction Process team pioneers packaging innovations. The team uses a

unique process to pilot the client's packaging through its manufacturing system.

Specifications are evolved based on clients' needs. Corresponding to the specifications,

a variety of packaging solutions is then generated. The efficacy of the packaging is

tested simulating the client's factory conditions.

E-ChaupalITC's pre-eminent position as one of India's leading corporates in the agricultural sector

is based on strong and enduring farmer partnerships, that has revolutionized and

transformed the rural agricultural sector. A unique rural digital infrastructure network,

coupled with deep understanding of agricultural practices and intensive research, has

built a competitive and efficient supply chain that creates and delivers immense value

across the agricultural value chain. One of the largest exporters of agri products from

the country, ITC sources the finest of Indian Feed Ingredients, Food Grains, Edible Nuts,

Marine Products, Processed Fruits, Coffee & Spices.

ITC's Agri Business Division 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

• Food Grains - 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 Fruits,

Organic Fruit Products, Fresh Fruits

• Coffee & Spices - Coffee, Black Pepper, Chilly, Turmeric, Ginger, Celery

and other Seed Spices

Farmer empowerment through e-Choupals

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 ITC to build a

highly cost effective procurement system. ITC has

made significant investments in web-enabling the

Indian farmer. Christened 'e-Choupal', ITC's

empowerment plan for the farmer centres around providing Internet kiosks in villages.

Farmers use this technology infrastructure to access on-line information from ITC's

farmer-friendly website www.echoupal.com. Data accessed by the farmers relate to

the weather, crop conditions, best practices in farming, ruling international prices and a

host of other relevant information. e-Choupal today is the world's largest rural digital

infrastructure.

The unique e-Choupal model creates a significant two-way multi-dimensional channel

which can efficiently carry products and services into and out of rural India, while

recovering the associated costs through agri-sourcing led efficiencies. This initiative

now comprises about 6200 installations covering nearly 40,000 villages and serving

over 4 million farmers. Currently, the 'e-Choupal' website provides information to

farmers across the 10 States of Madhya Pradesh, Haryana, Uttarakhand, Uttar Pradesh,

Rajasthan, Karnataka, Maharashtra, Andhra Pradesh, Kerala and Tamil Nadu. Over the

next 5 years it is ITC's Vision to create a network of 20,000 e-Choupals, thereby

extending coverage to 100,000 villages representing one sixth of rural India.

Supporting the e-Choupal network are ITC's procurement teams, handling agents and

contemporary warehousing facilities across India, enabling its Agri Business to source

identity-preserved merchandise even at short notice. ITC's processors are handpicked,

reliable high quality outfits who ensure hygienic processing and modern packaging.

Strict quality control is exercised at each stage to preserve the natural flavour, taste

and aroma of the various agri products.

Choupal Saagar

Following the success of the e-Choupal, the

Company launched Choupal Saagar, a physical

infrastructure hub that comprises collection and

storage facilities and a unique rural hypermarket

that offers multiple services under one roof. This

landmark infrastructure, which has set new benchmarks for rural consumers also

incorporates farmer facilitation centres with services such as sourcing, training, soil

testing, health clinic, cafeteria, banking, investment services, fuel station etc. 24

'Choupal Saagars' have commenced operations in the states of Madhya Pradesh,

Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing initiative

to establish a chain of 100 Choupal Saagars in the near future.

Choupal Fresh

Choupal Fresh, ITC's fresh food wholesale and retail

initiative, leverages its extensive backward linkages

with farmers and supply chain efficiencies. It focuses

on stocking fresh horticulture produce like fresh fruits

and vegetables. Three Choupal Fresh Cash & Carry

Stores and Six Choupal Fresh retail stores are currently

operational at Hyderabad. The company has also set up a complete cold chain for

ensuring the availability of fresh products in the market, besides directly sourcing farm

fresh produce from the farmers.

Choupal Pradarshan Khet

In line with its mission of improving the quality

of life in rural India, ITC's Agri Business has

launched a flagship extension programme

called 'Choupal Pradarshan Khet' (CPK) or

demonstration plots to help farmers enhance

farm productivity by adopting agricultural best

practices. Started in 2005-06, the crop

portfolio includes soya, paddy, cotton, maize, bajra, wheat, gram, mustard, sunflower

and potato. This initiative, has covered over 70,000 hectares and has a multiplier

impact and reaches out to 1.6 million farmers.

Processed Fruits

In line with its strategy of achieving a higher order of value capture, the business also

focuses on the value added segment, steadily enhancing its basket of offerings with

several new products. These include frozen foods, IQF (individually quick frozen)

fruits, niche products like baby-food quality purees and high brix pulp and organic

purees. ITC seeks to focus on this segment and exploit the market opportunity for

tropical fruits and fruit products, where India has a natural advantage of growing the

complete range, including exotic varieties. In Processed Fruits category, ITC exports

from HACCP certified plants to Western Europe, North Africa, West Asia, Japan and

North America, a wide range of Processed Fruit products made from Mango (Alphonso,

Kesar & Totapuri), Guava, Papaya and Pomegranate. ITC is the leading Indian exporter

of Organic Fruit Products certified to European (EC 2092/91) and US (NOP) Standards.

Fresh Table Grapes & Pomegranates are sourced from ITC's EUREPGAP certified farmer

groups & retailed through prominent supermarkets like Sainsbury's and Albert Heijn in

Europe and Daiei in Japan.

Marine Products

ITC has been a significant exporter of seafood from India since 1971. It

exports frozen as well as cooked shrimps and other seafood products to

Japan, USA and Europe. Its well-known brands include Gold Ribbon,

Blue Ribbon, Aqua Kings, Aqua Bay, Aqua Feast and Peninsular.

A customer centric approach

ITC's Agri Business Division continues to use innovation as its core strategy to retain its

position as the one-stop shop for sourcing agri-commodities from India. Besides setting

benchmarks in quality, reliability and value-added services, ITC is a trendsetter in

customer care particularly in commodity trading. Major customers include Cargill,

Marubeni, Toepfer, among others, who source agriculture commodities and food

products from India. Customers can log onto www.itcibd.com, and readily access

information on crop production and forecast, market updates, the latest shipment

status and the prevailing foreign exchange rates.

Sourcing for ITC

ITC's Agri business is progressively aligning its commodity portfolio with the sourcing

needs of the Company's Foods business to generate higher order value from its agri

procurement infrastructure. The business has commenced procurement of chipstock

potatoes, one of the critical raw materials in the manufacture of the Company's

'Bingo!' brand of potato chips. The acquisition of Technico, an Australian company with

technology leadership in the production of early generation seed potatoes, helped the

business access a ready pipeline of new high-yielding varieties of chipstock potato

seeds.

8) Chairman The chairman of ITC limited:

Yogesh Chander Deveshwar

Executive Directors:

Sahibzada Syed Habib –ur-Rehman

Anup Singh

Krishnamoorthy Vaidhyanath

9) Critical Events that change the course

Indian rural and agri. market is 70% to other resources in India ,but only 30 % of

GDP is from agriculture sector . ITC realized it that their cigarette business has a

limit further which they wont be able to tap profit and their expansion plans. So

diversification was needed in any case to build a foothold in Indian market.

FMCG bieng the fourth largest sector in the field which is expanding at a very fast

pace and it has huge potential , along with the benefit that it can be accrued by

organizing the existing fragmented market leading to concept of ‘one stop shop’.

Further India being one of the largest economies with the benefit of its vast

market, it attracted ITC to expand its operation in various areas of hospitality,

FMCG ,Greeting cards Branded Apparels etc.

10) The Responsibility Factor Preamble

Over the years, ITC has evolved from a single product company to a multi-

business corporation. Its businesses are spread over a wide spectrum, ranging

from cigarettes and tobacco to hotels, packaging, paper and paperboards and

international commodities trading. Each of these businesses is vastly different

from the others in its type, the state of its evolution and the basic nature of its

activity, all of which influence the choice of the form of governance. The

challenge of governance for ITC therefore lies in fashioning a model that

addresses the uniqueness of each of its businesses and yet strengthens the unity

of purpose of the Company as a whole.

Since the commencement of the liberalisation process, India's economic scenario

has begun to alter radically. Globalisation will not only significantly heighten

business risks, but will also compel Indian companies to adopt international

norms of transparency and good governance. Equally, in the resultant

competitive context, freedom of executive management and its ability to

respond to the dynamics of a fast changing business environment will be the new

success factors. ITC's governance policy recognises the challenge of this new

business reality in India.

D efinition & Function

ITC defines Corporate Governance as a systemic process by which companies are

directed and controlled to enhance their wealth generating capacity. Since large

corporations employ vast quantum of societal resources, we believe that the

governance process should ensure that these companies are managed in a

manner that meets stakeholders aspirations and societal expectations.

Core Principles

ITC's Corporate Governance initiative is based on two core principles. These are :

i. Management must have the executive freedom to drive the enterprise

forward without undue restraints; and

ii. This freedom of management should be exercised within a framework of

effective accountability.

ITC believes that any meaningful policy on Corporate Governance must provide

empowerment to the executive management of the Company, and

simultaneously create a mechanism of checks and balances which ensures that

the decision making powers vested in the executive management is not only not

misused, but is used with care and responsibility to meet stakeholder aspirations

and societal expectations.

Cornerstones

From the above definition and core principles of Corporate Governance emerge

the cornerstones of ITC's governance philosophy, namely trusteeship,

transparency, empowerment and accountability, control and ethical corporate

citizenship. ITC believes that the practice of each of these leads to the creation of

the right corporate culture in which the company is managed in a manner that

fulfils the purpose of Corporate Governance.

Trusteeship:

ITC believes that large corporations like itself have both a social and

economic purpose. They represent a coalition of interests, namely those of

the shareholders, other providers of capital, business associates and

employees. This belief therefore casts a responsibility of trusteeship on

the Company's Board of Directors. They are to act as trustees to protect

and enhance shareholder value, as well as to ensure that the Company

fulfils its obligations and responsibilities to its other stakeholders. Inherent

in the concept of trusteeship is the responsibility to ensure equity, namely,

that the rights of all shareholders, large or small, are protected.

Transparency:

ITC believes that transparency means explaining Company's policies and

actions to those to whom it has responsibilities. Therefore transparency

must lead to maximum appropriate disclosures without jeopardising the

Company's strategic interests. Internally, transparency means openness in

Company's relationship with its employees, as well as the conduct of its

business in a manner that will bear scrutiny. We believe transparency

enhances accountability.

Empowerment and Accountability:

Empowerment is an essential concomitant of ITC's first core principle of

governance that management must have the freedom to drive the

enterprise forward. ITC believes that empowerment is a process of

actualising the potential of its employees. Empowerment unleashes

creativity and innovation throughout the organisation by truly vesting

decision-making powers at the most appropriate levels in the

organisational hierarchy.

ITC believes that the Board of Directors are accountable to the

shareholders, and the management is accountable to the Board of

Directors. We believe that empowerment, combined with accountability,

provides an impetus to performance and improves effectiveness, thereby

enhancing shareholder value.

Control:

ITC believes that control is a necessary concomitant of its second core

principle of governance that the freedom of management should be

exercised within a framework of appropriate checks and balances. Control

should prevent misuse of power, facilitate timely management response

to change, and ensure that business risks are pre-emptively and effectively

managed.

Ethical Corporate Citizenship:

ITC believes that corporations like itself have a responsibility to set

exemplary standards of ethical behaviour, both internally within the

organisation, as well as in their external relationships. We believe that

unethical behaviour corrupts organisational culture and undermines

stakeholder value.

11) What make them different from others Brand

Management

Distribution Channel

12) Con

t act         

Registered Office

VIRGINIA HOUSE

37 J.L.NEHRU ROAD, KOLKATA 700 071

EPABX NO. : 91-(0)33 22889371

Communications

Department-wise Fax

VIRGINIA HOUSE

Ground Floor

Merchandising Fax 22881417

Taxation Fax 22880842

Blending

Marketing PD

1st Floor

Corporate Accounting Fax 22881256

India Tobacco Division Accounting Fax 22882256/ 22882070

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General

Fax 22882257

Chairman

Directors

Communication Room

Corporate Financial Controller

3rd Floor

General Fax 22882251

Engineering

Fax 22880188

Engineering Marketing

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Leaf

Purchasing

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India Tobacco Division Board (ITD)

Fax 22882953Human Resources - ITD

ITD Finance

T & R A

ITC CENTRE

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Corporate Funds & Planning Fax 22880826

Investor Service Centre Fax 2288626222880826, 22886320

3rd Floor

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ISDN Line, ITD MIS 22887114, 22886218,22880830, 22889665

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Hotels Fax 22882344