CHAPTER- 1

INTRODUCTION

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INTRODUCTION

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 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-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 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.

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.

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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.

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 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 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 “Paperkraft”was launched in 2002. To augment its offering and to reach a wider student population, the popular range of notebooks was launched under brand “Classmate” in

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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 “Paperkraft” Brand. “Paperkraft” offers a diverse portfolio in the premium executive stationery and office consumables segment. Paperkraft 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 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 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 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.

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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 partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeepacross 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.

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ITC PROFILE

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 5.1 Billion. ITC is rated among the World's Best Big Companies, Asia's 'Feb. 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks 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 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-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

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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 globalizing environment to consistently reward more than 3, 68,000 shareholders, 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.

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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 cigarettes 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.

1974 - On 1st April name again changed to I T C Ltd.

1975

- ITC Ltd Purchased the net asset in India of India Leaf Tobacco Development Co. Ltd. (UK). 1979 The name of the Company's chain of hotels was changed from Welcome Hotels to Welcomgroup. The company entered into a Marketing Service and Reservations Agreement with the Sheration International Incorporated which was sanctioned by Govt. on 27th January.

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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 up a 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 India 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 1st 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 1st April Tribeni Tissues Ltd was amalgamated with the Co.

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1992

- Since January there was labour unrest at Tribeni Tissues papermill which led to a lockout at the mill with effect from 27thMay. - On 8th 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 and Bristo standard and re-designed Gold Flake Kings and Berkley Filter. Further, Gold Flake Lights in King-size was Introduced into test markets.

1996

- The Company has launched `Classic Ultra Milds' and `Wills Natural Lights' brands during the year.

1997

- ITC Classic Finance Ltd. was amalgamated with ICICI Ltd.

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 51% through a preferential allotment of equity shares. This follow the allotment, by the board of ITC 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% redeemable cumulative-

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preference shares of the face value of Rs100 each, for cash, at par to promoter company ITC.

- ITC will set up a new tobacco processing department (TPD) because the increased production will make it economical toprocess tobacco on site.

- The Anaparti factory of ITC Ltd -- 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 (I) Pvt. Ltd. signed an MoU aimed at exploring business opportunities for deploying e-enabled solutions.

- The Company has launched a project e-Choupal in Bhopal to Web-enable farmers to make a beginning in agricultural e-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 Compaq and expand the IT business. - The company set up the Lifestyle Retailing Business Division. A strategic Business Unit for the greeting cards business was set up under the Packaging and Printing Division.- ITC has launched Wills Sport, a full range of internationally 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-eastern States to avail of special incentives relating to Central excise duties. - On 21th August, ITC Infotech India Limited became a wholly owned subsidiary of the company. Ansal Hotels Limited became a subsidiary of ITC Hotels Limited effective from 12th July. - The Board of the company has recommended an employee stock option scheme.

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-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 atta making its foray into Indian atta 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 Ltd, is finally foraying its way to the Rs 1,100 crore confectionery market. The foods division which has shifted office from Kolkata to Bangalore this month has introduced its first 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 taken over Wills brand. ITC had to acquire the Wills brand in the US, before it takes Wills merchandise to America.

-ITC, now moves towards match business, it has diversified into the match business to earn more revenues from non-tobacco businesses.

2003

-ITC Ltd has informed to BSE that company's Spriha brand of natural incense 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 10months, under the brand name of 'Aashirvaad'.

-Commences commercial production of paper using the environment-friendly ECF (elemental chlorine-free) technology at its Bhadrachalam unit in Andhra Pradesh -Food wing of ITC eyes on 4 pc market share in biscuit market -ITC unveils new brand of agarbattis 2004 -ITC Food launches a range of 'cooking pastes' under its ready-to-eat gourmet cuisine brand Kitchens of India and ready meal Aashirwad brand

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-Completes the process of acquiring 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 Andhra Pradesh. -ITC unveils Sunfeast biscuits in Chennai - ITC ties up with Israeli firm for e-channel.

2005

- ITC Ltd becomes one of the very few companies in India to obtain the coveted Quality

Management System certification ISO 9001:2000 for investor servicing. - ITC Ltd wins 'Golden Peacock Global Award for Corporate Social Responsibility (CSR) in Emerging Economies for 2005'.

- ITC Ltd signs MoU with Tripura Government for a bamboo development programme.

- ITC unveils new `5-in-1' agarbattis -ITC unveils `Expressions Regalia'

-ITC e-Choupal gets Development Gateway Award

-ITC unveils Candyman Cofitino

2006-ITC forges alliance with Tilda for DNA-tested basmati -ITC ties-up with Marubeni for food biz

2007 - ITCLtd. 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 (SUUTI),

(ii) Mr. D. K. Mehrotra, Managing Director - Life Insurance Corporation of India (LIC) as an Additional Director of the Company,representing LIC,

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(iii) Dr. R. K. Kaul, 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 Ltd., 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 etc, digital asset descriptive metadata cataloguing and Web 2.0 based portal development services. With in-depth understanding of how media supply chain works, ITC Infotech is well placed to publish and distribute quality content.

ITC launches eco-friendly "Paperkraft Premium Business Paper

ITC recently launched "Paperkraft Premium Business Paper", an environment friendly paper which 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 scare resources and has been launched in line with ITC’s triple bottom line commitment to building economic, environmental and social capital for the nation.

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Yet another addition in ITC’s wide array of differentiated FMCG products, Paperkraft Premium Business Paper has been created 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 business 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 ITC’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 Clinton 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”. ITC’s exemplary commitments to green practices have also enabled its hotel in Kolkata – the ITC 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 in a 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 harness the element of nature in an inspired setting to deliver unique guest experiences.

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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”.

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ITC creates mobile version of Corporate Website

ITC is among the first Indian companies to launch a mobile version of its Corporate Website -www.itcportal.mobi This unique endeavour by ITC, aims 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 Internet 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.itcportal.mobi can now be accessed by millions of active mobile Internet 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 320 x240 pixels.

This new initiative from ITC will not only make information search easier and relevant for the mobile internet user but will also enable proactive engagement with stakeholders by reaching out to them with news alerts, product and service offers. The launch of the mobile version is a strategic shift from an existing information-providing format to a proactive 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 Manager – 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

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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 innovative product for its consumers - The Anti – Hairfall Shampoo & Conditioner, in Chennai today. The new variant was unveiled by the glamorous Brand 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 launched 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. It also helps renew dry and lifeless hair. The Hair Restore Technology, developed at the ITC 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 concern for everyone and also has a severe impact on the individual’s psyche as 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

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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! I urge the consumers to try our product and experience the difference. “

Deepika Padukone, Brand Ambassador for Fiama Di Wills said, “I am 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 goodness 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) PartnerNetwork

ITC Infotech, a global IT services & Solutions Company and a fully owned subsidiary of ITC Ltd., 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 Oracle 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 of 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.

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At a special Centenary event, in Kolkata, Chairman Mr. Y C Deveshwar,  addressing  a 29,000 strong audience of employees across the country through a webcast,  said  that: "Innovation  should  be a source  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 customer 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

- All ITC’s luxury hotels are now 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 discerning 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

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movement in India. (*Rated LEED Platinum by Indian Green Building Council-IGBC)

Commenting on the distinction, Nakul Anand, Executive Director, ITC Ltd. said, “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 Platinum 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, ITC 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-discrimination policy and practice is embedded across the Company in line with corporate principles and benchmarked business practices.

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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 recycling 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 Y C Deveshwar, Chairman, ITC Limited at a function held this evening in New Delhi to commemorate the AIMA Managing India Awards 2012.

Fiama Di Wills Men pioneers a new trend

Unveils the Fiama Di Wills Men website in a first-of-its-kind web debut in India

‘”Innovation” is the foundation of all initiatives at Fiama Di Wills leading to 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.

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ITC in New Delhi

ORGANIATION STRUCTURE

Branch Manager

ASSISTANT MANAGER ASSIATANT MANAGER ASSISTANT MANAGER (FOOD) (PCP) (CIGARATTE)

AM AM AM (AREA MANAGER)

AE AE AE (AREA EXECUTIVE)

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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 products. 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 products. 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

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ITC 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, 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. 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

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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- won 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 level of quality, contemporary technology and work environment.

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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 created by Master Chefs of ITC Hotels, following rare, closely guarded recipes, handed down through the ages, from one generation to the nextBukhara

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

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Dal Bukhara is an exquisite culinary treat made from whole black lentils simmered with prized indian spices over a coal fire, for long hours on end.

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Sunfeast (biscuit)

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 in select markets. Riding on the success of its initial offering, ITC also entered the milk biscuit category with Sunfeast milk magic biscuit. Apart from milk which helps mental growth, these biscuit also contain the finest quality wheat adding

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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 biscuits in two variants – Choco and Orange. The sunfeast product portfolio has been further 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.

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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' is 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 Éclairs'

(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 is targeted at ‘fun-filled, naughty kids’ who seek a delightful candy

experience through a range of candy types and flavours.

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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 in a 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 snacking 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.

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ITC in Agricultural IndustryITC's International 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, organic

fruit, Fresh fruits Coffee & Spices – coffee, Black pepper, Chilly, Turmeric, Ginger,

Celery, and other seed 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, who source agriculture commodities and food products 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 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 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 access 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 nine States of Madhya Pradesh, Haryana, Uttaranchal,

Uttar Pradesh, Rajasthan, Karnataka, Maharashtra, Andhra Pradesh and Kerala. ITC plans to extend the 'e-Choupal' to cover 10 million farmers across 100,000 villages covering 15 Indian states. ITC’s International Business Division, one of

India’s largest exporters of agricultural commodities, has conceived e-Choupal as a more efficient supply chain aimed at delivering value to

its customers around the world on a sustainable basis.

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STRATEGIES OF ITC

ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational 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.

• Create multiple 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 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

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

Sunfeast 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.

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Sunfeast Milky Magic

Packed with goodness of milk these deliciously nutritious crisp 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.

Sunfeast Marie

Sunfeast 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:It has the distinction of being one of the most successful innovative Marie biscuits and is liked by one and all.

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Sunfeast 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 distinct flavours - Butter-Nut, Butterscotch and Choco-Nut cookies. These products are designed to give consumers a rich & truly indulgent experience.

Sunfeast 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.

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Sunfeast 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.

Sunfeast 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 into these biscuits to deliver truly tasty cream biscuits. Special Flavor Crystals in Strawberry and Pineapple cream biscuits keep the creamy flavor linger on.

Strawberry Cream BourbonThe first of its kind cream biscuit with a special delight for all those chocolate special strawberry flavor crystals that will lovers.

keep the creamy flavour linger on.

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Orange Cream Butterscotch CreamExperience a tangy twist in biscuits with Another first, the taste of ice-

cream in every 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.

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Sunfeast Snacky

Bigger than most others in the salted biscuit category, Snacky is light and crispy like no other. From kids to adults, it’s the quintessential ‘Family Biscuit’. Available in two variants, Classic salted and Chilli flakes - the very first of its kind in India.

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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 nicer.

Sunfeast Benne Vita Flaxseed Biscuits

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 III acids that helps control cholesterol. Flaxseed is the richest plant source 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

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ITC Sunfeast presents a range of Special cookies and creams.

SpecialCookies:

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 in Cashew/ Butter/ Coconut.

SpecialCreams:Delicious value for money cream biscuits with a thick layer of cream sandwiched between two biscuits. Available in Orange and Chocolate variants.

Sunfeast Pasta

The Sunfeast product portfolio was expanded in early 2005 to include healthy snacking options as well.

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Sunfeast Pasta Treat, a whole wheat based instant pasta was introduced as a healthy snacking option for children and young adults. After the tremendous success of the 4 initial flavours, (Masala, Tomato Cheese, Cheese and Sour Cream), the instant Pasta range has been extended with three new exciting flavours - Pizza style, Chicken and Tangy Tomato.

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How ITC turned biscuits business around.

Biscuits and tea in the morning 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 foraying into the segment, a lot of that changed. At 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 which 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 classic 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 eye on biscuits? Ravi Naware, chief executive, ITC Foods, makes it sound simple. "We decided to enter the foods segment because it's a Rs 550,000 crore (Rs billion) market in India. But only 6 per cent of this is branded and packaged. In developed markets, nearly 95 per cent 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-adding 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 late entrant and how the biscuits industry has responded.

New recipeBefore 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, Marie and Bourbon cream Along

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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 Magic. 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, when 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 consumptions."

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 50-50 Chakkar. And Parle is all set to launch at least two new products before the end of this year.

Distribution maze

It'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 a good understanding of distribution channels. The company used its existing network of convenience stores -- the company's name for the hole-in-the-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 in nearly 1.8 million outlets. Britannia claims it has a superior distribution clout with its presence in nearly

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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 corner space in your favourite newspaper and so on. 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 campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador. In the same year, as the official sponsor of the WTA tennis championship -- titled the Sunfeast 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 pockets have helped Sunfeast in many ways. The company claims that it has been spending 35-40 per cent of its turnover 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 crore (Rs billion).

Until last year, Priya Gold spent close to Rs 45-50 crore (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 clearly among the largest spender on ads and promotions in the biscuits category.

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Analysts predict that these figures are all set to rise this year. But industry experts aren't impressed. Says a consultant, "Although Sunfeast's Shah Rukh Khan Association is interesting, 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 a high volume, low margin game. But Britannia and Sunfeast look at a two-pronged strategy. High margins in cream variants and volumes from the Marie and Glucose segments. For instance, cream biscuits from both Britannia and Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream 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 differentiation, consumers are extremely price sensitive. But these segments are important. Marie and the popular glucose varieties make up for nearly 55 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 per 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 lost volumes. Britannia's shares have dropped from 35.8 per cent in 2004-05 to 30.5 per 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 share 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.

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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 and can easily afford to lower their margins." A potential after-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 on Sunfeast.

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CHAPTER- 2

OBJECTIVE, SCOPE &

LIMITATION

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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, Britannia and parle biscuits.

Objectives of the study are:

1. To know about company (ITC LTD) profile, product line, and variant.

2. To know the product, variant and SKU of the Sunfeast biscuits.

3. To study the relative performance of Sunfeast biscuit versus Britannia and Parle.

4. To know the market share of Sunfeast, Britannia, and Parle.

5. To know the visibility, supply, distribution channel, promotional activities, of Sunfeast in market.

6. To know the level of awareness of the customer about the existing biscuit in the market.

7. To know the customer perception about Sunfeast, Britannia, and Parle.

8. To know the customer satisfaction level and customer preference level in term of brand, price, quality, quantity, packaging.

9. To know the retailer’s preferences, margin, product awareness and perception.

10. To know the level of satisfaction of the retailer’s and wholesaler’s with respect to credit line and product delivery provided by wholesale provider.

11. To know the company distribution channel, different process of supply.

12. To know about the organizational hierarchy of ITC LTD.

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Scope of the study

As learning is a human activity and is as natural, as breathing. Despite of the fact that learning is all pervasive in our lives, psychologists 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 satisfy not only the consumer’s needs, but the marketer ’s objectives.

The scope of my study restricts itself to the analysis of customer and retailer preferences, perception and consumption of ITC Sunfeast buscuit. There are many other brands of biscuit available but my study is limited to three major players of buscuit leaving behind the others. The scope of my study is also restricts itself to Delhi region only.

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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 people were selected for the study. So the sample of customers and 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.

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CHAPTER- 3

RESEARCH METHODOLOGY

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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 and retailer’s satisfaction, customer preference and satisfaction regarding sSunfeast Britinnia and Parle. In collecting requisite data and information regarding the topic selected, I went to the retailers and customer of Delhi and collected the data.

Survey design:

The study is a cross sectional study because the data were collected at a single point of time. For the purpose of present study a related sample of population was selected on the basis of convenience.

Sample Size and Design:

A sample of 100 people was taken on the basis of convenience. The actual customer and retailers were contacted on the basis of random samplingResearch Period:

Research work is only carried for 2 or 3 weeks.

Research Instrument:

This work is carried out through self-administered questionnaires. The questions included were opening ended, dichotomous and offered multiple choices.

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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 “Comparative study of retailer and customer behavior towards ITC Sunfeast Britinnia and Parle ”. The data has been collected directly from respondent with the help of structured questionnaires. Secondary source: 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 I have used is bar graphs.

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CHAPTER- 4

DATA ANALYSIS AND

INTERPRETATION

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BASED ON CONSUMERS ANALYSIS OF THE STUDY ON CONSUMERS

1. HOW DO YOU COME TO KNOW ABOUT SUNFEAST BISCUIT?

TABLE.1

FACTORSNUMBER OF

RESPONDENTSADVERTISEMENT 60FAMILY / FRIEND 20

RETAILER 15ANY OTHER 5

Chart-1From the above analysis of given sample of 100 respondents it is concluded that out of 100 people 60 people know sunfeast biscuit through Advertisement while 20 people through family and 15 people follow by Retailers

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2. DO YOU KNOW SUNFEAST IS FROM ITC BRAND?

TABLE.2 BRAND AWARENESS NUMBER OF RESPONDENTYes 76NO 24

Chart-2 From the above analysis out of 100 people 76 people know that sunfeast is Of ITC brand. But 24 people don’t know about this.

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3 .WHICH FEATURE OF SUNFEAST INSPIRE YOU TO BUY?

TABLE.3

FEATURESNUMBER OF

RESPONDENTSQUALITY 55

PRICE 5QUANTITY 5

PACKAGING 23ANY OTHER 7

CHART-3From the above analysis out of 100 people 55 people Like the quality of sunfeast and 23 people like their packaging.

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4. REASON FOR SWITCHING OVER TO OTHER BRANDS?

TABLE: 4

REASONS NO OF RESPONDENTSTO CHANGE THE TASTE 53DUE TO OFFERS ON OTHER 21ECONOMICAL (PRICE) 13HABIT 11ANY OTHER 2

CHART-4From the above analysis out of 100 people 55 people switching over to other brand due to change taste and 21 people due to offers and value added products

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5. WHICH BRANDS COMES IN YOUR MIND FIRST WHEN PURCHASE BISCUIT?

Table: 5

BRAND NO OF RESPONDENTSBRITINNIA 48SUNFEAST 19PARLE 29OTHER 4

CHART: 5

From the above analysis out of 100 people there are 48 people first preference is britinnia, 29 parle, 19, people sunfeast, and 4

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6. WHICH CATOGARY OF BISCUIT YOU LIKE MOST?

TABLE: 6

SUB CATOGARY NO OF RESPONDENTSGLUCOSE 23SNACKY 18CREAM 44MARIE 9ANY OTHER 6

CHART- 6From the above analysis out of 100 people there are 44 people who likes cream biscuit and at the second 23 people said they likes glucose biscuits.

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7. PACKAGING DOES YOU LIKE MOST?

TABLE: 7

PACKAGING NO OF RESPONDENTSPARLE 20BRITINNIA 36SUNFEAST 40ANY OTHER 4

CHART-7From the above analysis out of 100 people there are 40 people who likes SUNFEAST packaging and at the second 36 people likes Britinnia biscuits Packaging.

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8. DO YOU FIND SUNFEAST BISCUIT IN YOUR NEAR OUTLET?

TABLE- 8

SUNFEAST OUTLET NO OF RESPONDENTSYES 91NO 9

CHART-8

From the above analysis out of 100 people . 91 people say, they find sunfeast in near outlet in New Delhi

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9. YOU WANT ANY CHANGE IN SUNFEAST BISCUIT LIKE…

TABLE: - 9.

ANY CHANGE LIKE

NO. OF RESPONDENT

TASTE 10

PRICE 51

QUANTITY 22

QUALITY 12

PACKAGING. 05

CHART- 9According to the above analysis it is concluded that in 100 people 10 people like change in taste, 51 people like change in price, 22 people like change in quantity, 12 like change in quality and 5 people like change in packaging.

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10 .PRICE CATOGARY SUITABLE FOR YOU

TABLE- 10

PRICE CATOGARY NO OF RESPONDENTS5 3810 3415 1420 625 8

CHART- 10According to the above analysis it is concluded that in 100 people 38 people like 5 rupee pack while 34 people like 10 rupee pack.

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CHAPTER- 5

FINDINGS,SWOT ANALYSIS,

SUGGESTION&

CONCLUSIONS

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FINDINGS

1. Most of the people prefer low price of biscuit.2. Cream biscuit are most preferred between customers.3. Most of the people prefer the Britannia biscuit.4. People switch over the other brands for to change the taste.5. People are aware of Sunfeast brand through media and they are aware

that they are the ITC product.6. Sunfeast customer like its biscuit due to its quailty.7. Sunfeast biscuit packaging is preferred over other brand like Britannia

and Parle. 8. Sunfeast biscuit are available at customer neighbourhood.9. Customer of Sunfeast biscuit feel that the price may be lower to in hence

the market share.

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SWOT ANALYSIS

STRENGTHS:

1. ITC is one of India's foremost private sector companies.

2. ITC leveraged it traditional businesses to develop new brands for new segments. . For example, ITC used its experience of transporting and distributing tobacco products to remote and distant parts of India to the advantage of its FMCG products. ITC master chefs from its hotel chain are often asked to develop new food concepts for its FMCG business.

3. ITC ranks among India's top 10 Most Valuable (Company) Brands.

4. It has market capitalization of nearly US $ 18 billion.

5. ITC has a diversified presence in Cigarettes, Hotels, Paper boards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products.

6. ITC's Agri-Business is one of India's largest exporters of agricultural products.

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WEAKNESSES:

1. The company’s original business was traded in tobacco. ITC stands for Imperial Tobacco Company of India Limited. It is interesting that a business that is now so involved in branding continues to use its original name, despite the negative connection of tobacco with poor health and premature death.

2. To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenues. Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being subsidized by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India - and this single brand alone holds 70% of the tobacco market.

OPPORTUNITIES:

1. Core brands such as Aashirvaad, Mint-o, Bingo! And Sun Feast (and others) can be developed using strategies of market development, product development and marketing penetration.

2. E- Choupal is a community of practice that links rural Indian farmers using the Internet. This is an original and well thought of initiative that could be used in other sectors in many other parts of the world. It is also an ambitious project that has a goal of reaching 10 million farmers in 100000 villages. Take a look at e-choupal.http://www.itcportal.com/agri_exports/e-choupal_new.htmITC leverages e-Choupal in a novel way.

3. The company researched the tastes of consumers in the North, West and East of India of atta (a popular type of wheat flour), then used the network to source and create the raw materials from farmers and then blend them for consumers under purposeful brand names such as Aashirvaad Select in the Northern market, Aashirvaad MP Chakki in the Western market and Aashirvaad in the Eastern market. This concept is tremendously difficult for competitors to emulate.

4. Chairman Yogi Deveshwar's strategic vision is to turn his Indian conglomerate into the country's premier FMCG business. Per capita

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consumption of personal products in India is the lowest in the world offering an opportunity for ITC’s soaps, shampoos and fragrances under their Wills brand.

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THREATS:

1. The obvious threat is from competition, both domestic and international.

2. ITC’s opportunities are likely to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most competitive strategic formation for a secure future.

3. Duplicate items are available in abundance at much lesser rates. This affects the company financially and adversely affects its goodwill.

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SUGGESTIONS AND RECOMMENDATION

1. Company should concentrate more on television for advertisement, as mostly people get attracted through television only.

2. For promotional offers, company should go for free gifts rather than going for other ways.

3. Parle company should concentrate on its packing as people are least satisfied with it while ITC sunfeast should concentrate on the shape of their candy.

4. People are unsatisfied with the price and quantity of sunfeast so companies should concentrate in this regard also.

5. Competitors can play the low price game as they have volumes to support

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CONCLUSION

A survey of the people has been conducted to know the liking pattern of the ITC sunfeast, Britannia, and Parle. It is observed that overall retailers like to buy Britannia and parle rather than sunfeast due to high price. It is concluded that mostly people preferred ITC sunfeast cream biscuit due to its flavour/taste, quality and image. Some people often like to have a biscuits with good flavour, quality and crunchiness so they are going towards biscuits of sunfeast due to its taste and.

It is thus concluded from the facts collected that mostly people refer to buy jars of their favourite candy and sometimes some of them go for Polly bags and jumbo jars.

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CHAPTER-6

BIBLIOGRAPHY

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BIBLIOGRAPHY

1. BOOKS/MAGAZINES REFFERED Marketing Management by “Philip kotler”

2. WEBSITES REFFERED: http://www.itcportal.com

WWW.project paradise .com

WWW. Scribed.com

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CHAPTER-7

ANNEXUR

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PROJECT REPORT ON CUSTOMER, RETAILERPREFERENCE TOWARDS ITC SUNFEAST, BRITINNIA, and

PARLE.

I am Abhinav Srivastava, student of PGDM-IV trimester from AIT-School of Management, Greater Noida. I am doing field survey on “CUSTOMER, RETAILER PREFERENCE TOWARDS ITC SUNFEAST BISCUIT, BRITANNIA & PARLE for knowing the Customer or Retailer preference towards branded biscuit in market.” Please cooperate and help me by giving your valuable answer to the Questionnaire given below. Which help me in reaching to my goal?

This document will be kept confidential and will not be shared with anyone. The study is purely academic and it is a part of our curriculum of PGDM course.

PERSONAL PROFILE

NAME _ ----------------------------------------------------------------

Age_ -----------------------------------

Occupation_ ---------------------------------------------------------

Address_ ----------------------------------------------------------------------------------

Gender_ Male [ ] Female [ ]

Contact No_ ------------------------------------------------------------

Marital status_ Marriage [ ] Unmarried [ ]

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QUESTIONNAIRE

1. How do you come to know about sunfeast biscuit? a. Advertisement b. Family/ friend c. Retailer d. Any Others.

2. Do you know sunfeast is from ITC brand? a. Yes b. No 3. Which feature of sun feast inspires you to buy? a. Quality b. Price c. Quantity d. Packaging e.any other.

4. Why do you sift from one brand to another brand? a. To change your taste. b. Due to offer/ scheme. c. quantity. d. Cheap price e. Quality f. Anything else.

5. When do you think of purchasing a biscuit which brand Comes in your mind. a. Britinnia b. Sunfeast c. Parle d. any other. 6. Which catogary of biscuits you like most.

a. Glucose b. Snacky c. Cream d. Marie e. Any other.

7. Packaging do you like most?

a. Parle b. Britinnia c. Sunfeast d. Bisk farm e. Any other.

8. Do you find sunfeast biscuit in your near outlet? a. Yes b. No

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9. You want any change in sunfeast like. a. Test b. Price c.Quantity d.Quality e. Packaging.

10. Price catogary suitable for you.

a. 5 b. 10 c. 15 d. 20 e. 25

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