Introduction

ITC India Limited Type: Public (BSE: ITC) Founded: August 24, 1910Radha Bazar Lane, Kolkata, India Headquarters: Virginia House, Kolkata, India Key people: Y C Deveshwar, ChairmanK Vaidyanath, Director, CFO: Partho Chatterjee Industry: Tobacco, Foods, Hotels Products: Cigarettes, Packaged Food, Hotels, Apparel Revenue: $4.75 billion USD (2006) Employees: 20,000 (2006) Website: http://www.itcportal.com

 ITC is one of India's foremost private sectors companies. ITC is today, a diversified multi-business conglomerate with a market capitalisation of US $ 35 billion and a turnover of over US $ 7 billion.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & SpecialtyPapers,Packaging, AgriBusiness, Packaged Foods & Confectioner, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.

 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. 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 $ 2.8 billion in the last decade).

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.

THE ITC VISION

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

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

THE ITC MISSION

CORPORATE STRATEGIES: ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems. ITCs corporate strategies are :

Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets.

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.

Create distributed leadership within the organisation by nurturing talented and focused top management teams for each of the businesses.

Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology

Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and a capability residing in ITCs various 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 and accountability

ITC Pricing Strategy:

The pricing of the ITC food division depends upon the Customers demand schedule, the cost function and the competitors price. The pricing of the company is such that it caters to the need of all income groups of people but special provision has been kept for Lowand middle income group, and their pricing are competitive with respect to other players like Britannia, Parle and Briskfarm. The company follows the Going rate pricing that is the price of the product depends upon the competitors price. The firm chooses pricing more or less the same as Market leader.

ITC Promotional Activities:

A particular budget is allocated for the promotion of the products, the local promotion scheme is decided by the Area Sales Manager, it give its suggestion to the District office and that is forwarded to the Head Quarter in Kolkata. In another promotional scheme for Biscuits a particular number of cases is given freely to the distributors according to the amount of sale they make, this was a drop down promotion i.e. of the number of free cases that a particular distributors gets, off them a certain part is reserved for the retailers and customer if they buy a certain level of biscuit quantity.

ITC Distribution:

Buoyed by a strong distribution network ITC is likely to retain its market share in the cigarettes business; the ban on advertisements is likely to work in favor of ITC thanks to the recall factor. The company's reliable distribution network also ensures superior inventory turnover than its peers.

MARKETING STRATEGIES:

Pricing Strategy :
Market Follower. Promotional Strategy :
Local Promotional Schemes Area Sales Manager. National Schemes - Depending upon the budget allocated.

Distribution Strategy :
Strict compliance standards, low profit margins, intense competition, high customer-service expectations. Fast and effective sales ordering processes.

FUTURE STRATEGIES:
No new investments in cigarettes New ventures in agri business
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 High degree of promotion Use their distribution network to reach rural areas Bypass attack through economy and budget hotels Distribution and pricing of food products Tie ups and acquisitions to boost IT business

POLICY ON HUMAN RIGHTS:

ITC believes that all its employees must live with social and economic dignity and freedom, regardless of nationality, gender, race, economic status or religion. In the management of its businesses and operations therefore, ITC ensures that it upholds the spirit of human rights as enshrined in existing international standards such as the Universal Declaration and the Fundamental Human Rights Conventions of the ILO. Policy: ITC upholds international human rights standards, does not condone human rights abuses, and creates and nurtures a working environment where human rights are respected without prejudice. Implementation: The Corporate Human Resources function of ITC is responsible for the Human Rights Policy design, implementation and updation. The policy is implemented at all locations of ITC through a set of separate policies and procedures covering each of the main constituents of human rights applicable at the workplaces.
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Monitoring & Audit: The assessment procedures for different constituents of this policy are defined against each specific policy.

POLICY ON SOCIAL INVESTMENTS / CSR:

It is ITC's policy: 1. To align and integrate Social Investments / CSR programmes with the business value chains of your Company and make them outcome oriented. To support creation of on and off-farm sustainable livelihood sources thereby empowering stakeholder communities to conserve and manage their resources. 2. To implement Social Investments / CSR programmes primarily in the economic vicinity of your Company's operations with a view to ensuring the long term sustainability of such interventions. 3. To contribute to sustainable development in areas of strategic interest through initiatives designed in a manner that addresses the challenges faced by the Indian society especially in rural India. 4. To collaborate with communities and institutions to contribute to the national mission of eradicating poverty and hunger, especially in rural areas, through agricultural research and knowledge sharing, superior farm and agriextension practices, soil and moisture conservation and watershed management, conservation and development of forest resources,

empowering women economically, supplementing primary education and

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participating in rural capacity building programmes and such other initiatives.

5. To encourage the development of human capital of the Nation by expanding

human capabilities through skills development, vocational training etc. and by promoting excellence in identified cultural fields.

IT E-WASTE POLICY:
The lifecycle of all IT assets spanning from acquisition to disposal shall be managed in a manner which conforms to sound environmental norms as detailed in the IT EWaste guidelines. This includes :

Preferential dealing with IT vendors having sound E-Waste management processes Extending the useful life of IT assets to postpone / minimize generation of EWaste Responsible disposal processes conforming to regulatory requirements and best practices.

ITC FOOD PRODUCTS POLICY:

It is ITC's policy that its food products should provide nutritious, tasty, hygienic and convenient options to the consuming public. ITC will offer food products across multiple categories, price points, delivery formats and segments as dictated by the needs of the consumer.

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ITC's portfolio of food products will be continuously improved and modified to 1. offer new products that meet the aspiration of the changing consumer, 2. offer food products with affordable and appropriate nutrition, 3. drive reduction of sodium, sugar and fat in Products, 4. offer trans-fat free products, 5. follow the highest standards in nutrition labeling and reporting.

POLICY FRAMEWORK AND STRATEGIES:

As with all laws, ITC's Food products will adhere to all legal and regulatory requirements as prescribed from time to time. To offer new products that meet the aspiration of the changing consumer As the aspiration of the consumer changes, new products will be developed and launched to meet the taste, nutrition and convenience expectations of future consumers. 1. To offer products with affordable and appropriate nutrition

Recommendations of the National Institute of Nutrition (NIN), India, will be referred to, to assess nutritional appropriateness of ITC's food products. Efforts will be made to offer products with appropriate nutrient density for mass consumption, including catering to the needs of those sections of the society who are economically disadvantaged. 2. To offer products with micro-nutrient fortification

ITC's food products will be suitably fortified with micro-nutrients (iron, calcium, zinc, iodine, folic acid, other vitamins and minerals) wherever feasible. ITC's R&D will continue to carry out suitable research programmes to make fortified nutrients more biologically available and functional.

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3. To

drive

reduction

of

sodium,

sugar

and

fat

in

products

ITC's R&D will endeavour to find solutions aimed at reducing fat, sugar and sodium ("FSS") in food products, without impacting the taste profile of the product. In addition to scientific solutions, ITC will also adopt the Adaptation Methodology to reduce these ingredients in a gradual manner. Guidelines will be made and tangible targets will be set for the new product development teams to reduce the above ingredients in the new products. ITC will endeavour to introduce such Reduced FSS products in the market by year 2013. 4. To offer Trans Fat Free Products

To disclose added trans-fats, if any, in all food products. To work towards not using any hydrogenated oil in all food products by the year 2015. 5. To offer functional food products with focus on India-specific metabolic disorders ITC, with well-researched functional ingredients, will endeavour to make functional food products suitable for consumption by Indians who suffer from metabolic disorders. ITC will release such functional products to the consumer, only after fully understanding the mechanism of action of the functional ingredients at the molecular level. Integrative biology approaches will be employed to study these ingredients' efficacy. 6. To follow responsible marketing and consumer communication

practices Apart from complying with all local laws and regulations, advertisements of ITC's food products will also adhere to the ASCI Code. All product communication to the consumer will appropriately represent the products. Internal audits will be done on marketing practices and, if needed, corrective action will be taken. Efforts will be made to promote nutritious foods and educate the rural consumer in food hygiene.
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7. To create and sustain R&D focus in development of new products and processes ITC's R&D organisation is structured to research exploratory subjects and applied research subjects. ITC's R&D infrastructure is of international standards, and has been certified with ISO 14001-2004 for EHS and ISO 17025 NABL for analytical processes. There are more than 100 scientists conducting R&D on several food related platforms.. 8. To follow the highest standards of hygiene and manufacturing practices in all delivery formats

ITC Hotels R&D endeavours to practice GHP & GMP (Good Hygiene Practices & Good Manufacturing Practices) along with ISO 22000 food safety management system implementation with PAS 220 relevant applications. ITC hotels will stringently follow all applicable regulatory requirements, with particular focus on risk minimization and elimination. 9. To collaborate with experts and institutions

ITC believes in collaborating with outside experts to upgrade the knowledge of its personnel with a view to guiding the food business in developing products with balanced nutrition and functional ingredients. ITC will continue to collaborate with national and international institutions for scientific research and specific projects. ITC believes in using an Open Innovation policy in developing its R&D for food products. 10. To ensure widespread accessibility of healthy products through pricing and distribution:

ITC will ensure the widest accessibility to its healthy food products through ensuring national geographic distribution across both urban and rural centres, using its FMCG distribution infrastructure and its e-choupal related rural distribution reach. ITC will also ensure accessibility across demographics through adopting a portfolio approach across all relevant price segments.
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SWOT ANALYSIS:

Strength

Weakness Unrelated diversification Threats Increasing tax in Cigarettes Health hazard

Brand
Management Opportunity Rural market E-choupal

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Training and Development

An ever changing, highly competitive global landscape necessitates the development of a strong, customer responsive world-class company empowered by its vision, values and vitality. ITC has consistently fostered a culture that rewards continuous learning, collaboration and development across the organisation to be future-ready and to meet the challenges posed by ever- changing market realities.

ITC's Learning & Development vision reinforces this agenda by seeking to build ITC's talent and leadership pipeline and enhance organisational capability to compete, win in the marketplace and create enduring value for our stakeholders and society.

ITC's Learning & Development initiatives include core programmes straddling various dimensions of Leadership, Capability Enhancement and Skill(s) Development along with customised programmes that address diverse capabilitybuilding needs at various levels of the organisation. These programmes cover not just functional competencies but behavioural inputs as well, to ensure comprehensive development of our human resources.

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 Focused programmes aimed at ensuring meaningful induction of talent into the organisation, initiatives to address current and future capability requirements of the organisation, platforms to understand what the future holds for us in terms of technology and process advancement and development inputs to enhance managerial and leadership capability of our resources are the mainstay of our Learning & Development agenda.

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