ENDURING VALUE

INDIA TOBACCO COMPANYVISION MISSION VALUES

PROBLEM SOLVING APPROACHES

Enduring Value

Presented by :Koushik DuttaSchool of Management SciencesBengal Engineering and Science University, Shibpur

Journey from Imperial Tobacco Company of India to India Tobacco Company

ITC facts HQ- Kolkata,WB

Founded24 August 1910 (as Imperial Tobacco Company of India)

Incorporation1970 (as India Tobacco Company)1974 (as I.T.C. Limited)2001 (as ITC Ltd)

Annual Turnover$7 billion

Market CapitalizationOver $45 billion

ChairmanYogesh Chander Deveshwar(Mech Eng- B. Tech, IIT-D)

Forbes Ranking2007- #1256 Forbes Global 20002009- #987 only Indian FMCG, FG 2000#95 Forbes World's Most reputable Company

#India's second largest exporter of agricultural products.

One of the India's biggest foreign exchange earners (US $ 2 billion in the last decade)

“Sustain ITC'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.”

Vision

Mission

“To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value.”

Enduring Value

• Trusteeship

Core Values

• Innovation

• Respect For People • Excellence

• Customer Focus

• Nation Orientation

Problem Solving Approach

Triple Bottom

Line Approach

360 Degree

Appraisale- Choupal

e-Choupal is an initiative to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products like soybeans, wheat, coffee, and prawns. e-Choupal tackles the challenges posed by Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of intermediaries. The programme installs computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.

e- Choupal – a rural innovative approach

The problem describes the opportunities and challenges in the cigarette industry in India. It suggests that there are tremendous opportunities for growth in the cigarette industry. However, there are challenges due to the health hazards associated with cigarette smoking, distortion in the tax system as applied to the cigarette industry, and restrictions on smoking placed by new legislation. Further, there are challenges in the market due to smuggling, contraband products, and other issues. ITC Limited as a dominant player in the industry with a significant dependence on tobacco and tobacco products promising to pursue the triple bottom line approach by focusing on economic, environmental and social value. There is a need for the company to decide on some directions for the future to live up to the promise of a triple bottom line approach.

Triple Bottom Line Approach

Corporate Social Responsibility towards the nation Environment

Water Positive- 11 years in a row Carbon Positive- 8 consecutive

years Solid Waste Recycling Positive- For

the last 6 years Soil & Moisture Conservation to

1,16,000 Hectares 40% Renewable energy is used in

ITC Greenest Luxury Hotel Channel

(LEED Platinum certified) Social and Farm Forestry initiative

has greened over 1,42,000 hectares

Social

Strengthening agri-production base of nearly 4 lakh farmers

Primary Education initiative has educated over 3,00,000 children

e-Choupal initiative is the world’s largest rural digital infrastructure benefitting over 4 million farmers

Women’s Empowerment initiative has created nearly 40,000 sustainable livelihoods

Livestock Development initiative has provided animal husbandry services for over 8,00,000 milch animals

Economic

Annual Turnover $7 billion Market Capitalization Over $45

billion 26% compound annual growth in

total shareholder returns over the last 17 years

30,000 direct employment is provided by ITC group

Diversified multi-business conglomerate - FMCG, Hotels, Paperboards & Packaging, Agri Business and Information Technology

World Class branding

360 Degree

Appraisal

Immediate Supervisor

Peers

Subordinates

Self

Customers

Top Manageme

nt

360 Degree Appraisal

The ITC Leadership Board of Directors »

Audit Committee »

Compensation Committee »

Nominations Committee »

Investor Service Committee »

Sustainability Committee »

Corporate Management Committee »

Divisional/ Strategic Business Unit (SBU) Corporate Functions

Business includes: FMCG, Hotels, Paperboards, Specialty Papers & Packaging, Agri Business and Information Technology

Planning and Treasury, Accounting, Taxation, Risk Management, Legal, Secretarial, EHS, Human Resources, Corporate Communications, Corporate Affairs, Internal Audit and Research & Development

Headed by a divisional/ SBU Chief Executive Headed by a HOD Corporate Functions

PROBLEM SOLVING INITIATIVES FOR THE NATION AND ITS CITIZENS

• Use of renewable energy sources. (41% of its energy consumption)

• Forestry projects in wastelands.

• Reduce specific water consumption and augment rainwater harvesting.

• Minimizing waste generation, maximizing reuse & recycling and using external post-consumer waste as raw material

• Life Cycle Assessment studies

• Afforestation programme has greened over 1,42,000 hectares, which generated over 64 million person days of employment.

• Soil and moisture conservation to over 1,16,000 hectares

• Reduce-Reuse-Recycle Approach

Market Capitalization

2010- $30 billion 2011- $33 billion 2012- $35 billion 2013- $45 billion

© Sustainability Reports

Thank you